Legislature(2011 - 2012)SENATE FINANCE 532
03/14/2012 01:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB160 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 192 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 160 | ||
SENATE FINANCE COMMITTEE
March 14, 2012
1:00 p.m.
1:00:23 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 1:00 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Les Campbell, Director of Budget, Alaska Housing Finance
Corporation, Department of Revenue; Stacy Schubert,
Director, Governmental Relations and Public Affairs, Alaska
Housing Finance Corporation, Department of Revenue; John
Anderson, Weatherization Project Officer, Research and
Rural Development, Alaska Housing Finance Corporation,
Department of Revenue; Joseph Masters, Commissioner,
Department of Public Safety; Dan Spencer, Director,
Division of Administrative Services, Department of Public
Safety.
SUMMARY
SB 160 BUDGET: CAPITAL
SB 160 was HEARD and HELD in committee for
further consideration.
#sb160
SENATE BILL NO. 160
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
DEPARTMENT OF REVENUE
RN 6347
AHFC Housing and Urban Development Federal HOME Grant
$4,050,000
LES CAMPBELL, DIRECTOR OF BUDGET, ALASKA HOUSING FINANCE
CORPORATION, DEPARTMENT OF REVENUE, explained that this
project utilizes 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 state's ability 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.
RN 6342
AHFC Housing and Urban Development Capital Fund Program
$3,200,000
Mr. Campbell stated that the Federal (HUD) grant provides
Public Housing Authorities (PHAs) with funds each year to
help renovate and modernize public housing units. The
annual Capital Fund Program (CFP) fund, including
Replacement Housing Factor (RHF) funds, was approximately
$2.8 million this fiscal year. The current request is
intended to cover the spending authority required for the
amount of funds anticipated next year, including any other
incentives that may be available as a high performing PHA.
The Federal government, through the U.S. Department of
Housing and Urban Development (HUD), provides PHAs with
money each year to help renovate and modernize their public
housing through the Capital Fund Program. To access this
money, each PHA, with the active involvement of residents
and local government officials, must develop a
comprehensive (five-year) plan detailing modernization
needs within the PHA's housing inventory and establishing a
timetable for meeting those needs. The dollar amount of the
annual grant is established by a formula using the number,
configuration, and size of the PHA's low rent units. The
annual grant also provides funds for administrative
expenses, tenant-education projects, drug-
elimination/safety projects, and management improvements.
Projects funded by this year's request include: a set aside
for the San Roberto Redevelopment; renovation or
replacement of various public housing units statewide; code
compliance issues; and energy audits. Also included are
funds to provide operation and management improvements,
such as PHA staff training; resident training; training for
low-income businesses; and upgrades to the information
system and area-wide network enhancements at low rent
developments.
RN 6348
AHFC Federal and Other Competitive Grants
$4,500,000
Mr. Campbell announced that this request is for Federal
Housing and Urban Development (HUD) and Corporate match
(AHFC) funds which allows AHFC to apply for HUD, other
federal agency, and private foundation grants that target
the housing needs of low-income and special needs groups
such as: senior citizens, the mentally ill, disabled or the
homeless. In cases where grants require a match, AHFC funds
will be used to the extent necessary. Grant funds received
are often passed through to local nonprofit organizations.
The purpose of the program is to allow AHFC to apply for
HUD, other federal agency, and private foundation grants
that target the housing needs and supportive services of
low-income and special needs groups such as: senior
citizens, the mentally, physically, or developmentally
disabled, or the homeless. AHFC will also apply for energy-
related grants as they relate to housing. When required,
AHFC will provide the needed matching funds. Some of the
funds received will be passed through to local nonprofit
sub-grantee organizations that deliver housing and/or
services.
