Legislature(1997 - 1998)
03/24/1998 06:00 PM 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
HOUSE BILL NO. 53
"An Act relating to the authority of the Department of
Corrections to contract for facilities for the
confinement and care of prisoners, and annulling a
regulation of the Department of Corrections that limits
the purposes for which an agreement with a private
agency may be entered into; authorizing an agreement by
which the Department of Corrections may, for the
benefit of the state, enter into one lease of, or
similar agreement to use, space within a correctional
facility that is operated by a private contractor, and
setting conditions on the operation of the correctional
facility affected by the lease or use agreement; and
giving notice of and approving a lease-purchase
agreement or similar use-purchase agreement for the
design, construction, and operation of a correctional
facility, and setting conditions and limitations on the
facility's design, construction, and operation."
CS FOR HOUSE BILL NO. 53(RLS)(title am)
"An Act expressing legislative intent without the force
of law concerning correctional facility space and the
Cleary v. Smith case; adding, as a general power of
municipalities, the power to provide for, and enter
into agreements concerning the confinement and care of
prisoners; relating to authorizing the Department of
Corrections to enter into agreements to lease
facilities for the confinement and care of prisoners
with the City of Delta Junction and with the
Municipality of Anchorage; and providing for an
effective date."
Margaret Pugh, Commissioner, Department of Corrections was
invited to join the committee. The Department feels that
what is contemplated in HB 53 and the direction the
Legislature wants them to proceed is compatible with the
principals relied upon by them to make decisions regarding
the placement of a prisoner in jail. She said the needs in
Bethel, North Slope, Valdez, Fairbanks and Juneau should
also be considered. She noted her authorization to enter
into an agreement with the City of Delta Junction for the
operation of a prison at Fort Greely and said it made sense
and made for good government. It was wanted and expected
that the State of Alaska be doing business with another
government, and in this case, the City of Delta Junction
rather than a private party for long-term property lease.
She said she assumed the Legislature shared her opinion that
the operation of the prison would be put out to a fair,
competitive bid. She was satisfied that the bill was
permissive and gave her the authority to contract for the
operation of the prison at Fort Greely. She knows that this
is not a blank check and will have some analysis done to
ensure that $70 which is the stated price in the letter of
intent or whatever number is the right price. She will
bring the information gathered back to the Legislature.
Senator Adams referred to page 3, lines 6 and 7 wherein the
Department of Corrections may enter into an agreement with
Delta Junction. Was it up to the City of Delta Junction to
work with any correction facility? Did the City of Delta
Junction have any experience in running a prison?
Commissioner Pugh said not to her knowledge.
Senator Adams asked when did they start paying on the eight
hundred prison beds? Was this to start after completion of
it being turned into a correctional compound?
Margo Knuth, Assistant Attorney General, Department of Law
was invited to join the committee. She said the payments
would start when the building was completed and there were
eight hundred inmates at the institution.
In response to a query from Senator Donley, Commissioner
Pugh said it was her assumption that she would report any
findings back to the committee.
Ms. Knuth said that since the bill was permissive, the
Legislature was saying to the department to investigate the
conversion of Fort Greely to a prison and if it makes sense,
go forth and do that. The Legislature has given sufficient
authorization in the legislation without more. If, however,
the Commissioner were to determine that an eight-hundred bed
facility could be established somewhere else within the
State for only $50/day the Legislature would want to know
that information.
Senator Sharp referred to Spring Creek and asked if this was
authorized by the Legislature and then they went forward.
Senator Torgerson said it was done under a lease/purchase
agreement.
Col. Dave Anderson testified via teleconference from Delta
Junction. He said he was prepared to respond to questions
posed by Senator Adams at the last committee hearing.
Senator Adams asked if there was any other reuse for Fort
Greely. He also asked what would happen if the necessary
paperwork was not signed by the Governor to reuse Fort
Greely as a prison.
Col. Anderson said that if the Governor elected to not
recognize the local reuse authority then he had the option
of designating some other State agency as an implementing
LRA. Otherwise the Federal government would dispose of Fort
Greely. In that case, there would be no benefit to Delta
Junction economically. Furthermore, Federal and State
agencies already had the opportunity to attain the property.
