Legislature(1999 - 2000)

08/16/1999 09:20 AM Senate PRI

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
COMMISSION ON PRIVATIZATION DELIVERY OF GOVERNMENT SERVICES                                                                     
Anchorage, Alaska                                                                                                               
August 16, 1999                                                                                                                 
9:20 a.m.                                                                                                                       
                                                                                                                                
COMMISSION MEMBERS PRESENT                                                                                                      
                                                                                                                                
Representative Cowdery, Co-Chair                                                                                                
Senator Ward, Co-Chair                                                                                                          
Representative Brice - via teleconference                                                                                       
Bill Allen, Former Mayor of Fairbanks - via teleconference                                                                      
Tom Fink, Former Mayor of Anchorage                                                                                             
Kathryn Thomas, Former Chair of Alaska State Chamber of Commerce                                                                
George Weurch, Alaska Municipal League                                                                                          
Don Valesko, Business Manger of Public Employees Local 71                                                                       
                                                                                                                                
COMMISSION MEMBERS ABSENT                                                                                                       
                                                                                                                                
Senator Al Adams                                                                                                                
William Prosser, Chairman of the Board - Cook Inlet Region, Inc.                                                                
Helvi Sandvik, President - NANA Development Corporation                                                                         
                                                                                                                                
COMMISSION CALENDAR                                                                                                             
                                                                                                                                
Privatization of State Government Services                                                                                      
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
See Commission on Privatization and Delivery of Government                                                                      
Services minutes dated 7/20/99.                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-3, SIDE A                                                                                                               
                                                                                                                                
CO-CHAIR WARD called the Commission on Privatization and Delivery                                                               
of Government Services meeting to order at 9:20 a.m.  Members                                                                   
present at the call to order were Co-chairs Ward and Cowdery,                                                                   
Representative Brice (via teleconference), and Commissioners Allen                                                              
(via teleconference), Fink, Weurch, Thomas, and Valesko.                                                                        
Commissioners Prosser and Sandvik and Senator Adams were not                                                                    
present.  Co-Chair Ward thanked everyone present for attending and                                                              
informed participants that Commissioner Sandvik was absent due to                                                               
a death in her family.  Co-Chair Ward announced the intent of                                                                   
today's meeting is to bring together the subcommittee chairpersons                                                              
and the corresponding representatives from the Administration to                                                                
facilitate a dialog about the best way to proceed with the                                                                      
commission's work.                                                                                                              
                                                                                                                                
The subcommittee chairs of the Commission on Privatization and                                                                  
Delivery of Government Services made the following introductory                                                                 
remarks.                                                                                                                        
                                                                                                                                
DAVID MORRISON, Chairperson of the Subcommittee on the Department                                                               
of Corrections (DOC), stated he worked in the Canadian Ministry of                                                              
Justice for 25 years on corrections matters.  He is a seven year                                                                
resident of Alaska and currently works for Cornell Corrections, a                                                               
private company.                                                                                                                
                                                                                                                                
CRAIG JOHNSON, Chairperson of the Subcommittee on the Department of                                                             
Community and Economic Development (DCED), informed participants he                                                             
is the general manager and publisher of the Alaska Journal of                                                                   
Commerce, as well as other publications.   He was previously                                                                    
employed as a legislative assistant.                                                                                            
                                                                                                                                
VIRGIL NORTON, a former contractor and an experienced environmental                                                             
cleanup project manager, stated he is chairing the Subcommittee on                                                              
the Department of Environmental Conservation (DEC).                                                                             
                                                                                                                                
WAYNE ROSS, an attorney, stated he is chairing the Subcommittee on                                                              
the Office of the Governor.                                                                                                     
                                                                                                                                
MEAD TREADWELL, Chairperson of the Subcommittee on the Department                                                               
of Fish and Game (ADFG), stated he was a deputy commissioner of the                                                             
Department of Environmental Conservation, and is currently the                                                                  
Vice-Chair of the Prince William Sound Oil Spill Recovery Institute                                                             
which conducts ecological research related to fisheries management.                                                             
                                                                                                                                
JOSEPH HENRI, Chairperson of the Subcommittee on the Department of                                                              
Administration (DOA), stated he is a member of the Alaska Bar                                                                   
Association and has practiced law in Alaska for about 35 years.  He                                                             
was the Commissioner of the Department of Administration during                                                                 
former Governor Bill Egan's third term.                                                                                         
                                                                                                                                
