Legislature(2013 - 2014)SENATE FINANCE 532
02/13/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB18 | |
| Department Overview: Department of Education and Early Development | |
| Department Overview: Department of Natural Resources | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 18 | TELECONFERENCED | |
SENATE BILL NO. 18
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds; and providing for an
effective date."
9:02:17 AM
Co-Chair Meyer stated that today's meeting would be
abreviated.
^DEPARTMENT OVERVIEW: DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT
9:02:59 AM
ELIZABETH SWEENEY NUDELMAN, DIRECTOR, SCHOOL FINANCES AND
FACILITIES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
reviewed capital budget items.
Reference Number (RN) 57038
Mt. Edgecumbe High School Heating Plant - Boilers and
Utilidor Piping Replacement
$1,500,000
Ms. Nudelman explained the campus heating replacement
project for the Mt. Edgecumbe residential high school. She
noted the project's importance since the heating system was
originally purchased in the 1940s. The funding would secure
the system, which experienced multiple breakdowns.
RN 52483
State Library, Archives and Museum Facility
Construction Funding
$20,000,000
Ms. Nudelman noted that an additional $30 million was
required to complete the project. The total project was
provided a quote which was guaranteed if funding was
arranged by 2013. The collaborative effort of the
governor's office and the legislature would provide the
final funding required for the project.
9:05:16 AM
Ms. Nudelman introduced the first construction project.
RN 57019
Nightmute School Renovation/Addition
$32,965,301
She highlighted the second construction project, an
additional request for a project originally funded in FY
12. Permafrost conditions were discovered following a
geotechnical report that changed necessary building
elements for the project.
RN 57020
Kuinerramiut Elitnaurviat K-12 Renovation/ Addition,
Quinhagak
$13,207,081
9:06:36 AM
Ms. Nudelman stated that the following projects were ranked
1-12 as major maintenance items for the department with a
total of $22,263,119. The projects were ranked:
RN 57024
Valdez High School Roof Replacement
$916,162
RN 57025
Metlakatla Elementary School Renovation
$14,515,982
RN 57026
Petersburg Elementary School Exterior Wall Renovation
$2,152,775
RN 57027
Nenana K-12 School South ADA Access Improvements
$903,785
RN 57028
Tenakee K-12 School HVAC Controls Renovation
$31,966
RN 57029
Nome-Beltz Building D Fire Sprinkler Replacement and
Fire Alarm Installation
$417,350
RN 57030
Holy Cross K-12 School Roof Replacement
$287,873
RN 57031
Kake High School Boiler Replacement
$45,643
RN 57032
Cantwell K-12 School Sprinkler and Fire Alarm Upgrades
$704,863
RN 57033
Valdez High School Fire Alarm and Sprinkler Upgrades
$682,905
RN 57034
Galena Interior Learning Academy Composite Building
Roof Renovation
$1,019,387
RN 57035
Nome-Beltz Jr/Sr High School HVAC Control Upgrades
$584,428
Ms. Nudelman identified the final deferred maintenance
project, which would address the Mt. Edgecumbe six-year
plan.
RN 51757
Mt. Edgecumbe High School Deferred Maintenance
$1,845,000
9:07:35 AM
Senator Dunleavy asked about RN 52483 listed on page 2. He
queried the estimated cost of the building.
Ms. Nudelman clarified that the question addressed the
State Library, Archives and Museum (SLAM) Facility
Construction Funding.
Senator Dunleavy answered in the affirmative.
9:08:54 AM
LINDA THIBODEAU, DIRECTOR, LIBRARIES, ARCHIVES AND MUSEUMS,
responded that the estimated cost of the SLAM project was
$132 million.
Senator Dunleavy asked for an estimation of the operating
costs.
Ms. Thibodeau responded that the estimated operating costs
were equal or approximately 10 percent less than current
operating cost for the three current locations and two
offsite storage locations.
