Legislature(2015 - 2016)BARNES 124
01/28/2015 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Administration - Commissioner Fisher | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 28, 2015
3:15 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF ADMINISTRATION - COMMISSIONER FISHER
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SHELDON FISHER, Commissioner Designee
Department of Administration (DOA)
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint overview of the
Department of Administration.
KATE SHEEHAN, Director
Division of Personnel & Labor Relations
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the Department of Administration.
KONRAD JACKSON, Staff
House Labor & Commerce Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on behalf of the House
Labor & Commerce Standing Committee, Representative Kurt Olson,
Chair, during the overview of the Department of Administration.
ANDY MILLS, Special Assistant
Office of the Commissioner
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview of
the Department of Administration.
ACTION NARRATIVE
3:15:00 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives Kito,
Tilton, Josephson and Olson were present at the call to order.
Representatives Colver, Hughes, and LeDoux arrived as the
meeting was in progress.
^OVERVIEW: DEPARTMENT OF ADMINISTRATION - COMMISSIONER FISHER
OVERVIEW: DEPARTMENT OF ADMINISTRATION - COMMISSIONER FISHER
3:15:27 PM
CHAIR OLSON announced that the only order of business would be
an Overview: Department Of Administration by Commissioner
[Designee] Fisher.
3:15:53 PM
SHELDON FISHER, Commissioner Designee, Department of
Administration (DOA), directed attention to the organization and
mission of the Department of Administration [slide 2]. He
emphasized that a substantial portion of the department's
efforts and services are rendered to the public and to other
state agencies.
3:17:36 PM
COMMISSIONER FISHER highlighted that the Division of Motor
Vehicles (DMV) and the Public Defender Agency (PDA) cover most
of the state, with offices in many communities in every region
of the state [slide 3]. The department employs slightly more
than 1,000 employees.
COMMISSIONER FISHER acknowledged the visibility of the Division
of Motor Vehicles (DMV) since most Alaskans conduct business
with this division. The DMV has worked hard in the past few
years to improve its service and shorten lines. The DMV does
provide some on-line services and in 2014, 48 percent of
registration renewals occurred on-line, he reported. The DMV
hopes to be able to provide on-line renewal of drivers' licenses
soon. Although the tests can't be administered on-line, people
can take practice exams to shorten the amount of time spent
inside the facilities. Thus, the DMV is constantly looking at
ways to shorten lines and improve its service.
COMMISSIONER FISHER reported that the Division of Retirement and
Benefits (DRB) represents an important part of the department's
responsibilities. In addition, the Public Defender Agency (PDA)
and the Office of Public Advocacy (OPA) provide
constitutionally-mandated services, but while these agencies
have experienced fairly dramatic increases in their respective
caseloads, these increases create challenges as the state faces
budget constraints. The department also houses five independent
commissions, including the Alaska Public Offices Commission
(APOC), the Alaska Oil & Gas Conservation Commission (AOGCC),
the Alaska Public Broadcasting Commission (APBC), the Office of
Administrative Hearings (OAH), and Violent Crimes Compensation
Board (VCCB). The department provides administrative services
to the aforementioned commissions, but also recognizes they are
independent commissions.
3:19:55 PM
COMMISSIONER FISHER directed attention to slide 5, to the
services the department provides to other state agencies. For
example, the Division of Finance (DOF) provides statewide
financial and payroll services as well as an e-travel program.
The Division of General Services (DGS) provides management of
space and buildings. The Division of Personnel and Labor
Relations (DPLR) has a centralized and managed human resources
function as well as overseeing labor relations and contract
bargaining. The Enterprise Technology Services (ETS) consists
of the centralized portion of the states' information technology
and the Division of Risk Management (DRM) manages insurance and
risk for the state. Finally, the Division of Administration
(DOA) services provides budget, financial, and procurement
services to the department.
