Legislature(2005 - 2006)SENATE FINANCE 532
03/23/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 141 | ||
MINUTES
SENATE FINANCE COMMITTEE
March 23, 2005
9:05 A.M
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 9:05:16 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Bert Stedman
Senator Fred Dyson
Senator Donny Olson
Senator Lyman Hoffman
Also Attending: MAJOR GENERAL CRAIG CAMPBELL, Department of
Military and Veterans Affairs; STEVE EASTMAN, Department of
Administration; DAN SPENCER, Director, Division of Administrative
Services, Department of Public Safety; JOE BEEDLE, Vice President,
Finance, University of Alaska; DAN FAUSKE, CEO/Executive Director,
Alaska Housing Finance Corporation, Department of Revenue; LES
CAMPBELL, Budget Director, Alaska Housing Finance Corporation,
Department of Revenue
Attending via Teleconference: From an offnet site: FELIX MACUIRE
SUMMARY INFORMATION
ALMR Project Overview Presentation
The Committee heard an Alaska Land Mobile Radio Program
presentation from the Department of Military and Veterans Affairs.
SB 46-APPROP: CAPITAL BUDGET
Budget overviews from the Department of Public Safety, the
University of Alaska, and the Alaska Housing Finance Corporation,
Department of Revenue, were presented. The bill was held in
Committee.
^
ALMR Project Overview Presentation
Department of Military and Veterans Affairs
MAJOR GENERAL CRAIG CAMPBELL, Adjutant General/Commissioner,
Department of Military and Veterans Affairs stated that over the
last year, the focus, direction, and teamwork associated with the
Alaska Land Mobile Radio Alaska (ALMR) project have changed
dramatically. His presentation, as detailed in the handout titled
"Alaska Land Mobile Radio Alaska Legislature, March 23, 2005" [copy
on file] would address the history of the project, the Department
of Military and Veterans Affairs' involvement and the project's
funding. A radio demonstration of how the system is designed to
work would also be conducted. He noted that because this project is
a team effort between the two departments, personnel from both the
Department of Military and Veterans Affairs and the Department of
Administration would assist him.
Page two
ALMR History
· 1995: ALMR Executive Council Formed
· 1997: MOU Signed to Jointly Plan New System
· 1009 - 2001: System Design & Analysis Developed
· 2001:MOU Renewed to Implement System
· 2002 - 2003: Concept Demonstration Project
· 2003 - 2006: System Buildout
Major General Campbell pointed out that the AMLR project has been
under development for more than a decade. Its executive committee,
which includes representatives from the Public Safety
Administration, the Alaska Municipal League, and the federal
Department of Defense (DoD), is responsible for overseeing the
project's direction, the process through which to achieving program
goals, and its funding mechanisms. Determinations regarding the
direction of Alaska's AMLR project were initially established in
1997 and the system was designed by the year 2001. An ALMR
Memorandum of Understanding (MOU) between the involved entities was
reaffirmed in the year 2001 when the implementation plan was
approved.
Major General Campbell shared that the original goal was to develop
an ALMR system with the capacity to provide "interoperability for
all agencies" throughout the State in both urban and rural areas.
However, in 2004, at the directive of Governor Frank Murkowski, the
scope of the project "changed slightly" with the focus being to
install AMLR, in the short term, "along the backbone of the State's
microwave system" paralleling the Alaska road systems between
Valdez and Glennallen, Delta and Fairbanks, Fairbanks and
Anchorage, and Anchorage and Kenai. This routing and the timing are
important because this area of the system must be able to support
DoD defense system needs in the year 2006. Furthermore, the ALMR
radio license issued to the State by the Federal Communications
Commission specifies that the system must be operational by
December 2006. Thus, the timeline established for the system
buildout "is critical".
Major General Campbell noted that project work conducted during
2002 and 2003, was lauded by Governor Murkowski as supporting a
system that would work, even though the long-term operating costs
were unknown and there was uncertainty in regards to whether the
proposed design would be the most cost effective for the State. In
addition to redirecting the focus toward supporting the routing
required by DoD, Governor Murkowski asked that alternative plans be
pursued in respect to providing "communication interoperability"
between various entities throughout the State. To that point, new
technologies are now available that could cooperatively work with
ALMR to provide a Statewide connective system.
Major General Campbell declared that "ALMR is a solid program" and
the system along the road grids is scheduled to for completion in
2006. The additional goal of developing a strategic master plan to
provide a cost effective communications system for both urban and
rural Alaska is proceeding. The result might be a combination of
different technologies that could intercommunicate, provide secure
and non-secure capabilities, transmit both voice and data, and meet
a variety of additional State needs rather than being limited to
providing emergency communications. Governor Murkowski's "vision"
is a system that, in addition to emergency interfacing, would allow
remote health clinics to communicate with larger facilities such as
the Mayo Clinic or the University of Alaska the ability to teach
"on-line" throughout the State with both data and voice
communication. The strategic plan being developed would assist in
determining the solutions to this endeavor.
Page three
State of Alaska Commitment*
· Provide a Lead Project Manager, staff and fund the
Project Office
· Perform site preparation on all non-DoD sites
· Purchase and install the equipment for 37 sites
· Provide connectivity through SATS in return for system
maintenance being performed by DoD
· Split system management costs with the DoD
*Per the ALMR Charter
Major General Campbell introduced Mike Callahan who was recently
hired as the State's ALMR Project Manager. Mr. Callahan has
background experience in telecommunications and has a firm
understanding of the needs of the State. Working within the
Department of Military and Veterans Affairs, Mr. Callahan would be
representing the interests of any State entity involved in the
implementation of the ALMR project.
Major General Campbell noted that further information regarding the
non-DoD sites' preparation, equipment, connectivity, and costs
associated with those endeavors would be forthcoming. He assured
the Committee that recent rumors that DoD might be "withdrawing
from the program" due to an "uncomfortable" working relationship
with the State were unfounded. Rather than issues arising between
the participants, the issues being discussed pertain to the ALMR
program itself in respect to how to coordinate activities between
entities to insure that "the 2006 execution date is achieved".
Page four
Current Project Status
· Zone Controllers in Anchorage and Fairbanks
· 15 sites currently operational:
2 in Anchorage
2 in Fairbanks
1 in Valdez
2 in Juneau
8 from Fairbanks to Delta
· Valdez Police Department currently using the system under
a Beta agreement
· Fairbanks service to begin in 2005
Major General Campbell informed that the "central connection" for
the ALMR road grid zone controllers would be located in Anchorage
and Fairbanks. He provided a map [copy on file] depicting the ALMR
site locations in the State, and noted that the road system sites
are highlighted by "greenish-blue markings". ALMR beta testing "has
been very successful" and the system functioned well during the
recent Homeland Security operation conducted in Valdez.
Page five
Funding History - State Portion
[Note: The chart on this page depicts the AMLR funding history
from 1998 through 2006. Specific information was depicted by
year; the funding source such as the State, the Federal
government, or Certificates of Participation (COPS); the
amount requested; the amounts appropriated toward the Program
Office, the Infrastructure and in Total; as well as a column
reflecting the difference in the requested amount and the
actual appropriation.]
Major General Campbell stated that the chart on page five presents
the monetary aspect of the program. This is important information
as it supports the position held by some that the State "does not
appear" to be contributing its match requirements in the manner
required "to make this project successful". State funding was the
sole funding source in 1998, 1999, and 2000; federal funding
occurred in the years 2002 and 2003, and a combination of both
State and federal funding occurred in 2004 and 2005. The majority
of the ten million dollars that has been appropriated in support of
the system's infrastructure was federal funding. To date, of the
total $12,700,000 that has been spent to support ALMR, $3,500,000
is State funding. On December 31, 2005, a shortfall of $6,300,000
is projected. The State must infuse more money into the program in
order to uphold it obligation to the project. There is a request in
the State's FY 05 Supplemental Budget to address this issue.
Major General Campbell also noted that additional federal money is
being requested. "Up to now, the State of Alaska general fund has
really only put in about $3.5 million". Subsequent information
would further reflect how this weighs against the federal
contributions.
Co-Chair Wilken asked whether the six million dollar request in the
FY 05 Supplemental Funding bill would apply toward the $18,900,000
funding request shortfall projected at the end of 2006.
Major General Campbell affirmed that it would.
Co-Chair Wilken noted that the additional $6,500,000 request that
is proposed for the State's FY 06 budget would also apply toward
that deficit. Therefore, were both the FY 05 supplemental request
and the FY 06 budget request approved, the deficit would be reduced
to approximately five million dollars.
Major General Campbell noted that the project is still being
"scrubbed" and that, at the end of 2006, the expectation is that
the State would meet its obligation. Additional federal funding
would also be received toward that deficit. He clarified, however,
that the funding need could increase as the project buildout phase
occurs. $12,500,000 is a "critical" need with $3,000,000 being an
absolute need over the next 90 days. Parts must be ordered and in
place before the start of the federal Northern Edge Homeland
Security military exercise scheduled for August 2005.
