HB 345: "An Act relating to the preservation of public facilities and to appropriations for annual maintenance and repair, periodic renewal and replacement, and construction of public facilities."
00HOUSE BILL NO. 345 01 "An Act relating to the preservation of public facilities and to appropriations for 02 annual maintenance and repair, periodic renewal and replacement, and construction 03 of public facilities." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. FINDINGS. The legislature finds 06 (1) the State of Alaska has a substantial initial investment in its public 07 buildings and other public facilities; 08 (2) because insufficient funds have been appropriated for routine maintenance 09 of public facilities, wide spread deterioration of public facilities has occurred as the result of 10 deferred maintenance; 11 (3) the condition of public buildings directly affects the performance and health 12 of persons who work in the buildings; 13 (4) the state must maintain and repair and renew or replace its public facilities 14 and their component systems on a regular schedule in order to preserve and protect its
01 investment in the facilities; 02 (5) the cost of annual maintenance and repair and periodic renewal and 03 replacement necessary to preserve the state's public facilities is not readily ascertained through 04 observation but is best determined through a formula concept for life cycle costs derived from 05 the actual experience of managers of public facilities and currently in use by the University 06 of Alaska; 07 (6) its duty to preserve and protect existing public facilities is as important as 08 the original duty to provide adequate public facilities for the conduct of public's business; 09 (7) unless adequate funds are consistently appropriated for the annual 10 maintenance and repair and periodic renewal and replacement of public facilities and their 11 component systems, the buildings and facilities will continue to deteriorate and result in 12 increased deferred maintenance costs, or possible demolition and subsequent replacement at 13 a much higher cost; 14 (8) in order to ensure that the requisite funding is available each year for 15 annual maintenance and repair and periodic renewal and replacement of public facilities, the 16 legislature must appropriate the necessary funds for the preservation and protection of existing 17 public facilities before appropriating funds for new construction or for renovation or 18 remodeling of public facilities. 19 * Sec. 2. AS 35.10.050 is amended to read: 20 Sec. 35.10.050. DUTY OF DEPARTMENT TO EXAMINE AND REPORT 21 ON EXISTING PUBLIC BUILDINGS. The department shall, from time to time, 22 examine all existing public buildings and other public facilities and report the 23 condition of each and annual maintenance and repair, periodic renewal and 24 replacement, or any necessary additional construction that is needed on them. 25 * Sec. 3. AS 35.10.160 is amended to read: 26 Sec. 35.10.160. FINDINGS AND PURPOSE. The legislature finds that since 27 the needs of the state for physical facilities of all kinds are diverse the planning, 28 design, and construction of public facilities and the subsequent annual maintenance 29 and repair and periodic renewal and replacement of those facilities should be 30 executed in accordance with facility procurement and preservation policies developed 31 by the department and reviewed annually by the legislature.
01 * Sec. 4. AS 35.10.170 is amended to read: 02 Sec. 35.10.170. DUTIES OF DEPARTMENT. In addition to other duties 03 prescribed by statute, the department shall 04 (1) develop facility procurement policies for the planning, design, 05 construction, [MAINTENANCE] and operation of public facilities of the state; 06 (2) develop facility preservation policies for the annual maintenance 07 and repair and periodic renewal and replacement of public facilities of the state; 08 (3) develop and maintain an inventory of physical facilities currently 09 owned or occupied by the state; 10 (4) [(3)] make projections of future public facility needs of the state, 11 analyze facilities needed, and establish methodology for program planning and 12 facilities project planning, design, and construction, based upon 13 (A) a justification of the level of service anticipated by the 14 program agency, utilizing population projections and estimates approved by the 15 governor; [,] 16 (B) consideration of the geographical area to be served by the 17 facility and relevant data concerning the agency's existing public facilities in 18 that area; [,] 19 (C) the date by which the services are to be provided; [,] 20 (D) alternative program methods for providing the services; [,] 21 and 22 (E) pertinent data requested by the department in accordance 23 with procedures developed under AS 35.10.180; 24 (5) [(4)] engage in experimental projects as necessary relating to any 25 available or future method of facility procurement, design, or construction and any 26 method of improving existing design, planning, [AND] construction, and life cycle 27 costing techniques; 28 (6) [(5)] develop life cycle costs of public facilities of the state; 29 (7) [(6)] develop and revise, as indicated by the experience of state 30 agencies and other public entities with responsibility for operating or maintaining 31 public facilities, life cycle costing methodologies for the following special purposes:
