Legislature(2001 - 2002)
12/19/2002 01:15 PM Senate BUD
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE
LEGISLATIVE BUDGET AND AUDIT
December 19, 2002
1:15 P.M.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Dave Donley
Senator Lyman Hoffman
Senator Randy Phillips
Senator Gary Wilken (teleconferenced) (alternate)
Representative Reggie Joule (teleconferenced)
Representative Ken Lancaster (teleconferenced)
Representative Bill Williams (teleconferenced)(alternate)
Representative John Davies (alternate)
MEMBERS ABSENT
Representative Hugh Fate, Vice Chair
Representative John Harris
Representative Eldon Mulder
Senator Jerry Ward
COMMITTEE CALENDAR
OTHER COMMITTEE BUSINESS
REVISED PROGRAMS (RPLs)
RPL 02-03-0066
02-03-0067
06-03-0265
08-03-0134 (CIP)
08-03-0135
10-03-4043
11-03-0620 (CIP)
25-03-6601 (CIP)
25-03-6602 (CIP)
EXECUTIVE SESSION
AUDIT REPORTS
Release of Preliminary Audits for Agency Response
Release of Final Audits to Public
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
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
TED POPELY, Majority Counsel
Majority Legal Office
State Capitol, Room 116
Juneau, Alaska 99801
Telephone: (907) 465-3439
POSITION STATEMENT: Spoke on the Amicus Briefing
JEFF JEFFERSON, Attorney
Nordstrom, Steele & Jefferson
215 Fidalgo Avenue, Suite #201
Kenai, Alaska 99611
Telephone: (907) 283-9187
POSITION STATEMENT: Briefing on the Amicus Briefing
DAN SPENCER, Director (teleconferenced)
Division of Administrative Services
Department of Administration
P.O. Box 110208
Juneau, Alaska 99811-0208
Telephone: (907) 465-5655
POSITION STATEMENT: Introduced RPL #02-3-0066 and RPL #02-
3-0067
STEVE ASHMAN, Director
Division of Senior Services
Department of Administration
3601 C Street #310
Anchorage, Alaska 99503-5984
Telephone: (907) 269-3666
POSITION STATEMENT: Spoke to RPL #02-3-0067
JANET CLARKE, Director (teleconferenced)
Division of Administrative Services
Department of Health and Social Services
P.O. Box 110650
Juneau, Alaska 99811-0650
Telephone: (907) 465-1630
POSITION STATEMENT: Introduced RPL #06-03-0265
GREG WOLF, Director
Division of International Trade & Market Development
Department of Community & Economic Development
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550 West 7 Avenue, #1770
Anchorage, Alaska 99501
Telephone: (907) 269-8115
POSITION STATEMENT: Introduced RPL #08-03-0134
TOM LAWSON, Director
Division of Administrative Services
Department of Commerce & Economic Development
P.O. Box 110803
Juneau, Alaska 99811-0803
Telephone: (907) 465-2505
POSITION STATEMENT: Spoke to RPL #08-03-0134
NICO BUS, Administrative Services Manager (teleconferenced)
Division of Support Services
Department of Natural Resources
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400 Willoughby Avenue, 5 Floor
Juneau, Alaska 99801-1724
Telephone: (907) 465- 2406
POSITION STATEMENT: Introduced RPL #10-03-4043
STEVE GILBERTSON, Lands & Resources Manager
City and Borough of Juneau (CBJ) (teleconferenced)
155 South Seward Street
Juneau, Alaska 99801
Telephone: (907) 586-5252
POSITION STATEMENT: Spoke to RPL #10-03-4043
KEVIN BROOKS, Director (teleconferenced)
Division of Administrative Services
Department of Fish and Game
P.O.Box 25526
Juneau, Alaska 98111-5526
Telephone: (907) 465-5999
POSITION STATEMENT: Introduced RPL #11-03-0620 (CIP)
NANCY SLAGLE, Director (teleconferenced)
Division of Administrative Services
Department of Transportation and Public Facilities
3132 Channel Drive
Juneau, Alaska 99801-7898
Telephone: (907) 465-3911
POSITION STATEMENT: Introduced RPL #25-03-6601 (CIP)
JAMES ARMSTRONG, Coordinator
Anchorage Metropolitan Area Transportation Study (AMATS)
P.O. Box 196650
Anchorage, Alaska 99501
Telephone: (907) 343-7996
POSITION STATEMENT: Spoke to RPL #25-03-6601 (CIP) &
#25-03-6602 (CIP)
CINDY HEIL, Section Manager
Division of Air & Quality Control
Department of Environmental Conservation
555 Cordova Avenue
Anchorage, Alaska 99501
Telephone: (907) 269-7579
POSITION STATEMENT: Spoke to RPL #25-03-6602 (CIP)
TAPE LBA 02-12, SIDE A
CHAIR GENE THERRIAULT called the Joint Committee on
Legislative Budget and Audit meeting to order at 1:15 P.M.
on December 19, 2002. Members present at the call to order
were Senators Therriault, Donley, Hoffman, and Phillips.
