Legislature(1997 - 1998)

02/18/1998 01:45 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           HOUSE FINANCE COMMITTEE                                             
              February 18, 1998                                                
                 1:45 P.M.                                                     
                                                                               
TAPE HFC 98 - 33, Side 1                                                       
TAPE HFC 98 - 33, Side 2                                                       
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Gene Therriault called the House Finance Committee                    
meeting to order at 1:45 p.m.                                                  
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Hanley    Representative Kelly                                        
Co-Chair Therriault   Representative Kohring                                   
Representative Davies  Representative Martin                                   
Representative Davis   Representative Moses                                    
Representative Foster  Representative Mulder                                   
Representative Grussendorf                                                     
                                                                               
ALSO PRESENT                                                                   
                                                                               
Senator Gary Wilken; Michael Morgan, Department of                             
Education; Doug Green, Architect; Alaska Professional Design                   
Council; Marc Wheeler, Southeast Alaska Conservation                           
Council; Juanita Hensley, Legislative Liaison, Division of                     
Motor Vehicles, Department of Public Safety; Anne Carpeneti,                   
Assistant Attorney General, Legal Services Section, Criminal                   
Division, Department of Law.                                                   
                                                                               
SUMMARY                                                                        
                                                                               
HCR 24 Relating to the use of prototype designs in public                      
school construction projects.                                                  
                                                                               
 CSHCR 24 (FIN) was REPORTED out of Committee with                             
a "do pass" recommendation and with a fiscal                                   
impact note by the Department of Education.                                    
                                                                               
HJR 53 Relating to support for federal legislation                             
providing for the continuation of the University                               
of Alaska by the conveyance of federal land to the                             
university.                                                                    
                                                                               
 HJR 53 was out of Committee with a "do pass"                                  
recommendation and with a zero fiscal note for the                             
University of Alaska.                                                          
HOUSE CONCURRENT RESOLUTION NO. 24                                             
                                                                               
Relating to the use of prototype designs in public                             
school construction projects.                                                  
                                                                               
SENATOR GARY WILKEN testified in support of HCR 24.  He                        
noted that several schools were built in the Fairbanks                         
School District using a prototypical design.  The use of                       
prototypical designs for elementary schools in the Fairbanks                   
School District was successful.  The Deferred Maintenance                      
Task Force helped to investigate the use of prototypical                       
schools.                                                                       
                                                                               
Senator Wilken explained that, under the legislation, three                    
prototypical designs would be created for kindergarten to                      
6th or 8th grade schools.  He questioned why the state of                      
Alaska should build a school that houses 260 students for                      
$28 million dollars in Kashunamiut when a school that houses                   
600 students can be built in Fairbanks for $9.9 million                        
dollars.  He suggested that the use of prototypical schools                    
would allow more schools to be built.  He pointed out that                     
the use of prototypical schools would reduce maintenance                       
costs.  He stressed that prototypical components could be                      
used in areas where a prototypical school is not feasible.                     
                                                                               
Senator Wilker referred to remarks by Len Mackler, Director,                   
Physical Plant Department, Fairbanks North Star Borough                        
(FNSB) School District.  He noted that Mr. Mackler indicated                   
that some individuals do not support the legislation because                   
it is a perceived threat to their industry.  Mr. Macklin                       
stated that prototypical schools take one year less to                         
build, which saves one year of inflation costs.                                
Architectural and engineering designs that used to cost 10                     
to 12 percent cost 5 percent for prototypical schools.                         
Competitive bids are better for each new school.  There are                    
few change orders for prototypical schools.  Each school is                    
improved.  Full advantage is taken of technical upgrades.                      
Start up problems are minimal.  Standardization of machine                     
components has lowered the maintenance in the Fairbanks                        
School District from approximately 18 to 10 percent.  He                       
stressed that the challenge is to produce a prototypical                       
school that works so well that school districts will want to                   
use the Alaska standard school.                                                
                                                                               
In response to a question by Co-Chair Therriault, Senator                      
Wilken observed that all of the prototypical schools in the                    
Fairbanks School District serve 600 students.  The last                        
school was built in 1997.                                                      
                                                                               
Co-Chair Therriault noted that most Fairbanks schools could                    
be built on flat land.  He questioned if a standard school                     
could be built in rural areas with geographical limitations.                   
Senator Wilken thought that there would not be a problem.                      
He observed that one prototypical school in Fairbanks was                      
built on pilings.  He noted that three designs would be                        
developed to accommodate other areas of the State.  He                         
suggested that different roof designs may be present.  He                      
observed that rural schools, such as Buckland, would be                        
smaller and easier to construct.  He pointed out that                          
components would be shipped to rural areas.                                    
                                                                               
