Legislature(1997 - 1998)
07/30/1997 08:00 AM House BUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
Legislative Budget and Audit
July 30, 1997
8:00 a.m.
Legislative Information Office
Anchorage, Alaska
Tapes LBA97#6 Side 1 017-363
CALL TO ORDER
Chairman Phillips convened the meeting of the Legislative Budget
and Audit Committee on July 30, 1997, at approximately 8:06 a.m.
in the Legislative Information Office Conference Room in
Anchorage, Alaska.
PRESENT
Representatives Senators
Rep. Martin Chrm. Phillips
Rep. Croft Sen. Adams
Rep. Hanley Sen. Pearce
Rep. James Sen. Torgerson
Rep. Therriault
Rep. Bunde
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Nico Bus,
Administrative Service Manager, Department of Natural Resources;
Annalee McConnell, Director, OMB; Joan Brown, Budget Analyst,
OMB; Jerry Lee Soltani, Senate Finance Secretary; Jerry Burnett;
Dean Brown, Division of Forestry, Anchorage.
REVISED PROGRAMS
RPL 10-8-4010 Fire Suppression
Joan Brown, Budget Analyst for OMB, proposed RPL 10-8-4010 to
request additional federal receipts for the fire suppression
component in the amount of $7,500,000. The funds are necessary
due to the heavy fire activity Department of Natural Resources
(DNR) has been experiencing on Federal lands. The fire fighting
expenditure has averaged over $270,000 per day.
Nico Bus, Administrative Service Manager, Department of Natural
Resources (DNR) reminded the Committee of DNR's request for
emergency disaster declaration for the General Fund on July 14,
1997. Most of the money requested on July 14th has been
utilized. Since that time, activity on Federal land has
increased from $280,000 to $350,000 per day. As of July 29th,
DNR has exceeded its appropriation of Federal funds by
$5,300,000. Thus, DNR's request for $7.5 million dollars to
continue fighting the fire. The requested funds wil be
reimbursable by the Federal government. In addition, the
unusually dry weather patterns are predicted to continue for
another week. The $7.5 million is necessary to finish fighting
the present fires as well as to send crews to the Lower 48 to
fight fires there.
Dean Brown responded to Chrm. Phillip's question regarding the
fire size, stating the fires have burned 715,410 acres. The
Inouk fire south of McGrath is currently 482,000 acres. The
Inouk fire is a Federal fire and all expenses are totally
reimbursable from the Federal government.
Chrm. Phillips asked for further expansion from Ms. Brown.
Dean Brown introduced herself as Deputy Director, Division of
Forestry in charge of Fire and Aviation Resources. She stated
that as of that day, 58 fires were burning. The largest fire is
the Inouk fire at 482,000 acres. A total of 340 personnel are
currently fighting the Inouk fire. The three villages threatened
by that fire are currently out of danger. In fact, she continued
the active portion of the fire has shifted from the southern
perimeter to the northern perimeter.
Since July 1, Ms. Brown noted that there have been 151 fires to
fight. There have been 503 fires fought within the State of
Alaska out of a total of 634 fires statewide. Currently there
six Type I crews, three of which were brought in from out-of-
state. There are eighteen Type II crews, which are primarily the
village crews. There is a tremendous commitment of eleven
helicopters. In addition, there are six more than normal of
summer contract aircraft beyond the normal fleet, hired for
rental for detection and for flying crews and supplies.
Ms. Brown continued that the fire situation is severe and
compounded by a high pressure weather system extending from north
of Dillingham up through the Inouk fire area. That weather
pattern is anticipated to remain in place and stable for at least
one more week or ten days. Dry lightening is starting new fires.
In addition, we have diverted from the normal fire plan in which
fires allowed to burn at this stage, in the event that fires
start where they will be difficult to contain and threaten life
and property in that area. The situation is taking all the
Forestry commitment with 90% of the in-state Federal commitment
of forces on the fires in Southwest Alaska. In addition, we have
been bringing in overhead, but not crews, from out-of-state to
fight the fires.
Ms. Brown stated that the issue today is that the large
expenditure and majority of the fires are now occurring of
Federal land, meaning the State would be totally reimbursed for
this expenditure. However, the Forestry Division does not have
enough authorization at this point. In the meantime, it appears
that the fire situation will continue for at least another
weekend.
Chrm. Phillips asked for questions from the Committee.
Sen. Pearce requested clarification regarding the $7.5 million in
additional authorization that was followed by a later mention of
$5 million. She asked if that means that the DNR is already $5
million into the $7.5 million.
Nico Bus stated that the $5 million was the regular appropriation
for Federal funds for Fiscal Year 1998. That appropriation has
been completely exhausted. The $7 million dollars would be
starting from yesterday and put toward the activities of the
projected balance of FY 1998.
Rep. Bunde asked Ms. Brown whether the policy had changed from
the normal fire suppression program due to extenuating
circumstances. Did that mean that remote fires are not being
allowed to burn?
Ms. Brown, Division of Forestry, stated that at this time of
year, all remote fires would normally be allowed to burn. Due to
the dry fire conditions and extreme fire behavior, some fires
have been attacked that are close to villages or that would have
threatened something. However, fires are still allowed to burn
where they will not have any deleterious effect.
