Legislature(2003 - 2004)

03/19/2003 09:01 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          March 19, 2003                                                                                      
                              9:01 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-03 # 24,  Side A                                                                                                            
SFC 03 # 24,  Side B                                                                                                            
SFC 03 # 25,  Side A                                                                                                            
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Gary Wilken convened  the meeting at approximately 9:01 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Ben Stevens                                                                                                             
                                                                                                                                
Also  Attending:   DOUG WOOLIVER,  Administrative  Attorney,  Alaska                                                          
Court System; NICO BUS,  Acting Director and Administrative Services                                                            
Manager,  Division  of  Support  Services,   Department  of  Natural                                                            
Resources;  KAREN  MORGAN,  Director,  Division   of Administrative                                                             
Services,   Department  of  Public   Safety;  JOEL  HARD,   Colonel,                                                            
Director, Division  of Fish and Wildlife  Protection, Department  of                                                            
Public Safety;                                                                                                                  
                                                                                                                                
Attending   via  Teleconference:     From  Anchorage:  MARK   MYERS,                                                          
Director, Division of Oil  and Gas, Department of Natural Resources;                                                            
DICK MYLIUS, Resource  Assessment and Development  Manager, Division                                                            
of Mining,  Land and Water,  Department of  Natural Resources;  PETE                                                            
PANARESE,   Acting  Director,   Division   of   Parks  and   Outdoor                                                            
Recreation,   Department    of   Natural   Resources;    KIM   RICE,                                                            
Administrative  Services, Division of Parks and Outdoor  Recreation,                                                            
Department  of  Natural Resources;  RICHARD  MCMAHON,  Chief,  Lands                                                            
Records  Information, Division  of Support  Services, Department  of                                                            
Natural Resources;  JEFF JOHNSON, Boating Law Administrator,  Office                                                            
of  Boating  Safety,  Division  of  Parks  and Outdoor  Recreation,                                                             
Department  of  Natural  Resources;   From  off-net  locations:  DON                                                            
BOWMAN, Major,  Administrative Commander,  Division of Alaska  State                                                            
Troopers, Department of  Public Safety; GARY POWELL, Director, State                                                            
Fire Marshal,  Division  of Fire  Prevention,  Department of  Public                                                            
Safety                                                                                                                          
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 100-APPROP: CAPITAL PROJECTS                                                                                                 
                                                                                                                                
The  Committee  heard overviews  of  requests  of the  Alaska  Court                                                            
System, the Department  of Natural Resources, and  the Department of                                                            
Public Safety. The bill was held in Committee                                                                                   
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 100                                                                                                        
     "An  Act making capital  appropriations  and reappropriations;                                                             
     capitalizing a fund;  making appropriations under art. IX, sec.                                                            
     17(c),   Constitution  of  the   State  of  Alaska,   from  the                                                            
     constitutional   budget reserve  fund;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
Alaska Court System                                                                                                           
                                                                                                                                
Co-Chair Wilken  noted that during  the previous hearing,  questions                                                            
were raised  on court  security  and he referenced  information  has                                                            
since been provided.                                                                                                            
                                                                                                                                
     Justice Information and Communication Project                                                                              
     $1,065,000 general funds                                                                                                   
     Reference No.: 37742                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     Phased Project                                                                                                             
     Statewide replacement of court system technology and                                                                       
     communications resources.                                                                                                  
                                                                                                                                
DOUG  WOOLIVER,  Administrative   Attorney,  Alaska   Court  System,                                                            
testified  that  this request  would  fund  the  third phase  of  an                                                            
essentially "on-going expense".  He told of funding appropriated the                                                            
previous legislative  session. He  informed that the private  sector                                                            
operates information  technology on  a five-year replacement  cycle,                                                            
and although  this is  also the goal  of the  Court, the process  is                                                            
behind schedule.  He stated that much  of the equipment has  been in                                                            
operation "well beyond its expected useful life".                                                                               
                                                                                                                                
Mr.  Wooliver  emphasized  that part  of  the requested  funding  is                                                            
necessary  for  the  case management  system,  which  the  Court  is                                                            
"bringing on-line".                                                                                                             
                                                                                                                                
