Legislature(2003 - 2004)

02/11/2003 01:39 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
           JOINT HOUSE & SENATE FINANCE COMMITTEE                                                                               
                     February 11, 2003                                                                                          
                         1:39 P.M.                                                                                              
                                                                                                                                
TAPE HFC 03 - 16, Side A                                                                                                        
TAPE HFC 03 - 16, Side B                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Harris  called the Joint  House &  Senate Finance                                                                      
Committee meeting to order at 1:39 P.M.                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-Chair                                                                                          
Representative Eric Croft                                                                                                       
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Carl Moses                                                                                                       
Representative Gary Stevens                                                                                                     
Representative Bill Stoltze                                                                                                     
Representative Jim Whitaker                                                                                                     
                                                                                                                                
Senator Con Bunde                                                                                                               
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Ben Stevens                                                                                                             
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
                                                                                                                                
Senator Alan Austerman                                                                                                          
Senator Lyda Green                                                                                                              
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative David Guttenberg; Representative Carl Morgan;                                                                    
Representative Ralph Samuels; Jeff Staser, Federal Co-Chair,                                                                    
Denali Commission; Yuri Morgan, Legislative Representative                                                                      
Denali  Commission; Rachel Petro,  State Co-Chair,  Denali                                                                      
Commission, Office of the Lieutenant Governor; Tessa Delong,                                                                    
Graduate Intern for the Denali Commission; Joe Cladouhous,                                                                      
Norton  Sound Health  Corporation; Steve Agloinga,  Norton                                                                      
Sound Health Corporation; Emily Hughes, Norton Sound Health                                                                     
Corporation;  Helen  Pootoogooluk,  Norton   Sound  Health                                                                      
Corporation.                                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
 There were no teleconference participants.                                                                                     
                                                                                                                                
 GENERAL SUBJECT(S):                                                                                                          
                                                                                                                                
                         OVERVIEW:                                                                                            
                     DENALI COMMISSION                                                                                        
                                                                                                                                
The following overview was taken in log note format.  Tapes                                                                     
and handouts will be on file with the House Finance                                                                             
Committee through the 23rd Legislative Session, contact 465-                                                                    
2156. After the 23rd Legislative Session they will be                                                                           
available through the Legislative Library at 465-3808.                                                                          
                                                                                                                              
                                                                                                                                
 LOG SPEAKER               DISCUSSION                                                                                       
                                                                                                                                
                           TAPE HFC 03 - 16, SIDE A                                                                        
 000 Co-Chair Harris       Convened the Joint House and Senate                                                                  
                           Finance Committee meeting at 1:40 P.M.                                                               
                           He noted the handout provided by the                                                                 
                           Denali Commission.  (Copy on File).                                                                
                                                                                                                              
                                                                                                                                
                           DENALI COMMISSION                                                                                
 006 JEFF STASER, FEDERAL Introduced Yuri Morgan, Legislative                                                                   
      CO-CHAIR, DENALI     Representative for the Denali Commission.                                                          
      COMMISSION                                                                                                                
 032 YURI MORGAN,          Stated that he had been assigned to the                                                              
      LEGISLATIVE          Denali Commission in order to represent                                                              
    REPRESENTATIVE       the Legislature's interests in the                                                                     
      DENALI COMMISSION    business and programs of the Commission.                                                             
                           He added that it was the intent of the                                                               
                           meeting to outline what the Denali                                                                   
                           commission does.  He added that he and                                                               
                           Mr. Staser would leave a large block of                                                              
                           time for questions and answers.                                                                    
 153 Mr. Staser            Described how the Denali Commission was                                                              
                           achieving accountability.                                                                          
 227 Mr. Staser            Introduced key staff person, Rachel                                                                  
                           Petro.                                                                                             
 307 RACHEL PETRO, STATE Explained that her job was to act as a                                                                 
      CO-CHAIR, DENALI     resource for the State within the                                                                    
      COMMISSION, OFFICE   Administration and that she would be                                                                 
      OF THE LT. GOVERNOR working to make the Commission more of a                                                              
                           State program.                                                                                     
 354 Mr. Staser            Reiterated the role that Rachel plays for                                                            
                           the State of Alaska.  He introduced Tessa                                                            
                           DeLong, Ketchikan.                                                                                 
