Legislature(2001 - 2002)
11/13/2002 01:15 PM Senate BUD
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
November 13, 2002
1:15 P.M.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Dave Donley
Senator Randy Phillips
Representative Hugh Fate, Vice Chair
Representative John Harris
Representative Reggie Joule (teleconferenced)
Representative Ken Lancaster (teleconferenced)
Representative Eldon Mulder (teleconferenced)
Representative Bill Williams (teleconferenced)(alternate)
MEMBERS ABSENT
Senator Lyman Hoffman
Senator Jerry Ward
Senator Gary Wilken (alternate)
Representative John Davies
COMMITTEE CALENDAR
APPROVAL OF COMMITTEE MINUTES
rd
October 3, 2002
REVISED PROGRAMS (RPLs)
11-3-6599
25-3-6599
31-3-0002
41-3-9011
EXECUTIVE SESSION
AUDIT REPORTS
Release of Final Audits to Public
OTHER COMMITTEE BUSINESS
Contract Approval
WITNESS REGISTER
HEATHER BRAKES, Legislative Assistant to
Senator Gene Therriault
Alaska State Legislature
Capitol Building, Room 121
Juneau, Alaska 99801-1182
Telephone: (907) 465-6590
DAVID TEAL, Director
Legislative Finance Division
Alaska State Legislature
P.O. Box 113200
Juneau, Alaska 99811-3200
Telephone: (907) 465-3795
POSITION STATEMENT: Addressed the RPL
PAT DAVIDSON, Director
Legislative Audit Division
Alaska State Legislature
P.O. Box 113300
Juneau, Alaska 99811-3830
Telephone: (907) 465-3830
POSITION STATEMENT: Introduced the audit reports
KEVIN BROOKS, Director - Teleconferenced
Division of Administrative Services
Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99811-5526
Telephone: (907) 465-5999
POSITION STATEMENT: Introduced RPL #11-3-0561
NANCY SLAGLE, Director - Teleconferenced
Division of Administrative Services
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 9801-7898
Telephone: (907) 465-3911
POSITION STATEMENT: Introduced RPL #25-3-6599
FRANK RICHARDS, Chief -(Teleconferenced from Salt Lake City)
Division of Statewide Design & Engineering Services
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
Telephone: (907) 465-2960
POSITION STATEMENT: Testified on RPL #25-3-6599
KARLA SCHOFIELD, Deputy Director
Accounting - Legislative Administrative Services
Legislative Affairs Agency
State Capitol
Room 222 - Terry Miller Building
Juneau, Alaska 99801-1182
Telephone: (907) 465-3852
POSITION STATEMENT: Introduced RPL #31-3-0002
SUZANNE DI PIETRO
Judicial Education Coordinator
Alaska Court System
820 West 4 Avenue
Anchorage, Alaska 99501-2005
Telephone: (907) 264-0785
POSITION STATEMENT: Introduced RPL #41-3-9001
TAPE LBA 02-11, SIDE A
CHAIR GENE THERRIAULT called the Joint Committee on
Legislative Budget and Audit meeting to order at 1:15 P.M.
on November 13, 2002. Members present at the call to order
were Senators Therriault, Phillips and Donley, and
Representatives Fate and Harris. Members present on
teleconferenced line were Representatives Joule, Williams,
Mulder and Lancaster.
REVISED PROGRAM RECEIPT
RPL Number: 11-3-0561
Department of Fish and Game
Ice Seal Bio-Monitoring in the Bering Sea Region
$444,000 Federal Receipts - Operating Budget
VICE CHAIR FATE MOVED that the Committee approve RPL No. 11-
3-0561.
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, explained that the Department
of Fish and Game had been awarded additional grant funds
from the National Oceanic and Atmospheric Administration
(NOAA) for a new project, Ice Seal Bio-Monitoring in the
Bering Sea and for continued Stellar Sea Lion recovery
investigations. Senator Ted Stevens through the Department
of Commerce had earmarked funding for these grants for
Alaska.