Mr. Wooliver  furthered  that  some of  the funds  are necessary  to                                                            
replace  the Court's telephone  system. He  stressed the  particular                                                            
importance  of  the telephone  system  to  the  Court in  that  many                                                            
proceedings rely  on telephonic testimony. He spoke  to the time and                                                            
money saved  by conducting  hearings telephonically  for the  Court,                                                            
the  prosecutor,  the public  defender,  the  Department  of  Public                                                            
Safety   and  citizens.   He  remarked,   "because   of  the   great                                                            
geographical  distances in  our State, telephonic  hearings  are the                                                            
only practical way to conduct  a great number of court proceedings."                                                            
He pointed  out that  a modern  telephone system  facilitates  those                                                            
proceedings, while an outdated  system makes the process more costly                                                            
and difficult. He exampled  that most courts in the State are unable                                                            
to teleconference  more  than two  parties without  the employ  of a                                                            
teleconference  operator; an expensive  option. He commented  on the                                                            
legislature's   recognition   of  the   necessity   to  expand   its                                                            
teleconferencing  abilities,  and  the benefits  a  similar  upgrade                                                            
would afford the Court System.                                                                                                  
                                                                                                                                
     Deferred Maintenance Projects                                                                                              
     $1,008,000 general funds                                                                                                   
     Reference No.: 37745                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     High priority repairs to building components that have not                                                                 
     been sufficiently maintained and whose condition now threatens                                                             
     longevity of the building.                                                                                                 
                                                                                                                                
Mr. Wooliver  noted funds for these  projects were appropriated  the                                                            
previous  legislative  session utilizing  an  inter-agency  transfer                                                            
from the Department of  Administration. He listed the first priority                                                            
as the  replacement of the  Ketchikan courthouse  roof, which  is no                                                            
longer  waterproof  and buckets  are necessary  to  catch leaks.  He                                                            
detailed  the  subsequent  water   damage.  He  furthered  that  the                                                            
requested funds  would also be utilized  to repair the roofs  of the                                                            
Dimond Courthouse  in Juneau and the  courthouses in Fort  Yukon and                                                            
Tok and the administrative  building located in Anchorage.  He added                                                            
that other  deferred maintenance projects  in these locations  would                                                            
also be addressed with the funds.                                                                                               
                                                                                                                                
     Rural Court Technology, Phase IV                                                                                           
     $420,000 general funds                                                                                                     
     Reference No.: 37746                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     That Alaska Court  System is requesting $420,000 for the fourth                                                            
     phase of a four-phase,  multi-year project to replace courtroom                                                            
      audio recording and electronic sound systems statewide.                                                                   
                                                                                                                                
Mr.  Wooliver informed  that  this project  is to  replace  outdated                                                            
equipment that is no longer  manufactured or serviced. He noted this                                                            
request is the  third attempt to secure funding for  the final phase                                                            
of the  project. He compared  recording costs  to that of  employing                                                            
court reporters,  noting that the  only disadvantage is the  need to                                                            
replace equipment  every 15  years. He described  the new  recording                                                            
methods using  digital recordings  on compact discs, which  could be                                                            
electronically transferred, stored and cataloged.                                                                               
                                                                                                                                
     Statewide Court Building Code and Energy Upgrade                                                                           
     $400,000 general fund                                                                                                      
     Reference No.: 37747                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     Phased Project                                                                                                             
     Reconstruction    of   in-court   clerks'   workstations    for                                                            
     accommodation  of disabled persons and court  equipment. Second                                                            
     year funding addresses  [earthquake] bracing for tall shelving.                                                            
                                                                                                                                
Mr. Wooliver stated  that the Americans with Disabilities  Act (ADA)                                                            
requires wheelchair  access to jury  boxes, witness stands,  etc. He                                                            
furthered that the funds  would also be used to remodel and redesign                                                            
courtroom  benches located  in Fort Yukon,  Tok, Valdez, Juneau  and                                                            
Delta Junction to accommodate updated technology.                                                                               
                                                                                                                                
     Data Systems Security                                                                                                      
     $200,000 general funds                                                                                                     
     Reference No.: 37748                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     Phased Project                                                                                                             
     Technology  security improvements to address  physical security                                                            
     for the courts' telecommunication  assets, operational security                                                            
     to  protect  computer  systems and  functionality  to  remotely                                                            
     manage and tune network resources.                                                                                         
                                                                                                                                