3:20:56 PM
COMMISSIONER FISHER outlined core initiative and challenges for
the Department of Administration (DOA) [slide 6]. Each area
consists of a function within the department and across
departments. The Department of Administration provides services
and a leadership role to others, he said. In terms of personnel
cost savings, the state spends about $2.6 billion on personnel
and as the state faces budget challenges, it must also reduce
those costs, in part, through increased productivity. The
department must also continue to focus on health care spending.
The second area the department has focused on has been to
continue to reduce the unfunded liability, in particular, in the
area of health care costs. The state also hopes to lower costs
for state purchases and procurement. For example, the state
spends nearly $2 billion on goods and services so even modest
savings can result in fairly substantial savings. Further, the
department also sees an opportunity to improve its centralized
and decentralized functions in information technology. Finally,
in terms of facility management, the department believes that an
opportunity exists for the state to become more efficient in the
utilization of space.
3:23:01 PM
COMMISSIONER FISHER reported labor and the collective bargaining
contracts [slide 7]. This slide highlights the contracts that
expire between June 30, 2014 and June 30, 2016, he said. Last
year, the department did not reach final agreement on two
contracts: the Marine Engineers' Beneficial Association (MEBA)
and the Masters, Mates, and Pilots (MMP), so those contract
negotiations will continue this year. In addition, this year
the department will negotiate three contracts: the Alaska
Correctional Officers Association (ACOA), the Public Employees
Local 71 (LTC), and the Teachers' Education Association of Mt.
Edgecumbe (TEAME). The department has reached tentative
agreement with the ACOA; however, it will continue to negotiate
with the LTC and TEAME this year. A substantial number of
employees are members of three contracts that will expire next
year: the Alaska State Employees Association (ASEA), the Alaska
Public Employees Association (APEA), and the Confidential
Employees Association (CEA).
3:24:08 PM
REPRESENTATIVE COLVER mentioned that he came in contact with a
number of DOT&PF and the Alaska Department of Fish and Game
(ADF&G) employees in his travels this summer, who expressed
concern that the cost of living adjustment (COLA) was the same
in rural areas as in Anchorage, even though rural areas
experience much higher fuel and electric costs. He asked
whether these costs will also be negotiated in the bargaining
process. He expressed concern about retention of some employees
in rural Alaska due to the high cost of living.
3:25:31 PM
KATE SHEEHAN, Director, Division of Personnel & Labor Relations
(DPLR), Department of Administration (DOA), answered that the
increase Representative Colver mentioned is the geographic pay
differential cost, which was the result of a 2009 McDowell Group
study that was bargained with most of the unions. She stated
that the geographic pay differential, in statute, resulted from
passage of Senate Bill 95. In fact, the department is currently
negotiating with LTC, the Laborer's Trades and Crafts [Local 71]
who do not currently have the geographic pay differential rates.
However, under statute a geographical pay study can be performed
every five years with an appropriation by the legislature. In
2008, the legislature appropriated funds for the study that
resulted in the aforementioned geographic pay differential
rates, she said.
3:26:21 PM
REPRESENTATIVE COLVER asked whether the General Government Unit
(GGU) is affected by the geographic pay differential.
MS. SHEENAN answered yes; additionally the [Alaska Public
Employees Association (APEA)] Supervisory Unit (SU),
Confidential Employees Association (CEA), and Alaska
Correctional Officers Association (ACOA) were also included.
However, the Alaska Vocational Technical Center (AVTEC) teachers
and three marine units are not affected.
REPRESENTATIVE COLVER related his understanding that this will
arise as a topic for the unions to consider as to whether it is
an issue.
CHAIR OLSON recalled the court system may also have had [a study
performed].
MS. SHEEHAN replied that she did not know the answer to that
question.
CHAIR OLSON further recalled it might be unresolved.
KONRAD JACKSON, Staff, House Labor & Commerce Standing
Committee, Alaska State Legislature, added that a bill was
introduced last legislature but it did not pass.
3:27:21 PM
COMMISSIONER FISHER directed attention to the average yearly
base salary by work associations [slide 8]. He indicated the
salary range varies, depending on the unions. In addition, the
average employee benefit cost is approximately 49 percent of the
yearly average pay. Further, these numbers do include an
average geographic pay differential, he said.