Mr. Brooks continued, the major emphasis of the Ice Seal
project would be to establish a monitoring program, which
could assess the status and detect changes within the tropic
levels of the Bering and Chukchi Seas by monitoring health,
condition, prey items, and population indices of ice seals
that are harvested there. The emphasis of the sea lion
recovery project would be to evaluate the hypothesis that
endangered western stock of the stellar sea lions is
currently declining because of nutritional stress, which
heavily impacts the juvenile animals up to three year olds.
CHAIR THERRIAULT noted that all funds would be incoming
federal money and would require no State match and no future
State funding.
KEVIN BROOKS acknowledged that was correct.
There being NO OBJECTION, RPL #11-3-0561 was approved.
RPL Number: 25-3-6599
Department of Transportation & Public Facilities
Southcentral Flood & Interior Earthquake
Transportation Repairs
$35,000,000 Federal Receipts - Capital
VICE CHAIR FATE MOVED that the Committee approve RPL No. 25-
3-6599.
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities, offered
to speak to the request.
CHAIR THERRIAULT noted that he had distributed photos
received from David Teal. He thought that the dollar amount
requested seemed high.
NANCY SLAGLE explained that the amount represents what the
anticipated total need might be. Since the RPL has been
submitted, the Department received a Presidential
Declaration indicating disasters from the flood and
earthquake.
The Department is still undertaking assessments, attempting
to gather related information. Some current estimates are
indicating that the permanent repair could go as high as $48
million dollars just for the road. The Department is not
seeking the full authority, as it will not be needed at this
time. She commented that the Department could come forward
with a supplemental budget or funding through the Capital
Budget. The Department does not know how much funding will
be covered by the Federal Emergency Management Agency (FEMA)
and/or the Federal Highway Commission. Another uncertainty
is whether a general fund match requirement would be needed.
Ms. Slagle continued, the emergency money that was spent
within the first 180 days after the event was fully federal
funds with no State match required. However, beyond that
amount, the State could move into a general fund match
requirement. The proposed numbers are estimates at this
time. There now is a need to deal with the emergency
repairs. The immediate need is around $10 - $12 million
dollars for temporary repairs. She reiterated that
additional dollars would be needed for the more permanent
repairs.
CHAIR THERRIAULT questioned if reference to Federal highway
money would come from the State's regular Federal highway
allocation.
NANCY SLAGLE replied that it would probably be a combination
of Federal highway and emergency money. She added that the
Federal government is trying to move more funding into the
emergency pot for Alaska during this emergency time.
In response to concerns voiced by Chair Therriault, Ms.
Slagle explained that from the emergency funding, there
would need to be no State match. Beyond the emergency
funding, the regular State match could be required.
VICE CHAIR FATE questioned how the amount of $35 million
dollars had been determined.
NANCY SLAGLE explained that the Department had provided
assessments. She noted that the statewide engineer, Frank
Richards, was available via teleconference to answer
questions regarding that concern. The $10 million dollar
request for the flood is accurate number. The $25 million
dollar estimate for the earthquake is based on information
gathered at the time of the quake. The Department is still
gathering information. With the after-shocks, the situation
has been aggravated, causing cracks in those areas that
temporary repairs had already been made.
FRANK RICHARDS, (Teleconferenced), Division of Statewide
Design & Engineering Services, Department of Transportation
and Public Facilities, explained the earthquake specifics.
The Department has assigned teams to address concerns from
the earthquake. At present time, the Department has
provided their best estimate for restoration of damages. He
reiterated that there continues to be damages with the
after-shocks and the replacement of bridges.
SENATOR PHILLIPS asked if the sixteen-mile 'shut off' would
continue into the spring. He questioned how the traveling
public would be moving through that.
FRANK RICHARDS responded that it was the Department's intent
to get the road restored for traffic immediately and use the
pilot car operations at night. That action will allow the
contractor to do the work at night, and would then not be a
full-time operation, allowing two-way traffic on the gravel
road.
CHAIR THERRIAULT asked if asphalt would be placed on any of
the surfaces.