Members present on teleconferenced line were Senator Wilken
and Representatives Lancaster, Williams, and Davies.
OTHER COMMITTEE BUSINESS
Amicus Briefing - Audit Request
CHAIR THERRIAULT stated that the discussion on the briefing
would be taken out of order. He notified members that there
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is a pending Court deadline of December 20, 2002.
TED POPELY, Majority Counsel, Majority Legal Office, stated
that the matter before the Committee was a potential
participation as an amicus by the Legislative Budget and
Audit (LBA) Committee. He pointed out that LBA was one of
two authorized committees by statute to litigate concerns of
this sort in a matter that is presently pending before the
Superior Court in Anchorage. The case is called Grimm and
McGahan vs. Wagoner and the State of Alaska.
The concern originates around a filed election challenge.
The plaintiffs have challenged under AS 39.50.060, failures
to disclose financial matters by Senator-elect Wagoner.
Interpretation of the statute could result in his not being
seated in office.
Mr. Popely continued, the reason the LBA Committee has been
requested to participate in the matter results from the
proposed interpretation and the strict reading of the
statute. He emphasized the restrictive reading of the
statute. If successful, it would result in a mandatory
disqualification of Senator Wagoner from office.
The State of Alaska believes that the interpretation is
overly restrictive, as does the defending party. Therefore,
an Amicus Curiae (Friend of the Court brief) has been
requested.
Mr. Popely stipulated that he thought that there would be a
motion asking that LBA participate as an amicus in the case,
placing that view on record.
CHAIR THERRIAULT noted that he had recommended, Mr. Popely
to make contact with outside legal counsel regarding this
matter. Legislative Council is the other body that has
statutory authority to enter into this type of case.
Currently, the Chair of that Committee is out of State.
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Given the pending December 20 deadline, the LBA Committee
must consider the matter.
TED POPELY interjected that he had requested the national
law firm Keesal, Young & Logan, to begin to research and
prepare an amicus brief, pending a vote by the LBA
Committee. That firm has agreed to take on the case, with
the word that, if the vote is successful, that firm would
then invoice the Committee for their work completed.
CHAIR THERRIAULT asked for an estimate on the proposed work.
He understood that the expense would result from the
preparation of the briefing.
TED POPELY explained that the general practice for an amicus
filing of this type would simply be to file the brief, which
should be relatively short in length. The brief would
require some research, billed at an hourly rate of
$200/hour. The briefing would be done at the Superior Court
level, the Trial Court level and at the Supreme Court level
if the matter is appealed. He predicted that the cost would
be less than $20,000 dollars.
SENATOR HOFFMAN inquired if there was any written
documentation indicating that the State believes the opinion
is overly restrictive.
TED POPELY replied that he had had extensive conversations
with counsel for Mr. Wagoner and that they had conversations
with the State of Alaska. He noted that Mr. Wagoner's
counsel, Jeff Jefferson, was on line. Mr. Popely understood
that the State intended to file its own brief. That action
would indicate that it is overly restrictive.
SENATOR HOFFMAN asked which portion of the disclosure, did
the other party claim to be too restrictive.
TED POPELY responded that the facts of this case lend to an
interpretation of these considerations. He understood that
the specifics of the case involved failure to disclose
membership in a condominium association out of State. That
type of involvement does not involve serious financial
income-producing matters. It does not matter whether the
complaint is material or nonmaterial, but rather the long-
term effect. The Court has no discretion as to whether or
not to accept or reject the contention. Under current law,
if there was a nondisclosure of any kind, it could result in
disqualification from office. He advised that the number of
people currently holding any office that would be subject to
this removal by such a complaint would be staggering.
CHAIR THERRIAULT responded to Senator Hoffman. He noted
that up to this point, the Alaska Public Officers Commission
(APOC) has interpreted the law and allowed people to make
amendments to their filings and then fined them, depending
on the degree of severity. The allegation in this
particular case is that there is no room for interpretation.
SENATOR HOFFMAN asked how this would affect cases currently
pending.
TED POPELY explained that the effect would be to have the
Court interpret the law. That is the role of the Court.
Participating in the litigation would change nothing. The
Court is being requested to give an appropriate
interpretation of existing law. Mr. Popely acknowledged
that there are a variety of standards that will be argued by
individual parties during this case. There are a number of
options with respect to the willfulness of the
nondisclosure. The issue at stake is regarding whether it
should be a strict liability standard.