RN 6350
AHFC Competitive Grants for Public Housing
$1,000,000
Mr. Campbell declared that this request is for Federal
Housing and Urban Development (HUD) and 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 grant funds received
will be passed through to local nonprofit sub-grantee
organizations that deliver housing and/or services. The
request stated that AHFC will apply for grants and utilize
those grant funds to target services to families and
persons who are eligible for public and/or assisted
housing. Grant funds within this category may be used to
prevent and reduce crime and substance abuse in public
housing and to aid PHD-assisted families to attain economic
self-sufficiency. When required as a condition of funding,
AHFC may provide the needed match. Examples of previous
grantors include the Robert Wood Johnson Foundation, the
Dept. of Education, U.S. Dept. of Housing and Urban
Development, and the U.S. Dept. of Health and Human
Services.
1:06:12 PM
RN 45389
AHFC Statewide ADA Improvements
$500,000
Mr. Campbell stated that Corporate (AHFC) funds will be
used to address accessibility upgrades identified by a HUD
Fair Housing Inspection dated September 2006. The upgrades
are to be made over a five-year period to comply with ADA
and Section 504 requirements of a Voluntary Compliance
Agreement (VCA) recently negotiated with HUD. This request
will provide funding to continue the upgrades for
accessibility to the AHFC Family Investment Centers,
dwelling units, and common areas for family and
senior/disabled housing to comply with the HUD Voluntary
Compliance Agreement (VCA). AHFC was subjected to an
inspection by HUD in September 2006 for accessibility for
individuals with disabilities. A report dated October 2006
was received by AHFC on September 27, 2007, which details
compliance issues at six specific residential properties
chosen randomly in Anchorage and Fairbanks and their
respective Family Investment Centers. The report details
requirements to upgrade parking spaces, sidewalks,
wheelchair ramps, kitchens, bathrooms, entry doors and
appliances in AHFC offices, common areas, and dwelling
units. A VCA has been negotiated with HUD to address the
accessibility issues over the course of a five-year program
where AHFC is expected to upgrade a minimum number of units
to satisfy the terms of the VCA with HUD. Implementation of
these accessibility upgrades will increase accessibility
for individuals with disabilities, allow for aging-in-place
for seniors and allow AHFC to comply with all applicable
federal regulations. Implementing these tasks will also
allow AHFC to remain in compliance with HUD mandates to
maintain accessibility.
RN 37918
AHFC Housing Loan Program
$6,000,000
Mr. Campbell explained that this project will provide funds
to supplement the Corporation's popular housing programs
through gap funding. Funding will allow AHFC to continue
current programs and expand business opportunities with new
Teacher Housing, Health Professionals, Public Safety and
Village Public Safety Officers housing programs. The
purpose of this program is to provide gap funding to
increase homeownership and/or rental units throughout the
state. This program is designed to help retain desirable
professionals in high-cost areas.
RN 49395
AHFC Teacher, Health, and Public Safety Professionals
Housing
$5,000,000
Mr. Campbell stated that this project will provide 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 Teacher Housing, Health Professionals, and Public
Safety housing programs. One million dollars are
specifically set aside through an allocation for the
Village Public Safety Officer's (VPSO) program.
RN 49369
AHFC Village Public Safety Officers Housing
$1,000,000
Mr. Campbell explained that this project will provide funds
to supplement the Corporation's popular housing programs
through gap funding. These funds will allow AHFC to expand
business opportunities with new housing programs
specifically set aside for rural public safety personnel.
Co-Chair Stedman asked for a clarification on where there
were problems in the Village Public Safety Officer housing.
Mr. Campbell responded that there was a partnership with
the Department of Public Safety (DPS), and provide funding
to help DPS in some projects.
RN 52598
AHFC Energy Programs
$51,500,000
Mr. Campbell stated that the AHFC Energy Program utilizes
State General Funds (GF) Receipts and Federal U. S.
Department of Energy (DOE) funds to assist low and moderate
income families attain decent, safe and affordable housing
through the weatherization and rehabilitation of existing
homes. The Weatherization Program provides energy
efficiency upgrades to homes using the latest building
science tools to target heat loss areas and correct them.
