Legislature(1997 - 1998)
04/17/1998 09:25 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 246
"An Act amending the definition of correctional
facility to include a therapeutic treatment center;
providing for the conveyance of the Harborview
Developmental Center and appurtenant land to the City
of Valdez for the purpose of conversion and lease of a
part of the center for a therapeutic treatment center
for the Department of Corrections; providing that such
a land conveyance counts toward the general grant land
entitlement of the City of Valdez; and providing for an
effective date."
Co-Chair Sharp announced that although this was the first
official hearing on this bill, the committee heard a
presentation from Dr. Gary Field of the Oregon Department of
Corrections earlier relating to the establishment of the
rehabilitation center.
He invited BETSY ROBSON, Assistant Director in the
Department of Corrections in charge of programs, to speak to
the bill. Her testimony was as follows:
"With the chair's permission, I'd like to hand out some
documents that relate to the cost of care per day, and also
the effectiveness of treatment."
Co-Chair Sharp noted that information was probably already
in each member's file, but instructed her to pass out her
information just in case there were any differences. He
urged her to continue with her presentation.
"This bill would allow the DOC to establish the Valdez
Therapeutic Community. For a long time, the DOC has
recognized the need for intensive alcohol treatment and
programs to address those offenders who are seriously
addicted."
"It is estimated that a large number, approximately 80
percent of the individuals involved in crime in our custody
have problems with substance abuse. Currently the DOC
provides a substance abuse education program, a pretreatment
program and an outpatient model. We do not have available
the intensive treatment to deal with these serious
offenders."
"If we were to open the Valdez facility, we would be looking
at housing 60 medium/minimum inmates from across the state.
These individuals would require - have been screened and
known to require intensive treatment and would not otherwise
be eligible for any form of early release unless they
receive this type of treatment. The program will feature a
nine to twelve month program of intensive treatment. It
will have a strong after-care component and planning for
after-care will begin when the inmate enters the program."
"We feel that this program can have a significant impact on
this population in terms of reduction of recidivism.
Previously national expert, Gary Field from the Staying Out
program in Oregon did testify before this committee as to
the anticipated impact of this program. And in fact in the
handout that we distributed, there is a pamphlet that shows
research summary on recidivism rate."
"The second section of this bill provides for the transfer
of the Harborview Developmental Center and the adjoining
property to the City of Valdez. The DOC, Department of
Health and Social Services and the City of Valdez have been
working closely with the Department of Admin. on developing
an interim agreement to allow us to make renovations to the
building and to continue forward with those renovations."
Side B Tape 125, 10:20 a.m.
"...In addition, the DOA has assisted with a surplussing
process. They have canvassed other state departments and
agencies and determined that there is no other agency with
an interest in the building. Dugan Petty is here today on
behalf of the DOA and would be available to answer any
questions that individuals may have."
"Also, I would like the permission of the chair to ask Larry
Streuber from DHSS to come up and address the issue of what
will happen if the building is not transferred to the City
of Valdez."
Co-Chair Sharp invited LARRY STREUBER, the
Facilities/Planning Chief for the DHSS to speak to the
committee. After introducing himself, Mr. Streuber's
comments were as follows:
"Harborview Development Center for many years was the
institutional facility for the developmentally disabled
population. Three years ago, the decision was made to close
Harborview and the remaining 44 residents were transferred
to community services. The last residents were out November
15th and the last program staff were out of Harborview
December 30th."
"Harborview is a valuable asset. It's valued - its
replacement value is valued at over $40 million. To protect
that asset - the State's asset, the building - the DHSS
implemented an asset protection plan, a fancy name for
mothballing. Basically what we did is divide the mechanical
electrical operations of the building into logical units and
reduced the energy necessary to keep the building functional
but operating at a minimum capacity. And we retained one
maintenance mechanic on staff. So out of the hundred or so
people that were at Harborview as staff a few years ago, we
still have one maintenance mechanic. However the Valdez
Community Hospital is fully operational and does occupy 17
percent of the facility."
"The point that we want to make today is that if the
facility isn't transferred to Valdez it remains a state
responsibility. The state will have the responsibility to
protect the building to keep an asset protection."
"In FY99, if the State has to continue asset protection for
that building, we estimate that that cost will be about
$265,000 and we don't have any money in our FY99 budget to
do that."
Co-Chair Sharp asked what would be the cost to demolish the
building. Mr. Streuber did not know, but had heard the cost
to demolish API would be $15 million. He estimated the cost
to demolish Harborview would be less because it was a
smaller building.
Senator Phillips wanted to know if the City of Valdez had
any other plans for the facility besides using it for the
alcohol treatment program. Ms. Robson was unaware of any
other plans. However, she did point out that DOC intended
to occupy only a portion of the building, which they would
lease from the city. Other portions of the building would
be used by other agencies.