In response to a question by Representative Martin, Senator                    
Wilken did not think there was a downside to the proposal.                     
He acknowledged that architects may see it as a threat to                      
their livelihood.  He emphasized that 11 schools could be                      
built were 10 would have been previously.  He acknowledged                     
concerns regarding local involvement.  He questioned if it                     
is incumbent on the State to produce a monument to a                           
particular town, city or village through its education                         
system.  He stated that he supports the one-percent for arts                   
program and emphasized that art can reflect local                              
involvement.                                                                   
                                                                               
In response to a question by Representative Davies, Senator                    
Wilken stated that he did not object to the deletion of                        
"elementary".  He observed that some rural schools are K -                     
12th grades.                                                                   
                                                                               
Representative Davies noted that there is a proposed                           
technical change to include a statutory citation for the                       
Bond Reimbursement and Grant Review Committee.                                 
                                                                               
Senator Wilken spoke in favor of the proposed change.  Co-                     
Chair Therriault clarified that the Committee has prepared a                   
proposed committee substitute that would incorporate both of                   
the proposed changes discussed by Representative Davies.                       
                                                                               
MIKE MORGAN, Facilities Manager, Department of Education                       
acknowledged that prototypical schools result in design                        
savings.  He noted that when there is a limited contractor                     
pool there are savings on construction and design costs. He                    
acknowledged that adapting to varying climates and sites                       
would be challenging.  There are problems involving roofs                      
and varying size requirements.  Another challenge is the                       
issue of varying educational programs.  He observed that                       
there are limitations in prototypical components.  He                          
emphasized that many of the proposed school capital projects                   
are additions to existing schools.  The Department of                          
Education supports the legislation as a cost containment                       
measure.  He pointed out that there are other cost saving                      
measures, which might be of benefit to explore.                                
                                                                               
Representative Davies clarified that a set of prototypical                     
designs would be developed to meet varying climatic                            
conditions.  Mr. Morgan noted that designs would be                            
developed for regional differences and sizes.  Different                       
size gymnasiums and room configurations could be designed                      
separately and attached to schools.                                            
                                                                               
Representative Davies expressed concern that there may be an                   
effort to create a design that incorporates all                                
possibilities.  He noted that Fairbanks focused on building                    
one school and augmented that design to create a                               
prototypical design.  He asked if the Department of                            
Education could use the money that would be needed to build                    
a particular school and augment it to create a prototypical                    
design.                                                                        
                                                                               
Mr. Morgan observed that there is no reason a prototypical                     
design could not be developed in conjunction with the                          
construction of a particular school.                                           
                                                                               
Representative Mulder observed that several schools in the                     
Northwest Arctic Borough School District have expressed a                      
willingness to be the first test case.  He emphasized that                     
school districts will be expected to have a maintenance                        
program in place.  He asked if the March 15, 1998 report                       
would include cost containment suggestions.                                    
                                                                               
Mr. Morgan stated that a number of cost containment ideas                      
would be included in the report.  The Legislature will be                      
able to choose from a variety of options.  He observed that                    
British Columbia is containing costs by specifying allowable                   
costs per square foot and requiring value analysis.                            
                                                                               
DOUG GREEN, ARCHITECT, AMERICAN INSTITUTE OF ARCHITECTS AND                    
THE ALASKA PROFESSIONAL DESIGN COUNCIL testified from                          
Anchorage on HCR 24.  He stated that most states that have                     
attempted a prototypical design program for their school                       
programs have not been successful.  He spoke in support of                     
standardized design components and emphasized their                            
flexibility.  He observed that classrooms, gymnasiums,                         
locker configuration and mechanical systems could be                           
designed as prototypical components.  He expressed concern                     
that it would be difficult to create a design that would                       
meet a variety of conditions                                                   
                                                                               
Mr. Green discussed liability.  He observed concerns by                        
major insurance companies.  He observed that liability would                   
be clouded if designs were modified by other architects or                     
engineers that did not create the original design.  An                         
architect is liable for designs that he stamps.                                
                                                                               
He encouraged the Committee to replace "prototypical" with                     
"standardized design component".                                               
                                                                               
Co-Chair Therriault provided members with a proposed                           
committee substitute (copy on file).  He noted that the                        
proposed committee substitute speaks to the identifying                        
components within a prototypical design that can be                            
standardized and incorporated into school designs when a                       
prototypical design may not be appropriate.  Multi-purpose                     
rooms that would serve 50 - 100 students, such as gymnasiums                   
and cafeterias, could be designed separately.  Additional                      
classrooms could be added later.                                               
                                                                               
Mr. Green emphasized that the use of "standardized design                      
components" would not prevent the creation of a prototypical                   
design composed of design components.                                          
                                                                               