Major General Campbell noted that the three critical needs at the
moment include: an immediate need for three million dollars as six
million dollars of SATS equipment is immediately needed in order to
upgrade the capacity of existing microwave tower equipment to
support the workability of the ALMR system. The Department of
Military and Veterans Affairs and the Department of Administration
have applied for grants to support these upgrades and to support
the buildout of the ALMR sites. These efforts would support the
implementation of the ALMR system. "The short answer is that you're
going to hear more about this, I don't think we have the dollar
figure complete yet".
Page six
FY 05 Project Office Budget
FY 2004 Carryover 75,000
2005 GF Appropriation 50,000
2005 GF Reappropriation 350,000
Total Funds Available 475,000
FCC Licensing 75,000
Project Office Expenses 390,000
Projected 2005 Carryover 10,000
Major General Campbell stated that this page reflects the costs
associated with operating the project's office. These expenses are
"fairly continuous". State funding has primarily supported this
expense.
9:22:56 AM
Page seven
FY 05 Buildout Capital Budget
FY2004 Carryover 1,875,000
FFY2004 COPS Earmark Grant 2,474,000
FFY2005 COPS Earmark Grant 2,467,000
Total Funds Appropriated 6,816,000
Projected Costs
Key Bank Financing 1,867,000
Lena Point and Willow Creek 433,000
Blueberry Hill 513,000
Site Summit 280,000
Projected 2005 Carryover 3,723,000
Major General Campbell stated that this page reflects the known
expenses of the Buildout Capital Budget. Four of the 35 sites are
listed to example anticipated site expenses.
Page eight
Large State Agency Subscriber Purchases
DOT/PF
$3.3 million Federal Hwy funds available
· $1.7 million spent
· $1.6 million pending
DPS/AST
· $1 million spent (COP grant)
Major General Campbell stated that while the Department of Military
and Veterans Affairs is overseeing the project, they "are not the
sole beneficiary." Other State entities that would benefit include
the Department of Transportation and Public Facilities (DOT) and
the Department of Public Safety. These departments have an
inventory of ALMR radios, and had the system been operational this
past year, DOT would attest that their highway snow removal efforts
would have been expedited, as reliable communication in the field
is currently an issue.
9:24:33 AM
Page nine
DoD Contributions - Project To Date
Category Amount
Infrastructure $50,952,915
Project Mgt $4,385,382
Total Funded $55,338,382
FY 06 Request $8,100,000
Grant Total $63,438,297
Major General Campbell pointed out that this funding is attributed
solely to DoD. This should be kept in mind when considering the
State's $3,500,000 investment in the project. This is "the issue
that's been driving the federal government" to question the State's
commitment to the project. The State of Alaska is a beneficiary of
the project. "Our commitment is solid", the State is conducting
site improvements, and is working toward completing the project in
2006. Federal officials have been assured of the State's commitment
by the supplemental and FY 06 budget requests. The State would meet
the obligation it committed to "ten years ago". The overall
federal/State match is approximately a 75/25 percent split.
Major General Campbell concluded his formal presentation. Site
pictures [copies not on file] were shown to Members.
Co-Chair Wilken asked how the $650,000 ALMR request that is
included in the FY 06 operating budget proposal would be utilized.
Major General Campbell responded that that money would be used to
support the operating component of the project as opposed to
infrastructure purchasing. The funding would be used to support
forthcoming office operation changes.
Senator Bunde questioned the reason that eight of the 15 sites
listed on page four of the presentation, are necessary as the
region between Delta and Fairbanks is "pretty flat".
Major General Campbell explained that of the numerous AMLR sites,
those 15 are the ones that are currently operational. Work is being
conducted in segments with the focus currently being on sites
within the Fairbanks/Delta segment. The aforementioned map depicts
site locations and phases.
Senator Bunde asked for further information regarding the 25-mile
buffer zone as specified in the footnote on the map.
Major General Campbell replied that the ALMR microwave system
functions by connecting "microwave to microwave". 25 miles is the
distance radius capability for a microwave. The red circles around
each site indicate that radius, and the area at which they overlap
is where the connection occurs.
Senator Bunde understood therefore that each site's range is 25
miles. To that point, he noted that 25 miles would not allow for
mass communication.
Major General Campbell responded that this is exactly the reason
that efforts are being exerted to complete the sites along the road
system highlighted by the greenish blue area on the map. With the
exception of Southeast Alaska enhancements that include both
microwave and fiber optics communication, the 2006-buildout efforts
are being exerted on the ALMR system located within that parameter.
The goal of the system is to develop "a cost effective program that
will include ALMR and other technologies that we could utilize
around the entire State". The AMLR system that is currently being
built would be "the backbone" of an overall system and would work
with other technologies; it could be determined in the analyses
that AMLR would be the best choice. The aforementioned circles are
indicative of the fact that microwave alone would not work in Rural
Alaska. Other possible options could be fiber optics, satellite, or
duplicate systems. He noted that the Yukon-Kuskokwim Health Clinic,
which is located in Bethel, is actively preparing to install a
single network microwave system in the villages it serves within a
"50 mile radius" of Bethel. The State, in conjunction with the
Bethel Police Department, currently has a test project operating in
Bethel, which, while utilizing a different type of translator,
would allow interoperability. Efforts are being exerted to "mesh
together" these two systems to achieve a full spectrum of secured
and unsecured data. The strategic plan being developed would
include the results of this endeavor. In summary, he affirmed that
the State has not "automatically" determined that the ALMR program
should be "the sole solution for the State of Alaska".
Senator Bunde observed that, other that the non-secure issue,
cellular phones could accomplish the task intended for ALMR.
Major General Campbell replied that while cell phones are good,
they would not perform well in regards "to the needs of the
providers" in an emergency response situation. "The need is
different" in that rather than simply having the ability to talk to
one another: the goal would be to develop a network, similar "to a
conference call", in which everyone could communicate with each
other. Three people using three different communication radios with
different frequencies and spectrums, a VHF or UHF or 800 hertz
radios for example, could not communicate with each other. The goal
of this project to develop a system in which "it would not matter
what radios you have", there would be the ability "to translate and
talk with each other". ALMR would do that by establishing "a one
frequency connection". Even though means currently exist through
which a translator could be utilized to allow different frequencies
to communicate, the ALMR project would develop a interoperability
system in which a group, rather than one individual talking to
another, could communicate even though they might be using
different technologies. "That is the ultimate goal that we are
looking to achieve through this plan".
Senator Dyson asked for further information about how the site
depicted on the map in the Gulf of Alaska, east of Kodiak, would be
utilized.
Major General Campbell was unfamiliar with the specifics of that
site.
Senator Dyson asked regarding any continuing problems that have
been experienced as the plan has been executed.
Major General Campbell affirmed that the program has experienced
"problems in the past". While the program has been in existence for
a decade, it "has not been actively managed until about the last
year or two". The Governor Murkowski administration "understands
the need" for such a program and is "very proactive". In addition
to hiring a qualified project manager, the Commissioner of the
Department of Administration and himself, have a mutual
understanding of what the State must do in this regard and are
working well together. Historical problems have been identified and
would "significantly be reduced". The State has not "until
recently" upheld its responsibility in advancing the ALMR program.
Senator Olson asked for further information about the types of
communications that would be available in regards to such things as
the Yukon-Kuskokwim (YK) Health Care delivery system; specifically
whether it would be voice communication.
Major General Campbell responded that the YK Health Clinic goal is
to allow for both voice and data communication. They desire to have
images transmitted between the villages to the Bethel location. The
State would like to tie in with the YK Health Clinic's project, as
Governor Murkowski's request includes that work be done on
developing a statewide system inclusive of both voice and data.
"The YK Health Clinic is on the leading edge right now of looking
at how to accomplish that".
Senator Olson asked whether it would be feasible to transmit X-rays
to such places as the Mayo Clinic.
Major General Campbell replied that transmitting such data
"ultimately is the desire".
Senator Olson asked regarding the cost associated with upgrading
remote sites, as the sites exampled on page seven are near other
infrastructures or communities.
Major General Campbell agreed that the price associated for sites
outside of the road corridor area highlighted in the greenish-blue
color on the map would increase "significantly". The technology
connection is not demonstrated in the presentation. He mentioned
that Motorola, the current contractor for the AMLR system, is
currently conducting tests in remote areas on St. Paul Island to
establish how ALMR could work in a cost effective manner is such
locations. Developing a system in a cost effective manner is one of
the goals of the project. Senator Olson is correct in pointing out
that the site cost examples presented in the handout are along the
road system. However, rather than costs varying because of the ALMR
system, cost variables are determined by the condition of the
microwave tower. In order to be brought up to standards, "some need
more work than others". The cost of the ALMR system component at
each site is "fairly consistent for each tower". Continuing, he
noted that some additional costs are dictated by the site location;
some are on mountaintops, some are not. He reiterated that the
State "has not necessarily come to the conclusion that ALMR" would
be the solution in Rural Alaska.
Senator Olson surmised therefore, "that this is essentially a road
system project rather than something that is Statewide".
Major General Campbell affirmed that the ALMR project that would be
installed by December 2006, "is the backbone along the road system"
component. The strategic plan that is currently being developed
would identify a cost effective system that would be implemented
Statewide. That is "the larger goal". Whatever system is identified
for the Statewide segment must be compatible with ALMR, and in the
end, "the most cost effective solution" could be the ALMR system.