Senator Adams asked for clarification on the daily operating
rate. He noted a letter from Senator Ward stating the cost
per bed was $124.39. DOC quoted the cost as $95.87. He
wanted to know why the discrepancy existed. Ms. Robson was
unsure and requested the committee allow Division of
Administration Deputy Director Joe Reeves from DOC speak to
the cost per day matter.
Senator Pearce directed the committee's attention to the
back page of one of the handouts the treatment costs were
broken out and compared to incarceration costs. Senator
Adams was satisfied with that information to answer his
concerns.
Senator Phillips wanted to know if there was an option to
sell the building to the private sector. He compared that
to the cost to the state to maintain the building or have it
demolished. Ms. Robson asked DUGAN PETTY, General Services
Director for the DOA be allowed to comment. Mr. Petty spoke
to that issue as follows:
"We've not taken this to the point where we have put it out
for public dissemination. The City of Valdez has expressed
an interest in the facility and if the decision were made
not to move forward with the City of Valdez. Although, I
would wonder if it wouldn't become something like the
Whittier building - never had a market. We have not done
that. We could do it should we not do it with the city.
We've been..."
Senator Phillips interrupted asking for other examples where
the State surplussed buildings. Mr. Petty replied they had
excessed a number of smaller buildings for off-site removal.
The State had done a limited amount of larger buildings. He
qualified that this was a new state and this was one of the
first large buildings that had been looked at for
decommission. They did not have much of a track record, he
admitted, but they did believe that to the extent the
transfer could benefit the community, the transaction made
sense. By transferring to the city, it would not preclude
the city from entering into an agreement with the private
sector for use of the building, he added. However, the city
needed part of the building for the community hospital. He
believed the hospital was vital to the community.
Senator Pearce wanted to know what the DOC was going to do
with regard to the Cleary Order to relieve prison
overcrowding if inmates could not be transferred to this
facility. Ms. Robson responded part of the department's
plan to reduce prison population was to send inmates to the
alcohol treatment facility. If the program were not
approved by the Legislature, they would have to look at
other alternatives including violating the court ordered
population cap or shipping more inmates to Arizona. The
cost to house these inmates out-of-state would be
approximately $106 per day, she estimated.
Senator Pearce spoke of the plan the department submitted to
the court to comply with the Cleary Order. She asked if it
included placing inmates in the Harborview facility as part
of the solution. Ms. Robson affirmed. Senator Pearce
wanted to know if the inmates were not housed in state, what
would be the average cost to house them out-of-state. Ms.
Robson repeated that the average amount would be $106 per
day. Senator Pearce noted that while the outside beds were
cheaper, the inmates wouldn't receive any treatment while
being housed out of state. Ms. Robson said they would
receive very limited treatment. It would be whatever
treatment was available at the facility, but would not be
enough to meet their needs.
Senator Pearce observed that in order to comply with the
court order, these inmates needed to be placed somewhere.
In other words, these would not be new beds, and at some
point the treatment program would have to be provided under
the Cleary Order. Ms. Robson agreed that was a fair
assessment of the situation.
Co-Chair Sharp didn't recall Harborview being part of the
prison relief package the committee put together. Senator
Pearce said while it was not part of the short-term/long-
term plan to house inmates in tents and ship others out of
state, the Harborview facility was approved by the
Legislative Budget and Audit Committee last year and was
included in the supplemental budget package. She shared
that one stipulation for the program's approval was that the
cost per day of incarceration, less cost for treatment, had
to be below the average cost per day system-wide. She
explained that part of the budget plan for the department
was an under $8 million increase, which did not include
these 60 beds because funding for them was covered under a
fiscal note. Whether the Legislature passed this bill or
not, they would need to somehow fund the 60 beds to meet the
court order, she warned. It was up to the Legislature
whether they wanted to fund the 60 beds through the
Harborview program or by some other means.
Co-Chair Sharp noted the arrival of the bill sponsor,
Representative GENE KUBINA, and invited him to join the
committee. He also invited Senator GEORGIANNA LINCOLN to
join the committee. Senator Kubina testified as follows:
"Harborview Developmental Center - DHSS has wanted for years
to get out of the institution of Harborview. So, in doing
so, they have kept the number down, not allowed more people
to go in that facility, making the cost per person extremely
high, which in essence, forced the closure of that
facility."
"The City of - over the last two years, the Legislature
first funded $250,000 to do a - to find out how to use -
what way we could use Harborview. Basically, Harborview is
a facility that's made to house people. Last year, the
Legislature funded $400,000 and they put stipulations in
that I think you are all aware of so I won't read them. But
it says that we will do this program if they can do it where
the cost per inmate day does not exceed statewide average
during that day excluding treatment. And then they also -
we also put in the budget that we would have these programs
to monitor it so that we could actually show or prove
whether we're saving money by doing it or not."