FRANK RICHARDS explained that at this time, the Department
does not have an asphalt plan mobilized. With temperatures
below freezing, it would be extremely difficult to place a
good product.
There being NO OBJECTION to the motion to adopt RPL #25-3-
6599, the RPL was approved.
RPL Number: 31-3-0002
Legislative Affairs Council
Legislative Council
2002 Russian Civic Hosting Program
$6,130 Federal Funds
VICE CHAIR FATE MOVED that the Committee approve RPL No. 31-
3-0002.
KARLA SCHOFIELD, Deputy Director, Accounting, Legislative
Administrative Services, Legislative Affairs Agency,
commented that the Legislature is requesting authority to
receive and expend an additional $6,130 dollars in federal
receipts from the Center for Russian Leadership Development,
a Library of Congress Program for the Center's 2002 Civic
Hosting Program.
The Legislative Budget & Audit Committee (LBA) approved RPL
#31-3-0001 in the amount of $83,281 dollars at the August
meeting for a local hosting of up to 20 Russian participants
and facilitators for programs on the theme of Federalism.
The program coincided with the Alaskan primary and November
elections. Costs include the provision of cultural
activities, translation of program materials, professional
interpretation for issue oriented program activities, air
and ground transportation, hotel, per diem and other
miscellaneous costs.
Ms. Schofield continued, a portion of the additional money
would be used to provide interpreting and translating
services. The remainder would be used for a trip to
Washington D.C. at the invitation of the Center, for Ronda
Tompson and Dan Berkshire. They would be attending the
November orientation for delegates.
CHAIR THERRIAULT inquired if a supplemental request had been
made for such a small amount.
MS. SCHOFIELD replied that the costs had run over the
anticipated amount and after that the invitation was made to
Mr. Tompson and Mr. Berkshire. The invitation costs were
not part of the original request.
CHAIR THERRIAULT asked the total amount over the estimates.
MS. SCHOFIELD replied those costs amounted to $4,200 dollars
with other minor adjustments. A spreadsheet for the budget
is available. The Federal government will be providing the
extra funding. The Agency needs the support of the
Legislative Budget & Audit (LBA) Committee to receive and
expend the $6,130 dollars.
CHAIR THERRIAULT asked members if there was an objection.
SENATOR PHILLIPS OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Senators Donley & Therriault
Representatives Harris, Joule, Lancaster,
Williams, Fate
OPPOSED: Senator Phillips
Senators Hoffman, Ward and Wilken and Representatives Mulder
and Davies were not present for the vote.
The MOTION PASSED (7-1).
DAVID TEAL, Director, Legislative Finance Division, asked
about the spreadsheet. [Testimony inaudible].
KARLA SCHOFIELD pointed out that a couple different items
had been adjusted, changing the original supplemental
amount.
VICE CHAIR FATE repeated the MOTION that the Committee
approve RPL No. 31-3-0002. There being NO further
OBJECTION, the RPL was adopted.
RPL Number: 41-3-9011
Alaska Court System
Trial Courts
Improvements for Handling Domestic Violence Related Cases
$184,500 Federal Funds
VICE CHAIR FATE MOVED that the Committee approve RPL No. 41-
3-9011.
SUZANNE DI PIETRO, Judicial Education Coordinator, Alaska
Court System, commented that the Alaska Court System had
been awarded a federal grant from the U.S. Department of
Justice totaling $440,886 dollars for a two-year project to
improve the way the Anchorage trial courts handle domestic
violence-related cases. The court's request for $184,500 of
the total funding would be used to cover FY 2003.
SENATOR PHILLIPS questioned if there would need to be a
State general fund dollar commitment in the future or an
increase of State employees to cover the work.
SUZANNE DI PIETRO advised that was not the intent. The
grant provides for the Court System to hire an additional
employee for the Domestic Violence facilitator position.
That position would be terminated at the end of the grant
cycle.
There being NO OBJECTION to the motion to adopt RPL #41-3-
9011, the RPL was approved.
