Legislature(2011 - 2012)SENATE FINANCE 532

03/16/2011 01:00 PM Senate FINANCE


Download Mp3. <- Right click and save file as

Audio Topic
01:13:08 PM Start
01:17:38 PM SB46
02:44:06 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 46 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
Agency Overviews
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    SENATE FINANCE COMMITTEE                                                                                    
                         March 16, 2011                                                                                         
                           1:13 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
1:13:08 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair   Stedman   called   the   Senate   Finance   Committee                                                                
meeting to order at 1:13 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None.                                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Michael   Barnhill,    Deputy   Commissioner,    Department    of                                                               
Administration;     Cheri   Lowenstein,    Director,    Division                                                                
Administrative  Services,   Department  of Administration;   Anna                                                               
Kim,   Director,    Division    of   Administrative    Services,                                                                
Department   of  Education  and  Early  Childhood   Development;                                                                
Sam  Kito, Facilities   Engineer,  Department  of  Education  and                                                               
Early   Childhood   Development;   Susan   Colligan,   Director,                                                                
Division  of Administrative   Services,  Department  of Military                                                                
and  Veterans  Affairs;   Mary  Siroky,  Director,  Division   of                                                               
Administrative    Services,    Department     of   Environmental                                                                
Conservation;  Bill  Griffith,  Program  Manager,  Department  of                                                               
Environmental    Conservation;    Charlie   Swanton,   Director,                                                                
Division  of Sport  Fish,  Department  of  Fish and  Game;  Kevin                                                               
Brooks,  Deputy  Commissioner,   Department  of  Administration;                                                                
Joseph  Schmidt,   Commissioner,   Department   of  Corrections;                                                                
Leslie   Houston,   Director  of   Division   of  Administrative                                                                
Services,   Department   of  Corrections;   Chris   Christensen,                                                                
Deputy  Administrative  Director,  Alaska  Court  System;  Ginger                                                               
Blaisdell,   Director,  Division  of  Administrative   Services,                                                                
Department    of    Revenue;    Laura    Achee,    Director    of                                                               
Communications,     Alaska    Permanent     Fund    Corporation,                                                                
Department  of Revenue;  Guy  Bell,  Assistant  Commissioner  and                                                               
Director,  Division   of  Administrative   Services,  Department                                                                
of   Labor    and   Workforce    Development;    Clark   Bishop,                                                                
Commissioner,     Department     of    Labor    and    Workforce                                                                
Development;    Dave   Blaisdell,    Director,    Administrative                                                                
Services Division, Department of Law                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 46-BUDGET: CAPITAL                                                                                                           
                                                                                                                                
SENATE BILL NO. 46                                                                                                              
                                                                                                                                
     "An  Act  making  and amending   appropriations,  including                                                                
     capital    appropriations    and   other    appropriations;                                                                
     making    appropriations    to   capitalize    funds;    and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
MICHAEL   BARNHILL,    DEPUTY   COMMISSIONER,    DEPARTMENT    OF                                                               
ADMINISTRATION,   introduced   the   available   representatives                                                                
from the department.                                                                                                            
                                                                                                                                
CHERI    LOWENSTEIN,    DIRECTOR,     DIVISION    ADMINISTRATIVE                                                                
SERVICES,   DEPARTMENT    OF   ADMINISTRATION,   discussed    the                                                               
project review listings.                                                                                                        
                                                                                                                                
AMD RN 51847                                                                                                                    
Atwood    Building    and   Linny    Pacillo    Parking    Garage                                                               
Improvements for Security, Safety and Public Access                                                                             
$2,800,000                                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                          
The Division  of  General  Services is  requesting  general  fund                                                               
program  receipts  to make  improvements   to 5 interior   floors                                                               
of  the   Atwood   Building   in  Anchorage   and   to  complete                                                                
construction   in the  unfinished  street-level   corner  of  the                                                               
Linny  Pacillo   Parking   Garage  (LPPG).   Targeted  areas   of                                                               
improvement  are  building security,  safety  in  and around  the                                                               
building and to provide public access.                                                                                          
                                                                                                                                
RN 51581                                                                                                                        
Statewide Network Connectivity Upgrades                                                                                         
$3,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The average  shared  bandwidth  capacity  for 35  cities outside                                                                
of  the core  communities  of  Anchorage,  Fairbanks  and  Juneau                                                               
is below  1.5 megabits  per  second (mbps)  or a  T1. Public  and                                                               
agency  expectation  for  near or  real time  service  has  risen                                                               
to a  level  that requires  increased  capacity  to  these  rural                                                               
locations.  Bandwidth  services  in rural  areas  are expensive,                                                                
often  unreliable   and sometimes   non-existent.  This  funding                                                                
will  be   used  to  address   some  bandwidth   issues  through                                                                
various means.                                                                                                                  
                                                                                                                                
Ms. Lowenstein added that Bethel, Nome Ketchikan, Sitka,                                                                        
Kotzebue, and the Palmer/Wasilla area would see an upgrade                                                                      
in bandwidth services.                                                                                                          
                                                                                                                                
RN 51590                                                                                                                        
Classification System Conversion                                                                                                
$500,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  Division   of  Personnel   will  use   the  services   of  a                                                               
contractor   to  assist  in  converting   its  current  position                                                                
classification   system (whole  job  method)  to a  point  factor                                                               
system  which   will  reduce  staff   processing  time   and  the                                                               
number   of  staff  required   to  perform   the  classification                                                                
function.                                                                                                                       
                                                                                                                                
Ms. Lowenstein   added that  the state  currently  had 1,077  job                                                               
classes;  the  conversion  was  expected  to  reduce  the  number                                                               
of classes.                                                                                                                     
                                                                                                                                
1:17:38 PM                                                                                                                    
                                                                                                                                
RN 51796                                                                                                                        
Motor Vehicles Automatic Queuing System                                                                                         
$200,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  automated  queuing  system  allows  the  Division  of  Motor                                                               
Vehicles  (DMV)  managers  to  accurately  track  the  number  of                                                               
customers  served  and wait  times per  customer.  DMV's current                                                                
system  allows  DMV to  measure  wait times  from when  a  ticket                                                               
is pulled  from  the queue  in  20 minute  increments  only.  The                                                               
system    is   beyond   its    lifespan    and   needs   regular                                                                
maintenance,     which    is    expensive    and    logistically                                                                
cumbersome,  and  the  only replacement   parts are  refurbished                                                                
items.                                                                                                                          
                                                                                                                                
Ms. Lowenstein   stated that  the new  system would  be instated                                                                
in all state-owned DMV offices.                                                                                                 
                                                                                                                                
Co-Chair  Hoffman  asked how  many DMV  offices  were located  in                                                               
the state  and if  the updates  would  occur in  only Anchorage,                                                                
Fairbanks,   and   Juneau.   Ms.   Lowenstein   said   that   the                                                               
automatic  queuing  system  would  be installed  in  each of  the                                                               
16 state-owned offices.                                                                                                         
                                                                                                                                
1:17:53 PM                                                                                                                    
                                                                                                                                
RN 51600                                                                                                                        
Retirement and Benefits Disaster Recovery System                                                                                
$796,200                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The Division  of  Retirement  and Benefits  (DRB)  systems  house                                                               
important   data   regarding   health   care   eligibility    and                                                               
premium  payments.  DRB  is defined  as the  Covered  Entity  for                                                               
both  the active  and  retiree  health  plans.  This  means  that                                                               
DRB is  legally  mandated  by the Health  Insurance  Portability                                                                
and  Accounting   Act  to  develop  a  continuity  of  operation                                                                
plan  for critical  IT systems  that  have access  to electronic                                                                
protected   health   information.   If  the   State  is  not   in                                                               
compliance,  it  is possible  that fines  and penalties  will  be                                                               
imposed.                                                                                                                        
                                                                                                                                
Ms.  Lowenstein   shared   that   the  department   was  legally                                                                
mandated    by   the    Health    Insurance    Portability    and                                                               
Accountability   Act (HIPAA),  to  have a  redundancy  system  in                                                               
order  to access  information  in the  event of  emergencies  and                                                               
natural  disasters.  The  request is  one of  two in  a two  year                                                               
request.                                                                                                                        
                                                                                                                                
RN 51599                                                                                                                        
Combined Retirement System Upgrade                                                                                              
$350,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The Combined  Retirement  System  (CRS)  was developed  in  COBOL                                                               
using  DB2 as a  database on  an IBM  AS400. A  complete upgrade                                                                
is  needed  to move  the  functions  currently  provided  by  CRS                                                               
from  this  older  technology,  incrementally.   The  new  design                                                               
includes  a State  standard  compliant  JAVA web  interface  with                                                               
the data residing in an Oracle database.                                                                                        
                                                                                                                                
Ms.  Lowenstein  stated  that  he request  was  the second  of  a                                                               
five  year  request.  The  current   system  maintained  200,000                                                                
existing  and  past  members.  The language   of the  system  was                                                               
antiquated    and   needed   to   be  brought    up   to   modern                                                               
technological standards.                                                                                                        
                                                                                                                                
RN 51598                                                                                                                        
Retirement and Benefits Document Management System                                                                              
$387,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Funding   is  needed  to  provide   for  the  migration   of  the                                                               
Division  of  Retirement   and Benefits'   microfilm  documents,                                                                
currently   imaged  on  16  mm  silver   negatives   on  100  ft.                                                               
microfilm  rolls,  to the  newly  created  Stellent  system.  The                                                               
migration  will  include approximately   8.5 million  documents.                                                                
The  new  system  will  provide  improved   search  capabilities                                                                
and better long term storage.                                                                                                   
                                                                                                                                
Ms. Lowenstein relayed that the request was the second of a                                                                     
four-year request.                                                                                                              
                                                                                                                                
Senator   Egan   assumed   that   the  department    would   have                                                               
sufficient   back-up   in   the   event   of  digital   document                                                                
degradation.  Mr.  Barnhill  replied that  there  was film  back-                                                               
up of all documents.                                                                                                            
                                                                                                                                
RN 49602                                                                                                                        
Statewide Deferred Maintenance Projects                                                                                         
$10,250,000                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  request includes  deferred  maintenance  projects  for  the                                                               
Department  of  Administration.  Deferred  Maintenance  projects                                                                
for  the Public  Building   Fund (PBF)  and  Non-PBF  facilities                                                                
as    well   as    projects    for    the   State    of   Alaska                                                                
Telecommunication    System   (SATS)   infrastructure   and   ETS                                                               
facilities are included.                                                                                                        
                                                                                                                                
Co-Chair  Stedman  queried  the  committee's  desire  to examine                                                                
the  appropriation   by   allocation.  None   being  heard,   Ms.                                                               
Lowenstein concluded her presentation.                                                                                          
                                                                                                                                
[A complete  list  of DOA requests  can  be found  on the Office                                                                
of Management  and  Budget  page at the  Office  of the Governor                                                                
Homepage.]                                                                                                                      
                                                                                                                                
Co-Chair  Stedman   suggested  that  the  department  prioritize                                                                
the Capital  Budget  requests  in the  event that  the committee                                                                
decided to make reductions.                                                                                                     
                                                                                                                                