 414 TESSA DELONG,         Explained her role with the Commission                                                               
      GRADUATE INTERN FOR working in problematic areas and most                                                                 
      THE DENALI           specifically with the health care and                                                                
      COMMISSION           economic development.                                                                              
 445 Mr. Staser            Provided information on the Commission,                                                              
                           which is a federal/state partnership.                                                              
                           The Commission was created in 1999 as a                                                              
                           result of legislation drafted by Senator                                                             
                           Stevens in 1998.  The law provided for                                                               
                           five statewide organizations to                                                                      
                           participate as voting members along with                                                             
                           the two co-chairs, one State and one                                                                 
                           federal.  He referenced the slide shown.                                                             
                           The Commission has been pursuing the                                                                 
                           principle themes of energy and health.                                                             
536 Mr. Staser             The Commission has completed or under                                                                
                           construction 50 health clinics.  He noted                                                            
                           that there are principles which the                                                                  
                           Commission will be accountable for:                                                                  
                             · Effective and efficient                                                                          
                             · Implement policy                                                                               
607 Mr. Staser             Referenced the Denali Commission's                                                                   
                           website.  (Presentation & slides provided                                                            
                           to Committee only).  He noted that any                                                               
                           person in the State could access the web                                                             
                           site.  He walked members through on how                                                              
                           to use the site.  Logging on to the site                                                             
                           and entering the 'public reports'.                                                                 
652 Mr. Staser             From the database, every project that the                                                            
                           Commission is involved with is indicated.                                                            
                           He suggested 'clicking' on the project                                                               
                           map referencing the project charts.  Mr.                                                             
                           Staser explained how to zoom into map                                                                
                           areas.                                                                                             
805 Mr. Staser             Data is populated by the State database.                                                             
                           Each project is presented with the status                                                            
                           of the project is represented in the                                                                 
                           database.                                                                                          
1006 Mr. Staser            Denali Commission has helped train many                                                              
                           people for jobs.  He referenced the                                                                  
                           "report by the Committee" icon indicated                                                             
                         on each site.                                                                                        
1109 Mr. Staser            Referenced the 'Performance Indicators'.                                                             
                           The same thing indicated to the federal                                                              
                           government is reported and available to                                                              
                           each and every citizen.  He emphasized                                                               
                           that all this information is available to                                                            
                           everyone who can use a computer.  He                                                                 
                           stressed that this is what                                                                           
                           'accountability' looks like.                                                                       
1201 Mr. Staser            Pointed out that partner agencies are                                                                
                           checking on the plans, which is the                                                                  
                           future of the program.                                                                             
1229 Mr. Staser            Referenced the "project reports" icon.                                                             
1254 Mr. Staser            Explained how to print the reports.                                                                
1347 Mr. Staser            Mentioned that using the site makes                                                                  
                           accessing any report easy.                                                                         
 1405 Representative       Noted that Joe Cladouhous from the Norton                                                            
      Foster               Sound Health Corporation was present at                                                              
                           the meeting.  Mr. Cladouhous introduced                                                              
                           the members of his agency.                                                                         
 1501 Mr. Staser           Explained that some of the projects were                                                             
                           'sub-casts' of the larger projects and                                                               
                           each was separately funded.  He explained                                                            
                           that the program was created as an Excel                                                             
                           sheet but it could be downloaded as a                                                                
                           file.                                                                                              
 1603 Mr. Staser           He demonstrated other features of the                                                                
                           'Program Icon'.  The program update will                                                             
                           provide the monthly information.                                                                   
 1656 Mr. Staser           The report indicates the one person                                                                  
                           responsible for everything in the energy                                                             
                           area.  All partner agencies are listed                                                               
                           such as Alaska Industrial Development                                                                
                           Export Authority (AIDEA) and Alaska                                                                  
                           Village Cooperative (AVC).  He noted that                                                            
                           they have requested proposals with other                                                             
                           partners in that entity can help to                                                                  