EXECUTIVE SESSION
VICE CHAIR FATE made a motion, in accordance with Title 24
and 44, to MOVE into Executive Session for the purpose of
discussing confidential items and personnel matters under
Uniform Rule No. 22 and for the purposes of discussing
confidential audit reports under Alaska Statutes 24.20.301.
There being NO OBJECTION, the Committee went into Executive
Session at 1:42 P.M.
CHAIR THERRIAULT requested that David Teal, Director,
Legislative Finance Division, the Legislative Finance Staff,
Pat Davidson, Legislative Auditor, her staff and LBA
Committee Staff, Heather Brakes be present for the Executive
Session.
The Committee resumed Open Session at 2:15 P.M.
AUDIT REPORTS
VICE CHAIR FATE MOVED to release the final audit report as
public:
· DOTPF/S.E. Region Selected Issues
There being NO OBJECTION, the audit was released for public
response.
VICE CHAIR FATE MOVED to release the following preliminary
audits to the agencies for response:
· DCED/Board of Marine Pilots
· DEC/Board of Storage Tank Assistance
There being NO OBJECTION, the preliminary audit reports were
released for agency response.
OTHER COMMITTEE BUSINESS
Division of Audit Contract with Gross & Burke
VICE CHAIR FATE MOVED that the Committee approve the
Contract by the Division of Legislative Audit.
PAT DAVIDSON, Director, Legislative Audit Division,
explained that she was requesting approval from the LBA
Committee for a professional services contract amendment,
which exceeds the original $25,000 dollars. Specifically,
it is an amendment to a legal service contract with the law
firm of Gross & Burke for an amount not to exceed $50,000
dollars. The contract is necessary to provide on-going
legal defense for the Division of Legislative Audit in Case
No. 3AN-01-13079Ci, Robert Hammond v. State of Alaska, David
R. Eberle et al. The initial contract was signed with the
law firm in April 2002 for an amount not to exceed $25,000
dollars. The contract needs to be amended to extend the
completion date as well as increase the total contract
amount. Since the contract amendment would exceed $25,000
dollars, legislative procurement requires committee
approval. She added that there are sufficient funds in the
Division's budget to fund the contract.
SENATOR DONLEY entertained that Representative Berkowitz
would be curious why that type of case would exceed $25,000
dollars. He indicated that the case sounded rather 'simple'
for such a large fee.
PAT DAVIDSON interjected that the high cost was partially
attributed to the fact that the individual involved does not
have "real" money tied up in the case. He is making motions
that must be responded to. There has needed to be research
provided regarding why the Legislative Audit Division and
their reports fell into certain areas of concern.
Ms. Davidson believed that the case was drawing to a close.
She requested the Committee's approval for the amount needed
to close the case. She did not believe that the case would
cost $50,000 dollars but at present time, it is nearing the
$25,000 dollar mark. Ms. Davidson wanted to guarantee that
the State could continue to defend the Division.
Ms. Davidson added that there is a length of time for an
appeal for the litigant to repute or file a motion contrary
to the State's.
[tape malfunction - inaudible discussion].
SENATOR DONLEY asked why the State did not use internal
council for the case.
PAT DAVIDSON explained that at the time of the original
response, it was during the Legislative session and the
Department of Law had also been named as a litigant. The
assistant attorney general recommended that the Division of
Legislative Audit find their own counsel. Ms. Davidson
added that she had also contacted the office of Tamara Cook,
Legislative Legal. They could not handle the claim and
recommended the law office of Gross & Burke.
SENATOR DONLEY asked what would happen with any of the left
over funding.
PAT DAVIDSON replied that any remaining funds would pass
over. She requested that Gross & Burke speak with Tam Cook
and then use her office for as much research as possible.
SENATOR PHILLIPS inquired since the litigant was
representing himself, why the need for such high legal power
from the State.
[inaudible discussion followed].
SENATOR DONLEY pointed out that the $25,000 dollar mark had
not yet been reached. He recommended that the requested
amount be changed to $35,000.