3:27:58 PM
REPRESENTATIVE HUGHES asked for further clarification on the
PSEA. She asked what "AA" and "AP" stand for in terms of the
Public Safety Employees Association (PSEA) salaries listed.
COMMISSIONER FISHER answered that "AA" refers to the Alaska
State Troopers (AST) and "AP" covers the airport police and fire
personnel, who have different rates.
3:28:21 PM
COMMISSIONER FISHER directed attention to an overview of the
negotiation process [slide 9]. He advised that the process is
governed by statute and negotiations are begun based on the
terms of the collective bargaining. Typically, the negotiation
process starts in the fall. Certain terms such as wages, hours,
and other terms are mandatory. The Department of Administration
must submit the monetary terms to the legislature for approval
no later than the 60th day of the legislative session. In the
event the department doesn't reach an agreement, some employees
have the right to strike, he said [slide 10].
3:29:31 PM
REPRESENTATIVE LEDOUX, with respect to the right to strike,
noted that all employees have the right to strike except for
protective service personnel. She asked whether the right to
strike is based on state or federal statute, or if it is based
on common law.
MS. SHEEHAN answered that the right to strike is based on the
Public Employment Relations Act (PERA), which is state statute.
She directed attention to AS 23.40, which defines the three
classes of employees; for example, Class 1 - police and fire
protection includes all Department of Public Safety (DPS)
employees, including correctional officers. The other classes
are also defined, she said.
3:30:33 PM
REPRESENTATIVE LEDOUX asked whether there is a local option
clause.
MS. SHEEHAN answered that not all employers are subject to the
Public Employment Relations Act (PERA), but all classified state
employees are subject to the act.
3:30:56 PM
COMMISSIONER FISHER directed attention to labor striking, to the
strike classes Representative LeDoux just referred to [slide
11]. He stated that "Strike Class 1" employees do not have the
right to strike, but have certain other rights. The right to
strike can be limited for "Strike Class 2" employees, which
consists of public utility, snow removal, sanitation, and
educational institution employees. He said that "Strike Class
3" may strike if the majority of its members vote to do so.
3:31:37 PM
COMMISSIONER FISHER referred to the flowchart on slide 12,
entitled "Bargaining Road Map." In the event of an agreement
monetary terms are submitted to the legislature the contract
would be finalized, assuming the funds are appropriated. In the
event of an impasse, "Strike Class 1" employees without the
right to strike can seek arbitration to resolve the disputes.
The other classes do not have that right, but certain
alternatives exist depending on what the department decides to
do; however, he assured members the department works very hard
to reach agreement and has generally been successful.
3:32:38 PM
REPRESENTATIVE JOSEPHSON, in terms of exempt employees, asked
whether legislation modifies the salaries.
MS. SHEEHAN asked for further clarification on the question.
REPRESENTATIVE JOSEPHSON asked who sets the salary for exempt
employees, such as the deputy commissioner and how those
salaries are modified.
MS. SHEEHAN answered that it depends; for example, the partially
exempt salary schedule is set in statute by the legislature.
The Public Employment Relations Act (PERA) requires the
department to bargain wages. Thus, the classified employees'
salaries are set through collective bargaining. Exempt employee
salaries are set by whoever makes the determination, she said.
3:34:08 PM
REPRESENTATIVE LEDOUX asked who makes the determination.
MS. SHEEHAN answered that the governor makes determinations on
staff salaries, but exempt employees in commissions would be set
by the commission, in consultation with the governor's office.
For example, the Alaska Seafood Marketing Institute (ASMI)
salaries would be made by ASMI, in consultation with the
governor's office.
3:34:43 PM
COMMISSIONER FISHER highlighted the past Cost of Living
Allowances (COLA) that were negotiated [slide 13]. At the time
COLA is negotiated, no one knows what the consumer price index
(CPI) will be; however, over time the COLA increases have
roughly matched the actual CPI increases. He offered that one
percent CPI in the five different contracts being negotiated
will have different impacts on the individual contracts. As a
whole each one percent COLA amounts to approximately $2.7
million annually or $16.3 million for three years, he said.