1:21:05 PM                                                                                                                    
                                                                                                                                
Department of Education and Early Childhood Development                                                                       
                                                                                                                                
ANNA  KIM,  DIRECTOR,   DIVISION  OF  ADMINISTRATIVE   SERVICES,                                                                
DEPARTMENT   OF  EDUCATION  AND  EARLY  CHILDHOOD   DEVELOPMENT,                                                                
discussed the department's Capital Budget requests.                                                                             
                                                                                                                                
RN 51752                                                                                                                        
Abandoned School Site Assessments                                                                                               
$125,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The Department   of Education  and Early  Development  currently                                                                
holds  title  to five  abandoned   school  sites with  buildings                                                                
located  in  the  communities  of  Tuntutuliak,  Rampart,   Pilot                                                               
Station,  Telida  and  Newtok.   The department   does  not  have                                                               
information   regarding  the  nature   or  extent  of  potential                                                                
hazardous  materials   associated  with  these  sites,  nor  does                                                               
it  have the  information   to determine   possible  cleanup  and                                                               
demolition  costs.  This  project  would assess  the  hazards  at                                                               
the  sites, and  prepare  demolition  and  mitigation  plans  for                                                               
each of the five locations.                                                                                                     
                                                                                                                                
RN 51820                                                                                                                        
Major Maintenance Grant Fund                                                                                                    
$19,860,236                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
In  accordance    with  AS   14.11.005   -  AS   14.11.135,   the                                                               
Department  of  Education  and  Early Development   reviewed  and                                                               
prioritized  capital   improvement  project  (CIP)  applications                                                                
submitted  by  the  school  districts.   The  December  17,  2010                                                               
CIP   Major   Maintenance   Grant    Fund   list  contains    117                                                               
statewide  projects  for a  state share  total  of $275,132,938.                                                                
Approval  of this  request  will provide  funding  for the  first                                                               
14 projects on the list.                                                                                                        
                                                                                                                                
RN 51761                                                                                                                        
St. Mary's Complex Renovation Completion                                                                                        
$105,954                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
St.  Mary's   Complex  Renovation   Completion   is  #1   on  the                                                               
December  17,  2010  CIP  Major  Maintenance   list.  This  aging                                                               
25,347  square  foot  facility  was  built  in 1974.  Renovation                                                                
included  design  and  implementation   of  the mechanical   room                                                               
re-piping,  equipment  replacement  and  standardization  of  the                                                               
design  and components  with  other recently  completed  work.  A                                                               
new  "T"  hood  diffuser   assembly  and  modifications   to  the                                                               
balancing  dampers  in  the  school's  ventilation   system  were                                                               
also  installed.   This  work  was  removed  from  the  original                                                                
FY08   school   renovation   project   and   completed   by   the                                                               
district   at  a   later   date.  This   request   will  provide                                                                
reimbursement   of funds  expended  by  the  school  district  to                                                               
complete the renovation project.                                                                                                
                                                                                                                                
RN 51764                                                                                                                        
Valley Park Elementary School Roof Replacement                                                                                  
$1,211,170                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The Valley  Park  Elementary  School Roof  Replacement  is #2  on                                                               
the  December   17,  2010  CIP  Major   Maintenance  list.   This                                                               
aging  school  was built  in 1973  and received  an  addition  in                                                               
2001.  The  proposed   project   will  remove  and  replace   the                                                               
existing  roof  system on  the  40,686 square  foot  school.  The                                                               
new  roof  system  will  include   installation   of ¾"  plywood                                                                
over  the old  ½"  deck, a  vapor  retarder,  and six  inches  of                                                               
new tapered  insulation  with  a ½" cover  board  to which a  new                                                               
flexible   rubber   roofing  membrane   will   be  adhered.   All                                                               
flashings,  roof  drains  and appropriate   accessories  will  be                                                               
included  with  the  install.  This  work  was  necessitated   by                                                               
persistent  roof  leaks that  were unable  to be  fully repaired                                                                
by maintenance staff.                                                                                                           
                                                                                                                                
Co-Chair  Stedman   asked  if the  committee   wished  to  peruse                                                               
the  entire  maintenance   list.  He  noted  that  the  list  was                                                               
prioritized.   There  was  no request   for elaboration   on  the                                                               
Major Maintenance list.                                                                                                         
                                                                                                                                
[A complete  list  of  DEED Major  Maintenance  requests  can  be                                                               
found  on  the Office  of  Management  and  Budget  page  at  the                                                               
Office of the Governor Homepage.]                                                                                               
                                                                                                                                
Co-Chair  Stedman  inquired  whether  the  department  had  other                                                               
requests.  Ms.  Kim  replied  that  there  was one  construction                                                                
grant project request.                                                                                                          
                                                                                                                                
RN 51754                                                                                                                        
Kuinerrarmiut     Elitnaurviat     K-12    Renovation/Addition,                                                                 
Quinhagak                                                                                                                       
$28,489,312                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Kuinerrarmiut  Elitnaurviat   K-12 School  Renovation/Addition,                                                                 
Quinhagak  is  the  #1  project  on  the  department's  December                                                                
17,  2010  Capital  Improvement   Projects  School  Construction                                                                
Grant  list.  This  project   will  construct  a  32,245   square                                                               
foot   addition  and   renovate   20,520  square   feet  of   the                                                               
existing  24,314  square  foot school.  In  accordance  with  the                                                               
department's    space  guidelines,    the   existing   space   is                                                               
adequate   for   95   students;   however,   205   students   are                                                               
currently  being  served. In  addition,  the facility  is almost                                                                
30 years  old and  many of  the building  systems  have exceeded                                                                
their useful life.                                                                                                              
                                                                                                                                
1:25:26 PM                                                                                                                    
                                                                                                                                
RN 51757                                                                                                                        
Mt. Edgecumbe High School Deferred Maintenance                                                                                  
$800,000 GF                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Mt. Edgecumbe  High  School  is over 40  years old  and deferred                                                                
maintenance   is  an  ongoing   necessity.   Based  on  existing                                                                
funding   and  progress   with  projects   on  the  current   Mt.                                                               
Edgecumbe   High   School   deferred   maintenance   plan,   this                                                               
request  would  likely  be  used  to  complete  Phase  I  of  the                                                               
Heating   System  Renovation   project.   If   there  are   funds                                                               
remaining,    then    the    design    for    a    field    house                                                               
shower/locker/restroom renovation project would begin.                                                                          
                                                                                                                                
Ms.  Kim relayed  that  upon completion   of the  heating  system                                                               
renovation   siding   of   the   women's   dormitory   would   be                                                               
considered.  Co-Chair  Stedman  asked  if  the $800,000  request                                                                
was  inclusive  of  all the  deferred  maintenance   projects  at                                                               
Mt.  Edgecumbe   High   School.   Ms.  Kim  responded   that   he                                                               
department   had  provided   a  six-year  deferred   maintenance                                                                
plan  for   the  school  to   Co-Chair  Stedman's   office.   The                                                               
department  anticipated   using  $750,000  to  complete  Phase  I                                                               
of  the Heating  System  Renovation   project.  The  field  house                                                               
renovation  was  expected to  cost $700,000.  The  siding of  the                                                               
women's  dormitory   was expected   to  take  priority  over  the                                                               
field   house  renovation    because   it  would   require   less                                                               
funding.   Co-Chair   Stedman   queried   the  Master   Deferred                                                                
Maintenance   list  for Mt.  Edgecumbe   High  School.  He  noted                                                               
that  the  list had  a  time  sequence  in  years that  extended                                                                
far into the future.                                                                                                            
                                                                                                                                
SAM  KITO, FACILITIES   ENGINEER,  DEPARTMENT  OF  EDUCATION  AND                                                               
EARLY   CHILDHOOD    DEVELOPMENT,    explained    the   deferred                                                                
maintenance   list  that had  been  provided   to the  committee                                                                
was  a  global  list  of  all  the  deferred  maintenance   needs                                                               
that  had been  identified   at the  Mt.  Edgecumbe  campus.  The                                                               
list  was  an  interim  list,  as  the  department   was  in  the                                                               
process   of  updating   its  master  plan.   The  current   list                                                               
highlights     approximately    $26    million    in    deferred                                                                
maintenance  for  the  entire  campus.  The  list  had  not  been                                                               
prioritized     from    year-to-year.    Current     year    plan                                                               
discussions   include   the  field  house   renovation  and   the                                                               
siding  of  the  women's   dormitory.   Co-Chair  Stedman   noted                                                               
that  the  timeframe  of  the list  extended  10  years  and  was                                                               
expected   to  cost  $26.5  million.   He  understood   that  the                                                               
projects  had  not  been  listed  in  priority  order.  Mr.  Kito                                                               
replied  that   the  list  was  prioritized   by year   from  the                                                               
previous  year's  master plan.  Projects  not completed  on  year                                                               
would  be  placed  on  the  deferred  maintenance   list  of  the                                                               
following   year.   The   department   was   waiting   for   more                                                               
information   from   departmental   consultants    in  order   to                                                               
accurately prioritize remaining deferred maintenance.                                                                           
                                                                                                                                
1:29:07 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  wondered  how the funds  would  be spent  were                                                               
the  committee   to   increase   the  appropriation.   Mr.   Kito                                                               
replied   that   the  dining   facility   was  the   next   major                                                               
building  up  for renovation.  Co-Chair  Stedman  said  that  the                                                               
committee  would  work  with  the  department   to identify   the                                                               
cost  of expected   yearly  deferred  maintenance  costs  at  the                                                               
Mt. Edgecumbe campus. Mr. Kito                                                                                                  
                                                                                                                                
RN 51756                                                                                                                        
Stratton Library Roof and Siding Replacement                                                                                    
$900,000 GF                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The 11,408  square  foot Stratton  Library  is located  in  Sitka                                                               
on  the  Sheldon   Jackson  College   campus,  adjacent   to  the                                                               
existing  state-owned   and operated   museum.  During  the  2010                                                               
legislative   session,  the  legislature   appropriated  funding                                                                
for  the State  of  Alaska  Department  of  Education  and  Early                                                               
Development   to  purchase   the   Stratton   Library  from   the                                                               
Sheldon    Jackson   College    Trustees.    The   library    was                                                               
originally   constructed  in  1974  and  both  the  roofing   and                                                               
siding   systems   have  exceeded   their   useful   life.   This                                                               
project   would   replace   the   failing    roof   and  siding,                                                                
protecting  the  state's recent  investment  in the  purchase  of                                                               
the library building.                                                                                                           
                                                                                                                                
Co-Chair  Stedman  expressed   appreciation  for  the  intent  of                                                               
the  appropriation.   He  noted   that  the  building   had  been                                                               
acquired  by the  state  in order  to house  the  country's  most                                                               
prolific Northwest Native Art collection.                                                                                       
                                                                                                                                
[A  complete  list of  DEED  capital  requests  can be  found  on                                                               
the  Office  of Management  and  Budget  page  at the  Office  of                                                               
the Governor Homepage.]                                                                                                         
                                                                                                                                
Department of Military and Veterans Affairs                                                                                   
                                                                                                                                
SUSAN   COLLIGAN,    DIRECTOR,   DIVISION    OF   ADMINISTRATIVE                                                                
SERVICES,   DEPARTMENT   OF  MILITARY   AND   VETERANS  AFFAIRS,                                                                
listed   the  department's    capital   requests   in  order   of                                                               
priority.                                                                                                                       
                                                                                                                                