In response to a query from Senator Sharp he felt the Mayor
of Delta Junction could better respond. He could say,
however, that the Delta/Greely Community Coalition is the
agency designated to plan for the reuse and based on the
Governor's approval would be the implementing agency. The
coalition would acquire the property and then disperse or
sell it. Their intent is to bid the property to a private
contractor who would in turn then contract with the City.
Co-chair Pearce asked the Mayor of Delta Junction be called
and the moderator at the LIO in Delta said she would take
care of that. She further requested Col. Anderson remain on
line. She alluded to a letter sent out by her office with
specific questions for Mr. Ray Woodruff. She noted
responses from Mr. Woodruff; John Levine & Company and J.
Frank Prewitt. Also attached was data from the Commissioner
of Corrections.
The following individuals testified via teleconference from
DELTA JUNCTION: JIM CARLSTROM; MIKE MCCOWAN; DAVID WRIGHT;
PATRICK DALTON, opposed HB 53; MARLIN STARNES; RAY WOODRUFF,
formed coalition at the request of Governor Knowles; and
BILL JOHSON, testified against the prison in Delta. Due to
poor teleconference quality the testimony could not be
transcribed.
Senator Adams said that at the last meeting it was said that
sixty-two percent of the voters voted to have the prison.
Now, Mr. Johnson was saying that seven hundred signatures
were collected opposing that. Senator Adams said he thought
there were about nine hundred registered voters in Delta
Junction. He further asked if there was supposed to have
been a second vote? Mr. Johnson said he didn't know how
many registered voters there were. He said that he did not
get a chance to vote in this election. He said notice was
given from three days to two weeks ahead of time regarding
the matter. This did not meet the criteria for any sort of
election under State law. There should have been at least
thirty days notice. It was decided by the coalition in mid-
February not to bring the matter up for another vote.
(Tape #94, Side A switched to Side B at 6:45 p.m.)
Glen Wright, Mayor of Delta Junction advised that he was now
available via teleconference from Delta Junction. He said
he could stay on line, pending the wishes of the Co-chairman
but he had a council meeting beginning in about fifteen
minutes. Briefly commenting on the election he did not
understand how there could be seven hundred signatures
opposing the prison. He said the election had been
conducted fairly. The final vote count was six hundred
forty "yes" votes and three hundred ninety-six "no" votes.
These were registered voters or individuals that were
allowed to register at the time of voting.
Senator Sharp asked what part the City of Delta Junction
would play in the whole process?
Mayor Wright said according to what was printed in the bill
the City would only be a medium. The Governor must first
sign the bill before anything could happen. Senator Sharp
further asked if the City would be the vehicle whereby the
property passes from the State or the military to the
private party and Mayor Wright concurred. He said they were
not the reuse authority.
Senator Torgerson asked the Mayor if residents of outlying
areas as well as city residents were allowed to vote? Mayor
Wright responded "yes". Senator Torgerson asked if there
was a tally of city residents. Mayor Wright said the City
of Delta Junction had a total of two hundred eighteen
ballots. He did not have the voting breakdown. Senator
Torgerson asked if the bill passed where another vote be
conducted. Mayor Wright did not see any reason to hold
another vote if the bill passed.
Senator Torgerson asked Co-chair Pearce if the seven hundred
signature petition was part of the committee file? Co-chair
Pearce said that Representative Mulder indicated to her that
they did not have the signature petition. However, an
unidentified individual from the audience said he had the
petition in hand with over seven hundred signatures.
Co-chair Pearce said there being no further questions for
the Mayor he could be excused to attend his City council
meeting. She then continued testimony via teleconference.
CHARLES ABBOT via teleconference from DELTA JUNCTION said he
felt the Delta Coalition ran the election. They did the
advertising, printed the ballots, and had the voting run by
their office. He said that Mr. Ray Woodruff refused to make
the registered voter list public. Mr. Abbott said he
questioned the registered voter list and the vote.