Installed measures must be cost effective. The Home Energy
Rebate Program utilizes State General funds to provide
rebates to homeowners for making energy efficient
improvements to their homes to reduce energy costs or
purchase newly constructed homes that achieve a 5 Star Plus
rating.
RN 50683
AHFC Weatherization Program
$31,500,000
Mr. Campbell declared that the Weatherization Program
utilizes Federal U. S. Department of Energy (DOE) and State
General Funds (GF) funds to assist low and moderate income
families attain decent, safe, and affordable housing
through cost effective weatherization and rehabilitation of
existing homes. Weatherization provides energy efficiency
upgrades to homes using the latest building science tools
to target heat loss areas and correct them. Installed
measures must be cost effective. The program addresses
health and safety through tune-ups for heating systems,
electrical and chimney repairs, and woodstove improvements.
1:10:17 PM
RN 51947
AHFC Home Energy Rebate Program
$20,000,000
Mr. Campbell stated that AHFC Home Energy Rebate program
utilizes State General Fund appropriation to rebate
homeowners for making energy efficient improvements to
their homes. The program began in April of 2008, with an
appropriation of $100 million from the Alaska State
Legislature. By the fall of 2008 another $60 million was
appropriated to the program. In order to maintain the
current pace established in FY08, FY09 and FY11 and
eliminate the waiting list, new funding is required.
Participants must own their homes and all improvements must
be paid for up front by the homeowner.
STACY SCHUBERT, DIRECTOR, GOVERNMENTAL RELATIONS AND PUBLIC
AFFAIRS, ALASKA HOUSING FINANCE CORPORATION, DEPARTMENT OF
REVENUE, stated that a sample of 15,906 homeowners was
conducted. The average amount of money spent in each home
unit was $11,009; and the average rebate was $6,3076 with
an additional state appropriation of $500 that was provided
for the as-is and post-rating for each home, totaling $109
million. This resulted in an out-of-pocket expense for each
homeowner who participated in the rebate program, on
average, $4,133; totaling the private sector contributions
of over $65 million.
Senator Thomas wondered how the money was split between the
funding for the rebate and weatherization programs. Mr.
Campbell responded that the weatherization program was $30
million and the rebate program was $20 million. He added
that the weatherization program had $1.5 million in federal
funds.
Senator Thomas wondered if the wait list for the programs
was long or short.
JOHN ANDERSON, WEATHERIZATION PROJECT OFFICER, RESEARCH AND
RURAL DEVELOPMENT, ALASKA HOUSING FINANCE CORPORATION,
DEPARTMENT OF REVENUE, replied that the rebate program wait
list was below 1400 with a three-month wait limit; and the
weatherization agencies used a year by year process for
their wait list.
Co-Chair Hoffman stated in the prior year's budget, the
administration had proposed $25 million for both of the
programs, and $100 million was enacted. He wondered if
those funds could be obligated, and if the program could
sustain a level of $100 million. Mr. Henderson replied that
he felt the program could use the $100 million, and there
was "ramped up capacity" for each program to $100 million a
year.
Ms. Shubert added that they had not the program had not
been advertised since 2008, and felt that it was impressive
that the wait list remained at three months.
RN 45390
AHFC Homeless Assistance Program
$8,000,000
Mr. Campbell explained that the request was for State
General Funds (GF), Mental Health Trust Authority Receipts
(MHTAAR), and State General Funds/Mental Health (GF/MH),
for grants to local communities/agencies to help develop
programs to support programs designed to reduce
homelessness by providing services that prevent housing
displacement and assist the homeless to transition back to
permanent housing. Corporate programs will be leveraged
with the other funds. All funds will be combined and
administered as one program by AHFC.
RN 6360
AHFC Beneficiary and Special Needs Housing
$1,750,000
Mr. Campbell explained that State General Funds (GF) and
Corporate (AHFC) funds will provide for a continuing
program to serve populations with special housing needs.