RN 42900                                                                                                                        
Army Guard Facilities Projects                                                                                                  
$3,750,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Funding   is   requested    to   address   capital   improvement                                                                
projects  for  three  of  the  96  Alaska  Army  National   Guard                                                               
locations:  Fairbanks,   Anchorage,  and  Wasilla.  Projects  are                                                               
necessary   to  meet  space  requirements,   code  requirements,                                                                
property   protection,    conditions   improvements,    and   the                                                               
lodging needs of soldiers.                                                                                                      
                                                                                                                                
RN 50957                                                                                                                        
Federal Energy Projects                                                                                                         
$490,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Funding   is   requested    to   address   energy   conservation                                                                
requirements   in  Alaska  Army  National  Guard  Facilities   in                                                               
the   following    communities:   Juneau,    Ketchikan,    Kenai,                                                               
Kodiak,  Nome, and  Fort Richardson.   The Alaska  Army National                                                                
Guard  is  tasked  with  reducing   energy  consumption   at  its                                                               
facilities.   Federal    Executive   Orders   13423   and   13514                                                               
prescribe  the  requirement   for using  more  energy  efficient                                                                
equipment  and  for utilizing   energy obtained   from renewable                                                                
sources.  The  proposed  projects  will  install  equipment   and                                                               
provide    designs   that    utilize   available    and    proven                                                               
technology.                                                                                                                     
                                                                                                                                
RN 42898                                                                                                                        
National Guard Counterdrug Support                                                                                              
$100,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The   National   Guard  Counterdrug    Support   Program   (CDSP)                                                               
supports   law   enforcement   agencies   in  drug   enforcement                                                                
operations,   assists  in  training  Law  Enforcement  Officers,                                                                
and  provides  community-based   drug  awareness  programs.   The                                                               
primary purpose of the U.S. Department of Justice Asset                                                                         
Forfeiture  Program  is to  deter crime  by depriving  criminals                                                                
of  profits and  proceeds  from  their  illegal activities.   The                                                               
CDSP  program  is  needed  to  provide  citizen  protection   and                                                               
life safety measures.                                                                                                           
                                                                                                                                
RN 42901                                                                                                                        
State Homeland Security Grant Programs                                                                                          
$9,500,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  various   100  percent  federally   funded  State  Homeland                                                                
Security  grant  programs   are  annually  awarded  by  the  U.S.                                                               
Department   of  Homeland  Security.   Programs  include   needed                                                               
homeland   security    planning,    equipment,   training,    and                                                               
exercises  to support  local  first  responders,  private  sector                                                               
infrastructure   and   state  preparedness.    This  request   is                                                               
needed   to  assist   in  life   safety  citizen   preparedness.                                                                
Response  end  results  will  be enhanced   and improved   within                                                               
our  performance  management   framework.  These  funds  provide                                                                
for  critical  tasks  at the  state  level  that include   crisis                                                               
management,    intelligence    gathering    and    notification,                                                                
critical   infrastructure    analysis,    mitigation   projects,                                                                
policy development and effective grants management.                                                                             
                                                                                                                                
RN 49583                                                                                                                        
Military and Veterans Affairs Deferred Maintenance Projects                                                                     
$12,085,800                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Funding   is   requested   to   address   deferred   maintenance                                                                
projects  for  the  Alaska  Army National   Guard  Facilities  in                                                               
the   following   locations:    Anchorage,   Bethel,   Kotzebue,                                                                
Sitka,   Wasilla,   Ketchikan,   Juneau,   Koyukuk,   Fairbanks,                                                                
Kenai,  Nome,  Brevig   Mission,  Elim,  and  other  communities                                                                
statewide.  Projects  focus  on building  repair  and renovation                                                                
with   an  emphasis   on   fire,  safety,   and   protection   of                                                               
structures.                                                                                                                     
                                                                                                                                
Ms.  Colligan  stated   that  the  projects  addressed  deferred                                                                
maintenance  for  Army  National  Guard  facilities   around  the                                                               
state,  as  well  as the  Alaska  Military   Youth  Academy.  The                                                               
appropriation had 17 allocations.                                                                                               
                                                                                                                                
[A  complete  list of  DMVA  capital  requests  can be  found  on                                                               
the  Office  of Management  and  Budget  page  at the  Office  of                                                               
the Governor Homepage.]                                                                                                         
                                                                                                                                
1:35:45 PM                                                                                                                    
                                                                                                                                
Department of Environmental Conservation                                                                                      
                                                                                                                                
MARY  SIROKY, DIRECTOR,  DIVISION  OF  ADMINISTRATIVE  SERVICES,                                                                
DEPARTMENT    OF    ENVIRONMENTAL    CONSERVATION,    introduced                                                                
available  support   staff.  She  shared  that  the  list  before                                                               
the committee was in priority order.                                                                                            
                                                                                                                                
RN 41376                                                                                                                        
Village Safe Water and Wastewater Infrastructure Projects                                                                       
$51,566,664                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  provides  grant funding  for  first  time service                                                                
to communities   to plan,  design and  construct  drinking  water                                                               
and  sanitation   facilities   and   the  associated   operating                                                                
costs  of  the  Facility   Construction   component  within   the                                                               
Division   of   Water.   This   project   contributes    to   the                                                               
Department's   End   Result   A   -  Citizens   are   Protected.                                                                
Drinking  water  and  sewer   projects  constructed   with  grant                                                               
funds protect residents from unsafe sanitary conditions.                                                                        
                                                                                                                                
RN 46714                                                                                                                        
Municipal  Water,  Sewage,  and  Solid Waste  Facilities  Grants                                                                
(AS 46.03.030)                                                                                                                  
$20,000,000                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  provides  funding  for grants  to  communities  to                                                               
plan,  design  and  construct   drinking  water  and  sanitation                                                                
facilities   and   the  associated   operating    costs  of   the                                                               
Facility   Construction   component   within   the  Division   of                                                               
Water.  This   project  contributes   to  the  Department's   End                                                               
Result  A - Citizens  are  Protected.  Drinking  water and  sewer                                                               
projects   constructed   with  grant  funds   protect  residents                                                                
from unsafe sanitary conditions.                                                                                                
                                                                                                                                
Ms.  Siorky   stated  that  there   were  nine  projects   to  be                                                               
funded with the appropriation.                                                                                                  
                                                                                                                                
Co-Chair   Stedman   queried   the  weather   the   $20  million                                                                
appropriation   would be  enough  to  fund all  of  the projects                                                                
in  the state  that  were  listed  under  the department's   "End                                                               
Result A - Citizens are Protected" plan.                                                                                        
                                                                                                                                
BILL   GRIFFITH,  FACILITIES   PROGRAM   MANAGER,   DIVISION   OF                                                               
WATER,  DEPARTMENT   OF  ENVIRONMENTAL   CONSERVATION,   replied                                                                
that  the appropriation   would  not  service  the full  list  of                                                               
the  approximately   50 to  60  communities   in need.  Co-Chair                                                                
Stedman  requested  the  total dollar  amount  of the  list.  Mr.                                                               
Griffith   answered    that   the  total   dollar    amount   was                                                               
approximately   $79 million.  Co-Chair  Stedman  understood   the                                                               
appropriation   was $20  million  of  the  total dollar  amount.                                                                
Mr. Griffith replied in the affirmative.                                                                                        
                                                                                                                                
Senator  Thomas  wondered  if similar  materials   and equipment                                                                
were  being used  for  each service  grant  funded  facility.  He                                                               
though   that  consistent   use   of  similar   materials   would                                                               
streamline  future  maintenance,  from  community  to community.                                                                
Mr.   Griffith   replied   that   significant    standardization                                                                
occurs    throughout    the   design    process    to   simplify                                                                
maintenance.  Standardization   occurred  less in  the Municipal                                                                
Matching  Grant  program,  because  individual  cities,  and  not                                                               
the state, administered the projects.                                                                                           
                                                                                                                                
1:39:22 PM                                                                                                                    
                                                                                                                                
Senator   Thomas   probed   the  department's    distinction   of                                                               
criteria  for "city"  versus  "rural".  Mr. Griffiths  said  that                                                               
the  population   limit  for   unincorporated   communities   and                                                               
first-class   cities  is 600  people.   There  is no  population                                                                
limit for second-class cities.                                                                                                  
                                                                                                                                
Co-Chair  Stedman  shared  that  the committee  had  doubled  the                                                               
governor's  request   for  the program   in the  FY2011  Capital                                                                
Budget,   which   the  governor   had   ultimately   vetoed.   He                                                               
expressed  confusion   that  the  administration  would  request                                                                
for  FY2012,  what  it  had  vetoed  for  FY2011.  Mr.  Griffith                                                                
could  not provide  an explanation  for  the veto.  He said  that                                                               
the  department  would  work  closely  with  the  administration                                                                
to  ensure  the  process  by  which the  project  were  selected                                                                
and  prioritized   was  understood.   Co-Chair   Stedman   stated                                                               
that  the legislature  was  not in the  practice  of rearranging                                                                
the  priority   lists   submitted   by  departments.   In   2010,                                                               
appropriations   were increased  in  areas  where  the committee                                                                
had determined   the most  need. He  maintained  puzzlement  that                                                               
the items  vetoed  by the  administration  for FY2011,  would  be                                                               
requested  again  in  FY2012.  He  wondered   if increasing   the                                                               
appropriations   again would  result  in a  governor's  veto  for                                                               
FY2012.   Ms.  Siorky  stated   that  the  department   provided                                                                
information   to   the  governor's   office   as   the  governor                                                                
considered final veto decisions.                                                                                                
RN 49749                                                                                                                        
Expansion, Upgrade, Replacement of Existing Service                                                                             
$21,774,913                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  provides  grant  funding  for expansion,  upgrade                                                                
and replacement   of existing  service  to communities  to  plan,                                                               
design   and    construct   drinking    water   and   sanitation                                                                
facilities.                                                                                                                     
                                                                                                                                
RN 49748                                                                                                                        
First Time Service Projects                                                                                                     
$29,791,751                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This project provides funding for first time service grants                                                                     
to communities to plan, design and construct drinking water                                                                     
and sanitation facilities.                                                                                                      
                                                                                                                                
RN 51725                                                                                                                        
Haines: Asbestos Cement Pipe Replacement                                                                                        
$535,224                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There  are  approximately   990  homes  in the  community.   This                                                               
project   will  replace   asbestos   cement   pipe  in  the   4th                                                               
Avenue,    View,   and   Lynnvue    areas.   The   local    match                                                               
requirement is 30 percent of total eligible project costs.                                                                      
RN 47787                                                                                                                        
Kenai: Water Transmission Mains Phase 3                                                                                         
$1,603,710                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   2,625   occupied   homes   in   the                                                               
community.  This  project will  construct  the third  phase  of a                                                               
multi-phase  effort  to install  new  water transmission   mains.                                                               
The local  match  requirement  is 30  percent of  total eligible                                                                
project costs.                                                                                                                  
                                                                                                                                