01 (A) budget forecasting to support facility program planning and 02 analysis; [,] 03 (B) systematic cost estimating to forecast planning, design, and 04 construction; [,] 05 (C) budget forecasting to support development of annual 06 maintenance and repair, periodic renewal and replacement, and operating 07 strategies and life cycle cost plans; [,] 08 (D) alternative methods of space acquisition and space 09 equalization which will maximize the effectiveness of public funds; 10 (8) [(7)] apply for and accept, on behalf of the state, grants from the 11 federal government or an agency of the federal government [IT] or from another state 12 foundation, corporation, association, or individual for any of the functions or purposes 13 of the department and may expend any of the money received under this section for 14 any of the functions or purposes; 15 (9) annually determine the cost of annual maintenance and repair 16 and periodic renewal and replacement of public facilities operated by state 17 agencies, the legislature, the judicial system, the University of Alaska, and public 18 corporations of the state that is necessary to preserve each public facility. 19 * Sec. 5. AS 35.10.180(a) is amended to read: 20 (a) The department shall develop and keep current by periodic revision 21 physical facility procurement and planning policies and facility preservation policies 22 for rural schools, public buildings, and other state facilities, and shall develop 23 regulations and guidelines for the implementation of these policies. 24 * Sec. 6. AS 35.10.180(b) is amended to read: 25 (b) In developing and revising these policies, the department shall seek public 26 review and evaluation by any reasonable means and shall 27 (1) consult and cooperate with officials of the federal government, local 28 governments, other political subdivisions of the state, and other interested persons 29 regarding physical facility procurement planning and facility preservation; 30 (2) request and receive from an agency or other unit of the state 31 government the assistance and data needed to carry out the requirements of this
01 section. 02 * Sec. 7. AS 35.10.200 is amended by adding new paragraphs to read: 03 (3) "maintenance and repair" means the day-to-day scheduled and 04 preventive maintenance effort required to keep buildings and facilities operational and 05 in a continuous state of readiness; "maintenance and repair" includes minor repair 06 work; 07 (4) "renewal and replacement" means the scheduled replacement of 08 worn-out major building components and the replacement or retrofitting of obsolescent 09 or inefficient building systems in order to maintain or extend the life of a building or 10 facility. 11 * Sec. 8. AS 37.07.010 is amended to read: 12 Sec. 37.07.010. STATEMENT OF POLICY. It is the purpose of this chapter 13 to establish a comprehensive system for state program and financial management that 14 furthers the capacity of the governor and legislature to plan and finance the services 15 that they determine the state will provide for its citizens. The system must include 16 procedures for 17 (1) the orderly establishment, continuing review, and periodic revision 18 of the program goals and policies of state agencies and financial goals and policies of 19 the state; 20 (2) the development, coordination, and review of long-range program 21 and financial plans that will implement established state goals and policies; 22 (3) the preparation, coordination, analysis, and enactment of a budget 23 that is organized to focus on the services provided by state agencies and on the cost 24 of those services and that provides for implementation of policies and plans [,] in the 25 succeeding budget period; 26 (4) the evaluation of alternatives to existing policies, plans, and 27 procedures that offer potential for more efficient state services; 28 (5) the regular appraisal and reporting of program performance; 29 (6) public participation in the development of the annual budget, 30 including opportunity for the public to review and comment upon the plans and 31 programs of the Office of the Governor and all state agencies in the executive branch,
