Legislature(2007 - 2008)SENATE FINANCE 532
04/20/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB53 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 53 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 53
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for an
effective date."
This was the third hearing for this bill in the Senate Finance
Committee.
9:05:15 AM
Co-Chair Stedman announced that the Department of Public Safety
would be the first department to discuss their FY 2008 (FY 08)
capital budget requests today. They would be followed by the
Department of Administration, the Department of Environmental
Conservation, the Department of Revenue, the Department of
Transportation and Public Facilities, and the University of
Alaska.
[NOTE: A listing and explanation of each department's capital
budget projects were included in the bill's back-up material in
packets labeled "Project Review Listing FY 2008 Governor
Amended". Copies are on file.]
Department of Public Safety
$3,000,000
APSIN Redesign, Year 2 of 3-Year Plan
Reference No.: AMD41544
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 12/31/2008
The Alaska Public Safety Information Network (APSIN)
contains criminal history information used by law
enforcement agencies across Alaska. APSIN is a critical
operational tool for all law enforcement activities in
Alaska, and is a major tool used in meeting the
department's mission of protecting the public. This is an
ongoing, phased project to move the APSIN from the State of
Alaska legacy mainframe to a Microsoft and Intel server
platform, and at the same time enhance APSIN's capability.
$1,000,000 Federal Receipts (Fed Rcpts)
$2,000,000 General Funds (Gen Fund)
Amendment
Phased-underway
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, explained that the first project
identified in the Department's capital budget overview packet
was the Alaska Public Safety Information Network (APSIN). APSIN
is an information network utilized by local, State and federal
law enforcement officials. The federal government has been the
primary fund source for this system; however, the program is now
at a point where more State General Fund (GF) dollars are
required. He assured the Committee that the Department would
continue to seek federal funds where available.
Mr. Spencer explained that upgrades are necessary to bring the
system in compliance with new federal regulations pertaining to
such things as the national sex-offender registry. This upgrade
would also increase the system's efficiency and thereby improve
law enforcement officials' access to information.
Mr. Spencer identified this as an on-going project. The design
has been completed and the project is in the implementation
phase.
9:07:09 AM
Co-Chair Hoffman observed that ASPIN has been undergoing
upgrades for several years. To that point, he asked whether the
project would be completed, as initially anticipated, in FY 2009
(FY 09).
Mr. Spencer reminded that the funding allocated to this project
by the State during the project's initial year was less than
requested. That, combined with the fact that the FY 2007 federal
appropriation has not yet been received, might delay the
targeted FY 09 completion date. The Department would likely
submit an additional funding request if the project could not be
finished as initially designed.
9:07:54 AM
$2,000,000
Rural Law Enforcement Training and Equipment
Reference No.: 38479
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 09/30/2009
The U.S. 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. These funds
help the department achieve its mission to preserve public
peace and protect life and property in rural villages.
$2,000,000 Federal Receipts (Fed Rcpts)
On-going project
Mr. Spencer noted that this federal grant has been invaluable in
supporting "training and equipment for a variety of law
enforcement officers including Village Public Safety Officers
(VPSOs), Village Police Officers (VPOs)", and Tribal Police
Officers for the past five years.
Senator Dyson shared a discussion he had with Major General
Craig Campbell who is the Adjutant General/Commissioner of the
Department of Military and Veterans Affairs and the previous
director of Department of Public Safety regarding the concept of
allowing the National Guard to support VPSOs by cross training
and sharing equipment. He asked whether any progress has been
made in this regard.
Mr. Spencer, who was not involved in those conversations, would
report back on the status of that endeavor.
Senator Dyson suggested it might be helpful for Major General
Campbell to up-date the current Department of Public Safety
commissioner, Walt Monegan, on those discussions.
9:09:56 AM
$1,750,000
Marine Fisheries Patrol Improvements
Reference No.: 35825
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 09/30/2009
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.
$1,750,000 Fed Rcpts
On-going program
Mr. Spencer stated that this program is a continuation of a
joint State and federal fisheries agreement that has been in
effect for a minimum of seven years. It entails having Alaska
State Trooper Public Safety Technicians conduct dockside checks
and other activities in areas where federal government officials
are absent. This funding also provides for equipment and repairs
relating to the joint fisheries effort.
AT EASE 9:11:07 AM /9:11:20 AM
Senator Elton, noting the difficulty the Department has had in
maintaining an adequate level of law enforcement personnel,
asked whether this joint agreement might negatively impact the
Department's ability to perform its mission.
Mr. Spencer responded that the Department has experienced the
majority of its recruitment difficulties at the Trooper and VPSO
level rather than the category of Department employees providing
this federal enforcement assistance. This effort does not
detract from the Department's rural enforcement efforts as the
fisheries addressed by this agreement are "high valued
fisheries" which the State would work regardless. Many profess
that the effort actually "enhances law enforcement because it
provides funding to keep people in these areas", and thus,
allows Troopers to address other needs.
9:13:21 AM
$2,000,000
Village Public Safety Officers for Rural Bootlegging
Prevention and Enforcement
Reference No.: 39352
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 09/30/2009
This project will maintain and augment the number of
village public safety officers (VPSOs) to engage primarily
in bootlegging prevention and enforcement activities in
rural Alaskan villages. Additional VPSOs will help the
department achieve its mission to preserve public peace and
protect life and property in rural villages.
$2,000,000 Fed Rcpts
On-going project
Mr. Spencer shared that this on-going program utilizes federal
funding to increase the number of VPSOs to combat bootlegging
operations in rural areas of the State. However, a meeting with
the federal government has been scheduled because the parameters
for utilizing this funding are restrictive and have made it
difficult to use. One such restriction is that it cannot
supplant State funding. This and other conditions have limited
the expenditure of the six million federal dollars the State has
received to date.
Senator Dyson deduced therefore, that some of the previous
funding has not been spent.
Mr. Spencer affirmed.
Senator Dyson asked to the amount.
Mr. Spencer expressed that less than one million of the total
six million dollars has been spent to date.
Senator Dyson pointed out that the Committee has repeatedly
heard testimony regarding the difficulty the Department has
experienced in recruiting and training VPSOs. To that point, he
inquired to any changes the Department has made to counter that
situation.
Mr. Spencer advised that the Department has increased VPSO
salaries, instituted a retention bonus, and is considering
changes to its recruitment program. These changes would include
such things as a multi-tiered approach to police certification.
This might encourage people to become VPSOs as people, initially
hired as a VPSO, could begin "a career progression path". More
comprehensive information could be provided.
9:17:13 AM
Senator Dyson asked the current number of unfilled VSPO
positions in the Department.
Mr. Spencer responded that approximately 30 of a total 87
positions were currently vacant.
Senator Thomas asked whether bootlegging was similar to drug-
trafficking in that the plane, boat or vehicle used in the
unlawful activity could be confiscated.
Mr. Spencer affirmed it was.
Co-Chair Hoffman, who had discussed the changes being considered
to the VPSO program with Commissioner Monegan, voiced his
support of them. He also noted that Senator Olson was sponsoring
legislation that would "renew the task force on how to improve
the VPSO program".
Co-Chair Hoffman stated that, regardless of the approach taken,
increased dialogue with regional entities, including non-
profits, must occur. The effort to address the bootlegging issue
might also consider re-directing these dollars "to other areas
besides personnel".
9:19:16 AM
$500,000
Marine Fisheries Joint Patrol Helicopter
Reference No.: 42913
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 09/30/2009
The Alaska Department of Public Safety (DPS) requests
$500,000 in federal receipt authority for the purchase of
an R44 helicopter with an installed Alaska Land Mobile
(ALMR) radio system using funds from the National Oceanic
and Atmospheric Administration (NOAA). This helicopter will
provide support to the mission of protecting Cook Inlet
beluga whales, Prince William Sound black cod fisheries
monitoring, and documentation of the long line halibut
individual fishing quota fisheries in districts 3A/3B in
the Gulf of Alaska. This request is separate from the joint
operational request known as the Marine Fisheries Patrol
Improvements.
$500,000 Fed Rcpts
One-Time Project
Mr. Spencer informed that this request has been withdrawn, as
the federal funds would not be forthcoming.
Senator Olson asked whether the Department has developed an
alternate plan to fill the void of not having this helicopter
available for the Prince William Sound fisheries.
Mr. Spencer communicated that the Department would continue to
utilize existing resources. The helicopter would have enhanced
those efforts.
9:20:07 AM
$900,000
Aircraft and Vessel Repair and Maintenance
Reference No.: AMD6121
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2008
The Department of Public Safety (DPS) annually requests
repair and maintenance funds for department aircraft and
vessels. These assets are crucial tools used to achieve the
department's mission.
These funds are for the repair and maintenance requirements
of this department's aircraft and vessel fleet. For
example, funds are used to rebuild vessel and aircraft
engines may 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.
$900,000 Gen Fund
On-going project
Mr. Spencer stated that funds are required to conduct normal or
extraordinary repairs and maintenance on the State's aircraft
and vessels; specifically mandated aircraft maintenance or
avionic upgrades. The Department internally allocates funds
between aircraft and vessels; and, while the backup material
identifies items that are anticipated to require attention, the
allocations are often reallocated as the year progresses. For
example, funds might be reallocated to repair an engine that
breaks.
Co-Chair Stedman asked why the FY 09 increment reflects a
$400,000 increase over the FY 08 request.
Mr. Spencer responded that the Department considered the FY 08
requested amount to be the "bare minimum for adequate
maintenance" needs. While the amount required could vary from
one year to another, the cost of repairing vessels and aircraft
is not decreasing.
Mr. Spencer provided an example of how costs escalate. The
Department had received an approximate $80,000 bid for
maintenance work on a Caravan aircraft engine. "As is often the
case on boats and aircraft", when the work commenced, other
items were found to be in need of repair. The job has now
increased to approximately $160,000. The Department must receive
sufficient funding to keep its aircraft and vessels in
compliance with existing standards.
Mr. Spencer also noted that the likelihood of damage to State's
vessels and aircraft is acerbated by the fact that they are
often required to travel to places others would not.
Mr. Spencer would not be surprised if the FY 09 request
increased beyond the $1,300,000 projection.
Co-Chair Hoffman noted that this capital budget item typically
requests funding for projects that extend beyond one year. Over
the past three years, the Department has been appropriated
approximately four million dollars. To that point, he asked the
amount of funding currently in the account.