PAT DAVIDSON agreed that the point was well taken; however,
the approval of entering into a contract with the LBA
Committee does not mirror the current contract. She pointed
out that discussion had been elaborated upon in the memo she
wrote to Committee members.
VICE CHAIR FATE MOVED that the Committee approve the
contract as requested by the Division of Legislative Audit.
SENATOR DONLEY MOVED to AMEND the MOTION and limit the
authorization to $35,000 dollars.
CHAIR THERRIAULT agreed that the smaller dollar amount might
be workable. He suggested that then the Committee could
reconsider the request at a future date. He asked if there
were objections to changing the amount to $35,000 dollars.
SENATOR PHILLIPS OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Senators Donley & Therriault
Representatives Harris, Joule, Lancaster,
Mulder, Williams, Fate
OPPOSED: Senator Phillips
Senator Hoffman, Ward and Wilken and Representative Davies
were not present for the vote.
The MOTION PASSED (8-1).
There being NO further OBJECTION, the amended RPL not
exceeding $35,000 dollars, was adopted.
Letter to Commissioner Jay Livey, Department of Health and
Social Services
PAT DAVIDSON noted that she had distributed the first draft
of a letter to the Commissioner of the Department of Health
and Social Services. At the last LBA Committee meeting,
Representative Fate had shared his concerns regarding the
federal review of the Division of Family and Youth Services
(DFYS) and the medical condition of Alaska's children.
Ms. Davidson explained that the draft letter was written to
current Commissioner Livey, asking that he or his successor
appear before the LBA Committee at the end of next session
to review with the Committee, specifically, the procedures
that have been put in place and the degree to which the
procedures are being complied with.
Ms. Davidson explained that the LBA Committee has shown
particular interest in DFYS and wanted to be kept abreast of
any changes.
CHAIR THERRIAULT asked when the expected date for that
meeting would be.
PAT DAVIDSON reminded members that the proposed letter was
in "draft" form. A date has not been included but now a
consideration would be May 2003.
VICE CHAIR FATE noted that he would appreciate being placed
as an "alternate" on the new LBA Committee and that he would
like to see a date listed in the letter.
Cost Study
CHAIR THERRIAULT briefed the Committee on the School Cost-
Study. Members of that Committee consist of Eddy Jeans,
Manger, School Finance and Facilities Section, Department of
Education and Early Development, David Teal, Director,
Legislative Finance Division, Pat Davidson, Director,
Legislative Audit Division, Representative Fate & Senator
Therriault.
There have been questions reqarding the manner in which data
was categorized and stored. At this point, the original
th
contract was due by December 15. He commented that it
could be delayed for a short time to take questions
regarding the surveys. [inaudible].
Veteran's Home Study
HEATHER BRAKES, Legislative Assistant to Senator Gene
Therriault & the Legislative Budget & Audit Committee,
stated that the final legal review had been completed. At
the August meeting, the Committee decided to look at a
number of issues regarding the study and if a Veteran's home
would be feasible. Under current law, the Committee cannot
expend any general funds, therefore, no combination of
veteran's homes can happen.
Ms. Brakes added that the Committee decided that the
contract should look at:
· The current and future demand and needs of the
veterans in Alaska;
· How those demands could be met;
· The feasibility of long term health care;
· The projected occupancy trends; and
· The effect of long-term health care facilities and
how they might affect other health care facilities
in the State.
Ms. Brakes stated that at the Chairman's direction, a copy
of the Requests for Proposals (RPF's) was provided to the
veteran's service organizations for review. They commented
and those comments were forwarded to each of the Committee
offices. Basic concerns were voiced about what impacts a
veteran's home would have on current existing facilities.
CHAIR THERRIAULT [inaudible]. Spoke to the impacts on the
small hospital operations.
TAPE CHANGE LBA 02-11, SIDE B
CHAIR THERRIAULT [testimony inaudible].
ADJOURNMENT
CHAIR THERRIAULT adjourned the Legislative Budget and Audit
Committee at 3:15 P.M.
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