Legislature(1997 - 1998)
03/28/1998 09:15 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 231
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
The purpose of this meeting was to hear testimony from
departments on the Governor's proposed FY99 Capital projects
and the Mental Health Trust Fund projects. Co-Chair Sharp
announced that the departments giving presentations today
would be as follows: Department of Corrections; Department
of Education; Department of Environmental Conservation;
Office of the Governor; Department of Fish and Game;
Department of Health and Social Services; Department of
Military and Veterans Affairs; and Department of Natural
Resources.
Co-Chair Sharp clarified comments made during the March 21
meeting on these bills regarding the AIDEA funds. He stated
the intent of the committee was not to automatically shelve
projects with AIDEA fund assignments. The committee however
would not be granting any AIDEA funding. He encouraged
departments with AIDEA-slated projects to prioritize all
their requests and the committee would attempt to address
the most critical projects and secure funding regardless of
their original fund assignments. They would make an extra
effort to include those projects that are of high priority.
He noted that those currently designated AIDEA projects
would face challenges but wanted to reassure that the
projects could still go forth with other funds.
The committee started by hearing testimony from the
DEPARTMENT OF CORRECTIONS on their projects listed in the
FY99 Capital Budget packet.
DWAYNE PEEPLES and JOE REEVES were invited to come to the
table and speak on behalf of DOC.
First to be addressed was DEFERRRED MAINTENANCE, REPAIR,
RENEWAL AND REPLACEMENT. Mr. Peeples told the committee the
request was for $800,000 General Funds for an emergency
maintenance repair fund from which they fund three staff.
Senator Phillips asked why the staff positions were included
in the Capital budget rather than the Operating budget. Mr.
Peeples responded that because the work the employees were
doing was primarily Capital projects, their positions were
funded from the Capital budget.
Co-Chair Sharp asked what the project was funded in FY98.
Mr. Peeples informed him the amount was $900,000.
The second DOC request was CRIMINAL JUSTICE INFORMATION
SYSTEM INTEGRATION. Mr. Peeples testified the main purpose
of this project was to make it possible to effectively
manage the operational, budget, and planning activities of
the DOC.
A written statement was included in the budget request and
it said: "This includes: creating and maintaining
applications necessary to manage; presentence
investigations, bookings, custody, classification, time
accounting, probation, parole, furlough, program
participation, inmate case management, medical records,
inmate property accounts, release transactions, automated
notifications to victims, communities, and other law
enforcement agencies, sex offender registration,
transportation, as well as providing the databases needed
for budgeting, accountability, and planning purposes for the
agency. The second purpose of this project is for the DOC
to be a full partner in feeding information to the
Comprehensive Criminal History Repository, being developed
cooperatively by the departments of Law, the Courts,
Corrections and Public Safety, and maintained by the
Department of Public Safety."
"The third purpose of this project is to allow the DOC to
meet legal, statutory requirements for reporting offender
information to other agencies such as: the Immigration and
Naturalization Service, the Child Enforcement Division, and
the Permanent Fund Dividend Program."
"The DOC has in place, WAN/LAN operations at all 32 of its
work sites, and is currently reviewing the database needs to
replace its old "OBSCIS" system. These funds would help the
agency finalize its replacement of the old system and help
cover the purchase of LAN replacement equipment as
necessary."
Mr. Peeples said the department was working with the State
of Utah to integrate the system their corrections department
was using. This new system would streamline operations. He
indicated DOC had applied for federal funding to make this
possible. They would know by the end of this year whether
they had been granted the funds.
He told the committee this would be an on-going project.
Co-Chair Sharp noted the wording in the program proposal
saying, "will help complete." He wondered if this request,
if granted, would be the only funds needed, or would the
department be coming back in future fiscal years for
additional funding for this project. Mr. Peeples responded
that it depended upon the federal funding. He speculated
that if DOC received the federal receipts, there would be no
need for additional monies from the State.
The committee moved to the next DOC project, CORRECTIONS
REPLACEMENT EQUIPMENT. Mr. Peeples summarized the purpose
of this on-going project, which was to replace essential
security, live/safety, medical and roads/grounds maintenance
equipment throughout all work sites in the agency.
The following written statement was submitted to the
committee by the department: "The DOC has approximately
$16.5 million in state-owned equipment assets. Replacement
of old and worn out equipment has been deferred for many
years; however, further deferring this replacement will
reduce security, decrease food service, and other day-to day
operations capability and require repairs which are not as
cost effective."
"This project funds the replacement of antiquated capital
equipment at institutions throughout the state. It also
included some new purchases of necessary maintenance,
grounds keeping, snow removal, and kitchen equipment. All
institutions operate 24 hours a day, 365 days per year, This
equipment is used constantly and continually. Their
sustained usage requires budgeting for routing replacement
of old and worn out equipment every fiscal year."
There were no questions by committee members and they moved
to the fourth item in the DOC budget packet, DATA
PROCESSSING TECHNICAL SUPPORT. Mr. Peeples explained that
this project would use $300,000 in federal receipts to
provide personal services funding for the agency's WAS/LAN
data and word processing technical staff for FY99.
The written comments the department provided said: "In
FY97, the agency was authorized additional micro/network
computer technicians and specialist to support the new
management information system development and operations
using federal funding received from the federal Criminal
Alien support program. This project provides the
continuation of the federal funding program support for the
positions in FY99."
"The agency has completed wiring and hardware infrastructure
development of a new wide area network (WAN) and local area
networks (LAN) management information system (MIS)
throughout all 32 agency work sites. The micro/network
computer positions provide critically needed program support
to these new WAN/LAN systems. Without the funding for the
positions, the agency could not maintain these MIS database
operations and would fail to meet responsibilities to the
coordinated statewide criminal justice information system
and other state, federal and local reporting requirements."
Mr. Peeples said the department qualified for the federal
Alien Act funding because of the non-citizens the department
was holding in the system.
Co-Chair Sharp noted how five positions were supported with
these federal funds.
The committee then addressed the final DOC request,
COMMUNITY JAILS SECURITY AND EXPANSION PROJECTS. Mr. Peeples
told the committee how DOC was under contract with local
governments for 15 jails across the state. If this request
was granted, he said the monies would be used for
maintenance of the existing facilities and possibly to fund
new ones.
The budget packet contained written comments on this item,
which said: "Local governments operate community jail
facilities in 15 statewide locations. The DOC contracts
with each local government to house prisoners who are held
under State charges. Most of the locations have facility
needs; however, five currently involve immediately needed
fire/life safety requirements and expansion efforts are
currently being reviewed in another three areas: Dillingham
$40.9 Renovation and Remodeling; Haines $11.2 Renovations;
Seward $17.8 Renovations; Sitka $5.0 Intercoms; Wrangell
$5.1 Miscellaneous safety equipment; $120.0 miscellaneous
statewide locations, life safety/security items to address
expansion of current contract jail locations. Currently
reviewing Toksook Bay, Hoonah, and Hooper Bay for expansion
of community jail locations."
Co-Chair Sharp wanted to know if in the past, the state
provided funds for these projects. Mr. Peeples replied DOE
had been working with the communities for the past two
years.
This concluded the presentation by DOC. Co-Chair Sharp
announced items included in the supplemental budget packet
would be taken up at next Saturday's meeting.
The committee invited DEPARTMENT OF EDUCATION
representatives to come to the table and speak to their
requests included in the FY99 Governor's Capital Budget
book.
KAREN REHFELD outlined the different requests and said they
would give presentations in a different order than listed in
the budget packet.
She introduced KAREN CRANE who was present to answer any
questions the committee may have regarding the library-
related items, which were to be addressed first.
Ms. Crane gave a brief history of the funding sources used
by the Division of Libraries, Archives and Museums for
LIBRARY MATERIALS, the first item addressed.
She expanded on a written statement included in the budget
packet, which read, "Until FY96 library materials were
funded from capital funds. Originally funded at about
$350.0 a year, this amount was reduced in the 1990's, until
in FY96, the State Library received no funds. IN FY97, the
Governor's operating budget included $200.0 for materials
but this was reduced to $100.0 by the Legislature. The
State Library cannot buy even the critically essential
materials to serve the needs of agency and legislative
staff. Periodical prices have risen 150% in the past 10
years; book prices 80%. It is most cost effective for the
state to centralize information services, but the State
Library can respond to agency needs only if it is able to
acquire the needed materials. This Capital amount is
critical to meeting these needs."
She explained this statement as basically saying that
because the program was only funded at 50% in the operating
budget, the division was asking for the remaining $100,000
granted from the capital budget. She told committee members
that because of the shortfall in recent years, the library
had been unable to purchase important historical records.
She gave as an example, a collection of materials once
belonging to Joe Juneau that the library was able to
purchase in the past. Without this additional funding, the
library would not be able to make similar purchases, which
she described as vital to the history of the state. By
granting the capital budget request, Ms. Crane emphasized,
the library would be able to keep pace with periodical
material and also purchase historical material.
Co-Chair Sharp asked for clarification that the FY99
operating budget contained a request of $100,000 for this
project. Ms. Crane agreed that amount was being requested.
The second DOE item to be addressed was AVTEC FOOD SERVICES
BUILDING - ROOF, RENOVATION AND UPGRADE. FRED ESPOSITO was
linked to the meeting via teleconference and spoke to this
request.
He told committee members that this building located on the
Alaska Vocational and Technical Education Center campus was
in various states of disrepair. Among other problems, the
roof leaked. The DOE was asking for $100,000 in FY99 for
this planned, phased project. This request would fund the
repair of major roof leakage in one AVTEC Food Services
classroom, the cafeteria, and kitchen for a total of 9,400
square feet.
There were no questions on this request and the committee
moved ahead to LIBRARY - STATEWIDE LIBRARY ELECTRONIC
DOORWAY [SLED].