Senator Dunleavy asked about the operating costs for the
additional locations mentioned.
Ms. Thibodeau offered to provide the information to the
committee.
9:10:27 AM
Co-Chair Meyer asked how much additional funding was
required for the SLAM facility construction.
Ms. Thibodeau replied that the FY 14 governor's request was
$20 million. The total amount required to finish the
project was $50 million.
9:10:58 AM
Senator Dunleavy asked about RN 57019 on page 4. He asked
about the consent, decree and settlement agreement for the
Kasayulie case.
Ms. Nudelman responded that the settlement agreement
required the building of five schools in rural Alaska from
2013 through 2016.
Senator Dunleavy asked about RN 57020 and the estimated
cost determined in FY 12. He wondered why the estimate was
wrong.
Ms. Nudelman stated that the estimated cost was determined
when the district first applied for the school project. The
figure was determined through a cost estimate done in 2008.
A geotechnical study was completed that determined that the
building methods must change to accommodate a permafrost
environment.
9:13:12 AM
Senator Dunleavy asked about RN 45658 on page 6. The
recognized needs for major maintenance totaled $254
million. He asked about the major maintenance plan outlined
by the department.
Ms. Nudelman replied that the district would bring their
needs forward. She discussed evaluating the applications
each September to rank them. She stated that the department
would seek areas for progress on major maintenance.
9:14:07 AM
Senator Dunleavy asked about page 7, RN 57024. He
understood that the request for reimbursement was for a
completed project. He asked if the process was anticipated.
Ms. Nudelman responded that the process was normal and
anticipated. She stated that regulations allowed
reimbursement for grant expenses up to 36 months prior. She
stated that the project applications were for work that was
either partially completed or completed. If the projects
ranked with awards, then they were eligible for funding
reimbursement.
Senator Dunleavy asked about completed projects on the
major maintenance list.
Ms. Nudelman responded that the number of projects ranged
from zero to twelve comparing to the total projects on the
list.
9:15:44 AM
Co-Chair Meyer explained that the legislature addressed
portions of the major maintenance list each year.
Vice-Chair Fairclough highlighted that the guaranteed price
was temporary and the legislature might consider funding
the $35 million. She moved on to page 4, RN 57019, the
Nightmute School Renovation/Addition. She asked if another
school existed in close proximity to Nightmute.
Ms. Nudelman offered to respond later to Vice-Chair
Fairclough with the information.
9:17:21 AM
Vice-Chair Fairclough asked if school gymnasiums were built
to state specification standards.
Ms. Nudelman responded that DEED built gymnasiums to size
standards based on the student count. If a building was
used for reasons beyond education, the department did not
fund it.
Vice-Chair Fairclough asked if Nightmute had another
opportunity to expand their facilities. She commented that
schools were typically the center or the heart of the small
villages. She wondered about construction to increase the
square footage of the existing facility.
9:18:28 AM
Ms. Nudelman responded that the department had a variance
available in regulation that a district could apply for.
The variances were for smaller space additions. Another
solution would be to join community and school funds.
9:19:08 AM
Senator Bishop asked about the geotechnical report for RN
57020. He requested a copy of the report.
Ms. Nudelman offered to provide the information to Senator
Bishop.
Senator Dunleavy asked about RN 57028 and the Tenakee
School student numbers. He wondered about a plan for
schools that appeared to be "on the edge" of viability.
9:20:10 AM
Ms. Nudelman responded that evaluation of new construction
requests was performed by the commissioner when enrollment
was at a low level. She stated that the department would
consider maintenance applications.
Senator Dunleavy believed that St. Mary's was on the
Kasayulie decree. He asked why St. Mary's was removed from
the list.
Ms. Nudelman stated that she did not know, but would
provide the information to the committee related to the
settlement.