Senator Olson referenced information on page eight that specified
that the DOT and the Department of Public Safety have already
acquired ALMR radios.
9:37:44 AM
Major General Campbell affirmed that radios have been acquired and
would be re-programmed to be ALMR compatible once the system is
operational.
Senator Olson questioned the decision to purchase radios prior to
the activation date due to the fact that technology advances
rapidly. The radios might "be obsolete" before the system is
operational.
Major General Campbell assured that this would not be a problem as
there is an arrangement to upgrade the radios as the system
evolves. Money to "key the radios" once the system is operational
is included in the $650,000 request that was previously discussed.
9:38:47 AM
Senator Stedman, noting the tower sites identified on the map for
southern Southeast Alaska, asked the reason that no tower site
would be located near the Prince of Wales Island community of
Craig, which is a growing community.
Major General Campbell affirmed that Craig is outside the tower
radius. He stated that Southeast Alaska "is an exception"; ALMR is
being pursued in that area even though there is no central road
system as there is in central Alaska.
Major General Campbell disclosed that Craig is the site of another
pilot project, as a translator has been installed at the Craig
Police Department to see how the system would work and communicate
with other types of communication systems. The system appears to be
working. The Craig Police Chief "loves the system" and wants to
expand it. It appears to be "the right solution for that type of
community". In summary, AMLR work is being furthered in Southeast
Alaska and testing is being conducted to determine its
compatibility with other systems. Such things as the terrain of
Southeast Alaska differing from that of the road system corridor
would be taken into consideration in the development of a master
plan to determines which technologies would be appropriate and cost
effective. The remote distances experienced in Rural Alaska are one
issue, and the terrain of Southeast Alaska presents another
geographical challenge.
Senator Stedman, noting that Juneau has a fiber optic connection,
asked regarding "the role of fiber optics" in the system.
Major General Campbell stated that, "from the perspective of the
Statewide master plan", fiber optics is considered "a viable
alternative" but perhaps not the sole solution. The belief is that
a successful overlapping integrative system consisting of fiber
optics, microwaves, and satellites could be developed.
STEVE EASTMAN, Department of Administration, showed the Committee
pictures [copies not provided] of various microwave and two-way
radio sites in both urban and rural areas of the State. Some sites
are solar-powered. He noted that there is a lot of site activity
occurring in the Fairbanks region of the State, and that some of
the sites being upgraded are more than 30 years old. He
demonstrated a live radio connection between himself and
individuals in Anchorage and Fairbanks.
The ALMR presentation was concluded.
9:46:36 AM
SENATE BILL NO. 46
"An Act making capital appropriations and appropriations to
capitalize funds; and providing for an effective date."
This was the fifth hearing for this bill in the Senate Finance
Committee.
Department of Public Safety
New Anchorage Aircraft Hangar
$6,176,800 AHFC Bonds
Reference No.: 40007
Category: Public Protection
Location: Anchorage Areawide
House District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2009
One-Time Project
Construct new aircraft hangar at Lake Hood in Anchorage to
safeguard the department's aircraft assets and ensure safe,
dependable, and mission capable aircraft are available in the
most cost effective manner to support the department's mission
to preserve public peace, protect life, property, and
resources.
Co-Chair Green anticipated that "intensive discussion" could occur
regarding this item. Therefore she announced that a Committee
subcommittee consisting of Senator Bunde, chair; Senator Stedman;
and Senator Olson would be formed "to thoroughly" discuss it. The
Department would explain the request, but she asked that questions
be deferred to the subcommittee.
9:48:00 AM
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety communicated that the Department's
Commissioner would like to participate in the subcommittee
discussions. He shared that the proposal is to designate 16,000 of
the total 27,000 square foot facility to be utilized as a hangar
with the remainder to be used to house inventory and offices. The
proposed facility would be located near the "very small hangar" on
Anchorage's Lake Hood that is currently being utilized.
Firefighting Engines and Equipment
$500,000 Bond Funds
Reference No.: 37767
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2005
One-Time Project
Purchase of two fire training engines and related equipment
for the Fire Service Training offices in Fairbanks and Juneau.
This request supports Division of Fire Prevention's mission to
"prevent the loss of life and property from fire and
explosion". This project will assist in providing firefighter
training and certification to Alaska's emergency response
agencies, and will in turn assist in the protection and
prevention efforts of these responders at the local level.
Mr. Spencer noted that this request would replace two 20-year old
engines with two new fire-fighting engines at a cost of $250,000
each. The benefits derived would include the ability to train
personnel on the latest technology.
Co-Chair Green asked whether this request would duplicate similar
requests from the Division of Forestry, Department of Natural
Resources.
Mr. Spencer responded that these engines would "strictly be for
training purposes".
Senator Hoffman asked whether the majority of the training in the
State is conducted in Fairbanks or Juneau.
Mr. Spencer noted that these are the locations of two established
training centers. Information pertaining to training that might
occur elsewhere would be provided.
Statewide Facilities Maintenance
$718,800 Bond Funds
Reference No.: 38976
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This funding is for facilities maintenance for DPS occupied
state-owned buildings throughout Alaska. The department needs
adequate and maintained facilities to store evidence, protect
department-owned equipment, and provide employees good working
conditions.
Mr. Spencer stated that this request would address an extensive
list of deferred maintenance needs such as boiler replacements and
electrical upgrades. It should be emphasized that the list of items
included in the request "is subject to change" as an unexpected
need might arise at any of the State's facilities.
Co-Chair Green understood that the proposed funding mechanism for
this project is Amerada Hess (AH) bond funds.
Electronic Fingerprint Services - Live Scan
$465,000 Bond Funds
Reference No.: 39942
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2005 - 09/30/2008
One-Time Project
This project will replace six obsolete NEC LS-21 live scan
fingerprinting systems and expand the program by two new live
scan units. Live scan devices are network-connected devices
that capture fingerprint and photographic identification data
at locations where the most people are required to submit to
fingerprinting. This data is in a form to be rapidly shared
with other agencies to quickly identify person of interest
including actual or suspected terrorists. The devices provide
a means of capturing and sharing information critical to
threat recognition and intervention.
Mr. Spencer noted that the six live scan fingerprint machines
currently owned are "old and obsolete". Parts are difficult to
obtain "at best", and other machines are "cannibalized" for parts
when one breaks. The location of where the new machines would be
utilized is included in the back-up material.
Aircraft and Vessel Repair and Maintenance
$2,314,300 Bond Funds
Reference No.: 6121
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2006
On-Going Project
The Department of Public Safety annually requests repair and
maintenance funds for the DPS aircraft and vessels. These
funds are for the repair, replacement and maintenance
requirements of this department's aircraft and vessel fleet.
For example: the funds will be used to rebuild vessel and
aircraft engines and components when they reach the limits of
safe useful life. Large marine diesel engines and aircraft
engines require expert vendors to rebuild them. Many other
components of vessels and aircraft must be maintained or
replaced routinely to ensure safe operating conditions and to
comply with various safety regulations.
Mr. Spencer noted that this is an annual request through which
maintenance and repair work on the State's aircraft and vessels is
conducted.
Senator Olson asked whether the four aircraft rebuilds specified on
lines three and four, page 13 of the request, are due to accidents.
Mr. Spencer understood these repairs to be routine maintenance and
repair work. This would be verified.
Senator Olson asked for confirmation that this request would not
include repairs for the aircraft damaged in a January 19, 2005
accident.
Mr. Spencer communicated that this request was developed in October
2004. He noted, however, that the Department could utilize this
funding to repair any aircraft that suffered damages in an
accident.
Senator Olson concluded therefore that the aircraft damaged in
January was not included in the one million dollar component
specified for Aircraft Repairs.
Mr. Spencer affirmed. The projects included in this component were
forecast prior to that date. However, the list could be re-
prioritized to include another project were it deemed necessary.
Senator Olson noted that included in the Aircraft Repairs component
was an ASTAR infrared system and an item, referenced as TAWS that
he was unfamiliar with.
Mr. Spencer, being also unfamiliar with the term, stated that
further information would be provided.
Law Enforcement Equipment Replacement
$1,177,100 Bond Funds
Reference No.: 37774
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2006
On-Going Project
This funding will purchase new and replacement law enforcement
equipment for use by the Alaska State Troopers. The Division
of Alaska State Troopers relies upon capital improvement
project funding for these types of equipment purchases for
day-to-day operations in order to meet the department's
mission of ensuring public safety and enforcing state laws.
Mr. Spencer noted that this is an on-going program whose list of
prioritized projects could be revised depending on need.
Co-Chair Green inquired as to what alternate funding source would
be utilized, were bonds funds unavailable.
Mr. Spencer responded that the funding source for this request has
historically been the general fund.
Live Burn Building at Fairbanks Fire Training Center
$150,000 Bond Funds
Reference No.: 39940
Category: Public Protection
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2007
One-Time Project
This request constructs a small concrete/block live-fire
training burn building at the Fairbanks Fire Training Center.
This request supports Division of Fire Prevention's mission to
"prevent the loss of life and property from five and
explosion". This project will assist in providing firefighter
training and certification to Alaska's emergency response
agencies, and will in turn assist in the protection and
prevention efforts of these responders at the local level.
Mr. Spencer stated that this request would allow for "realistic"
firefighting training to occur.