LIO moderator advised that Mr. Dan Beck had to leave the
teleconference hearing.
KIM PURUCKER via teleconference from DELTA JUNCTION
testified that he was a member of the election board. He
did work the election and felt that Mr. Abbott's comments
were not valid. He further stated that the coalition did
not have the key to the ballot box, but rather the election
board did. Everything was run according to election
standards. He said he would also like to see the seven
hundred signature petition.
SUSAN KEMP via teleconference from DELTA JUNCTION testified
that she would also like to see the petition signatures
checked. She did support the concept of the prison. She
would like to see more of a competitive bid process in order
to give the community more control over what goes on. She
felt it would help to alleviate some of the valid concerns
the residents have.
SAM DIGHTON via teleconference from DELTA JUNCTION testified
in opposition to HB 53. He said the only reason the school
system was embracing the prison facility was because they
were worried about losing jobs. He said he was notified on
the thirteenth by a letter from the coalition regarding the
upcoming vote on the seventeenth, however he was unaware
that he could register to vote at that time. He felt many
people were left in the dark about the voting procedure.
NANCI RUTHSCHILD-KENNEDY via teleconference from DELTA
JUNCTION testified that most residents were told to vote
"yes" even if they weren't sure because they would get
another chance to vote later. Many individuals have changed
their mind now. She said that there were over thirty
individuals who were pressing to acquire the facility to use
for their own businesses.
BILL PUGH via teleconference from DELTA JUNCTION testified
that he did not support HB 53. He said he had been
listening to all the testimony and not one individual had
testified they were willing to work there. He said he
himself intended to work somewhere, but not at a prison that
was only going to pay menial wages. He said guards being
paid a menial wage would have to supplement their income by
going into the prison with their pockets full of one thing
and coming out with them full of another thing. He felt the
community had a bad enough problem with drugs and this was
only dividing them further. He also felt the voting
procedure was unfair because there was only four day notice
given. He told the committee that the coalition was
representing local businesses and not the residents of the
community.
ROY KENNEDY via teleconference from DELTA JUNCTION testified
that he opposed the bill and the election. He said at a
town meeting on the fifteenth, the coalition told the
residents that this was not a done deal and one could change
their mind.
DIANA GLOTFELTY via teleconference from DELTA JUNCTION
testified that she was in favor of the prison. There are no
jobs in Delta and she noted the prison would provide jobs
for her two daughters, allowing them to remain in Delta.
(Poor quality teleconference noted.)
WILBUR ST.JOHN via teleconference from DELTA JUNCTION urged
the committee to pass the bill.
HUGH DOOGAN via teleconference from FAIRBANKS referred also
to his written testimony sent to the committee. He reviewed
the cost of an eight hundred bed facility at $63/day and
said it would cost the State for twenty years about $366
million. He said a new prison could be built for less than
this and it would last more than twenty years. He said
Allvest's experience in operating a juvenile detention
center in Washington and half-way houses in Alaska was a far
cry from operating a prison.
GILBERT BOOTH via teleconference from FAIRBANKS said he had
a degree in justice and political science. He had done
studies on prisons run both by the State and private
industry. He felt the passage of HB 53 would greatly help
the economy in Delta Junction and that it was a step in the
right direction.
FRANK SMITH via teleconference from BARROW said he had
worked as an administrator of services contracts at the
Palmer Pre-trial facility. He said he was very concerned
about HB 53. The State was on extremely slippery slope with
this bill and felt that the residents of Delta Junction had
been sold a slap-dash proposal. He cautioned the
Legislature that once they made this twenty-year contract
they were going to be stuck with it.
BILL PARKER via teleconference from KENAI voiced his concern
about the wages of $16/hr at the prison in Delta saying this
was not an honest living wage. He said private prisons did
not work one hundred years ago and there is no evidence they
will work now. He noted they have high turnover, low
training and a high abuse of inmates.
RONALD WILSON via teleconference from NOME cautioned the
residents of Delta, saying working at a prison facility was
no just a job for anyone.