                           deliver quicker and cheaper.  In order to                                                            
                           guide what currently happens at the                                                                  
                           Denali Commission, there are policy-                                                                 
                           guiding groups.  He emphasized that the                                                              
                           projects are not prioritized.                                                                      
 1800 Representative       Asked about resources of the Commission                                                              
      Stoltze              going toward communities with economic                                                               
                           distress issues.                                                                                   
 1844 Mr. Staser           Stated yes.  The law indicates that the                                                              
                           word 'rural' should not be defined.  It                                                              
                           is important to look at the federal                                                                  
                           rational for becoming involved.  Each                                                                
                           program has its own distress criteria.                                                               
                           He asked if it would make cost effective                                                             
                           sense for a primary health clinic.  He                                                               
                           noted that there is a steering committee                                                             
                           for health concerns.  That Committee lays                                                            
                           out the guidelines regarding clinics.  He                                                            
                           emphasized that there are projects                                                                   
                           underway in all the cities in Alaska.                                                              
 1948 Mr. Staser           He noted that the Commission is dealing                                                              
                           with the challenge of how to prioritize                                                              
                           the next power line extension.  He asked                                                             
                           what the criteria should be.  Until that                                                             
                           criterion is established, the Commission                                                             
                           will be 'stumbling' in that area.  The                                                               
                           Commission should not be deciding where                                                              
                           to put the next power line extension;                                                                
                           that should be a State or regional plan.                                                             
                           The Commission attempts to do well in                                                                
                           whatever they do.  The eligibility is                                                                
                           there and the Commission guides the                                                                
                           action taken.  The five commissioners are                                                            
                           non-State, non-federal employees.                                                                  
2041 Mr. Staser            Continued, Each of the staff, on the                                                                 
                           program side is borrowed from an agency.                                                             
                           The Commission's overhead rate is about                                                              
                           2% and 98% of the money goes into                                                                    
                           projects.  When a staffer arrives on the                                                             
                           team, they each have individual capacity                                                             
                           that is unique to them. He noted that Mr.                                                            
                           Morgan was the program manager for                                                                   
                           everything that has to do with 'access'.                                                           
2131 Mr. Morgan            Noted that there is a question that the                                                              
                           Commission often receives regarding                                                                  
                           assistance.  The delegation in Washington                                                            
                           D.C. has asked that access and                                                                       
                           transportation is something that the                                                                 
                           Legislature can address.  The                                                                        
                           Commission's response is if that is                                                                  
                           needed, then the State will do it.  To                                                               
                           date, an allocation is in the basic                                                                  
                           information-gathering mode.  The goal is                                                             
                           to understand what opportunities exist                                                               
                           for the Commission to participate in                                                                 
                           access.  Access means land, sea & air.                                                             
2248 Mr. Morgan            Discussed that the Commission has                                                                    
                           identified the community needs and has                                                               
                           met with various agencies and                                                                        
                           departments.  He added that they have                                                                
                           asked many people what should is needed                                                              
                           in the State of Alaska.  He noted that                                                               
                           there are four issues, which have                                                                    
                           resulted.                                                                                            
                             · Authority                                                                                        
                             · Privatization                                                                                    
                             · Delivery                                                                                         
                             · Sustainability                                                                                 
2351 Mr. Morgan            Noted that Senator Lisa Murkowski last                                                               
                           week created a bill authorizing the                                                                  
                           Denali Transportation System.  That would                                                            
                           authorize a funding level in the bill                                                                
                           that Department of Transportation &                                                                  
                           Public Facilities currently gets.  He                                                                
                           advised that the Denali Commission had                                                               
                           gone to many interested parties to                                                                   
                           determine how they feel about the                                                                    
                           language of that bill and how it should                                                              
                           be changed or modified.                                                                            