The program provides funds to Alaskan nonprofit service
providers to increase housing opportunities for Alaska
Mental Health Trust Authority (AMHTA) beneficiaries and
other special needs populations throughout the state. The
funds may be used for housing development and/or services
designed to achieve long-term residential stability.
1:15:59 PM
Mr. Campbell stated that the total funding for the AHFC
projects was $121,628,400. Of that total funding,
$16,536,300 was corporate dividends, $11,750,000 was
federal funding, and $93,342,000 was other state general
funds.
Co-Chair Stedman expressed the need for a conversation with
AHFC to discuss the issues regarding the changing capital
yields and refinancing of mortgages. Ms. Shubert agreed to
participate in that discussion.
1:18:30 PM
DEPARTMENT OF PUBLIC SAFETY
JOSEPH MASTERS, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
(DPS), stated that most of the DPS budget requests were
directly related to either maintenance of operation,
prolonging equipment lifespan, and repairing facilities.
RN 54346
Alaska Public Safety information Network (APSIN) Contractor
Support
$680,000
Commissioner Masters explained that The Alaska Public
Safety Information Network (APSIN) contains criminal
history information used by law enforcement agencies across
Alaska. It is a major tool used in meeting the department's
mission of protecting the public. This has been an ongoing,
phased project to move APSIN from the State of Alaska
legacy mainframe to a Microsoft and Intel server platform,
and at the same time enhance the Alaska Public Safety
Information Network's capability. This project will use
contracted professional services to provide support during
the transition from the mainframe and support new
initiatives until skilled employees can be hired to
maintain these systems.
RN 37774
Alaska State Troopers Law Enforcement Equipment
$500,000
Commissioner Masters stated that this project will purchase
new and replacement law enforcement equipment for use by
the Alaska State Troopers. The Alaska State Troopers rely
upon capital improvement 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
by protecting lives, property and public peace.
RN 45300
Alaska Wildlife Troopers Law Enforcement Equipment
$500,000
Commissioner Masters explained that this project will
purchase new and replacement law enforcement equipment for
use by the Alaska Wildlife Troopers. The Alaska Wildlife
Troopers rely upon capital improvement project funding for
purchase of equipment used for day-to-day operations in
order to meet the department's mission of ensuring public
safety and enforcing state laws by protecting lives, public
peace, and wildlife resources.
1:20:33 PM
RN 51707
Village Public Safety Officer Equipment
$375,000
Commissioner Masters announced that this project will
provide equipment replacement funding in support of the
Village Public Safety Officer (VPSO) program. The VPSOs
rely upon capital improvement project funding for equipment
purchases for day-to-day operations in order to meet the
department's mission of public safety and enforcing state
laws by protecting lives, property and public peace in
rural communities.
RN 54510
Search and Rescue and Law Enforcement Helicopter
$3,000,000
Commissioner Masters explained that this capital request is
for the purchase of a turbine helicopter for search and
rescue missions and law enforcement activity, primarily in
interior Alaska. The department purchased a turbine Bell
Jet Ranger helicopter that was based in Fairbanks from 1982
to 1995. This first helicopter was used extensively but was
destroyed by fire after a fuel line separated in flight. It
was subsequently replaced by a used helicopter which was
removed from service due to airframe fatigue. In 2001, the
Department based a piston driven helicopter (R-44) in
Fairbanks. This helicopter is meant to conduct wildlife
patrols in Interior Alaska and is neither equipped nor
performance-capable as a SAR platform. However, being the
only Department helicopter available in the region, it is
frequently utilized in SAR and routine law enforcement
missions. As an example, the R-44 was used to transport the
Specialized Emergency Reaction Team (SERT) personnel to the
scene of a shooting of the Trans-Alaska Pipeline in October
2001 which required multiple round trips to ultimately get
all team members on-scene. Following this incident, the R-
44 flew almost daily missions guarding the Trans-Alaska
Pipeline; a nationally designated critical infrastructure.