Mr. Spencer stated that the balance of unencumbered funds for
vessel repair and maintenance is currently $1.3 million;
however, it is anticipated that the entirety of those funds and
the funding being requested for FY 08 would be spent by the end
of the FY 08 fiscal year. For instance, work scheduled on the
Patrol Vessel (P/V) Enforcer would be, at a minimum, $1.4
million. Large aircraft projects have also been scheduled.
Co-Chair Hoffman asked the Department to provide a list of the
Department's aircraft and the location they were based.
Co-Chair Stedman also requested the Department provide a
"forward look" of the expenses that would be required as the
Department's aircraft and vessels age.
Mr. Spencer acknowledged.
Senator Olson suggested that the cost of repair work for vessels
and aircraft be differentiated in the request. He worried that
this $900,000 request for maintenance on both vessels and
aircraft might be insufficient to adequately conduct annual
maintenance work on the entirety of aircraft in the fleet.
9:26:05 AM
Senator Olson stated that the backup material for this request
appeared to lean toward routine maintenance. To that point, he
asked how many aircraft accidents had occurred this past year.
Mr. Spencer stated that this information would be compiled and
provided at a later time.
Senator Olson asked whether the cost associated with accidents
was included in this request.
Mr. Spencer specified that some of the costs attributable to
accidents would be addressed by risk management.
9:26:43 AM
Senator Huggins echoed Senator Olson's concern about the level
of funding being requested. "It is minuscule when you look at
the fleet and the high cost of maintenance on boats and
airplanes".
Senator Huggins inquired to the status of the jet in the
Department's fleet that the State was attempting to dispose of.
Mr. Spencer communicated that a contract was recently awarded to
an aircraft broker and marketing efforts are underway.
Senator Huggins feared that the money being spent to market the
jet might "erode the value of the aircraft". A decision
regarding the plane's status should be made prior to the point
where that occurred.
Mr. Spencer clarified that the marketing costs to date have not
been excessive. For instance, the cost of the four auctions the
State conducted on EBay amounted to no more than $320. A 1.49
percent commission would be paid to the broker only if the
airplane was sold. "That certainly seems reasonable."
Mr. Spencer assured the Committee that retaining the value of
the aircraft is a priority. "It is a valuable aircraft". The
attempt to sell the jet on EBay was vastly different than
listing it with a broker.
Senator Huggins asked the operational status of the aircraft.
Mr. Spencer informed the Committee that the aircraft is not
being operated on a regular basis. Its flying is limited to
keeping the pilots' qualifications current and to meeting engine
and other operational standards. Routine maintenance is being
performed to ensure the plane is readily operational in case of
need.
Mr. Spencer qualified that the jet, while housed in the
Department of Public Safety, has been utilized by both the
Department of Public Safety and the Department of Corrections to
transport people, including the Governor and prisoners. No
recent transports have occurred.
9:29:21 AM
Co-Chair Hoffman, referring to the plane as "the Governor's
jet", asked how much the plane's maintenance costs would be in
FY 08.
Mr. Spencer communicated that the routine maintenance expenses
associated with such things as required flight-hour checks would
be fairly minimal. Added to that, however, would be the $181
charge assessed on each of the two engines per hour of
operation. These funds are held on deposit to provide for engine
repairs or overhauls. These would be the only real expenses
other than fuel.
9:30:49 AM
In response to another question from Co-Chair Hoffman, Mr.
Spencer calculated that the total annual costs would be less
than $20,000.
Co-Chair Stedman asked the Department to develop a cost analysis
of having substituted the jet for the King Air aircrafts
previously utilized by the Department and the cost of
transitioning back to those or other aircraft once the jet was
sold. The comparison should include liquidation value and
replacement estimates, maintenance, and training costs in
addition to the cost of having pilots standing by when the jet
was not being used.
Senator Elton, noting that the Patrol Vessel (PV) Enforcer was
the newest vessel in the Department's fleet, asked for further
information about the $1.4 million expense identified in the
request for that vessel.
Co-Chair Stedman asked the Department to provide the information
to all Committee members once it was compiled.
Mr. Spencer agreed. The Department had already planned to
discuss this project in more depth with the Committee.
9:33:15 AM
Senator Olson asked whether the jet's pilots were Department
personnel or contract pilots. He also asked whether the State
paid for their "type-rating".
Mr. Spencer explained that four of the Department's existing
pilots had been cross-trained, at a cost of approximately
$97,000, to fly the jet. Two of those are maintaining their jet
ratings. Prior to flying the jet, these four pilots had flown
the King Airs.
Senator Olson asked whether these pilots would continue their
employment with the State until the jet was sold or whether new
pilots must be hired and trained.
Mr. Spencer could not provide an answer to this question.
Co-Chair Stedman asked the Department to provide any requested
information to his office.
9:34:21 AM
$500,000
Law Enforcement Equipment Replacement (AST & AWT)
Reference No.: AMD37774
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2008
This funding will purchase new and replacement law
enforcement equipment for use by the Alaska State Troopers
and Alaska Wildlife Troopers. The Alaska State Troopers and
Alaska Wildlife Troopers rely upon capital improvement
project funding for equipment purchases for day-to-day
operations in order to meet the department's mission of
ensuring public safety and enforcing state laws.
$500,000 Gen Fund
On-going project
Mr. Spencer stated that this recurring but "bare minimum"
request would provide ammunition, uniforms, bullet-proof vests,
firearms, four-wheelers, snow machines, computer equipment,
cameras, and other necessary items to law enforcement personnel.
The listing of items is purposely vague as the list is re-
prioritized as necessary.
Department of Administration
9:36:49 AM
$856,000
Microsoft Directory and Messaging Project Phase 2
Reference No.: AMD43101
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Live Communication Server - Mid Tier. Consolidated File and
Print - Mid Tier. Sharepoint Portal - Mid Tier. This
amendment reduces the FY2008 capital project request by
$939,000 from $1,795,000 to the amended request of $856,000
reducing the scope of the project.
$856,000 Information Services Fund (Info Svc)
Phased-underway project
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration, explained that this request would
allow for the purchase of computer software and hardware and
consulting services, as necessary, "to coordinate and
consolidate file and print servers". This would enhance
Executive Branch agencies' abilities to share documents, control
internet website content and increase other capacities. This
multiyear project began in FY 06 and is expected to conclude in
FY 09.
AT EASE 9:37:50 AM / 9:37:56 AM
$4,400,000
Information Technology Systems Security
Reference No.: AMD43102
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Security Systems, including wireless security, security
operations center, security awareness training, LAN switch
replacement, and others are needed.
$4,400,000 Info Svc
On-going project
Mr. Swanson stated that this project would continue the effort
begun in FY 05 to enhance the security of the State's data and
equipment via encryption and other security measures.
9:38:59 AM
$2,500,000
Public Building Fund Facilities Deferred Maintenance
Reference No.: 43095
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Funding is necessary for continued maintenance of state
owned facilities that make up the group known as Public
Building Fund Facilities. These facilities include the
State Office Building, the Alaska Office Building, the
Community Building, the Douglas Island Building, the Atwood
Building, the Fairbanks Regional Office Building, the
Public Safety Building, the Court Plaza Building, and the
Palmer State Office Building.
$2,500,000 Public Building Fund (Public Bldg)
On-going project
Mr. Swanson read the summary of need and the list of facilities
that would be addressed. The money supporting this annual
request is collected through the Department's public building
rent rates. A complete list of the Department's maintenance
needs is included in the request for context purposes.
9:40:43 AM
Senator Elton inquired to the process for prioritizing
maintenance projects; specifically the decision to include a
$400,000 heated sidewalk project at the Atwood Building complex
in the list.
Mr. Swanson admitted that the heated sidewalk project had also
caught his attention. Discussions in that regard have since
ensued. It is unclear at the moment whether that project will
remain on the list.
Mr. Swanson stated that the Department's facilities' manager in
conjunction with the occupants of a building typically develop
the prioritization list. The heated sidewalk project was part of
a nearby parking garage construction project at the Atwood
Building. He reiterated that a firm decision on the heated
sidewalk project has yet to be made.
Senator Elton acknowledged.
Co-Chair Stedman considered Senator Elton's question to have
merit. He asked the Department to provide further information on
the heated sidewalk project and its connectivity with the Atwood
Building parking garage.
Mr. Swanson affirmed.
Co-Chair Stedman asked for further information about the $13
million identified for the Palmer State Office Building to
accommodate future tenant occupancy, as depicted on page 8 of
the Department's backup material.
9:42:19 AM
Mr. Swanson clarified that, while this project was included in
the Department's comprehensive list of maintenance needs, it is
not included in the list of projects for FY 08. Further
information on that project would be provided.
Co-Chair Stedman pointed out that oftentimes renovations to
accommodate a tenant's needs are addressed as "lease-hold
improvements".
Mr. Swanson affirmed that the specifics of the project would be
provided.
9:43:24 AM
$650,000
License Plates, Tabs and Manuals
Reference No.: 43267
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Division of Motor Vehicles (DMV) needs to maintain
statewide stockage levels of license plates and tabs for
their required continued issuance. The division is required
by statute AS 28.10 to issue plates and tabs and cannot run
out. Three different driver manuals must be available at
all DMV offices.
$650,000 Receipt Supported Services (Rcpt Svcs)
On-going project
Mr. Swanson reminded the Committee that this request is only
submitted when the State's license plate and driver manual
inventory is insufficient to meet demand. No request had been
submitted in FY 07. Funding is provided by the Division of Motor
Vehicles (DMV) receipt supported services.
9:43:59 AM
$124,000
Credit Card Compliance
Reference No.: AMD43327
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2008
The State of Alaska is currently out of compliance with
Payment Card Industry (PCI) Data Security Standard
requirements of Visa, MasterCard, American Express and
DiscoverCard. Failure to correct this will jeopardize the
state's ability to accept credit card payments.
$124,000 Info Svc
One-Time Project
Mr. Swanson stated that this request would allow the Department
to purchase computer hardware and software and, if necessary,
consultant services, to bring the State into compliance with
national credit card regulations. Absent these upgrades the
State would be unable to accept credit card payments.
9:44:36 AM
$350,000
Alaska Public Offices Commission Electronic Filing -
Programming and Development
Reference No.: AMD43099
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2009
The Commission is requesting an additional $350,000 to
complete the project to automate electronic filing and
create an electronic library of disclosure documents.