A written statement in the Governor's proposed budget packet
explained SLED as follows: "Through a cooperative venture
between the University of Alaska Fairbanks and the State
Library, SLED provides Internet access to communities across
Alaska. SLED provided access to a wide range of materials,
including the legislature and its on-line information,;
basic government, education, medical and legal information;
and major library collections in Alaska and the United
States, including the holdings of the Library of Congress.
This access reduces the information inequities between the
urban and rural areas of Alaska. Since its inception in
FY95, SLED has received funding from the state, libraries,
and the private sector."
Ms. Crane told the committee members that most rural
communities had access material through SLED because they
did not have Internet capabilities. She said most of the
money required to operate this on-going program went toward
telecommunication costs. She added that SLED received about
1700 "hits" per month.
Co-Chair Sharp asked if this request was also included in
last year's Governor's packet. Ms. Crane replied that it
was.
Ms. Rehfeld began discussion on the next DOE request,
VOCATIONAL REHABILITATION HOME MODIFICATIONS FOR INDIVIDUALS
WITH DISABILITIES. She told the committee the $150,000
requested here would be used to provide grants to non-profit
organizations for home modifications for individuals with
disabilities throughout the state. If approved, this would
be considered a new, on-going project.
She spoke of the importance for many individuals with
disabilities to remain in their own homes and live
independently. DOE included written comments, which said,
"These modifications will enable the individuals to continue
to live in their homes independently and, in some cases,
will enable individuals to go to work. Without basic living
needs addressed first the individuals cannot consider
employment."
Co-Chair Sharp asked why this program would be run through
the DOE. Ms. Rehfeld answer was that the Division of
Vocational Rehabilitation is part of DOE. Senator Parnell
wanted to know if other funding for this project was
provided through the Alaska Housing Finance Committee. Co-
Chair Sharp said there was other funding for similar
projects. Senator Parnell noted that he was aware of other
grants issued by AHFC for home modifications. Ms. Rehfeld
said she wasn't familiar with AHFC programs and could not
speak to the issue. Co-Chair Sharp told the committee they
would get more details on AHFC programs at a later meeting
and concluded the discussion on this budget request.
The final item in the DOE request was ALASKA COMMISSION ON
POSTSECONDARY EDUCATION COMPUTER REPLACEMENT. DIANE BARRONS
came to the table to testify for this item.
She started out by bringing a budget modification to the
committee's attention. She said $63,000 of the original
request was devoted to other data. The PostSecondary
Education Commission was able to work out an agreement with
Division of Motor Vehicles to tag those functions onto their
system. Therefore, they would no longer need those funds.
The remainder of the funds would be used to "upgrade and
replace computer equipment to enhance delivery of
postsecondary education finance programs to consumers,"
according to the written comments included in the budget
packet. Other included comments said, "Essential Equipment
- During FY96 the agency successfully converted to a new
data processing system. This system places many highly
manual administrative processes with an automated paperless
system. Further, automation and efficiency is possible if
staff is properly equipped with appropriate equipment. This
capital project allows continuation of the agency's five-
year replacement plan by upgrading and replacing its local
area network peripheral equipment to current technology.
This will allow continued development of LAN based
subsystems to speed the delivery of the agency's education
finance programs to its constituents. Items purchased with
this capital project include: PCs; printers; and a modern e-
mail system."
This concluded the presentation from DOE on their budget
proposals for FY99.
The committee then took up the requests from the DEPARTMENT
OF ENVIRONMENTAL CONSERVATION.
KEITH KELTON AND MIKE BURNS spoke to a group of budget
requests that would fund the VILLAGE SAFE WATER PROJECT.
The department provided a written statement explaining the
project that read, in part:
"The Village Safe Water priority list proposes funding for
projects as follows:
Federal Receipts (EPA) $11,843.3
General Fund 8,081.1
AK Housing Finance Corp 16,351.0
Total $36,275.4
In addition, the list identifies federal funding from the
Rural Development Administration for $10,000.0. These funds
are awarded directly by RDA to the communities and authority
to receive and expand is not required. However, the use of
these funds does require a state dollar-for-dollar match.
Therefore, the state funding request includes match for both
the RDA and EPA construction appropriations totaling
$22,708.3 from a combination of General Fund and AHFC
receipts. The state appropriation request also includes
funding for capital improvement project (CIP) administration
of $1,723.8."
"...The VSW program provides technical and financial support
to rural villages in the construction of water, wastewater
and solid waste facilities. By statute (AS 46.07), a
village is defined as "an unincorporated community which has
between 25 and 600 people residing within a two mile radius
or a second class city, or a first class city with not more
than 600 residents." The VSW program, with a staff of 20,
works with village officials to plan, design and construct
approximately $45.0 million of projects annually. The
funding for this program has been a combination of federal
and state matching funds. Ownership of a project is
transferred to the village when it is completed with the
village responsible for the operation and maintenance (O&M)
of the utility."
"VSW projects are closely coordinated with other state and
federal agencies, particularly the principal federal funding
agencies: US Public Health Service (PHS), the US
Environmental Protection Agency (EPA), and the Rural
Development Administration (RDA). The VSW program and PHS
work on jointly funded projects, sharing funds and project
leadership, depending on the agency's history in working
with a particular village."
"The VSW program develops an annual project priority list
based on information submitted via questionnaires completed
by the villages. These proposed projects are ranked
according to a criteria system that considers principally
hazards to health and environment, and the village's
capability to manage O&M. The ranked priority list is
submitted through the Governor's Office to the Legislature
for funding. The Legislature determines the level of
funding available, taking into consideration the federal
dollars available to match state appropriations."
Mr. Kelton told the committee the department was requesting
$10,428,800 in General Funds for the VSW ADMINISTRATION.
This amount would be spread out over a six-year period and
was a one-time project.
Mr. Kelton then explained the request for VSW FEASIBILITY
STUDY GRANTS. The $5,902,700 General Fund requested was to
match federal funding of the same amount and be allocated
over the next six years.
Written testimony provided by DEC said, "The VSW program
encourages communities to analyze their sanitation problems
and develop cost effective solutions through engineering
feasibility studies before requesting construction dollars
through the capital budget process. This approach results
in better capital and operation and maintenance cost
estimates. This initial step also encourages the
communities to become more involved in planning the
facilities they will eventually own and operate. Planning
periods periodically take from 12 to 18 months to complete
providing the opportunity to develop additional utility
operating capacity through the Department of Community and
Regional Affairs Remote Utility Business Advisor program."
Mr. Kelton pointed out for committee members the FY99
priority list, which identified 20 engineering feasibility
studies for a total cost of $1,805.4, split evenly between
state and federal funding. He went into some detail about
the priorities. Co-Chair Sharp announced this list was
located in the smaller, "Budget Overview" binder.
He then spoke of the next two requests, VSW GRANTS MATCHED
BY FEDERAL RDA and VSW GRANTS MATCHED BY FEDERAL EPA. These
were both one-time projects spread out over six years. The
RDA match project would require $25,160,400 AHFC funds and
$34,839,600 General Funds. The EPA match project would
require $65,190,600 AHFC funds and $750,000 General Funds to
match $65,940,600 Federal receipts.
DEC written comments stated, "Federal funding in support of
the VSW program has been primarily in the form of matching
appropriations obtained by Alaska's congressional
delegation. These funds have been appropriated through the
US EPA and RDA. In addition, the Indian Set-Aside program
provides funding for projects administered by VSW and PHS.
Each appropriation carries the eligibility and matching fund
requirements corresponding to the federal program
administering the funding. The match requirements range
from zero with the Indian Set-Aside program to 50/50 with
RDA and EPA appropriations. RDA funds can be used to fund
water, wastewater and solid waste projects, while EPA funds
are available only for water and wastewater projects. RDA
funding is granted directly to communities and authority to
receive and expend funds is not required. Authority is
required to receive and expend EAP funding."
"It is anticipated that federal appropriations of $15,000.0
and $10,000.0 for EPA and RDA respectively will be available
for technical assistance training and education as well as
construction. The amount available for construction
requiring a state match is $21,843.3."
The next request was for a total of $3,365,000 General Funds
for VSW PROJECTS WITHOUT MATCH. Again, this would be spread
out over a six-year period and would be a one-time project.
Co-Chair Sharp asked if these monies would be used for
municipal matching. Mr. Kelton replied the funds would go
toward specific loan programs for communities that could re-
pay the loans.
Co-Chair Sharp wanted to know if the loans were processed
through DEC, which Mr. Kelton assured him they were.
Co-Chair Sharp then requested a breakdown of projects by EPA
and RDA funding. Mr. Kelton told him that determining the
eligibility of funds for each project was convoluted. He
expanded on the written comments explaining the types of
projects the different funding sources would cover. He
talked about the geographical and economical restrictions.
Some funds were limited to the western Alaska region, other
funds could not be granted to communities with a per capita
income that exceeded $40,000.
Mr. Kelton moved ahead to the next DEC request, DENALI
BOROUGH LANDFILL PROJECT, PHASE II.
He told the committee the $865,000 General Funds, if
granted, would allow for the construction of two transfer
stations, one each in Cantwell and Healy. Each would
include 10-yard dumpsters, lighting and a small heated shack
for a cashier/operator. The funding would also include
closing the Anderson and Cantwell dumps.
Co-Chair Sharp directed the discussion back to VSW. He
wanted to know if the totals were targeted to rural areas by
federal procedure. Mr. Kelton responded, telling the
committee how Senator Ted Stevens targeted rural or Native
villages. He admitted that there was a fairly broad area
that the department could apply the criteria. He talked of
the difficulty in coming up with the ratio of projects that
would still keep the program viable.
Mr. Kelton spoke of the Administration Match, how water and
sewer hook-ups would provide better health care conditions.
He again referred to the list showing the 20 feasibility
studies. He talked of DEC's efforts with DCRA to work with
communities to get infrastructures set up and staff properly
trained so the local community could take over and run the
projects. He emphasized this method of addressing the
matter had proven very successful.