1:44:16 PM                                                                                                                    
                                                                                                                                
RN 49739                                                                                                                        
Ketchikan: Water and Sewer Improvements                                                                                         
$1,658,287                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   3,200   occupied   homes   in   the                                                               
community.  This  project  will  install  4,800  feet  of 8"  and                                                               
16"  water  and  sewer  mains  in  the  Jackson  Street,   Monroe                                                               
Street,  4th  Avenue,  and 7th  Avenue  areas.  The  local  match                                                               
requirement is 30 percent of total eligible project costs.                                                                      
                                                                                                                                
Co-Chair  Stedman  noted  that  the  allocations  were  going  to                                                               
be  short   of  funding.   Mr.   Griffith  explained   that   the                                                               
Ketchikan:   Water  and  Sewer  Improvement   project   would  be                                                               
partially  funded,  with  a  $  20 million   dollar  cut-off.  An                                                               
additional  $931,000  would  be  requested  by the  community  to                                                               
fully  fund   the  project.  Co-Chair   Stedman  asked   why  the                                                               
department  had  decided  to  partially  fund  the  request.  Mr.                                                               
Griffith  replied  that  the  decision  had  been  made  by  OMB.                                                               
Co-Chair  Stedman   asked  if  the  department  normally  funded                                                                
projects   to  completion.   Mr.  Griffith   answered  that   the                                                               
department  typically  attempted  to fund  whole  projects.  Some                                                               
projects    could   be   partially    funded,   such    as   pipe                                                               
replacement   projects,  but  most   projects  could  not   split                                                               
funding   from  year-to-year.   Co-Chair   Stedman  wondered   if                                                               
funding  for  the other  half  of  the Ketchikan   project  would                                                               
be at  the top  of the  request  list for  FY2013.  Mr. Griffith                                                                
relayed  that  communities   had  to reapply   for funding   from                                                               
year-to-year,   so the  project  would  be  re-ranked.  He  added                                                               
that  oftentimes  projects that  scored  just below  the funding                                                                
line   ended  up  near   the  top   of  the   funding  list   the                                                               
following  year.   Co-Chair  Stedman  asked  if  the  department                                                                
gave  the  recommendation   to OMB  to  half-fund  projects,   or                                                               
was  it  recommended  that  OMB  follow  the  priority  list  and                                                               
fund   projects   entirely.    Mr.   Griffith   said   that   the                                                               
department  would  recommend  that  the  project  was  funded  to                                                               
completion.                                                                                                                     
                                                                                                                                
RN 49743                                                                                                                        
Ketchikan: Water and Sewer main Replacements                                                                                    
$2,616,824                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   3,200   occupied   homes   in   the                                                               
Borough.  This project  will  replace  water and  sewer mains  in                                                               
the  Alaska  Avenue  area. The  local  match  requirement  is  30                                                               
percent of total eligible project costs.                                                                                        
                                                                                                                                
RN 45535                                                                                                                        
Kodiak: Ultraviolet Secondary Water Treatment Facility                                                                          
$3,616,200                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   2,000   occupied   homes   in   the                                                               
community.  This  project  will  fund an  ultraviolet  secondary                                                                
water  treatment  facility.   The local  match  requirement   for                                                               
this  allocation   is  30  percent  of  total  eligible  project                                                                
costs.                                                                                                                          
                                                                                                                                
RN 46735                                                                                                                        
Palmer: Southwest Water Utility Extension, Phase 2B                                                                             
$2,575,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   1,475   occupied   homes   in   the                                                               
community.  This  project  will  provide  additional   funds  for                                                               
the  southwest  water utility  extension,   Phase 2B.  The  local                                                               
match  requirement   for  this   allocation  is  30  percent   of                                                               
total eligible project costs.                                                                                                   
                                                                                                                                
RN 51726                                                                                                                        
Sitka: Ultraviolet Disinfection Facility                                                                                        
$3,587,500                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There  are approximately   3,300  homes in  the community.   This                                                               
project   will   construct   an  ultraviolet   water   treatment                                                                
disinfection   facility.  The  local  match  requirement   is  30                                                               
percent of total eligible costs.                                                                                                
                                                                                                                                
RN 51724                                                                                                                        
Soldotna: Well House B Reconstruction                                                                                           
$717,255                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There   are   approximately   1,450   occupied   homes   in   the                                                               
community.   This  project   will  replace   a  well  house   and                                                               
related  equipment.   The  local   match  requirement   for  this                                                               
project is 30 percent of total eligible project costs.                                                                          
                                                                                                                                
RN 51727                                                                                                                        
Unalaska: Water Treatment Plant                                                                                                 
$3,090,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There  are  approximately   835  homes  in the  community.   This                                                               
project   will  construct   a  new  community   water  treatment                                                                
plant  to   bring  it  into   compliance   with  the  Long   Term                                                               
Enhanced   Surface  Water   Treatment  Federal   Drinking   Water                                                               
Rule.  The  local  match  requirement  is  30  percent  of  total                                                               
eligible costs.                                                                                                                 
                                                                                                                                
Ms. Siroky continued.                                                                                                           
                                                                                                                                
RN 49697                                                                                                                        
Drinking Water Capitalization Grant - Subsidy Funding                                                                           
$4,071,900                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  federal  Drinking   Water  Capitalization   Grant  requires                                                                
States  to issue  30  percent  of the  funding  as  subsidies  (a                                                               
loan  forgiveness   process).  This  program   has  in  the  past                                                               
functioned   strictly  as  a  loan  program  until  fiscal   year                                                               
2011  when  this provision   was added  to  the federal  budget.                                                                
In  order  to implement  this  provision,   an appropriation   is                                                               
necessary  to  properly  record  the  loan  forgiveness  payment                                                                
as  an  expense   in  the  Alaska  Drinking   Water  Fund.   This                                                               
project  contributes   to  the   Department's  End   Result  A  -                                                               
Citizens are Protected.                                                                                                         
                                                                                                                                
RN 49698                                                                                                                        
Clean Water Capitalization Grant - Subsidy Funding                                                                              
$1,826,274                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The   federal   Clean  Water   Capitalization    Grant  requires                                                                
States  to issue  subsidies  (a loan  forgiveness  process).  The                                                               
subsidy   amount  required   was  identified   under  the   grant                                                               
terms  the  Environmental   Protection   Agency  has  identified                                                                
for   Alaska.  This   program   has   in  the   past  functioned                                                                
strictly  as a loan  program  until fiscal  year  2011 when  this                                                               
provision   was  added  to  the  federal  budget.   In  order  to                                                               
implement  this  provision,  an  appropriation  is  necessary  to                                                               
properly  record  the loan  forgiveness  payment  as  an expense                                                                
in the  Alaska  Clean Water  Fund. This  project  contributes  to                                                               
the Department's End Result A - Citizens are Protected.                                                                         
                                                                                                                                
RN 37753                                                                                                                        
Tax  Exempt  Usage  Requirements   for  Investment  Income   from                                                               
Certificates of Participation                                                                                                   
$205,300                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The   Department   of   Environmental    Conservation   requests                                                                
Miscellaneous   Earnings  authorization   in  order  to  satisfy                                                                
the tax  exempt  usage requirements   for the investment   income                                                               
earned  from  the  issuance  of  Certificates  of  Participation                                                                
for the building of the Environmental Health Lab.                                                                               
                                                                                                                                
RN 35723                                                                                                                        
Spill Prevention - Best Available Technology Analyst                                                                            
$100,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project provides  funding  for a  review and  appraisal  by                                                               
the   department   of   oil  spill   prevention    and  response                                                                
technologies     that    represent     alternatives     to    the                                                               
technologies   used  by plan  holders   in their  oil  discharge                                                                
prevention  and  response  plans.  The department's   review  and                                                               
appraisal   of  emerging   technologies,   such   as  oil   spill                                                               
response  in  arctic  and  ice  covered  waters,  pipeline   leak                                                               
detection  and  well  blowout  control,  will  include  engaging                                                                
in   studies,   inquiries,   surveys   and   analysis   and   the                                                               
sponsorship   of technology   conferences  to  provide  persons,                                                                
organizations,   and  groups  with interests   and  expertise  in                                                               
relevant    technologies     to    present    data    on    these                                                               
technologies.   Supports   End   Result   B  -   Environment   is                                                               
Protected.                                                                                                                      
                                                                                                                                
RN 50943                                                                                                                        
Recreational Shellfish Beach Monitoring Pilot Program                                                                           
$400,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
There  have  been  several  occurrences   recently  of  Alaskans                                                                
eating  recreational  and  subsistence  harvested  shellfish  and                                                               
becoming   ill  from  paralytic   shellfish   poison  (PSP)   and                                                               
other  shellfish   related   pathogens.   We  are  requesting   a                                                               
pilot   program  to   collaborate   with  four   communities   to                                                               
monitor    recreational    shellfish   harvesting    areas    for                                                               
paralytic shellfish poison. This project contributes to the                                                                     
Department's End Result A - Citizens are Protected.                                                                             
                                                                                                                                
RN 49339                                                                                                                        
Environmental     Health     Laboratory     Building    Deferred                                                                
Maintenance                                                                                                                     
$200,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  funding  is to  cover deferred  maintenance   items in  the                                                               
Environmental    Health   Laboratory   Building.    Examples   of                                                               
immediate   deferred  maintenance   needs  in  the  lab  include                                                                
installing     air    flow     safety    alarms,     ventilation                                                                
improvements,     steam    generator    replacement,     and    a                                                               
decontamination   shower  upgrade.   Supports   End  Result  A  -                                                               
Citizens are Protected.                                                                                                         
                                                                                                                                
Ms.  Siorky  explained  that  the items  had  been  deferred  due                                                               
to  lack of  funds  during  the  construction  of  the building.                                                                
Co-Chair  Stedman  asked  when  the  building  was  constructed.                                                                
Ms.  Siorky   thought   the  building   was   approximately   six                                                               
years-old.                                                                                                                      
                                                                                                                                
[A  complete  list  of DEC  capital  requests  can  be  found  on                                                               
the  Office  of Management  and  Budget  page  at the  Office  of                                                               
the Governor homepage.]                                                                                                         
                                                                                                                                
1:49:35 PM                                                                                                                    
                                                                                                                                
Department of Fish and Game                                                                                                   
                                                                                                                                
KEVIN    BROOKS,    DIRECTOR   OF    ADMINISTRATIVE    SERVICES,                                                                
DEPARTMENT   OF  ADMINISTRATION,   relayed   that  the  projects                                                                
would be presented in priority order.                                                                                           
                                                                                                                                
RN 43322                                                                                                                        
Facilities,  Vessels,  and  Aircraft  Maintenance,   Repair,  and                                                               
Upgrades                                                                                                                        
$700,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This   annual    request    funds   repair,    maintenance    and                                                               
renovation   of  department  facilities   statewide  and   vessel                                                               
and   aircraft    repair    and   maintenance.    This   project                                                                
contributes   to the  department's   mission  by  providing   the                                                               
department       with      the       means      to      properly                                                                
maintain/repair/upgrade     its    facilities,     vessels    and                                                               
equipment,  resulting  in reduced  long-term  capital  costs  and                                                               
a more productive departmental workforce.                                                                                       
                                                                                                                                
Mr. Brooks  stated  that the  department  has employees  in  over                                                               
40 locations around the state.                                                                                                  
                                                                                                                                
