Legislature(2009 - 2010)SENATE FINANCE 532
03/18/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 75 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 75
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
9:07:24 AM
UNIVERSITY OF ALASKA (UA)
PETE KELLY, DIRECTOR, STATE RELATIONS, UNIVERSITY OF
ALASKA, provided an overview of the university's deferred
maintenance needs to provide context for the capital
requests. The university has approximately six million
square feet of facilities, with nearly 400 buildings, and
currently has around $800 million in deferred maintenance.
The university has been averaging about $16 million per
year for deferred maintenance; the amount needed to stay at
zero is approximately $50 million per year. He explained
that the formula used to determine major maintenance
requirements is 1.5 percent of the book value of the
buildings. Book value is the cost of each building at the
time it was built. He added that facilities personnel would
discuss the deferred maintenance of various campuses via
teleconference.
Co-Chair Stedman confirmed that governor's request was for
$8 million, and that the initial budget submission was $10
million. He asked about an amendment reducing the request
by $2 million.
MICHELLE RIZK, ASSOCIATE VICE PRESIDENT, BUDGET, UNIVERSITY
OF ALASKA, agreed that the Office of Management and Budget
(OMB) had requested the university to reduce the submission
in response to the current economic situation.
Ms. Rizk listed the projects included in the governor's
amended budget. The first, Maintaining Existing Facilities
Renewal and Renovation Annual Requirement, is the first
priority of the UA Board of Regents. The board believes the
large inventory of education buildings must be maintained.
The project extends the life of the buildings to reduce the
need for new construction, and replaces failing buildings.
Co-Chair Stedman asked what the university had received the
previous year. Ms. Rizk answered that the university had
received $45.8 million for renewal and renovation. Projects
that were funded included the Anchorage campus roof
replacement, the Tanana Valley campus exterior envelope
space revitalization, the Fairbanks campus critical
electrical distribution, deferred critical renewal at the
Nome campus, the Anderson Building renewal in Juneau, and a
Ketchikan building roof replacement.
Co-Chair Stedman asked if all the deferred maintenance
money had been expended and the projects finished. Ms. Rizk
replied that all of the FY 09 funding had not been spent;
projects are in various stages of completion, including
design and pending contracting award.
9:12:58 AM
Ms. Rizk moved to the second item, the University of Alaska
Fairbanks (UAF) Life Sciences Innovation and Learning
Facility, which is the board's number one new construction
priority. The governor's budget includes $20.6 million of
non-general fund; the board requested $82.2 million general
funds as well. The facility would provide modern academic
space for more than 600 biology and wildlife degree-seeking
students. She pointed out that a non-general fund component
was added for the bonding capacity available with the
research space in the facility.
Ms. Rizk detailed the next item, the UAF Energy Technology
Building. The governor's budget includes $15.3 million non-
general fund; the board's request includes an additional
$15.3 million in state funds. She emphasized the critical
need to expand research laboratory space as the need for
advanced energy technology grows. The fast-track building
could be completed 20 to 24 months after funding is
secured.
Ms. Rizk turned to the UAF Fire Station and Student
Firefighter Training Center planning funds. The governor's
budget includes $500,000 non-general funds for planning;
the board's request includes an additional $1 million in
general funds for planning. The UAF program is the only one
of its kind in the country. Student firefighters are
treated as full-time career firefighters and receive hands-
on training.
Ms. Rizk explained that the next project deletes UAF Alaska
Region Research Vessel additional receipt authority because
the project was moved to the stimulus bill.
9:15:18 AM
Ms. Rizk continued with the next item, an estimation of
potential federal receipt authority needed for FY10 to FY15
projects at the main and community campuses. Prior funding
in the category has been used for projects like the Sitka
welding lab renovation and the Tok center renovation. In
FY08, the university received $15 million; it also received
funds in FY04 and FY05 that have been expended.
Ms. Rizk turned to the next project, the UA Energy
Projects. The governor's budget includes $5 million of
federal receipt authority. The project is new to the
capital budget and would provide funding for alternate
energy and energy efficiency projects. She pointed out that
state investment would make the university more competitive
for more federal funding.
Co-Chair Hoffman asked what types of energy projects are
being considered and where in the state the money would be
spent. Ms. Rizk answered that the energy projects would
emphasize alternative energy and energy efficiency options
ranging from small villages to large-scale regional
projects, including hydro and geothermal projects. She
directed the committee to a comprehensive list for details.