The committee then resumed talk on the Denali Landfill. Mr.
Kelton explained how Phase III of the project was for the
actual construction.
Co-Chair Sharp asked for clarification that this project had
already gone through the planning stage and is ready for
construction. He wanted to know if it was "bid-ready." Mr.
Kelton said that while the project wasn't "bid-ready,"
construction was anticipated to begin next summer. He
explained that because of the timing of the fiscal year
funds dispersal and the short construction season, it would
not be feasible to plan the construction this summer. He
told the committee, one of the concerns was the timing of
the river barges that would deliver materials to the
construction site. There would be a risk of missing the
period of high water level, and once missed, the chance was
lost for the year.
There were no further questions and the committee addressed
the next DEC item, MUNCICPAL MATCHING GRANTS PROGRAM. Mr.
Kelton told the committee this program consisted of two
funding sources, $2,117,200 Federal Receipts and $14,633,600
General Fund. Some of the federal funds were available
through the EPA for Native and rural Alaskan water and
wastewater projects. The majority of those were committed
to VSW projects, however, five projects from the MMG program
priority list qualified for these funds. They were the ones
listed in this request showing a federal match. This
request also included other projects, listed by priority,
and proposed to receive general funds. He pointed out the
priority list of projects included in the budget packet.
Co-Chair Sharp asked about municipal match requirements.
Mr. Kelton responded that the municipalities would have to
come up with a match to qualify for the grants.
Senator Adams wanted to know about rural communities'
qualification for these grants. Mr. Kelton told him the
department would need to work with the applying community to
help them improve their infrastructure.
Co-Chair Sharp referred back to an earlier discussion the
Finance Committee had regarding a program to train
communities to establish and run their infrastructure. Mr.
Kelton replied that DCRA had a program titled RUBA which ran
in conjunction with DEC's program, to accomplish the same
goal.
Co-Chair Sharp asked if the department kept track of the
facilities built over the years in which the community had
abandoned because of a failure to run a feasible
infrastructure. He wanted this information as it applied to
the VSW project. He emphasized that the reason for his
interest in tracking the successes and failures of these
projects was because of the significant amount of money
being spent. He noted that it comprised a large percentage
of the Capital Budget.
The committee took up the next DEC budget item, FOOD SERVICE
LABORAROTY. CURT FREDRIKSSON and JANICE ADAIR joined the
committee via teleconference from Anchorage. Ms. Adair told
how the lease was about to expire, and after 25 years in the
same location, the facility was no longer adequate to serve
the needs of the department. Of particular importance, was
the demands placed on the microbiology program, which did
not function well at the current facility. She said the
$145,700 General Funds would be used to evaluate the
replacement options and prepare the department to pursue the
most effective replacement solution
Co-Chair Sharp asked when the current lease would expire.
Ms. Adair answered this June.
The next DEC budget request was addressed, ELECTRONIC ACCESS
TO DOMESTIC WASTEWATER PROPERTY FILES. Ms. Adair explained
to the committee how this database would contain the
information in DEC's domestic wastewater files for use by
engineers, realtors, developers, lenders, homebuyers and
sellers. This data was accessed continually and needed to
be easier for the public to use, she stressed.
Written comments included in the budget packet stated, "The
data would be available my modem, compatible with various
municipalities' GIS systems and searchable by property
description, address, system types, owner name, and other
fields as necessary. DEC staff would maintain the system.
Ms. Adair said the project would be funded with $200,000
AHFC funds and would be a one-time project.
The committee heard testimony from ALICE EDWARDS on the next
item, FINE PARTICULATE MONITORING. Ms. Edwards went into
detail explaining the need for this project. She said, in
part, that the US EPA required the state to install and
operate particular matter (PM) 2.5 monitoring stations
throughout Alaska. Particulate matter of less than 2.5
microns is a product of combustion and is linked to numerous
adverse health impacts, according to Ms. Edwards. The
division was requesting $3,077,200, over a six-year span for
this one-time project.
In a statement prepared by DEC, the issue was further
explained as follows, "The project is requested to enable
the department to better protect Alaskan residents from the
harmful effects of long-term exposure to fine particulate
matter (smaller than 2.5 microns). Fine particulate matter
is a product of combustion; common sources include cars,
trucks, oil- or coal-fired power plants, natural sources
(such as volcanoes), and oil-fired home heating systems.
Recent health research has linked low concentrations of fine
particulate pollution to increased incidents of respiratory
and heart disease, school absenteeism, hospital visits,
cancer in women and premature death. Medical researchers
have shown that fine particles penetrated deep into the
lungs and, although the mechanism is not fully understood,
cause health impacts, which now rank fine particulates among
the top five harmful pollutants. EPA's new PM 2.5
regulation requires the state to install and operate PM 2.5
samplers for a minimum of three years. EPA will totally
fund this monitoring under Section 103 Grant - no state
match is required. The funding will be used to procure,
install and operate PM 2.5 monitoring networks across the
state to meet the department's mission of protecting public
health."
Ms. Edwards listed for the committee what the funding for
this project would accomplish. She said the division would
procure, install, operate and repair PM 2.5 particulate
samples in 15 rural and urban sites across the state. They
would monitor and analyze the filters and establish
regulations working with local governments to develop air
quality standards, and develop a health advisory
notification system to warn the public when conditions
become unhealthy; and train state and local air quality
staff.
Senator Adams voiced concerns about the air quality in many
rural areas in the state. He asked how this program would
be applied to rural communities. Ms. Edwards told him the
department's first priority would be to address the larger,
urban communities because they were subjected to higher
amounts of pollution. The department would attempt to
establish monitoring stations in some rural areas after the
urban needs were met.
Senator Adams noted the funding for this program was
proposed to continue for six years. He directed the
department to spend some of the resources on rural
communities. Of particular concern to him was the Village
of Nuigsut, where emissions from the North Slope oil
activities cast a yellow cloud over the community.
Co-Chair Sharp told the committee that his concerns related
to the possibility of future funding requirements of the
state to maintain and operate the monitoring stations after
they are installed. He understood that federal receipts
were paying for the start-up costs, but said he didn't want
the state, because it accepted the federal funds, to be
required to financially support the program later.
This concluded the discussion on the air quality issue and
the committee moved on to the next DEC item, LOCAL RESPONSE
AGREEMENTS. Mr. Fredriksson spoke on this program where the
department had entered into agreements with fifteen local
governments to use their emergency response resources to
respond to oil spills. Under these agreements, DEC
reimbursed local governments for actual costs incurred while
responding to a spill. The department anticipated entering
into agreements with additional communities, Mr. Fredriksson
explained.
Senator Adams asked for an explanation of the Oil/Hazardous
Fund, used for this program. Mr. Fredriksson told him the
fund consisted of two accounts. The Response account, with
a balance of $50 million, is earned from a two-cent per
barrel surcharge imposed on produced crude oil. The other
part of the fund, the Prevention account, charged three-
cents per barrel on produced crude oil. Senator Adams, Co-
Chair Sharp and Mr. Fredriksson had further discussion on
the statutes dictating this fund.
The committee then addressed the next group of DEC requests
relating to fuel storage tanks.
The first item was, UPGRADE, CLOSURE OR REPLACEMENT OF
STATE-OWNED UNDERGROUND STORAGE TANKS. Mr. Fredriksson told
the committee the department was requesting $4,428,900
Oil/Hazardous Funds over the next two fiscal years. These
funds would be used for the upgrade, replacement or
permanent closure of sub-standard state-owned underground
storage tanks. These tanks store petroleum for essential
services such as power generation, emergency power backup,
vehicle and equipment fueling. Tanks were located at
approximately 85 different facilities, many of them in rural
communities.
The department included with its request, a complete list of
the tanks slated for this project.
Senator Pearce asked if the department's intent was to have
all state-owned tanks cleaned up by 1999. Mr. Fredriksson
affirmed that.
Co-Chair Sharp asked for clarification of "state-owned"
facilities. Mr. Fredriksson explained that DEC had entered
into agreement with other departments to address the needs
of fuel tanks owned by those departments. He gave
Department of Education's state-owned school facilities as
one example. The other agencies were, Administration, Fish
& Game, Natural Resources, Public Safety, Transportation and
University of Alaska. By consolidating the efforts into one
department, the state would save considerable costs,
according to Mr. Fredriksson.
The second item was for the CLEANUP OF STATE-OWNED
CONTAMINATED SITES.
Written testimony provided by DEC said, "Over 250 state-
owned contaminated sites are listed on DEC's Contaminated
Sites Database. These sites are located on lands owned by a
variety of state agencies. While many of the sites are
being addressed by a responsible party other than the state
(i.e., an oil company on state-leased property), many of
them were actually created by a state agency or third party
that is not taking action to address the contamination."
"This CIP will address some of the most threatening
contaminated sites for which the state is directly
responsible. The work involves assessments of the type of
contaminants, the location (how far have they spread, is
groundwater affected, etc.), cleanup, and where possible,
cost recovery. While priorities may shift slightly, sites
proposed for work under this request are: Anaik White Alice
- School Facility; Aniak Airport Building 302; Deadhorse
Hotel Property; Arctic Coiled Tubing; Old Coldweather
Contractors; Peger Road Maintenance Station; Haines Fuel
Terminal; Pedro Bay School; Manokotak School and Kaltag
School."
Mr. Fredriksson told the committee the department was
requesting $6,739,000 Oil/Hazardous Funds, over the next
four years for this one-time project.
Co-Chair Sharp stated that while he saw the proposed
projects listed, there were no dollar amounts showing the
costs for each site. Mr. Fredriksson told the committee he
would provide a breakdown.
The committee had further discussion on the particular
projects selected for this program.
The next item was then addressed; UPGRADE, CLOSURE OR
REPLACEMENT OF PRIVATELY-OWNED UNDERGROUND STORAGE TANKS.
