Legislature(2011 - 2012)BARNES 124

03/22/2012 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 362 WATER AND SEWER TASK FORCE TELECONFERENCED
Moved CSHB 362(CRA) Out of Committee
*+ HB 364 TAX CRED: CONTR. TO HOMELESS SHELT/DETOX TELECONFERENCED
Heard & Held
               HB 362-WATER AND SEWER TASK FORCE                                                                            
                                                                                                                                
8:05:22 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ announced  that the first order of  business would be                                                               
HOUSE  BILL NO.  362, "An  Act relating  to an  Alaska Water  and                                                               
Sewer Task Force; and providing for an effective date."                                                                         
                                                                                                                                
8:05:55 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ,  upon determining no  one wished to  testify, closed                                                               
public testimony.                                                                                                               
                                                                                                                                
8:06:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to  adopt Amendment 1,  labeled 27-                                                               
LS1423\A.1, Bullard, 3/20/12, which read:                                                                                       
                                                                                                                                
     Page 3, following line 13:                                                                                                 
     Insert a new paragraph to read:                                                                                            
               "(6)  investigate and recommend strategies                                                                       
     to protect public investments in  rural water and sewer                                                                    
     systems and  promote the long-term operational  life of                                                                    
     rural  water  and sewer  systems  by  ensuring, to  the                                                                    
     greatest  extent  possible,  that the  systems  can  be                                                                    
     maintained   by   local   personnel  and   with   local                                                                    
     resources;"                                                                                                                
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
8:06:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER explained that  he is offering Amendment 1                                                               
to punctuate his desire that  any investment the state makes into                                                               
water and sewer  infrastructure in rural Alaska  is designed with                                                               
the focus on maintainability and sustainability.                                                                                
                                                                                                                                
8:07:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE AUSTERMAN said that  he didn't object to Amendment                                                               
1 as  it's good policy  to ensure maintainability.   However, the                                                               
same  type of  criteria isn't  in place  when the  state provides                                                               
funding to cities and boroughs.                                                                                                 
                                                                                                                                
REPRESENTATIVE SADDLER  acknowledged that's  the case,  and added                                                               
that perhaps  such criteria  should be in  place [when  the state                                                               
provides  funding  to cities  and  boroughs].   He  related  that                                                               
Amendment 1  addresses concerns he  has heard regarding  the lack                                                               
of  training   and  relevant  skills,  particularly   in  smaller                                                               
villages.                                                                                                                       
                                                                                                                                
8:08:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DICK  said  he  didn't  believe  Amendment  1  is                                                               
inappropriate; rather it  calls attention to some  real needs and                                                               
doesn't mandate anything.                                                                                                       
                                                                                                                                
8:08:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  related that a constituent  had expressed                                                               
concern that in  rural Alaska water and sewer  projects for local                                                               
government, state government, and  school districts are sometimes                                                               
done  separately.    Therefore,  the  constituent  had  suggested                                                               
improvements to achieve  a bigger bang for the  buck, which seems                                                               
to parallel Amendment 1.                                                                                                        
                                                                                                                                
8:09:47 AM                                                                                                                    
                                                                                                                                
PAUL   LABOLLE,  Staff,   Representative  Foster,   Alaska  State                                                               
Legislature, specified that the language  on page 3, lines 12-13,                                                               
attempt  to  address  Representative   Gardner's  concern.    The                                                               
language  would also  seem  to  address Representative  Saddler's                                                               
concern.   He told the committee  that the sponsor of  HB 262 and                                                               
the sponsor of its companion  legislation agreed that Amendment 1                                                               
was good  and amplified the need  to address things locally.   In                                                               
order   to  address   Representative  Austerman's   concern,  the                                                               
committee could  make an amendment  to Amendment 1 such  that the                                                               
term "possible" is changed to "practical".                                                                                      
                                                                                                                                
8:10:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  moved to adopt an  amendment to Amendment                                                               
1, such  that the term  "possible" in the new  paragraph proposed                                                               
by  Amendment  1 is  changed  to  "practical".   There  being  no                                                               
objection, the amendment to Amendment 1 was adopted.                                                                            
                                                                                                                                
8:11:18 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ announced that before  the committee is now Amendment                                                               
1,  as  amended.    Upon  determining  there  was  no  objection,                                                               
Amendment 1, as amended, was adopted.                                                                                           
                                                                                                                                
8:11:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER pointed  out that  the sponsor  statement                                                               
says currently there  are 6,000 homes without water  or sewer and                                                               
that the  $51.5 million in  the state's budget for  village water                                                               
and sewer  projects is 8 percent  of the known need.   Therefore,                                                               
she calculated  that $643  million would  be required  to address                                                               
the entire known need, which would mean $107,000 per household.                                                                 
                                                                                                                                