The receipt authority could be used in conjunction with the
listed projects.
Co-Chair Hoffman asked what role the board of regents would
play in the decision-making process.
9:17:49 AM
Mr. Kelly answered that the board's role would be less
directing the funds than making decisions about state
energy needs. He pointed out that the Fairbanks energy
program was working closely with the governor's energy
authority. He provided the example of wind-diesel
operations in Kotzebue. He did not know exactly where the
non-general funds would be expended.
Ms. Rizk described the next project, UA Climate Projects.
The governor's budget includes $10 million of federal
receipt authority. Projects funded would include natural
hazard monitoring, improving weather predictions, the
Alaska statewide digital mapping initiative, and permafrost
dynamics.
Ms. Rizk explained the next project as the deletion of the
Graduate Medical Education/Family Practice Residency
Program because the funding was moved from the capital
budget to the operating budget. Mr. Kelly added details
regarding the item.
Ms. Rizk discussed the final project, the UA Gasline
Workforce Development request for $1,720,000. The item was
part of the Department of Labor's gasline request and would
support training for any occupation utilizing heavy
equipment. The item would reduce training costs and
increase training opportunities in Alaska.
Co-Chair Hoffman requested more detail regarding university
receipts for several of the projects. Ms. Rizk asked
facilities personnel to provide detail regarding the source
of funds and receipt authority for the UAF Life Sciences
and Learning Facility, the UAF Energy Technology Building,
and the UAF Fire Station and Student Firefighter Training
Center.
9:20:34 AM
PAT PITNEY, VICE CHANCELLOR, UNIVERSITY OF ALASKA-FAIRBANKS
(testified via teleconference), explained that the $20.6
million listed for the life sciences facility is university
receipt authority. A university bond would be paid back
based on research growth with indirect cost recovery; $20.6
million is the outside edge of what the university can
afford for a facility and would cover half the construction
of the research component. The state funding would be
required to make a usable building. She emphasized that the
facility was the highest priority.
Ms. Pitney added that the $15 million for the energy
facility would come from the same source as the life
sciences facility, indirect cost recovery based on research
growth resulting from having faculty working in the
building.
Co-Chair Hoffman commented that the university would be
requesting $97 million in general funds in FY11. Ms. Pitney
agreed that the university bond funding could only fund a
portion of the facilities. Unlike other university
facilities, the projects have a university-funded
component. In the past, facility funding requests have not
had this component.
9:24:16 AM
Co-Chair Hoffman asked the annual operating costs of the
facilities. Ms. Pitney responded that operating costs would
be approximately $2 million for the life sciences facility
and approximately $500,000 for the energy facility.
Ms. Pitney added that regarding the fire station, the
university is a contractor for the Fairbanks North Star
Borough. The university would look for partnership funding
which would also be university receipts. General funds
would be secured before seeking partnership funding.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (DEED)
MARK LEWIS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, explained that the FY10
budget request includes an internal request for $1 million
for the Mt. Edgecumbe High School that will address
deferred maintenance items; the rest of the capital
appropriation would fund the first 23 projects on the major
maintenance list published February 19, 2009.
Co-Chair Stedman requested the major maintenance list.
9:26:51 AM AT EASE
9:27:04 AM RECONVENED
Co-Chair Stedman explained that the major maintenance list
is compiled by the department. The legislature does not
adjust the list but goes down the list until the money is
spent. He noted that the proposed DEED capital budget
amount was $42.4 million for the current year for major
maintenance for schools around the state.