In response to a question by Representative Davies, Mr.                        
Green stated that he has attempted to secure the 1991, state                   
of Georgia, Department of Education survey relating to use                     
of prototypical designs in 49 states.  He observed that the                    
state of California had a law in the 1950's that required                      
that all state owned buildings be conformed by their Office                    
of Architec and Construction.  Indiana mandated that                           
elementary schools be built on a stock plan.  He emphasized                    
that many of the laws were implemented in the 1950's and                       
1960's and repealed in the 1970's.                                             
                                                                               
Representative Davies noted that the resolution is not a                       
mandate to school districts.                                                   
                                                                               
In response to a question by Representative Davies, Mr.                        
Green stated that he was not aware of any insurance problems                   
resulting from the use of prototypical designs in Fairbanks                    
or Anchorage.  He noted that the same firm that created the                    
prototypical design replicated the design on different sites                   
for the school district.                                                       
                                                                               
Representative Davies observed that a primary architect                        
reviews the design package and takes responsibility for                        
implementation of the design at a particular site.  Mr.                        
Green noted that architects do not usually stamp a room                        
design if it is not connected with a building project.                         
Multiple room designs that can be utilized by another                          
designer would not have to be stamped by the original                          
designer.                                                                      
                                                                               
Representative Martin stressed that local school districts                     
must be responsible for paying expenses above what the State                   
feels is reasonable.  Co-Chair Therriault pointed out that                     
the resolution requests information from the Department of                     
Education regarding incentives to lead school districts                        
toward the use of prototypical designs.  He stressed that                      
the intent is to lead people to the concept and not punish                     
them for doing something else.                                                 
                                                                               
Co-Chair Therriault MOVED to ADOPT the proposed committee                      
substitute. There being NO OBJECTION, it was so ordered.                       
                                                                               
Co-Chair Therriault reviewed changes incorporated in the                       
committee substitute.  "State and" was added on page 1, line                   
12 of CSHCR 24 (STA) to reflect the fact that most schools                     
are constructed with a combination of state and local funds.                   
The resolves on page 2 were reordered. Language regarding                      
prototypical schools was placed before language relating to                    
components by moving lines 24 - 27 to line 19.   The report                    
date was moved from March 1, 1998 to March 15, 1998.                           
Language referred to by Representative Davies was                              
incorporated.  Other changes reflect sentence structure.                       
                                                                               
Representative Mulder MOVED to report CSHCR 24 (FIN) out of                    
Committee with the accompanying fiscal note.                                   
                                                                               
CSHCR 24 (FIN) was REPORTED out of Committee with a "do                        
pass" recommendation and with a fiscal impact note by the                      
Department of Education.                                                       
HOUSE JOINT RESOLUTION NO. 53                                                  
                                                                               
Relating to support for federal legislation providing                          
for the continuation of the University of Alaska by the                        
conveyance of federal land to the university.                                  
                                                                               
Representative Kelly, Sponsor, noted that HJR 53 supports                      
federal Senate Bill 660, by Senator Murkowski, which would                     
convey 250,000 acres of federal land to the University of                      
Alaska.                                                                        
                                                                               
(Tape Change, HFC 98 - 33, Side 2)                                             
                                                                               
Representative Kelly maintained that the state of Alaska                       
received a smaller proportion of federal land for education                    
than any other state.  In 1913, the state of Alaska was                        
granted 330,000 acres.  Only approximately 110,000 acres                       
were conveyed.  He maintained that it is time to give the                      
University of Alaska more money through land management.  He                   
asserted that the University has done a good job of managing                   
their lands.                                                                   
                                                                               
Co-Chair Therriault pointed out that the state of Alaska                       
would match the federal land grant, acre by acre.  He                          
observed that there is a possibility that another 250,000                      
acres could be traded for university land held in national                     
parks.                                                                         
                                                                               
MARC WHEELER, SOUTHEAST ALASKA CONSERVATION COUNCIL (SEACC)                    
testified in opposition to HJR 53.  He provided members with                   
a copy of his written testimony and a copy of SEACC's                          
statement before the U.S. Senate Energy and Natural                            
Resources Committee on September 11, 1997.                                     
                                                                               
He observed that SEACC is a coalition of fifteen local                         
communities, volunteer conservation groups in twelve                           
Southeast Alaska communities, from Ketchikan to Yakutat.                       
Members include commercial fishermen, Native Alaskans,                         
hunters and guides, tourism and recreation business owners,                    
value-added wood product manufacturers, and Alaskans from                      
all walks of life.  He maintained that SEACC is dedicated to                   
safeguarding the integrity of Southeast Alaska's unsurpassed                   
natural environment while providing for balanced,                              
sustainable use of our region's resources.                                     
                                                                               