Mr. Wooliver informed that  the mainframe of the statewide computer-                                                            
based system is  located in the Anchorage administrative  office and                                                            
must be secured. He added  that an emergency power supply would also                                                            
be installed  to  prevent disruption  statewide  in the  event  of a                                                            
power  outage in Anchorage.  He  stated that  software and  security                                                            
upgrades  would also be installed  in 15  other court locations.  He                                                            
emphasized  the importance of security  protection of computers  and                                                            
data, as more court information is stored electronically.                                                                       
                                                                                                                                
     Replacement Central Services Van                                                                                           
     $30,000 general funds                                                                                                      
     Reference No.: 37761                                                                                                       
     Category: Law and Justice                                                                                                  
     Location: Anchorage Areawide                                                                                               
     Election District: Anchorage Areawide                                                                                      
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     One-time Project                                                                                                           
     Replacement of van used to support court operations.                                                                       
                                                                                                                                
Mr. Wooliver read from  the Project Description/Justification, which                                                            
reads as follows.                                                                                                               
                                                                                                                                
     The  court system is  requesting $30,000  to replace its  model                                                            
     year   1990  van,  which  is   used  to  support  the   court's                                                            
     operations. The van  is used on a daily basis for local pick up                                                            
     and deliveries  of court equipment and supplies  as well as for                                                            
     periodically  transporting equipment  and personnel  to Palmer,                                                            
     Homer,  Kenai  and  Seward. As  our  case  management  software                                                            
     project is  deployed to more locations, the travel  to outlying                                                            
     areas will increase.                                                                                                       
                                                                                                                                
     The  court's only  van is over  12 years old  and has begun  to                                                            
     require   significant    maintenance   and   repairs.   General                                                            
     maintenance  is required for  all vehicles, but because  of the                                                            
     van's age,  maintenance and repairs are becoming  more frequent                                                            
     and  costly.  In FY  02, the  van  was repaired  for  corrosion                                                            
     damage  and  faulty  battery  charging.  The  corrosion  damage                                                            
     relates  to the disintegration  of the body of the vehicle  and                                                            
     the  faulty   charging  speaks   to  the  declination   of  the                                                            
     electrical system.  The frequency of unexpected repair problems                                                            
     and   physical  and   electrical  issues   creates  an   unsafe                                                            
     environment  for  court staff  operating  the  vehicle and  may                                                            
     cause delays in court operations.                                                                                          
                                                                                                                                
Department of Natural Resources                                                                                               
                                                                                                                                
NICO  BUS, Acting  Director  and  Administrative  Services  Manager,                                                            
Division  of Support  Services,  Department  of  Natural  Resources,                                                            
thanked Committee  for funds appropriated  the previous session  and                                                            
indicted the funds are being well applied.                                                                                      
                                                                                                                                
     Oil and Gas Seismic, Well, and Lease Data Acquisition                                                                      
     $250,000 general funds                                                                                                     
     Reference No.: 33977                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     On-going Project                                                                                                           
     Proper oversight of  industry exploration and development (E&D)                                                            
     activities  on state lands requires that the  Division maintain                                                            
     a degree  of technical  parity with  lessees and operators.  To                                                            
     accomplish its mission  of responsibly managing and encouraging                                                            
     development  of the State's petroleum  resources, the  Division                                                            
     must  have funding to  acquire, analyze,  and preserve  oil and                                                            
     gas  E&D  data,  to  maintain  the  technical  and engineering                                                             
     applications necessary  to do so, to acquire the information in                                                            
     quantity,   and  to do  so  in  formats   compatible  with  the                                                            
     Division's  analytical applications. This project  differs from                                                            
     previous  similar projects  in that it  now includes  reservoir                                                            
     engineering responsibilities.                                                                                              
                                                                                                                                
Mr. Bus  told of the Division  of Oil and  Gas' use of this  data to                                                            
determine  terms  and conditions  of  leases.  He stated  that  this                                                            
information is  available for purchase from the federal  government.                                                            
He furthered  that  the funds  would also  be utilized  to  purchase                                                            
equipment to store the acquired data.                                                                                           
                                                                                                                                
