Legislature(2005 - 2006)SENATE FINANCE 532
02/08/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Alaska Mental Health Trust Authority Presentation | |
| SB233 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 233 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 233
"An Act making appropriations for capital projects; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
CHERYL FRASCA, Director, Office of Management and Budget, Office of
the Governor, stated this bill is the vehicle through which
Governor Frank Murkowski has proposed to spend a portion of the
$1.2 billion in unanticipated FY 2006 (FY 06) State revenue.
Approximately $565,000,000, or half of that revenue, would be
separately allocated to support FY 2007 (FY 07) K-12 education. She
reminded the Committee that, in FY 2005, the Legislature had
approved funding FY 06 Education expenses with unanticipated FY 05
revenue.
Ms. Frasca continued that the Governor has also proposed to
allocate approximately $400 million, or one-third, of the FY 06
unanticipated revenue to fund the Gas Pipeline Project.
Ms. Frasca specified that this supplemental capital budget bill
would allocate ten percent, or $130 million, of the FY 06
unanticipated revenue to support transportation and deferred
maintenance expenses.
Ms. Frasca stated that, of the entirety of the aforementioned
proposals, the Administration would "view" this proposal as being
the "more traditional way" of spending FY 06 additional revenues.
She noted that "some others who cover the Legislature's
deliberations" had "characterized" this legislation in that
fashion.
Ms. Frasca pointed out that department projects are being presented
in this supplemental bill rather than being requested in the FY 07
capital budget because the funds are available in FY 06. This could
be likened to the Legislature's decision last Session to expend
unanticipated FY 05 revenue on transportation projects.
Ms. Frasca stated that of the total $130 million expenditure being
proposed in this bill, $86 million would be allocated for
Department of Transportation and Public Facilities' transportation
projects including $12 million for Seward Highway safety
improvements. Funds for enforcement activities on that Highway
would be requested separately. $44 million would be spent on
deferred maintenance to address State facilities needs.
Ms. Frasca pointed out that in years past, the Legislature exerted
substantial efforts to catalog the backlog of deferred maintenance
needs for school districts, local governments, and State
facilities. This request would be limited to addressing State
facilities needs, as the total need would exceed available funds.
Ms. Frasca noted that representatives from the departments are in
attendance and would be able to address Committee questions.
Co-Chair Green surmised that Members might continue to question the
need to address these projects with FY 06 funding. Except for the
aforementioned Legislative action the previous Session,
Supplemental Budgets have traditionally been utilized to fund
"unanticipated" expenses rather than being a mechanism through
which to spend "unanticipated revenue".
10:09:14 AM
Senator Bunde concurred with Co-Chair Green's remarks and noted
never before having experienced a supplemental capital budget bill
during his 14-years as a Legislator. To that point, he asked
whether such a budget had ever been presented.
10:09:33 AM
Ms. Frasca responded that "perhaps its a question of structure".
The supplemental bill that passed the Legislature the previous
Session included appropriations that utilized FY 05 revenues. She
noted that a project's effective date would dictate the fiscal year
in which the project would be funded. The Administration opted to
present the projects in a Supplemental bill since the effective
dates would dictate the use of "current year revenues". There was
no intent to imply that these were unanticipated needs.
Senator Bunde opined that that would "expand the definition of
supplemental a bit". From his point of view, the request must also
be accompanied by a "pretty solid justification of need" rather
than simply being requested because there was money available. "I
think we can always find an excuse to spend money; we don't always
find the needs."
10:10:53 AM
Ms. Frasca stated that, as the projects are reviewed, the needs
would become obvious; the requests are not "frivolous". The total
departments deferred maintenance needs exceeded $700,000,000; 60
percent of which were University of Alaska needs. Through the use
of a "threshold test of merit", the projects were "carved down
significantly"."
10:11:31 AM
Department of Administration
Maintenance Projects for Facilities Outside the Public
Building Fund
$3,620,000 General Funds
Reference No.: 41581
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2011
Funding is necessary for continued maintenance of facilities
outside the Public Building Fund. The group of facilities
includes the Governor's House, 3rd floor of the Capitol
Building, the Dimond Courthouse, the Archives/Records Center,
the State Museum and Building Annex, and the Subport Building.
All of these facilities are located in Juneau.
On-Going Project
10:12:36 AM
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration, stated that this request would
include major projects such as the structural and foundation work
needs for the Archives and Museum Buildings and the water line
replacement project for the Dimond Courthouse. Also included were
smaller projects, such as the window replacements and generator
replacements.