CHAIR THERRIAULT interjected that legislation could be
introduced next legislative session to address these
concerns; however, the deadline for action on this specific
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case is in one day, December 20
JEFF JEFFERSON, Attorney, Nordstrom, Steele & Jefferson,
Kenai, clarified that there are two issues involved in the
present litigation, which have potential to not be cured
through statutory change. One involves a question of
authority as to who makes the decision regarding the seating
of a member in the Alaska Legislature. The plaintiffs in
this claim, take the position that the statute in question,
AS 39.50.060(b), is available to be used by private citizens
at any time, utilizing the Court system to impose a
mandatory disqualification and removal from office of any
official or elected official who has been found to have
failed to make a required disclosure, without regard as to
whether it is material or intentional.
Mr. Jefferson discussed that the statute is available to
citizens up and through the time of certification. At the
moment that certification occurs, the Legislature has
another statute on the books, which does not result from a
referendum, which defines a ten-day period and particular
criteria upon which a challenge to the election could occur.
If a disclosure is identified after certification, it would
be up to the Legislative body to act, as they have the
constitutional authority to determine the qualifications of
their members. He stressed that this is not an APOC issue,
but rather a legislative separation of powers concern.
Mr. Jefferson noted that as counsel for Mr. Wagoner, he
advocates that the will of the people in this case be
respected, and that to the degree that there is ambiguity in
the statute, suggests that an unintentional, nonmaterial
representation, such as failing to identify a disclosure
should not result in a mandatory removal from office of any
public official.
He stated rather, they advocate that the Courts should have
the ability to look at both the violation as well as the
materiality of the violation when fashioning a remedy of
removal from office. That action would be consistent with
APOC regulations. He added that after the motives are
decided, that the matter will be taken up on a petition to
the Alaska Supreme Court.
Mr. Jefferson noted that an unfavorable interpretation of
the statute would have a number of immediate effects. The
personnel at APOC advise that there could be up to fifteen
current legislators who have in fact missed the 30-day grace
period and did not make the required disclosures within the
time required by the statute. Those officials would all be
subject to removal from office.
Additionally, there is concern is that this interpretation
could result in an immediate "gold rush" to the APOC office
and that every non-successful candidate would start an
examination and investigation into the financial disclosure
of the prevailing party.
SENATOR PHILLIPS asked what had been left out of Mr.
Wagoner's disclosure.
JEFF JEFFERSON explained that the alleged:
· Disclosure on his ownership of a condominium in
Palm Desert, California; and
· Listed a rental property in Kenai as a source of
income but listed it under Dorothy and Tom Wagoner
rather than the business license name of Wagoner
Enterprises.
SENATOR PHILLIPS asked how the plaintiff found out about
those concerns.
JEFF JEFFERSON stated that two residents asserted their
complaint as public interest litigants. They are promoters
and supporters of Mr. Wagoner's opponent.
SENATOR HOFFMAN recalled that Mr. Jefferson had mentioned
that the ruling could affect up to ten candidates. He asked
how that number had been determined. He asked if there was
a list available regarding those legislators.
JEFF JEFFERSON responded that the APOC personnel provided
that number.
SENATOR HOFFMAN questioned whom was being deposed when that
information came out.
JEFF JEFFERSON responded that Nancy Freeman, the Legislative
Financial disclosure law administrator, provided the
information. She is the candidate's administrator and it
was her testimony, stating that the number would include
judges, board and commission members and legislators.
SENATOR DONLEY asked Mr. Popely how the request should be
handled at this time.
TED POPELY explained that a Committee member needs to move
that the Committee retain Keesal, Young & Logan, to
research, draft, and file an amicus brief in support of the
interpretation given by Jeff Jefferson, Counsel for Mr.
Wagoner.
SENATOR DONLEY thought it was not proper to write a
memorandum in support of litigants without knowing exactly
what the litigants were going to argue. Instead, he
recommended that the Committee be very specific about the
position that they are seeking to advocate, rather than rely
on a third party to develop it.
Senator Donley stated that there is a:
· Separation of powers question; and
· Reasonable interpretation of the existing statutes
without getting into the facts of the case.
CHAIR THERRIAULT agreed with Senator Donley, adding that the
Legislature would be the only body addressing the separation
of powers issue.
TED POPELY acknowledged that was correct; however, he
pointed out the difficultly with that, depending on who
becomes the project director, the law would need to be
applied to the facts or there would be no argument. He
observed that he was confused on how to address this.
CHAIR THERRIAULT noted that if the concern was the
plaintiffs' contention of the meaning of the law, there
remain issues of law and of fact.
TED POPELY understood. He stated that it would strengthen
the Committee's argument if they refer to facts that are
found to be egregious. He acknowledged that this is a
political issue that the Legislature does not want to "tread
on" because there are candidates involved.