2444 Mr. Morgan            Reminded members that the Denali                                                                     
                           Commission is a federal agency.                                                                    
2525 Mr. Morgan            He added that the final decisions are up                                                             
                           to the communities and the Commission.                                                             
2538 Mr. Morgan            Addressed forthcoming issues.                                                                      
 2550 Co-Chair Harris      Inquired how the issues of sustainability                                                            
                           are determined.                                                                                    
 2558 Mr. Morgan           Replied that when something is built, it                                                             
                           must be determined how much it will cost                                                             
                           to build but also how much it will cost                                                              
                           to operated and maintain.  He asked how                                                              
                           to determine who would take care of the                                                              
                           structure and where that money would come                                                            
                           from. The guidelines need to be adapted.                                                           
 2636 Senator Bunde        Questioned the relationship of Mr. Morgan                                                            
                           and whom he works for.                                                                             
 2665 Mr. Morgan           Explained he works for Legislative Audit,                                                            
                           Representative Samuels and that he was                                                               
                           paid through the Legislature.  He noted                                                              
                           that he works with the Denali Commission                                                             
                           because the Legislature believes that the                                                            
                           Commission 'is a good idea'.                                                                       
 2727 Senator Bunde        Did not remember that position being                                                                 
                           funded by Legislative Budget and Audit                                                               
                           (LBA) Committee previously.  He commented                                                            
                           that Mr. Morgan was a 'Liaison' and also                                                             
                           working for the Denali Commission.                                                                 
 2750 Mr. Staser           Responded, referencing a slide indicating                                                            
                           the position currently held by Mr.                                                                   
                           Morgan.  He emphasized that the Denali                                                               
                           Commission needs input from the State in                                                             
                           order to undertake the needed projects.                                                            
 2832 Mr. Staser           He noted that Creg Johnston was the                                                                  
                           previous staff member working for the                                                                
                           Commission.  There are additionally, nine                                                            
                           federal staff members located throughout                                                             
                           the State.  He noted that Mr. Morgan                                                                 
                           keeps tracks of all the work done by the                                                             
                           Commission in the State.  The permanent                                                              
                           staff positions are hired and fired                                                                  
                           through the federal Co-Chair.                                                                      
 2944 Mr. Staser           The program 'stuff' is not federal work.                                                             
                           If the State policy is to have Davis-                                                                
                           Bacon wages required, then there will be                                                             
                           fewer clinics as there is a funding                                                                  
                           ceiling, which includes cost and labor                                                               
                           combined.                                                                                          
 3030 Mr. Staser           He emphasized that the role of the                                                                   
                           Legislature has been invaluable for the                                                              
                           Commission to do the correct thing.                                                                
 3044 Representative       Noted that when session began this year,                                                             
    Foster               he requested an update of what the                                                                     
                           Commission was doing and that Mr. Morgan                                                             
                           came to his office and outlined all the                                                              
                           Commission's projects.                                                                             
 3113 Mr. Morgan           Added that his role could be defined and                                                             
                           that it is not static.  He reminded                                                                  
                           members that he did work for them.                                                                 
3124 Senator Bunde         Noted that not only was he working as a                                                              
                           Legislature Liaison but that he was                                                                  
                           assigned also to other projects.                                                                   
3143 Mr. Morgan            Responded that his loyalty was work as                                                               
                           the Legislature Liaison.                                                                           
3153 Mr. Staser            Noted that it was a 'secondary' duty that                                                            
                           provides focus.  He added that the                                                                   
                           position brings together various State                                                               
                           interests.  Mr. Morgan is doing                                                                      
                           essentially staff research in order to                                                               
                           determine State priorities.                                                                        
3241 Representative        Pointed out that Mr. Morgan's primary                                                                
      Hawker               role was to do whatever the Legislature                                                              
                           chooses him to do.  Otherwise, he will                                                               
                           address the larger activities of the                                                                 
                           Denali Commission. He conceded that it                                                               
                           was a well-structured line of authority.                                                           
3338 Mr. Staser            Stated that the Denali Commission wants                                                              
                           to be a learning and responsive agency.                                                              
                           He referenced the performance indicators.                                                          
3410 Mr. Staser            Referenced the website and the monthly                                                               