Co-Chair Green communicated to Mr. Swanson that when the projects
included in this request were compared to the "outside of the
Public Building Fund" projects included in the $3.1 million FY 06
capital bill, it was found that six of the projects were
duplicates. "That's a little troublesome."
Mr. Swanson explained that the list could be characterized as a
"snapshot in time", as the priorities of the list change from year
to year. A project included last year could "drop off" the list
this year were another project's needs to escalate. Nonetheless,
the Department would review the list in order to avoid duplication.
10:14:35 AM
Co-Chair Green asked whether this could be interpreted to mean that
the funds allocated to the Department could be used "for anything";
the Department "would not be required to adhere to the list".
Mr. Swanson clarified that while the Department does endeavor to
adhere to "the overall list", the priority list would be affected
by changes in facilities circumstances. He understood that
communiqué in this regard had been provided.
Co-Chair Green acknowledged that language to that effect had been
provided. Nonetheless, she viewed the changing of priorities as
being "problematic". Therefore, she asked that notification be
provided when priorities change in order to prevent confusion about
the request.
Mr. Swanson stated that a review of the projects would be
conducted.
Public Building Fund Facilities Projects
$5,500,000 General Funds
Reference No.: 41583
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2011
Funding is necessary for continued maintenance of state owned
facilities that make up the group known as Public Building
Fund Facilities. These facilities include the State Office
Building, the Alaska Office Building, the Community Building,
the Public Safety Building, and the Court Plaza Building (all
located in Juneau), the Douglas Island Building (Douglas), the
Atwood Building (Anchorage), and the Fairbanks Regional Office
Building.
On-Going Project
Mr. Swanson reviewed the facilities that would be addressed by this
request.
10:16:35 AM
Co-Chair Green requested that notification about changes in this
prioritization list also be communicated. She asked regarding the
zero funding need anticipated for FY 07, as indicated on the
project summary sheet.
Mr. Swanson stated that that information was erroneous, as the
Department has not of yet developed its FY 07 capital budget
request.
Co-Chair Green asked that the information be corrected. She assumed
that the Department's FY 07 request would amount to approximately
$3,000,000, which was the amount requested in FY 06.
Mr. Swanson communicated that the information would be updated.
10:17:38 AM
Co-Chair Wilken, observing that the Department of Administration's
deferred maintenance requests amount to $9,120,000 and the
Department of Transportation and Public Facilities' deferred
maintenance request equates to $2,000,000, commented in regards to
"the imbalance in the requests, as it was his understanding that
they each operate approximately the same number of buildings. To
that point, he requested that the departments' requests include
facility's square footage and/or number of buildings. This would
assist in clarifying the imbalance, and, in addition, might provide
evidence to support increasing funding to the Department of
Transportation and Public Facilities.
10:19:00 AM
Co-Chair Green understood therefore that Co-Chair Wilken was
suggesting that funding should be increased for the Department of
Transportation and Public Facilities.
Co-Chair Wilken responded that such decisions could be made
following the receipt of the aforementioned information.
10:19:14 AM
Senator Bunde requested that the Departments provide requests in
order of priority. He assumed that the project backup material, as
presented, is in "random order" as otherwise, it would imply that
the replacement of the rock wall around the Alaska State Museum is
a higher priority than replacing sewer lines.
Co-Chair Green asked the Department whether the list accompanying
the request was in order of priority.
10:19:59 AM
Mr. Swanson clarified that non-public building fund and public
building fund requests were presented in priority order.
Co-Chair Green understood therefore that the number one Department
of Administration priority would be the request regarding the
Alaska State Museum.
Mr. Swanson expressed that the number one priority for the Public
Building Fund was the State Office Building and the number one
priority for the non-public building fund was the State Museum
annex.
Senator Bunde puzzled over the fact that the State Museum rock wall
replacement, listed as number ten on the non-public building fund
priority list, outranked a roof replacement project.
10:21:31 AM
Department of Corrections
Deferred Maintenance, Renovation and Repair
$2,500,000 General Funds
Reference No.: 41925
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2012
This project will provide funding for essential repair and
renovation of electrical, mechanical, roofing, walls,
fire/life safety, security, structural, food service,
pavements and site drainage systems for all correctional
facilities. This work is required to enable continued safe,
secure and efficient operation of the 24-hour incarceration
facilities.
On-Going Project
SHARLEEN GRIFFIN, Director, Division of Administrative Services,
Department of Corrections, informed the Committee that, like the
Department of Administration, the Department of Corrections' list
of deferred maintenance needs is in priority order. In addition,
the Department develops a six-year plan.