The R-44 has also conducted numerous searches for missing
people, recovered bodies, and provided medical transport.
There have been cases where the R-44 could not conduct
missions because of its limitations; it was never meant to
do these types of missions.
Commissioner Masters declared that this project will
purchase a new turbine helicopter to meet the search and
rescue and mission-critical operational needs in the
Interior of Alaska. The Department of Public Safety is
statutorily responsible to provide law enforcement to the
citizens of Alaska. This duty includes search and rescue
(SAR), emergency law enforcement response, crime detection
and prevention, surveillance, narcotics interdiction,
traffic management, and civil disorders/public events.
Interior and Northern Alaska's geography and extreme
weather conditions create enormous challenges for the
Alaska State Troopers (AST) to quickly and effectively
respond to emergencies and a lack of suitable equipment can
put Alaskans living in this region at dire risk. It is
critical for AST to have the capability to quickly access
remote areas during adverse weather conditions with a
helicopter that is adequately equipped and has the payload
to fulfill its mission.
1:24:07 PM
Co-Chair Hoffman stated that he represented an area that
was larger than the state of Washington. He noted that in
this area, the primary mode of transportation in the winter
was by snow machines. He wondered how the search and rescue
requirements in that region compared to Fairbanks.
Commissioner Masters replied that a number of different
factors went into the selection of where to house the
aircraft. He agreed to provide further information.
Co-Chair Hoffman understood that access to facilities was a
criteria, but the number of people that will be served
should be the main factor when deciding where to house a
search and rescue aircraft.
Senator Olson wondered why a used helicopter could not be
purchased. Commissioner Masters replied that it was a
significant investment, and they had tried to purchase a
used aircraft but it had only lasted a few years.
1:29:06 PM
Senator Olson felt that it was odd to pull an aircraft
offline, because it was an older aircraft. He wondered why
there was a full-time crew employed for the search and
rescue helicopter, when there was a focus on keeping the
cost down. Commissioner Masters replied that there was a
Fairbanks asset that had been redeployed, and was no longer
available.
Senator Olson said he was concerned about getting another
major aircraft that required maintenance and a 24-hour
standby crew. He wondered what other jobs the helicopter
crew would be doing besides search and rescue. Commissioner
Masters responded that the asset request in Fairbanks
included search and rescue, emergency law enforcement
response, and wildlife protection and investigations. The
top priority was always maintaining life, and aircraft
would be utilized for a wide variety of DPS functions.
There was a request for one full-time pilot position, and
the support positions would be utilized depending on the
aircraft's type of use.
Senator Olson noted that there were concerns that game
wardens would scare the game away.
Senator Egan asked what DPS used for search and rescue
helicopters in Southeast Alaska. Commissioner Masters
replied that he would have to get back to the committee
with that information. He stated that Southeast Alaska had
the largest number of helicopters than any other area in
the state.
Co-Chair Stedman asked how many miles outside of Fairbanks
the helicopter would respond. Commissioner Masters stated
that the effective range of the helicopter would be
somewhere around 100 to 200 miles.
1:36:34 PM
Co-Chair Hoffman requested a statistical analysis for
Districts A and C. Commissioner Masters agreed to provide
that information.
Senator Olson stressed that if the aircraft was hauling a
heavy load, it would decrease in fuel at a rapid rate.
RN 54512
P/V Woldstad- Engine Repower and Other Dry Dock Maintenance
$2,400,000
Commissioner Masters stated that the propulsion systems of
the Patrol Vessel (P/V) Woldstad are overdue for
replacement. The engines are several thousand hours overdue
for overhaul and due to the antiquity of the engines, parts
have to be manufactured and are very expensive. New engines
will be approximately 25 percent more efficient and less
expensive to maintain. The propeller and shafting system
are also antiquated with parts and service being very
difficult to find, making maintenance costs exorbitant.
Other mechanical systems, such as generators for the boat
are also beyond their useful life. Total cost for the
mechanical replacement are estimated at $2,200,000 and
other shipyard costs are estimated at $200,000.