8:12:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER related his  understanding that nearly $300                                                               
million  was  for 6,000  homes  to  be connected  for  first-time                                                               
service and almost  $400 million was for  upgrades and expansions                                                               
for aging infrastructure.   Therefore, it would  impact many more                                                               
than 6,000 homes.                                                                                                               
                                                                                                                                
MR.  LABOLLE, referring  to  an email  from  Bill Griffith  dated                                                               
November   10,   2011,   agreed  with   Representative   Foster's                                                               
clarification.  He  noted that the water and sewer  systems go to                                                               
private homes, public buildings, and businesses.                                                                                
                                                                                                                                
8:13:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FOSTER  informed the  committee that  $292 million                                                               
is necessary to  address first-service needs and  $410 million is                                                               
the total cost to address expansion, upgrade, and replacement.                                                                  
                                                                                                                                
8:14:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  moved to report  HB 362, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
8:15:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA   said  that  although  HB   362  and  the                                                               
amendment are  wonderful, there are  holes in the  legislation in                                                               
regard  to the  tribal health  work.   There needs  to be  a real                                                               
understanding  by  the  Alaska Native  Tribal  Health  Consortium                                                               
(ANTHC).   She informed the  committee that two years  ago, there                                                               
was review  of the cost of  fuel to run water  and sewer systems.                                                               
She then  expressed concern  about the timeline  and the  lack of                                                               
involvement of the tribal health persons.                                                                                       
                                                                                                                                
MR. LABOLLE  stated that discussions  with the sponsor of  HB 362                                                               
and  the  sponsor  of the  companion  legislation  have  included                                                               
ANTHC.   The ANTHC  has expressed interest  in membership  on the                                                               
board, but the  sponsor of the Senate legislation  decided to use                                                               
them as  technical witnesses  rather than  members of  the board.                                                               
The intention was  to utilize ANTHC as a resource  outside of the                                                               
decision-making process of  the board such that there  would be a                                                               
separate  unit   analyzing  the   work  being  done   by  others.                                                               
Therefore, there  would be  no vested  interest within  the board                                                               
with  either  Village Safe  Water  or  ANTHC.   He  reminded  the                                                               
committee that  ANTHC shares responsibility  for water  and sewer                                                               
projects  with the  Division  of Village  Safe  Water within  the                                                               
Department of Environmental Conservation.                                                                                       
                                                                                                                                
8:17:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA provided  the committee with a  copy of the                                                               
"Energy  for  Sustainable Alaska"  by  Commonwealth  North.   She                                                               
emphasized  that  key to  addressing  this  problem is  including                                                               
sustainability.    Referring  to   research  she  requested  from                                                               
Legislative  Research   in  2009,  she  expressed   the  need  to                                                               
acknowledge  the recommendations  of past  groups that  have been                                                               
ignored.                                                                                                                        
                                                                                                                                
MR. LABOLLE opined that Representative  Cissna is speaking to the                                                               
intent of  HB 362 itself.   He acknowledged that there  have been                                                               
various efforts prior to this  legislation.  To his knowledge the                                                               
difference with  the proposal  in HB  362 is  that it  proposes a                                                               
legislative task  force and  thus the members  of the  task force                                                               
are  also  in  charge  of  the   budget.    In  other  words,  an                                                               
administrative  task  force doesn't  have  the  cache within  the                                                               
appropriating body that a legislative  task force would have.  In                                                               
terms of the cost of fuel/heat,  he confirmed those are issues to                                                               
which  the task  force will  be seeking  answers.   For instance,                                                               
waste heat has  been a major approach used to  reduce the cost of                                                               
keeping  the temperature  of the  water and  sewer lines  [at the                                                               
appropriate level].   Moreover,  Mr. LaBolle mentioned  that just                                                               
last  week  he   had  a  discussion  with   ANTHC  regarding  the                                                               
possibility of  using district heat in  conjunction with existing                                                               
above-ground utility  corridors in order to  achieve economies of                                                               
scale for  the three basic  utilities.  The proposed  task force,                                                               
he  opined,  is  seeking  to review  the  concerns  expressed  by                                                               
Representative Cissna.                                                                                                          
                                                                                                                                
8:20:34 AM                                                                                                                    
                                                                                                                                
There being no  objection, HB 362, as amended,  was reported from                                                               
the House Community and Regional Affairs Standing Committee.                                                                    

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