Mr. Fredriksson said the department, under this program,
intended to issue grants to minimize the financial burden
imposed on tank owners and operators by federal and state
requirements. The request was for $14,823,500 over a three-
year period of time.
He pointed out that the department provided a list of
proposed projects and their ranking.
Senator Adams asked how much money had been spent to date on
this project. Mr. Fredriksson replied approximately $20
million.
Co-Chair Sharp asked what spending account would be used to
pay for this project. Mr. Fredriksson told him the name of
the account was called Storage Tank Assistance Fund.
The next storage tank item addressed was the UPGRADE OF
STATE-OWNED ABOVEGROUND STORAGE TANKS. Mr. Fredriksson told
the committee the purpose of this program was to improve
bulk fuel storage conditions at state-owned or operated
facilities by repairing, upgrading, replacing and/or
consolidating aboveground storage tank facilities. He said
the main focus of the program was spill prevention.
Another function of the program would be to initiate
training programs for state, local and private operators.
Mr. Fredriksson stated there was a real problem, especially
in rural areas, with operator error. The situation could be
helped if the operators were properly trained. In addition,
he added, these trained operators would be ideal candidates
to run their local Emergency Response Program.
The department requested $6,400,000 Oil/Hazardous Funds over
the next four years. A list of the proposed projects was
included with the budget request.
Senator Adams asked how much had been spent for private
owners' upgrades or repairs because state or federal
standards that changed since the tanks were purchased. Mr.
Fredriksson assured him that the tanks addressed in this
request were very large, bulk-fuel facilities, which were
not usually found in most rural communities. He said the
smaller, privately-owned tanks Senator Adams was referring
to, fell under different guidelines and funding was
available through Department of Community and Regional
Affairs to bring those tanks up to compliance. Senator
Adams noted there was nothing in statute to govern this.
Co-Chair Sharp said the program proposed 80% of its funds to
REAA school projects. He asked if there was any funding
available for non-REAA schools. Mr. Fredriksson replied
that the department composed a priority list based on the
severity of the problem. He stated that just because a
school was not an REAA school, it wasn't automatically
excluded. Co-Chair Sharp admonished that all the schools
included were REAA schools and he did not see any
participation from communities in those areas.
The next item was for STATE HAZARDOUS MATERIALS RESPONSE.
This request asks for $1,500,000 Oil/Hazardous Fund over
four years for the establishment of an in-state hazardous
materials response team.
Mr. Fredriksson told the committee this program was to be
directed at high-risk areas in the state such as the rail
system and the Kenai Peninsula. He stressed that there was a
need to take a more defensive posture on this matter.
He said the department had reached an agreement with
Fairbanks to provide service in the area surrounding that
community. Co-Chair Sharp asked if Fairbanks and Anchorage
dealt with emergencies using their existing fire-rescue
agencies. Mr. Fredriksson said that was correct.
The committee moved on to the next request, the
INVESTIGATION AND CLEANUP OF PRIVATLEY-OWNED CONTAMINATED
SITES. Mr. Fredriksson briefly described the need for this
six-year, $12,340,000 Oil/Hazardous Fund appropriation.
He said this program would focus on ensuring clean up on
contaminated sites that posed the greatest potential threat
to public health and the environment, regardless of who
owned the sites. This primarily applied to situations where
the property owners either refused, or challenged their
responsibility in handling clean-up efforts themselves. In
these cases, DEC would go ahead and perform the clean-up
then try to recover the costs at a later date. Another
situation this would cover were those in which no single
responsible party could be determined and thus assigned to
do the clean up.
There were no questions and the committee was finished
hearing testimony regarding the Oil/Hazardous Fund
allocation requests.
The next DEC item was the COOK INLET WATER QUALITY
MONITORING DATABASE. Written comments included in the
budget packet said, "This project is to develop a
comprehensive water quality geographic information system
(GIS) for Cook Inlet to monitor chronic sources of marine
pollution that may be affecting recovery of resources and
services injured by the Exxon Valdez oil spill." The
request was $340,000 EVOSS Funds.
Senator Adams asked if FY99 was the final year for this
program, which Mr. Fredriksson told him it was.
The committee then took up the final DEC request included in
the FY99 Governor's Budget packet, NATURAL RESOURCES DAMAGE
ASSESSMENT PROTOCOL AND GUIDELINES. Mr. Fredriksson said
this project would be funded with EVOSS funds also.
The department's written statement said, "An extensive and
in-depth scientific research program has been conduced in
the wake of the Exxon Valdez oil spill. While a significant
volume of research findings has been accumulated, none of
this information has been examined to compare the biological
resources damaged, the sampling protocol used to make the
initial damage assessment, the process of recovery of these
resources or how sampling and assessment should be conducted
at future spills to aid in our understanding of damages to
the environment. This multi-year project will review the
scientific information, which has been collected since the
Exxon Valdez oil spill and evaluate which studies are most
relevant to identifying the best means for assessing and
evaluating impacts and damages from another large spill."
"The project would also include development of scientific
sample protocols and guidelines that would be a blueprint
for state scientific data collection efforts when a spill
occurs. When a spill occurs it is not possible, during the
emergency phase of the response, to collect all of the
scientific information that may be needed to quantify
damages to natural resources. It is, therefore, necessary
that sampling protocols and guidelines be developed along
with an overall sampling strategy to target what scientific
information is most essential to documenting impacts and
damages. Such sampling and assessment protocols may be
directed towards overall ecosystem impacts, tropic levels or
biological resources. It would be a guide to sampling
efforts that will provide information to the state for
recovering damages to state natural resources. The goal of
the project would be to achieve the highest dollar value
recovery regardless of whether the approach is based on
population levels, individual species, or other approaches.
A review of past economic evaluation data would also be
conduced as part of this project to support an appropriate
sampling hierarchy and assessment protocols."
Co-Chair Sharp admonished that it had been ten years since
the Exxon Valdez oil spill and there still was not a
finished product on setting the protocol. He said he found
the last sentence of the department's statement interesting.
Senator Pearce agreed and asked why DEC didn't have a
finished product. When Mr. Fredriksson said he did not know
why, she said she wanted to review what monies had been
spent on the program to date before approving any more. She
emphasized that she did not question whether the need was
important, just that she would need reassurance that the
funds had been put to good use.
Co-Chair Sharp added that he realized the funds were
considered "free money," but that there should be some
accountability and something to show for the expenditures.
Mr. Fredriksson attempted to clarify the difference between
this program and others which attempted to judge the spill
response efforts. He said this program focused on damage
assessment and how it would be determined.
Senator Pearce wondered if the question of damage assessment
wasn't already being decided in the court system with
litigation from the Exxon Valdez oil spill.
Mr. Fredriksson said this program was an effort to look at
the actions of the past ten years and decide what steps to
take in future spill situations. This would include what
samples should be taken and other processes that proved
successful in making assessments of the damages from the
Exxon spill. He stressed that the intent was not to
determine whether or not the participating parties in the
Exxon spill clean up did a good job, but that the intent was
to plan for future incidents.
This concluded the presentation from DEC. Co-Chair Sharp
called for a break at approximately 10:40 a.m. He announced
his intention of adjourning the meeting at 1:00 p.m. and
asked further speakers to be concise and brief.
When the meeting resumed, the committee heard presentations
on the DEPARTMENT OF FISH AND GAME capital project requests.
KEVIN BROOKS, Director of the Division of Support Services
testified.
The first request was $400,000 for STATEWIDE FACILITIES
REPAIR, MAINTENANCE, AND REPLACEMENT. A written statement
on the project stated:
"The Department of Fish and Game has employees in over 40
locations around the state and own facilities in many of
these locations. These facilities include offices,
bunkhouses, warehouses, workshops, cabins, laboratories,
airplane hangers, and other structures that are vital to the
mission of the department. Most routine, ongoing
maintenance is funded through annual operating
appropriations. Larger repair, renovation and replacement
projects have been requested in the capital budget, but have
been funded at only a fraction of the identified amount in
recent years. Deferred maintenance on facilities is a
critical issue for the department with many of the requested
projects involving life, health and safety issues."
"In identifying and prioritizing projects, the department
first considers life, health and safety implications. It is
critical that we provide a safe and efficient environment to
our employees and the public as we carry out our statutory
responsibilities of managing the state's fish and wildlife
resources. Projects are also developed so that facilities
will comply with the American's With Disabilities Act (ADA);
meet building, mechanical, electrical, and life safety
codes; and comply with Department of Labor standards for
employee housing. Finally, the department actively pursues
projects that will reduce operating costs through energy
efficiency measures, and insuring the structural integrity
of a facility will remain sound for a minimum of 20-30
years."
"...These projects are representative of the types of
projects needed and reflect current facility needs.
Projects may be added or deleted to meet changing priorities
and conditions. With a FY99 request of $400.0, the
department will address only the most critical projects in
the upcoming construction season. Additional project detail
is available upon request."
Also included in written testimony was a list of projects
and costs associated with completion of each, totaling $2.9
million.
The next item ADF&G requested to be funded was VESSEL
MAINTENANCE AND REPAIR. This would "...maintain large
research vessels. These vessels support fishery monitoring
and stock assessment programs" according to written
testimony. The amount desired was $250,000 in general
funds. Mr. Brooks reminded the committee this request had
been before the Legislature in the past and had not been
funded. Co-Chair Sharp asked if the vessels were used
primarily for the commercial fishing division activities.
Mr. Brooks affirmed.
SOUTHEAST REGION VESSEL FACILITY was the third ADF&G budget
request and asked for $1,170,000 general funds and $130,000,
or ten-percent, fish and game funds. Mr. Brooks explained
this was for the vessel facility in Juneau. Again the
request was made last year and was not funded. Mr. Brooks
stressed the urgency saying that the department needed to
vacate the facility this year, as the building was located
on Mental Health Trust Authority land. This request would
allow the construction of a building just east of the
present location on NOAA owned land, he explained. A land
lease exchange was agreed upon where ADF&G could erect a
building and have access to their dock. The cost of
constructing a new dock would cost over $1 million he
shared.