                           reports.  Program updates, hit the                                                                   
                           subscribe button and insert your email                                                               
                           address and then every month you will be                                                             
                           updated.                                                                                           
3455 Mr. Staser            Advised that there is so much going on                                                               
                           within the Commission.  He stressed that                                                             
                           this is a unique partnership between the                                                             
                           federal and State government.  He                                                                    
                           acknowledged the amount provided through                                                             
                           the non-profits.  Mr. Staser noted that                                                              
                           the Commission cannot do the work alone.                                                             
                           The strength exists within the                                                                       
                           collaborative efforts of all entities                                                                
                           involved.                                                                                          
3607  Mr. Staser           Commented on the number of people that                                                               
                           have been to Alaska and support the work                                                             
                           of the Denali commission.                                                                          
3633 Co-Chair Harris       Asked about the rural road situation and                                                             
                           the Denali Commission's access to                                                                    
                           minerals and energy projects.                                                                      
3657 Mr. Staser            Stated that there is nothing that                                                                    
                           prohibits that from happening now if it                                                              
                           is consistent with the federal law that                                                              
                           provides the funding.                                                                              
3719 Mr. Staser            Added that the new legislation currently                                                             
                           introduced on the U.S. House Floor to                                                                
                           fill gaps within the federal system.                                                                 
                           Some standards are only appropriate for                                                              
                           the areas that they are in and would not                                                             
                           be appropriate for rural Alaska.  He                                                                 
                           asked if there is something that needs to                                                            
                           be done that no one else can do.  He                                                               
                           noted that they do not have a program yet                                                            
                           to address the fundamental needs in                                                                  
                           Alaska.  There are a lot of common                                                                   
                           interests and looking the Commission is                                                              
                           looking for the common ground.  There is                                                             
                           no indication that Congress will be                                                                  
                           funded at the authorization level                                                                    
                           proposed by the U.S. Senate.                                                                       
 3850 Mr. Staser           He noted that they are currently basing                                                              
                           staff on the possibilities of the "what                                                              
                           if's".                                                                                             
 3906 Representative       Noted the gradual decrease in the State                                                              
      Foster               general fund match monies.  He validated                                                             
                           the work provided by the Commission over                                                             
                           the years.  He stated that it was the                                                                
                           only thing that has provided "hope" for                                                              
                           rural Alaska.  He asked the future of the                                                            
                           program.                                                                                           
 3945 Mr. Staser           The federal FY04 budget has not yet been                                                             
                           released.  All those numbers are                                                                     
                           operating under last years proposed                                                                  
                           budgets.  Every single regional authority                                                            
                           throughout the US has been cut.  The                                                                 
                           budget that the President requested for                                                              
                           the Denali Commission is $63 million                                                                 
                           dollars.  The present budget proposal has                                                            
                           been forwarded to Congress.  He noted                                                                
                           that Senator Stevens has been held                                                                   
                           hostage over this proposal for many                                                                  
                           years.  He reiterated that the                                                                       
                           President's budget was fair based on his                                                             
                           budget priorities.                                                                                 
 4123 Mr. Staser           Continued, if the U.S. goes to war, we                                                               
                           cannot count on federal money.  The State                                                            
                           cannot count on federal funds and the                                                                
                           State needs to get into a sustainable                                                                
                           economy.  If there was a plan, the State                                                             
                           could execute it.  He spoke to the public                                                            
                           infrastructure to create economic                                                                    
                           opportunities.  It is important to drop                                                              
                           the cost of power to help the                                                                        
                           communities, and get the workforce                                                                   
                           development issues under control.                                                                  
 4224 Senator Wilken       Thought that that there is not a way to                                                              
                           have multi year funding to avoid the                                                                 
                           appropriation angst.                                                                               