     Land Use Data Base System Upgrade for Improved Access                                                                      
     $200,000 general funds                                                                                                     
     Reference No.: 33909                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     Phased - Underway Project                                                                                                  
     This  project   updates  the  central  Department   of  Natural                                                            
     Resources   business  system.  The  present   system  does  not                                                            
     adequately  meet the  needs of Department  customers or  staff.                                                            
     The functionality  is too limited; this results in higher costs                                                            
     of doing business  for the State and the customer. For example,                                                            
     data  entry is  slow,  reporting is  inadequate,  and too  many                                                            
     paper  forms  are involved.  The  present  system  does not  do                                                            
     enough  to support the Department's  basic business  processes.                                                            
                                                                                                                                
     Department  of Natural Resources  will continue to realign  its                                                            
     essential  business   processes,  as  defined  by  statute  and                                                            
     regulation,  with  its information  system. It  will raise  the                                                            
     productivity of Department  staff to accomplish higher per unit                                                            
     volumes of work by  simplifying the manner in which information                                                            
     is entered.                                                                                                                
                                                                                                                                
Mr. Bus  told of the significant  progress  to modernize the  system                                                            
undertaken with  the funds appropriated in the current  fiscal year.                                                            
He stated  the public  has better  access to  information and  could                                                            
submit bids for land purchases and permit applications on-line.                                                                 
                                                                                                                                
Mr. Bus  stated the additional  funds would  be utilized to  provide                                                            
electronic permitting,  which would assist in the Governor's goal to                                                            
streamline processes.                                                                                                           
                                                                                                                                
Co-Chair Wilken  noted this project has been funded  in FY 01 and FY                                                            
02 and the  project would be completed  at the conclusion  of FY 05.                                                            
                                                                                                                                
Mr. Bus affirmed this is the intent.                                                                                            
                                                                                                                                
Senator  Taylor asked  if this  equipment would  be compatible  with                                                            
other State computer equipment.                                                                                                 
                                                                                                                                
Mr.  Bus  answered   it  would  be  compatible  and  described   the                                                            
interagency access.                                                                                                             
                                                                                                                                
Co-Chair Wilken recognized  those Department personnel available via                                                            
teleconference to answer questions.                                                                                             
                                                                                                                                
      Oil and Gas Leasing and Accounting Systems Integration                                                                    
     $150,000 general funds                                                                                                     
     Reference No.: 37969                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     Phased - New Project                                                                                                       
     This CIP  [Capital Improvement Project] is requested  to meet a                                                            
     critical  need to redesign and  expand the exiting Oil  and Gas                                                            
     Royalty Accounting  System (OGRA) capabilities. The Division of                                                            
     Oil and Gas  Management and Commercial Analysts  have a need to                                                            
     extract  royalty accounting and  lease data. The FY  04 capital                                                            
     project  will redesign just the  existing Accounting  and Lease                                                            
     Systems to  eliminate duplications between the  two systems and                                                            
     to enhance  reporting and audit capabilities.  A September 2002                                                            
     completed  external review verified the internal  assessment by                                                            
     the  Department that  the database  needs to  be redesigned  in                                                            
     order to  meet current and expected needs of  the State, and to                                                            
     maximize revenue generation and valuation.                                                                                 
                                                                                                                                
Mr. Bus overviewed  this request, which was anticipated  to take two                                                            
years to complete.                                                                                                              
                                                                                                                                
     Oil and Gas Reservoir Potential for Gas in the Brooks Range                                                                
     $50,000 general funds                                                                                                      
     Reference No.: 37736                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     One-time Project                                                                                                           
     Managed  by  the  Division  of Oil  and  Gas  and accomplished                                                             
     cooperatively  with  the  Energy  Section  of the  Division  of                                                            
     Geological  and  Geophysical Surveys  and  the U.S.  Geological                                                            
     Survey,  this project  seeks  to stimulate  private-sector  gas                                                            
     exploration in the  Brooks Range foothills. Very few wells have                                                            
     been  drilled in the  area and potential  conventional  natural                                                            
     gas   resources   and  reservoir   producibility   are   poorly                                                            
     understood.  New data needed to answer these  questions include                                                            
     a detailed  subsurface  stratigraphic  framework and  reservoir                                                            
     quality  information,   including  porosity  and  permeability                                                             
     estimates.   These  data  are   critical  to  developing   this                                                            
     potentially huge resource.                                                                                                 
                                                                                                                                