The department included ten-percent funding from the
Fish/Game fund because both fish and wildlife divisions
would use the facility. Co-Chair Sharp wanted to know if
the department currently used Fish/Game in the present
facility, or if this would be the first time the funds would
be used on the vessel facility and storage operations. Mr.
Brooks responded that the state did not pay for the use of
the subport building. However, after July 1, the building
would revert to MHTA ownership. He said that the commercial
fisheries division operated a tag laboratory in the subport,
which they already relocated. In addition, the entire
department, along with others, used the building for storage
and the Department of Administration was using a separate
request to accommodate the storage operations.
The next item was HARDROCK MINING FISHERIES RESEARCH. Mr.
Brooks explained the $225,000 AIDEA receipts request. He
referred to earlier testimony from Janet Kowalski, Director
of the Habitat Division, about the tremendous growth in the
mining industry in Northwest and Interior Alaska. It was
estimated that over 1 billion private sector dollars were
being expended for exploration, construction and production
this year alone. Therefore, the department was requesting
funding to help collect baseline biological data to assess
the impact on fish resources and to work with industry to
developing those projects.
Co-Chair Sharp noted this was a two-year project using AIDEA
funds the first year and general funds the second. Mr.
Brooks though there was potential for using AIDEA funds the
second year, but wouldn't be determined until the next
year's budget process.
The committee moved on to the next ADF&G budget request of
$200,000 for REGIONAL WILD FOOD HARVEST SURVEY. Mr. Brooks
said the funds would go to the Subsistence Division to
gather data for management purposes as well as information
for the Boards of Fisheries and Game. A lot of the data
that department had was very outdated, some of it over ten
years old. What the division hoped to do was bring the
harvest surveys up to date and get on a three to five year
cycle for the state, Mr. Brooks stated.
Co-Chair Sharp asked if this would be in addition to harvest
tag and fish ticket information. Mr. Brooks explained that
the surveys would entail staff going out into rural
community households.
Mr. Brooks told the committee those were all the ADF&G
project requests that would use general funds.
The next request was for $300,000 AIDEA funds to be used on
DEVELOPING FISHERIES projects. Mr. Brooks referred to
discussions over the past couple of years about developing
projects. The department had been in a quandary because
they knew of population stocks that they were unable to tap
because of fears of exploitation. He used as examples of
sea urchins, herring, crab and shellfish. The department
hoped to devise a mechanism for developing fisheries and has
worked with industry to use their money for some of the
work.
This project would serve two purposes, according to Mr.
Brooks. One would be to do stock assessments. The other
would work through a public process to establish a funding
mechanism for these types of projects that would allow
development, be good for the fishermen and generate revenue
for the general fund as well. He stated that the department
believed this would be a very good project to pursue.
Co-Chair Sharp asked that in light of the difficulty of the
last year, if the department would provide a breakdown of
what developing fisheries they intended to use the funding
for. Mr. Brooks agreed to provide the information.
MOOSE RESEARCH CENTER REPAIR AND MAINTENANCE was the next
ADF&G project in the FY99 budget request. Mr. Brooks told
the committee the center was built during the middle 1960's
and that part of the $100,000 Fish/Game funds would be used
for access road improvements because sections of the road
were impassible during a couple months of the year. Other
work needing to be done included roof repair and other
building deferred maintenance on the animal handling
facility.
Mr. Brooks then moved on to the HATCHERY RENOVATION, REPAIR
AND MAINTENANCE request for $112,500 federal receipts and
$37,500 Fish/Game funds. He spoke of the Anchorage facility
located near Fort Richardson operated by the Sport Fish
Division that was in need of upgrades and repairs.
He then testified to the SPORT FISHING AND RECREATIONAL
BOATING PUBLIC ACCESS AND FACILITY DEVELOPMENT project.
This request was for a total of $5.6 million, $4,200,000 in
federal receipts and $1,400,000 Fish/Game funds. This was
another project that was 75 percent federally funded,
according to Mr. Brooks. This on-going project was
required, as 12.5 percent of available federal funds must be
set aside for access-type projects. He explained how the
department worked with communities across the state in
developing these projects.
Co-Chair Sharp encouraged committee members to look at the
detail sheet attached to the written statement that showed
where the funding would be spent. His only concern was that
the amount of money had rapidly escalated in the last couple
years on expenditures out of the federal fish and game funds
and the rolling balance of federal fish and game funds were
going down. He realized there was an infusion of new money
into the state fish and game fund, but the balance was being
spent faster than it was coming in. He was concerned that
they were spending down to where they couldn't react.
Mr. Brooks replied that the department shared the concern
and watched the situation very closely. He pointed out that
in the Division of Wildlife Protection the federal balance
was dropping, but for the Sport Fishing Division there was
actually an increase. He referred to the passage of the
federal Brady Bill and said there was a spike in the federal
funds because of the excise taxes on ammunition. He assured
the committee that the department watched the fish and
wildlife sides separately to ensure the sustainability of
the funds.
The committee moved along to address the AREA OFFICE
EQUIPMENT REPLACEMENT budget request. Mr. Brooks explained
that this was a project proposed by the Division of Wildlife
Conservation to use $100,000 Fish/Game funds. They did an
assessment of their area offices and this would provide
upgrades. He spoke of a vehicle that needed replacing.
Typically the department obtained vehicles from surplus and
used them well beyond their life expectancy. He also told
of ATV's and snowmachines that needed replacement.
Tape #105 Side A
The last ADF&G request was for JUNEAU INDOOR SHOOTING RANGE
AND HUNTER EDUCATION FACILITY CONSTRUCTION. The project
requested $1,000,000 Fish/Game funds and $500,000 federal
receipts for the construction of a two-room hunter education
facility and indoor shooting range. Mr. Brooks told the
committee there was an outdoor shooting range in Juneau and
that an indoor range was located in the basement of a
school, but the arrangement was no longer available. He
stressed that the department was watching the federal funds,
making sure enough surplus built up before they planned to
begin this project. The federal fund allocation was
designated for hunter education projects.
Co-Chair Sharp asked his staff member, TOM WILLIAMS about
the federal match. He wanted to know if it was the same
ratio, noting that funding for the Fairbanks shooting range
had to be switched in the supplemental budget because of
overspending. Mr. Williams said the funding had been fifty-
fifty, but was now 25-75 federal to state funds. Mr. Brooks
pointed out that in the operating budget there was a fairly
specific three to one match with the federal being the
larger share. For the shooting range, there was not the
specific requirement, he said. There was further discussion
and Co-Chair Sharp assured that the committee and the
department would work further on the matter.
This concluded the ADF&G capital project requests.
Co-Chair Sharp called upon the OFFICE OF THE GOVERNOR to
speak to its one request. JOAN BROWN, Budget Analyst for
the Office of Management and Budget presented the item.
This was a $500,000 general fund request to continue work on
compliance with the AMERICANS WITH DISABILITIES ACT. She
explained that the funds would be used to remove the
physical barriers within state-owned facilities in order to
comply with the federal law.
Senator Parnell wanted to know why this request was done
through the Office of the Governor rather than the
Department of Transportation and Public Facilities. Ms.
Brown replied that some of the funds were RSA'd to DOT&PF or
to the University, depending on the specific project.
Senator Parnell asked if DOT&PF had any ADA requests
included in their capital budget. Ms. Brown did not know
specifically. She said some projects had ADA compliance
requirements included in them, but if there was no other
work planned other than ADA compliance, the funding was
funneled through the Governor's Office. She said that
DOT&PF did an inventory in 1994 and identified about $55
million dollars worth of compliance projects needed. Those
projects had been funded through the Governor's Office since
1994.
Ms. Brown pointed out that $1 million was also included in
the supplemental budget request for ADA items.
The committee then heard presentations on the DEPARTMENT OF
HEALTH AND SOCIAL SERVICES capital projects.
JANET CLARKE represented the department and said she would
cover both the capital budget and mental health budget
funded items.
She first addressed the DEFERRED MAINTENANCE, RENEWAL,
REPLACEMENT AND EQUIPMENT request. This was for $192,300
federal receipts and $750,000 general funds, for the
department's 38 state-owned facilities, including youth
correctional facilities and public health centers. Ms.
Clarke testified that many of the facilities were run 24
hours a day and got extreme use. Like other state agencies,
DH&SS had many deferred maintenance issues, she said.
A list of some of the projects was included in the budget
packet, to which Ms. Clarke referred.
Ms. Clarke then spoke of the next project that was amended
by the Governor and included a request for $550,000 bond
revenue and $275,000 in general funds for project related
expenses for the PUBLIC HEALTH LABORATORY NON-BONDABLE COSTS
project that was authorized by the Legislature last session.
She told the committee that the certificates of
participation had been sold. What the department needed
from the Legislature was authorization to receive and expend
statutory designated receipts that were allowable to be
charged to the certificates of participation for
construction management work. She said there were some
costs that could not be charged to the certificates based on
their tax-exempt status. She explained those expenses were
the reason for the general fund request.
She spoke further of the stipulations of the bond receipt
expenditures. Some of the exclusions were internal audits
and right-of-way activities.
She told the committee that when the bond certificates were
sold, they received the lowest rate, which was much lower
than discussed with the Legislature last year.
Ms. Clarke moved on to the next item for WELFARE REFORM
INFORMATION SYSTEM AND OFFICE AUTOMATION. This was the
third of a four-year project to upgrade the eligibility
information system to comply with the changes made to
welfare reform. She explained the past mainframe system
with dummy terminals and the new, front-end Windows based PC
link into the mainframe. The mainframe would still be used
as a data repository. The upgrade would provide a more
flexible way for workers to perform their jobs.
She said most of the equipment and hardware was already
purchased. The Anchorage office was the only one left and
consisted of this request. She spoke of federal
requirements that the state comply with a "maintenance of
effort" stipulation.