Mr. Lewis reviewed the major maintenance items, explaining
that the $42,433,481 appropriation funds the first 23
projects on the list:
• Kaltag K-12 School Heating Systems Replacement:
$1,780,835
• Diomede K-12 School Renovation: $15,896,220
• Kodiak Seismic Mitigation Project: $3,236,143
• Craig Middle School Classroom Renovation: $83,588
• Saint Marys Districtwide Fuel Tank Farm Replacement:
$3,306,502
• Craig Elementary School Roof Replacement: $85,807
• Kotlik K-12 Heat Plant Relocation: $1,369,015
• Aleknagik, Clarks Point, and Ekwok K-12 HVAC Upgrades:
$384,186
• Evergreen Elementary School Playground Safety
Upgrades: $770,698
• Kasigluk-Akula K-12 School Generation Building Floor
Failure Repairs: $928,581
• Galena Regional Learning Center Dining Facility
Upgrades: $3,528,598
• Houghtaling Elementary Outdoor Physical Education
Shelter Replacement: $276,110
• False Pass K-12 School Siding Replacement: $92,042
• Platinum K-12 School Prime Power Generators: $181,678
• Allakaket K-12 School Water Systems Improvements:
$861,994
• Saint Marys Garage and Warm Storage Renovation:
$882,608
• Galena Regional Learning Center Gym Building Upgrade:
$6,888,506
• Cold Bay K-12 Heating System Upgrade: $75,789
• Craig Middle School Exterior Envelope Upgrades:
$26,868
• Valley Park Elementary Siding Replacement: $467,164
• Huslia High School Exterior Upgrades: $923,685
• Pacific High School Renovation: $1,736,513
• Sand Point K-12 School Window Replacement: $67,948
Co-Chair Stedman noted that there was approximately a $453
million backlog on the major maintenance list, leaving
around $410 million. Several years previous the legislature
had appropriated around $350 million and moved the entire
list. He assured the public that the other major
maintenance issues would be addressed in the future when
there is more money. He pointed out that the current budget
addressed 23 projects out of a list of 138.
Co-Chair Hoffman asked how the amount of $42 million was
determined, noting that the next unfunded item on the list
was a Bethel project. Mr. Lewis replied that initially DEED
had requested funding for the first 20 projects on the
list, based on the November 8 list. After reconsideration,
priorities changed, allowing three more projects.
Co-Chair Hoffman asked how the initial list was determined.
Mr. Lewis answered that OMB gave DEED an amount it could
request.
9:34:33 AM
DEPARTMENT OF PUBLIC SAFETY (DPS)
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, directed the committee to the
department's list, beginning with Aircraft and Vessel
Repair and Maintenance. He explained the item as an annual
request for routine and emergency repairs to aircraft and
vessels, which is relatively expensive. The department has
provided a list showing the types of repairs and
maintenance that may be necessary; he noted that priorities
could change.
Senator Olson asked how much was appropriated in FY09. Mr.
Spencer answered $1 million. Senator Olson queried the
number of airplane accidents during the year. Mr. Spencer
replied that he would get the information for the
committee.
Co-Chair Stedman requested the information for the last
three years.
Senator Olson clarified that his primary concern was the
number of airplane and helicopter accidents over the past
year. He wanted to see if the department is addressing the
issue of the number of accidents occurring.
Co-Chair Stedman asked for the information for the past
five years.
9:37:51 AM
Mr. Spencer agreed to provide the information and added
that DPS conducted a lot of flight under abnormal
conditions, particularly when conducting search and rescue
missions and rural landings for wildlife enforcement.
Senator Olson stated that he was not concerned about search
and rescue but other situations that he had witnessed.
Mr. Spencer moved to item 4, $400,000 for Alaska Wildlife
Troopers Law Enforcement Equipment Replacement, and item 6,
$500,000 for Alaska State Troopers Law Enforcement
Equipment Replacement. He noted that the items were an
annual request for routine replacement of equipment such as
snow machines, outboard motors, firearms, ballistic vests,
and other equipment that wears out on a regular basis.
Senator Huggins asked for more information regarding the
purchase of firearms. Mr. Spencer replied that he would get
the information.
Mr. Spencer turned to item 8, $2 million for the final
phase of the Alaska Public Safety Information Network. He
noted that the system had been before the legislature for
different appropriations over the past eight years. A
significant amount of federal funding has gone into the
program; it has received more federal than state funding.
The department has been unable to obtain more federal
funding, so the amount requested is needed to complete the
project.
9:40:22 AM
Mr. Spencer described item 12, $2.5 million for the
Anchorage Aircraft Hangar Replacement, Phase II. He
reminded the committee about a prior $3 million
appropriation for the project. Subsequent discussion with
the Department of Transportation and Public Facilities
(DOT/PF) revealed that the actual cost of the needed
building would be over $5 million. He stated he would
return with further information if the bids come in lower.
Senator Olson asked whether the project was in line with
the Anchorage airport master plan. Mr. Spencer understood
that the project complied with the master plan.