Burn Panel Installation at Juneau Fire Training Center
$150,000 Bond Funds
Reference No.: 39939
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2006
One-Time Project
Non-protected burning can no longer take place in the Fire
Training Center in Juneau due to structural concerns. This
project installs thermal tiles and burn panels (limited to
those areas in which live fire training will be conducted).
This request supports Division of Fire Prevention's mission to
"prevent the loss of life and property from fire and
explosion." This project will assist Fire Service Training in
providing firefighter training and certification to Alaska's
emergency response agencies, and will in turn assist in the
protection and prevention efforts of these responders at the
local level.
Mr. Spencer stated that currently only small fires that do not
touch the facility's structural walls could be utilized for
training purposes. The improvements would allow more substantial
training to occur.
Rural Law Enforcement Training and Equipment
$2,000,000 Fed Rcpts
Reference No.: 38479
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 09/30/2006
One-Time Project
The Department of Justice, Office of Community Oriented
Policing Services, is expected to award the Department of
Public Safety $2,000,000 to train law enforcement personnel in
rural locations to increase their ability to deal with crisis
situations and to purchase equipment for better responses to
emergencies. Previous federal awards have been $1.8 million in
FFY2001, $600.0 in FFY2002, and $1.5 million in FFY2003.
Mr. Spencer stated that this appropriation, which is geared toward
Rural law enforcement, has been included in previous federal
budgets and is already included in the federal FFY05 budget.
Continue Village Public Safety Officers for Rural Bootlegging
Prevention and Enforcement Activities
$2,000,000 Fed Rcpts
Reference No.: 39352
Category: Law and Justice
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2004 - 06/30/2009
One-Time Project
This project will maintain and augment the number of Village
Public Safety Offices (VPSOs) funded in Federal FY2004 to
engage in bootlegging prevention and enforcement activities in
rural Alaskan villages.
Mr. Spencer stated that this appropriation has also been included
in the FFY05 budget. It would be a continuation of previous years'
support.
Senator Olson asked how much of the total four million federal
dollars identified in Reference Numbers 39352 and 38479 would be
earmarked to support the Village Public Safety Officers (VPSO)
component identified in the requests.
Mr. Spencer understood that 100-percent of the two million dollars
specified in Reference Number 39352 would support the VPSO program.
Senator Olson asked how much of the funding requested in Reference
Number 38479 would support the VPSO program.
Mr. Spencer noted that that money would be shared by a number of
entities, including the Alaska State Troopers VPSO program. More
information in this regard would be provided.
Senator Olson understood that a majority of that money has not been
utilized in the past to support the VPSO program.
Senator Hoffman asked whether an analysis of the success of the
program has been conducted.
Mr. Spencer replied in the negative. The Department's commissioner
has been involved in reviewing the VPSO program. Future plans for
this federal funding are unknown at this time.
Senator Hoffman clarified that his question specifically pertained
to the success of the bootlegging prevention program.
Mr. Spencer stated that the State has, with some success, exerted
tremendous effort in anti-bootlegging and addiction endeavors.
These efforts are addressed in the Department's Missions and
Measures, and statistics would be provided.
Marine Fisheries Patrol Improvements
$2,500,000 Fed Rcpts
Reference No.: 35825
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 10/01/2005 - 09/30/2006
On-Going Project
The Alaska State Legislature urged the division to seek
additional funds for its patrol efforts in federal waters of
the North Pacific Ocean and Bering Sea. This project is a
result of lengthy negotiations with the National Marine
Fisheries Service. Federally regulated marine fisheries occur
on a year-round basis in the coastal and offshore waters of
the State of Alaska. Both the federal and state governments
share an interest in ensuring these fisheries are protected.
Mr. Spencer stated that this patrol effort is an on-going joint
enforcement agreement between the State and the National Marine
Fisheries (NMF) Program. NMF reimburses the State for a portion of
vessel and aircraft expenses as well as funding for dockside
inspections. The program has worked well for both entities.
Senator Olson asked whether the $1.5 million Personal Services
expense designated on page 25 of the request's back-up material
would be utilized to support new employee positions.
Mr. Spencer clarified that that funding would support existing
positions that conduct dockside checks for federal violations.
Driving Simulator-Training Academy
$265,000 Fed Rcpts
Reference No.: 39956
Category: Law and Justice
Location: Sitka
Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 10/01/2005 - 09/30/2006
One-Time Project
This project is to purchase a FAAC Inc. DTS brand PP-2000
state of the art motion driving simulator to enhance the
Emergency Vehicle Operation Course for Law Enforcement
Officers taught at the Department of Public Safety Training
Academy.
Mr. Spencer expressed that while funding was provided in the FY 05
budget to support a driver training range, its capabilities are
limited. The item being requested could be likened to a flight
simulator in that it would allow for such things "as practiced
crashes to occur on a computer rather than in real life".
Language Section: Public Safety Aircraft, Vessel, and Parts
Sales
$300,000 GF/Prgm
Reference No.: 38439
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2006
On-Going Project
This will allow the department to use the proceeds from the
sale of aircraft and vessels and/or related parts and
accessories to fund repair and maintenance, replacement
equipment, acquisition of replacement aircraft and vessels.
Mr. Spencer reviewed the request.
Co-Chair Green asked whether this is the historical amount
requested for the program.
Mr. Spencer replied that the specific amounts for the past five
years would be provided. The amounts have varied.
Senator Olson asked how the money would be utilized.
Mr. Spencer stated it would be used to maintain and repair aircraft
and vessels.
Senator Olson noted that the Statement of Need specifies that the
funding could also be used to acquire replacement aircraft and
vessels.
Mr. Spencer affirmed; the funds have been used in the past to
assist in funding a replacement aircraft for one that might have
been sold.
Senator Stedman understood that the funding for many of these
projects has been "normally imbedded in the general fund section of
our budget". However, this year, other funding sources have been
identified. He found it "odd" that after years of general fund
funding, "a totally different funding source" have been identified
to support certain on-going operations.
Co-Chair Green voiced that it is also important to "carefully
assess" whether each project appropriately meets "the definition of
a capital project" rather than being "a hybrid of an operating
expense".
Senator Dyson agreed that capital projects should be reviewed.
However, the Legislature has "a responsibility to not be so
intimidating". To that point, he relayed several situations in
which a capital request should have been submitted, but was
withheld out of fear of it being rejected by the Legislature. One
such case involved keeping an antiquated front-end loader in
service rather than replacing it with a new model; more money was
spent trying to keep the loader operational than it would have cost
to replace it.
Senator Olson agreed that the Legislature has a responsibility to
provide safe equipment; however, requests such as the one for the
construction of a new aircraft hangar in Anchorage, as requested in
Reference Number 40007, exceeds "reasonability". Other options are
available. He appreciated Co-Chair Green's decision to assign the
hangar project to a subcommittee.
10:04:24 AM
University of Alaska
Life Safety and Code Compliance
$11,066,000
$10,466,000 ASLC Bonds
$ 600,000 Univ Rcpt
Reference No.: 40019
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
The projects within this request will address life safety,
code and Americans with Disabilities Act issues at the
university. As part of its primary mission, UA is committed to
the education and well-being of students.
JOE BEEDLE, Vice President for Finance, University of Alaska,
specified that $7.9 million of the $10.4 million Alaska Student
Loan Corporation (ASLC) bond funds would be provided to the
University of Alaska Fairbanks (UAF) campus and the $2.5 million
balance would support efforts at the University of Alaska Anchorage
(UAA) campus. The University of Alaska Southeast Campus (UAS) opted
to focus its bond funding efforts on the acquisition of land. That
effort would be addressed in a separate request.
Co-Chair Green noted that the projects that would be supported by
this request are located on page two and three of the back-up
material.
Instructional Science Laboratory Equipment
$1,400,000
$831,000 ASLC Bonds
$569,000 Gen Fund
Reference No.: 39997
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
Academic Equipment and Instructional Science Lab Equipment
Statewide. This request is for standard replacement of science
lab equipment used for academic instruction. The items
requested have reached their useful life and are either
obsolete or beyond repair. These items are necessary to
support the new labs and allow students to experience up-to-
date instrumentation techniques used in the sciences. As part
of its primary mission, UA is committed to the education and
well-being of students.
Mr. Beedle stated that this is "a small percentage" of the monetary
amount required to allow the University to "renew itself" and
maintain its competitiveness in classrooms and laboratories.
Co-Chair Green asked whether this funding would be limited to
equipment replacement.
Mr. Beedle affirmed that this is a small percentage of the total
amount required in that regard. The balance of the funding would be
provided "internally".
Administrative Information Technology Equipment Replacement
and Upgrades
$3,382,900
$3,003,400 ASLC Bonds
$ 379,500 Univ Rcpt
Reference No.: 39999
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-new Project
This request is necessary to meet UA's Administrative IT
equipment needs.
Mr. Beedle read the funding source breakout, as specified in the
backup material.
Strategic Land and Property Acquisitions
$10,940,000
$2,150,000 Bond Funds
$8,790,000 Univ Rcpt
Reference No.: 40002
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-Going Project
This project would allow for the purchase of critical
properties necessary for strategic expansion of campuses. As
part of its primary mission, UA is committed to the education
and well-being of students.