VITAL STATISTICS ARCHIVE IMAGING AND SYSTEM REPLACEMENT was
the next item in the DH&SS capital budget request. Ms.
Clarke told the committee the two-year project would
implement optical imaging to preserve some of their vital
statistics records. This included birth and death records
along with marriage and other records and would allow on-
line access to the information. She said that many of the
records were currently stored in a vault, but were old and
there were problems with deterioration of some of the
papers.
The next request was for $341,600 general funds for
EMERGENCY MEDICAL SERVICES COMMUNICATIONS EQUIPMENT. Ms.
Brooks reminded the committee that last year the Legislature
had funded some of the Interior's highest priority needs to
replace communication equipment in some of the "dead spots."
A lot of that money was used along the main highways. She
referred to a study funded by the Highway Safety Planning
Agency that pointed out some additional major communication
problems for emergency medical services. She told the
committee there was still a lot of work to be done in this
area and these funds would be used to continue the efforts.
She detailed some of the specific projects.
Co-Chair Sharp said it was his understanding that these
funds would be used primarily for equipment and would not
include training. Ms. Clarke affirmed.
The committee then heard presentations on DH&SS projects
that would be funded through the Mental Health Trust
Authority bill. Ms. Clarke informed the members that all
four of the proposed projects had been approved by the MHTA
in their recommendations to the Legislature and the
Governor.
The first item was $225,000 for STOP-GAP REPAIRS AT ALASKA
PSYCHIATRIC INSTITUTE. Co-Chair Sharp noted that RANDALL
BURNS, Director of API, was on-line to answer any questions
if necessary. Ms. Clarke told how API was a 35-year old
facility and there had been some well-publicized articles on
the state of API. She stated that the relatively small
amount of this request would help the department deal with
the most critical life/health/safety code compliance issues.
She advised that the cost to completely repair the facility
would be millions of dollars. However, sine the department
was working to find a replacement for the facility, they
elected to perform only the most needed repairs.
Mr. Burns was invited to comment via teleconference from
Anchorage. He offered to go through a list of their
concerns. It was decided that the written statement
provided in the budget packet would suffice.
Ms. Clarke continued with the next request, which was
$400,000 for DEFERRED MAINTENANCE - COMPETITIVE GRANTS FOR
TRUST BENEFICIARY PROGRAM FACILITIES. She told the
committee that this project would not fund any state
facilities but would go out for competitive grant for all
four beneficiary groups who would apply for the most
critical life/health/safety issues within their facilities.
She added that this request did not apply to ADA compliant
projects. The funds would be used for items such as
sprinkler systems.
Senator Parnell asked if this money was in addition to
payments made through the operating budget and Medicaid
program for contractual services. He felt that the private
sector businesses should budget their income to accommodate
these needs. In fact, he heard arguments from the providers
explaining why they held money from year to year so they
could save up to purchase things like upgraded computer
systems. Therefore, he suggested that since these were
private facilities provided services to the state in return
for payment, they should cover these expenses themselves.
He thought it odd that the state was providing grants to the
businesses so they could upgrade their capital.
Ms. Clarke explained that this was an on-going practice and
there was a wide range of circumstances with each grantee.
Some may have been able to hold onto funding to provide the
upgrades. However, some of the smaller providers might not
be in the same situation but still had the same
life/health/safety needs.
The next DH&SS item was BENEFICIARY AND SPECIAL NEEDS
HOUSING PROGRAM. Ms. Clarke explained that the department
had implemented this program for the last four years and did
it in conjunction with the Mental Health Trust Authority and
the Alaska Housing Finance Corporations. They had been
successful in using these funds in the past as Harborview
was closed and they funded home improvement and development
for patients coming out of Harborview, according to Ms.
Clarke. She spoke of the downsizing at API and said the
funds would continue to be used for community-based
services. Independent housing was shown to be a primary
requirement for self-sufficiency, she stressed.
She reminded the committee how in the past, the department
had provided them with a complete summary of the projects
and offered to do so again.
Co-Chair Sharp asked if this was the funding source for
facilities like the new Douglas Terrace facility. Ms.
Clarke didn't think this program funded that project, but
that it was similar to the types of projects that were
funded in the program. She gave a facility in Kenai as an
example of one that was funded under this program.
Co-Chair Sharp returned to the Douglas facility and wondered
where the funding for it came from. Ms. Clarke said she
would check. She said projects in their program went
through a competitive grant process and that it was possible
that the Douglas facility participated in some way.
Co-Chair Sharp requested the detailed breakdown of which
programs received the funding and the number of units built.
Senator Parnell referred to the written statement provided
in the budget packet. He noted one of the special needs
housing listed was for transitional housing with support
services for newly recovering alcoholics and addicts.
Similar language was also used in the General Relief
Assistance Program, and he wanted to know if the funding was
used for capital construction projects or for rent payments
for program participants.
Ms. Clarke replied that the intent of this program was for
capital home modifications or other investments, not for
rent payments.
The last request for DH&SS used all mental health trust
receipts and was for COMPLETE CAPITAL NEEDS ASSESSMENT OF
ALL BENEFICIARY PROGRAMS. Ms. Clarke spoke to the $200,000
request.
THE DEPARTMENT OF MILITARY AND VETERANS AFFAIRS was the next
agency to present its capital budget requests. NICO BUS,
Administrative Services Manager for DMVA and the Department
of Natural Resources, spoke to items for both departments.
The first DMVA request was for the JUNEAU ARMORY DESIGN AND
CONSTRUCTION. Mr. Bus reminded the committee that the
Legislature funded the first phase of the project last year
and this year's request would primarily cover construction
costs and get the project to the point of qualification for
federal funding. He said the City and Borough of Juneau and
the MHTA came to an agreement over the issue of land and the
department had the needed land permitted. They also had a
contract secured with DOT&PF to conduct environmental
studies and design work.
Co-Chair Sharp saw that the general fund portion was a two-
year project and asked what was the minimum amount required
in order to qualify for federal matching funds. Mr. Bus
replied that it depended whether the facility was a state or
federal armory. State armories, such as the Juneau
facility, required a 25 percent state-funding match. In
addition, environmental work and site preparation must be
paid with state funds.
NEW PHONE SWITCH - INTEGRATED SWITCH DIGITAL BETWORK
COMPLIANCE was the next DMVA item. This would allow the
department to upgrade the switches to make them more
adaptable to emergency support response, according to Mr.
Bus. This second of a three-year project requested $96,000
general funds.
The next request was $148,000 federal receipts and $102,900
general funds for NATIONAL WARNING SYSTEM UPGRADE PHASE II.
Last year, the Legislature funded the first increment of
this phased project, said Mr. Bus. He explained how this
project would take advantage of prevailing technology and
converge voice-grade warning systems to digital interface
networks. The department planned to hook up 27 communities
and with the funding last year was able to do nine
communities, purchase network servers and other equipment.
Under this phase of the project, they would hook up three or
more communities, depending on equipment costs, and continue
over the next several years until all 27 were connected. He
noted that equipment costs were lowering and the department
was hopeful they could do more communities with the
appropriated funds.
Mr. Bus moved on to the next item, EMERGENCY WIRELESS PHASE
II. He explained that the funds form that request would
purchase four repeater wide spectrum wireless communication
systems in Southcentral Alaska and allow the department to
improve communications during disasters. He spoke of the
Miller's Reach fires where repeater stations' circuits were
either preempted or destroyed. This would make the
department more independent of the repeater stations and
improve the ability to respond to emergency situations.
The next capital budget request was for $84,000 federal
receipts and $150,000 general funds for ARMY GUARD DEFERRED
MAINTENANCE, RENEWAL AND REPLACEMENT. Mr. Bus spoke of a
significant backlog in deferred maintenance needs. The
funds would be used for essential facility repairs such as
failed furnaces, roof repairs, structural components,
electrical systems, etc., according to Mr. Bus. He said
those were prioritized within the department.
Co-Chair Sharp requested a detailed list of the facilities
and planned repairs.
VHF RADIO REPLACEMENT - DIVISION OF EMERGENCY SERVICES was
the next DMVA item. Mr. Bus said that to be compatible with
the new federal standards, the department received an
appropriation last year to replace all their radio
equipment. This year they requested $146,400 for the second
to the last phase of the purchasing project.
JIM HARPING of the Division of Emergency Services was linked
to the meeting from Kenai via teleconference. He added that
this project was part of a migration with each state,
community and the federal government trying to do this in
unison. He urged that the equipment must be replaced
because of FCC mandate. According to Mr. Harping, a task
force comprised of federal and state representatives
approached their vendors who responded favorably to requests
for assistance in the project. He estimated they would
complete the changeover within the next two to five years.
Mr. Bus moved along to EMERGENCY COMMUNICATION RESPONSE TEAM
- EQUIPMENT. He explained that there were five response
teams available for emergency response deployment. Those
were the people who would get to the site first and often
times there was no form of communication or other equipment
available. Therefore, the teams needed to be completely
self-sufficient within the first 72 hours. This request
would equip one of the teams with the full set of necessary
equipment, according to Mr. Bus.
Mr. Harping described some of the emergency situations where
these teams were deployed. He spoke of the communication
services they provided. In his opinion, this had been a
very successful operation. Previously, funding for this
program came exclusively from the operating budget.
However, the equipment was worn and needed replacing to keep
the teams effective.
The next item was for the NOME ARMORY DESIGN AND
CONSTRUCTION. The total cost of the facility would be $7
million and this portion of the request was for $5,712,500
federal receipts and $662,000 general funds, explained Mr.
Bus.
Co-Chair Sharp noted that the larger general fund allocation
would be required next year. As a point of interest, he
asked why the state match was higher than that for the
Juneau Armory. Mr. Bus replied that a donation made by the
City and Borough of Juneau counted towards the state match
requirement.