 4243 Mr. Staser           Replied that was correct.  Currently, the                                                            
                           Commission does not have multi year                                                                  
                           funding.  It has been requested.                                                                   
 4252 Senator Wilken       Asked about the status of the T-21                                                                   
                           authorization for service transportation.                                                          
 4306 Mr. Staser           That bill is in draft form in the House                                                              
                           of Representatives.  It is the largest                                                             
                           Committee in the Congress.  There are                                                                
                           many people that have to come together to                                                            
                           make it work.  There must be agreement                                                               
                           and acknowledged that the staff is                                                                   
                           working with the draft of the bill.                                                                
4330 Mr. Morgan            Added that this is just beginning.  The                                                              
                           State can only provide input at this                                                                 
                           time.                                                                                              
4349 Mr. Staser            Interjected that the staff needs to get                                                              
                           all their comments in by the end of                                                                  
                           month.                                                                                             
4402 Senator Wilken        Asked if that would continue to be at six                                                            
                           years, $400 + million dollars.                                                                     
4416 Mr. Staser            Replied that the bill was for a six-year                                                             
                           authorization.  Within that bill, if the                                                             
                           money is coming from the Highway Trust                                                               
                           Fund, it is inherent that the                                                                        
                           appropriation will come with the                                                                     
                         authorization.                                                                                       
4444 Senator Wilken        Asked if there was anything that the                                                                 
                           Legislature could do to help with that                                                               
                           effort.                                                                                            
4455 Mr. Staser            Replied that there is a model for how                                                                
                           that works in other parts of the country.                                                          
4522 Mr. Staser            Added that in the absence of a plan, it                                                              
                           makes it more difficult for the federal                                                              
                           delegation.                                                                                        
4538 Senator Wilken        Suggested that was what the Legislature                                                              
                           should be working on.                                                                              
4550 Mr. Morgan            Added that before there can be a plan                                                                
                           assembled, everyone should be 'working                                                               
                           off the same page'.  He noted that they                                                              
                           are working with Department of                                                                       
                           Transportation & Public Facilities in                                                                
                           that regard.  They are the largest agency                                                            
                           database of information.  The challenge                                                              
                           is to gather all lists from each page.                                                             
4634 Senator Wilken        Listed the four categories of focus:                                                                 
                             · authority                                                                                        
                             · project prioritization                                                                           
                             · delivery                                                                                         
                             · sustainability                                                                                 
                                                                                                                                
                           TAPE HFC 03 - 16, Side B                                                                         
4700 Senator Wilken        Commented that the presentation had been                                                             
                         well prepared.                                                                                       
4616 Mr. Staser            Pointed out that the packet contained a                                                              
                           map of the United States with a map of                                                               
                           Alaska super imposed over the top of it                                                              
                           indicating the transportation risks.                                                               
4520 Co-Chair Williams     Mentioned the access system and how that                                                             
                           it could affect the Alaska ferry system.                                                           
 4452 Mr. Staser           Noted that the Commission does not use                                                               
                           the word 'transportation' but rather the                                                             
                           word 'access' to get every citizen access                                                            
                           to whatever citizen should have access                                                               
                           to.  He noted that the Commission depends                                                            
                           heavily on the Department of                                                                         
                           Transportation & Public Facilities and                                                               
                           the non-profit groups that represent                                                                 
                           some of the Native communities to get the                                                            
                           issues on the table.  The State of Alaska                                                            
                           already has several plans completed.                                                               
 4335 Senator Bunde        Asked about the Commission's funding                                                                 
                           summary.                                                                                           
 4242 Mr. Staser           Reviewed the Commission's funding                                                                    
                           summary.  Base funding comes from the                                                                
                           federal government. There is an automatic                                                            
                           funding source managed by the U.S. Coast                                                             
                           Guard from the Trans-Alaska Pipeline                                                                 
                           Liability Fund. Discussed the USDA Rural                                                             
                           Utilities Service funding and he added                                                               
