Legislature(1995 - 1996)
03/22/1995 09:04 AM Senate HES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SHES - 3/22/95
SB 121 APPROP: U OF A DEFERRED MAINTENANCE
Number 002
CHAIRMAN GREEN called the Senate Health, Education and Social
Services (HESS) Committee to order at 9:04 a.m. and noted that in
the interest of time the meeting would begin as a work session
until a quorum arrived. She introduced SB 121 as the first order
of business before the committee.
WENDY REDMAN, Vice President for University Relations for the
Statewide University of Alaska System, handed out information to
the committee members regarding deferred maintenance. The deferred
maintenance booklet is not specifically geared towards SB 121. She
stated that the deferred maintenance problem currently totals $157
million.
Number 045
CHAIRMAN GREEN noted that a quorum was present and the meeting was
officially called to order.
WENDY REDMAN felt that most would recognize the great need for
repair and maintenance of all the state facilities. The University
of Alaska (U of A) makes up approximately 50 percent of the state's
facilities. She noted that 85 percent of the state facilities that
are over 30 years old belong to U of A. She spoke to the following
problems that have come up in dealing with this deferred
maintenance problem. First, many people believe this is a
Fairbanks problem which has created a problem in receiving funding
in the past. The Fairbanks campus is the oldest campus in the
system; Fairbanks contains 65 percent of all the facilities in the
system although those facilities are spread throughout Alaska. She
also pointed out that the Fairbanks campus has 92 percent of the
facilities in the system that are over 20 years old.
Ms. Redman stated that the second issue relates to the myth that
this problem has been created due to the systematic mismanagement
or a misappropriation of maintenance funds over time. That issue
has been audited. She explained that in 1986, the university took
a 20 percent budget cut. At that time, $1 million was taken from
the operating maintenance budget at the Fairbanks campus in order
to allow for the continuation of programs that had already begun.
That $1 million was replaced the next year. She emphasized that
there had been no movement of money from the operating maintenance
accounts since that time.
Ms. Redman explained that the operating maintenance budget was
below the level of funding needed to stay ahead of this problem.
She acknowledged that buying paint is unattractive for legislatures
to fund. The Board of Regents passed a policy last year that
requires each campus to reallocate existing funds in order to raise
maintenance budgets up to the formula within a three year period.
The Fairbanks campus did a reallocation of $2 1/2 million of
existing funds to the maintenance funds this year. She pointed out
that this reallocation takes money from other programs. She
informed the committee that the Anchorage campus has approximately
$40 million in deferred maintenance.
Number 120
SENATOR LEMAN inquired as to her reference to the Anchorage campus;
does that mean the campus itself or the entire Anchorage system?
WENDY REDMAN explained that she was referring to the Anchorage
system. Of the $40 million needed, $30 million would be needed for
the Anchorage campus. She offered to provide a list of the exact
projects that are necessary.
SENATOR LEMAN asked if these maintenance projects would be
contracted or would they be done by existing maintenance staff.
WENDY REDMAN noted that would be a mix, but the majority of the
maintenance would be contracted. Ms. Redman pointed out that
almost all of the bidding would be local hire, within Alaska.
SENATOR SALO asked if the student's of these campuses had the same
priority list as the university. WENDY REDMAN recognized that the
two would not perfectly match. Last year the package had $45
million in classroom facilities and $35 million in dormitory
projects. Ms. Redman noted that system wide there is $35 million
of housing maintenance needed. Student housing should be one of
the university's highest priorities. Ms. Redman pointed out that
some research facilities, which also generate income, are
unavailable for use due to maintenance problems.
SENATOR MILLER inquired as to how much of the requested $35 million
would be used this summer. WENDY REDMAN specified that the bid
ready projects for this summer would be approximately $7 million.
Time for planning would be necessary. For example, many of the
dorms have already been programmed for the summer with elder
hostels and such.
Number 195
SENATOR MILLER assumed that if the funding was approved before the
end of the fiscal year, some maintenance projects could be done
during the school year. Then by the next summer, the remainder of
the $35 million would be planned for use. WENDY REDMAN said yes,
the university hopes to be able to set up a planning fund with a
portion of that $35 million in order to get projects bid ready.
CHAIRMAN GREEN asked if there was a mix on locations. WENDY REDMAN
directed the committee to page 9 of the deferred maintenance
booklet which contained lists for residential and non-residential
for a $75 million package. The $45 million non-residential is the
highest priority of the non-residential project listed by site.
CHAIRMAN GREEN asked if this amount of money would give the
university a good chance at achieving the projects listed on page
9. WENDY REDMAN clarified that page 9 referred to a $75 million
fund, therefore the $35 million fund of SB 121 would allow the
achievement of at least half of the projects. Currently, there is
not a detailed list of how the $35 million would be spent.
SENATOR MILLER moved that SB 121 be moved out of committee with
individual recommendations. Hearing no objections, it was so
ordered.
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