SENATOR DONLEY agreed.
TED POPELY understood the sensitivity to the issue. He
thought that there could be a way to direct the project in a
manner that is sensitive while also addressing the law, the
separation of powers, and Legislative interest with a legal
interpretation of the statute without getting involved with
the facts regarding the Committee's concern. He thought
that it could be drafted in a manner to avoid any appearance
of political or electoral bias.
He suggested that if the Committee voted for this, he would
work with them to direct an effort to narrow it. Given
present time constraints, there is no time to create a
draft, circulate it, have another Committee hearing and
decide whether to file.
SENATOR HOFFMAN asked if action could be delayed until it
reaches the Supreme Court level.
TED POPELY replied that was an option; however, a stronger
position would be at the appellate level rather than the
trial level. The greatest chance of achieving the goal
would be to appeal now.
SENATOR HOFFMAN suggested that the stakes are very "high"
for this case.
CHAIR THERRIAULT asked how Senator Donley felt regarding Mr.
Popely ability to represent appropriate "sensitivity"
regarding the Committee's concerns.
SENATOR DONLEY replied that Mr. Popely is a capable attorney
and that he would be capable of doing what was appropriate.
He requested something in writing to layout concerns
regarding the separation of powers.
SENATOR PHILLIPS asked about the maximum proposed charges in
the amount of $20,000 dollars and if that amount would take
the State all the way to the Supreme Court.
TED POPELY replied it could. He added that the body could
ask the law office to cap their fees in any way directed.
He added that he had asked the firm if they could achieve
the State goals within those financial constraints, and they
indicated that they could while still doing an adequate job.
SENATOR PHILLIPS MOVED that the law firm of Keesal, Young &
Logan begin research, writing, and filing an amicus brief on
behalf of the Legislative Budget and Audit Committee in the
matter of Grimm vs. State, Case Number 3AN-02-12950 Civil,
and to provide such further advice as the project directors
deem necessary. The firm would prepare and file an amicus
brief at the Trial Court level, and again if the matter is
further appealed to the Alaska Supreme Court. He added that
Ted Popely would be the majority counsel and serve as
project director, and that the project should not exceed
$20,000 dollars.
CHAIR THERRIAULT pointed out that the way in which the
motion was made, the $20,000 dollars would be the total
expenditure.
SENATOR DONLEY indicated that he felt "uneasy" with the
motion. Senator Donley OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Senators Therriault, Phillips, Wilken
Representatives Lancaster, Williams, Davies
OPPOSED: Senators Donley, Hoffman
Senator Ward and Representatives Joule, Fate, Harris, and
Mulder were not present for the vote.
The MOTION PASSED (6-2).
CHAIR THERRIAULT requested that Mr. Popely speak with
Senator Donley and attempt to incorporate his concerns.
TED POPELY agreed he would.
REVISED PROGRAM RECEIPT
RPL Number: 02-03-0066
Department of Administration
Division of General Services
$65.0 Federal Surplus Property Revolving Fund
SENATOR PHILLIPS MOVED that the Committee approve RPL #02-
03-0066.
TAPE CHANGE LBA 02-12, SIDE B
DAN SPENCER, Director, Division of Administrative Services,
Department of Administration, advised that the Department
was requesting $65.0 dollars of Surplus Revolving Funds
authorization to be used for increased program participant
compliance reviews, to replace obsolete and problematic
inventory and tracking software. During FY 2003, a federal
audit team reviewed the State's federal surplus property
program. During the exit interview, the auditors indicated
that increased program participant compliance audits as well
as improved tracking and inventory control are critical to
fulfill the obligations under federal regulations. The
improvements would allow the program to better serve
program's customers.
There being NO OBJECTION, RPL 02-03-0066 was adopted.
RPL Number: 02-03-0067
Department of Administration
Division of Senior Services
$625,000 Federal Receipt Authority - Operating
SENATOR PHILLIPS MOVED that the Committee approve RPL #02-3-
0067.
DAN SPENCER stated that the request was for grant awards to
non-profit, tribal, and governmental entities that benefit
and support senior programs statewide for nutrition,
transportation, support and family caregiver services.
Increased Federal Fiscal Year (FFY) 2002 and anticipated FFY
03 funding from the U.S. Department of Health & Human
Services, Administration on Aging, Older Americans Act (OAA)
and the U.S. Department of Agriculture (USDA) is available
and would be used for the grants.
CHAIR THERRIAULT pointed out that in the support
documentation, the Department has indicated that there will
be no requirement for adjustment in FY04.
DAN SPENCER acknowledged that was correct, however, the
Department will probably need additional federal receipt
authority and that amount has not yet been determined.
SENATOR HOFFMAN asked how much the match would be.
DAN SPENCER responded that normally there is a 15% match
requirement. The Department has sufficient funds to cover
that.