                           that the Environmental Protection Agency                                                             
                           (EPA) funding was new.                                                                             
 4021 Mr. Staser           Observed that another chart had been                                                                 
                           added demonstrating the matching funds.                                                              
                           He emphasized a need to be fiscally                                                                  
                          responsible.                                                                                        
 3933 Senator Bunde        Observed that the total funding is a                                                                 
                           little over $200 million dollars.  He                                                                
                           reminded members that future federal                                                                 
                           dollars is not guaranteed. He was                                                                    
                           concerned with unrealistic expectations                                                              
                           throughout the State.                                                                              
 3822 Mr. Staser           Stated that the Commission shares that                                                               
                           concern.  He referenced the unfunded                                                                 
                           federal mandates to create underground                                                               
                           fuel tank storage.  He added that the                                                                
                           Denali Commission was going to try to do                                                             
                           172 bulk fuel projects.                                                                            
 3718 Senator Bunde        Questioned what enforcement and the                                                                  
                           transferring of ownership meant.                                                                   
 3704 Mr. Staser           Explained that sometime training is                                                                  
                           needed to allow communities to get their                                                             
                           tanks up to standard.  Sometimes                                                                     
                           communities are encouraged to band                                                                   
                           together for economy of scale projects.                                                              
                           He questioned what the State would do to                                                             
                           drop the insurance cost to the facilities                                                            
                           so that the communities can afford to                                                                
                         operate them.                                                                                        
 3534 Mr. Staser           Observed that the Commission is currently                                                            
                           looking at what constitutes a sustainable                                                            
                           community.                                                                                         
 3503 Senator Hoffman      Asked what is being accomplished.  The                                                             
                           goal is to allow people to be more self                                                              
                           sufficient and responsible. The Denali                                                               
                           Commission is allowing people to do that.                                                            
                           The driving force is to sustain projects.                                                            
                           He pointed out that there has been a lack                                                            
                           of emphasis on maintenance.                                                                        
3329 Representative        Recalled that during the late 1980's,                                                                
      Foster               large projects would occur in the rural                                                              
                           areas, where the contracts would be won                                                              
                           and operated by out-of-state entities                                                                
                           without a local hire.  He emphasized the                                                             
                           changes that had been made by the                                                                    
                           Commission toward local hire.                                                                      
3214 Mr. Staser            Pointed out that there is a balance                                                                  
                           between financing and the results.  Life                                                             
                           cycle projects are important.  Research                                                              
                           and development are critical components.                                                             
                           He admitted that the question should be                                                              
                           asked whether we are using our resources                                                             
                           to our greatest advantage.                                                                         
3045 Senator Wilken        Requested information on the efforts to                                                              
                           address water and sewerage concerns.                                                               
3012 Mr. Staser            Observed that the Commission does not                                                                
                           handle village safe water.  The                                                                      
                           management team of the Village Safe Water                                                            
                           is doing a good job at identifying                                                                   
                           lessons learned over the past couple                                                                 
                           years.  However, the water sewage systems                                                            
                           are not built in concert with a                                                                      
                           sustainability plan.  Currently, there is                                                            
                           a inter agency collaboration resulting in                                                            
                           a steering committee to determine                                                                    
                           specific criteria for sustainability.                                                                
                           That committee is lead by Ernesta Ballard                                                            
                           from Department of Environmental                                                                     
                           Conservation and Bill Allen from USC                                                                 
                           Rural Development.                                                                                 
2902 Mr. Staser            Acknowledged that the Commission does                                                                
                           have concerns regarding the village safe                                                             
                           water, but that is not their program.                                                              
2845 Senator Olson         Report on the radio regarding the number                                                             
                           of projects undertaken by the Denali                                                                 
                           Commission.  He mentioned the concerns                                                               
                           with the village of Shishmaref and their                                                           
                           need to move that village.                                                                         
2758 Mr. Staser            Replied that the situation in that                                                                   