KEN PEAVYHOUSE, Chairperson of the Subcommittee on the Alaska Court                                                             
System, stated he has retired from the insurance business and has                                                               
been an Alaska resident for 40 years.                                                                                           
                                                                                                                                
LEO MARK ANTHONY informed participants he is a retired University                                                               
of Alaska School of Mines [indisc.] prospector and is the Chair of                                                              
the Subcommittee on the Department of Natural Resources (DNR).                                                                  
Several subcommittees will review DNR because of the size of its                                                                
budget.  DNR has already given an overview of its missions to the                                                               
subcommittees however, the subcommittees have requested more                                                                    
information.  He maintained that if the subcommittees are unable to                                                             
get that information, the legislature should request it and every                                                               
few years review and revise DNR's budget so that, "We know some way                                                             
where we stand on costs."                                                                                                       
                                                                                                                                
MARYANN PEASE, Chairperson of the Subcommittee on the Department of                                                             
Revenue (DOR), stated she was formerly employed by the Municipality                                                             
of Anchorage as the director of the Office of Management and Budget                                                             
and, while in that position, she looked into privatization of many                                                              
of the functions associated with the municipality.  She is                                                                      
currently the Vice President of Aurora Power, a natural gas                                                                     
marketing entity.                                                                                                               
                                                                                                                                
CO-CHAIR WARD asked subcommittee chairpersons to join commission                                                                
members at the table.  He asked representatives from the                                                                        
Administration to provide commission members with department                                                                    
mission statements during their presentations.                                                                                  
                                                                                                                                
COMMISSIONER BILL ALLEN interjected and asked for clarification of                                                              
Mr. Mark Anthony's statement that DNR has been split into                                                                       
subcommittees.                                                                                                                  
                                                                                                                                
MR. MARK ANTHONY explained that DNR has been split along budget                                                                 
lines into ten or eleven parts.  Each subcommittee member will                                                                  
review one part of the budget.                                                                                                  
                                                                                                                                
COMMISSIONER ALLEN asked if anyone else spoke as a Chairperson of                                                               
the Subcommittee on DNR.                                                                                                        
                                                                                                                                
CO-CHAIR WARD replied that Dale Urich is a Chairperson of the                                                                   
Forestry Subcommittee.  Co-Chair Ward announced it is the                                                                       
prerogative of each subcommittee's chair to break the subcommittee                                                              
down further.                                                                                                                   
                                                                                                                                
CO-CHAIR WARD took testimony from members of the Administration.                                                                
                                                                                                                                
PAT POURCHOT, Office of the Governor, informed commission members                                                               
that he is filling in for Mike Abbott, who has been working with                                                                
Co-Chair Ward's staff.  He noted it was his understanding that the                                                              
purpose of today's meeting was to hear from subcommittee chairs,                                                                
not for the departments to make presentations.  He stated some of                                                               
the department representatives have given information to the                                                                    
individual subcommittees, but some have not, depending on the                                                                   
meeting schedules of the subcommittees.  He noted that                                                                          
representatives of DOC, the Department of Public Safety (DPS), the                                                              
Department of Law (DOL), DNR and DEC were present to answer                                                                     
questions.  He stated a bill before the legislature contains                                                                    
formalized mission statements that might be of interest to the                                                                  
commission.  He noted each department representative will share a                                                               
mission statement with the commission.                                                                                          
                                                                                                                                
CO-CHAIR WARD agreed the purpose of the meeting is not to listen to                                                             
formal presentations by Administration representatives and noted                                                                
the purpose of the meeting is to make sure the commission is on the                                                             
right track.  He recalled that the mission statements from each                                                                 
department were introduced in a separate bill in the legislature                                                                
because those mission statements were removed from the operating                                                                
budget.  He indicated staff will provide a copy of that legislation                                                             
to the subcommittee chairs.                                                                                                     
                                                                                                                                
CO-CHAIR COWDERY mentioned that he only has two staff people                                                                    
employed during the interim taking care of all of his work,                                                                     
including that of the commission.  He said the large number of                                                                  
subcommittees prevents his staff from doing anything but the most                                                               
necessary work for each. He asked each department representative to                                                             
provide subcommittee chairs with mission statements.                                                                            
                                                                                                                                
CO-CHAIR WARD asked the department liaisons to introduce themselves                                                             
to commission members.                                                                                                          
                                                                                                                                
The following representatives of the Administration introduced                                                                  
themselves:                                                                                                                     
                                                                                                                                
