Legislature(1993 - 1994)
01/25/1994 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 345 - PRESERVATION OF PUBLIC FACILITIES Number 584 REPRESENTATIVE JEANNETTE JAMES, prime sponsor of HB 345, read from the sponsor statement to the committee (attachment on file). She stated the intent of this bill is to put a priority on maintenance by putting a line item in the budget, so that it is identified as the formula that is required to maintain the buildings in order to protect the state's capital assets. Number 637 JERRY NEWBERT, UNIVERSITY ARCHITECT AND ASSISTANT VICE PRESIDENT FOR FACILITIES in the Statewide System Office of the University of Alaska, spoke in support of HB 345. He informed the committee of the maintenance needed at the University and said that more operating funds were needed. In addition, he said that the University has a sizable backlog of deferred maintenance, which is the result of underfunding the operating budget categories. He said that projects are often underfunded. MR. NEWBERT went on to say that the University is not predicting to fund any new positions as a result of this bill, because they would be contracting with the public sector. Number 689 REPRESENTATIVE VEZEY asked if we a trying to force the legislature to appropriate money, when in the past there has been an absence of commitment to fund maintenance of the physical plant in the state of Alaska. TAPE 94-5, SIDE B Number 001 MR. NEWBERT responded to Representative Vezey by saying that this bill points the emphasis in the right direction. The correct emphasis should be on maintenance of what we have and not in the expansion mode. Mr. Newbert introduced KATHLEEN SHEDLER, director of the University of Alaska Fairbanks Office of Planning and Project Services. He added that her department has procurement authority to do the planning and construction for projects at the UAF. Number 043 REPRESENTATIVE DAVIS asked for questions from the committee. Number 049 REPRESENTATIVE BETTYE DAVIS asked if the Department of Transportation was going to testify. Number 060 REPRESENTATIVE KOTT referenced page 2, line 16..." the legislature must appropriate the necessary funds for new construction or for renovation or remodeling of public facilities." He said this was vague and asked if this was referencing the requirements established by Department of Transportation, based on their visits to these public facilities on an annual basis. Number 090 REPRESENTATIVE JAMES responded, the funding would be based on a formula the department has for maintenance of buildings based on type, age and cost of the building. The formula should provide a projection of how much is needed for the facilities, and it is the intention of this legislation to fully fund before building new facilities, and that when new legislation is on the table the same formula should be applied. She added that it should be understood that formula monies for the cost of maintaining a new facility will be coming from the general operating funds in future years to cover maintenance of that building. Number 109 REPRESENTATIVE KOTT commented and questioned the sponsor if this legislation would commit future legislatures to this formula. REPRESENTATIVE JAMES responded in the affirmative. Number 120 REPRESENTATIVE JAMES further pointed out there are other options if the state needs a capitol building. She went on to say that if the state does not want to commit to the funding of the operating and maintenance cost of a facility, there is always the option of leasing a building. REPRESENTATIVE VEZEY asked for questions. Being none he introduced ROD WILSON, ARCHITECT, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, in the headquarters office in Juneau. ROD WILSON discussed the perspectives of the Department of Transportation. He mentioned attending a committee meeting of the Alaska State Facility Administrators. He said this organization of which he is a member, did not know how to write a budget in order to get the adequate funding for operating, renewal and replacement. As a result, they received inadequate funding. He went on to say that the lack of funding forced them to take funds from the maintenance end of the budget in order to keep a facility operational. MR. WILSON said another problem area was that typically the money is allocated into department budgets. When this happens, often the funds are again taken from the maintenance funds for program operations. MR. WILSON reiterated the importance of requesting adequate funding for facilities by incorporating long-term maintenance costs in the request. Number 200 MR. WILSON said that the Department of Transportation and Public Facilities supports HB 345 for the most part. He suggested the Department of Transportation be given more authority over the disbursement of funds outlined within HB 345, so that the funds can be redirected more appropriately toward facility request as opposed to the operational request. The department further requested the renewal and replacement funds segment be put into a capital expenditure as opposed to an operational expenditure, so they have the ability to carry funds over. In conclusion, MR. WILSON voiced a concern of the department regarding the provision in the bill that mandates the completion of repairs on current facilities before building any new facilities. He went on to say that the responsibility and the final decision is at the legislative level. Number 270 REPRESENTATIVE VEZEY questioned the productiveness and substantive ability of HB 345. Number 286 MR. WILSON said it would be productive from the standpoint of providing direction as to the intention of how the money is spent, and providing information to the legislature about how far the state is falling behind on the deferred maintenance curve. He pointed out at present, the state is approximately over three million dollars in arrears in deferred maintenance. Number 305 REPRESENTATIVE VEZEY asked if the bill addresses the rural schools and village safe water projects, many of which have not been constructed; many of which have and are no longer functioning. MR. WILSON said he could not comment on the public schools, but went on to say the fiscal note and position paper does not address public schools or those other facilities. MR. WILSON said the backlog that the department is talking about is strictly state-owned, state-operated facilities. Number 320 CHAIRMAN VEZEY stated that the figure in the fiscal note was only about half or less of total cost. Number 321 MR. WILSON agreed. He said he did not know what the Department of Education turned in for a fiscal note. Number 322 CHAIRMAN VEZEY asked Representative James if there was a fiscal note from the Department of Education. Number 323 REPRESENTATIVE JAMES said no. She went on to comment on designating funds saying that it is the intent of the formula funding to give the legislature tools to make a decision and to give the legislature, the people who work for the state of Alaska, and the general public the information that is required to fund the maintenance of capital facilities. Number 348 REPRESENTATIVE KOTT asked how many public facilities and buildings are being addressed. MR. WILSON said there were approximately fifteen hundred to seventeen hundred. Number 355 REPRESENTATIVE KOTT asked if he based that on his testimony from a previous meeting of 1.5 percent? Number 357 MR. WILSON pointed out the legislature had appropriated some funds in 1991 for maintenance and operations of facilities. REPRESENTATIVE JAMES said the problem she saw with the fiscal note was that in fiscal 1995, there is a sixty one million dollar request, but also that sixty one million dollars is going to show up in the budget request, although it will be a lesser amount because it is not fully funded in the budget, thereby, double reporting the money. She went on to say that the provision of a formula funding outlined in HB 345 would clarify the allocation of funds. Number 411 REPRESENTATIVE G. DAVIS asked if there was a cost benefit ratio; leasing over owning. Number 425 MR. WILSON speculated that it was an equal amount of leased space to owned space. DUGAN PETTY from General Services Division, Department of Administration, agreed with Mr. Wilson's comments. Number 435 REPRESENTATIVE KOTT referenced page 2 line 21 "... The department shall from time to time, examine all existing public buildings...." and asked Mr. Wilson to describe what "time to time" means. Number 441 MR. WILSON said the Department of Transportation has very few facility planners and usually see those buildings approximately once every ten years. The last comprehensive update and analysis of public facilities was carried out in the late 1970's. He went on to say that it was approximately a five million dollar capital project just to gather that information. The department has recently gone out and inventoried about 550 state-owned and leased facilities with regard to ADA compliance. This particular task has taken about two years to assemble and probably three hundred thousand to five hundred thousand dollars of employee's time and expense into that project. Number 458 CHAIRMAN VEZEY asked if there were any additional questions or comments. He asked the committee to review the packet on the bill and rescheduled HB 345 to be heard in two weeks. Number 485 CHAIRMAN VEZEY adjourned at 9:18 a.m.
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