Mr. Beedle noted that UAS has identified the purchase of the Gitkov
Property near the Juneau campus as its highest priority. $2.15
million has been earmarked for this endeavor. A lease/purchase
agreement has been offered. This land currently houses the
University's recreation center and would eventually house the
University's bookstore, central student area, and business offices.
UAS would be investing an additional one million dollars toward
these upgrades.
Mr. Beedle informed the Committee that other tentative UA property
acquisitions are detailed on pages eight and nine of the back-up
material. Financing would be provided by the individual campuses or
revenue bonds.
Co-Chair Green asked whether another fund source had been
considered in lieu of bond funds for the acquisition of the Gitkov
property.
Mr. Beedle stated that the current plan, which is supported by
Governor Frank Murkowski, is to utilize Amerada Hess funds for the
endeavor. The University is "delighted" that it "is included in
that capital budget item utilizing that source". The Gitkov
property is strategically located and is important to UAS.
Nonetheless, the University would be willing to consider other
funding options.
Co-Chair Wilken asked that the definition of University receipts be
shared.
Mr. Beedle stated that the University is "blessed" that
approximately 60-percent of its operating budget is supported by
sources other than the general fund. These sources include the
University's ability to utilize research-based funds with the
federal government and resources generated from student receipts
such as tuition, housing, books, food, and recreational activity
fees. Research dollars have reached a "meaningful" level at the
University: $37 million in Facilities Administrative (F&A) research
reimbursement is expected in FY 06. The University is "charging
appropriate amounts to pay for those buildings and can in fact,
then dedicate some of that for a building and a debt service to
include interest, in research categories".
Co-Chair Green asked whether there is any limitation on the
purposes for which University Receipts (Univ Rcpts) could be used.
Mr. Beedle responded that the majority of Univ Rcpts are used to
support operating expenses. Approximately half of F&A Research
revenue is used to support associated administrative expenses.
Student receipts are used to support such things as housing and
activities. Students "are carrying an increasing load every year".
10:11:58 AM
Senator Olson asked regarding the four million dollars specified
for aviation expansion.
Mr. Beedle explained that the UAA aviation technology facility,
which is located at Anchorage's Merrill Field, is primarily funded
by federal dollars. It currently offers Federal Aviation
Administration (FAA) Controller Licenses, air travel simulation
equipment, and a two-year program in aviation technology. Adjacent
to the facility is an old hanger that the University has committed
to acquiring, as the current facility has limited apron space for
parking aircraft, including research planes. This expansion would
allow services to be increased. Funding for the four million dollar
project would be provided via a combination of a fund raising
campaign and federal dollars. The University is "optimistic" that
the goal would be obtained.
Systemwide Minor Renewal and Renovation
$17,611,500
$ 6,886,500 Bond Funds
$10,725,000 Univ Rcpt
Reference No.: 40023
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-underway Project
This request will provide needed funding to perform minor
renewal and renovation of laboratory and student space. As
part of its primary mission, UA is committed to the education
and well-being of students.
Mr. Beedle stated that this request would allow the UA to "keep
current" on its deferred maintenance needs. Funding would be
provided by a combination of Amerada Hess bonds and Univ Rcpts.
Deferred maintenance needs are un-specified; each campus is
provided the authority to address its own identified list of needs,
as funding would allow.
Senator Hoffman asked whether the exclusion of the Chukchi and
Kuskokwim campus's from the list would indicate that those campuses
have no major deferred maintenance needs.
Mr. Beedle stated that, to the contrary, there are deferred
maintenance needs at those campuses. However, those needs would be
addressed separately. The UA Board of Regents would be meeting at
the Bethel campus in April and a campus walk through would be
conducted. Substantial structural improvements are needed at that
campus. Approximately half of the GF funds appropriated to the UA
would be earmarked for community campus needs. University
President, Mark Hamilton, and the Board have supported "redirecting
operational dollars" to address community campuses deferred
maintenance needs. Receipt authority allowing the UA to redirect
funds toward community campuses' needs must occur.
Small Business Development
$832,000 Gen Fund
Reference No.: 40024
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 -06/30/2010
On-Going Project
The Small Business Development Center (SBDC) offers
specialized business assistance through its Procurement
Technical Assistance Center, the Technology and Research
Development Center, BUY ALASKA, the Manufacturing Assistance
Center and, the newly proposed Alaska Performance Excellence
Award program. The SBDC fulfills UA's commitment to the
citizens of Alaska to provide lifelong learning opportunities,
applied research, and economic development. SBDC fulfills the
top listed priorities of the university including; major
public service emphasis, small business development and
training, and efforts to building a diverse economy in Alaska.
Mr. Beedle stated that the Small Business Development Center is
sponsored by UAA. While its main office is located in Anchorage,
Statewide expansion plans are being furthered. This is an operating
budget request that is being pursued through the capital budget due
to the fact that both the Department of Commerce, Community and
Economic Development and UA are endeavoring to protect the budget,
as it was once "forgotten" and not included in the operating
budget. That year's funding was included in the capital budget and,
as a consequence, this funding request has continued in that manner
for the past ten years. This routing assures the UA President, the
UAA Chancellor, the Board, and the Center's directors that it would
receive the "special attention" that it needs as opposed to being
"absorbed and almost forgotten" in the academia's operating budget.
This funded is leveraged with the local entities that provide the
facility in which the Center is housed. The State match equates
therefore to approximately 25-percent of the overall budget. Also
included in this budget is an Office of Management and Budget,
Office of the Governor proposal to implement a new initiative
called the Alaska Performance Excellence Award, which is modeled
after the Malcolm Baldrige National Quality Program. This $135,000
increment would allow the State to become involved in a total
quality management program that is operating in many states.
Co-Chair Green remembered the year that the Center was
inadvertently omitted from the operating budget. She inquired as to
what other funding supports the Center.
Mr. Beedle replied that the Small Business Development program has
grown to include procurement and technical assistance efforts to
insure that small businesses, and their personnel, remain
competitive in regards to State contracts that are awarded. The Buy
Alaska program was also developed to promote Alaskan businesses.
Federal receipts and other program support are directed to the
University. Money and services from such entities as First National
Bank Alaska, other banks, communities, and other organizations are
received.
Co-Chair Green asked for verification that this is a State general
fund request amounting to $832,000.
Mr. Beedle affirmed. There is a minimum of a 50-percent match
requirement. The program's appropriation request has not been
adjusted to reflect inflation.
Co-Chair Green noted that the FY 2005 request was $450,000. She
asked that further information regarding the increase in the FY 06
request be provided; particularly as personnel expenses are not
provided for in capital request projects.
Mr. Beedle stated that the breakout of the expenses would be
provided.
[NOTE: Further clarification regarding the SBDC program funding
request is provided on page 35 of these minutes.]
Integrated Science Complex
$21,600,000 Bond Funds
Reference No.: 40025
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-new Project
This project will design and construct the first phase of a
new integrated Science complex and provide a concept design
for the subsequent phases that will complete integrated
sciences program delivery. The proposed project is in response
to a critical shortage of fundamental core science
instructional and laboratory space. Current facilities are
insufficient and inadequate to meet the current demand of 450
science majors and 4000 non-majors each semester. The new
facility will feature state of the art science academic labs,
and technology associated with distance delivery.
Mr. Beedle stated that this project, which has been identified by
the University's and UAA as their highest priority, is also the
University's "largest capital new construction project". These
Amerada Hess Bond Funds combined with $8.4 million in State General
Obligation Bonds that were approved in 2002 would fund the total
$30 million project, which would be located on the UAA campus. It
should be noted, however, that UAA estimates that in order to
properly build a "modern complex that would be able to handle the
demand by students and researchers" would cost approximately $70
million.
10:22:08 AM
Senator Bunde opined therefore that while the request is for $21.6
million, "the real request is for $71.6 million.
Mr. Beedle explained that following the Board of Regents' approval
of the University's budget request that was submitted to Governor
Frank Murkowski, they received an appeal from UAA asking that they
be allowed to present the full needs of the project. As noted by
Senator Bunde, there could be "a two-pronged approach" in that the
$21.6 million was the amount initially approved by the Board and
forwarded to the Governor. The UAA "campus has a greater need than
this".
Senator Bunde commented that, while the initial request is "fairly
substantial"; the $71.6 million is even more so. Nonetheless, he
appreciated knowing the entire funding need as opposed to
piecemealing a project together.
Senator Stedman, noting the University's strong desire to build
this complex, asked whether the project would have been included
had the Amerada Hess Bond Funds been unavailable. He characterized
the use of the Amerada Hess Bonds Funds as being "questionable at
best".
Mr. Beedle reiterated that this project is the University's highest
priority, and it would remain as such even were a different funding
source required. The University has calculated the amount it could
fund separate from this request. This is a basic core or "Type A
facility" structure "that should be an absolute obligation of the
State". The revenue generated by the University from student fees
and research income does quality as a means to support revenue bond
financing for the University's portion of the calculation. "Absent
State core funding" the University "does not have another funding
source. We are reliant upon the State for our core educational
facilities".