Co-Chair Hoffman asked if vessel operated out of Kodiak.
Commissioner Masters affirmed.
Co-Chair Hoffman declared that the House District should be
changed to 36 instead of 37. Commissioner Masters agreed to
examine that issue.
AMD 54924
Alaska Justice Advanced Exchange Program Development
$1,812,000
Commissioner Masters explained that this is a new project
for FY2013 because additional review was completed after
the release of the December 15th FY2013 Governor's budget.
The Alaska Public Safety Information Network (APSIN) is the
center of all criminal justice information systems in the
State of Alaska. The Alaska Justice Advanced Exchange
(AJAX) project is the culmination of the Department of
Public Safety's (Department) APSIN redesign effort that
interfaces all criminal justice systems and allows them to
exchange information. With AJAX, the department will
develop web services to enable integration with and in
support of Multi-Agency Justice Information Exchange
Consortium (MAJIC) members.
Co-Chair Stedman wondered if the system would allow a
trooper to access an individual's criminal history.
Commissioner Masters responded that the system allowed for
that option, depending on how each department information
systems were set up. He stressed that the project would
allow DPS to share the criminal justice information with
computerized systems of other entities, so the other
entities could search and sort the data.
RN 6121
Aircraft and Vessel Repair and Maintenance
$869,800
Commissioner Masters explained that DPS annually requests
repair and maintenance funds for department aircraft and
vessels. These assets are crucial tools used to achieve the
department's mission to ensure public safety and enforce
fish and wildlife laws. 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 and components when they reach the
limits of safe useful life. 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.
RN 49781
Public Safety Academy Dining Facility Construction
$200,000
Commissioner Masters stated that this project provides
additional funds needed for construction of a dining
facility as part of the Public Safety Academy in Sitka.
1:41:57 PM
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, stated that the project was
currently at 100 percent, and the project would go online
at the end of the current week.
Co-Chair Stedman felt that the troopers should be well-fed.
Mr. Spencer stated that the completion of the project was
timed to when the contract for food at the Academy runs
out.
Co-Chair Hoffman wondered if any funds would be requested
after FY 13.
Co-Chair Stedman responded that the request was an
increment.
RN 35825
Marine Fisheries Patrol Improvements
$1,500,000
Commissioner Masters stated that this project is a part of
a joint enforcement agreement with the National Marine
Fisheries Service. Federally regulated marine fisheries
occur on a year-round basis in the coastal and offshore
waters of Alaska. Both the federal and state governments
share an interest in ensuring these fisheries are
protected. This request is for the federal fiscal year 2012
joint enforcement agreement that will help the department
achieve its mission to ensure public safety and enforce
fish and wildlife laws and protecting wildlife resources.
Co-Chair Stedman wondered if DPS was adequately supplied
for fuel in the marine patrol units. Commissioner Masters
replied that they were currently adequately fueled, and
unanticipated increases in fuel prices were addressed in a
different portion of the budget.
AMD 54927
Alaska Land Mobile Radio Emergency Response Narrowband
Compliance
$1,470,000
Commissioner Masters stated that this is a new FY2013
capital project due to cost estimates that were finalized
after the December 15th 2013 Governor's budget. The State
of Alaska, the Department of Defense, other federal
agencies in Alaska, and local municipalities have joined
together in a consortium effort to design, build, operate
and maintain a fully interoperable wireless communications
system in Alaska, the Alaska Land Mobile Radio (ALMR)
project. The primary objective of ALMR is to provide a
reliable and secure emergency communications system for all
emergency responders in Alaska. In order to accomplish
this, the Federal Communications Commission (FCC) has
mandated this narrowband conversion requirement by January
1, 2013.