DEL SMITH, Deputy Commissioner of the Department of Public Safety.                                                              
MARTY RUTHERFORD, Deputy Commissioner, Department of Natural                                                                    
Resources.                                                                                                                      
BRUCE RICHARDS, Special Assistant, Department of Corrections.                                                                   
DOUG WOOLIVER, Administrative Attorney, Alaska Court System.                                                                    
JOAN KASSON, Special Assistant, Department of Law.                                                                              
DAVID WIGGLESWORTH, Department of Environmental Conservation.                                                                   
GREG WOLF, Director of Trade and Development, Department of                                                                     
Community and Economic Development.                                                                                             
MARY MCDOWELL, Commercial Fisheries Entry Commission.                                                                           
KURT PARKAN, Deputy Commissioner, Department of Transportation and                                                              
Public Facilities.                                                                                                              
ALISON ELGEE, Deputy Commissioner, Department of Administration.                                                                
DWIGHT PERKINS, Deputy Commissioner, Department of Labor.                                                                       
MIKE CONWAY, Director of the Division of Statewide Public Services,                                                             
Department of Environmental Conservation.                                                                                       
KAREN REHFELD, Department of Education and Early Development.                                                                   
JANET CLARK and ELMER LINDSTROM, Department of Health and Social                                                                
Services.                                                                                                                       
GERON BRUCE, Special Assistant, Department of Fish and Game.                                                                    
                                                                                                                                
[PORTION OF TAPE INAUDIBLE DUE TO TELECONFERENCE EQUIPMENT                                                                      
MALFUNCTION.]                                                                                                                   
                                                                                                                                
CO-CHAIR WARD acknowledged that the legislature received overall                                                                
mission statements from each department but none for agencies such                                                              
as the Alaska Public Offices Commission.  He asked what agency                                                                  
level the mission statements should be requested for.                                                                           
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER replied the commission should have                                                                 
mission statements for all major components of each department so                                                               
that the subcommittees can do a cost benefit analysis.                                                                          
                                                                                                                                
REPRESENTATIVE BRICE pointed out that the House version of SB 169                                                               
contained mission statements for divisions.                                                                                     
                                                                                                                                
CO-CHAIR WARD noted that copies of SB 169 would be distributed to                                                               
participants shortly.                                                                                                           
                                                                                                                                
MIKE TAURIANAN joined the meeting and informed commission members                                                               
he is the interim Chair of the Department of Health and Social                                                                  
Services (DHSS) subcommittee.  He noted he was promised information                                                             
which he has not yet received.                                                                                                  
                                                                                                                                
MARY ANN PEASE asked Co-Chair Ward if a liaison from the Department                                                             
of Revenue was on line.                                                                                                         
                                                                                                                                
CO-CHAIR WARD said no representative from the Department of Revenue                                                             
was on line but that Pat Pourchot would be coordinating contacts.                                                               
                                                                                                                                
CO-CHAIR WARD asked subcommittee chairs to inform participants of                                                               
their activities so far.                                                                                                        
                                                                                                                                
VIRGIL NORTON stated that the Subcommittee on DEC has met twice and                                                             
has a third meeting scheduled on August 18.  Dave Wigglesworth                                                                  
represented DEC at the first meeting, which was primarily an                                                                    
organizational meeting.  At the second meeting, the subcommittee                                                                
was briefed by Larry Dietrick and Jim Hayden on contaminated sites                                                              
and storage tanks.   The subcommittee received a lot of information                                                             
on those topics and will be briefed on the Village Safe Water                                                                   
Program on Wednesday.                                                                                                           
                                                                                                                                
LEO MARK ANTHONY indicated that the Subcommittee on DNR has met                                                                 
once and subdivided itself along budget lines.  They have heard                                                                 
from DNR regarding its mission, and the subcommittee has requested                                                              
more information.  The subcommittee will meet again this evening.                                                               
                                                                                                                                
COMMISSIONER KATHERINE THOMAS said she sat in on the DNR                                                                        
subcommittee meeting.  She asked if DNR has transmitted the                                                                     
requested information to the subcommittee.                                                                                      
                                                                                                                                
MR. MARK ANTHONY replied it has, and that copies will be made                                                                   
available to subcommittee members at the evening meeting.                                                                       
                                                                                                                                