                           village is not unique.  There has been an                                                          
                           assessment to determine which communities                                                            
                           are at risk, what are the costs to                                                                   
                           mitigate the risk and the cost of                                                                    
                           relocation.  He noted that they are                                                                  
                           meeting with the appropriate agencies                                                              
2720 Mr. Staser            Noted that they were working with Norton                                                           
                           Sound to determine what makes the best                                                               
                           sense.  Questions are being asked                                                                    
                           regarding if a community can be moved and                                                            
                           still meet the needs of what is                                                                      
                           important.  He noted that it was                                                                     
                           discussed in January with the                                                                        
                           commissioners and will come back in April                                                            
                           with a more clarified resolution.  Access                                                            
                           to health care is essential.  He                                                                     
                           mentioned that communities at risk for                                                               
                           being moved would need to redesign their                                                             
                           health facilities.                                                                                 
 2626 Senator Olson        Questioned if Mr. Staser was saying that                                                             
                           they had the ability to fund a temporary                                                             
                           facility.  He asked what would be told to                                                            
                           the workers at the health care facility.                                                           
 2601 Mr. Staser           Replied that there are both State and                                                                
                           Federal program funds.  The State does                                                               
                           have an emergency program.  They are more                                                            
                           able to respond and perhaps there could                                                              
                           be an interim solution.                                                                            
 2457 Senator Olson        Noted that Mr. Joe Cladouhous, Norton                                                                
                           Sound Health Corporation could address                                                               
                           funding a temporary facility.                                                                      
 2445 Mr. Staser           Acknowledged that there are options.  The                                                            
                           bottom line will come in after their                                                                 
                           April, 2003 meeting.                                                                               
 2410 Senator Olson        Applauded the representatives from the                                                               
                           Norton Sound Health Corporation.                                                                   
 2328 Mr. Claudous         [testimony inaudible].                                                                             
 2318 Mr. Staser           Stated that was why the meeting had been                                                             
                           scheduled in Nome.                                                                                 
 2314 Co-Chair Williams    Asked who manages the construction                                                                   
                           projects.                                                                                          
 2303 Mr. Staser           Replied that the Commission partners with                                                            
                           various agencies.  Norton Sound is a                                                                 
                           partner.  He noted that they give the                                                                
                           feds the ability to opt out of any of                                                                
                           those partnerships.                                                                                
 2231 Senator Bunde        Asked when the report would be available.                                                          
 2215 Mr. Staser           Reported that by the scheduled meeting in                                                            
                           April something would be available for                                                               
                         distribution.                                                                                        
 2152 Mr. Staser           Pointed out that preparation and                                                                     
                           distribution of the report was a part of                                                             
                           Mr. Morgan's job.                                                                                  
 2135 Mr. Staser           He added that Mr. Morgan could provide a                                                             
                           briefing of the anticipated contents of                                                              
                           the report.                                                                                        
 2108 Representative       Commented on the "drying up" of the                                                                  
      Foster               general fund and how the situation has                                                               
                           caused grasping within the villages.  He                                                           
                           stressed that the Denali Commission was                                                              
                           keeping rural Alaska going.                                                                        
2086 Mr. Staser            Appreciated the support.  He added that                                                              
                           the Commission was "just the meeting                                                                 
                           place".  He reminded members that the                                                                
                           work of the Commission was a                                                                         
                           collaborative effort.                                                                              
2017 Co-Chair Harris       Mentioned that accountability and                                                                    
                           sustainability are important concepts for                                                            
                           Alaska at this time.  He acknowledged                                                                
                           that the needs continue to grow as the                                                               
                           budget decreases.  There needs to be an                                                              
                           economic availability to maintain any                                                                
                           projects undertaken.  Sustainability                                                                 
                           needs to be present.  He voiced                                                                      
                           appreciation for the role of the                                                                     
                           Commission.                                                                                        
1913 ADJOURNMENT           The meeting was adjourned at 2:57 P.M.                                                             
                                                                                                                                

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