Ms. Griffin affirmed that when a project on the list experiences an
urgent need, it would be elevated on the list. An unanticipated
failure might "bump" a project on the list.
Ms. Griffin noted that the entirety of the projects included in
this request are correctional facilities ranging between 20 and 40
years of age. The pump involved in the Palmer Medium Security
facility sprinkler system repair is undersized for the sprinkler
heads and is unable to pump water for 15 minutes. The water system
repair needs at the Wildwood Correctional Center are similar to
those of Palmer. The fire alarm system at the Juneau Lemon Creek
Correctional Center is failing. The Spring Creek Correctional
Center security fence must be enhanced and the fence alarm system
must be replaced. The Highland Mountain Correctional Center is in
need of roof and wall replacement as well as asbestos abatement.
Numerous other projects are included in the Department's priority
list.
Senator Bunde noted that a list of the projects has not been
provided.
In response to a question from Co-Chair Green, Ms. Griffin
responded that the Department would provide Members a copy of both
the six-year plan and the deferred maintenance list in priority
order.
Co-Chair Green inquired to the reason for the elevated request
levels depicted on the project summary for the out years 2008 and
2009.
Ms. Griffin stated that the projections would include items on the
Department's six-year plan such as deferred maintenance needs,
repair and renovation projects, security operating systems, as well
as fire and life safety issue projects.
10:26:06 AM
Department of Education and Early Development
10:26:23 AM
Mt. Edgecumbe High School Facility and Infrastructure Repairs
and Upgrades
$500,000 General Funds
Reference No.: 41992
Category: Education
Location: Sitka
House Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 03/16/2006 - 06/30/2007
Upgrades and repairs to facility and infrastructure.
EDDY JEANS, Director, Division of Finance, Department of Education
and Early Development, explained that this request would address a
leaking roof and asbestos abatement needs in the aging fire hall
building currently being used as a storage facility for the Mt.
Edgecumbe High School. The second project that would be addressed
would be the floor replacement in the girl's dormitory. The receipt
of the funds as requested would allow the dormitory work to be
conducted this summer when the school is not in session.
Co-Chair Green recalled that the school had been appropriated
$2,500,000 last year for school repairs and maintenance needs.
Mr. Jeans responded that the master plan developed for the school
would include "tens of millions of dollars in repairs." An
additional $2,500,000 would be requested in the FY 07 capital
budget to provide for boiler replacement and other structural
repairs.
Co-Chair Green asked for information as to how this funding would
be distributed to other areas of the State.
Mr. Jeans clarified that this funding would be dedicated to the Mt.
Edgecumbe School. The school is a State operated facility.
Senator Stedman informed the Committee that, as Mt. Edgecumbe High
School is included in his district, he had recently toured the
facility. The storage building is a metal frame building that was
constructed during World War II, and the asbestos coating the pipes
has "literally collapsed" and is laying "inches thick on the
ground." Everything in the building is ruined. Other buildings,
while not in as bad a shape, also have asbestos issues. The issues
at the storage building must be addressed.
Department of Fish and Game
10:29:15 AM
Deferred Maintenance, Renovation, Repair and Equipment
$300,000 General Funds
Reference No.: 30128
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2010
This project will provide for repair, maintenance and
renovation of department facilities statewide.
On-Going Project
TOM LAWSON, Director, Division of Administrative Services,
Department of Fish and Game explained that this request would
address several of the Department's deferred maintenance issues.
The Department has facilities in more than 40 areas of the State
including offices, bunkhouses, warehouses, workshops, laboratories,
and other similar types of structures.
Mr. Lawson noted that the Department manages a "running list" of
its annual deferred maintenance needs. The FY 06 list included $3.4
million in project needs. The list is updated as projects are
completed.
10:30:24 AM
Senator Bunde requested that, rather than listing projects by
region, the Department's list be depicted in priority order.
Mr. Lawson concurred.
10:30:49 AM
Fairbanks Infrastructure Renewal and Replacement
$150,000 General Funds
Reference No. 39885
Category: Health/Human Services
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 03/15/2006 - 06/30/2010
Funds are requested to design and relocate the small wildlife
research laboratory in the Fairbanks office away from the
existing office space, and to remodel the existing lab space
into additional workspaces that could be used to lessen the
overcrowding in the facility.
One-Time Project
Mr. Lawson stated that this request would allow for the
construction of a separate building to house a small wildlife
research laboratory in the Fairbanks areas. The existing laboratory
is attached to a regional office building. The smells generated by
the laboratory activities permeate the office. In addition, the
current office facility is at capacity. The construction of a
separate laboratory would serve two purposes: it would negate the
concern about the smells and would allow the office space to be
expanded.