3:35:59 PM
COMMISSIONER FISHER turned to the current status of contracts
[slide 15]. As previously mentioned, the contracts for the
Masters, Mates, & Pilots (MMP) and Marine Engineers' Beneficial
Association (MEBA) were scheduled to be negotiated last year.
The state reached a tentative agreement with MMP, but its
members failed to ratify the agreement so negotiations will
continue. The state has not yet reached an agreement with MEBA,
but negotiations continue. However, the state has reached a
tentative agreement with Alaska Correctional Officers
Association (ACOA). He pointed out the negotiated COLA figures
of 1 percent in 2016, 1 percent in 2017, and 2.5 percent in
2018. The Labor Trades & Crafts and the Teachers' Education
Association of Mt. Edgecumbe (TEAME) are both currently in
negotiations with the state, he reported.
3:36:55 PM
COMMISSIONER FISHER discussed the next steps once agreement is
reached noting that the DOA submits the monetary terms of an
agreement to the legislature for approval [slide 16].
3:37:07 PM
COMMISSIONER FISHER discussed the monthly health insurance
benefit credit [slide 17]. This impacts the state in two ways,
for active employees and for retirees. He pointed out the
dramatic increase in costs, such that in the past 30 years, the
Alaska consumer price index (CPI) increased by 95 percent with
medical expenses increasing by over 300 percent. Alaska
continues to be one of the most expensive states in the nation
for medical services, he said, with medical expenses sometimes
costing twice as much in Alaska as in some other states. The
administration sees the need and opportunity to try to continue
to reduce costs, he said. Costs have begun to decline in the
last year, in part, by replacement of the state's third party
administrator with Aetna. In fact, Aetna's more substantial
network has reduced costs, he said, estimating that in 2014 the
state saved nearly $44 million.
3:38:43 PM
CHAIR OLSON cautioned that [Aetna's success] depends on the
region since some parts of the state continue to experience a
shortage of medical professionals. He reported that he has
received a number of complaints from retirees and from some
active employees in his district who allege that benefits have
diminished under Aetna. If so, it would probably be in
violation of their contract, he stated. He asked for comments.
COMMISSIONER FISHER explained that the task of the third-party
administrator is to administer approximately 1.5 million line
items in the insurance plan. He acknowledged that challenges
exist in figuring out how to align and preserve with precision
specific benefits when switching administrators. Some benefits
may impact members, he agreed, stating the administration has
been holding conversations with retirees to address their
concerns and find solutions to more clearly meet their needs;
however, he also doesn't believe there has been a diminishment
in the overall plan. He cautioned that the standard does not
require a one-for-one exactness, but rather that the plan must
provide a program roughly comparable - with some pluses and
minuses. He further said that the administration understands
the frustration members are having and has been taking steps to
try to address their concerns.
3:41:07 PM
CHAIR OLSON outlined his plan to schedule meetings to discuss
the aforementioned issues at length. He encouraged Commissioner
Fisher to participate, as well as welcoming Aetna's
participation. Although he has held some brief conversations
with Aetna, the complaints and nature of the calls are serious
enough to warrant further investigation. For example, Aetna has
been using the Rawlings [Group], a Lower 48 subrogation company
that isn't licensed in Alaska, in fact, according to the DCCED's
website the company doesn't even hold a business license in
Alaska. He expressed concern that the Rawlings Group has been
attempting to shift claims from the major medical policy to an
automobile policy, workers' compensation, or other policy. He
advised members that these issues will be considered under a
separate series of meetings.
COMMISSIONER FISHER responded that he will be delighted to
engage in those meetings. He said, "I do think this is
critical, and critical from both dimensions." First, it is
critical for the state to address its medical costs. Of the $10
billion plus of unfunded liability in the pension plan, $3.6
billion is associated with medical care. At the same time;
however, the state should provide its retirees the services they
deserve. He welcomed working with the committee on resolve
these issues.