The final DMVA request was $2 million federal receipts for
ARMY GUARD STATEWIDE PLANNING AND CONSTRUCTION. Mr. Bus
told the committee this project was for contingency planning
and construction. He said that sometimes because of
congressional add-ons or other reasons, the department was
appropriated extra money but it needed a designated project
in order to expend those funds. This project would allow
the department to do that, he explained. At this time there
were no specific plans because funding was contingent on
federal appropriations.
Mr. Bus began presentations on THE DEPARTMENT OF NATURAL
RESOURCES capital budget projects.
The first was for COMPLETION OF LAND STATUS GIS SYSTEM.
This project had been funded by the Legislature for the last
six years and was on target and almost complete, according
to Mr. Bus. The project converted manual status plats to
digital so people could call the information up on computer.
This would eliminate the need for manual maintenance, speed
up the decision making process for the resource managers and
allow public access through the Internet. The request for
this year was $250,000 AIDEA receipts.
The next DNR request was RURAL COALBED METHANE $200,000
general funds. Mr. Bus explained this project as an
alternative to energy for rural communities. The
Legislature had been funding this for the last several years
and was getting the project ready to enter the drilling
phase. He told the committee the department identified
three areas where they could perform drilling operations.
He offered MILT WILTSE, Director of the Division of
Geological and Geophysical Surveys, who was on-line from
Fairbanks and could speak further to the project.
Mr. Wiltse further explained the project as originally
requested by the Governor several years ago. Coalbed
methane was a new technology in the country and DGGS brought
in experts from Texas to educate them. They were working to
locate target sites to drill and test the feasibility of
producing coalbed methane. The actual drilling phase of the
project would be very expensive, he warned. The department
was working to get a body of knowledge before beginning to
drill so there would be the best chance of success.
Also, Mr. Wiltse said, the department was trying to obtain
federal matching funds for the project. Some of the capital
funds already appropriated and requested here would be used
to encourage the federal DOE or the US Geological Survey
funds to match the state dollars to share the burden of some
of the late phases of the project. The $200,000 requested
this year would be used in conjunction with funds from
previous appropriations to do more detailed on-site
investigations, such as seismic testing to understand the
local geological structural situation at the target sites,
according to Mr. Wiltse. They hoped to avoid drilling in
wrong areas.
Mr. Bus continued to the next project, STATE PARKS EMERGENCY
REPAIRS. Basically the park units had several areas where
there was a deterioration of facilities and in order to
protect them, the department identified about $400,000 worth
of work to be done, he explained. The repairs would include
water systems, roads, repairing cabins, improving workshops
and in the Big Delta State Historic Park, do riverbank
erosion protection.
Co-Chair Sharp asked if any of these projects were included
in the deferred maintenance list. Mr. Bus replied that the
Division of Parks had identified $35 million of deferred
maintenance. Co-Chair Sharp assumed there would be some
overlap.
AIRBORNE GEOPHYSICAL AND GEOLOGICAL MINERAL INVENTORY was
the next item. Mr. Bus spoke to the $500,000 AIDEA receipt
request and again offered Mr. Wiltse as the project manager
who could highlight the project.
Mr. Wiltse said the private industry investment in the
growing industry was encouraging. This year DNR had
identified four areas that would be the maximum number of
mining districts where they would conduct the airborne
surveys was contingent upon the level of funding from the
CIP request, he explained. Those areas were the Fortymile
district, Livengood district, Iditerod Mining district in
southwestern Alaska and the eastern Nome district in western
Alaska. A final decision would be made on which of the
areas are flown when they knew the outcome of the CIP
request. He said they tried to match the funding level with
the area that needed to be flown in order to do a credible
job, according to Mr. Wiltse. He stated that all the
identified tracts had exceptionally good mineral potential,
varying degrees of accessibility and had residents desiring
mineral development. Each of the areas had ground staking
done in anticipation that the surveys would be flown.
Co-Chair Sharp wanted to know if any of the prospective
areas had other landowners or federal agencies that might
participate similar to what was done in the Nome area. Mr.
Wiltse was not aware of any, but noted that the projects
were not to the appropriate stages. However, he felt there
would be participation from the Native Corporations in the
Nome area were the projects to go forward in western Alaska.
He spoke of federal interest in activities in the Fortymile
area as well as Canadian interest in the mineral holdings
across the border. Therefore he speculated there would be
future cooperative work with the US Geological Survey, the
Canadian Providential Survey and the Canadian National
Survey. Co-Chair Sharp remembered Doyan Corporation used to
have land ownership in the area, but wasn't sure if they
still did.
Mr. Bus moved on to the $200,000 AIDEA receipts request for
the RECORDER'S OFFICE EQUIPMENT UPGRADE. He told the
committee that the recorder's office operated in 14
different locations and were a high production organization.
They produced images of real estate transactions and
performed other tasks. This request would fund equipment
replacement as the current equipment was failing. Mr. Bus
reminded the members that the department approached them
last budget year requesting new technology. When that was
not funded, they held stakeholders meetings and received
feedback from their customers saying that at the very least,
the office needed good equipment; copiers, time stamps,
reader printers and other necessary items. He offered the
written statement in the budget packet detailed the specific
items. As a footnote, he added that because of the Airborne
Geophysical and Geological Mineral Inventory project and the
increased business it brought the recorders office, they
collected $340,000 in revenue than budgeted. Some of the
customers expected that some of the income be reinvested in
equipment replacement, he stated.
The next item was also a Recorder's Office request, $165,000
for RECORDER'S OFFICE APERTURE CARD FILMING AND DIGITIZING.
Mr. Bus explained there was a deterioration of records and
specifically between 1970 to 1977 during the pipeline era
the records produced were of a very poor quality. Many of
those were unreadable. Using new technology, those
microfilm records could be re-filmed to obtain much better
data. This project envisioned filming and enhancing the
records from the seven-year period. It would then also be
possible to digitize them and make available in that format.
Co-Chair Sharp asked if this required distinct equipment,
which Mr. Bus affirmed. Co-Chair Sharp wanted to know of
the two procedures, re-microfilming and digitizing, which
was the most critical. Mr. Bus replied that the
microfilming equipment was the most needed.
STATE LAND DISPOSALS AND LEGAL DEFENSE SURVEYS was the next
request and asked for $300,000 general fund. Mr. Bus spoke
to this explaining that the project was an opportunity for
the state to dispose of some of its lands. This project
envisioned offered 200 previously offered lots and 100
remote recreational lots for sale to citizens. The funding
would allow the department to do surveys and appraisals and
enable for sealed bid actions. He stressed that the revenue
generated would far exceed the costs and offered an
opportunity for the general public to get more state land.
Co-Chair Sharp wanted to know what was the tie-in with the
legal defense surveys and if the parcels would be specific
areas or tied in with land disposals. Mr. Bus responded
that it would be in support of the legal activities and he
assumed that the Department of Law and the DNR would work
together on identifying those and doing right-of-way
determinations. Of the total request, $50,000 would be used
for the legal defense portion of the project. Co-Chair
Sharp wanted assurance that under this project, a fee simple
wouldn't be written to an existing right-of-way.
Senator Adams requested a list of the land disposal areas
for the committee. Mr. Bus said one would be made
available.
The committee then heard the next request for $150,000 for
STATE OIL AND GAS ELECTRONIC INTERFACE WITH INDUSTRY. Mr.
Bus stated that this was an automation effort to work with
the industry. Nationwide, there was an attempt to get data
to entities, such as the Division of Oil and Gas. He added
that the State was working through the Information
Technology Group to get all royalty production reports
electronically. Currently, the division received all its
reports manually and had to renter the information, which
was very labor intensive and pushed the process about 30
days behind. Under this project, the information would be
transferred electronically by the oil companies as soon as
they had it, and the division could immediately update its
royalty information and records. The funds would be used to
buy the hardware and software that would enable that, Mr.
Bus told the members.
Mr. Bus next addressed WILDLAND AND URBAN INTERFACE FIRE
TRAINING AND CERTIFICATIONS. The $120,000 requested would
be used towards a national project to improve the ability to
track fire qualifications of state and Structure Fire
Department firefighters, according to Mr. Bus. It would
require a PC based National Wildland Fire Qualification
tracking system and refurbishing of some excess equipment
for training purposes, he continued. He offered JEFF JAHNKE
Division of Forestry Director and DEAN BROWN, Deputy
Director, was available if the committee had questions. Co-
Chair Sharp noted that some of the members had already been
lobbied on this request.
REFORESTATION AND MONITORING was the request heard next.
Mr. Bus said this project envisioned doing two reforestation
projects, $100,000 for reforestation in the Tanana Valley,
$100,000 for reforestation in the Kenai area and $50,000 to
monitor both areas. The goal was to stimulate forest
management and timely reforestation as required under the
Forest Practices Act and promote the enhancement of
production of the renewable resources.
Senator Adams asked about the Miller's Reach fire damage and
if the division had plans to reforest that area. Mr. Jahnke
said the Kenai reforestation portion included plans to
reforest areas that suffered fire damage. There were no
plans for reforestation in the Mat-Su area, he stated. Most
of that area was "urban interface" or privately owned, he
added.
Co-Chair Sharp then asked if the planned reforestation would
be done in harvested areas. Mr. Jahnke said that was
correct with the exception of the fire-damaged area in
Kenai.
Mr. Bus moved on to the FEDERAL EXCESS PROPERTY - VEHICLES
request for $150,000, which would fund the maintenance of
federal access property. He told the committee the
department had equipment available from the federal
government at no charge. However, there sometimes were
repair costs. The department then loaned the equipment to
local and private fire departments. This request would
enable DNR to obtain equipment for use by the structured
fire departments, which were first to respond to fires. In
his opinion, it was important to outfit these fire
departments with current and up to date equipment.