JOE HENRI informed participants that the Subcommittee on DOA has                                                                
met once.  DOA now has 1,300 employees and is one of the largest                                                                
departments; its mission is endless.  Subcommittee members have 2+                                                              
months in which to recommend to the legislature ways to save money.                                                             
He plans to zero in on a few services that DOA provides, rather                                                                 
than to canvas everything DOA does.                                                                                             
                                                                                                                                
CO-CHAIR WARD said he is in total agreement with that approach and,                                                             
in his opinion, the direction the subcommittees take should be up                                                               
to the chairpersons.                                                                                                            
                                                                                                                                
COMMISSIONER THOMAS stated that because privatization has been a                                                                
priority with the Alaska State Chamber of Commerce for so many                                                                  
years, she feels an awesome responsibility to this commission.                                                                  
When in Anchorage, she sat in on several subcommittee meetings.                                                                 
Some of the subcommittees have focussed on the directives in the                                                                
Senate bill (SB 33), others have not.  She felt the subcommittees                                                               
should review and formulate their work around Section 5 of SB 33.                                                               
                                                                                                                                
TAPE 99-3, SIDE B                                                                                                               
                                                                                                                                
MARYANN PEASE informed participants that within the last year                                                                   
Commonwealth North did a return on assets study.  Each division of                                                              
the state was studied in detail and interviews with department                                                                  
staff were conducted.  Part of that study pertained to the                                                                      
appropriateness of services being performed by specific                                                                         
departments.  She suggested that copies of that report be made                                                                  
available to the subcommittee chairs.                                                                                           
                                                                                                                                
CO-CHAIR WARD noted that study has been distributed to the                                                                      
commissioners and he will make sure it is distributed to all                                                                    
members of the subcommittees.                                                                                                   
                                                                                                                                
COMMISSIONER VALESKO expressed serious concern, as a member of the                                                              
commission, that subcommittee chairs have been given the authority                                                              
to pick and choose which areas to look into.  His concern reaches                                                               
back to the method of selecting the chairs which required no                                                                    
consensus among commission members.  He noted that he asked, at the                                                             
last meeting, how the chairs were selected for the various                                                                      
subcommittees and was told that the first person who volunteered to                                                             
be a chairperson was selected to do so.  After that meeting, he                                                                 
returned to his office and asked a staff person to volunteer to be                                                              
on a subcommittee on the Department of Military and Veterans                                                                    
Affairs (DMVA).  She called and offered to act as the chairperson                                                               
but was told that DMVA was not under review for privatization.  He                                                              
repeated his concern that the Commissioners have not decided, as a                                                              
group, on a selection method.  He expressed further concern that                                                                
the Chair of the Subcommittee on the Department of Corrections is                                                               
affiliated with Cornell Corrections which may constitute a very                                                                 
serious conflict of interest because Cornell has already entered                                                                
into a privatization agreement with the Delta prison.  He said he                                                               
feels his integrity is on the line because the lack of a selection                                                              
process for subcommittee chairs by commission members jades the                                                                 
whole process.                                                                                                                  
                                                                                                                                
CO-CHAIR WARD explained that he and Co-Chair Cowdery met and                                                                    
decided to begin a massive volunteer effort to get the public                                                                   
involved.  They instructed staff to appoint the first people who                                                                
volunteered to be chairs of subcommittees as such, and, if no one                                                               
volunteered, to call subcommittee members and ask for a volunteer.                                                              
He asked Commissioner Valesko for further information about the                                                                 
woman who volunteered to act as the chair of the DMVA Subcommittee.                                                             
                                                                                                                                
MARCO PIGNALBERI, Legislative Assistant to Co-Chair Cowdery, Alaska                                                             
State Legislature, explained that he made the decision to not                                                                   
review every department because of the commission's limited time                                                                
and resources and he then arbitrarily selected which departments                                                                
would be reviewed.  After speaking about the issue with the Co-                                                                 
Chairs, they decided every department should be reviewed.  He said                                                              
he appointed the woman who called to volunteer (Valerie Bafone) to                                                              
chair the Subcommittee on the Department of Labor, one of three                                                                 
available subcommittees.                                                                                                        
                                                                                                                                
CO-CHAIR WARD maintained that every participant has a conflict of                                                               
interest because all participants are touched by state government.                                                              
He said, as a real estate agent, he cares about the Alaska Housing                                                              
Finance Corporation.  He noted the possibility of keeping certain                                                               
professionals off of certain subcommittees was discussed, however,                                                              
it was decided all participants needed to be considered as Alaskans                                                             
first.  He added that is why positions were left open and as many                                                               
volunteers as possible have been recruited.                                                                                     
                                                                                                                                