$350,000 Gen Fund
Phased-underway project
Mr. Swanson stated that this project would allow the Department
to complete a project that would allow entities to file required
financial documents, campaign disclosure reports, and lobbying
reports electronically.
9:45:22 AM
$150,000
Division of Motor Vehicles Disk Storage
Reference No.: AMD43098
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2008
Funds would provide for the purchase of disk storage space
for digital documents, including: digital driver license
photos, scanned images of all Division of Motor Vehicles
(DMV) transactions (formerly microfilmed), and documents
required by the federal Real ID Act.
$150,000 Rcpt Svcs
One-Time Project
Mr. Swanson explained that this request would allow the
Department to purchase disk storage space for digital documents
such as driver's license photos. The recent advent of digital
driver's licenses has dramatically changed the State's digital
data storage needs. The storage space would also allow DMV
documents that were previously stored on microfilm to be stored
digitally. This would increase efficiency and storage
capabilities.
Co-Chair Stedman understood that storing driver's license photos
digitally would be a benefit to law enforcement officers. They
can access the information faster.
Mr. Swanson affirmed. The information on driver's license is now
in digital format.
Co-Chair Stedman asked when DMV began replacing traditional
driver's licenses with digital ones.
Mr. Swanson specified that digital driver's licenses have been
issued for approximately three years.
9:46:54 AM
Senator Elton asked whether the documents that would be scanned
would include those an individual would provide DMV as proof of
identity.
Mr. Swanson understood that such documents would be included in
the list of items that would be scanned. This request would
allow the Department to replace the scanners it now has with
high speed scanners.
In response to a follow-up question from Senator Elton, Mr.
Swanson affirmed that a person's identity verification
documentation would be digitally scanned. A complete list of the
items slated for digital storage could be provided.
Senator Elton would appreciate that information. "This gives the
libertarian part of me heartburn." He identified this collection
of information as one of the reasons he was concerned about
spending State dollars to comply with the federal Real ID Act.
He applauded the actions of other states that have "put their
foot down on the Real ID mandates from the federal government".
Mr. Swanson responded that he would verify what documents were
scheduled to be scanned. As he understood it, the bulk of the
storage needs specified in this request would relate to storing
driver's license information and photos.
Co-Chair Stedman announced he had been unaware of the degree of
documentation that might be included in this effort.
9:49:11 AM
$24,117,215
State of Alaska Telecommunications System (SATS)/Alaska
Land Mobile Radio (ALMR) Build Out and Support Projects
Reference No.: AMD41808
Category: Public Protection
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2009
This request continues the Alaska Land Mobile Radio (ALMR)
build-out and support of the State of Alaska
Telecommunications System (SATS) microwave network. This
amendment adds State funding to continue the State's
responsibility for system build-out.
$14,117,215 Fed Rcpts
$10,000,000 Master Lease Line of Credit (LOC)
On-Going Project
Mr. Swanson explained that the State's $10,000,000 Master Lease
Line of Credit (LOC) funding would purchase and install
equipment to enhance the State's telecommunication microwave
system's capabilities. The equipment would include such things
as handheld Alaska Mobile Land (AMLR) radios, power lines, solar
panels, batteries, microwave radio equipment, and equipment to
support the addition of two new AMLR sites. Upgrades to existing
AMLR software would also be funded.
Senator Dyson asked whether this funding would support AMLR FY
08 operating costs.
Mr. Swanson responded in the negative.
Senator Dyson reminded the Committee they had previously denied
"the funding for the system as it exists and so, if that was a
policy decision we ought to look closely at spending more money
on a system that we have chosen to not support with the
operating budget". While he understood that that decision might
"be fixed in the process", he urged for consistency in both the
operating and capital budget approach. The components of the
system that are operational are working well "in spite of its
very troubled past".
Senator Dyson also understood that the operations of the system
would be supported by its users. This is the early stage of
transitioning that responsibility to the entities "whose traffic
is being carried on the system". He suggested that a report on
the transition activity be developed. It should also provide
information on future usage projections.
Co-Chair Hoffman pointed out that the Operating and Maintenance
Costs section of the request affirms there being no project
development, ongoing operating or one-time startup costs
included in this request.
Co-Chair Hoffman expressed that rather than changing the ongoing
system as "alluded" by Senator Dyson, the Committee simply
"denied an increment that was requested for maintenance".
Co-Chair Hoffman also announced that discussions with the
Commissioner have been held to determine how to address those
needs.
9:52:53 AM
$17,000,000
Telephone System Replacement and Stabilization Phase 3
Reference No.: AMD43100
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2009
Telephone Replacement - Voice Over Internet Protocol (VoIP)
$17,000,000 Master LOC
Phased - Underway project
Mr. Swanson advised that this funding would further the effort
to replace the current "Legacy" telephone system. The systems in
Juneau, Anchorage, and Fairbanks would be addressed in this
phase.
9:53:33 AM
$41,000,000
Statewide Administrative Systems Replacement Phase 2 -
Financials and Procurement System
Reference No.: AMD40081
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2011
The Department of Administration is responsible for
operating statewide accounting and procurement systems.
These systems are aging, and need to be replaced.
$41,000,000 Master LOC
Phased-underway project
Mr. Swanson stated that this funding would support the next
phase of the project. The current accounting system is
antiquated. One of its key problems is that the format it is
written in is no longer being taught is colleges and
universities. This is making it difficult to find programmers.
Co-Chair Stedman asked why this project had been offered as an
amendment rather than being included in the Administration's
initial capital budget proposal.
Mr. Swanson communicated that the new Administration had wanted
"more time to get familiar and make sure this was the direction
they wanted to go" since the project was so expensive.
Co-Chair Hoffman recommended that this project be thoroughly
scrutinized. Even though the project would not require any
general fund support in FY 08, it would require a $15 million
general fund increment annually from FY 2010 through FY 2013,
for a total of $60 million.
Co-Chair Hoffman inquired to the expected life cycle of the new
system.
Mr. Swanson stated that this information would be provided as he
did not have the information with him.
9:56:27 AM
Mr. Swanson stated that while this concludes the Department's
Capital budget requests, there was another item he would like to
discuss. That being a FY 08 $5.8 million general fund request to
begin the debt retirement of the last three capital projects
just reviewed. The Department worked with the Department of
Revenue to develop this estimate. Further work would be
conducted to determine the appropriate structure and timing of
the debt that would be incurred for these projects.
AT EASE 9:57:15 AM / 9:57:29 AM
Mr. Swanson restated the request. A $5.8 million general fund
request was included in the debt retirement component of the
bill for FY 08. This is the amount estimated to allow the
Department to begin retiring the debt for the State of Alaska
Telecommunications System (SATS) Alaska Land Mobile Radio (ALMR)
Build Out and Support Project Reference Number AMD41808; the
Telephone System Replacement and Stabilization Phase 3 Reference
Number AMD43100; and the Statewide Administrative System
Replacement Phase 2-Financials and Procurement System Reference
Number AMD40081.
Co-Chair Hoffman calculated that the total debt for the three
projects would be $68 million. He asked for further information
about the debt terms.
Mr. Swanson advised that the specifics of this debt retirement
were currently unavailable. The Department was working with the
Department of Revenue to determine what "the most advantageous
approach would be".
Co-Chair Stedman asked Mr. Swanson to provide specifics to the
Committee as the process developed.
RECESS 9:59:33 AM / 1:40:37 PM
Co-Chair Stedman called the meeting back to order.
Department of Environmental Conservation
MIKE MAHER, Director, Division of Information and Administrative
Services, Department of Environmental Conservation introduced
himself. He was available to answer Committee questions.
$80,536,755
Water and Wastewater Infrastructure Projects
Reference No.: 41376
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2013
This project provides funding for grants to communities to
plan, design and construct sanitation (water, sewer and
solid waste) facilities and the associated operating costs
of the Facility construction component within the Division
of Water. It contributes to the Division's End Result 2 -
Citizens are Protected from Unsafe Sanitary Practices.
Drinking water and sewer projects constructed with grant
funds protect residents from unsafe sanitary conditions.
$55,708,001 Federal Receipts (Fed Rcpts)
$15,235,999 General Fund (G/F) Match
$ 9,092,755 General Funds (Gen Fund)
$ 500,000 Statutory Designated Receipts (Stat Desig)
State Match Required
On-Going Project
1:42:00 PM
BILL GRIFFITH, Program Manager, Facility Programs, Division of
Water, Department of Environmental Conservation informed the
Committee that the majority of this funding authority would
allow the Department to receive and expend federal Environmental
Protection Agency (EPA), federal Department of Agriculture
(USDA), The Denali Commission, federal Department of Health and
Human Services , and Indian Health Service Program funds. $15.7
million of the total $24.8 million in State funding was the
required match to the federal funds. The nine million dollar
balance would address six projects that were "ineligible for
federal assistance due to the size of the communities".
Mr. Griffith clarified that large community projects would be
managed by the Department's Municipal Matching Grants and Loan
Program. Projects in small rural communities would be managed by
the Department's Village Safe Water Program.
1:43:30 PM
Co-Chair Stedman asked for a brief overview of each of the
projects included in this master allocation.
Mr. Griffith reviewed the individual projects included in the
Water and Wastewater Infrastructure Projects summary, reference
number 441376, as follows.
$3,060,000
Anchorage
Reference No.: AMD 43178
Category: Health/Human Services
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Anchorage sanitation infrastructure improvements
included in approved state grant.
$3,060,000 Gen Fund
One-Time Project
Mr. Griffith stated that this project is phase four of the Loop
Water Transmission Main in Anchorage.
$820,759
Beaver
Reference No.: 43179
Category: Health/Human Services
Location: Beaver
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
Beaver sanitation and infrastructure improvements
included in approved state and federal grants.
$615,569 Fed Rcpts
$205,190 G/F Match
State Match Required
One-Time Project
Mr. Griffith advised this would be a house plumbing project.
$7,595,244
Reference No.: 43180
Bethel
Category: Health/Human Services
Location: Bethel
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
Bethel sanitation infrastructure improvements
included in approved state and federal grants.
$5,696,418 Fed Rcpts
$1,898,806 G/F Match
State Match Required
One-Time Project
Mr. Griffith noted that this project would address the
community's QFC Number Two Lift Station and the first phase of a
waste water treatment facility.