Co-Chair  Stedman  queried  the evolution  of the  appropriation                                                                
from  $700,000 in  FY2012 to  $1.1 million  in FY2013  - FY2017.                                                                
Mr.  Brooks   replied   that  after   financial   analysis,   the                                                               
$700,000 request for FY2012 was appropriate.                                                                                    
                                                                                                                                
RN 50944                                                                                                                        
Critical Information Technology Infrastructure Maintenance                                                                      
$400,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This   request   seeks   annual   maintenance   costs   for   the                                                               
infrastructure    components   that  supply   the   department's                                                                
information   technology    backbone.   Examples   are  storage,                                                                
virtualization,    databases,   and  disaster    recovery.   This                                                               
project   contributes   to  the  department's   mission   as  all                                                               
facets  of resource  management,  research,  and  administration                                                                
are  dependent  upon  the  networking,  database,   and computer                                                                
infrastructure.                                                                                                                 
                                                                                                                                
1:52:45 PM                                                                                                                    
                                                                                                                                
RN 39293                                                                                                                        
Westward Region DIDSON Sonar Purchase                                                                                           
$105,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  funds  the  acquisition   of  one  Dual-Frequency                                                                
Identification  Sonar  (DIDSON)  long-range  sonar  unit to  help                                                               
commercial   salmon  fishery  management   and  research   within                                                               
the  Westward   Region.  The  unit   will  be  used  to  provide                                                                
timely  in  season  escapement   estimates,  allow  fish   counts                                                               
during  emergencies   when  weirs  are  flooded  or  inoperable,                                                                
and   address  applied   research   questions   such   as   smolt                                                               
avoidance  of  traps and  salmon  movement  and distribution   at                                                               
counting  sites.  DIDSON sonar  units  have proven  to be  highly                                                               
effective   tools   for   salmon   stock   assessment,   a   core                                                               
component of the department's mission.                                                                                          
                                                                                                                                
Senator  Thomas  asked  where  the sonar  would  be  placed.  Mr.                                                               
Brooks   replied  East   Kodiak.  Senator   Thomas  asked   if  a                                                               
similar  project   could  be  considered  for  the  Yukon   River                                                               
area.  Mr.  Brooks  replied  that the  department  had  sonar  in                                                               
all but  the westward  region.  He said  that the  sonar devices                                                                
were  portable,  which  allows  for  placement  in  a  river  for                                                               
120 to  150 days  per-year.  The device  would not  be dedicated                                                                
specifically  to  the Yukon,  but would  be used  in the region.                                                                
Senator  Thomas  asked if  the sonar  used  on the  Yukon was  as                                                               
high-quality   as the  DIDSON  unit.  Mr.  Brooks  replied   that                                                               
the device  would  be consistent  with  other units  used by  the                                                               
department.                                                                                                                     
                                                                                                                                
RN 41452                                                                                                                        
State Game Refuge Access and Development                                                                                        
$720,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  Division  of  Wildlife   Conservation  manages   state  game                                                               
refuges  that  have  identified   tangible  projects   that  will                                                               
improve   hunter  access  as  well   as  clean  up  and  develop                                                                
public  lands.  Specific   state  game  refuges  include:   Goose                                                               
Bay,   Susitna   Flats,   Palmer   Hay   Flats,   and  Anchorage                                                                
Coastal.   This   project   contributes   to  the   department's                                                                
mission  by protecting  wildlife  resources  and  managing  their                                                               
use for people of the state.                                                                                                    
                                                                                                                                
RN 33647                                                                                                                        
Pacific Costal Salmon Recovery Fund                                                                                             
$12,000,000                                                                                                                     
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Federal  fiscal  year  FY11  (state  fiscal  year FY12)  federal                                                                
appropriations  legislation   contains  funding for  the Pacific                                                                
Coastal  Salmon  Recovery Fund  (PCSRF).  The Alaska  portion  of                                                               
the  federal   appropriation   comes  to  the  state  through   a                                                               
Memorandum  of  Understanding  (MOU)  with  the U.S.  Department                                                                
of  Commerce  designating  the  Alaska  Department  of  Fish  and                                                               
Game   (ADF&G)   as   the   program    manager.   This   project                                                                
contributes   to   the   department's   mission    by  providing                                                                
funding  for a  wide range  of fisheries  research,  management,                                                                
and   restoration   work  which   will   enhance   the  agency's                                                                
capacity  to contribute  to  the economy  and general  wellbeing                                                                
of the people of Alaska.                                                                                                        
                                                                                                                                
RN 48948                                                                                                                        
Pacific Salmon Treaty Chinook Fishery Mitigation                                                                                
$7,500,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  federal budget  for  State  FY12 (Federal  FY11)  is  likely                                                               
to   include   up  to   $7.5   million   to  mitigate   economic                                                                
consequences  of  harvest  reductions  in  the Southeast  Alaska                                                                
sport  and  commercial   Chinook  salmon  fisheries   imposed  by                                                               
the  Pacific  Salmon Treaty.  This  project  contributes  to  the                                                               
department's   mission  by  mitigating  some  of  the  hardships                                                                
imposed  on  the Southeast   Alaska  salmon  industry,  in  order                                                               
to   achieve   international    conservation    and   allocation                                                                
objectives contained in the treaty.                                                                                             
                                                                                                                                
RN 30432                                                                                                                        
Sport Fish Recreational Boating Access                                                                                          
$3,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  annual  request  authorizes  the  Division  of  Sport  Fish                                                               
to  continue   to  construct  and  upgrade   recreational   power                                                               
boating  and   sport  fish  access  facilities   statewide   from                                                               
funds  comprised   of  75  percent  federal  assistance   and  25                                                               
percent  Fish  and Game  Fund,  or other  local government   non-                                                               
federal   match.  Projects   include:  boat   launches,  mooring                                                                
floats,  parking  lots,  restrooms,  fish  cleaning  facilities,                                                                
and  other  services  for  recreational  boaters.   This project                                                                
contributes   to   the   department's   mission    by  providing                                                                
improvements   and   construction   to  statewide   boating   and                                                               
sport   fish  access   facilities   and   results   in  improved                                                                
recreational  boating   and sport  fishing  access  to  the  fish                                                               
and wildlife resources of the state.                                                                                            
                                                                                                                                
1:56:21 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  asked  where  ramps  were  going to  be  built                                                               
and queried  future  plans  for the project.  Mr.  Brooks  stated                                                               
that  the   $3  million   request  would   fund  boat  ramps   in                                                               
Hoonah,  Bar  Harbor,  False  Island  moorage   near  Craig,  and                                                               
various  fish   cleaning  facilities.   Co-Chair  Stedman   asked                                                               
about  plans  at  False  Island.  Mr.  Brooks  replied  that  the                                                               
project  was  the False  Island  Moorage  Float Renovation.   Co-                                                               
Chair  Stedman requested  a  list of  projects going  back  three                                                               
years,  as well  as  looking  forward  the next  four  years.  He                                                               
asked  that  the  methodology  used  for  project  selection   be                                                               
presented   in  addition   to  the  project   list.  Mr.   Brooks                                                               
agreed  to  provide  the  information.  Co-Chair  Stedman   added                                                               
that  there had  been very  little General  Fund  money put  into                                                               
the  projects  in  the  past,  he  believed   that  there  was  a                                                               
higher  interest  in  the  program  then  was  reflected  in  the                                                               
funding  streams.  Mr. Brooks  agreed  that  the program  was  in                                                               
demand.   He  stressed   that  the   department   set  aside   15                                                               
percent  as  was  required  by  the  federal  apportionment   and                                                               
matched  that  with  DF&G funds.  Co-Chair  Stedman  asked  if  a                                                               
boat  ramp  at Banana  Point  in  Petersburg  could  be expected                                                                
in the near future.                                                                                                             
                                                                                                                                
CHARLIE SWANTON, DIRECTOR, DIVISION OF  SPORT FISH, DEPARTMENT OF                                                               
FISH  AND GAME,  testified   that  the  department   was  in  the                                                               
process  off  looking  at  upgrades  and  facility  improvements                                                                
at  Banana  Pont.  He could  not  speak  to a  timeline  for  the                                                               
project.  Co-Chair  Stedman  requested  information  on past  and                                                               
future  plans   for  the  project   and  a  description   of  the                                                               
project  selection  process.  He added  that the  communities  of                                                               
Petersburg  and  Wrangell had  been looking  in  to changing  the                                                               
location  of  the ramp  at  Banana  Point.  Mr. Swnaton  assured                                                                
the  committee   that   the  requested   information   would   be                                                               
provided.                                                                                                                       
                                                                                                                                
1:59:33 PM                                                                                                                    
                                                                                                                                
AMD RN 51341                                                                                                                    
Campbell Creek Estuary Conservation Project                                                                                     
$5,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The Department   has applied  to the  National  Marine Fisheries                                                                
Service   (NMFS)   under  the   Section   6  competitive    grant                                                               
program   for  funding   in  support   of  the   Campbell   Creek                                                               
Estuary   Conservation   project.   The  project,   adjacent   to                                                               
ADFG's  Anchorage  Coastal  Wildlife   Refuge,  has  the support                                                                
of  the  Municipality  of  Anchorage  and  it  will  conserve  60                                                               
acres   of   coastal    habitat   for   the   critical   habitat                                                                
designation of Cook Inlet beluga whales.                                                                                        
                                                                                                                                
RN 45482                                                                                                                        
Statewide Facility Deferred Maintenance Projects                                                                                
$1,400,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  is an  appropriation  for  Alaska Department   of Fish  and                                                               
Game  deferred   maintenance   projects   and  the  details   are                                                               
described  in  the  allocations.  This  project  contributes   to                                                               
the  department's   mission  by  providing  the  department   the                                                               
means  to  complete  deferred   maintenance  on  its  facilities                                                                
resulting   in reduced   long-term  capital   costs  and  a  more                                                               
productive departmental workforce.                                                                                              
                                                                                                                                
RN 41922                                                                                                                        
Cordova Dock/Uplands Improvements and Upgrades                                                                                  
$650,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project   will  finalize   the  remaining   deferred   dock                                                               
improvements   at the  Cordova   Fish and  Game  dock  compound.                                                                
The   dock  float   system   is   old   and  partially   failing                                                                
requiring replacement.                                                                                                          
                                                                                                                                
RN 49672                                                                                                                        
Fairbanks Regional Office Repairs/Upgrades                                                                                      
$750,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  Fairbanks   Regional   Office  has   a  variety  of   needed                                                               
improvements   and upgrades   due to  the  age  of  the facility                                                                
and  the constant  heavy  use:  upgrade  mechanical  heating  and                                                               
cooling    systems,    electrical    system    assessments    and                                                               
upgrades,  and facility  efficiency  and  long  term operational                                                                
plan/assessment.   Funds  are  needed  to contract   for various                                                                
professional   assessments,  design  plans  and  specifications,                                                                
and   for  the   actual  improvements    and  upgrades   to   the                                                               
facility.                                                                                                                       
                                                                                                                                
Co-Chair  Stedman  queried  the  cost  of  deferred  maintenance                                                                
projects   beyond   the  two   allocations   listed   under   the                                                               
appropriation.   Mr.  Brooks  said  that  the  department   could                                                               
provide  a  list of  over  $3 million  in  deferred  maintenance                                                                
needs.                                                                                                                          
                                                                                                                                