Mr. Bus  spoke to the significant  interest  in exploration  in this                                                            
area.  He stated this  funding  would "support  the acquisition  and                                                            
analysis of  the baseline data needed  for increased private  sector                                                            
exploration  and development."  He clarified  the acquisition  would                                                            
entail collection of rock samplings.                                                                                            
                                                                                                                                
MARK MYERS, Director, Division of Oil and Gas, Department of                                                                    
Natural Resources, testified via teleconference from Anchorage that                                                             
he was available to answer questions.                                                                                           
                                                                                                                                
     Navigable Waters Assertions                                                                                                
     $188,700 general fund                                                                                                      
     Reference No.: 37765                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2007                                                                           
     Phased Project                                                                                                             
     This project would  fund the State's assertion of ownership for                                                            
     navigable  waters, including  filing applications with  the BLM                                                            
     [federal   Bureau  of  Land  Management]  for  disclaimers   of                                                            
     interest,   research  to  make   navigability  determinations,                                                             
     identify   navigable   waters,   and   improve   state-federal                                                             
     coordination   on  making   navigability   determinations   and                                                            
     decisions. Most significantly,  this CIP would fund the State's                                                            
     efforts to prepare  and file applications with the US Bureau of                                                            
     Land Management  for "Recordable  Disclaimers of Interests"  to                                                            
     clear State title to certain navigable waters.                                                                             
                                                                                                                                
Mr. Bus read a  portion of the Project Description/Justification  as                                                            
follows.                                                                                                                        
                                                                                                                                
     In  January  2003, the  United  States Department  of  Interior                                                            
     adopted  a  revised  regulation  that  allows  states  to  file                                                            
     requests  for "Recordable Disclaimers  of Interest"  to resolve                                                            
     land title issues  with the federal government. This regulation                                                            
     allows  the Federal Government  to disclaim ownership  of state                                                            
     owned  navigable   waters.  The  state  needs   to  seize  this                                                            
     opportunity  to resolve  the  issue of ownership  of  navigable                                                            
     waters.  The first application  was submitted  by the  State on                                                            
     February  14, 2003,  for the  Black River,  a tributary  of the                                                            
     Porcupine   River  in  eastern   Alaska.  With  this   funding,                                                            
     applications  could  be filed  for several  hundred  additional                                                            
     rivers  within   the  next  year.  These  would   primarily  be                                                            
     applications  for rivers that BLM has determined  navigable. In                                                            
     future years,  the CIP would fund research that  would identify                                                            
     hundreds  of  additional streams  that  are navigable  and  the                                                            
     State could file applications for recordable disclaimers.                                                                  
                                                                                                                                
Co-Chair  Wilken asked if  this would be the  first year of  funding                                                            
for this project.                                                                                                               
                                                                                                                                
Mr. Bus affirmed.                                                                                                               
                                                                                                                                
Senator Taylor asked if  the funds would be allocated for Department                                                            
of Natural Resources  personnel or for Department  of Law personnel.                                                            
                                                                                                                                
Mr. Bus replied  that the funding  would be utilized for  Department                                                            
of  Natural  Resources  personnel,  including  a  Natural  Resources                                                            
Manager, although  the Department would coordinate  efforts with the                                                            
Department of Law and the  Department of Fish and Game. He described                                                            
the duties  of the  Department of  Natural Resources  staff on  this                                                            
project in completing paperwork and cartography.                                                                                
                                                                                                                                
DICK MYLIUS, Resource  Assessment and Development  Manager, Division                                                            
of  Mining,  Land  and  Water,  Department  of  Natural   Resources,                                                            
testified via  teleconference from Anchorage that  the Department of                                                            
Law determined  that no additional staff would be  necessary in that                                                            
Department to  undertake its portion of this recordable  disclaimers                                                            
project. He  added that before the  updated federal regulation,  the                                                            
only  method to  establish  title  was to  file actions,  which  did                                                            
require significant assistance from the Department of Law.                                                                      
                                                                                                                                