Center for Innovative Learning - Alaska Native Science and
Engineering Program
$4,955,000
$ 500,000 ASLC Bonds
$4,455,000 Univ Rcpt
Reference No.: 40026
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Center for Innovative Learning is a new campus facility being
planned to house learning programs that directly impact
student retention and student success.
Mr. Beedle stated that University Receipts, in the form of
donations, would totally fund the University's obligation to this
program. The Alaska Native Science and Engineering Program (ANSEP)
has been very successful and has "a 70-percent retention by Alaska
Native students in a very difficult program". This program is being
nationally recognized. A national science foundation grant assists
in supporting this program. Due to University's fundraising
efforts, three-quarters of the $4,455,000 in University Receipts
have been raised by donations from such entities as the Rasmuson
Foundation and a federal appropriation. The $500,000 GF funding
component is recommended by the Governor.
Senator Dyson asked that further information about ANSEP be
provided to his office.
Mr. Beedle acknowledged the request.
Co-Chair Wilken asked that current and past ANSEP student
enrollment numbers be provided.
Co-Chair Green asked that the information also be provided to her
office.
Senator Bunde reminded the Committee that in addition to
construction expenses, operation and maintenance expense funding
sources should be determined.
University of Alaska Anchorage Student Housing - Phase 2
$1,150,000
$ 150,000 Gen Fund
$1,000,000 Univ Rcpt
Reference No.: 40027
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-underway Project
This request will fund the construction of a new student
residence hall at UAA.
Mr. Beedle noted the $150,000 GF component would allow the project
planning to be completed. Project construction would be funded by
the one million dollar University Receipt Authority provided
through the Alaska Housing Finance Corporation (AHFC). UAA student
housing is currently full and there is an extensive waiting list.
Student housing can currently provide for eight percent of the
student enrollment. Land is available for the housing expansion.
The one million dollar component would be combined with a previous
allocation for a total of $9.1 million.
Senator Bunde questioned the reason for revenue bonds being used as
a fund source as he understood that university housing never
generates sufficient revenue to offset construction, operation and
maintenance expenses. There is a waiting list because dorms are
akin to subsidized housing. Therefore he inquired as to how revenue
would be generated to cover the cost of the bonds.
Mr. Beedle responded that with the generous support of the State,
housing has been provided at the three major University campuses.
Some community campuses have also utilized general funds to assist
in their housing needs. Equity that has built up in existing
housing combined with raising dorm room fees in facilities that
have 100-percent occupancy would provide the necessary funds. The
University housing has become self-supporting and the Board of
Regents has adopted policies specifying that things such as housing
would be self-supporting. While some campuses "need a little help,
we are "90-percent of the way there". Conventional financing is
achievable, as the University has become "very close 110 to 125
receipt to debt service".
Senator Bunde maintained his position that this housing is
subsidized housing. The State could fund things such as this rather
than assisting the elderly.
Biological Research and Diagnostic Facility
$4,760,000 Univ Rcpt
Reference No.: 40032
Category: University
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The new BiCS - Biological Research and Diagnostics Facility
(BiRD) is located on the UAF West Ridge, the center of science
and research activities for the UAF Campus. The facility
incorporates program components and space for laboratory
animal holding and care, procedure rooms, necropsy, diagnostic
laboratories, incinerator, and administrative space.
Mr. Beedle stated that the University's current research facility
houses thousands of research animals. Previous funding was provided
by a GO bond in 2002. Due to a funding shortfall at the UAF Campus,
the decision was made to allow federal research funds to pay for
the BiCS facility through a University revenue bond mechanism. This
request would allow the University to complete the construction of
the facility.
10:34:36 AM
West Ridge Research Logistical Support Facility
$7,000,000 Univ Rcpt
Reference No.: 40033
Category: University
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
As Research Programs expand on the UAF Campus, storage and
staging for field equipment and archival space are becoming a
growing issue. Many initiatives come with a certain amount of
field research equipment that is only used in the summer and
must be stored though the off season. Grants also come with
stipulations concerning the storage of research data,
specimens, and DNA in a safe collections area. The new
facility will provide adequate secure storage for UAF research
programs.
Mr. Beedle shared that a tremendous amount of research is conducted
in remote areas of the State. This request would allow the support
equipment for such research to be safely stored in one central
facility. The design has been finalized and sufficient proceeds
would be available to construct and support the storage facility.
Co-Chair Green asked whether this project's receipt authority
differs from the receipt authorities previously discussed.
Mr. Beedle explained that the receipt authorities do differ. The
receipt authority for this project is based on federal research
grant receipts that would pay the debt service of revenue bonds
that the University would issue. The previous receipt authorities
included such things as donations to the University Foundation for
such things as the Merrill Field Aviation project, other donations,
and student receipts.
Co-Chair Green asked that the funding sources for each of the
receipt authorities be identified in terms of it being a donation,
campus receipt, federal grant, or other types of receipts. This
would provide further funding clarification.
Mr. Beedle stated that this information is available and would be
provided. The Board of Regents had also requested such a breakout.
Biological and Computational Sciences Facility - Computational
Component
$600,000 Univ Rcpt
Reference No.: 40041
Category: University
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-new Project
Once complete, Biological and Computational Sciences Facility
(BiCS) will provide multi-use lab, classroom, and
computational space for research and academic purposes. BiCS
will be constructed in 4 phases. Phase 1, which constructed
utilities infrastructure and the Biological Research and
Diagnostics Facility, has been funded. In Phase 3A of
construction, the Computational Element of the Biological and
Computational Sciences Facility (BiCS) will provide much
needed research Computational Science space for the Arctic
Region Super Computer group.
Mr. Beedle stated that this request would provide for continuing
infrastructure development planning for future research needs
associated with the West Ridge BiCS facility.
10:37:00 AM
Rasmuson Reading Room
$5,000,000 Univ Rcpt
Reference No.: 40042
Category: University
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The Rusmuson Library Student Reading Room will provide a year-
round academic activity area for students on the UAF Campus.
The facility is specifically intended to provide an attractive
gathering space for students and group settings, and is
programmed to have a variety of study and seating areas,
conference rooms, and a coffee/snack bar component.
Mr. Beedle stated that the Rasmuson Library is the largest library
in the State. "It is used extensively for research and for
archives". The reading room furnishings would be "totally paid for
from private sources and/or students and/or concession" revenue.
Alaska Statehood Gallery
$1,400,000 Univ Rcpt
Reference No.: 40044
Category: University
Location: Fairbanks Areawide
Election District: Fairbanks Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
Phased-underway Project
This project proposes an addition to the University of Alaska
Museum of the North which would include an Alaska Statehood
Gallery, a full service café and dining area, and museum
collections management space (total 11,000 GSF) at an
estimated cost of $6 million. The funding source(s) for this
addition are planned to be totally private and not to require
state or university foundation money.
Mr. Beedle stated that the desire of this request is to locate and
store historical State documents in a Museum. Donations would fund
the project. A significant amount of the donations would be
received as the result of efforts on the part of Governor Frank
Murkowski and Congressman Don Young. Multiple locations for the
Museum are being considered. The project is conditional, based on
the Board of Regents approval of it being privately funded. Were
this request approved, this funding would be combined with previous
funding authority to provide a total of six million dollars for the
project. Work on the project would not begin until the funds were
raised.
Expansion of the Existing Anchorage Campus Megaplex structure
$16,000,000 Univ Rcpt
Reference No.: AMD 40038
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
Amendment
This project is an expansion of the existing campus megaplex
structure, including the Bookstore, Wells Fargo Sports Complex
and the Student Union to accommodate student enrollment
growth, expand sports and recreation opportunities and co-
locate student affairs functions in the central campus core.
The project will improve the overall accessibility of the
bookstore and student affairs programs for students, faculty,
staff and the public. The project is consistent with the UAA
master plan as a priority for the 2003-2013 timeframe.
Mr. Beedle reviewed the project. "It is typical that in modern
University settings, we expect the students to pay" for services
such as those specified in this request. Such things as student fee
assessments or bookstore proceeds would pay for the bonds.
School of Nursing Facility
$6,000,000 Univ Rcpt
Reference No.: AMD 40039
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project, Amendment
UAA is uniquely situated, surrounded by two of the largest
hospital complexes in Alaska. As the U-Med District complex
grows, partnerships with neighboring institutions continue to
emerge. For the past year, the University has been in
discussion with neighboring institutions about partnership of
joint use healthcare training facilities. Recently the Alaska
Native Tribal Health Consortium and the University formed a
workgroup to examine the possibilities for constructing a
joint use health-education facility on land owned by ANTHC
north of Ambassador Drive along Bragaw Street. This project
would fund planning efforts for the future facility.
Mr. Beedle stated that UAA, in partnership with the Alaska Native
Tribal Health Consortium (NTHC), is proposing to develop this
training complex to train nurses and allied health professionals.
The complex would be located at the Alaska Native Hospital Campus
in Anchorage. A portion of the facility would be specific to NTHC
and approximately three floors would be used for the Allied Health
and Nursing Training. Basic Integrated Science courses would be
required prerequisites to the Applied Integrated Science and
Nursing courses. The UAA Medical District adjoins the proposed site
and the University is excited to work with NTHC. This request would
allow for the development of a project funding mechanism, including
possible federal funding.
Co-Chair Green asked whether the program would be available to any
student.