9:21:13 AM
^DEPARTMENT OVERVIEW: DEPARTMENT OF NATURAL RESOURCES
9:22:10 AM
JEANMARIE DAVIS, DIRECTOR, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES, presented the capital
budget of $28 million, with $18 million of unrestricted
general funds.
9:23:13 AM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES introduced the first request.
RN 38872
Unified Permit Project and Document Management
$3,300,000
Mr. Fogels informed the committee of the multi-phase
project to automate the Department of Natural Resources
(DNR)'s permitting system. The permitting initiative would
increase efficiency.
9:24:00 AM
JOE BALASH, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES highlighted the next request.
RN 51052
Strategic and Critical Minerals Assessment
$2,745,000
Mr. Balash informed the committee about the second of five
year's request for the assessment. The work was performed
by the Division of Geologic Geophysical Survey assessing
the potential statewide for rare earth elements and other
critical minerals. Field work began in 2012. The intention
was to broadcast findings on the division's website for the
public and for annual summits held in Fairbanks.
9:24:59 AM
Mr. Balash continued with the next project.
RN 31371
Oil and Gas Litigation and Arbitration Support
$500,000
Mr. Balash discussed occurrences regarding reopeners in
settlement agreements with the three primary lease holders
on the North Slope. The reopeners resulted in a mutual
agreement regarding the modification of valuation or
transportation costs. Occasionally, arbitration was
necessary, which the requested capital funds would support.
In prior years, the department requested CIP funds for
potential arbitration proceedings. Additionally, funds were
employed to support litigation brought against the division
in a dispute between any lessees.
9:26:50 AM
Mr. Balash discussed the next item.
RN 53984
Characterization of Conventional and Unconventional
Oil and Gas Resources
$700,000
Mr. Balash noted that the item was combined for the
Division of Oil and Gas and the Division of Geologic
Geophysical Survey. The funding was used to assess new
opportunities in Alaska. He provided an example of the work
generated in a report released by the Division of Geologic
Geophysical Survey.
Mr. Fogels discussed the next request.
RN 51045
Project Management for Forest Access Roads
Construction and Replacement/Repair of Bridges in the
Tanana
$800,000
Mr. Fogels stated that the request was for general funds
from the Division of Forestry to plan, locate, design and
construct roads within forested lands in the interior. The
roads were designed to allow Alaskans access to the forest
for biomass energy and for personal firewood cutting.
9:28:07 AM
Mr. Fogels discussed the next item.
RN 51197
Public Access and User Facilities Improvements at the
Mouth of the Kasilof River Phase One
$1,400,000
Mr. Fogels explained that the funding would be used for
phase one of a project to build facilities at the mouth of
the Kasilof River. Phase one would construct a parking lot
for 120 vehicles, two vaulted toilets, turn around areas,
signs and kiosks.
9:28:44 AM
Mr. Fogels addressed the next request.
RN 49201
Statewide Timber Inventories to Support Annual
Allowable Harvest Determinations and Federal
Coordination on Timber Sales
$300,000
Mr. Fogels stated that the request for the Division of
Forestry for timber inventories in the McGrath, Galena and
Haines areas for timber harvesting and biomass energy.
RN 56462
River Bank Stabilization and Improvements at Bing's
Landing (Kenai River Special Management Area)
$2,000,000
Mr. Fogels explained that the Division of Parks would make
parking and access improvements to a high use area on the
Kenai River. The funding would also help to repair damaged
river banks in the area.
Ms. Davis discussed the next item.
RN 56503
Fairbanks Northern Region Office Building Generator
and Boiler Replacement
$265,000
Ms. Davis explained that $220 thousand of the funding was
to replace the back-up generator, which provided back-up
power source for the facility. The facility was used for
dispatch in wild-land fire emergencies. She added that $40
thousand was requested to replace two boilers in the
facility.
9:30:58 AM
Mr. Fogels discussed the next item.