He noted while SEACC supports adequate funding of the                          
University of Alaska by the Alaska State Legislature that                      
SEACC strongly opposes S.660.  He stated that as amended by                    
the Senate Energy Committee on September, 1997, S.660 would                    
allow the University of Alaska to select at least 250,000                      
acres of National Forests and other federal land within                        
Alaska that are not "conservation system units" (as defined                    
in ANILCA (Public Law 96-487).  These include National                         
Parks, National Wildlife Refuges, National Monuments, and                      
Wilderness Areas or Legislated LUD II areas protected by the                   
Tongass Timber Reform Act of 1990 (TTRA).  Up to 250,000                       
additional acres of National Forest and other federal land                     
could be selected if matched by an equal acreage from State                    
lands.  Under this bill, half a million acres of public                        
lands, including lands within the Tongass and Chugach                          
National Forests, could be selected for clearcutting and                       
other damaging uses.                                                           
                                                                               
Mr. Wheeler asserted that the University has never acted as                    
careful stewards because it has been forced to squeeze as                      
much revenue from their lands as possible.  He maintained                      
that the University would select lands, which they can turn                    
into fast cash.  He alleged that the University would                          
"target Tongass old-growth timberlands and level them as                       
quickly as possible".  He asserted that the University does                    
not manage for multiple use, but instead manages "their                        
lands much like private lands -- laying down massive                           
clearcuts and exporting round logs, while placing the                          
absolute minimum protections on fish and wildlife habitat."                    
He noted that the University hired Wasser and Winters, an                      
out-of-state firm, to log its timber holdings near Cape                        
Yakataga.  According to the Alaska Department of Labor, over                   
70 percent of Wasser and Winters' employees in 1995 were                       
non-residents.                                                                 
                                                                               
Mr. Wheeler concluded that the legislation threatens all                       
parts of the Tongass not permanently protected by Congress.                    
He observed that 10 Southeast Alaskan communities and 2                        
tribal governments have gone on record opposing this                           
legislation.                                                                   
                                                                               
Mr. Wheeler observed that the Morrill Act of 1862 created                      
the land grant system of colleges and universities.  This                      
Act granted lands based on states' population, not size.                       
Alaska ranks 48th in the size of federal land grants given                     
for education.  Alaska also ranks 49th in terms of                             
population.  The University currently holds roughly 140,000                    
acres of fee simple land and 173,326 acres of investment                       
property in all.  He maintained that "with this ample land                     
grant and adequate funding from the State of Alaska, our                       
University system should be able to provide quality                            
education for all Alaskans".                                                   
                                                                               
Co-Chair Therriault noted that the University's management                     
has been in accordance with the state's Forest Practices                       
Act.  He maintained that the Forest Practices Act is                           
considered to be the "Cadillac" of forest practices                            
legislation.  Mr. Wheeler replied that there are minimal                       
buffers on fish streams and protections for wildlife                           
habitat.  He referred to helicopter logging operations in                      
Ketchikan.                                                                     
                                                                               
In response to a question by Representative Davies, Mr.                        
Wheeler acknowledged that the University of Alaska is not                      
required to clear-cut lands.  He asserted that "the                            
University's land trust is required to manage for the                          
benefit of that trust, which requires it to make the most                      
money possible...their interpretation to that has been to                      
clear cut and export to round logs to make the most                            
money..."                                                                      
                                                                               
Representative Davies asked if Mr. Wheeler was maintaining                     
that the University has never acted as a careful steward of                    
their lands.  Mr. Wheeler stated that he could only judge by                   
the examples in Southeast Alaska.  Representative Davies                       
pointed out that in the University has entered into                            
negotiated stakeholder processes with SEACC and other                          
environmental communities on some Southeast operations.  All                   
parties agreed to the process that resulted.  Mr. Wheeler                      
maintained that the agreements were driven by the political                    
realities of the time.  He stressed that the legislation                       
does not require the University to manage their lands in                       
anyway that is more protective than the national forest.  He                   
stressed that the Tongass Plan has considerable improvements                   
over fish and wildlife habitat protections.  He maintained                     
that these would be.                                                           
                                                                               
Representative Davies ascertained that Mr. Wheeler had not                     
read the Board of Regents policy with respect to public                        
comment on land management that was adopted in 1997.  He                       
disagreed with Mr. Wheeler's assertion that the University                     
is not a careful steward.  He maintained that the University                   
does not adopt clear cutting in a way that is inconsistent                     
with the Forest Practices Act and careful stewardship.                         
                                                                               
Representative Grussendorf expressed concern with logging                      
operations by the University in Southeast Alaska.                              
                                                                               
Representative Martin MOVED to report HJR 53 out of                            
Committee with the accompanying fiscal note. Co-Chair                          
Therriault noted that the House Finance Committee has                          
submitted a zero fiscal note for the University of Alaska.                     
He observed that the University supports a zero fiscal note.                   
There being NO OBJECTION, it was so ordered.                                   
                                                                               
HJR 53 was out of Committee with a "do pass" recommendation                    
and with a zero fiscal note for the University of Alaska.                      
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 2:45 p.m.                                             
House Finance Committee 1 2/18/98                                              

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