04/18/1995 01:03 PM House CRA

 HB 294 - BIDDING FOR VILLAGE WATER/SEWER FACILITY                         
                                                                               
 Number 152                                                                    
                                                                               
 CO-CHAIR IVAN said the next bill would be HB 294.  He recognized              
 Representative Vezey, the bill sponsor.                                       
                                                                               
 REPRESENTATIVE VEZEY, sponsor, stated that village safe water                 
 projects were a very important capital improvement project that the           
 state has been involved in for a number of years.  It is estimated            
 there is a $2.5 billion backlog on water/sewer programs in Alaska.            
 The current system that is used does not follow the state                     
 procurement practices.  He felt there was overwhelming evidence               
 that the state could save a substantial amount of money by using              
 competitive bidding.                                                          
                                                                               
 Number 176                                                                    
                                                                               
 CO-CHAIR IVAN indicated that those on teleconference would be                 
 testifying.                                                                   
                                                                               
 Number 178                                                                    
                                                                               
 CINDY THOMAS, Alaska Native Health Board, was concerned that there            
 were critical legal and statutory issues in the legislation.  She             
 encourage the committee not to pass the legislation as written.               
 She indicated she was the coordinator of the Alaska Sanitation                
 Coalition and was speaking on behalf of them.  One of her concerns            
 was that this legislation would remove some of the ability of the             
 community to make local decisions.  Competitive bidding might                 
 result in the loss of local hire and local training.  Rural Alaska            
 has severe economic concerns, with a lack of cash economy, and                
 worried that this might remove the ability for the community to               
 control these programs.  Many sanitation projects blend federal and           
 state money which had different requirements and this legislation             
 would complicate that further.  She also submitted a resolution by            
 AFN urging repeal of any laws that prohibit local hire.                       
                                                                               
 Number 249                                                                    
                                                                               
 BOB GILMAN, a general contractor representing the Associated                  
 General Contractors of Alaska, said currently Public Health Service           
 (PHS) grants were supporting up to $8 million in projects.  He was            
 a proponent of the competitive bid process.  Large projects have              
 been administered by little villages with no experience at contract           
 administration and hiring consulting engineers at the direction of            
 the PHS.  The cost of the projects are increased as a result.                 
 There is no accountability or incentive for efficiency in labor,              
 methods or use of equipment.  He felt the Associated General                  
 Contractors had a good record for hiring locally.  He supported the           
 competitive bid process.                                                      
                                                                               
 Number 308                                                                    
                                                                               
 LAMAR COTTEN, Deputy Commissioner, Department of Community and                
 Regional Affairs (DCRA), stated the department opposed the bill.              
 He felt there were benefits to local hire and timing the projects             
 to community need.  The projects also developed locals working on             
 the projects to become public works departments within the                    
 community to care for the projects and developed the community                
 ownership idea.  He reiterated that the department did not support            
 the legislation and runs counter to development in small                      
 communities.                                                                  
                                                                               
 Number 358                                                                    
                                                                               
 JIM COLVER, President of Mountain Construction and Engineering,               
 indicated he had done rural Alaska projects and seen waste within             
 the communities.  It is a jobs issue.  He felt that framework                 
 needed to be used to increase the functionability of good design              
 and good accountability by consultants.  He recommended revamping             
 the entire village water and sewer structure.  Competitive bidding            
 was an important component.  New equipment is not needed for every            
 job.  He suggested a certain percentage of the contract to                    
 disadvantage businesses, a number of local hires required and                 
 trained, if necessary.  Local hire and reducing costs can be                  
 incorporated.                                                                 
                                                                               
 Number 404                                                                    
                                                                               
 JULES WRIGHT, Tanana Chiefs Conference in Fairbanks, expressed his            
 opposition to the bill.  It's taking away local control.  Local               
 hire is very important.  He was concerned about a conflict of                 
 interest with the sponsor of the legislation.  He supported making            
 the villages responsible to their projects.                                   
                                                                               
 Number 449                                                                    
                                                                               
 CO-CHAIR IVAN concluded the teleconference testimony and indicated            
 this bill would be held until April 20, along with HB 262 and HB
.