[A  complete  list  of DFG  capital  requests  can  be  found  on                                                               
the  Office  of Management  and  Budget  page  at the  Office  of                                                               
the Governor homepage.]                                                                                                         
                                                                                                                                
2:02:10 PM                                                                                                                    
                                                                                                                                
Department of Corrections                                                                                                     
                                                                                                                                
JOSEPH  SCHMIDT,   COMMISSIONER,   DEPARTMENT   OF  CORRECTIONS,                                                                
discussed the capital requests.                                                                                                 
RN 45637                                                                                                                        
Annual Facilities Maintenance and Repairs                                                                                       
$1,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  will  provide   funding  for  essential  renewal,                                                                
replacement,    renovation,     remodeling    and    repair    of                                                               
electrical,   mechanical,    roofing,   walls,  fire   and   life                                                               
safety,  security,   structural,   food  service,  pavement   and                                                               
site  drainage  systems  at all  correctional  facilities.   This                                                               
work  is   required  to  enable   continued   safe,  secure   and                                                               
efficient  operation  of  the  24-hour  incarceration  facility.                                                                
This  project  assists  in  providing  secure  confinement,   and                                                               
keeping  the  community   safe  from  offenders   placed  in  the                                                               
department's custody.                                                                                                           
                                                                                                                                
Commissioner    Schmidt    briefly   skimmed    the   next    two                                                               
appropriations.                                                                                                                 
                                                                                                                                
Co-Chair  Stedman  asked why  the deferred  maintenance  request                                                                
jumped  from $1  million in  FY2012, $10  million  in FY2013,  to                                                               
$16 million in FY2014.                                                                                                          
                                                                                                                                
LESLIE   HOUSTON,   DIRECTOR  OF   DIVISION   OF  ADMINISTRATIVE                                                                
SERVICES,  DEPARTMENT  OF CORRECTIONS   stated that  the numbers                                                                
represented   the   cost   of  the   overall   list   of   annual                                                               
maintenance and repairs in all facilities into FY2017.                                                                          
                                                                                                                                
Co-Chair  Stedman  asked  why  the  schedule  was  so irregular.                                                                
Ms.   Houston  thought   that   the   question  would   be   more                                                               
appropriately asked of OMB.                                                                                                     
                                                                                                                                
2:05:10 PM                                                                                                                    
                                                                                                                                
Senator  Ellis  pointed  out  to the  committee  that  there  had                                                               
been no discussion on second two appropriations.                                                                                
                                                                                                                                
Co-Chair   Stedman    requested   the   department    begin   the                                                               
presentation   again;   remembering   to   cite   the  reference                                                                
number,   project   title,    and  FY2012    request   for   each                                                               
appropriation and allocation.                                                                                                   
                                                                                                                                
Ms. Houston continued to list the capital requests.                                                                             
                                                                                                                                
RN 46995                                                                                                                        
Implementation of a Medical Information System                                                                                  
$1,000,000                                                                                                                      
Brief Summary and Statement of Need:                                                                                          
This   project   will  provide   funding   to   fully  implement                                                                
Medical  Information   System  within   the  Alaska  Corrections                                                                
Offender    Management    System    (ACOMS).     Offenders    are                                                               
transported   to  various   in-state  correctional   facilities,                                                                
community   residential   centers  and   to  the  Out  of   State                                                               
Contract  Facility  in Colorado.  This  system is  necessary  for                                                               
department  medical   staff to  track  all  medical  information                                                                
of an  offender  in one  system  that  is accessible  statewide.                                                                
This  project  assists   in providing   secure  confinement   and                                                               
keeping  the  community   safe  from  offenders   placed  in  the                                                               
department's custody.                                                                                                           
                                                                                                                                
Senator  McGuire   noticed  that   every  plan  to  implement   a                                                               
medical   information   system,   in   every  division,   had   a                                                               
request  for $1  million, she  urged the  committee  to find  out                                                               
how the $1 million figure had been determined.                                                                                  
                                                                                                                                
Co-Chair  Stedman  requested  further  clarification  of how  the                                                               
$1  million  request  was  determined.   Ms.  Houston  responded                                                                
that  the system  was  a consortium  of  various states  and  was                                                               
currently  being  joint-developed   with  Alaska  and  Utah.  The                                                               
system  was currently  being  used by  Utah. The  various  states                                                               
had  agreed that  each  state would  contribute  $1  million  for                                                               
the implementation of the system.                                                                                               
                                                                                                                                
RN 48960                                                                                                                        
Seward:   Spring   Creek   Correctional    Center   Seward   Land                                                               
Transfer                                                                                                                        
$250,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Funding   for  the   Spring  Creek   Correctional   Center   land                                                               
transfer  from  the  City  of Seward  to  the  State  of Alaska.                                                                
This  project  assists   in providing   secure  confinement   and                                                               
keeping  the  community   safe  from  offenders   placed  in  the                                                               
department's custody.                                                                                                           
                                                                                                                                
RN 50675                                                                                                                        
Community Jails Repairs, Renovations, and Equipment                                                                             
$150,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  project  will provide  funding  for  essential  safety  and                                                               
security  repairs,  remodeling,  renovations,  and  equipment  at                                                               
15  local  government   contract   jails.  These  jails  require                                                                
repairs  and modifications   to continue  operations  in support                                                                
of  the  department's   mission   to  provide   secure  offender                                                                
confinement,  thus  enhancing  community   safety.  This project                                                                
assists  in  providing   secure  confinement   and  keeping   the                                                               
community  safe  from   offenders  placed  in  the  department's                                                                
custody.                                                                                                                        
                                                                                                                                
Co-Chair  Stedman  recalled  that  the committee   had increased                                                                
the appropriation   in FY2011  from $100,000,  to  $150,000.  Ms.                                                               
Houston  acknowledged  that  in FY2011  the department  received                                                                
$100,000  dollars.   The  Senate  Finance   Committee  increased                                                                
the  request  to  $150,000;  the  increase   was  vetoed  by  the                                                               
governor.  Co-Chair  Stedman  wondered  if  the community   jails                                                               
would  be happy  with the  FY2012 request  of $150,000  dropping                                                                
down  to  $100,000   in  FY2013  through   FY2017.  Ms.  Houston                                                                
hoped  so. Co-Chair  Stedman  was  not  optimistic.  Ms. Houston                                                                
pointed   out  that   the  funding   was  in   addition  to   the                                                               
operating  contracts  issued  by  the department  to  assist  the                                                               
community jail operations.                                                                                                      
                                                                                                                                
2:06:03 PM                                                                                                                    
                                                                                                                                
RN 49376                                                                                                                        
Deferred Maintenance Projects                                                                                                   
$5,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  funds   a  few  of  the   department's   highest  deferred                                                                
maintenance   needs.  This  project  will  provide  funding   for                                                               
essential  renewal,  replacement,   renovation,  remodeling   and                                                               
repair  of electrical,   mechanical,  roofing,  walls,  fire  and                                                               
life  safety,  security,  structural,  food  service,  pavements                                                                
and   site   drainage    systems   at   multiple    correctional                                                                
facilities.  This  work is  required  to enable  continued  safe,                                                               
secure  and efficient  operation  of  the 24-hour  incarceration                                                                
facilities.   This   project   assists    in  providing    secure                                                               
confinement  and  keeping  the  community   safe from  offenders                                                                
placed in the department's custody.                                                                                             
                                                                                                                                
Ms.   Houston   stated   that   the   appropriation    would   be                                                               
allocated to 20 different projects.                                                                                             
                                                                                                                                
[A  complete  list  of DOC  capital  requests  can  be  found  on                                                               
the  Office  of Management  and  Budget  page  at the  Office  of                                                               
the Governor homepage.]                                                                                                         
                                                                                                                                
2:10:33 PM                                                                                                                    
                                                                                                                                
Alaska Court System                                                                                                           
                                                                                                                                
CHRIS  CHRISTENSEN,   DEPUTY  ADMINISTRATIVE   DIRECTOR,   ALASKA                                                               
COURT  SYSTEM,  discussed  the  court  system  agency  requests.                                                                
He  stated that  the  court  system did  not  have the  right  to                                                               
have  items  in  the  governor's  capital  bill.  Requests   were                                                               
submitted  directly  to the  legislature  and OMB.  The governor                                                                
put two  of the  projects  submitted for  FY2012  in the capital                                                                
bill.  He  referred   to  the  court  system   request  document                                                                
(Copy  on file).  He  stated the  document  listed  the projects                                                                
in  priority   order.  He  stressed   the  two  items  that   the                                                               
governor put in the bill.                                                                                                       
                                                                                                                                
Mr.  Christensen    discussed  Priority   1:   Anchorage   Campus                                                               
Project Renovation.                                                                                                             
                                                                                                                                
RN 43152                                                                                                                        
Anchorage Campus Court Renovation                                                                                               
$4,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
The  Anchorage   court   campus  is  comprised   of  three   main                                                               
buildings  -  the  Boney  Courthouse,  the  Nesbett  Courthouse,                                                                
and  the Snowden  Administration   Building.  This project  is  a                                                               
remodel  of all  but the  third  floor of  the Boney  Courthouse                                                                
and   a   minor   remodel   in   the   Nesbett   Courthouse    to                                                               
accommodate    additional   judges,    provide   safe   prisoner                                                                
transport  to additional  courtrooms   in the Boney  Courthouse,                                                                
and  provide  spaces   that  are  more  conducive  to  efficient                                                                
customer services for the public.                                                                                               
                                                                                                                                
Mr.  Christensen   said  that  FY2012  was  the  sixth  year  the                                                               
committee  had  seen the  request.  He added  that  the governor                                                                
had  made  substantial   vetoes  to  funding  agreed  on  by  the                                                               
committee   over   the   last  three   years.   Last   year   the                                                               
legislature  provided   the money  to  finish  the  project,  but                                                               
more than half if that money was vetoed.                                                                                        
                                                                                                                                
Co-Chair   Stedman   wondered   if  the   vetoes   had  had   any                                                               
monetary  repercussions.  Mr.  Christensen  replied  that in  the                                                               
beginning  it had  been estimated  that  the project  would  cost                                                               
$23  million.  Due to  the  phasing  that was  done  and various                                                                
cost  escalations,   if  it were  funded   in FY2012   the  total                                                               
increase  would  be $8 million  over  the original  estimate.  He                                                               
added  that  only $350,000  of  the  total increase   was due  to                                                               
scope  change.  The rest  was escalation  due  to the  amount  of                                                               
time  it has  taken  and the  way the  phasing  had  to be  done.                                                               
Co-Chair  Stedman  asked if  the state  had earned  more than  $8                                                               
million  on  the  interest  from  the  vetoes.  Mr.  Christensen                                                                
suspected not.                                                                                                                  
                                                                                                                                