$70,000
Brevig Mission
Reference No.: 43181
Category: Health/Human Services
Location: Brevig Mission
Election District: Bering Straits
Estimated Project Dates: 07/01/2007 - 06/30/2012
Summary of Need: Brevig Mission sanitation
infrastructure improvement planning included in
approved state and federal grants.
$52,500 Fed Rcpts
$17,500 G/F Match
State Match Required
One-Time Project
Mr. Griffith stated that this request would further a sanitation
comprehensive plan for the community.
$561,000
Chignik Bay
Reference No.: 43182
Category: Health/Human Services
Location: Chignik
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2007 - 06/30/2012
Chignik sanitation infrastructure improvements
included in approved state and federal grants.
$420,750 Fed Rcpts
$140,250 G/F Match
State Match Required
One-Time Project
Mr. Griffith expressed that this request would allow sewer
improvements to be undertaken in the community.
$167,400
Deering
Reference No.: 43183
Category: Health/Human Services
Location: Deering
Election District: Arctic
Estimated Project Dates: 07/01/2007 - 06/30/2012
Deering sanitation infrastructure improvement
planning included in approved state and federal
grants.
$125,550 Fed Rcpts
$ 41,850 G/F Match
State Match Required
One-Time Project
Mr. Griffith stated this funding would allow a piped water
feasibility study to be undertaken.
$1,589,291
Dillingham
Reference No.: 43184
Category: Health/Human Services
Location: Dillingham
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2007 - 06/30/2012
Dillingham sanitation infrastructure improvements
included in approved state and federal grants.
$1,191,968 Fed Rcpts
$ 397,323 G/F Match
State Match Required
One-Time Project
Mr. Griffith remarked that this funding would allow for the
second phase of a water system improvement project.
$191,440
Ekwok
Reference No.: 43185
Category: Health/Human Services
Location: Ekwok
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2007 - 06/30/2012
Ekwok sanitation infrastructure improvements
included in approved state and federal grants.
$143,580 Fed Rcpts
$ 47,860 G/F Match
State Match Required
One-Time Project
Mr. Griffith noted this request would address sewer system
improvements.
$39,751
Elim
Reference No.: 43186
Category: Health/Human Services
Location: Elim
Election District: Bering Straits
Estimated Project Dates: 07/01/2007 - 06/30/2012
Elim sanitation infrastructure improvement
planning included in approved state and federal
grants.
$29,813 Fed Rcpts
$ 9,938 G/F Match
State Match Required
One-Time Project
Mr. Griffith specified that this request would provide funding
for a water treatment study.
$1,442,000
Galena
Reference No.: 43187
Category: Health/Human Services
Location: Galena
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
Galena sanitation infrastructure improvements
included in approved state and federal grants.
$1,081,500 Fed Rcpts
$ 360,500 G/F Match
State Match Required
One-Time Project
Mr. Griffith informed that this project would allow for the
third phase of a water system improvement project.
$1,690,000
Gulkana
Reference No.: 43188
Category: Health/Human Services
Location: Gulkana
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
Gulkana sanitation infrastructure improvements
included in approved state and federal grants.
$1,267,500 Fed Rcpts
$ 422,500 G/F Match
State Match Required
One-Time Project
Mr. Griffith stated that this project would provide a water
source, water treatment plant, and water storage tank.
1:48:26 PM
$1,310,160
Homer
Reference No.: AMD 43189
Category: Health/Human Services
Location: Homer
Election District: Homer/Seward
Estimated Project Dates: 07/01/2007 - 06/30/2012
Homer sanitation infrastructure improvements
included in approved state grant.
$1,310,160 Gen Fund
One-Time Project
Mr. Griffith expressed that this would be the third phase of a
water treatment plant upgrade project.
$1,829,613
Hughes
Reference No.: 43190
Category: Health/Human Services
Location: Hughes
Election District: Interior Villages
Estimated Project Dates: 07/01/2007 - 06/30/2012
Hughes sanitation infrastructure improvements
included in approved state and federal grants.
$1,372,210 Fed Rcpts
$ 457,402 G/F Match
State Match Required
One-Time Project
Mr. Griffith specified that this would be the second phase of a
water and sewer project.
1:49:15 PM
$1,153,600
Juneau
Reference No.: AMD 43191
Category: Health/Human Services
Location: Juneau Areawide
Election District: Juneau Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Juneau sanitation infrastructure improvements
included in approved state grant.
$1,153,600 Gen Fund
One-Time Project
Mr. Griffith announced that this funding would allow for a West
Mendenhall sewer expansion.
$648,945
Kenai
Reference No.: 43192
Category: Health/Human Services
Location: Kenai
Election District: Kenai/Soldotna
Estimated Project Dates: 07/01/2007 - 06/30/2012
Kenai sanitation infrastructure improvements
included in approved state and federal grants.
$486,709 Fed Rcpts
$162,236 G/F Match
State Match Required
One-Time Project
Mr. Griffith announced that this would allow for the third phase
of a water treatment plant upgrade.
$7,243,593
Kotzebue
Reference No.: 43193
Category: Health/Human Services
Location: Kotzebue
Election District: Arctic
Estimated Project Dates: 07/01/2007 - 06/30/2012
Kotzebue sanitation infrastructure improvements
included in approved state and federal grants
$5,432,695 Fed Rcpts
$1,810,898 G/F Match
State Match Required
One-Time Project
Mr. Griffith specified that this funding would support water and
sewer upgrades.
$81,000
Reference No.: 43194
Category: Health/Human Services
Location: Moose Pass
Election District: Homer/Seward
Estimated Project Dates: 07/01/2007 - 06/30/2012
Moose Pass sanitation infrastructure improvement
planning included in approved state and federal
grants.
$60,750 Fed Rcpts
$20,250 G/F Match
State Match Required
One-Time Project
Mr. Griffith stated that this project would allow a water study
to be conducted.
1:50:32 PM
$1,804,473
Mountain Village
Reference No.: 43195
Category: Health/Human Services
Location: Mountain Village
Election District: Bering Straits
Estimated Project Dates: 07/01/2007 - 06/30/2012
Mountain Village sanitation infrastructure
improvements included in approved state and
federal grants.
$813,355 Fed Rcpts
$271,118 G/F Match
State Match Required
One-Time Project
Mr. Griffith commented that this funding would allow a lift
station and lagoon to be constructed.
$963,489
Napakiak
Reference No.: 43196
Category: Health/Human Services
Location: Napakiak
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
Napakiak sanitation infrastructure improvements
included in approved state and federal grants.
$722,617 Fed Rcpts
$240,872 G/F Match
State Match Required
One-Time Project
Mr. Griffith specified that this funding would provide eight
flush tank and haul units improvements.
$2,066,104
Napaskiak
Reference No.: 43197
Category: Health/Human Services
Location: Napaskiak
Election District: Bethel
Estimated Project Dates: 07/01/2007 - 06/30/2012
Napakiak sanitation infrastructure improvements
included in approved state and federal grants.
$1,549,578 Fed Rcpts
$ 516,526 G/F Match
State Match Required
One-Time Project
Mr. Griffith informed that this project would complete a water
and sewer project.
1:51:31 PM
$1,089,740
Nome
Reference No.: 43198
Category: Health/Human Services
Location: Nome
Election District: Bering Straits
Estimated Project Dates: 07/01/2007 - 06/30/2012
Nome sanitation infrastructure improvements
included in approved state and federal grants.
$817,305 Fed Rcpts
$272,435 G/F Match
State Match Required
One-Time Project
Mr. Griffith remarked that this funding would provide for East
Fifth Avenue water and sewer upgrades.
$2,067,210
North Pole
Reference No.: AMD 43199
Category: Health/Human Services
Location: North Pole
Election District: North Pole
Estimated Project Dates: 07/01/2007 - 06/30/2012
North Pole sanitation improvements included in
approved state grant.
$2,067,210 Gen Fund
One-Time Project
Mr. Griffith advised that this funding would begin the first
phase of the Baker/North Star water and sewer project.
$1,757,000
Ouzinkie
Reference No.: 43200
Category: Health/Human Services
Location: Ouzinkie
Election District: Kodiak
Estimated Project Dates: 07/01/2007 - 06/30/2012
Ouzinkie sanitation infrastructure improvements
included in approved state and federal grants.
$1,317,750 Fed Rcpts
$ 439,250 G/F Match
State Match Required
One-Time Project
Mr. Griffith identified this as a water treatment plant project.
$1,035,000
Palmer
Reference No.: AMD 43201
Category: Health/Human Services
Location: Palmer (Palmer)
Election District: Unidentified House District
Estimated Project Dates: 07/01/2007 - 06/30/2012
Palmer sanitation infrastructure improvements
included in approved state grant.
$1,035,000 Gen Fund
One-Time Project
Mr. Griffith identified this as being the fifth phase of a water
main replacement.
$466,785
Sitka
Reference No.: AMD 43202
Category: Health/Human Services
Location: Sitka
Election District: Sitka/Wrangell/Petersburg
Estimated Project Dates: 07/01/2007 - 06/30/2012
Sitka sanitation infrastructure improvements
included in approved state grant.
$466,785 Gen Fund
One-Time Project
Mr. Griffith advised this project would allow for water system
improvements.
$1,809,936
South Naknek
Reference No.: 43203
Category: Health/Human Services
Location: South Naknek
Election District: Bristol Bay/Aleutians
Estimated Project Dates: 07/01/2007 - 06/30/2012
South Naknek sanitation infrastructure
improvements included in approved state and
federal grants.
$1,357,452 Fed Rcpts
$ 452,484 G/F Match
State Match Required
One-Time Project
Mr. Griffith remarked that this was a sewer upgrade project.
1:53:07 PM
$326,700
Thorne Bay
Reference No.: 43204
Category: Health/Human Services
Location: Thorne Bay
Election District: Ketchikan
Estimated Project Dates: 07/01/2007 - 06/30/2012
Thorne Bay sanitation infrastructure improvements
included in approved state and federal grants.
$245,025 Fed Rcpts
$ 81,675 G/F Match
State Match Required
One-Time Project
Mr. Griffith advised that this project would provide for a water
treatment system upgrade.
$27,876,542
Statewide Village Safe Water Three Year Federal
Funding List Projects
Reference No.: 43205
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Design and construction for water and sewer
facility projects included on the Village Safe
Water three year federal funding list.
$20,907,407 Fed Rcpts
$ 6,969,135 G/F Match
State Match Required
Phased-new
Mr. Griffith stated this project would provide funding for the
projects specified on the federal Village Safe Water list.