01 the legislature, the judicial system, the University of Alaska, and the public 02 corporations of the state; 03 (7) establishment of a priority for use of capital improvements 04 program funds for the annual maintenance and repair and periodic renewal and 05 replacement of existing public facilities of the state agencies in the executive 06 branch, the legislature, the judicial system, the University of Alaska, and the 07 public corporations of the state. 08 * Sec. 9. AS 37.07.030 is amended to read: 09 Sec. 37.07.030. RESPONSIBILITIES OF THE LEGISLATURE. The 10 legislature shall 11 (1) provide for a budget review function; 12 (2) analyze the comprehensive operating and capital improvements 13 programs and financial plans recommended by the governor; 14 (3) adopt legislation to authorize implementation of the governor's 15 comprehensive operating and capital improvements programs and financial plans or 16 appropriate alternatives to those plans; 17 (4) provide for a post-audit function to cover financial transactions, 18 program accomplishment, and compliance with legislative intent; 19 (5) adopt or revise the estimate of receipts required to balance the 20 succeeding fiscal year's budget in order that proposed expenditures do not exceed 21 estimated receipts for that fiscal year; 22 (6) adopt, revise, or initiate revenue measures in order to balance the 23 succeeding fiscal year's budget and the capital improvements section of the budget for 24 the succeeding six years; 25 (7) appropriate funds for the full cost of annual maintenance and 26 repair and periodic renewal and replacement of existing public facilities of a 27 branch of state government, as determined by the Department of Transportation 28 and Public Facilities under AS 35.10.170, before funding construction of new 29 public facilities or a substantial addition to existing public facilities of that branch 30 of state government; in this paragraph, "branch of state government" means 31 either the legislature, the judicial system, the University of Alaska, a public
01 corporation of the state, or all other agencies of the executive branch. 02 * Sec. 10. AS 37.07.040 is amended to read: 03 Sec. 37.07.040. OFFICE OF MANAGEMENT AND BUDGET. The Alaska 04 office of management and budget shall 05 (1) assist the governor in the preparation and explanation of the 06 proposed comprehensive program and financial plan, including the coordination and 07 analysis of state agency goals and objectives, plans, and budget requests; 08 (2) prepare for submission to the governor an annually updated six-year 09 capital improvements program and the proposed capital improvements budget for the 10 coming fiscal year, the latter to include individual project justification with 11 documentation of estimated project cost; 12 (3) develop procedures to produce the information needed for effective 13 policy decision making, including procedures to provide for the dissemination of 14 information about plans, programs, and budget requests to be included in the annual 15 budget and opportunity for public review and comment during the period of budget 16 preparation; 17 (4) assist state agencies in their statement of goals and objectives, 18 preparation of plans, budget requests, and reporting of program performance; all 19 documents forwarded by the office to a state agency containing instructions for the 20 preparation of program plans and budget requests and the reporting of program 21 performance are public information after the date they are forwarded; 22 (5) administer its responsibilities under the program execution 23 provisions of this chapter so that the policy decisions and budget determinations of the 24 governor and the legislature are implemented; 25 (6) provide the legislative finance division with the budget information 26 the division [IT] may request; 27 (7) provide the legislative finance division with an advance copy of the 28 governor's budget workbooks by the first Monday in January of each year, except that 29 following a gubernatorial election year the advance copy shall be provided by the 30 second Monday in January; 31 (8) prepare the proposed capital improvements budget for the coming
01 fiscal year evaluating both state and local requests from the standpoint of need, equity, 02 and priorities of the jurisdiction; other factors such as project amounts, population, 03 local financial match, federal funds being used for local match, municipality or 04 unincorporated community acceptance of the facility, and all associated costs of the 05 facility may be considered; the proposed capital improvements budget must include 06 the amount necessary to fully fund annual maintenance and repair and periodic 07 renewal and replacement of existing public facilities of the legislature, the judicial 08 system, the University of Alaska, public corporations, and state agencies in the 09 executive branch. 