Mr. Beedle assured that it would. The program would be an UAA
accredited nursing program with Statewide delivery.
Senator Olson, noting that there is a nationwide nursing shortage,
spoke in support of the program.
Co-Chair Wilken pointed out that the Small Business Development
Center, Reference Number 40467, had not yet been discussed. He
asked for further information about how that project might relate
to Small Business Development Project, Reference Number 40024.
Co-Chair Green stated that another project yet to be discussed is
the Procurement Technical Assistance Center Program, Reference
Number 40468.
Small Business Development Center
$500,000 Gen Fund
Reference No.: 40467
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-going Project
The Small Business Development Center (SBDC) fosters, promotes
and assists the growth and development of small businesses in
the State of Alaska through a multi-faceted business
assistance program. The Small Business Development Center
offers specialized business assistance through its Procurement
Technical Assistance Center, the Technology and Research
Development Center, Buy Alaska, the Manufacturing Assistance
Center, and the newly proposed Alaska Performance Excellence
Award program. The SBDC fulfills UA's commitment to the
citizens of Alaska to provide lifelong learning opportunities,
applied research, and economic development.
Procurement Technical Assistance Center Program
$147,000 Gen Fund
Category: University
Reference No.: 40468
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
On-going Project
The Procurement Technical Assistance Center is a nationwide
program to provide businesses with the marketing know-how and
technical tools they need to obtain and perform successfully
under federal, state and local government contracts.
Buy Alaska Program
$50,000 Gen Fund
Reference No.: 40469
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The Buy Alaska Program is a partnership of the University of
Alaska Small Business Development Center, Anchorage Economic
Development Corporation and the Alaskan business community.
The program assists businesses, consumers, and government
entities in finding competitive Alaskan sources for goods and
services.
Alaskan Performance Excellence Award
$135,000 Gen Fund
Reference No.: 40470
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
One-Time Project
The implementation of the proposed Alaska Performance
Excellence Award program will energize Alaska organizations to
improve efficiencies and customer and employee satisfaction;
it will provide Alaskan business, industry, government and
other organizations a competitive edge in the domestic and
global marketplace; and it facilitates Alaska's transition
from a resource-based economy to a performance based economy.
Mr. Beedle explained that an error had been made in regards to the
total budget for the Small Business Development Project, Reference
Number 40024. The $832,000 total request for the Small Business
Development Center (SBDC) included four projects: the Small
Business Development Center, Reference Number 40467 for $500,000;
the Procurement Technical Assistance Center Program, Reference
Number 40468 for $147,000; the Buy Alaska Program, Reference Number
40469 for $50,000; and the Alaska Performance Excellence Award,
Reference Number 40470 for $135,000.
Co-Chair Green understood therefore, that the expenses associated
with all four SBDC projects was inadvertently included in Reference
40024.
Mr. Beedle apologized for any confusion that might have resulted as
the result of this SBDC funding compilation. One GF authority, in
the amount of $832,000, is being requested to address the four
projects.
This concluded the University's capital budget overview.
Co-Chair Green announced that Pat Pitney, Director of Budget
Development and Institutional Planning, University of Alaska, was
available, via teleconference, to address Member's questions.
Senator Hoffman asked regarding the plans for the University's
unfinished facility in the community of Dillingham. The $1,200,000
designated to the project is not reflected in the University's FY
06 capital request.
Mr. Beedle informed the Committee that a $750,000 Federal Title III
grant has been assured. This funding would be used to complete the
classroom facility. Design bid solicitations would be advertised in
approximately 60 days.
Senator Hoffman understood that funding amounting to approximately
$1,200,000 would be required to complete the facility. He noted
that he would discuss this further with Mr. Beedle.
Co-Chair Green thanked the University for its presentation.
Co-Chair Green informed Mr. Felix MaGuire, who was participating
via teleconference, that the Department of Public Safety's request
for a New Anchorage Aircraft Hangar, Reference No.: 40007, had been
referred to a subcommittee, chaired by Senator Bunde. She asked
whether he would be willing to discuss his concerns with the
subcommittee.
FELIX MAGUIRE testified via teleconference from an offnet site and
voiced that he would discuss his concerns with the subcommittee.
Continuing, however, he noted that the federal government had
appointed an Aviation Advisory Board (AAB) to the State, and that
Congressional legislation is being advanced that would make the
Board a permanent council. "It is mystifying that that Board is not
being used as a sounding board for this type of proposal". To that
point, he urged the Committee to refer this project to the AAB.
Co-Chair Green communicated that the subcommittee would discuss
this further with Mr. McGuire.
Senator Bunde, subcommittee chair, noted that the project would be
reviewed by the AAB and its findings would be provided to the
subcommittee.
Alaska Housing Finance Corporation, Department of Revenue
10:48:40 AM
DAN FAUSKE, CEO/Executive Director, Alaska Housing Finance
Corporation, Department of Revenue, stated that the Alaska Housing
Finance Corporation (AHFC) FY 06 Capital budget is very similar to
the budgets presented over the past ten years. Notable changes or
differing budget amounts include the Teachers Housing program,
which has been well received. That program has evolved into a
combination grant/loan program that has been expanded to include
nursing housing and possibly public safety personnel. While these
expansions to the housing program are included in the request, the
details with the various departments are still being discussed.
Mr. Fauske communicated that AHFC "is doing very well". The most
notable issues being addressed are "on the federal side"; in
particular the changes and reductions that are occurring nationwide
in the federal Housing and Urban Development (HUD) program. He
recently attended meetings in Washington, DC to discuss this issue
and he voiced optimism that the moratorium that AHFC imposed on its
HUD voucher program, as result of the federal involvement, would be
sorted out. AHFC is frustrated that the federal HUD program ignored
the advice of a four million dollar study HUD had conducted that
advised them not to change their approach to the Alaska HUD program
as "Alaska was in a unique position". The process of getting the
Alaska HUD program back on track is underway. In addition to their
impact on AHFC's operating budget, the federal changes also
affected AHFC's capital budget.
10:50:16 AM
LES CAMPBELL, Budget Director, Alaska Housing Finance Corporation,
Department of Revenue, noted that the AHFC capital budget requests
are compiled in a booklet titled "Alaska Housing Finance
Corporation Budget Summary 'Results-Oriented' FY 2006 Draft. Draft
Capital Budget, March 23, 2005" [copy on file].
Housing Loan Program/Teacher/Health Professionals Housing
$6,281,800 Corporate Receipts
Reference No.: 37918
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to increase home ownership for
low-income borrowers by subsidizing interest rates based on
family income or family size.
Mr. Campbell noted that these funds would supplement the
Corporation's popular housing program and expand business
opportunities for providing affordable housing for Teachers, and
health professionals, and public safety employees.
Supplemental Housing Development Program
$4,300,000 Corporate Receipts
Reference No.: 6323
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 06/30/2010
The purpose of the program is to supplement federal housing
funds provided to Regional Housing Authorities to ensure safe,
decent, affordable housing throughout Alaska.
Mr. Campbell stated that the these funds would be used to
supplement federal housing funds in regards to such things as water
distribution, sewer hookups, electrical distribution systems, site
development, energy efficiency improvements, and road construction.
The funds are limited to 20-percent of the total development cost
per housing unit and are prohibited from supporting administrative
expenses of the Housing Authority.
Low-Income Weatherization Program
$1,800,000 Federal Receipts
$3,000,000 Corporate Receipts
Reference No.: 6332
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of the program is to provide cost-effective energy
improvements to homes of low-income families.
Mr. Campbell read the program information and noted that the
weatherization improvements provided by these funds would allow
moderate and low-income families to obtain decent, safe and
affordable housing. Energy improvements would include furnace and
electrical repairs, woodstove repairs, and egress windows.
Senator Bunde asked the definition of low-income.
Mr. Campbell responded that the low-income level is based on HUD's
published rates. This information would be provided.
Co-Chair Green agreed that it would be beneficial to have the list
of program qualifiers.
Senior Citizen's Housing Development Fund
$3,500,000 Corporate Funds
Reference No.: 6334
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of the program is to provide funds for the
development of senior citizen housing.
Mr. Campbell read the program description specified on page 3-17 of
the backup material.
Co-Chair Green noted that this funding would provide for the
projects specified on page 3-18 in the handout.
HUD Federal HOME Grant Program
$750,000 Corporate Receipts
$3,500,000 Federal Receipts
Reference No.: 6347
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to expand the supply of
affordable, low- and moderate-income housing and to strengthen
the ability of the State to design and implement strategies to
achieve an adequate supply of safe, energy-efficient, and
affordable housing.
Mr. Campbell read the purpose of the program. He noted that with
the exception of the Municipality of Anchorage, which has its own
separate program, this request would address AFHC projects on a
statewide basis.
HUD Capital Fund Program (formerly CGP)
$500,000 Federal Receipts
Reference No.: 6342
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to provide management
improvements to the Public Housing program.
Mr. Campbell stated that these federal funds are provided annually,
in grant form, to housing authorities "to help renovate and
modernize public housing units. These funds provide for work items
outside FY2003 bond package such as: administrative expenses,
tenant education projects, drug elimination projects, and
management improvements."