Senator Olson queried the status of other hangars that were
for sale. Mr. Spencer answered that there had been
discussion about other hangars but it was determined that a
new hangar was better. Senator Olson referred to a change
of management in an aviation company that resulted in
vacated hangars at the airport.
9:44:12 AM
Co-Chair Stedman queried the department's timeline. Mr.
Spencer was not certain. Co-Chair Stedman asked for an
update on the information, noting the radical changes in
economic conditions that may present new opportunities.
Senator Olson discussed the location of possible hangars.
Senator Huggins asked whether the department had researched
the availability of other hangars.
Mr. Spencer noted that DPS had considered possible
opportunities presented by the changing status of Kulis
Air; the Kulis hangar could accommodate some of the larger
aircraft, but he believed the new hangar would still be
necessary.
9:46:41 AM
Senator Huggins questioned the involvement of DOT/PF and
expressed concern about the 50 percent increase in the cost
of the project. Mr. Spencer explained that the initial $3
million request did not include a formal bid estimate. Once
DPS worked with DOT/PF, it became clear that changes in the
economic situation would increase costs.
Senator Huggins reiterated his concerns and asked when
DOT/PF would update the plan. He noted amendments that had
been made. Mr. Spencer responded that the estimate was
valid. He was optimistic that the project could be done for
the initial estimate.
9:49:47 AM
Mr. Spencer continued with item 14, $100,000 for Crime
Laboratory Equipment Replacement. He stated that the
department would like to get regular appropriations for
replacing equipment. The crime lab equipment is expensive.
He noted that the department has been searching for federal
funds.
Mr. Spencer described item 16, $1.5 million for Statewide
Facilities Maintenance, Repairs, and Improvements. He
pointed out that sixty facilities including offices,
storage, and trooper housing require repair that is often
expensive, especially in emergency situations. The
department would like regular funding to prevent the need
for deferred maintenance.
Mr. Spencer turned to item 19, $800,000 for Network Storage
Servers and Software. He explained that the item would
allow the department to use equipment such as in-car video
systems that have already been funded and installed.
Policing operations are becoming more technology-based and
Alaska is not keeping pace.
9:52:36 AM
Mr. Spencer detailed item 22, $480,000 for the Alaska State
Trooper Mobile Data Computers, Phase II. He reminded the
committee of a previous $480,000 appropriation for the
first phase of the program and explained the use of the
computers used in squad cars and elsewhere in the field.
Mr. Spencer moved to item 24, $240,500 for the Online Fire
and Life Safety Plan Review System Phase II, Mobile
Systems. The system was funded several years previous and
was near completion. He explained how the system would
allow building inspectors access to information and to
print out reports in the field. The system provides better
service to the customer and is more efficient and cost
effective for the state.
Mr. Spencer explained item 27, $220,000 Alaska Law
Enforcement Information Sharing System (ALEISS, pronounced
"alias") Support. The system allows the sharing of
information among many state agencies. He emphasized that
the system was not the same as the Alaska Public Safety
Information Network, an official repository of criminal
records and other information. The ALEISS allows police
agencies to share information. The program has been
federally funded but that funding is no longer available.
The department is looking for a long-term funding solution;
the capital request is bridge funding.
9:55:47 AM
Senator Huggins asked how many local entities would be able
to interface with the system. Mr. Spencer answered that
most local agencies would be able to interface with ALEISS.
Senator Huggins asked if local agencies paid for the
interface. Mr. Spencer thought the agencies already had
interface capability. The request is to maintain the
system. He offered to get details.
Senator Huggins pointed out that if the expense was for
upkeep of the system it should be an operating and not
capital request. Mr. Spencer opined that the item could go
either way. He questioned whether the request for the
current year would fall into a fiscal year, as required for
the operating budget.
Senator Huggins asked if DPS would return with the same
request the following year. Mr. Spencer answered that the
department did not expect to be back for the item. Senator
Huggins asked how the system would then be supported. Mr.
Spencer explained that the item is not currently in the DPS
budget because ALEISS is overseen by a consortium [of law
enforcement agencies] which has been getting on-going
federal funding. The funding is no longer available, so the
department looking for on-going funding. The request is
only a bridge until additional, non-state funding is found.
He emphasized the importance of ensuring funding for the
program. He stated that the department would take advantage
of other opportunities.
9:58:27 AM
Senator Huggins reiterated concerns about the request being
for operational and not capital costs.