The next item in the DNR capital budget packet was SOUTHEAST
VALUE ADDED TIMER SALES. Mr. Bus explained that this
project envisioned two timber sales based on the value-added
legislation passed in 1996. One would be a timer sale in
Wrangell and the other would be in Ketchikan. The $108,000
funds would be used for the layout and travel to those
sites. Co-Chair Sharp expressed surprise that there was
state-owned timberland in Southeast.
A presentation for the FAIRBANKS FACILITY MAINTENANCE,
REPAIR AND CONSTRUCTION was then heard. DNR had a nice
facility on one side of the road, but the other side of the
road held surplus equipment from the federal government
accumulated over several years, according to Mr. Bus. Last
year, the Legislature appropriated funds to replace a
furnace. This year the department was requesting money to
upgrade the power supply to meet safety codes, do
renovations to make the building ADA accessible and
construct restrooms so there would be separate men's and
women's facilities. Mr. Bus stated that written material
included in the budget packet detailed the requests.
Mr. Bus next spoke to the OIL AND GAS ROYALTY ACCOUNTING
SYSTEM PHASE II. He noted that the Legislature previously
funded phase I of the project. He said a lot of progress
had been made on the royalty accounting and this portion of
the project would purchase software upgrades to make all the
reporting standard and improve the manual processes. This
would speed up the amount of royalties billed to the oil
companies.
The next request was for $60,000 for FIRE MANAGEMENT PLAN
MAP ATLAS UPGRADING. Mr. Bus explained that in
firefighting, the mass of land ownership determined who paid
for the firefighting efforts. The map had been updated over
the last several years and contained errors and
inaccuracies, according to Mr. Bus. This funding would be
used to update the map and make it digitized for wider
access.
Mr. Bus then presented KENAI RIVER AREA PLAN STUDIES
IMPLEMENTATION. This included two projected recommended by
the Kenai Area Special Management Group, comprised of DNR,
Department of Fish and Game, Department of Environmental
Conservation, the Kenai and Soldotna boroughs, the guides
association, sport fishermen, and Kenai River property
owners. One part of the project would be a vessel
overcrowding study and would address the social aspect of
how many vessels could reasonably be on the river at any one
time. The other part of the project would be a boat wake
erosion study and evaluate whether the boat wakes were
damaging the habitat. This had matched funding with the US
Geological Survey who was doing a hydrology study, and had
already contributed $35,000 to this project.
Co-Chair thought it might tie into the major boat launch
facilities included in the ADF&G capital project requests.
The next DNR item was AGRICULTURAL LAND DISPOSALS. Mr. Bus
explained that, similar with the Division of Lands, the
Division of Agriculture over the last several years had
reposed several parcels they would like to sell again.
Also, with the mental health settlement, the division was
now in a position to offer those parcels that were in
dispute, he stated. This project would offer parcels,
including 8,750 acres currently in state ownership, and put
the land back in private ownership. The funding source for
this project would be Agricultural Loans and would generate
about $4-5 million for the loan fund, Mr. Bus anticipated.
Co-Chair Sharp wanted to know if any revenues generated
would return to the Agirc Loan fund. Mr. Bus affirmed,
saying that the revolving loan fund was the owners of the
property. However, the portions of the sale that were part
of the Mental Health Claims settlement would go into the
general fund.
Co-Chair Sharp asked if this was strictly Agriculture Rights
land. The project proposed to do ALF properties and
Agricultural Rights properties, Mr. Bus answered. He added
that the earlier lands disposal capital project was Title 38
lands under the direction of the Division of Lands.
Mr. Bus continued with the presentation, speaking to the
SYMMS TRAILS FEDERAL GRANTS. He explained that this
federally funded project would allow the state to award
grants to different organizations for trail projects. He
listed past awards granted to different organizations and
the number of applicants versus the number of awards.
The next request was $640,000 federal funds for NATIONAL
HISTORIC PRESERVATION GRANTS. These grants were awarded to
individuals for historic preservation activities and were
comprised of 60 percent federal and 40 percent state funds,
according to Mr. Bus. This specific request was for capital
projects, which were all federally funded, he added. He
spoke about the application and awards process of the
grants.
Co-Chair Sharp noted the large amount of money and looked in
the written statement for the areas anticipated for
projects. He was unable to find that information and
requested the department provide it. Mr. Bus replied that
he would and added that most of the funds were routed
through the Division of Parks, History and Archeology who
administered many of the projects. Co-Chair Sharp's concern
was that he felt the funds should go to non-profit groups
rather than aid to the division. Mr. Bus replied that a
large percentage went to the division to administer all the
different grants. Then the funds went to local communities.
Co-Chair Sharp requested a list of the past year's
activities plus anticipated activities for this year.
The committee then heard the presentation for ABANDONED
MINES LANDS RECLAMATION. Mr. Bus explained that over the
years, there had been many mines abandoned and there was a
federal program that tried to mitigate the hazards caused by
the abandoned mines. The $1.5 million used to be accounted
in the operating budget, this year the department switched
the funds to the capital budget because all the money would
go to private contractors to fix the hazards, according to
Mr. Bus. They were multi-year projects and the department
felt it was more appropriate to reflect them in the capital
project. Co-Chair Sharp asked if the programs were
administered through the Division of Mines, which Mr. Bus
affirmed.
TRACI CRAMER, member of the Exxon Valdez Trustee Council,
came to the table to speak to the next DNR capital budget
request, KENAI HABITAT RESTORATION AND RECREATION
ENHANCEMENTS. She noted there were two other EVOSS projects
that were included in the Governor's budget amendment. The
Kenai project would allow DNR to proactively manage
resources at the same time as accommodating the public, she
stated. This project would include the construction of
boardwalks, grateways, signage, re-vegetation of the
riverbank and possible redirection of the public to keep
them away from the critical habitat areas. The $462,300 was
entirely settlement funds, she pointed out.
Ms. Cramer then spoke to the other two requests; the first
was SMALL PARCEL PURCHASES. This would allocate $820,000 for
the acquisition of three small parcels. The price was based
on the appraised fair market value and included $500,000 for
the Baycrest parcel. This was a 90-acre parcel located
north of Homer and fronted Katchemak Bay. Also included was
$80,000 for a parcel on the Ayakulik River, $240,000 for a
parcel on the Karluk River Lagoon. Co-Chair Sharp requested
detail on the items since they were not included in the
capital budget packet.
The third project Ms. Cramer addressed was $3 million for an
archeologically repository and local display facilities.
The Exxon Valdez oil spill affected the archeological
resources of the area, she stated. The trust council
therefore approved this money to access the damage.
Included in the project was construction of an archeological
repository, a regional repository on the Price William
Sound, construction of mobile display facilities in the
communities themselves so the artifacts could be brought the
to communities, and also development of traveling exhibits.
According to Ms. Cramer, the exhibits would be developed in
the regional repository and then made available to the local
display facilities.
Co-Chair Sharp asked if a repository site had been selected.
Ms. Cramer listed eight communities interested in housing
either the repository or the display facilities. At that
time a Request for Proposals was being drafted for
distribution the next week. The plan was to competitively
solicit for the different facilities. Co-Chair Sharp wanted
to know if these would be housed in only one community. Ms.
Cramer replied that the repository would be in one community
and the others would have either constructed or upgraded
local display facilities. Co-Chair Sharp pointed out that
some of the communities seemed too remote to allow wide
viewing of the exhibits.
Mr. Bus continued with the two remaining Governor's capital
project amendments for DNR. The first was for MT. MCKINLEY
MEAT AND SAUSAGE PLANT ROOF REPAIR, overseen by the Division
of Agriculture. He told the committee that the plant burned
down and that most of the fire damage had been repaired.
However, the department division discovered during the
reparations that the roof was in worse shape than they
thought. The insurance did not cover those repairs and the
$150,000 requested in the amendment would be needed. He
described that phase one of the project would get the
facility to a stage where it could be opened for business,
and phase two would complete the project. He stressed the
necessity for the roof repairs, saying if they were not done
the roof would leak and the plant would need to be closed
again. The Department of Environmental Conservation
required the closure due to concerns of meat contamination.
Co-Chair Sharp commented that he had no idea of the ripple
affect of the plant closure until the fire forced the
earlier closure.
The next item was the ROYALTY OIL [PRICE REOPENERS -
undistinguishable] for $100,000. Mr. Bus said this had been
funded in a prior capital project and was part of royalty
settlements with the oil companies. The settlements
stipulated that the oil producers or the state could come
back and argue on the calculation of the royalty payments,
destination and other factors. The department exhausted the
$100,000 and this request would replace those monies, he
said. The funds were used to hire expert witnesses,
contracted out from private sector to support the state's
case on these disputes.
Returning to the original capital budget packet, the
committee took up MENTAL HEALTH TRUST LAND MANAGEMENT PLAN.
Mr. Bus explained the $530,000 request as part of a five-
year assets management strategy to develop and implement the
direction of the trustees to deal with asset management for
the mental health land issues. This project would fund
hiring of contractors for technical expertise to value and
inventory assets, perform feasibility and marketing
research, develop real estate plan prospectives, etc. said
Mr. Bus. The mental health board approved the funding.
The final DNR request was $15,000 for MUNICIPALITY AND
BOROUGH SPECIAL ASSESSMENTS. As a state landowner, the
department was getting involved with local improvement
districts, explained Mr. Bus. Most of the time the state
did not participate in these activities, but given the
democratic process, when the property owner decided to do a
local area improvement district, the state was assessed a
portion of the cost. Past appropriation for these projects
had been exhausted and the department currently had a $2000
assessment from the Mat-Su Borough. Mr. Bus anticipated
that this $15,000 could be used for the next seven to eight
years to pay for some of the small local area improvement
district assessments.
This concluded the presentation by DNR. There was no other
department presentations taken at the meeting.
Co-Chair Sharp noted there was no Senate Finance Committee
meeting scheduled for the following Monday. There were no
other announcements except Co-Chair Sharp's stated intent to
finish departmental presentations on the capital budget the
next Saturday.
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