FRANK GOLD via teleconference from FAIRBANKS said the bill
was inappropriate to be going through on a fast track. He
suggested looking at two or three smaller prisons. He
opposed the bill as it was drafted. He advised the
committee that he had sent in written comments to Senator
Sharp. Senator Sharp said his correspondence would be
distributed to the committee.
WAYNE CARPENTER via teleconference from ANCHORAGE said he
was a general contractor from Delta Junction. He voiced
concern about the bidding process issue. He said it was
seemingly corrupt and unbelievably slanted towards Allvest.
(Tape #94, Side B switched to #95, Side A.)
He said the bill should be amended to state in section 4
that the Commissioner of Corrections must require agreement
with the City of Delta Junction and that the City of Delta
Junction procures a private third-party operator through a
process similar to the procedure established in Alaska
Statute 36.30, State Procurement Code.
LESLIE KIRK and RUSS BOWDRE were invited to join the
committee. Mr. Bowdre said they were from Delta Junction
and he was here to testify on behalf of many concerned
citizens from Delta Junction. He voiced concern about what
was taking place. He said he was in charge of the roads and
grounds section and heavy maintenance out at Fort Greely.
In reference to the number of registered voters he said
there were 910 registered voters. Approximately 396 "no"
votes and 514 "yes" votes. Approximately 218 voters were
actually from Delta Junction. Mr. Bowdre said he was
against the prison, along with many other concerned
citizens. They feel that if there has to be a prison it
should be a State prison and up for bid. He suggested the
Legislature really look at a prison in Delta Junction.
Another possibility would be to expand existing prisons
therefore incurring no new administrative costs.
Mr. Kirk introduced himself to the committee and said he was
Retired Commander of Fort Greely. He felt this whole
proposal was set up by a coalition consisting of the
business people of the City of Delta Junction. He was
concerned because the residents had been told they could
change their vote regarding the prison at a later time,
however, there was no second election. In referring to the
seven hundred signature petition against the prison he said
most people just want a legal vote by the residents of Delta
Junction on whether to have the prison or not.
Senator Adams asked Mr. Kirk and Mr. Bowdre if they had read
the coalition's agreement signed behind closed doors and
both gentlemen advised they had. Senator Adams asked when
would Allvest wholly own the prison. Mr. Bowdre said,
according to the agreement, the local reuse authority agrees
to immediately transfer title to the City of Delta Junction
and they agree to immediately transfer title over to
Allvest. It would go in five year increments for a specific
period of time.
Senator Adams asked if there was any other reuse besides a
prison for Fort Greely. Mr. Kirk said there had been no
response from any Federal or State agencies that had been
contacted regarding the reuse of Fort Greely. Mr. Bowdre
informed the committee that on the 14th of July 2001 BRAC
would die at Fort Greely and it would then go back to the
U.S. Army for reuse in any way they see fit. Therefore, if
the Governor did not sign the bill, regulations say that it
could be sold.
(Co-chair Pearce recessed the committee for five minutes.
She reconvened the meeting at approximately 8:07 p.m.)
Representative Eldon Mulder was invited to join the
committee. He said he did not mind differing opinions,
however it was important to apply the facts to the
situation. He corrected the record by referring to a memo
to House Finance Co-chairman Mark Hanley dated 27 February
1998. It stated that Fort Greely was $10/day less than
expanding the Palmer facility. Representative Mulder
further stated that he did not think it would actually cost
$70/day at Fort Greely.
Senator Adams asked if the cost would be approximately
$65/day per bed? Representative Mulder said the number had
been debated in House Finance for a considerable length of
time. The $70/day figure had been settled on because it
would give them an adequate level to provide some security
for the State, and at the same time could justify
incremental increase over Arizona. These would be in-State
jobs and the economy would be coming in-State, providing a
stable tax base for a local community.
In response to a request by Representative Mulder that he be
allowed to comment on any amendments presented on the bill,
Co-chair Pearce said the committee would be happy to
accommodate him.
ROSS KINNEY, Deputy Commissioner, Treasury Division,
Department of Revenue was invited to join the committee. He
believed that the State of Alaska could finance this project
much cheaper than any third-party or private vendor could.