3:43:05 PM
CHAIR OLSON asked whether the department has been considering
medical tourism. He recalled that previously the administration
had been considering sending patients and their
spouses/caregivers, primarily to Seattle, to obtain specialized
treatment. He recalled that treatment would be 40 to 50 percent
less even with travel and lodging expenses.
COMMISSIONER FISHER answered yes; that the department is looking
at everything. The aforementioned scenario illustrating the
cost dynamic demonstrates some of the challenges the department
is facing, he said.
CHAIR OLSON offered to provide the top 25-50 procedures based on
six western states, primarily developed for workers'
compensation. He said that some medical procedures are 300 to
350 percent more expensive in Alaska.
3:44:36 PM
REPRESENTATIVE LEDOUX asked whether the state has considered
working with the federal government to allow more foreign
physicians to immigrate if they are willing to work in Alaska or
remote areas. She offered her belief, with respect to
immigration, that physicians don't currently receive any
advantage in the queue, whereas nurses have a much easier time
immigrating. She acknowledged the matter relates to federal
immigration, but she wondered whether the state could foster
discussions to obtain exemptions for physicians.
COMMISSIONER FISHER said he thought her suggestion is a great
one and although he is not aware of any initiative, she has
raised an interesting opportunity to explore.
3:45:40 PM
CHAIR OLSON, with respect to medical tourism, advised members
that during the pipeline days, one union had two Lear jets to
medevac workers to Seattle for treatment.
REPRESENTATIVE LEDOUX commented that medical tourism is used by
a number of countries.
3:46:13 PM
COMMISSIONER FISHER directed attention to the graph that
illustrates the steep increase in benefits for PERS/TRS [Public
Employees Retirement System/Teachers Retirement System] in the
coming decades [slide 19]. He cautioned that the state only has
a few years to make a difference, but if the state succeeds in
reducing costs, it will reap substantial benefits in the coming
decades. He said he feels a sense of urgency to aggressively
pursue reductions so the state doesn't miss this opportunity.
The current unfunded liability is just over $10 billion, he
said.
3:47:11 PM
REPRESENTATIVE KITO related his understanding that the graph on
slide 19 illustrates the impact of Tier I and Tier II employee
medical costs that will diminish over time. He asked whether
the current Tier IV employees will incur medical costs in the
future.
COMMISSIONER FISHER answered yes; however, the state has worked
hard to ensure that there isn't unfunded cost for Tier IV so
over time the burden on the retirement plan will be less.
3:48:17 PM
REPRESENTATIVE JOSEPHSON recalled a series of articles last
April that noted legislation shifting $3 billion to the trust
was good, but that this would be consumed by a new scheduled
payout due to the amortization. He asked whether the
commissioner could comment on whether the legislature back ended
the trust but left a somewhat larger problem for future
generations to contend with.
COMMISSIONER FISHER, referring to slide 20, pointed out the
graph illustrates the $3 billion payment made last year. The
green line shows what would have been the amortization schedule
and the blue and red lines represent the forecasted schedule.
He agreed that in the outlying years there appears to be a
crossover and that it pushed some costs further out.
REPRESENTATIVE JOSEPHSON commented that it will be difficult to
change course this year or next year; however, he noted it is a
concern some have had.
3:49:53 PM
REPRESENTATIVE KITO also expressed his concern that by extending
the amortization out too far, the state may be back into the
situation of paying more in interest than the state can afford.
COMMISSIONER FISHER offered to review the schedule and consider
options.
3:50:28 PM
CHAIR OLSON asked whether the commissioner could break out the
retirement and the medical component into two charts.
COMMISSIONER FISHER answered yes.
3:50:44 PM
REPRESENTATIVE HUGHES recalled several years ago the state
planned to institute a health care management plan designed for
savings. She asked whether the state has done so and if the
state has realized savings. She further recalled that it may
have been a nurse call in line.
CHAIR OLSON asked whether Representative Hughes is referring to
TeleMed [telemedicine].