$10,500,000
Statewide Alaska Native Tribal Health Consortium
(ANTHC) and Denali Commission Funding
Reference No.: 43206
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal funding allocated by ANTHC and Denali
Commission for sanitation facility planning,
design and construction projects administered by
the Department of Environmental Conservation.
$10,000,000 Fed Rcpts
$ 500,000 Stat Desig
One-Time Project
Mr. Griffith read the information.
1:53:45 PM
Co-Chair Stedman asked that this project and the previous
project, reference number 43205, be further explained.
1:54:08 PM
Mr. Griffith explained that the Statewide Village Safe Water
(VSW) Three Year Federal Funding List Projects program is a
federal program that only applies to projects that would take
"three years to complete and which rank high under VSW scoring
criteria". The projects on the list are not prioritized in order
to provide "the flexibility that is required in scheduling and
funding for multiyear projects". In effect, any delay
experienced with one project "would not hold up funding for
different project that is ready to go".
Mr. Griffith advised that the projects included in the Three
Year list were identified via a federally mandated process.
Absent this process, no federal funds would be forthcoming. This
is the third year funds are being requested under this program.
Co-Chair Stedman asked where the complete list of projects could
be viewed.
Mr. Griffith qualified that the complete list is posted on the
Department's website. It is "updated several times a year as
projects are added to it" or completed and removed.
1:55:36 PM
Co-Chair Stedman understood therefore that once funding is
appropriated, the Department would utilize it to support
projects on a list developed under a federally mandated process.
He asked why the list of the projects had not been provided with
the request.
1:56:13 PM
Mr. Griffith explained that when a project is first added to the
list, its capital budget funding request that year is limited to
only the project's design work. Once the design work is
completed and the project was permitted, "a detailed up-to-date
cost estimate" for its construction is included on the three-
year list. Each project on the list is constructed in phases.
Thus the three year list contains a variety of projects in
different stages of construction.
Mr. Griffith continued. After the design work for an individual
project is completed, a grant agreement for the construction
phase of the project is developed and the money required for
each phase of the project is subtracted from that year's total
funding. While $20 million has been estimated as the total need
in FY 08, the exact list of projects is difficult to determine
since it is unknown which project's design and permitting would
be in place. The total cost to completely construct all the
projects on the three year list would be approximately $200
million.
Co-Chair Stedman asked that a list or "matrix" of projects be
developed. This would allow Members to better understand the
projects that are "in the hopper" as well as those under
construction.
1:58:07 PM
Senator Elton asked for an update on the grant administration
dispute between the federal government and the Administration,
and specifically how that situation might affect this program.
1:58:21 PM
Mr. Maher explained the situation. The State has had a
Memorandum of Understanding (MOU) regarding the management of
this program with the federal government for the past four
years. This MOU satisfied the federal government's program
criteria and allowed the State "to streamline the program".
Another MOU was developed in the last quarter of 2006. The State
thought the MOU was acceptable and continued to operate under
that assumption. However, the federal government "arbitrarily"
decided to change and administer the grant under a federal
regulation that has different requirements, "a number of which,
it appears" do not match up with the Village Safe Water Statutes
as far as us being able to do the program".
Mr. Maher stated that as a result, some communities might be
required for the first time to provide local match funding.
Mr. Griffith also pointed out that in some cases the federal
change would duplicate certain requirements. This would add both
cost and time delays to completing projects funded by the USDA.
Mr. Maher advised that the Department has attempted to meet with
federal government officials. A teleconference has now been
scheduled for next week with Jim Fitzgerald, the chief of staff
to Undersecretary Dore and other federal representatives. The
objective is to garner a one-year reprieve or "to persuade them
to" re-establish the original regulations.
2:00:15 PM
Co-Chair Stedman expressed that the Village Safe Water program
is appreciated by the small communities he represents. The State
should be allowed to develop and rank the project list. The
concern is that this disagreement between the federal government
and the State "may hinder the use of the program". Mr. Maher and
Mr. Griffith's remarks appear to indicate that action to resolve
the issue is being furthered.
Mr. Maher assured that efforts to resolve the differences are
occurring. However, the Department has only a 50 percent
"confidence level" that the issue will be resolved in favor of
the State. Thus, while the funding has been included in the
Department's budget, its availability is uncertain. A letter
submitted to the federal government two weeks ago has remained
unanswered. The upcoming meeting is important.
2:01:51 PM
Senator Elton appreciated the update. The outcome of that
meeting should be communicated to the Committee co-chairs
immediately as work on the budget is proceeding. He also asked
that he be kept advised of the situation as a federal official
had personally assured him the funding would be available.
Mr. Maher affirmed that the outcome of the meeting would be
communicated. Federal funding of less than one million dollars
would be "inadequate" to properly continue projects in the
program this year. It is also understood that the federal
changes would prohibit federal funds from being utilized to
support personal services; it could only be used for contractual
services. Thus in order to implement the program, the State
would be responsible for funding accounting staff and a limited
number of engineers and grant administrators.
2:03:09 PM
Senator Elton acknowledged that the federal funding could only
support contract labor; however, he had been assured by the
federal representative that the funding would be more than
adequate. He repeated his request that he be notified of the
outcome of the forthcoming meeting.
Mr. Maher affirmed.
2:03:38 PM
$10,500,000
Statewide Alaska Native Tribal Health Consortium
(ANTHC) and Denali Commission Funding
Reference No.: 43206
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal funding allocated by ANTHC and Denali
Commission for sanitation facility planning, design
and construction projects administered by the
Department of Environmental Conservation.
$10,000,000 Fed Rcpts
$ 500,000 Stat Desig
One-Time Project
Mr. Griffith stated that this program's funding is primarily
comprised of Indian Health Service money through the Alaska
Native Tribal Health Consortium with additional support from the
Denali Commission. The funding is used to support projects in
small rural communities and is administered by the Village Safe
Water Program.
Co-Chair Stedman asked that the list of projects anticipated for
funding under this program be provided.
Mr. Griffith acknowledged.
This concluded the overview of the individual projects included
in the Water and Wastewater Infrastructure Projects component,
Reference Number 41376.
$500,000
Environmental Monitoring and Assessment of Surface Waters
Reference No.: AMD 37756
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2003 - 06/30/2008
Language amendment to increase federal receipts in a prior
capital appropriation for continuing EMap projects.
$500,000 Fed Rcpts
One-Time Project
Mr. Maher identified this as being the third phase of the
project. One million dollars had initially been provided in 2002
and additional federal funds had been allocated in December
2006. This project would provide the "baseline information"
necessary to assist "environmental managers implement and adopt
management strategy to protect Alaska's valuable aquatic
resources".
2:05:31 PM
$5,000,000
Comprehensive Oil and Gas Infrastructure Risk Assessment
Reference No.: AMD 43339
Category: Natural Resources
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
The purpose of this project is to conduct a comprehensive
risk assessment of Alaska's crude oil production, storage
and transportation system including the Trans Alaska
Pipeline and Valdez Marine Terminal. The system wide risk
assessment will evaluate the safety, environmental and
operational risks associated with the system and
reliability of the existing infrastructure to operate for
another generation. The risk assessment will also evaluate
the extent, degree and adequacy of government oversight and
make recommendations for continued safe and reliable
operation of the system.
$2,500,000 Gen Fund
$2,500,000 Oil/Haz Fd
One-Time Project
LARRY DIETRICK, Director, Division of Spill Prevention &
Response, Department of Environmental Conservation, informed the
Committee that the purpose of this "one-time engineering-
oriented" risk assessment was to identify "safety,
environmental, and operational risks" to the oil and gas
infrastructure in the State from the terminus at Valdez to the
wellheads on the North Slope. Measures "to mitigate those risks"
would be developed.
Mr. Dietrick communicated that the first step would be to
develop the assessment criteria. The second step would be to
contract with "an independent nationally recognized firm to
conduct" the assessment.
Mr. Dietrick noted that the information gleamed from this effort
would be utilized by the State's recently created Petroleum
Systems Integrity Office.
Co-Chair Stedman deduced that this project would assist in
negating the re-occurrence of an oil spill akin to that which
occurred the previous year.
Mr. Dietrick affirmed that the goal of this effort would be to
develop "a baseline for the condition of system" which would
allow it operate successfully into the future.
2:07:42 PM
Senator Elton observed that this is the first such assessment.
Its results would be utilized by both the government and the
industry to negate risks. To that point, he wondered why there
was no "industry participation" in the effort; especially as
under the State's recently enacted Petroleum Profits Tax (PPT),
such effort would qualify for a tax credit against their tax
payment.
2:08:13 PM
Mr. Dietrick pointed out that the funding for this project was
purposely "split in consideration of that very concern". $2.5
million of the total five million dollar expense would be funded
from the Oil and Hazardous Substance Release Response Account
"in recognition from a policy perspective that the people that
are paying that surcharge are the people for which the risk
assessment is being conducted".
Mr. Dietrick communicated that the intent was for those entities
to be involved in "the scoping phase" of the project. There is
no intent for this to be "an investigatory or an enforcement or
regulatory activity". Its purpose is to assist the State in
assessing the "real condition of these facilities" as a baseline
moving forward. The second phase, which would be the actual risk
assessment, would be independently conducted.
2:09:09 PM
Mr. Maher concluded therefore that the producers would be paying
half of the cost of the assessment.
Senator Elton remarked that "it is easy to say that, but this
money is available for other purposes".
Mr. Maher advised there being $50 million in the Oil and
Hazardous Substance Release Response and Prevention Account. The
Prevention account is tapped to support the Division of Spill
Prevention & Response. The Response account, which is available
to address major spills, has been utilized several times. The
$2.5 million designated for this project would equate to half of
the balance in that account.
Senator Elton opined that the money paid by the industry into
the Response account could be used for other purposes than this.
Since the industry would benefit from this activity, "there
ought to be some buy-in from the industry, other than through a
fund that" has been used previously in this manner.
2:10:40 PM
$250,000
Cook Inlet Marine Vessel Traffic Risk Assessment
Reference No.: AMD 41541
Category: Natural Resources
Location: Cook Inlet
Election District: Unidentified House District
Estimated Project Dates: 07/01/2008 - 06/30/2012
This project provides funding to conduct a detailed vessel
risk assessment for the Cook Inlet area of operation with
regard to vessel traffic and the potential for major
accidents or incidents, with the added potential of a major
oil or hazardous substance release. This project supports
DEC's End Result A by researching further protection for
the environment.