Senator Bunde asked whether any negative impact is anticipated in
light of "the federal deficit problem" and the fact that the State
has historically received a substantial amount of federal funding.
Mr. Campbell stated that these federal modernization fund levels
have decreased over the past several years. Therefore, the actual
appropriated amount of the $500,000 request for the management
improvement component is unknown.
Senator Bunde cautioned that it would be difficult to replace these
federal funds with State GF were they eliminated "at some point".
Mr. Fauske expressed that this concern has been communicated "loud
and clear" to HUD. AHFC would not be in "a position comfortable"
enough to present the Legislature with a request "to supplant
federal funding with AHFC corporate receipts".
Federal and Other Competitive Grants
$1,000,000 Corporate Receipts
$3,000,000 Federal Receipts
Reference No.: 6348
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to allow AHFC to apply for HUD,
other federal agency, and private foundation grants that
target the housing needs and supportive services of low-income
and special needs groups such as: senior citizens, the
mentally, physically, or developmentally disabled, or the
homeless. AHFC will also apply for energy related grants as
they relate to housing. When required, AHFC will provide the
needed matching funds. Some of the funds received will be
passed through to local non-profit sub-grantee organizations
that deliver housing and/or services.
Mr. Campbell read the purpose of the program as denoted in the
backup material.
Co-Chair Green asked whether the specified AHFC Corporate receipt
match is a flexible percentage.
Mr. Campbell informed that each program has its own match
specification. The majority of federal match levels range between
ten and 50-percent.
Competitive Grants for Public Housing
$250,000 Corporate Receipts
$750,000 Federal Receipts
Reference No.: 6350
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to allow AHFC to apply for HUD,
other federal agency, and private foundation grants that
target the housing needs of low-income and special needs
groups such as: senior citizens, the mentally ill, disabled,
or the homeless who are eligible for public and/or assisted
housing. AHFC will also apply for grants to prevent crime and
substance abuse in public housing and assist public housing
families attain economic self-sufficiency. When required, AHFC
will provide the needed match.
Mr. Campbell read the purpose of the program and noted that some of
these funds "would be passed on to local non-profit sub-grantee
organizations that deliver housing and/or services". This program
is directed toward public housing recipients within the State.
Energy Efficiency Monitoring Research
$500,000 Corporate Receipts
Reference No.: 6351
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to conduct research, analysis,
information dissemination, and interchange among members of
the industry, as well as, between the industry and the public.
Mr. Campbell read the program purpose and noted that these AHFC
funds would support "a designated grant to Cold Climate Housing
Research Center to conduct housing construction research, analysis,
and information dissemination among the housing industry and the
public. Data gathering and analysis is being continually related to
energy efficiency technology for homes constructed in northern
building and market conditions".
State Energy Program (SEP) Special Projects
$30,000 Corporate Receipts
$300,000 Federal Receipts
Reference No.: 32526
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to allow the State to
participate in special project grants offered by the Federal
Department of Energy to promote energy related technologies
and research.
Mr. Campbell shared that this funding would support such things as
"building technologies, codes and standards, wind and power
technologies renewable energy for remote areas, or transportation
technologies".
Mr. Campbell pointed out that the ten AHFC requests to this point
have been included in AHFC budget requests for approximately ten
years. The following six items are new AHFC projects that would
support the Corporation's mission.
Information Systems Server Upgrades & Replacements
$ 335,200 Corporate Receipts
Reference No.: 40066
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to replace or upgrade server
systems that are at or near the end of their life cycle.
Mr. Campbell stated that the outcomes of this project would
include: replacing systems/models that are at or near the end of
their life cycles; providing additional capacity for normal system
growth; improving disaster recovery capability; reducing
maintenance costs; improving application performance and improving
overall sever performance upgrades. The computer systems that would
be addressed are detailed in the "Program Description" section on
page 3-31 of the handout.
Central Terrace
$941,910 Federal Receipts
Reference No.: 40067
Category: Housing/Social Services
Location: Anchorage
Election District: 20
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to provide funding for the
disposition, demolition or sales of buildings in the Central
Terrace development
Mr. Campbell read the Phase 1 language on page 3-33 as follows.
Central Terrace Replacement-Phase 1 utilizes Federal funds to
replace old housing stock with alternative housing
opportunities in the Anchorage area. These funds will be used
to ready the units for disposal, demolition, or for sale. AHFC
will apply for Housing Choice Vouchers on a one for one
replacement.
Birch Park Window Replacement
$1,323,000 Corporate Receipts
Reference No.: 40069
Category: Housing/Social Services
Location: Fairbanks
Election District: 9
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to replace all of the windows
in Birch Park I and Birch Park II in Fairbanks.
Mr. Campbell read the purpose and the replacement information on
page 3-35 as follows.
Birch Park Window Replacement utilizes Corporate (AHFC) funds
to replace all the windows at Birch Park I and Birch Park II
in Fairbanks. Replacement of these windows will reduce energy
loss and increase comfort for the residents. These windows
need to be replaced to maintain the structural integrity of
the buildings. The new windows will be commercial grade with
standardized hardware. This project will lower routine
maintenance cost and provide for health and safety issues,
i.e. egress and security.
Statewide Project Improvements
$500,000 Corporate Receipts
Reference No.: 40068
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to provide funding to address
known and unknown conditions in AHFC's housing stock.
Mr. Campbell read the project purpose language and noted that it
would "provide structures and amenities not currently programmed,
it will enhance operations, allow quick response to ordinance and
code changes, and provide for quick response to unforeseen
conditions".
CO Detector Installation
$330,000 Corporate Receipts
Reference No.: 40070
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to install CO detectors in all
rental units of AHFC's housing stock.
Mr. Campbell read the program purpose. The required number of CO
detectors would be installed in each housing unit. The project
would make AHFC compliant with both State and local regulations.
Statewide Fire Protection System Investigation Project
$380,000 Corporate Receipts
Reference No.: 40071
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to determine and document the
fire protection needs for all rental units of AHFC's housing
stock.
Mr. Campbell expressed that this fire protection project would
"establish a database for maintaining functioning and code
compliant systems. It will also track the replacement of smoke and
fire detectors as well as track the life-span expiration of fire
alarm panel components and systems".
Co-Chair Green commented that the CO detector system might
eventually be a component of this project.
Homeless Assistance Program - Mental Health Bill
$500,000 Corporate Receipts
$500,000 Mental Health Trust Fund Receipts
Reference No.: 6359
Category: Housing/ Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this project is to support programs that
prevent homelessness by providing assistance to families in
imminent danger of becoming homeless, or those who are
currently homeless.
Mr. Campbell read the program information and stated that, "AHFC
funds "will be matched by Mental Health Trust Authority funds. Both
funds will be combined and administered as one program by AHFC".
Beneficiary and Special Needs Housing - Mental Health Bill
$1,200,000 Corporate Receipts
Reference No.: 6360
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2005 - 6/30/2010
The purpose of this program is to provide funds for Alaskan
non-profit service providers and housing developers to
increase housing opportunities to Alaska Mental Health Trust
beneficiaries and other special needs populations throughout
Alaska.
Mr. Campbell read the program purpose and noted that the projected
project outcomes, as detailed on page 3-45 of the handout, are as
follows.
· Congregate housing for people with mental illness,
developmental disabilities;
· Supportive housing, including assisted living for people
with mental, physical, or developmental disabilities, or
multiple disorders; and
· Transitional housing with support services for newly
recovering alcoholics and addicts.
Mr. Campbell stated that the funds could be "used for housing
development and/or residential accessibility modifications".
11:08:23 AM
Co-Chair Green asked whether this request would require a Mental
Health Trust Fund Match.
Mr. Campbell replied that no match would be required.
Co-Chair Green noted that this project has been included in the
AHFC budget for numerous years. To that point, she asked whether
the services provided in this program are required as part of the
AHFC mission.
Mr. Campbell affirmed that these services have been included in the
Corporation's strategic plans for several years. This year's
request is slightly lower than previous years' $1,700,000 amounts.
Co-Chair Wilken, referencing the Corporation's Six Year Plan
specified on page 3-47 of the backup material, asked whether the
Plan reflects the new dividend calculation that would become
effective in FY 2007.
Mr. Campbell affirmed that the Plan reflects the revised dividend
calculation methodology that would be implemented in FY 2007.
Mr. Fauske interjected that a significant amount of the
Corporation's bond obligations would be paid off by FY 2007. A
balance of approximately $22 million, down from a total $103
million, in General Obligation (GO) bonds would exist at that time.
As a result of this reduction in debt service, the revised dividend
calculation would equate to approximately the identical dividend
level the Corporation shares with the State under the current
calculation. The business plan anticipates growth in the dividend
amount. "Our business plan is working".
Co-Chair Wilken understood therefore that a decrease in debt
service should be considered when analyzing the $60,000,000
difference in the net income of FY 2006 and FY 2007. Thus, there
would be no expectation that General Funds (GF) would be required
to replace the decline in net income.
Mr. Campbell affirmed that a $30 million debt service decrease
would occur in FY 2006.
[NOTE: Recording technicalities resulted in the remaining minute of
the meeting being unrecorded.]
Mr. Fauske agreed that the bonds would be retiring.
ADJOURNMENT
Co-Chair Green adjourned the meeting at 11:10 AM.
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