SENATOR DONLEY asked who had already received the funds.
DAN SPENCER advised that information could be provided to
Committee members; however, he did not have it on hand,
adding that it is "quite a list". There is a lot of money
in grants available for a variety of organizations.
SENATOR DONLEY asked how the list had been determined.
STEVE ASHMAN, Director, Division of Senior Services,
Department of Administration, responded that the funds were
allocated under the Alaska Commission on Aging and two are
existing grantees. Some of the funds were used to
supplement existing programs to avoid weight list for meal
service and transportation. Some of the other funds were
used to expand services on a temporary basis. The total
budget is about $6.7 million dollars and is administered to
the grantees through a competitive federal program bidding
process. The allocation process is determined by
geographical locations.
In response to further questioning by Senator Donley, Mr.
Ashman explained that the formula amount had been
distributed except under emergency circumstances. The
Commission does have latitude to move funds out of other
areas for emergency situations. There must be a federal
plan on how to allocate those funds. If there is more than
one group, the Division goes through the "Request for
Proposal Process".
CHAIR THERRIAULT asked if North Star Council on Aging was
one of the grantees.
STEVE ASHMAN replied that they were one of the grantees.
SENATOR DONLEY commented that he would vote to approve the
request because of Mr. Ashman's reputation of "doing a good
job". He was curious how the grants are administered, if
they are administered fairly, and the percentage taken off
the top to cover administrative costs.
SENATOR HOFFMAN requested a list of the grantees.
STEVE ASHMAN noted that he did have a list, however, he was
not sure if it was all encompassing. There are eighty-six
grantees throughout the State of Alaska. Forty-one of those
are under the nutrition transportation and support services
and touch virtually every major community in the State.
There being NO OBJECTION, RPL 02-03-0067 was adopted.
RPL Number: 06-03-0265
Department of Health & Social Services
Division of Family & Youth Services
$1,050,000 Federal - Operating
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, explained that the
purpose of the Title IV-E Pass-Through project was to assist
in obtaining federal reimbursement for Indian child welfare.
The project's principle objective is to increase the
capacity of organizations to provide case management
services to Alaska Native children who are in foster care or
at risk of foster care placement. The Department requests
additional expenditure authority from federal receipts from
the Department of Health and Human Services to maintain
continuity of financial resources for tribal organizations.
SENATOR PHILLIPS asked if future general funds were
expected.
JANET CLARKE explained that what occurs in the Title IV
match requirements is that the organization themselves must
provide the match. That is calculated on a quarterly basis.
State general fund dollars are not involved in this pass-
through program and that State general funds are not
expected.
SENATOR PHILLIPS MOVED that the Committee approve RPL #06-
03-0265.
There being NO OBJECTION, RPL #06-03-0265 was adopted.
RPL Number: 08-03-0134 (CIP)
Department of Community & Economic Development
Division of Community & Business Development
$744,907.00 Federal - (Capital)
SENATOR PHILLIPS MOVED that the Committee approve RPL #08-
03-0134 (CIP).
GREG WOLF, Director, Division of International Trade &
Market Development, Department of Community & Economic
Development, mentioned the State's goal of establishing
relations with the Russian Far East. That goal has been
successful; however, the long-term goal of establishing and
then expanding development and trade with Alaska continues.
Since 1997, the Department and the Division have assumed
coordination of the infrastructure projects, which tend to
involve multifaceted interests from Russian governmental and
private entities, Alaska's governmental entities and private
businesses, and the U.S. Federal government.
The U.S. government, through its U.S. Agency office, has
funded the infrastructure projects for International
Development (USAID) via a Federal grant to the Department
for continuation of the infrastructure projects within the
Sakhalin Region.
The projects include:
· Finance Development
· Education & Training
· Sakhalin Environmental Management
· Airport Operations & Management
SENATOR HOFFMAN asked what the time period would be.
GREG WOLF responded that the grant would be for two-years.
The timing of the grant is based on the federal fiscal year,
which comes to a close after the Legislative session ends.
He concluded that decisions were needed before the next
Legislative session begins in late January.
There being NO OBJECTION, RPL #08-03-0134 (CIP) was adopted.
RPL Number: 08-03-0135
Department of Community & Economic Development
Division of Community & Business Development
$50,000 Statutory Designated Program Receipts -
FY03 Operating Budget
SENATOR PHILLIPS MOVED that the Committee approve RPL #08-
03-0135.
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GREG WOLF noted that Alaska hosted the 7 annual West Coast-
Russian Far East Ad Hoc Working Group meeting in Anchorage
in mid-September. The conference, comprised of prominent
Alaskans active in the international arena, covered these
issues:
· Russian Far East business, trade, finance, energy,
natural resources & economic development;
· Alaska/U.S.-Russian Far East aviation, travel,
infrastructure & tourism;
· Education & cultural exchanges;
· Developing government & business partnerships;
· Finding practical ways to pursue cross-border
projects that bring measurable results to partners
on both sides of the political divide; and
· Enhancing regional Alaska/West Coast-Russian Far
East relations.