$250,000 Gen Fund
One-Time Project
Mr. Dietrick read the information and noted that some incidents
have been experienced in Cook Inlet. There are also on-going
issues with ice in the wintertime. Developing risk prevention
measures is important, both in terms of allowing for the safe
delivery of crude and other refined products as well as to
"protect the environment from the risk associated with
navigating through broken ice".
2:11:44 PM
Senator Elton asked whether a similar risk assessment would be
conducted on the Aleutian route as that area experiences similar
problems. It also has more vessel traffic.
Mr. Dietrick divulged that $250,000 had previously been approved
to support conducting a risk assessment in that area. A vessel
traffic study has been completed, and the balance of those funds
would be utilized to allow the Marine Board, in conjunction with
the United States Coast Guard, to develop a risk assessment
strategy.
2:12:55 PM
Department of Revenue
JERRY BURNETT, Director, Administrative Services Division,
Department of Revenue noted that four of the 22 projects
depicted as Department of Revenue capital budget requests are
for the Department of Revenue. The balance belongs to the Alaska
Housing Finance Corporation (AHFC), which is housed within the
Department of Revenue. Those requests would be presented by
AHFC.
$204,000
Child Support Services Computer Replacement Project
- Phase 3
Reference No.: 42945
Category: Health/Human Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This is Phase 3 of a second five-year replacement cycle of
the computer and printer replacement project.
$134,640 Fed Rcpts
$ 69,360 Rcpt Svcs
State Match Required
Phased-underway
Mr. Burnett reviewed the request.
2:14:23 PM
$117,000
Permanent Fund Dividend Computer Replacement Project
- Phase 3
Reference No.: 42933
Category: Permanent Fund Dividends
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This request funds the third year of the PFD replacement
project for desktop computers, printers, servers, and other
office support equipment. The replacement cycle is based on
the warranty and expected useful life of each type of
equipment. Replacing worn out and obsolete mission critical
equipment on a planned life-cycle basis facilities maximum
employee productivity on a day-to-day basis, and enables
the success of cost saving and programmatic goals related
to PFD Performance Management targets to increase staff
efficiency and effectiveness; eliminate process
bottlenecks; reduce operations costs; reduce fraud; promote
customer service and respect; and prepare for the future.
$117,000 PFD Fund
Phased - underway project
Mr. Burnett explained the project.
Senator Elton inquired as to why these two projects were
included in the capital budget rather than the operating budget.
Mr. Burnett explained that these projects have been included in
the capital budget for the past three years. This ensured that
the funding would be used exclusively to replace computer
systems as their life cycle progressed as opposed to being
addressed when operating money in the Division came available.
Since these two divisions as "production-oriented divisions"
which require current dependable operating systems, the decision
was made to include then in the capital budget.
2:15:56 PM
$435,000
Department Database Imaging System and Infrastructure
Upgrade with Disaster Recovery
Reference No.: AMD42936
Category: General Government
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will allow for the replacement of the
Department's shared Microsoft SQL Database Imaging system.
The system being replaced will be moved to our Anchorage
facility and used as a disaster recovery site. In addition,
uninterruptible power supplies and tape backup enclosures
in both Anchorage and Juneau will be replaced. This system
supports the Department's mission to collect, distribute
and invest funds and other assets for public purposes. It
aids the Department's delivery goals in the collection of
taxes, management of investments, regulation of charitable
gaming, administration of the Permanent Fund Dividend
Program, and management of Mental Health Trust assets.
$217,500 Gen Fund
$217,500 PFD Fund
One-Time Project
Mr. Burnett reviewed the project. The intent is to provide a
strong reliable system with disaster-recovery capabilities.
2:16:51 PM
$425,000
Permanent Fund Dividend Payment System Replacement
Reference No.: AMD42932
Category: Permanent Fund Dividends
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project will design and build a new PFD payment system
to replace the original system which was developed in 1982.
Computer hardware and software have evolved significantly
since 1982 and demands on the payment system of changing
laws and a growing population can no longer be handled by
the old system. The system requires inordinate staff
resources to maintain and is at risk of failure. The new
system will be reliable, efficient, and will have the
flexibility to handle program changes into the future.
$425,000 PFD Fund
One-Time Project
Mr. Burnett explained that this funding would allow for the
replacement of a computer system that was originally developed
in 1982. While it has been continually upgraded, the operating
system is now obsolete and programmers familiar with it are
increasingly difficult to find. This replacement project is
required to ensure that the Permanent Fund Dividend (PFD)
computer system is functioning properly.
Senator Dyson assumed that the new system would be able to
adequately store records and have enhanced back-up capacity.
Mr. Burnett stated that the previous item, Department Database
Imaging System and Infrastructure Upgrade with Disaster
Recovery, reference number AMD42936, addressed that concern.
2:18:42 PM
Senator Thomas asked whether State departments coordinate their
computer needs.
Mr. Burnett informed that each department annually assesses and
develops a list of its computer needs. Those lists are then
reviewed by the Enterprise Technology Services (ETS) division
within the Department of Administration. The list is also
reviewed by the Director of the Office of management and budget.
A definite process is in place.
Alaska Housing Finance Corporation
2:19:48 PM
BRYAN BUTCHER, Director, Governmental Affairs & Public
Relations, Alaska Housing Finance Corporation, Department of
Revenue introduced himself.
2:20:10 PM
$6,800,000
Reference No.: AMD37918
AHFC Housing Loan Program/Teacher/Health and Public Safety
Professional Housing
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds to supplement the Corporation's
popular housing programs, through gap funding. These funds
will allow AHFC to continue current programs and expand
business opportunities with new programs such as Teacher
Housing Program(s), Health Professionals Housing
Program(s), and Public Safety Housing Programs(s).
$6,800,000 Alaska Housing Finance Corporate Receipts
(AHFC Div)
On-Going Project
LES CAMPBELL, Budget Director, Alaska Housing Finance
Corporation, Department of Revenue, explained that this program
"is designed to retain desirable professionals in high cost
areas" throughout the State. The objectives of this program are
to increase home ownership; increase housing for teachers,
health professionals, and public safety employees; "increase the
affordability of housing purchases for low to moderate income
families; lower interest rate on AHFC mortgage programs to
attract loan volume and generate net income"; and participation
in a statewide housing conference".
2:21:11 PM
$6,000,000
AHFC Supplemental Housing Development Program
Reference No.: 6323
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Supplemental Housing Development Program utilizes Corporate
(AHFC) funds to supplement Federal (HUD) funds to construct
decent, safe, and sanitary housing through regional housing
authorities established under AS 18.55.996. Funds are used
to cover housing development costs related to water
distribution, sewer hookups, electrical distribution
systems, road construction to project site, site
development, and energy efficiency improvements. State laws
limit the use of these funds to 20% of the HUD's total
development cost per unit. These funds are also prohibited
from being used for administrative or other costs of the
housing authority.
$6,000,000 AHFC Div
On-Going Project
Mr. Campbell reviewed the objectives of the program. It would:
allow construction of affordable housing in up to 20 urban and
rural communities; provide on-site water and sewer facilities;
provide clients with new safe, energy efficient, comfortable
housing, build roads to project sites, provide electrical
distribution systems, and include energy-efficient design
features in homes.
Co-Chair Stedman asked, in consideration of time, that Mr.
Campbell briefly describe routine requests. This would allow
more time to discuss unusual or complex requests.
2:22:02 PM
$7,800,000
AHFC Low Income Weatherization
Reference No.: 6332
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal U.S. Department of Energy (DOE) and corporate
(AHFC) funds to assist low-and moderate-income families
attain decent, safe and affordable housing through the
weatherization and rehabilitation of existing homes.
Weatherization provides for fire safety through furnace and
electrical repairs, education, chimney and woodstove
repairs, and egress windows (installed during bedroom
window replacements).
$6,000,000 AHFC Div
$1,800,000 Fed Rcpts
On-Going Project
Mr. Campbell stated this program would assist low income
families throughout the State make cost effective energy
improvements to their homes.
2:22:30 PM
$5,777,600
AHFC Senior Citizens Housing Development Program
Reference No.: 6334
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds to grant to municipalities and
public or private non-profit corporations, in conjunction
with other agencies, for the development of senior citizen
housing. Funds can be used for purchase of building sites,
site preparation, materials, construction, and
rehabilitation of existing homes. Organizations qualified
to apply include municipalities and public or private non-
profit corporations. Additional components include smaller
grants (up to $25,000) for nonprofit senior organizations
to pay for preparation of plans and project feasibility
studies, appraisals, site preparation, and other pre-
development activities.
$5,777,600 AFHC Div
On-Going Program
Mr. Campbell specified that this funding would support the
development of senior citizen housing.
2:22:56 PM
$4,125,000
AHFC Housing and Urban Development Federal HOME Grant
Reference No.: 6347
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal (HUD) and Corporate matching (AHFC) funds for the
HOME Investment Partnership Program. The purpose of the
HOME 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. The Municipality of Anchorage has their
own separate HOME program.
$ 750,000 AHFC Div
$3,375,000 Fed Rcpts
State Match Required
On-Going Project
Mr. Campbell briefly overviewed the request.
2:23:30 PM
$3,500,000
AHFC Housing and Urban Development Capital Fund
Reference No.: 6342
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal (HUD) grant that provides Public Housing
Authorities with funds each year to help renovate and
modernize public housing units. These funds provide for
work items outside the FY200a4 bond package such as:
administrative expenses, tenant education projects, drug
elimination/safety projects, and management improvements.
$3,500,000 Fed Rcpts
On-Going Project
Mr. Campbell shared that this program would modernize public
housing units.
2:23:50 PM
$4,000,000
AHFC Federal and Other Competitive Grants
Reference No.: 6348
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal (HUD) corporate match (AHFC) grant funds. AHFC will
apply for grants that target the housing needs of low-
income and special needs groups; such as senior citizens,
the mentally ill, 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 who deliver housing
and/or services.
$1,000,000 AHFC Div
$3,000,000 Fed Rcpts
State Match Required
On-Going Program
Mr. Campbell stated that this program would allow AHFC to apply
for federal and private foundation grants to address housing
needs of identified people.