He said by using certificates of participation, and
agreements like those used in Seward and throughout the
State, they would be in a position to finance this cheaper
and in the end have ownership of the facility. He said as
it was, Allvest would be able to refinance the facility and
garner the savings. He also added that they were in a
situation where the debt payment was a result of the lease
payment made by the State of Alaska to whomever. It would
be placed as collateral for payment of the debt and they
would be locked in to being ultimately responsible for the
retirement of the debt regardless of who the owner of the
facility was.
Senator Adams asked if Mr. Kinney had a proposed amendment
the committee might look at regarding his concerns. Mr.
Kinney said he did not have any specific language at hand,
but said it could be prepared in short order and provided
the committee.
Senator Sharp asked if Mr. Kinney's opinion would be the
same if the State were to finance the Anchorage jail.
Mr. Kinney said that if the State were to finance that
project they could also do that one cheaper and felt more
comfortable with a government to government relationship.
Senator Phillips asked Mr. Kinney if he were speaking in
opposition to the bill on behalf of the Administration.
Mr. Kinney said he had not taken any position on the bill
with exception to the finance aspects, as to whether either
should be done.
J. FRANK PREWITT was invited to join the committee. He said
the State of Alaska was currently purchasing correctional
services from the Corrections Corporation of America,
through a facility owned and operated by the Corrections
Corporation of America. The State was satisfied to purchase
these services in order to relieve the overcrowding
situation when they entered into contract with them about
three years ago and at the prices the CCA was able to
accommodate. He said this was an Alaska corporation who
after three years of impasse on how to address the question
of the Alaska prison crisis, took the initiative to go out
to Fort Greely, talk to the coalition to learn about the
base reutilization process, and who participated in a
Federal competitive procurement process. In order to do
this they had to assess whether or not the facility was
feasible to become a correctional facility and would be
cost-effective. He said the community, through an election
process, determined this was an acceptable reuse of the
facility. He said this was the "Allvest proposal" that was
before the community and not a generic proposal. He said
they were offering to the State of Alaska a solution that
would help the economic welfare of the City of Delta
Junction and will offer the State a competitively priced
solution for prison overcrowding.
Senator Adams asked about the competitive process and noted
that it would be difficult for other contractors to bid
since Allvest has the facilities. He asked if Allvest would
be willing to give another bidder a good deal on the
facilities. Mr. Prewitt said Allvest supported the
provision of HB 53 that required the City of Delta Junction
to enter into a procurement process for the purchase of the
operating services. But he further stated that the contract
with the Corrections Corporation of America was a sole
source contract entered into by the Department of
Corrections. There was no bidding process. He said it was
not uncommon for the State of Alaska to negotiate for unique
services. For instance, the State of Alaska negotiates for
lease space for offices and oil lease royalties. He noted
the State had been offered the opportunity to have Fort
Greely but they had not responded. The idea was developed
entirely by Allvest, an Alaska corporation. Two
corporations that have now shown an interest are both out of
State, hostile to an Alaska company, that is trying to do a
project in the best interest of the State.
Senator Adams said he did not believe the amendments were
hostile and that they were good for business. Mr. Prewitt
said Allvest was still willing to compete in the procurement
process.
REPRESENTATIVE MULDER rejoined the committee at this point.
Co-chair Pearce said if there was no other testimony to be
taken or questions by the committee they would now move to
amendments.
Senator Parnell MOVED amendment #1. Senator Adams OBJECTED
and then REMOVED his objection. WITHOUT OBJECTION amendment
Senator Sharp MOVED amendment #2. Senator Adams OBJECTED to
page 3, line 14. Senator Sharp said the first part of the
amendment was a technical change of "may" to "shall" and the
rest of the amendment dealt with the Anchorage jail. He
said by loading in the specific figures this would provide a
safeguard. Senator Adams said the question should be
divided. He said the first section dealt with Delta
Junction prison and the remaining sections dealt with
Anchorage. This was two different subjects. Senator Sharp
had no objection to the question being divided. WITHOUT
OBJECTION Co-chair Pearce noted that amendment 2(A) would be
page 3, line 14 and amendment 2(B) would be the remaining
three sections of the amendment.