If the request is approved, it will allow DITMD to receive
the reimbursement from the Foundation for Russian American
Economic Cooperation (FRAEC), and pay the vendor for use of
the conference facilities. This is a bookkeeping issue.
CHAIR THERRIAULT pointed out that the fiscal analyst had
pointed out that when the RPL was submitted, invoices had
not been paid by the State. It could have been possible to
send the invoice to FRAEC for payment. The Department has
now paid the invoices and there is little alternative to the
proposed reimbursement process. Analysts indicated that
there is no technical problem with use of the SDPR funds for
that purpose.
TOM LAWSON, Director, Division of Administrative Services,
Department of Commerce & Economic Development, stated that
in terms of following the Administrative manual, once the
contract was entered into with the hotel, the only
appropriate process would be to seek authorization to bring
in the extra money. It would not have been appropriate,
after entering into the contract, to send the bill to FRAEC.
There being NO OBJECTION, RPL #08-03-0135 was adopted.
RPL Number: 10-03-4043
Department of Natural Resources
Parks & Recreation Access (2136)
$553,000 Federal/U.S. Fish & Wildlife Service - Operating
SENATOR PHILLIPS MOVED that the Committee approve RPL #10-
03-4043.
NICO BUS, Administrative Services Manager, Division of
Support Services, Department of Natural Resources, advised
that the Department was requesting to receive a National
Coastal Wetlands Conservation Grant from the U.S. Fish &
Wildlife Service (USF&WS), Department of Interior. Funding
for the project "will be passed through" to the City and
Borough of Juneau (CBJ) for the purchase of a parcel of
wetland acreage near Herbert River. The match would be
provided by CBJ, and it would be a one-time grant under a
program that allows federal disbursement of funds to
specific state agencies (not directly to local governments
or other entities).
CHAIR THERRIAULT stated that he had heard concern that there
was a "division within the community" regarding this
exchange. He asked if the request was a time-sensitive
issue.
STEVE GILBERTSON, Lands & Resources Manager, City and
Borough of Juneau, responded that the landowner had a
"sizeable" investment in the property and is anxious to get
some return from it. There is a permit to log the property
through the Department of Natural Resources, however that
would destroy the value of the land that CBJ is attempting
to protect. CBJ is trying to put the land acquisition
package together as soon as possible. It will still have to
go before the City Assembly and there will be a public
hearing. CBJ has received a lot of support for the project.
The grant application was made in the summer of 2002 and was
recently approved. There has been support from the State
Parks Advisory Committee, the City Parks Advisory Committee,
the Wetlands Review Board and other community groups. The
project fits well within the City's comprehensive plan.
SENATOR PHILLIPS asked what type work had been done on the
acreage by Channel Construction.
STEVE GILBERTSON responded that Channel Construction has
begun clearing a portion of the property in preparation for
a rock quarry. Additionally, they were looking at permits
to extract gravel from the property. Based on what the
owner intended to do, there has been community support to
protect the property because it is surrounded by so much
public land that is already used a lot. As part of the
transaction, Channel Construction is contemplating taking
gravel from the City's gravel pit, taking care of the City's
match.
CHAIR THERRIAULT asked the intended City and Borough
schedule for their meeting.
STEVE GILBERTSON responded that it was CBJ's intent to go to
th
the City Assembly by January 13, 2003 with the grant and
recommendations for the City's contribution.
CHAIR THERRIAULT reiterated that there has been some dissent
in the local community. He recommended that City Assembly
action should be taken before coming to the Legislature.
NICO BUS commented that the situation is a "Catch-22". The
City and Borough of Juneau cannot take any action until the
State has received authority to receive the grant. The
Borough will not be paid the money, as it is a reimbursement
grant. The money must be spent and then the State can
reimburse them. The Federal government cannot give this
money without Legislative authority. He emphasized that
coming before the LBA Committee is the first step in that
process.
CHAIR THERRIAULT asked if action could be taken "pending"
contingent action.
STEVE GILBERTSON replied that was possible, however, it
would depend on what time the State approval would come
through. The owner is anxious to have completion of the
land acquisition this winter.
SENATOR DONLEY MOVED that RPL #10-03-4043 be TABLED for
future consideration and a time determined by the Chair of
the Committee.
There being NO OBJECTION, RPL #10-03-4043 was TABLED.