COMMISSIONER FISHER said he was unsure, but related his
understanding that a certain amount of telemedicine is being
used in rural Alaska.
REPRESENTATIVE HUGHES wondered if the state has some kind of
program for state employees and retirees.
3:52:18 PM
ANDY MILLS, Special Assistant, Office of the Commissioner,
Department of Administration (DOA), suggested that
Representative Hughes might be referring to the wellness
program. He stated that this voluntary program brought forward
ideas, such as Weight Watchers, employee health concepts, and an
employee assistance program similar to a counseling line. Some
telemedicine and other concepts such as onsite clinics were not
implemented, he said.
3:53:06 PM
REPRESENTATIVE HUGHES asked whether there were any savings.
MR. MILLS answered that wellness is difficult to track or to
find measureable and quantifiable results. He offered to check
but the outcome of the wellness program means better long-term
health for its members.
3:53:36 PM
REPRESENTATIVE HUGHES recalled that the proposal was supposed to
achieve savings and while she recognized the importance of
having healthy Alaskans, she also expressed an interest in
obtaining feedback that demonstrates quantifiable program
benefits.
COMMISSIONER FISHER offered to check into this for the
committee.
3:54:07 PM
COMMISSIONER FISHER highlighted that the third area of focus is
to obtain savings in state purchasing [slide 21]. Currently,
some state procurement is managed by the department and other
procurement is managed by various other departments, he said,
although some benchmarks indicate the department has saved $60
million. However, this is an area that is ripe for additional
savings, he said.
3:54:56 PM
COMMISSIONER FISHER directed attention to slide 22 to the
[Integrated Resource Information System] IRIS. This system will
replace aging financial systems currently in operation and allow
a more complete and comprehensive view of financial information
as well as purchasing information. He reported that the
department is in the final stages of "go live" testing and
expects to make the transition to phase three of financial
management and "go live" this year. Further, he anticipated
that next year phase 4 will include human resources and payroll
components. He reported that the department is on schedule and
on budget with the IRIS project.
COMMISSIONER FISHER directed attention to the self-serve site
that vendors can use [slide 23]. This includes RFPs [Request
for Proposals] and various grants, allowing vendors to obtain
status and facilitating efficiency and more competitive bids in
the state processes.
3:56:22 PM
COMMISSIONER FISHER directed attention to the information
technology [IT] services, which are centralized through the ETS
[Enterprise Technology Services] but decentralized through the
department-centric function [slide 24]. He estimated
approximately $220 million in total IT spend, of which $38
million is for ETS. Many think that the department currently
has a somewhat "silo" or "department-centric" view, with
inconsistent standards or a duplication of effort in each
department, he said. He assured members that the department
will work to find the right structure to improve the level of
service, in part, due to the legislature's request, but partly
through its own efforts.
3:57:28 PM
REPRESENTATIVE KITO asked whether the state previously had a
centralized IT service.
COMMISSIONER FISHER related his understanding that there have
been at times a more centralized IT, perhaps not 100 percent,
but rather an ebb and flow over the years. He was not sure on
the details.
3:57:56 PM
COMMISSIONER FISHER directed attention to the building
portfolio, pointing out that the state manages 19 buildings
consisting of 1.6 million square feet in state-owned buildings
with another 3.9 million square feet of space in leases [slide
25]. He reported the state-owned building occupancy is at 97
percent occupancy - which is great; however, the department
continues to strive to reduce costs and move as many people to
state-owned facilities as possible. Universal space standards
has been one tool used to achieve a higher density of workers
[slide 26]. He reported that although some space standards to
upgrade cubicles were instituted, and ones currently underway
will be completed, the administration has halted further
universal space standards action due to budgetary changes that
may affect staff numbers.
3:59:46 PM
REPRESENTATIVE COLVER related his understanding that the space
reorganization has been very unpopular among employees, who
haven't viewed these changes as cost savings measures because
implementing space standards also necessitates buying new office
equipment. He hoped the commissioner will solicit feedback from
workers. Workers know what will work more efficiently and he
questioned implementing the universal space standards in all
buildings statewide. He reported hearing that having four
people in one cubicle makes it impossible to conduct business,
particularly in terms of confidentiality. He viewed this as an
opportunity for the department to review this process.