Mr. Christensen   stated that  as the  population  and caseloads                                                                
in   Anchorage   had   increased,    judges   and   court   staff                                                               
additions  had  been moved  to  the older  Boney  Courthouse.  He                                                               
shared  that   the  old  building  had   approximately   30  more                                                               
years   of    life,   if   fully    renovated.    Alternatively,                                                                
demolishing  the  building   and building   a new  one  would  be                                                               
more  expensive.  He  relayed  that  the  ultimate  goal  was  to                                                               
have  the entire  superior  court; both  criminal  and civil,  in                                                               
the  new Nesbett  Courthouse,  and  the  entire district   court;                                                               
both  criminal  and  civil,  along with  the  supreme  court  and                                                               
the court of appeals in the Boney Courthouse.                                                                                   
                                                                                                                                
2:15:38 PM                                                                                                                    
                                                                                                                                
Co-Chair   Stedman  wondered   how  many   years  this  specific                                                                
request    had   been   brought    to   the   legislature.    Mr.                                                               
Christensen  replied   that it  was  now  in its  sixth  year  of                                                               
the request.                                                                                                                    
                                                                                                                                
Co-Chair  Stedman   hoped  it  would  not  be vetoed   again.  He                                                               
said  that the  committee  had  in the  past expressed  interest                                                                
in  expediting  the  remodel  of the  courthouses   in Anchorage                                                                
to  help facilitate   the flow  of  business.  He  stressed  that                                                               
the  executive  branch  vetoes  had  cost  the  state  money.  He                                                               
offered   committee   support  for   funding   the  project   and                                                               
expected that the current request would not be vetoed.                                                                          
                                                                                                                                
2:18:10 PM                                                                                                                    
                                                                                                                                
Mr.  Christensen   looked  at  Priority   2:  Electronic   Filing                                                               
System.  The item  was  not in  the governor's  capital  budget.                                                                
He  explained  that  the  project  total  would  be  $7,180,000,                                                                
with  $1,830   requested  for   FY2012.  To  keep  up  with   its                                                               
workload  without  adding  employees,  the  court  needs funding                                                                
to  implement   and  electronic   filing   system.  This   system                                                               
would  include  and  electric  document  management   system  and                                                               
would   be  fully   integrated   with   the  trial   court   case                                                               
management  system.  Mr. Christensen   explained  that currently                                                                
most  attorneys   prepare   work  processing   documents,   print                                                               
them  out,  and  physically   deliver  them  to  the  courthouse                                                                
with  the  appropriate   filing  fees  and  instructions.   Court                                                               
clerks   review    the   documents,    accept   payments,    type                                                               
information   into  the  courts  case   management  system,   and                                                               
place  the  documents   into  a  case  jacket.  Case   files  are                                                               
routed  to  the  appropriate   judge  or  staff  for  processing                                                                
until  the case  is closed.  Eventually,  closed  case files  are                                                               
routed  to central  location  for  scanning,  so that  images  of                                                               
the  documents  are  stored   in an  electronically   accessible                                                                
format.  With  electronic  filing,   documents  are  prepared  in                                                               
much  the same  way,  but are  sent and  stored  electronically,                                                                
allowing   the   case   to  be   managed   electronically    from                                                               
initiation through final disposition and archiving.                                                                             
                                                                                                                                
2:20:59 PM                                                                                                                    
                                                                                                                                
Mr.  Christensen   continued  to   Priority  3:  Court  Security                                                                
Projects.  He  testified  that FY2012  would  be the  ninth  year                                                               
that  security  money  had  been  requested.   The court   system                                                               
approached  the  legislature  nine  years  ago with  a long-term                                                                
plan  to upgrade  the 44  buildings the  system  operated  around                                                               
the  states.  The  legislature  had  provided  funding  for  five                                                               
of  the  previous   eight  fiscal  years.   The  FY2012  request                                                                
totaled  $1.2 million.  He  relayed that  it was  important  that                                                               
each    courthouse    maintain    effective    security,    which                                                               
simultaneously   ensures  fair, safe  and  orderly  trials  while                                                               
creating   a  public   atmosphere   of   respect   for  judicial                                                                
proceedings.                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  asked if  funds previously   appropriated  for                                                               
the   projects   by  the   committee   had   been   vetoed.   Mr.                                                               
Christensen  replied   that  in five  of  the  last  eight  years                                                               
the  legislature  had provided   the system  with  some security                                                                
funding.   Funds  had   been  used   for  the   installation   of                                                               
limited   access  systems   in  major  courthouses   with   metal                                                               
detectors,    video   surveillance    systems,   security    card                                                               
access, and DPS holding facilities had been upgraded.                                                                           
                                                                                                                                
2:22:57 PM                                                                                                                    
                                                                                                                                
Mr.  Christensen   discussed   priority   4:  Statewide  Remodel                                                                
Projects.  He  stated that  the  request  would fund  renovation                                                                
projects,   which  would  increase  staff   efficiency,  improve                                                                
access   for   the   public,    and   increase   efficiency    of                                                               
conducting   court   business.    Specific   projects   included                                                                
remodeling   clerk   benches  to   accommodate   two  clerks   in                                                               
courtrooms   in  Anchorage   Kodiak,   Palmer,   Valdez,   Kenai,                                                               
Bethel,  and  Delta Junction  the  project  was associated   with                                                               
the  No  Dark  Courtrooms   Project  that  the  legislature   had                                                               
funded   in  the  Operating   Budget  for   the  precious   three                                                               
fiscal   years.  Funds   would   be  used  for   remodeling   and                                                               
installation   of cooling  equipment   and  additional  power  in                                                               
server  rooms in  Kodiak,  Juneau and  Tok. Additional  projects                                                                
included  remodels   for  security,  safety  and  efficiency   in                                                               
areas  around  the state  including;  Fairbanks,   Valdez,  Delta                                                               
Junction    and   Ketchikan.   The    FY2012   request   totaled                                                                
$3,020,400.                                                                                                                     
                                                                                                                                
Co-Chair   Stedman   suggested   that  appropriating   the   $4.9                                                               
million  in total  in  FY2012,  would excel  orate  the renewal,                                                                
safety  and   renovation   projects.  Mr.   Christensen  replied                                                                
that  it could  work  that way.  Co-Chair  Stedman  thought  that                                                               
it should  be  considered.  He  pointed out  that  the financial                                                                
position  of  the state  in  2015  and 2016  was  unpredictable.                                                                
However,  the  state   was  currently  in  a  positive  economic                                                                
position.                                                                                                                       
                                                                                                                                
2:24:37 PM                                                                                                                    
                                                                                                                                
Mr.  Christensen   continued  to  discuss  Priority   5: Replace                                                                
Worn  Furniture  and  Repair   Specialized  Finishes   in  Public                                                               
Use  Spaces. He  said  that the  request  had been  seen before,                                                                
and emphasized  that  none of  the funds  were going  to be  used                                                               
to  fund  new furniture   for  judges  or court  employees.   The                                                               
furniture  and  building   furnishings  would  directly  benefit                                                                
the  public  in  assembly   rooms,  juror   deliberation   rooms,                                                               
courtrooms  and  lobby  areas.  Courthouses   opened  in Juneau,                                                                
Sitka,  Ketchikan,  Valdez,   Kodiak,  Delta  Junction  and  Fort                                                               
Yukon  between  1974  and  1976  were  operating  with  original                                                                
furniture.  He  added that  detailed  list  of all  furniture  to                                                               
be  replaced  in  each  courthouse   could  be  provided  to  the                                                               
committee. The FY2012 request totaled $1,145,100.                                                                               
                                                                                                                                
Mr.   Christensen    continued    to   Priority    6:   Deferred                                                                
Maintenance.   He  relayed   that  the  list  was  a  result   of                                                               
agency  participation  in  the Deferred  Maintenance  Taskforce.                                                                
The  FY2012  through  FY2017   request  totaled  $12.5  million.                                                                
The  FY2012 request  was  for $4.1  million.  He  testified  that                                                               
the  governor  had  requested   $2.5  million  of  the  deferred                                                                
maintenance  request  in the  Capital  Budget. The  $2.5 million                                                                
would   fund   the   top   four   projects    on  the   deferred                                                                
maintenance  priority  list,  all at  the Nesbett  Courthouse  in                                                               
Anchorage.                                                                                                                      
                                                                                                                                
Mr. Christensen   continued  to Priority  7: Statewide  Building                                                                
Code  and  Energy  Upgrade  for Court  Buildings.   He explained                                                                
that  there were  38 total  projects,  21 for which  funding  was                                                               
being   requested    in    FY2012.   The    upgrades   included;                                                                
earthquake  bracing  for library  shelving  and  boilers,  energy                                                               
efficient   light   fixtures   for  several   court   locations,                                                                
bringing  doors  in  certain   buildings  into  compliance   with                                                               
the  Americans   with   Disabilities   Act,   electrical   system                                                               
upgrades  in order  to meet  current  code, fire  alarm upgrades                                                                
and heating and ventilation systems.                                                                                            
                                                                                                                                
2:26:31 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  recommended  Mr. Christensen   meet with  each                                                               
committee  member  to discuss  the  needs  of the  court system.                                                                
The  committee  would  then  return  for  a  full discussion   of                                                               
individual committee members.                                                                                                   
                                                                                                                                
Senator   Ellis  wondered   if   there  had   been  coordination                                                                
between  the court  system  and  the Office  of Public  Advocacy                                                                
concerning  the  electronic   records  system.  Mr.  Christensen                                                                
replied    that    the    Multi-Agency    Justice    Integration                                                                
Consortium   (MAJIC)  was  a  collaborative   project   of  every                                                               
state  justice   agency,   as  well  as   a  number  of  federal                                                                
justice  agencies   operating  in  Alaska.  The  consortium   had                                                               
been  meeting for  several  years to  work to integrate  various                                                                
computer  systems   to  ensure  communication.   The  consortium                                                                
was  working   to  ensure   that  all  new   systems  are   fully                                                               
compatible.                                                                                                                     
                                                                                                                                
Department of Revenue                                                                                                         
                                                                                                                                
GINGER   BLAISDELL,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                
SERVICES,   DEPARTMENT   OF  REVENUE,   presented   the  capital                                                                
requests for the department.                                                                                                    
                                                                                                                                
RN 51568                                                                                                                        
Payment   Card  Industry   Data  Security   Standards  Statewide                                                                
Compliance                                                                                                                      
$2,000,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Payment   Card  Industry   Data  Security   Standard  (PCI   DSS)                                                               
Compliance  is  a mandatory  requirement   for all  transactions                                                                
involving  credit  card vendors,  online  merchants  and service                                                                
providers.   The  State   of  Alaska  is   considered  a  single                                                                
merchant   and   the  compliance   of   any  single   department                                                                
reflects  the  state  as  a whole.  This  project   reflects  the                                                               
costs  to  bring  all  State  of  Alaska  departments   that  are                                                               
currently accepting credit card payments into compliance.                                                                       
                                                                                                                                
Ms.   Blaisdell   said  that   a  statewide   survey   had   been                                                               
conducted  to  examine  how many  departments  collected  credit                                                                
card  information.  Each  of  the  departments  will  be subject                                                                
to  a security  scan  by  the  state's  bank  to identify   where                                                               
personal  identity   security  measures  need   to be  improved.                                                                
The  funding   would  be  divided   among  the  agencies   to  do                                                               
whatever remediation required for compliance.                                                                                   
                                                                                                                                