COMMISSIONER THOMAS commented that confirmation of subcommittee                                                                 
chairs was an agenda item at the last meeting, however official                                                                 
action was not taken and she believes that they were accepted by an                                                             
unspoken consensus.  She noted that at that time she suggested that                                                             
the subcommittee members choose their own chairpersons for two                                                                  
reasons:  the members would tend to find the strongest among                                                                    
themselves, and the subcommittees are operating without staff or                                                                
financial help and might need a chair who has staff available to                                                                
help do the work.                                                                                                               
                                                                                                                                
COMMISSIONER FINK remarked that because time is of the essence, the                                                             
commission needs to move forward, and if the commission is not                                                                  
satisfied with the work of a subcommittee, it does not need to                                                                  
support its report.  He offered to make a motion to support the                                                                 
subcommittee chairpersons who have been appointed.  Regarding Mr.                                                               
Henri's request to limit the areas that his subcommittee reviews,                                                               
Commissioner Fink said he thinks all subcommittees need to take                                                                 
that approach.  He noted many subcommittee members have ideas about                                                             
ways to privatize which should be discussed first because the                                                                   
subcommittees will not have time to review every budget item.  He                                                               
indicated that the final report should zero in on about six areas                                                               
and then list others for future review.                                                                                         
                                                                                                                                
COMMISSIONER ALLEN seconded Commissioner Fink's motion and said he                                                              
agrees with Commissioner Fink's comment, and that there is no way                                                               
that a conflict of interest can be avoided if Alaskans are asked to                                                             
come forward and volunteer in their areas of expertise.  Second, he                                                             
believes problems within the subcommittees will surface and the                                                                 
Commissioners can take appropriate action at that time.  He asked                                                               
participants to not get bogged down on this issue because so much                                                               
work needs to be done.                                                                                                          
                                                                                                                                
COMMISSIONER WUERCH spoke in favor of the motion because Section 2                                                              
of SB 33 provides that the commission appoint people to assist and                                                              
advise it.                                                                                                                      
                                                                                                                                
CO-CHAIR WARD stated that the motion is to approve the subcommittee                                                             
chairperson and membership appointments that exist as of today.  He                                                             
noted two other participants wanted to speak to the motion.                                                                     
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER asserted that he understood the motion                                                             
to allow the Chair of the commission the authority to appoint the                                                               
subcommittee chairpersons.                                                                                                      
                                                                                                                                
COMMISSIONER FINK clarified that he moved that the commission                                                                   
approve the actions the Co-Chairs have taken.                                                                                   
                                                                                                                                
AN UNIDENTIFIED SPEAKER asked how future appointments should be                                                                 
handled.                                                                                                                        
                                                                                                                                
COMMISSIONER FINK said he would make another motion at a later                                                                  
date, after other people have been appointed.                                                                                   
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER spoke against the motion because what                                                              
precipitated it was the discussion about giving the subcommittee                                                                
chairpersons the authority to pick and choose what parts of each                                                                
department budget the subcommittee will look into.  He expressed                                                                
concern that the commission is deciding to do a partial, rather                                                                 
than a thorough, job of looking at state government.                                                                            
                                                                                                                                
CO-CHAIR WARD replied that he does not believe that the Chairperson                                                             
of the Subcommittee on the Department of Administration was saying                                                              
that his subcommittee would not do a thorough job.                                                                              
                                                                                                                                
MR. NORTON stated his support of Commissioner Fink's motion.                                                                    
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER called for a point of order and noted                                                              
that only the Commissioners should speak to the motion.                                                                         
                                                                                                                                
CO-CHAIR WARD called for the question and clarified the motion as:                                                              
the commission's acceptance of the Chairpersons and members of all                                                              
subcommittees and committees in existence at this time and that                                                                 
appointment of future vacancies be dealt with in the same manner.                                                               
                                                                                                                                
COMMISSIONER BRICE asked if the motion is to establish the current                                                              
Chairpersons of Subcommittees as those who have been appointed to                                                               
date.                                                                                                                           
                                                                                                                                
CO-CHAIR WARD said that is correct.                                                                                             
                                                                                                                                
COMMISSIONER BRICE asked if he can be involved in any committee he                                                              
is interested in as a Commissioner.                                                                                             
                                                                                                                                
CO-CHAIR WARD said that is correct and that all Commissioners are                                                               
encouraged to sit in on all meetings.                                                                                           
                                                                                                                                