2:24:32 PM
$1,000,000
AHFC Competitive Grants for Public Housing
Reference No.: 6350
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal (HUD) and Corporate match (AHFC) grant funds. AHFC
will apply for HUD grants that target the housing needs of
low-income and special needs groups; such as senior
citizens, the mentally ill, disabled, or the homeless. 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.
$250,000 AHFC Div
$750,000 Fed Rcpts
State Match Required
On-Going Program
Mr. Campbell stated that, like the previous request, this
program would allow AHFC to apply for various grants, specific
to supporting AHFC public housing residents.
2:24:57 PM
$1,000,000
AHFC Energy Efficiency Monitoring Research
Reference No.: 6351
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds for a designated grant to Cold
Climate Housing Research Center to conduct research,
analysis, and information dissemination and interchange
among members of the industry, and between the 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.
$1,000,000 AHFC Div
On-Going Program
Mr. Campbell briefly reviewed the request.
2:25:23 PM
$390,000
AHFC State Energy Program Special Projects
Reference No.: 32526
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Federal (DOE) and corporate match funds for State Energy
Program (SEP) special projects such as: building
technologies, codes and standards, wind, power
technologies, renewable energy for remote areas, or
transportation technologies.
$ 30,000 AHFC Div
$360,000 Fed Rcpts
State Match Required
On-Going Program
Mr. Campbell informed that this funding request would allow the
State "to participate in projects made available by the federal
Department of Energy related to technologies and research".
2:25:49 PM
$2,000,000
AHFC Statewide Project Improvements
Reference No.: 40068
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project utilizes Corporate (AHFC) funds to provide
repairs, deferred maintenance, and improvements to AHFC
owned properties throughout the State. This project will
allow AHFC to keep pace with the deterioration of existing
components of the rental properties such as roofs,
sidewalks, and common areas. It will enhance operations,
allow quick response to ordinance and code changes, and
address compliance issues raised recently in HUD's
accessibility audit.
$2,000,000 AHFC Div
Phased-Underway Program
Mr. Campbell stated that this request would provide funding to
address "known and unknown conditions in AHFC housing stock".
Senator Elton pointed out that this is another request that
included heated sidewalks. He asked that AHFC provide
information as to how the agency priorities its projects.
Co-Chair Stedman instructed AHFC to provide that information to
his office for distribution.
2:26:27 PM
$250,000
AHFC Facility Management Monitoring Project
Reference No.: 41532
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds to develop a tracking database that
will provide easy access to the records regarding the
histories of individual properties that will include:
construction, maintenance, renovations, etc. of all rental
unites owned and operated by the Corporation. It will
reflect what work has been done, what work is planned for
the unit, what work is in progress, what items are being
replaced, and the related documents to those activities.
$250,000 AHFC Div
Phased-Underway Program
Mr. Campbell noted this would be phase two of a project begun
last year. In addition to addressing maintenance needs of AHFC's
properties, this project allows AHFC to develop a database that
would be used to project future renovation and maintenance
projects. This would increase the efficiency involved in
managing the operations.
2:26:59 PM
$10,000,000
AHFC Denali Commission Projects
Reference No.: 41531
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2011
The Denali Commission Projects utilize Federal funds to
administer the Commission's housing programs. These funds
will allow AHFC to administer current programs designated
for rural areas of Alaska. The Denali Commission's goal is
to provide decent, affordable housing for seniors and
teachers in rural Alaska. Lack of housing has forced
seniors to relocate to other communities where appropriate
housing with necessary support is available. Lack of decent
rural housing for teachers has been cited by school
administrators as one of the factors that contribute to the
inability to attract and maintain a stable teaching corps.
The Unites States Congress has responded to this issue by
setting aside funding.
$10,000,000 Fed Rcpts
On-Going Program
Mr. Campbell stated that this funding would allow AHFC to
"administer the Denali Commission's housing programs",
specifically those in rural Alaska.
2:27:21 PM
$1,500,000
AHFC Homeless Assistance Program
Reference No.: 6359
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Homeless Assistance Program utilizes Corporate (AHFC) funds
for grants to local communities/agencies to help develop
programs to address homelessness by providing assistance to
families in imminent danger of becoming homeless, or those
who are currently homeless. Corporate funds will be matched
by Mental Health Trust Authority funds. Both funds will be
combined and administered as one program by AHFC.
$1,000,000 AHFC Div
$ 500,000 Mental Health Trust Authority Receipts(MHTAAR)
On-Going Program
Mental Health Bill
Mr. Campbell read the project description.
2:27:59 PM
$1,750,000
AHFC Beneficiary and Special Needs Housing
Reference No.: 6360
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds for a continuing program to serve
populations with special housing needs. The program
provides funds to Alaskan non-profit service providers to
increase housing opportunities to Alaska Mental Health
Trust beneficiaries and other special needs populations
throughout the State. These funds may be used for housing
development and/or residential accessibility modifications.
$1,750,000 AHFC Div
On-Going Program
Mental Health Bill
Mr. Campbell read the project description.
2:28:28 PM
$200,000
AHFC Emergency Assistance Grants for Mental Health Trust
Beneficiaries
Reference No.: AMD43318
Category: Housing/Social Services
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This project supports Mental Health Trust beneficiaries in
maintaining homeownership or long term rental stability by
providing gap or short term assistance. Assistance may be
provided for an event such as structural repair or
mechanical breakdown, or an event that may threaten the
ability of the beneficiary to make mortgage, rent or
utility payments. Funding is intended to supplement not
supplant existing resources for home modifications,
weatherization or rehabilitation programs.
$200,000 MHTAAR
One-Time Project
Amendment
Mental Health Bill
Mr. Campbell read the project description and specified that
while this is a new program in capital budget, it is an existing
program that AHFC has previously managed under a Reimbursable
Services Agreement (RSA) with the Mental Health Trust Authority.
2:29:07 PM
$2,336,000
AHFC Loussac Manor Renovation and Replacement
Reference No.: 43076
Category: Housing/Social Services
Location: Anchorage (Downtown/Rogers Park)
Election District: Downtown/Rogers Park
Estimated Project Dates: 07/01/2007 - 06/30/2012
Corporate (AHFC) funds to begin the first phase of
renovation which will include the replacement of the water
and sewer infrastructure of the entire project. Roads and
sidewalks would be replaced only if disturbed. Subsequent
funding requests would be to replace housing units;
however, this request could be considered stand-alone
because the site work would be completed as a single
project.
$2,336,000 AHFC Div
Phased-New
Mr. Campbell read the project description. This first of four
phases would address the utility infrastructure of the project.
He noted that each of the four phases could be stand-alone
projects.
2:29:46 PM
$30,000,000
AHFC Mat-Su Prison
Reference No.: 43079
Category: Public Protection
Location: Mat-Su Areawide
Election District: Matsu Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
AHFC has entered into an agreement with the Department of
Corrections and the Mat-Su Borough to build a prison in the
Matanuska-Susitna Valley. As part of the agreement with the
Mat-Su Borough, AHFC will be required to pay for certain
items that the Mat-Su Borough will then reimburse to AHFC.
This will cover consultant contracts, AHFC salaries,
associated advertising and other administrative equipment
and support for the prison project.
$30,000,000 Stat Desig
One-Time Project
Mr. Campbell stated that this project would allow AHFC to manage
the oversight and construction coordination of the prison
scheduled to be constructed in the Matanuska-Susitna (Mat-Su)
valley.
Co-Chair Hoffman directed attention back to the AHFC State
Energy Program Special Projects, Reference No. 32526 on page 26.
2:30:25 PM
Co-Chair Hoffman suggested that the level of funding requested
for this program was insufficient in light of the high cost of
energy, specifically the costs experienced in rural areas of the
State. In addition to inquiring whether this issue was being
addressed via other programs, he asked for specifics as to what
this funding might accomplish.
Mr. Campbell replied that in the past, this funding was utilized
to support projects throughout the State. This funding would
allow AHFC to compete for grants on a nationwide basis.
2:31:31 PM
Co-Chair Hoffman asked for information regarding the level and
type of grants the State was awarded in the past.
Mr. Campbell specified that former grants have included the
rural directed Build America grant and grants that fund
alternate energy projects such as windmills. An exact list would
be provided.
2:32:10 PM
Senator Thomas inquired whether this AHFC State Energy Program
Special Projects program coordinates with other energy programs
such as the AHFC Energy Efficiency Monitoring Research project,
Reference No. 6351, depicted on page 24.
Mr. Campbell affirmed that energy related projects are
coordinated.
2:33:09 PM
Senator Dyson questioned the accuracy of the claim that "Alaska
census data shows that the largest population growths have
occurred in rural Alaska" as reflected in the Program
Description language on the second page (page 9 of the
Department's handout) of the AHFC Supplemental Housing
Development Program request, reference number 6323, which began
of page 8. Other areas in central Alaska also make this claim.
Mr. Campbell determined it must be true as otherwise it would
not have been included. Further information would be provided.
Senator Dyson considered this contrary to common opinion.
Mr. Campbell stated that supporting documentation would be
provided.
Senator Dyson thought that some of the activities included in
the AHFC Housing and Urban Development Capital Fund Program,
Reference No. 6342, page 18, might extent beyond the Housing
Authority's "venue". Some of the programs in question included
"teaching residential self-sufficiency and life skills training.
2:35:45 PM
Mr. Butcher specified that such programs are required by the
federal HUD public housing program. More information would be
forthcoming.
Senator Dyson asked whether existing AHFC staff could conduct
such training or whether contract personnel would be required.
Mr. Butcher noted that most of the work would be contracted out,
depending on the complexity of the situation. To that point,
however, he noted that AHFC has an established resident self-
sufficiency program. Its goal is to help tenants to become self-
sufficient and purchase their own home.
2:37:17 PM
Co-Chair Hoffman asked regarding the AHFC Mat-Su Prison,
Reference No. 43079 on page 40. The Mat-Su Prison project is a
component of a previously enacted bill designed to increase the
number of correctional beds in the State. The Bethel
Correctional Facility was identified as the number one project
during the time that bill was being developed.
Co-Chair Hoffman, rather than questioning the need for the Mat-
Su Prison, asked that the process behind that project be
explained.
2:38:08 PM
Mr. Butcher explained that when the previous administration
discussed the plans for this prison with the Mat-Su Borough,
AHFC was asked to be the construction manager on the project.