RN 51503                                                                                                                        
Child Support Services Computer Replacement Project-Phase 2                                                                     
$212,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  is Phase  2  of a  third  five-year  replacement  cycle  of                                                               
the  computer,  server  and  printer  replacement   project.  The                                                               
agency   objective    is   to   replace    personal   computers,                                                                
printers,  servers,  network  attached  storage  and  supporting                                                                
devices  such  as  Uninterruptible   Power Supplies   (UPS)  that                                                               
have  exceeded  their useful  life.  With  274 computers  in  use                                                               
within  the  division,  a  five  year  replacement  plan  has  55                                                               
computers  in that  situation,  as well  as several  servers  and                                                               
duplex printers.                                                                                                                
                                                                                                                                
Ms.  Blaisdell  stated that  FY2012  was the  first  year in  the                                                               
second five-year phase of the project.                                                                                          
                                                                                                                                
RN 42933                                                                                                                        
Permanent   Fund   Dividend    Division   Computer   Replacement                                                                
Project - Phase 5                                                                                                               
$266,500                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  request  is  for  the  fifth  year  of  the  PFD  Division                                                                
replacement    project   for   desktop    computers,   printers,                                                                
servers,    and   other    office    support    equipment.    The                                                               
replacement   cycle  is  based  on  the  warranty  and  expected                                                                
useful  life  of each  type  of  equipment.  Replacing  worn  out                                                               
and  obsolete  mission  critical  equipment  on a  planned  life-                                                               
cycle  basis  facilitates  maximum  employee  productivity  on  a                                                               
day-to-day  basis,   and enables   the  success  of  cost  saving                                                               
and  programmatic  goals  related  to PFD  Division  Performance                                                                
Management    targets   to   increase   staff   efficiency    and                                                               
effectiveness;    eliminate    process    bottlenecks;     reduce                                                               
operational   costs;  reduce  fraud;  promote  customer  service                                                                
and respect; and prepare for the future.                                                                                        
                                                                                                                                
Alaska Permanent Fund Corporation                                                                                             
                                                                                                                                
LAURA  ACHEE,  DIRECTOR  OF  ADMINISTRATION,   ALASKA  PERMANENT                                                                
FUND  CORPORATION,  DEPARTMENT  OF REVENUE,  discussed  the  next                                                               
project request.                                                                                                                
                                                                                                                                
RN 51504                                                                                                                        
Permanent    Fund   Integrated    Investment    Accounting    and                                                               
Reporting Software Analysis                                                                                                     
$150,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
This  funding  will  be used  to  analyze  the Alaska  Permanent                                                                
Fund   Corporation's    portfolio   accounting   and   reporting                                                                
system  needs  and  to assist  in  developing  a  scope  of  work                                                               
and   preliminary   budget   plan  aimed   at   implementing   an                                                               
integrated   system.   The  goal   is  to  have   an  integrated                                                                
portfolio   accounting  system  that  will   allow  the  APFC  to                                                               
better  track  our internally   traded Fixed  Income  investment                                                                
assets  and perhaps  any other  asset  type APFC  may hold,  such                                                               
as  Real  Estate,  Equities,  and  Alternative  assets.  Prudent                                                                
monitoring  and  reconciling  of  our investment  accounts  is  a                                                               
critical portion of the fiduciary duty of the APFC.                                                                             
                                                                                                                                
Ms. Achee  highlighted  the  $1,000,000  request  in FY2013.  She                                                               
stated  that the  figure was  an estimate,  set in  place in  the                                                               
event   that  the   corporation   was   able  to   implement   an                                                               
improved system.                                                                                                                
                                                                                                                                
2:34:50 PM                                                                                                                    
                                                                                                                                
Department of Labor                                                                                                           
                                                                                                                                
CLARK   BISHOP,   COMMISSIONER,    DEPARTMENT    OF   LABOR   AND                                                               
WORKFORCE DEVELOPMENT, introduced his support staff.                                                                            
                                                                                                                                
GUY  BELL, ASSISTANT   COMMISSIONER  AND  DIRECTOR,  DIVISION  OF                                                               
ADMINISTRATIVE   SERVICES,  DEPARTMENT  OF  LABOR  AND WORKFORCE                                                                
DEVELOPMENT, discussed the department's capital requests.                                                                       
                                                                                                                                
RN 51501                                                                                                                        
Maritime Vessel Simulator Projection System Upgrade                                                                             
$210,000                                                                                                                        
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
Alaska   Vocational    Technical   Center's   (AVTEC)   maritime                                                                
vessel  simulator  was installed  in FY2001  with  a Coast  Guard                                                               
Class  A rating.  It uses  a projection  system  with projectors                                                                
that   are  no  longer   supported   by  the   manufacturer,   3D                                                               
Perceptions.    Next   year   AVTEC's   simulator,   as   it   is                                                               
currently  configured,  will  no longer  qualify  for  a Class  A                                                               
rating.  Many maritime  classes  and  maritime  industry members                                                                
use  the simulator  for  training  exercises.  Through  training                                                                
AVTEC   supports    the   department's    mission   to   advance                                                                
opportunities for employment.                                                                                                   
                                                                                                                                
RN 51795                                                                                                                        
Fairbanks    Pipeline   Training    Canter    Construction    and                                                               
Equipment Purchase                                                                                                              
$500,000                                                                                                                        
                                                                                                                                
Brief Summary and Statement of Need:                                                                                          
The   Fairbanks   Pipeline    Training   Center   (FPTC)   is   a                                                               
public/private   partnership  that  prepares  Alaskans  for  work                                                               
in  the  high  demand   oil/gas  and  construction   industries.                                                                
This  project  is  for  a  grant  to  the  FPTC  to  be  used  in                                                               
combination   with   other   funds   toward   constructing    and                                                               
equipping   training    facilities.   Equipment   will   include                                                                
classroom   and  instruction   equipment.   FPTC   supports   the                                                               
department's mission by preparing Alaskans for jobs.                                                                            
                                                                                                                                
Co-Chair   Stedman    noted   that   there   were   no  targeted                                                                
appropriations   for  FY2013  through  FY2017,   but  that  there                                                               
had   been  appropriations    in  FY2006   through   FY2011.   He                                                               
wondered   why  the   committee   would  not   assume  continued                                                                
support   for   the   pipeline   training    center.   Mr.   Bell                                                               
responded  that  there was  a federal  act  that  had authorized                                                                
$3  million   toward  pipeline   training   center  construction                                                                
that  had   not  yet  been   released  for   appropriation.   All                                                               
interested   parties  were  working   toward  the  increase   and                                                               
release  of the  federal funding.  The  capital  request assumed                                                                
the federal funding.                                                                                                            
                                                                                                                                
2:39:18 PM                                                                                                                    
                                                                                                                                
RN 48821                                                                                                                        
AVTEC Deferred Maintenance                                                                                                      
$1,000,000                                                                                                                      
                                                                                                                                
Brief Summary and Statement of Need:                                                                                          
Baseline  requirements   for  facilities   deferred  maintenance                                                                
at   Alaska   Vocational    Technical    Center's   (AVTEC)    16                                                               
buildings  in  Seward,  include  general  facility  maintenance,                                                                
apartment  remodels   (1-2  per  year),  gym  safety  and  energy                                                               
upgrades,  diesel  shop ventilation   system replacement,   First                                                               
Lake  facility   electrical  panel   upgrade,  and  the  Student                                                                
Service  Center  underground   fuel  tank  replacement   with  an                                                               
above  ground   tank.  Through  training,   AVTEC  supports   the                                                               
Department's    mission     to   advance    opportunities     for                                                               
employment.                                                                                                                     
                                                                                                                                
Mr.  Bell   informed   the  committee   that   the  department's                                                                
current  deferred  maintenance  estimate  was approximately   $15                                                               
million.   Co-Chair   Stedman  reiterated   the   need  for   the                                                               
projects to be listed in priority order.                                                                                        
                                                                                                                                
2:41:46 PM                                                                                                                    
                                                                                                                                
Department of Law                                                                                                             
                                                                                                                                
DAVE  BLAISDELL,  DIRECTOR,  ADMINISTRATIVE  SERVICES  DIVISION,                                                                
DEPARTMENT OF LAW, discussed the project review listing.                                                                        
                                                                                                                                
RN 51785                                                                                                                        
Information Technology Projects                                                                                                 
$1,250,000                                                                                                                      
                                                                                                                              
Brief Summary and Statement of Need:                                                                                          
1)   $750,000   -   Upgrade   server   room,   continue    ProLaw                                                               
deployment   and Obtain   a Security   Audit  2)  $300,000  -  E-                                                               
Discovery   Solution;    and   3)  $200,000    -  Statutes    and                                                               
Regulations  Database  Search  Engine  development.  Each of  the                                                               
projects  will  continue   Law's  efforts  to  more  efficiently                                                                
prosecute   crime   and   provide   legal   services   to   state                                                               
government   for  the   protection   and  benefit   of  Alaska's                                                                
citizens.                                                                                                                       
                                                                                                                                
Mr.  Blaisdell  explained  that  the  funds  would  be allocated                                                                
as followed:                                                                                                                    
                                                                                                                                
   · $750,000 - Upgrade server room to a standard that will                                                                     
     accommodate    our  current   and  3-5   year  requirements                                                                
     including   upgrading  our  current  cabling  plant  in  the                                                               
     server   room,   installing   and   relocating   electrical                                                                
     circuits   and   lights,  wiring   for   and  installing   a                                                               
     server   room  UPS  and  installing   an  air  conditioning                                                                
     system.    The   funds    would   also    continue    ProLaw                                                               
     deployment       integrating       document      management                                                                
     functionality   of the  ProLaw  case  management  system  to                                                               
     improve  work  process  and  information  flow;  and obtain                                                                
     a Security Audit.                                                                                                          
                                                                                                                                
   · $300,000 - Identify and deploy an e-discovery solution                                                                     
     for  civil  litigation   and  Public  Records  Act  matters                                                                
     involving   a  few  pages   to  hundreds  of  thousands   of                                                               
     pages  of non-electronic   and electronic  records.  The  e-                                                               
     discovery   solution  would  be  used  for all  or  some  of                                                               
     the following discovery-related tasks:                                                                                     
                                                                                                                                
              1. identification,                                                                                                
              2. preservation and collection                                                                                    
              3. processing, review, and analysis                                                                               
              4. production                                                                                                     
              5. presentation                                                                                                   
                                                                                                                                
   · Deploying an e-discovery solution will involve                                                                             
     purchasing     hardware   (including     servers,   desktop                                                                
     computers    with   substantial   processing    and   memory                                                               
     capabilities,   and  large-volume  scanners)   and software                                                                
     licenses    to   collect,   process,    review,   organize,                                                                
     redact, and produce records.                                                                                               
                                                                                                                                
   · $200,000 - To improve the accuracy, performance and                                                                        
     accessibility    of  the  State   of  Alaska   Statute   and                                                               
     Regulations database.                                                                                                      
                                                                                                                                
2:44:06 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman discussed housekeeping.                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:44 PM.                                                                                           

Document Name Date/Time Subjects
SB 46 DEED ConstructionFinalList.pdf SFIN 3/16/2011 1:00:00 PM
SB 46
SB 46 DEED MaintenanceFinalList.pdf SFIN 3/16/2011 1:00:00 PM
SB 46