Department of Health and Social Services
10:32:29 AM
Deferred Maintenance, Renovation, Repair and Equipment
$1,100,000
$ 100,000 Federal Receipts
$1,000,000 G/F Match
Reference No.: 31862
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2009
This request is for deferred maintenance projects for 29
Department maintained facilities including health centers,
youth facilities and behavioral health facilities statewide
with a combined replacement value of $158.0 million. Funds
would be used for immediate and critical renewal, repair,
replacement and equipment needs in state-owned facilities
along with selected leased facilities. This request does not
include the deferred maintenance needs for the Pioneer Homes,
or for recently constructed facilities, including the new
Alaska Psychiatric Institute (API), the Anchorage Public
Health Lab and Office of the State Medical Examiner, or the
Ketchikan, Kenai, or Nome Youth Facility.
JANET CLARKE, Assistant Commissioner, Finance and Management
Services, Department of Health and Social Services, informed the
Committee that this request would address the deferred maintenance
needs for the entirety of the Department's facilities other than
the Pioneer Homes. She alerted the Committee to the fact that the
Department would not be presenting any deferred maintenance project
requests in the FY 2007 capital budget.
Ms. Clarke noted that a list of prioritized projects is included
with the backup material for this request. In addition, a separate
handout titled "FY07 Deferred Maintenance Capital Request
Representative Photos" [copy on file] would provide photographs of
some of the specific projects included in this request. The
Department's number one and number two priority concerns, as
depicted in the handout, would be to replace obsolete building
controls in both the Fairbanks Health Center and the Ketchikan
Health Center with modern digital controls.
Ms. Clarke noted that the fourth item on the priority project would
be to cover an outdoor walkway at the McLaughlin Youth Center.
Other projects would include replacing building water system pipes,
exterior painting, outside siding replacement, and interior wall
repairs. The pictures are presented in order to reflect the
severity of the needs.
Pioneer Homes Deferred Maintenance, Renovation, Repair and
Equipment
$2,000,000 General Funds
Reference No.: 37934
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2009
This request is for deferred maintenance projects for Pioneer
Homes statewide, including immediate and critical renewal,
repair, replacement and equipment needs. The Department is
responsible for operating and maintaining the six Pioneer
Homes throughout the state. Locations include Ketchikan,
Sitka, Juneau, Anchorage, Palmer, and Fairbanks.
On-Going Project
Ms. Clarke reiterated that this request would allow for deferred
maintenance needs at the six Pioneer Homes in the State. Again,
there would be no request in the FY 07 capital budget for deferred
maintenance needs for these facilities. The back-up material
includes a prioritized listing of needs. A handout titled "FY2007
Deferred Maintenance Capital Request Pioneers' Homes -
Representative Photos" [copy on file] presents pictures of the
various Pioneer Home needs. The number one priority would be the
fire alarm and system replacement at the Fairbanks Pioneer Home.
The system is failing and replacement parts are difficult to
locate. The number four priority on the list is the Sitka Pioneer
Home, which is the oldest of the six Pioneer Homes. Heating valves
are failing and must be replaced. The number six item on the
priority list would be the lighting upgrades for the Anchorage
Pioneer Home. This is a large request. The ballasts are failing and
the associated smells and drips are creating health hazards. Other
projects would include duct cleaning at the Ketchikan Pioneer Home;
ceiling replacements at the Ketchikan Pioneer Home; and 26 bathroom
upgrades at the Fairbanks Pioneer Home. These projects are
important in order to address safety concerns, equipment failures,
senior citizen accessibility needs, or to meet building codes.
10:39:30 AM
Priority 14: Anchorage Pioneer Home Glass Replacement
(411,250)
Most of the exterior glazing panels of the original building
have lost their seal. There is now moisture in between the
panes and causes the windows to fogged up. Moisture in the
panes often incurs mold growth, which can affect indoor air
quality. This project will replace panels and weather
stripping on all exterior windows.
Ms. Clarke pointed out that the seals are failing in all of the
windows in the facility. Moisture and mold are being experienced as
a result. This is dangerous in a 24-hour senior citizen facility.
The panels must be replaced and weather stripping would be required
on all the exterior windows.
Senator Stedman stated that were this issue the result of defective
windows, a manufacturer's commercial guarantee might apply to this
project.
Ms. Clarke voiced that this would be further investigated.
10:40:19 AM
Senator Bunde appreciated having the projects listed by priority.