Representative Mulder said the issue had been discussed in
House Finance. They wanted to afford Delta Junction the
same opportunities.
(Tape #95, Side B switched to #96, Side A.)
Senator Donley OBJECTED to amendment #2(A) and then WITHDREW
his objection. WITHOUT OBJECTION amendment #2(A) was
ADOPTED.
There followed miscellaneous conversation between committee
members regarding amendment #2(B). Senator Donley said the
amendment could be dealt with conceptually. Therefore,
amendment #2(B) was amended as follows: Page 4, line 6 the
amount of "$125,000" was deleted and the amount of
"$146,000" was inserted and on Page 4, line 7 the amount of
"$12,000" was deleted and the amount of $16,700" was
inserted. Senator Donley WITHDREW his objection. WITHOUT
OBJECTION amendment #2(B) was ADOPTED.
Senator Sharp MOVED conceptually amended amendment #2 and
WITHOUT OBJECTION it was ADOPTED.
Senator Phillips MOVED amendment #3. He explained to the
committee that the amendment had been amended by hand to
reflect the correct page and line numbers. Senator Sharp
OBJECTED. By a roll call vote of four yeas (Pearce, Donley,
Phillips, Parnell) and three nays (Sharp, Torgerson, Adams)
amendment #3 was ADOPTED.
Senator Torgerson MOVED amendment #4. As a technical
correction he noted that only lines four through eight of
the amendment were valid. Senator Donley OBJECTED.
Representative Mulder said he also opposed the amendment.
Commissioner Pugh rejoined the committee and in response to
a question from Senator Phillips explained the bid process.
MARJORIE VANDOR, Assistant Attorney General, Civil Division,
Department of Law was invited to join the committee. She
explained the procurement code. There followed
miscellaneous discussion between Senators Torgerson,
Phillips and Parnell.
Senator Donley maintained his OBJECTION. By a roll call
vote of three yeas (Torgerson, Phillips, Adams) and four
nays (Pearce, Sharp, Parnell, Donley) amendment #4 FAILED.
Senator Torgerson MOVED amendment #5. There was OBJECTION.
Representative Mulder also opposed the amendment. He said
the facility at Fort Greely would provide eight hundred beds
at a great price. By a roll call vote of two yeas
(Torgerson, Adams) and five nays (Pearce, Sharp, Parnell,
Donley, Phillips) amendment #5 FAILED.
Senator Torgerson MOVED amendment #6. Senator Donley
OBJECTED. Representative Mulder also opposed to the
amendment. Senator Donley said there was an immediate
overcrowding problem and it needed to be resolved in a
specific time frame. By a roll call vote of two yeas
(Torgerson, Phillips) and five nays (Pearce, Sharp, Parnell,
Donley, Adams) amendment #6 FAILED.
Senator Torgerson MOVED amendment #7. Senator Donley
OBJECTED. Representative Mulder also opposed the amendment.
The presence of Senator Jerry Ward was noted for the record.
He concurred with the opposition of Representative Mulder.
He felt the amendment was not applicable to a short-term
fix. By a roll call vote two yeas (Torgerson, Adams) and
five nays (Pearce, Sharp, Donley, Parnell, Phillips)
amendment #7 FAILED.
Senator Torgerson MOVED amendment #8. Senator Donley
OBJECTED. Representative Mulder also opposed the amendment.
By a roll call vote of three yeas (Sharp, Torgerson, Adams)
and four nays (Pearce, Parnell, Donley, Phillips) amendment
Senator Adams MOVED amendment #9. Senator Donley OBJECTED.
Representative Mulder also opposed the amendment.
(Tape #96, Side A switched to Side B.)
Senator Adams said Alaska sometimes had short-term inmates
from somewhere else. He did not have any objection to
prisoners being shipped outside Alaska because it allowed
them to be closer to their home locations. It was a way for
"blue tickets". He felt the amendment would save the State
money.