RN 33955
Wildland Fire Engine Replacement Phase Four of Six
$800,000
Mr. Fogels explained that the fire engines had an average
life span of 8 - 12 years. The division had 47 total fire
engines, with 28 already replaced. The $800 thousand
appropriation allowed for the replacement of 8 more
engines, leaving 11 for future years.
9:32:01 AM
Mr. Fogels referenced the next item.
RN 56459
Water Monitoring and Data Collection to Support
Adjudication of Water Rights Applications
$300,000
Mr. Fogels explained that the appropriation allowed for
installation of ground water monitoring wells. Demands on
ground water increased in densely populated areas. Water
rights impacted other water appropriations and monitoring
the ground water would provide valuable information.
9:32:50 AM
Mr. Fogels discussed the next item.
RN 56460
Knik River Public Use Area Target Shooting Facility
Design and Construction Phase One of Three
$200,000
Mr. Fogels stated that the funding would be used for the
public target shooting facility construction. The area was
highly used for sport fishermen and all-terrain vehicles.
Mr. Fogels discussed the next item.
RN 6865
National Historic Preservation Fund
$150,000 G/F match
$$650,000 Federal Receipts
Mr. Fogels explained the federal and state matching
program. The funding included grants for historic projects
such as the repair of historic buildings.
9:34:11 AM
Mr. Fogels discussed the next item.
RN 49717
Juneau Historic Site House of Wickersham Renovation
and Habitability
$200,000
Mr. Fogels explained the multi-phase project to renovate
and make habitable the historic Wickersham House in Juneau.
He continued with the next item.
RN 33960
Snowmobile Trail Development Program and Grants
$250,000
9:34:41 AM
Mr. Fogels discussed the next item.
RN 37769
Federal and Local Government Funded Forest Resource
and Fire Program Projects
$1,500,000 Federal Receipts
He explained that the funding was a federal authorization,
including pass-through grants for clearing of hazardous
fuel or to provide equipment for volunteer fire
departments.
9:35:44 AM
Mr. Fogels discussed the next item.
RN 6854
National Recreational Trails Grant Federal Program
$2,600,000 Federal Receipts
Mr. Fogels explained that the federal receipts would be
used for recreational trail improvements throughout the
state. He continued with the next item.
RN 37762
Cooperative Water Resource Program Pass-through to
USGS for Stream Gaging Projects
$2,500,000
Mr. Fogels explained the authorization for Statutory
Designated Program Receipts. The program utilized the
private sector and the local governments for water
monitoring. The federal agencies did not have the ability
to receive the money directly. He provided examples of
monitoring water around mining sites.
9:36:51 AM
Mr. Fogels discussed the next item.
RN 6855
Abandoned Mine Lands Reclamation Federal Program
$3,000,000 Federal Receipts
Mr. Fogels explained that the ongoing program funded by
federal receipts allowed for reclamation of abandoned mine
sights in Alaska.
9:37:17 AM
Mr. Fogels discussed the next item.
RN 56920
Trail and Trailhead Access in Alaska State Parks
$750,000
Mr. Fogles explained that the title would be changed in the
amended budget. The request would provide improved
trailhead access to heavily used trails. The governor
amended the request to broaden the scope beyond the state
parks to other types of trailheads.
9:38:18 AM
Ms. Davis discussed the next items.
RN 51035
Deferred Maintenance, Renewal, Repair and Equipment
$3,872,000
RN 6843
Parks and Outdoor Recreation Statewide Emergency
Repairs
$482,000
Ms. Davis explained that the deferred maintenance package
in which eight allocations at $2,772,000 was designated for
the Division of Parks and Outdoor Recreation. A separate
allocation for $1.1 million was designated for the forestry
and fire facilities. She added that the item addressed the
fourth year of the governor's five-year, $100 million
deferred maintenance initiative and effort. Projects ranged
from emergency repairs to a large inventory of projects in
both divisions ranked on an annual basis.