10 * Sec. 11. AS 37.07.050(a) is amended to read: 11 (a) Each state agency, on the date and in the form and content prescribed by 12 the office, shall prepare and forward to the office and the legislative finance division 13 (1) the goals and objectives of the agency programs, together with 14 proposed supplements, deletions, and revisions; 15 (2) its proposed plans to implement the goals and objectives, including 16 estimates of future service needs, planned methods of administration, proposed 17 modification of existing program services and establishment of new program services, 18 and the estimated resources needed to carry out the proposed plan; 19 (3) the budget requested to carry out its proposed plans in the 20 succeeding fiscal year, including information reflecting the expenditures during the last 21 fiscal year, those authorized for the current fiscal year, those proposed for the 22 succeeding fiscal year, an explanation of the services to be provided, the number of 23 total positions for all persons employed or under contract by the agency for personal 24 services including those rendered for capital improvement projects, the need for the 25 services, the cost of the services, and any other information requested by the office; 26 (4) a report of the receipts during the last fiscal year, an estimate of the 27 receipts during the current fiscal year, and an estimate for the succeeding fiscal year; 28 (5) a statement of legislation required to implement the proposed 29 programs and financial plans; 30 (6) an evaluation of the advantages and disadvantages of specific 31 alternatives to existing or proposed program policies or administrative methods;
01 (7) a budget for annual maintenance and repair and periodic 02 renewal and replacement of the agency's public facilities as determined by the 03 Department of Transportation and Public Facilities under AS 35.10.170. 04 * Sec. 12. AS 37.07.060(b) is amended to read: 05 (b) The governor shall present the proposed comprehensive operating and 06 capital improvements programs and financial plans in a message to a joint session of 07 the legislature before the fourth legislative day following the convening of the 08 legislature in regular session. The message must be accompanied by an explanatory 09 report that summarizes recommended goals, plans, and appropriations. The report must 10 contain 11 (1) the coordinated program goals and objectives that [WHICH] the 12 governor recommends to guide the decisions on the proposed program plans and 13 budget appropriations; 14 (2) the governor's operating program and budget recommendations for 15 the succeeding fiscal year organized by agency as required by AS 37.07.020(a); 16 (3) the governor's capital improvements program and budget 17 recommendations for the succeeding fiscal year and capital improvements program for 18 the succeeding six fiscal years which must include 19 (A) a description of each project, its estimated cost for the year 20 construction is to start, and the estimated cost of the project adjusted for 21 inflation over the estimated period of construction, and the source of financing 22 for the project; the project description for a new building or a new facility or 23 for a major addition to a building or facility should include a site plan, 24 preliminary drawings, and architect's or engineer's total cost estimate for the 25 project; 26 (B) the estimated cost to fully fund annual maintenance and 27 repair for public buildings and facilities; 28 (C) the estimated cost to fully fund periodic renewal and 29 replacement projects; 30 (D) a summary of projects previously authorized and not yet 31 completed;
01 (E) [(C)] a summary, listed by agency, of all previously 02 proposed projects that have been deferred beyond the six years covered by the 03 plan and the year in which construction has been rescheduled to begin; 04 (F) [(D)] a forecast of the debt structure of the state and the 05 various debt ratios over the life of the state's bonds outstanding, bonds 06 authorized and to be issued, and bond authorizations recommended in the plan; 07 (G) [(E)] a description of additional revenue measures needed 08 to finance the plan in lieu of debt; 09 (H) [(F)] bond election bills to authorize the bonds required to 10 fund the projects scheduled for the first three years of the plan; 11 (I) [(G)] projections of population of the state and its regions 12 and communities; 13 (J) [(H)] economic data and projections necessary for the 14 evaluation of the plan; 15 (4) a summary of state receipts in the last fiscal year, a revised estimate 16 for the current fiscal year, and an estimate for the succeeding fiscal year; 17 (5) a summary of expenditures during the last fiscal year, those 18 authorized for the current fiscal year, and an estimate for the succeeding fiscal year; 19 (6) any additional information that will facilitate understanding of the 20 governor's proposed programs and financial plans by the legislature and the public. 21 * Sec. 13. AS 37.07.120 is amended by adding new paragraphs to read: 22 (8) "maintenance and repair" has the meaning given in AS 35.10.200; 23 (9) "renewal and replacement" has the meaning given in AS 35.10.200.