Co-Chair Wilken  asked if Mr. Mylius would administer  this program.                                                            
                                                                                                                                
Mr. Mylius affirmed.                                                                                                            
                                                                                                                                
Senator Taylor  referenced  a decision rendered  in a "three  rivers                                                            
case", whether the US Department  of Interior is now recognizing the                                                            
"State's  rightful claims"  to navigable waters.  He also wanted  to                                                            
know  if  this  project  includes  the  "subsurface   fee"  in  that                                                            
documented  federal assurance  would be  granted acknowledging  that                                                            
the State  owns subsurface  lands  located under  navigable  waters,                                                            
including waters along the Pacific Coast.                                                                                       
                                                                                                                                
Mr. Mylius replied on behalf  of the Department of Natural Resources                                                            
in saying,  "that's our hope" that  the federal BLM would  recognize                                                            
the State's  claim. He relayed  that the  federal government  is now                                                            
willing  to issue  recordable disclaimers  on waters  it agrees  are                                                            
navigable,  including the  Black River,  which was  involved in  the                                                            
aforementioned  three  rivers situation.  He qualified  the  federal                                                            
agency must  undergo an extensive  public notice and public  comment                                                            
procedure before  final decisions  could be made. He noted  interest                                                            
in the  matter of conservation  organizations  that could  influence                                                            
the agency.                                                                                                                     
                                                                                                                                
Senator Taylor commented this is a change in federal policy.                                                                    
                                                                                                                                
Co-Chair Wilken asked why  this is a capital budget item rather than                                                            
operating.                                                                                                                      
                                                                                                                                
Mr.  Bus  replied  that  this  is a  new  program  and  because  new                                                            
positions would be added,  it was determined more appropriate in the                                                            
capital budget,  although he agreed that most of the  expenses would                                                            
be  operational   and  could   be  funded   through  an   operations                                                            
appropriation.                                                                                                                  
                                                                                                                                
     Improve Forest Productivity in Southern Southeast Alaska                                                                   
     $100,000 general funds                                                                                                     
     Reference No.: 37739                                                                                                       
     Category: Development                                                                                                      
     Location: Prince of Wales Island                                                                                           
     Election District: Cordova/Southeast Island                                                                                
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     One-time Project                                                                                                           
     To sustain a long-term  timber supply to value-added processors                                                            
     in SE  Alaska, we must keep managed  stands productive.  Forest                                                            
     lands  in SE are the most productive  in Alaska, and  the State                                                            
     owns little land in  this area. To maximize production from out                                                            
     limited land  base, we must thin young, overstocked  stands. We                                                            
     inherited  a backlog  of overstocked  State  land that was  cut                                                            
     over by  the USFS. Overstocking  slows tree growth,  delays re-                                                            
     harvest,  and degrades  wildlife habitat.  With CIP funding  we                                                            
     will  thin  these  stands  to  accelerate   growth  for  future                                                            
     harvest, maintain  the rotation age, ensure sustainable harvest                                                            
     levels, and increase habitat benefits.                                                                                     
                                                                                                                                
Mr.  Bus  added  that  private  contractors  would  be  employed  to                                                            
undertake this effort on  approximately 240 acres on Prince of Wales                                                            
Island. He  anticipated a  future gain of  $1.3 million because  the                                                            
remaining tress  would mature sooner,  grow larger and subsequently                                                             
provide higher value.                                                                                                           
                                                                                                                                
     State Park Emergency Repairs                                                                                               
     $120,000 general funds                                                                                                     
     Reference No.: 6843                                                                                                        
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     On-going Project                                                                                                           
     Alaskans comprise  80% of the almost 4 million annual visits to                                                            
     the Alaska  State Park system. Many of the State  parks are old                                                            
     and  broken ($42  million  in identified  deferred maintenance                                                             
     needs)  and  present potential  health  and safety  hazards  to                                                            
     visitors.  The  project will  fund  emergency  repairs to  park                                                            
     units  to protect  visitor  health  and safety.  Projects  will                                                            
     upgrade  or replace  the basic  facilities  at parks  including                                                            
     outhouses,  drinking  water  systems,  safe  access  roads  and                                                            
     trails,  safe  shelter from  harsh  weather, and  safe  camping                                                            
     sites.                                                                                                                     
                                                                                                                                