RPL Number: 11-03-0620 (CIP)
Department of Fish and Game
Division of Wildlife Conservation
$50,000 Statutory Designated Program Receipts -
Operating Budget
SENATOR PHILLIPS MOVED that the Committee approve RPL #11-
03-0620 (CIP).
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, explained that the Department
has been advised that the City & Borough of Juneau (CBJ)
Ordinance 2002-18(AH) has appropriated $50 thousand dollars
to help fund the construction of the Juneau Hunter Education
Facility. Funds will be transferred from CBJ to the
Department.
CHAIR THERRIAULT asked if the $50 thousand dollars would add
the additional space to the building or just put the
foundation in.
KEVIN BROOKS replied that it would provide the footprint for
the archery course. It would not pay for the entire
facility. The funding would be part of the full contract.
The original amount with the addition of the $50 thousand
dollars would cover the entire expense.
SENATOR DONLEY noted that he had supported the range in
Fairbanks. He added that he was skeptical of the proposed
project, pointing out that there has been little support
from the Department for an indoor facility in Anchorage. He
pointed out that Anchorage has harsher winters than Juneau
does. He added that CBJ is contributing less than 10% of
the project cost. He reiterated his "concern" with the
proposed project.
SENATOR DONLEY OBJECTED to the approval of RPL #11-03-0620
(CIP). He MOVED to TABLE the consideration to a future time
when the Capital Budget was being discussed.
KEVIN BROOKS interjected that the indoor facility will
proceed. The requested money would only enhance the project
and would allow for the City and Borough of Juneau to
contribute some funds. There has already been much debate.
He listed the available facilities that currently exist in
Anchorage and Fairbanks. He reiterated that the facility in
Juneau is moving forward because the contract is currently
underway. It makes more sense to make the change at this
point in the building contract than to try and retrofit the
project.
SENATOR HOFFMAN pointed out the request authorizes the State
to receive the $50 thousand dollars that CBJ contributes.
He reminded members that the money would help to diversify
the facility. He recommended that it should be approved.
CHAIR THERRIAULT asked if the project was "too far down the
line" to be revisited.
KEVIN BROOKS replied that the project is currently under
construction.
SENATOR DONLEY maintained his opposition.
A roll call vote was taken on the motion.
IN FAVOR: Senators Hoffman, Wilken, Therriualt
Representatives Joule, Lancaster, Davies
OPPOSED: Senators Donley, Phillips
Senator Ward and Representatives Fate, Harris, Mulder and
Williams were not present for the vote.
The MOTION PASSED (6-2) and RPL 11-03-0620 (CIP) was
adopted.
RPL Number: 25-03-6601 (CIP)
Department of Transportation & Public Facilities
Central Region
$1,337,300 Federal Receipts - Capital
SENATOR PHILLIPS MOVED that the Committee approve RPL #25-
03-6601 (CIP).
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities, stated
that the request was for authority to receive and expend
federal funds related to an air quality project for the
Municipality of Anchorage - Anchorage Metropolitan Area
Transportation Solutions (AMATS) Program.
The request would allow expeditious implementation of the
recently completed Transit Route Restructure Study, which
showed that minor changes in the transit routes with some
limited additional service would increase transit rider-ship
in Anchorage. Anchorage is a serious non-attainment area
regarding air quality standards for carbon monoxide (CO).
Increased transit rider-ship is one strategy to improve
Anchorage's air quality. The citizens of the Municipality
of Anchorage would benefit from the new service, provided
through a Federal Highway Administration (FHWA) program to
address Congestion Mitigation and Air Quality (CMAQ)
concerns. The funds would be used to add bus drivers to
cover the expanded routes.
SENATOR HOFFMAN asked Anchorage's status on air quality
control.
JAMES ARMSTRONG, Coordinator, Anchorage Metropolitan Area
Transportation Solutions (AMATS) Program, responded that
Anchorage currently has a "serious, non-attainment". There
was one accidence last year. Part of the challenge is to
implement funded ideas to protect from future accidents. He
explained the process of measurements and scores when
providing for a maintenance plan.
SENATOR HOFFMAN asked where the match would come from.
JAMES ARMSTRONG explained that it comes from existing AMATS
money and that funds would need to be "shuffled".
There being NO OBJECTION, RPL #25-03-6601 (CIP) was adopted.
RPL Number: 25-03-6602 (CIP)
Department of Transportation & Public Facilities
Central Region
$454,900 Federal Receipts - Capital
SENATOR PHILLIPS MOVED that the Committee approve RPL #25-
03-6602 (CIP).
JAMES ARMSTRONG explained that the Department was requesting
authority to receive and expend federal funds related to an
air quality project for the Municipality of Anchorage -
Anchorage Metropolitan Area Transportation Solutions (AMATS)
Program.
The request would allow continued implementation of the
Engine Block Heater Program (EBHP) through the winter.