Initially, the plan called for the Mat-Su Borough to pay AHFC,
and then AHFC, as construction manager, would pay the
contractors. AHFC asked the Borough to consider paying the
contractors directly. The Borough recently agreed to that
request, and as a result, this request would be revised to
reflect approximately two million dollars rather than the $30
million request shown.
Mr. Butcher stated that this money, which would be entirely
funded by the Borough rather than by AHFC or State general
funds, would be utilized to pay AHFC's project consultant.
Mr. Butcher stated that, while the focus has not changed, the
project is being reviewed by the new Governor Sarah Palin
Administration, specifically the new Department of Corrections'
commissioner. As a result, the process has been slowed.
2:39:34 PM
Co-Chair Hoffman asked whether the City of Bethel could
anticipate AHFC participating in a prison project there in the
same fashion taken with the Mat-Su Prison.
2:40:02 PM
Mr. Butcher stated that AHFC "would be happy" to participate if
that project was furthered by the Department of Corrections.
AHFC's role in the Mat-Su prison project was requested by former
Governor Frank Murkowski who felt their managing the project
would ensure it would be run properly and kept on budget. AHFC
would be happy to participate with any such project advanced by
Department of Corrections.
2:40:37 PM
Senator Dyson urged "the confines" of SB 65 be adhered to.
Expanding the provisions of that bill should not be done
lightly. He was worried that some of the necessary
infrastructure in the Mat-Su prison might be curtailed due to
increasing costs of the project. The Committee should be made
aware of such decisions.
Senator Dyson also questioned how language in SB 65 would
accommodate the increasing cost of housing inmates in the State;
in other words was there a cost spread allowance or "delta";
specifically as compared to what the State is paying to house
inmates out of State. While he supported "getting the guys
home", cost consideration and adhering to the authorization
allowed by SB 65 is important.
Mr. Butcher responded that the Department of Corrections could
provide information pertaining to costs associated with
operating a prison. AHFC would not support advancing a project
"that didn't fit within the parameters of SB 65".
Co-Chair Hoffman echoed Senator Dyson's concern.
AT EASE 2:43:19 PM / 2:44:45 PM
University of Alaska
2:45:21 PM
PETE KELLY, State Relations Director, University of Alaska,
informed the Committee that the State's primary FY 2008 capital
budget objective was to address the deferred and major
maintenance needs being requested in the University's FY 08
capital budget overview.
Mr. Kelly noted that the University has utilized the term "R&R"
to refer to these needs. He noted that the emphasis being placed
on R&R is also reflected in University's annual "Red Book"
report [copy on file].
Mr. Kelly expressed that since the year 2000, the University's
average R&R funding to support its 600 million square feet of
facilities in 300 buildings with an estimate value of $1.5
billion, has been approximately $12 million dollars annually.
The "best practices" recommendation for R&R on such facilities
is $40 to $50 million a year. The level of R&R funding that has
been provided for the past several years has resulted in a
"significant backlog" of deferred maintenance needs estimated to
be in the range of $500 million.
Mr. Kelly addressed a common misconception. When people hear
about the University's deferred maintenance needs, the
University "is often accused of not doing the regular
maintenance" that is included in the University's Operating
budget. In fact, the University spends approximately $20 to $23
million of operating budget funds each year for routine
maintenance and repair. An additional $20 million is spent each
year to operate the facilities.
Mr. Kelly specified that the R&R referred to in this legislation
is that provided via capital budget appropriations. The R&R
projects included in the FY 2008 capital budget request have not
been addressed on a regular basis for the past decade.
2:48:49 PM
$15,000,000
Systemwide Project Receipt Authority
Reference No.: 43218
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This request is an estimation of potential federal receipt
authority needed for FY08-FY13 projects at the main and
community campuses. Prior small project federal receipt
authority was used for Title III improvements to rural
campuses including Bristol Bay and Chukchi (2005), the
Allied Health Center at TVCC (2004) and the Center for
Nanosensor Technology at UAF (2003). In the last two years
there have been twelve different projects with three
different federal agencies that utilized UA's previous
small project receipt authority approved in 2005.
$15,000,000 Fed Rcpts
One-Time Project
Mr. Kelly indicated that Pat Pitney, Director of Budget
Development and Institutional Planning, University of Alaska to
would present the University's FY 2008 capital project requests.
2:49:28 PM
PAT PITNEY, Director of Budget Development and Institutional
Planning, University of Alaska, testified via teleconference
from Fairbanks and explained that this receipt authority would
allow the University "to take advantage of competitive grants
that are awarded". The funds would be used to renovate
laboratories or make major equipment purchases for classrooms.
Ms. Pitney shared that a two million dollar clean-room lab was
one of the past projects funded by this federal receipt
authority. A typical Title IIII grant to a community campus
could range from $400,000 to $1.3 million. Requesting this large
authority as a single project would allow the University to
access the funds in a timely manner as opposed to having to
address each grant individually.
2:51:28 PM
$150,000
UAF Patty Sports Complex Weight Training Facility Planning
Reference No.: 43220
Category: University
Location: Fairbanks (Denali/University)
Election District: Denali/University
Estimated Project Dates: 07/01/2007 - 06/30/2012
As UAF's Division 1 and 2 sports programs grow, the
facilities used by the players must be upgraded and
expanded to continue to attract top notch athletes. A new
weight training facility will be used by all NCAA
sanctioned sports at UAF and further UAF's competitive edge
and athlete recruitment. This funding authority is for
building a facility initially estimated at $9M.
$150,000 Univ Rcpt
Phased-New
Ms. Pitney stated that this funding would allow the initial
planning phase of this weight-training facility project to be
undertaken. The funding would consist of athletic receipts.
2:51:56 PM
$14,000,000
UAA East Campus Parking Structure and Loop Road
Reference No.: AMD43221
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This amendment increases the project funding from initial
$9,000,000 to $14,000,000 in University Receipts. This
project is to construct a parking garage in association
with the UAA Integrated Science Facility. It is being
designed for 450-600 car capacity. A portion of the
Integrated Science project funding will be dedicated to
this project. This request is for the remaining receipt
authority needed to account for additional project funding
through user fees, parking fees, and debt service.
$14,000,000 Univ Rcpt
One-Time Project
Ms. Pitney reviewed the project. This project would provide the
primary parking area for the Integrated Science Facility. The
University Receipts identified as the fund source would consist
of a university bond that would be paid for by parking receipts.
2:52:31 PM
$8,000,000
Maintaining Existing Facilities and Equipment
Reference No.: AMD43164
Category: University
Location: Statewide
Election District: Statewide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This request of $8M represents a portion of the $43.7
million minimum annual R&R investment necessary to maintain
UA's existing facilities and equipment. The attached
projects are based on highest MAU facility and equipment
R&R priorities. Projects from this list will be executed as
funding allows.
$8,000,000 Gen Fund
On-Going Program
Ms. Pitney identified this project as the University's top
capital budget priority. The funding being requested is a
portion of the total $43.7 million in general funds being
requested for maintaining existing facilities and equipment.
This would completely fund the first project on the University's
R&R priority list. It would fund half of the second project's
cost.
2:53:17 PM
$550,000
Small Business Development Center
Reference No.: AMD41504
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
The Alaska Small Business Development Center (ASBDC) is a
statewide business assistance program. The service it
offers to small businesses are not duplicated or provided
by any other counseling. Through professional counseling,
small businesses are assisted in solving problems
concerning operations, manufacturing, engineering
technology exchange, accounting, business strategy
development and other productivity and management
improvement. The individual business counseling is
supplemented with quality business training designated to
improve the skills and knowledge of existing and
prospective small business owners/managers.
$550,000 Gen Fund
On-Going Program
Ms. Pitney characterized the inclusion of the Alaska Small
Business Development Center (ASBDC) in the capital budget "as a
bit of an anomaly"; however, ASBDC has been completely funded in
this manner since it was initially housed in the University.
This represents "the entire base funding" of the ASBDC program
and serves as the match to the $1.5 million in program federal
funding support.
Ms. Pitney noted that "any increases to functions" of the SDBDC
would be addressed through the operating budget.
2:54:11 PM
$6,800,000
School of Fisheries and Ocean Sciences Facility - Juneau-
Lena Point
Reference No.: AMD40031
Category: University
Location: Juneau Areawide
Election District: Juneau Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
This amendment revises the request from $3.8 million to
$6.8 million for the School of Fisheries and Ocean Sciences
(SFOS) facility being constructed on Lena Point.
$6,800,000 Univ Rcpt
Phased-Underway Program
Ms. Pitney stated that funding for this project was originally
requested in 1999; "the final general fund" support was provided
last year. During the design phase of the project, the
construction market in the City and Borough of Juneau "sky-
rocketed". Efforts were undertaken to keep the project on track
in order to not interfere with other general fund capital
project requests.
Ms. Pitney reviewed the process for addressing the increased
costs of constructing the facility. This would include research
revenue raised by the School of Fisheries and Ocean Sciences.
$475,000
UAA WWAMI - Lab Upgrade/Renovation and Additional Space
Needs
Reference No.: AMD43177
Category: University
Location: Anchorage Areawide
Election District: Anchorage Areawide
Estimated Project Dates: 07/01/2007 - 06/30/2012
Funding necessary to accommodate the planned WWAMI program
expansion. Funding will build out, renovate, furnish and
equip approximately 3,000 gsf of additional space,
including study space, office space for new faculty and
expansion/upgrade of laboratory space.
$475,000 Gen Fund
Phased-Underway Program
Ms. Pitney reminded the Committee that this classroom and
laboratory upgrade and expansion is partly required as a result
of the Legislature's recent action to double the number of
students the state could annually enroll in the University of
Washington, Wyoming, Alaska and Idaho Biomedical exchange
program (WWAMI) from ten to 20 students. This funding would
complete the second phase of this effort. The planning and
design stage was conducted the previous year.
This concluded the University's overview of its capital budget
requests.
2:56:42 PM
Senator Dyson voiced surprise at the level of R&R funding
required by the University as referenced in the Maintaining
Existing Facilities and Equipment request, reference number
AMD43164; particularly the $46 million specified as the amount
anticipated to be requested in FY 2009. He was concerned to the
level of backlogged R&R projects identified by the University.
AT EASE 2:58:20 PM / 2:59:08 PM
Co-Chair Stedman announced that the Department of Transportation
and Public Facilities would present its capital budget overview
during the following morning's scheduled Committee hearing.
Co-Chair Stedman ordered the bill HELD in Committee.
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