REPRESENTATIVE KITO agreed with Representative Colver in terms
of making sure that state employees have the adequate space and
the resources they need to do perform their jobs. He
acknowledged that may vary so he hoped the DOA will work with
other commissioners to be certain that individual job classes
are adequately served.
4:01:57 PM
COMMISSIONER FISHER answered yes; noting the department has been
reviewing some of the complaints with union representatives to
address the issues. He said he has reviewed some of the
materials, noting the nationwide trend to try to use space more
efficiently. He offered his belief that the department can use
space more efficiently, but said he was unsure whether [the
universal space standards approach] is the right answer or not.
However, considering space standards is not inconsistent with
other initiatives in the private and public sectors, he said.
4:03:15 PM
REPRESENTATIVE HUGHES hoped the department would also consider
co-locating offices as it reviews statewide physical space in
order to save money whenever possible. For example, as she
mentioned recently in a House Transportation Standing Committee
meeting, it seems like it would make sense to have the trooper
and the highway department share space in rural areas.
4:04:13 PM
COMMISSIONER FISHER referring to an earlier slide, acknowledged
that the state often does co-locate offices; however, he agreed
that other opportunities probably exist to be more efficient
with space.
4:04:32 PM
COMMISSIONER FISHER directed attention to insurance and the
catastrophic fund managed by the department [slide 27]. The
state has experienced several catastrophic events in the past
year.
REPRESENTATIVE JOSEPHSON asked whether the Aerospace Launch
Complex in Kodiak catastrophic event is a covered event.
COMMISSIONER FISHER answered that the department is subject to a
$1 million deductible, but the balance will be covered through
multiple insurance companies. Thus, the state's exposure is
capped at $1 million, he said.
CHAIR OLSON asked whether there is recovery from the parties.
COMMISSIONER FISHER interjected that an investigation is
currently ongoing, but this will largely be between the
insurance companies and the launch facility.
4:05:58 PM
COMMISSIONER FISHER explained that the last few slides represent
three recently renovated office buildings: the Nome State
Office Building, the Douglas Island building in Juneau, and the
Geologic Materials Center in Anchorage [slides 28, 29, and 30].
He reported efficiencies were achieved in each of the buildings
by updating the insulation and thermal improvements. In
particular, the Geologic Materials Center was renovated at half
the cost of new construction and construction time cost was
reduced by two years, he said.
4:07:22 PM
CHAIR OLSON commented that the [Anchorage Legislative Office} is
a nice building.
COMMISSIONER FISHER indicated the DOA does not manage that
project or building.
4:07:41 PM
CHAIR OLSON reported that his Kenai office co-locates with
several offices, including the DOT&PF, the OCS [Department of
Health and Social Services, Office of Children's Services] and
the LIO [Legislative Information Office].
COMMISSIONER FISHER acknowledged the comments made.
4:08:05 PM
REPRESENTATIVE HUGHES reported on an incident one of her
constituents experienced at the DMV in an attempt to obtain
his/her permanent vehicle registration. The person could not
find the information on the DMV's website, which highlights the
need to have more information online so the DMV can be more user
friendly.
COMMISSIONER FISHER agreed 100 percent. He said that many
people gauge government by their experiences at the DMV so it
needs to be a customer friendly experience. He related his
understanding that prior administrations have tried to improve
service, and have been successful in moving a fair number of
functions online, thereby reducing queues and waiting times. He
offered to work to continue that effort.
CHAIR OLSON remarked that in many communities, such as in the
Kenai and Soldotna area, the DMV uses real time cameras so
people can view the lines to estimate potential wait time and
plan their visits accordingly.
4:11:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:11 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOA Overview HLC 01-28-15.pdf |
HL&C 1/28/2015 3:15:00 PM |
DCCED Overview |