Anchorage is a serious non-attainment area for air quality
standards for carbon monoxide (CO). The Engine Block Heater
program provides low cost engine block heaters to Anchorage
drivers so they may plug in their cars during the cold
weather. Research shows that plugging in a car prior to a
morning start-up decreases the initial CO output. Air
quality in Anchorage is more degraded in certain
neighborhoods, especially those with no or low garage use.
The program would include free timers to automatically turn
on the block heater at the optimum time to allow a warm
engine start. The program has proven extremely popular with
Anchorage citizens.
SENATOR HOFFMAN asked if it was older model vehicles that
had a higher CO out-put.
JAMES ARMSTRONG responded that anyone could use the service
and that there would be no income requirements.
SENATOR DONLEY pointed out that the money could only be used
for projects that produce air quality.
SENATOR PHILLIPS asked if there was a guarantee of the
number of people who would be using this service.
JAMES ARMSTRONG explained that when a person signs up for
the program, they must agree to certain stipulations.
CINDY HEIL, Section Manager, Division of Air & Quality
Control, Department of Environmental Conservation, explained
when the Department uses Congestion Management/Air Quality
(CMAQ) monies, there must be a public/private partnership
agreement. A database will be developed. The party will be
locked into the program and would be contacted often during
the winter months.
SENATOR PHILLIPS noted he was not "thrilled" about the
program. He claimed that it was another "give a way"
program.
SENATOR HOFFMAN asked if it would affect people without a
garage.
CINDY HEIL responded that a garage is essential.
JAMES ARMSTRONG spoke to the problems that trigger
accidents.
SENATOR PHILLIPS OBJECTED to passage of the request.
A roll call vote was taken on the motion.
IN FAVOR: Senators Hoffman, Wilken, Therriualt, Donley
Representatives Joule, Lancaster, Davies
OPPOSED: Senator Phillips
Senator Ward and Representatives Fate, Harris, Mulder and
Williams were not present for the vote.
The MOTION PASSED (7-2).
There being NO further OBJECTION, RPL #25-03-6602 (CIP) was
adopted.
EXECUTIVE SESSION
SENATOR PHILLIPS 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 2:50 P.M.
CHAIR THERRIAULT requested that Pat Davidson, Legislative
Auditor, the Legislative Finance Staff, Representative
Hawker-new LBA Committee Chair, and Committee Staff, Heather
Brakes be present for the Executive Session.
The Committee resumed Open Session at 3:20 P.M.
TAPE LBA 02-13, SIDE A
AUDIT REPORTS
SENATOR PHILLIPS MOVED to release the final audit reports as
public:
· DCED/Board of Marine Pilots
· DEC/Board of Storage Tank Assistance
There being NO OBJECTION, the audits were released for
public response.
SENATOR PHILLIPS MOVED to release the following preliminary
audits to the agencies for response:
· DCED/Regulatory Commission of Alaska
· DNR/Division of Agriculture
· UA & DOA/Retirement Incentive Program
There being NO OBJECTION, the preliminary audit reports were
released for agency response.
SENATOR PHILLIPS MOVED that the Committee approve the
following audit requests:
· DEC/Village Safe Water Program
· DOTPF/Force Account Projects
CHAIR THERRIAULT asked Ms. Davidson if she had worked with
the above-mentioned audits and if the "scope was clear".
PAT DAVIDSON, Director, Legislative Audit Division,
responded that she had. The request for the Village Safe
Water program was to look at the following specific concerns
as outlined by Senator Lyda Green:
· Excessive time being charged for the work;
· Prime contractors billing markup on the work; and
· The bidding/procurement process used in the
communities involved.
There being NO OBJECTION, the audit requests were approved.
OTHER COMMITTEE BUSINESS
Redistricting Invoices
CHAIR THERRIAULT asked about the redistricting invoices.
Staff responded that they had not had an opportunity to look
at those invoices yet as they had been received two days
prior to the scheduled meeting. He noted that the invoices
would be held until the next meeting in middle January 2003.
Steering Committee - Veteran's Home Study
CHAIR THERRIAULT named the members for the Veteran's Home
Study Steering Committee. Membership would consist of be
Pat Davidson, David Teal, Representative Fate, and Senator
Therriault. He added that the Committee would be open if
other members were interested in participating. An
additional member will be needed to represent interests of
the Administration.
HEATHER BRAKES noted that the current Administration had
recommended Laddie Shaw.
CHAIR THERRIAULT asked if he would still be in place with
the new Administration. He requested that the names be
determined and submitted to help evaluate the two proposals.
He added that the full Committee would not be deciding the
contract. Authorization exists for the Steering Committee
to make the decision.
ADJOURNMENT
CHAIR THERRIAULT adjourned the Legislative Budget and Audit
Committee at 3:27 P.M.
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