1:45:31 PM
AMD 48989
Replacement Twin-Engine Turbine Aircraft
$7,600,000
Commissioner Masters explained that this project will
replace the Department of Public Safety's (DPS)
increasingly unreliable, 31 year-old twin-engine turbine
powered aircraft, a King Air 200, which has been grounded
for maintenance about one-third of the time over the past
two years. Because of the age of the aircraft, finding
parts is becoming more difficult, increasing down time and
maintenance costs. This is a new FY13 capital project due
to recent unplanned downtime from landing gear system
failure.
Co-Chair Stedman queried the status of the King Air.
Commissioner Masters responded that it was still used for
VIP transport, primarily for transport of the governor.
Co-Chair Stedman asked where the airplane was kept.
Commissioner Masters replied that the aircrafts were housed
in Anchorage in a centralized facility.
1:50:10 PM
Senator Olson observed that the current year's capital
budget was very large, and queried the beach craft landing
gear issue. Commissioner Masters replied that the gear
cycling were not operating safely.
Senator Olson stated that there were two King Airs flying
out of Nome, providing medi-vac service. He wondered if DPS
had considered getting a used aircraft. Commissioner
Masters replied that the aircraft they were looking at
would depend on particular landing strips. He stated that
when he looked at the used aircrafts, they were mostly out
of the country. He stressed that there was a cut over point
on some of the older aircraft.
1:55:04 PM
Senator Olson wondered how many hours a year the aircraft
would be used. Commissioner Masters responded that the King
Air 200 was used around 400-500 hours a year. He felt that
the proposed aircraft would potentially be used for more
than 500 hours.
Senator Olson stated that he done the calculation for
leasing an aircraft at $35,000. If DPS used the aircraft
for $35,000 a month for 12 months, it would cost the State
$420,000 a year. If it was flown 400 hours a year, the
engine reserve would equal $280,000 - which was roughly
$700,000 a year. It would take 10 years to use up the $7.6
million request. He felt that a leasing option was a better
option. Commissioner Masters responded that DPS felt it was
better to make the investment outright, to save money for
engine reserves.
Senator Olson wondered if the maintenance included the
crew. Commissioner Masters agreed to provide that
information.
RN 41788
Deferred maintenance, Renewal, Repair and Equipment
$1,350,000
Commissioner Masters stated that this project is for
maintenance within the four DPS occupied state-owned
buildings throughout Alaska. Without adequate funding to
store evidence, protect department-owned equipment, and
provide employees with good working conditions, the
department cannot meet its mission or accomplish stated
results.
Co-Chair Stedman asked for a brief update on the purchase
of the property adjacent to the Academy in Sitka driving
range. Commissioner Masters replied that DPS had signed an
intent to purchase the property.
Mr. Spencer furthered that there was a signed agreement
with the Baranof Island Housing Authority to purchase the
property. A final plat needed to be filed by the City of
Sitka, and after the survey was complete, the Corps of
Engineers would be part of the planning. He hoped to
complete the purchase by the end of the current month.
Co-Chair Stedman wondered there was money available for the
design of the track. Mr. Spencer replied that DPS was
working on finding someone to design a track. At that
point, the Corps of Engineers would be approached with a
potential plan.
Co-Chair Stedman surmised that they were waiting for the
final purchase, so DPS would revisit that issue once they
are ready.
2:01:31 PM
Co-Chair Hoffman wondered how 911 emergency calls were
handled in Bethel, and other areas throughout the state.
Mr. Spencer replied that there was not a 911 call standard
for the entire state. He explained that there were a wide
variety of ways the calls were handled in the rural areas.
He noted the issue of where the 911 calls from cell phones
were routed, and announced that DPS was working with GCI to
fix that issue.
Co-Chair Hoffman recommended an exploration of how the 911
calls were being dispatched, and what kind of contracts
were throughout the state. Mr. Spencer agreed to provide
that information. Co-Chair Hoffman stressed that the
information should be provided as soon as possible.
SB 160 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the following day's agenda.
ADJOURNMENT
2:06:01 PM
The meeting was adjourned at 2:05 PM.
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