CO-CHAIR WARD asked if there was any objection to the motion.                                                                   
                                                                                                                                
COMMISSIONER VALESKO objected.                                                                                                  
                                                                                                                                
CO-CHAIR WARD asked Commissioner Valesko if he wanted the motion                                                                
rescinded so that a roll call vote could be taken.                                                                              
                                                                                                                                
COMMISSIONER VALESKO said he did not.                                                                                           
                                                                                                                                
CO-CHAIR WARD remarked that Commissioner Valesko's concern is well                                                              
noted and valid.                                                                                                                
                                                                                                                                
MR. NORTON asked Commissioner Valesko whether he objects to the                                                                 
subcommittee chairpersons or the members.                                                                                       
                                                                                                                                
CO-CHAIR WARD explained that Commissioner Valesko's concern is with                                                             
the selection process and that Chairman Henri plans to focus on a                                                               
few areas of the Department of Administration's budget because that                                                             
budget is so massive.                                                                                                           
                                                                                                                                
COMMISSIONER VALESKO expressed concern that all division budgets be                                                             
reviewed so that subcommittee members get a total picture.  CO-                                                                 
                                                                                                                                
CHAIR WARD said although that concern is valid, the commission's                                                                
task is very large.                                                                                                             
                                                                                                                                
MR. NORTON remarked the work of the commission will not end in                                                                  
October because the legislature will continue to look at ways to                                                                
privatize beyond the commission's report.                                                                                       
                                                                                                                                
CO-CHAIR WARD agreed, but said the commission's final report will                                                               
carry a lot of weight.                                                                                                          
                                                                                                                                
AN UNIDENTIFIED SPEAKER thought a simple amendment to the report,                                                               
saying that further work is needed and that commission members will                                                             
follow up to see if their recommendations were followed, would                                                                  
solve the problem.                                                                                                              
                                                                                                                                
COMMISSIONER ALLEN asked Mr. Norton if his subcommittee would be                                                                
looking at the maintenance expense and the function of the systems                                                              
when it reviews the Village Safe Water Program.                                                                                 
                                                                                                                                
MR. NORTON said they would and that he has already spoken with Greg                                                             
Capito of DEC.  He also plans to speak with Marla Berg of Senator                                                               
Adams' office and anyone else involved with Village Safe Water                                                                  
contracts, and with Public Health Service officials.  The                                                                       
subcommittee is trying to determine where the program stands today,                                                             
after spending millions of dollars, and what the maintenance costs                                                              
will be once all systems have been established.                                                                                 
                                                                                                                                
COMMISSIONER ALLEN asked Mr. Norton to add his name to the                                                                      
subcommittee list as he is very interested in that topic.  He asked                                                             
that the subcommittee explore all sources of revenue available to                                                               
maintain those systems.                                                                                                         
                                                                                                                                
MR. NORTON said he plans to do so, and that he plans to explore                                                                 
staff training to prevent systems from failing.                                                                                 
                                                                                                                                
CO-CHAIR WARD asked Mr. Pignalberi why minutes are not available                                                                
from the last meeting.                                                                                                          
                                                                                                                                
MR. PIGNALBERI explained that the tapes of the meeting were sent to                                                             
Juneau for transcription and that they  would be completed by the                                                               
next meeting.  CO-CHAIR WARD said he has been assured that minutes                                                              
will be completed in a timely manner in the future.                                                                             
                                                                                                                                
COMMISSIONER THOMAS expressed concern that some subcommittees have                                                              
not scheduled meetings yet.                                                                                                     
                                                                                                                                
MR. PIGNALBERI informed commission members that its website                                                                     
contains a schedule of all meetings and that some subcommittees                                                                 
have not yet met because the chairpersons have been unable to                                                                   
schedule time to meet with him for a preliminary briefing and                                                                   
because subcommittee members have had schedule conflicts.  He noted                                                             
that Mr. Taurianan came on board just last week and has been unable                                                             
to arrange a meeting yet.                                                                                                       
                                                                                                                                
COMMISSIONER THOMAS asked whether all subcommittees have scheduled                                                              
a first meeting.                                                                                                                
                                                                                                                                
MR. PIGNALBERI replied about four or five subcommittees have not                                                                
yet scheduled a first meeting.                                                                                                  
                                                                                                                                