Chrm. Phillips asked Mr. Greany for recommendations.
Mr. Greany, Legislative Fiscal Analyst, stated it was a straight-
forward request for which he recommended approval.
Chrm. Phillips asked for further questions.
No further questions being asked, Rep. Martin MOVED for approval
of RPL 10-8-4010 for a total of $7.5 million dollars to the
Department of Natural Resources for Fire Suppression.
Chrm. Phillips noted the MOTION and asked for an oral vote.
Rep. Bunde stated that it appeared that with $250,000 per day
being spent over the next 10 days, against $7.5 million, that the
DNR should anticipate spending only $1.25 million dollars.
Dean Brown projected that in the next 10 days to a month the DNR
would be responding to fires in the Lower 48 with crews from
Alaska. Rural fire crews are reimbursed for marketing themselves
out-of-state. In addition, many fires occur in the spring with a
majority of those fires on Federal land.
Chrm. Phillips asked Ms. Brown to confirm that there were
currently eleven helicopters and six small planes being used on
the Inouk fire.
Dean Brown stated that these aircraft were in addition to the
usual contract planes for the State and for the Alaska Fire
Service.
Chrm. Phillips asked if there were any further questions. The
MOTION passed unanimously, APPROVING RPL 10-8-4010.
Sen. Torgerson asked Chrm. Phillips to clarify his decision on
the request regarding the Department of Transportation (DOT).
Nancy Slagle had called him to ask for approval of an RPL that
came out several days ago. This RPL authorized the bond proceeds
from the sale for moving the Soldotna maintenance facility for
DOT. The information was not disseminated to the committee
members and public notice was not given, so the RPL will be held
until the 21st so the proper public notice can be given.
Sen. Pearce asked how long the LBA meeting on the 21st would
last.
Chrm. Phillips responded that the LBA meeting is anticipated to
last about 2 hours with a start at 1:30 p.m. on the 21st.
Rep. Therriault stated Nancy Slagle had just arrived in
Fairbanks.
Sen. Torgerson reiterated that he did try to get the DOT RPL on
the agenda. However, it was necessary to give public notice and
provide the Committee members with copies.
Nancy Slagle asked if it was likely that the RPL would be taken
up before the meeting on the 21st.
Chrm. Phillips stated that it was unlikely that the Committee
would meet before the 21st.
Nancy Slagle noted that in a week to ten days, the DOT would have
been able to award a contract. If the RPL was not approved today
that this would create a timing problem, resulting in the loss of
the current bid. This would mean that the contract would have to
be re-bid, increasing the cost of the process as well as delaying
the project.
Sen. Torgerson asked why the Committee was not made aware of the
RPL until yesterday, when the Bill was signed two and a half
months ago.
Nancy Slagle acknowledged that that was true. In working with
Legislative Finance and Legislative Audit, it was felt that the
August 7th date would be adequate for DOT's needs. When DOT
realized that the August 7th meeting was not going to happen,
they realized the timing would be difficult.
Sen. Torgerson asked if the bid was not good through the 21st and
would have to re-bid.
Ms. Slagle stated that if the DOT did not have the authority to
approve that expense, the bids would be lost. Then the contract
would have to be re-bid.
Mr. Greany added he and Randy Welker had been looking for a
solution to this problem. The last Legislature passed a bill
authorizing the Soldotna maintenance facility be authorized using
the Certificate of Participation financing mechanism. However,
an attendant appropriation mechanism was not put into place to
authorize either the department to spend the money for that
purpose nor to provide the debt service on those COP's once
issued. Randy Welker and Mr. Greany have been looking to see
what other mechanisms would be available to deal with the issue
in the interim by the Budget and Audit Committee. At this point,
Mr. Greany asked the Committee to approve the COP proceeds as a
new statutory designated program receipt. One technical problem
exists in that the actual COP's will not be issued until late
September or early October. Therefore, the COP's will not be
available to the project until then. In the interim,
unappropriated general funds would have to front this project.
Mr. Greany recommends approval of this process with the
understanding that there is some risk, but that there is clear
Legislative intent for this project. The State Bond Committee
has passed a resolution stating their intention to issue the
bonds. The point is that there would not be a completed contract
until after the COP's are actually issued. The delay until now
revolved around the bid opening relative to being able to start
the project this construction season.
Sen. Torgerson stated that Legislative approval exists for this
action. He would not like the project to be held up or have to
be re-bid.
Chrm. Phillips asked Sen. Torgerson to research this question and
report back after 5 p.m. today. He stated that another emergency
meeting would be attempted to respond to this RPL after the
details have been compiled.
Sen. Pearce asked that Mr. Greany and Nancy Slagle discover why
this situation arose and find solutions to keep it from happening
again.
Chrm. Phillips concurred asking Mr. Greany and Ms. Slagle to
respond to this request with a one page letter that would be sent
to all members of the Committee.
Mr. Greany agreed and added that all the information on the RPL
request would also be compiled and sent to each member.
ADJOURNMENT
Chrm. Phillips adjourned the meeting at approximately 8:36 a.m.
LBA 7/30/97 Page 6
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