Mr. Balash advocated for another agency's capital budget
request. The Department of Administration's $15 million
request for a geologic materials center upgrade. The
funding would be used to purchase an existing building
along with an upgrade and retrofit of the facility. The
facility's contents were "priceless" with 70 years of
samples that were collected around the state.
Co-Chair Meyer understood the importance of the core
samples. He mentioned that the samples might lead to oil
exploration and lease sales.
9:41:20 AM
Co-Chair Meyer asked about streamlining the permitting
process discussed in RN 38872. He understood that permits
should be expedited and he recommended against the
different phases of the project. He wondered why the entire
project was not accomplished at once.
Mr. Fogels responded that automating the entire system at
once would be impossible. The specific authorization
required analysis prior to automating.
9:42:37 AM
Co-Chair Meyer queried the seven additional positions added
to the operating budget as a result of the request.
Ms. Davis responded that the seven positions were funded
with capital budget funding. She anticipated a FY 15
request to convert the positions to general fund as the
capital project was completed. She explained that a portion
of the project was a document content management system,
which added the electronic file conversion. Another aspect
of the project was the geographic location which required
continual update. She hoped that other opportunities to
expand the project with pipeline coordinators or the
Division of Oil and Gas. The focus of the project was the
Division of Mining Land and Water.
9:44:46 AM
Co-Chair Meyer asked about the seven positions hitting the
operating budget in FY 15.
Ms. Davis planned to request conversion of the positions
from capital to operating funds. She noted that annual
software license fees in the $380 thousand range would
require conversion to an operating expense.
9:45:05 AM
Vice-Chair Fairclough asked about RN 6865, the National
Historic Preservation Fund. She wondered if the $200,000
request was the contribution from the general funds or
federal funds.
Ms. Davis replied $150 thousand of general funds, with the
remainder being federal funds.
9:45:58 AM
Co-Chair Meyer asked about RN 6865, which was a request for
another museum. The Department of Education and Early
Development requested funding for the State Library and
Museum. He wondered if RN 6865 was in the right department.
Mr. Fogels reminded that the State Historic Preservation
Office was located in DNR.
9:46:48 AM
Senator Dunleavy appreciated Deputy Commissioner Fogels. He
mentioned a state forest land sales and the responsiveness
of the department.
Co-Chair Meyer appreciated the work of Deputy Commissioner
Fogels as well.
9:47:40 AM
Senator Bishop recommended that boiler upgrades include
compatibility with natural gas.
Ms. Davis responded that she would communicate the
suggestion to the facilities personnel.
Co-Chair Meyer expressed concern about the projects
requested in phases. He noticed that RN 51197 appeared as a
phase project. He recommended paying for the projects
outright, as opposed to requesting phases.
Senator Dunleavy asked about RN 56920 for trails management
and trailhead access. He asked if the state purchased
property that accessed trails.
Ms. Fogels responded that the department occasionally
encountered situations with recreation access issues.
Commonly easements existed that crossed multiple entities'
land, which were often poorly marked. The item would
identify trails properly and work with DOT to build
adequate parking facilities within the DOT right-of-way.
9:50:11 AM
Vice-Chair Fairclough recalled testimony from two
departments noting a partnership with the federal
government by providing state funds to advance information.
She wondered if other states were funding positions to
implement laws and regulations established by the federal
government.
9:51:04 AM
Mr. Fogels pointed out the 402 Clean Water Act, which was
coordinated by DEC. The program used state money to
administer a federal program. He added that the coal
regulatory program was funded in part by the federal
government. He added that the state received less support
from the federal government, which could be problematic for
Alaska. He explained that the additional agencies would
receive review of their capital budget in the weeks'
meetings.
9:52:58 AM
SB 18 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Final Geotechnical Report.pdf |
SFIN 2/13/2013 9:00:00 AM |
|
| SFIN 2.13.13 Responses.pdf |
SFIN 2/13/2013 9:00:00 AM |