CO-CHAIR WARD noted that he has talked to most of the chairpersons                                                              
who were confused about what to do, therefore, today's meeting was                                                              
scheduled to inform them of how to proceed.  He anticipated that                                                                
those subcommittees who have not met would be doing so within the                                                               
next week and that schedules will be posted on the internet                                                                     
immediately when available.                                                                                                     
                                                                                                                                
MR. PIGNALBERI informed commission members that the commission's                                                                
website address is: "www.privatizealaska.org".                                                                                  
                                                                                                                                
CO-CHAIR WARD offered the Co-Chairs' office staff as another source                                                             
of information for those without access to the website.                                                                         
                                                                                                                                
CO-CHAIR WARD announced that the next agenda item is the                                                                        
consideration of state employee air travel mileage.                                                                             
                                                                                                                                
MR. PIGNALBERI explained that several commission members have noted                                                             
an interest in reviewing the possibility of creating one mileage                                                                
account to collect mileage points for state employee travel; an                                                                 
issue that transcends any one department.  He suggested that such                                                               
issues be forwarded to the full commission for direction.  He                                                                   
recommended that the airline mileage issue be taken up by the                                                                   
Subcommittee on the Office of the Governor.                                                                                     
                                                                                                                                
COMMISSIONER THOMAS suggested that the Subcommittee on the Office                                                               
of the Governor comment on that issue but that it then be taken up                                                              
by the full commission.                                                                                                         
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER said this issue has come before the                                                                
legislature and is outside of the bounds of the commission.                                                                     
                                                                                                                                
CO-CHAIR WARD said former Representative Terry Martin's bill on                                                                 
that subject included a provision to charter flights out of                                                                     
Anchorage which would have saved a lot of money.  He recommended                                                                
that the issue be taken up by the Subcommittee on the Office of the                                                             
Governor who can advise the full commission.                                                                                    
                                                                                                                                
DEPUTY COMMISSIONER ALISON ELGEE, Department of Administration,                                                                 
informed commission members that DOA has studied the airline                                                                    
mileage issue at length.  She suggested that the Subcommittee on                                                                
DOA review it.                                                                                                                  
                                                                                                                                
COMMISSIONER THOMAS remarked that she was unsure whether the issue                                                              
of airline mileage is within the purview of SB 33 and that it will                                                              
be a time consuming issue to review.                                                                                            
                                                                                                                                
CO-CHAIR WARD contended that the Chair of the Subcommittee on DOA                                                               
can decide whether to take it up.                                                                                               
                                                                                                                                
COMMISSIONER ALLEN agreed with Co-Chair Ward.                                                                                   
                                                                                                                                
COMMISSIONER FINK asked that any participant or member of the                                                                   
public who believes a particular government service should be                                                                   
privatized to talk to him about it.                                                                                             
                                                                                                                                
CO-CHAIR WARD asked that any suggestions be submitted to staff as                                                               
well for distribution to all Commissioners.                                                                                     
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER moved to add the Alaska Industrial                                                                 
Development and Export Authority (AIDEA) as one of the areas the                                                                
subcommittees look into.                                                                                                        
                                                                                                                                
CO-CHAIR WARD seconded the motion but said it is already with the                                                               
Department of Community and Economic Development's budget.                                                                      
                                                                                                                                
THE UNIDENTIFIED COMMISSIONER said he would also like to see the                                                                
commission review the Alaska Science and Technology Fund, the                                                                   
Alaska Housing Finance Corporation, and the Alaska Permanent Fund                                                               
Dividend Corporation.                                                                                                           
                                                                                                                                
CO-CHAIR WARD pointed out those three agencies are housed within                                                                
departments.  He added that it is important that Commissioners be                                                               
informed of subcommittee schedules so that those who want to can                                                                
attend.  Co-Chair Ward said that he and Co-Chair Cowdery decided to                                                             
review all departments for that reason.                                                                                         
                                                                                                                                
AN UNIDENTIFIED COMMISSIONER commented that he attended the                                                                     
Subcommittee on DOT/PF meeting and was concerned that the                                                                       
Chairperson decided against reviewing the largest dollar parts of                                                               
that budget: design and construction, planning, and rights-of way.                                                              
He moved that the commission direct the DOT/PF Subcommittee to look                                                             
into all facets of DOTPF's budget.                                                                                              
                                                                                                                                
COMMISSIONER BRICE seconded that motion.  There being no objection,                                                             
the motion carried.                                                                                                             
                                                                                                                                