Continuing, he questioned the reason that the Anchorage Pioneer
Home Exterior Planter Repairs for $329,000 was ranked higher than
the Anchorage Pioneer Home Reseal Highlights request for $32,900.
Ms. Clarke replied that further information in this regard would be
provided. It could be that the planters are located on the roof,
and, as a consequence, might be creating further problems.
10:41:22 AM
Safety and Surveillance for Pioneer Homes, Juvenile Detention
Facilities, and Public Health Facilities
$898,300
$ 33,000 Fed Recpts
$150,000 G/F Match
$715,300 Gen Fund
Reference No.: AMD41456
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 03/15/2006 - 06/30/2009
Project provides for critical security and surveillance
upgrades to Health and Social Services facilities statewide.
State Match Required
One-Time Project
Amendment
Ms. Clarke informed the Committee that there is growing concern
about the safety of residents and visitors at the Pioneer Homes.
For example, cars have been broken into. Therefore, the Department
has, for the first time, determined that such things as
surveillance cameras should be installed at the Anchorage, Palmer
and Ketchikan Pioneer Homes in order to ensure a safe environment.
Ms. Clarke continued that this request has been amended to correct
the inadvertent omission of some of the juvenile justice center
projects. The projects that would be advanced by this request would
include such things as installing a security fence at the Kenai
Peninsula Youth Facility. No fence currently exists at that
facility and issues involving facility residents are occurring.
Other projects would include the installation of a detention camera
near the entrance of the McLaughlin Youth Center as well as
electronic locks, finger print scanners, and other security
cameras. Security cameras would also be installed at the Fairbanks
and Mat-Su Juvenile Centers. A security fence would also be
installed at Mat-Su. Security enhancements would also be
implemented at the Johnson Youth Center.
Ms. Clarke stated that security projects would also be required at
the Division of Vital Statistics to insure that such things as
birth records are secure. These upgrades would be required in order
to comply with federal Homeland Security regulations. Security and
confidentially concerns would also be addressed at the Fairbanks
Health Center.
Ketchikan Pioneer Home Roof Replacement
$532,000 Gen Fund
Reference No.: 41369
Category: Health/Human Services
Location: Ketchikan
Election District: Ketchikan
Estimated Project Dates: 03/15/2006 - 06/30/2009
The Ketchikan Pioneer Home was built in 1981. The original
roof is failing in numerous areas and needs to be replaced. A
roofing consultant was hired to investigate and analyze
options for repairing the existing leaks. Based on age,
condition, and the labor that would be required to repair the
areas that are leaking, the consultant's recommendation is to
replace the roof with a new single-ply membrane system.
Replacement of the roof would involve replacing the existing
membrane with a more durable membrane and a smooth paver
surface. The greenhouse, which is on the roof, would also need
to be replaced with a new polycarbonate panel design. Funds
would be used for construction and management of the project.
Phased-Underway
Ms. Clarke referred the Committee to a Department handout titled
"SB 233 Ketchikan Pioneer Home Roof Replacement" [copy on file]
that provides pictures of the needs. A visitor to the facility
would observe there being catch-buckets scattered around the
facility due to the roof leaks. This issue must be addressed. The
fact that there is a greenhouse on the roof of the facility has
increased the cost of the project. The pictures reflect eroded
siding, fasteners that are failing, and the leaks from the
greenhouse. The project is extensive.
10:45:35 AM
Senator Stedman stated that the State would benefit by a decision
"not to hire Arizona architects" to design buildings in
rainforests. Designing buildings with atriums and placing
greenhouses on flat roofs is impractical in this climate.
Fairbanks Youth Facility Building Improvements
$500,000 Gen Fund
Reference No.: 41339
Category: Health/Human Services
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 03/15/2006 - 06/30/2009
This request would provide for the reconfiguration of the
Fairbanks Youth Facility to allow for maximum use of the
existing area. The reconfiguration would allow for more
useable space without increasing the square footage of the
facility.
Phased-New Project
Ms. Clarke stated that this request would change the configuration
of some portions of the interior of the Fairbanks Youth Facility,
thereby making it a more efficient facility. Approximately one-half
of a multi-purpose room would be reconfigured to allow for
additional storage space with a stairway and additional office
space.
AT EASE 10:46:44 AM / 10:46:54 AM
Co-Chair Green noted that the remainder of Department requests
would be addressed at the subsequent Committee meeting [NOTE: The
overviews of the additional projects included in this bill were
provided3 at the February 9, 2006 Committee meeting.]
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