"The City of Valdez has gone to a great length to try to
bring the cost down, providing the facility, work with the
department. They are in essence, in the lease back to the
department, including heating, electricity and maintenance.
There is no - they have taken all the risk on that building
not being a good building and having to cost too much. All
of that is in the cost. So this is what people in DHSS been
saying for years where the building is expensive. We don't
buy that we've never bought that. We just think they wanted
to get out of having a quote an institution."
"Mr. Chairman, we had a gentleman from Oregon here talk
about the program. I won't go into that. I know you sat
through it and everybody that has dealt with these programs
tell you this program is great. Oregon not only had one
that they started almost 20 years ago. They've added three
more because this program works so well in keeping people
out of prison."
"Mr. Chairman, the City of Valdez has worked in good faith.
They have a million dollars ready to put into the building
to bring it - make the changes that corrections needs to use
the facility for this proposal. Obviously, they don't want
- they're not going to spend that money until we know that
the proposal is there. We have followed the letter of the
law. Even though the Governor vetoed this, the department
has agreed to follow it, the City of Valdez has done
everything they can to come in with those stipulations and
we would like to go forward with the program."
"I think - I'm convinced that several years down the line,
we're all going to be happy that it happened because the
program is going to be successful. We're going to be doing
something to keep people out rather than putting them back."
He concluded by offering to answer any questions.
Co-Chair Sharp invited Senator Lincoln to speak. She
testified as follows:
"I would just add to that that in looking at the 60 bed
minimum and medium custody inmates that would be there, that
frees up 60 more beds that we so desperately need within the
state. And I think when you look at the cost effectiveness
as was mentioned earlier, the average cost of being $106
compared to the $95.87 - I think that's through the
department and the community that they have worked very
closely together to come under that figure. And have a very
cost effective program here, one that's needed and also that
I think that the planning process that both the City of
Valdez, and the department and the administration in all
working together for this planning process."
"It wasn't anything that was just put together real rapidly
and without any thought given to the benefits to the State
Of Alaska. So I think it really is - if you look at it -
overall it's cost effective and we certainly do have the
need there."
Co-Chair Sharp next called upon DON DAPCEVICH, the Executive
Director for the Governor's Advisory Board on Alcoholism and
Drug Abuse. After introducing himself, Mr. Dapcevich gave
the following presentation:
"My board has instructed me to come and speak before you in
support of this legislation."
"All Alaskan's had the opportunity about ten days ago to
watch a very impressive series. And I hope some of you saw
that series titled 'Moyers on Addiction'. It was run
nationally on public television all across the State Of
Alaska. The last hour of that program was devoted to the
prison system's response to treatment and it focused on the
State of Arizona. And they have recently come to
realization that the most effective, the most fiscally
responsible way to deal with the overcrowding in their
prisons is to treat the addictions of their prisoners. And
I think this is the opportunity that you have to respond to
that in Alaska."
"I had the good fortune several years ago to act as a
consultant to the State of Texas when they began their foray
into treatment communities for their prison populations.
And they have proven as you can see in the material provided
by the DOC to you, been quite successful in their ability to
treat prisoners. It's a relatively small investment with a
control infrastructure cost to the state that can be
measured. It's quantifiable. It's qualafiable."
"You have an opportunity to use the performance measures
that you've established the outcome based funding criteria
that you're establishing to measure the effectiveness of
this treatment program. And if it doesn't work over a very
short period of time, beginning in the second year, you'll
know if it hasn't worked and you can either continue to fund
it based on it's effectiveness in efficacy in treating this
population, or you can defund it."
"But here's an opportunity where the community is willing to
accept this facility. And that's pretty strange in this day
and age for a community to be willing to not only accept
this facility in their community, but to participate with
you in the cost of operating the facility. So it appears to
be from our perspective, a win, win; win situation for the
state. A very small investment, a promised return on that
investment over a very short period of time that will
actually save you dollars in the long run. So we would
encourage you to fund this facility and get it on the road."
Representative Kubina announced that he needed to leave the
meeting to satisfy a call placed on all House of
Representative members. He wanted the members to that know
his leaving did not imply apathy for the work the committee
was doing, but that he had no other choice but to go to the
House chambers. Co-Chair Sharp noted the need and thanked
the representative for the explanation.
Co-Chair Sharp commented on conflicting testimony where the
department said Arizona prisoners received limited treatment
and Mr. Dapcevich said they had an exemplary program.
Senator Adams asked if the Co-Chair was ready for a motion
to move the bill from committee. Co-Chair Sharp said he was
waiting for more comments. There were no others signed up
to testify. He ordered the bill held in committee.
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