Co-Chair Stedman asked the department to look at the issue.
Mr. Spencer turned to item 29, $200,000 for Computer
Replacements. The department wants to have a regular system
for replacing computers, some of which are obsolete. The
item would fund needed replacement of one quarter of DPS
computers, which should happen on an annual basis.
Mr. Spencer detailed item 30, $125,000 for the Alaska
Wildlife Troopers Navigation Data Storage Project. The item
would build a data base of information regarding important
sites around the state, including remote landing sites for
wildlife patrol and search and rescue missions. Currently
the department relies on the local knowledge of whoever is
assigned. A new trooper or other search and rescue
personnel would have access to a stockpile of important
information. He pointed out that the item was ranked on the
priority list.
Co-Chair Stedman suggested expanding the program to let
experienced wildlife troopers mark marine locations where
there is aggressive sport activity. New troopers could
benefit from the accumulated knowledge of more experienced
troopers.
10:01:43 AM
Co-Chair Stedman referred to the Sitka Public Safety
Training Academy and pointed to community support for
expanding the academy and adding a driving range.
Reasonable expansion of the academy's land base could be
accomplished by taking advantage of the closing of nearby
Sheldon Jackson Community College. Mr. Spencer stated that
DPS strongly supports the driving range in Sitka as the
current situation not good.
Co-Chair Hoffman asked how Village Public Safety Officer
(VPSO) equipment got replaced. Mr. Spencer responded that
the VPSO equipment has been replaced in the past using
leftover funds. Federal rural law enforcement equipment
funds have also been used.
Co-Chair Hoffman emphasized that the VPSOs needed the same
consistent funding as troopers and should not have to rely
on leftover funds. He did not want the village public
safety program treated as a stepchild of the department.
10:05:38 AM
Co-Chair Stedman noted that in FY09, $600,000 had been put
in the budget for the driving range, but the appropriation
was cut. The committee had been told that the department
would request $3 million for the driving range in FY10. He
understood that declining revenues affected the choice, but
he wanted to take advantage of the opportunity of the
available adjacent land. He asked the department to return
to the committee with more information.
Senator Olson asked if there was an academy in Fairbanks
for law enforcement training. Mr. Spencer did not know but
offered to find out.
Mr. Spencer turned to item 31, $2.5 million federal
receipts for the Marine Fisheries Patrol Improvements. He
explained that DPS has a joint enforcement agreement with
the National Marine Fisheries Service. He referred to
discussion as to whether the item should be in the
operating or capital budget. Some of the funds are used for
capital expenditures that cross fiscal years.
Co-Chair Stedman asked if the item included monitoring
illegal fishing activities. Mr. Spencer responded in the
affirmative and added that the item funds dockside checks.
10:09:06 AM
Co-Chair Stedman emphasized the need for more active
wildlife policing in Southeast Alaska, especially for
illegal fishing; there is very little protection unless
there is a specific complaint. He expressed frustration.
Mr. Spencer noted his concerns.
Senator Huggins queried the status of the crime lab on the
capital priority list and the current cost estimate of the
lab. Mr. Spencer responded that the lab is still the
department's top priority. The lab has been designed, but
questions were raised regarding the size of the facility
and a study was contracted for. A report was generated, but
questions remain; DPS is still assessing the situation. He
did not know whether a request for the facility would be
forthcoming. The department would like to have a request,
but it recognizes legislative and public concerns regarding
the appropriateness of the size of the facility as
designed.
Co-Chair Stedman asked for an update on the report as well
as more information regarding site development. He referred
to concerns about the expense of delaying development.
10:14:10 AM
Mr. Spencer understood that the final agreement with the
municipality of Anchorage included a provision that the
municipality would buy the site at market value if the site
is developed but does not go forward.
SB 75 was HEARD and HELD in Committee for further
consideration.
10:14:52 AM
| Document Name | Date/Time | Subjects |
|---|---|---|
| DEED FY10FinalMaintList.pdf |
SFIN 3/18/2009 9:00:00 AM |
SB 75 |
| DEED FY10FinalConstructionList.pdf |
SFIN 3/18/2009 9:00:00 AM |
SB 75 |
| Univ R&R List $8 Mill FY2010.pdf |
SFIN 3/18/2009 9:00:00 AM |
SB 75 |