Co-chair Pearce asked Senator Adams if his corrected
amendment deleted the amount of "800" on line eight, and
inserted the amount of "500". Senator Adams indicated this
was correct and the Secretary was asked to make this
correction on the amendment.
By a roll call vote of two yeas (Adams, Torgerson) and five
nays (Pearce, Sharp, Donley, Parnell, Phillips) amendment #9
FAILED.
Senator Adams MOVED amendment #10. Co-chair Pearce
OBJECTED. Representative Mulder also opposed the amendment.
Senator Adams said the bush also had problems with crime and
overcrowding in the facilities. This amendment would allow
expansion of the Yukon-Kuskokwim Correctional Center in
Bethel.
Representative Mulder said the reason he and House Finance
opposed this amendment was because they were looking at the
possibility of placing offenders in "halfway houses" and
require culturally relevant programs to be instituted.
By a roll call vote of two yeas (Adams, Torgerson) and five
nays (Pearce, Sharp, Donley, Parnell, Phillips) amendment
Co-chair Pearce advised the committee that there was a
Letter of Intent offered by the House Rules Committee and
was in members' files. She asked the committee to be
prepared to decide whether or not they wanted to move that
Letter forward with the bill.
Senator Adams moved amendment #11. Senator Phillips
OBJECTED. Representative Mulder also opposed the amendment.
Senator Adams noted that due to fire code violations the
facility in Barrow was due to be closed. This amendment
would allow for a lease-purchase agreement for a facility in
the North Slope Borough.
By a roll call vote of one yea (Adams) and six nays (Pearce,
Sharp, Donley, Torgerson, Parnell, Phillips) amendment #11
FAILED.
Senator Donley MOVED the Letter of Intent, dated 3/2/98 and
WITHOUT OBJECTION it was ADOPTED and ordered sent to the
floor accompanying the bill.
Senator Sharp asked the Department of Corrections to provide
an estimated cost per day on the Anchorage facility.
Commissioner Pugh said she did not have those figures with
her but they would be provided the committee as soon as
possible. Ms. Knuth advised the committee that with the
capitalization of the construction money being added in, the
costs just went up. Senator Sharp indicated that it would
add $33 million to the twenty-year total. Ms. Knuth said
they would work on it and provide the information to the
committee. Co-chair Pearce thanked her and the
Commissioner.
Senator Adams requested that Mr. Kinney be recalled to join
the committee. He asked that with the way the bill was
written did it allow for State bond participation? Mr.
Kinney said that the way the bill was currently written it
did not. Senator Adams wanted to know the excess costs in
State versus the Delta facility and then State versus the
Anchorage facility in order to see the difference. Mr.
Kinney said he had no idea what the numbers were on the
Delta facility project. He indicated the problem was a
private corporation utilizing State credit with a number of
intermediaries in between. Anchorage had basically the same
problem. They were going to be pledging the payment stream
from the State of Alaska, as the collateral for the debt in
order to make their payments. He reiterated that his major
concerns regarding the bill were the financial issues.
Senator Lincoln said she appreciated the committee's
diligence in listening to long hours of testimony and their
consideration of the bill. She knows the decision is a very
difficult one.
Senator Adams requested the Department of Law to review AS
33.30.031 in section 6 and asked what was being left out.
Ms. Knuth explained that AS 33.30.031 (a) required the
Commissioner to make a finding that, "there are no beds
available in-State before sending prisoners out of the
State." And by holding that section as not applicable for
the Fort Greely prison usage enables the Commissioner to
send prisoners to Arizona even if there is space available
at Delta Junction.
Senator Donley MOVED SCS CSHB 53(FIN) with accompanying
Letter of Intent, fiscal notes and individual
recommendations and WITHOUT OBJECTION the bill was REPORTED
OUT. Accompanying fiscal notes were: Department of
Administration/Leasing, zero; Department of Revenue, zero
and Department of Corrections, $395.8.
Co-chair Pearce recessed the committee for a five minute
break at approximately 9:30 p.m. She reconvened the
committee at approximately 9:40 p.m. to consider HB 461.
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