COMMISSIONER THOMAS requested that commission members receive the                                                               
agenda prior to the meetings.  She informed Co-Chair Ward that the                                                              
State Chamber of Commerce will set up a fax network for all                                                                     
commission and subcommittee members by the end of the week.                                                                     
                                                                                                                                
COMMISSIONER BRICE remarked the commission needs to look into how                                                               
the teleconferencing system is set up because Fairbanks                                                                         
participants have been disconnected several times.                                                                              
                                                                                                                                
CO-CHAIR WARD agreed to do so and notified participants that he was                                                             
informed by the teleconference operators that today's problem have                                                              
been caused by sun spots.                                                                                                       
                                                                                                                                
COMMISSIONER WUERCH said he supports the approach to allow each                                                                 
subcommittee to choose which areas of the budget it will address                                                                
but cautioned that the fact that a subcommittee opts not to address                                                             
a topic should not mean that the topic should drop forever from the                                                             
radar screen as a possibility for privatization.  He believes it                                                                
should be made clear to the legislature that the fact that an area                                                              
was not included in the report does not mean it is not worth                                                                    
review.                                                                                                                         
                                                                                                                                
COMMISSIONER ALLEN brought up two items.  Regarding Commissioner                                                                
Fink's suggestion that ideas for privatization be directed to                                                                   
commission members, he thought the commission should publicize a                                                                
"need to know."  Second, he asked where the University of Alaska                                                                
fits into privatization review.                                                                                                 
                                                                                                                                
CO-CHAIR WARD replied the University of Alaska is a complete                                                                    
component.                                                                                                                      
                                                                                                                                
MR. PIGNALBERI added the University is doing an in-house study as                                                               
a result of the passage of SB 33.  The University will provide its                                                              
study results to the commission after which subcommittee hearings                                                               
will be held.                                                                                                                   
                                                                                                                                
CO-CHAIR WARD asked if every state government entity is under                                                                   
review by a subcommittee except for the University of Alaska.                                                                   
                                                                                                                                
MR. PIGNALBERI said a University subcommittee is planned however                                                                
its membership has not been appointed and no meetings have been                                                                 
scheduled as of yet.  That subcommittee will meet after the                                                                     
University completes its report.                                                                                                
                                                                                                                                
CO-CHAIR WARD asked Commissioner Allen if he would like to serve on                                                             
that subcommittee.                                                                                                              
                                                                                                                                
COMMISSIONER ALLEN said not as the chairperson but that he is                                                                   
certainly interested in it.                                                                                                     
                                                                                                                                
CO-CHAIR WARD asked Mr. Pignalberi to write a memo to all                                                                       
Commissioners informing them of the procedure established for                                                                   
review of the University of Alaska.                                                                                             
                                                                                                                                
MR. TAURIANAN asked Mr. Pignalberi to call him to discuss the                                                                   
Subcommittee on the Department of Health and Social Services.                                                                   
                                                                                                                                
AN UNIDENTIFIED SPEAKER asked if the subcommittees are subject to                                                               
the open meeting laws and whether subcommittees can conduct                                                                     
business without a quorum.                                                                                                      
                                                                                                                                
MR. PIGNALBERI replied that, according to the Division of Legal                                                                 
Services, the subcommittees are comprised of volunteer citizens and                                                             
therefore are not subject to the Open Meetings Act.  Regarding a                                                                
quorum, he stated that is a matter the commission could determine.                                                              
                                                                                                                                
CO-CHAIR WARD asked subcommittee chairs to come back to the                                                                     
commission with recommendations if they want the commission to make                                                             
such decisions.                                                                                                                 
                                                                                                                                
MR. NORTON asked how elaborate the reports should be.  He said he                                                               
assumes they should contain brief recommendations with a short                                                                  
summary of how to facilitate the transfer of a service to the                                                                   
private sector.                                                                                                                 
                                                                                                                                
TAPE 99-4, SIDE A                                                                                                               
                                                                                                                                
CO-CHAIR WARD stated that the documents will have to be created at                                                              
the subcommittee level, however the commission could make changes                                                               
to it.  Co-Chair Ward said one advantage is that citizens do not                                                                
have to jump through the same hoops as bureaucrats and politicians.                                                             
He added the commission will have to filter the information out and                                                             
then legislators will have to meet with the Department of Law to                                                                
figure out how to implement the recommendations.                                                                                
                                                                                                                                
There being no further discussion, CO-CHAIR WARD adjourned the                                                                  
meeting.                                                                                                                        

Document Name Date/Time Subjects