Mr. Bus commented this is a "bare minimum request".                                                                             
                                                                                                                                
Co-Chair  Wilken noted  this  request is  about half  the amount  of                                                            
previous appropriations  of the past  seven years. He asked  if this                                                            
reflects that  the State is "catching up" with deferred  maintenance                                                            
projects, or whether fewer funds are being requested.                                                                           
                                                                                                                                
Mr. Bus agreed  the request is for  a lesser amount than  past years                                                            
and acknowledged more projects  could be addressed. He informed that                                                            
the Department  is investigating  privitization  of some units,  and                                                            
only "dire needs" would  be addressed until the management status of                                                            
all parks is determined.                                                                                                        
                                                                                                                                
     National Historic Preservation Fund Federal Grant Program                                                                  
     $950,000 federal receipts                                                                                                  
     $50,000 G/F Match                                                                                                          
     Reference No.: 6865                                                                                                        
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     On-going Project                                                                                                           
     The National  Historic Preservation Fund is a  federal matching                                                            
     grant  project  with a  60% federal  and  40% State  match.  It                                                            
     provides  the  State  a  basic historic  preservation   program                                                            
     including  planning,  survey,  inventory, project  review,  and                                                            
     public   education.  The  federal/state   partnership   program                                                            
     created  in the National Historic  Preservation Act  requires a                                                            
     State  historic preservation  program to  meet basic levels  of                                                            
     professional   staffing  and   program  services.  Cooperative                                                             
     agreements  with  federal  agencies  and  grants  from  federal                                                            
     programs,  which do not require  match, fund cultural  resource                                                            
     management projects.                                                                                                       
                                                                                                                                
Mr. Bus  explained this  longstanding federal  pass-through  program                                                            
administered   by  the   Department,   in  which   communities   and                                                            
organizations  apply  for  grants.  He described  the  review  board                                                            
process  of prioritizing  and recommending  projects.  He noted  the                                                            
communities and organizations must provide matching funds.                                                                      
                                                                                                                                
Co-Chair Wilken asked why matching general funds are required.                                                                  
                                                                                                                                
Mr. Bus replied  the organizations  and communities must  provide 40                                                            
percent  matching funds  to receive  the  grant and  the State  must                                                            
provide  up  to  $50,000  matching  funds  for  administrative   and                                                            
oversight of the program.                                                                                                       
                                                                                                                                
     Forestry Federal Funded Grants for Fire and Forest                                                                         
     $2,800,000 federal receipts                                                                                                
     Reference No.: 37769                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     This  project provides  receipt authority  for federal  funding                                                            
     including  that  provided  to  the State  through  the  federal                                                            
     government's  National  Fire  Plan.  Federal  funding  provides                                                            
     specific  program support  including that  intended to  improve                                                            
     the  ability of  the  State and  local government  to  educate,                                                            
     mitigate,  prepare for and respond  to the threats of  wildland                                                            
     fire.  This authority, for primarily  US Forest Service  funds,                                                            
     will   allow  State  participation   in  cooperative   forestry                                                            
     projects in which  the State and federal government have mutual                                                            
     interest  to participate.  Such  projects  also include  forest                                                            
     health initiatives, insect and disease studies, internships,                                                               
     and community and urban forest inventories and planning.                                                                   
                                                                                                                                
Mr. Bus  informed  that each  year the  US Forest  Service  provides                                                            
funds  for insect  and disease  projects,  and urban  and  community                                                            
projects.  He stated that  the majority of  funds are allocated  for                                                            
contractual services  and equipment purchases for  local governments                                                            
and volunteer fire departments.                                                                                                 
                                                                                                                                
Senator Taylor requested an explanation of the program.                                                                         
                                                                                                                                
Mr. Bus told of the "grouping  of different federal projects" within                                                            
this  item, one  of which  is  the insect  and disease  project.  He                                                            
stated  he would provide  further  information on  this project.  He                                                            
pointed   out   that   insect   and   disease   damage  contributes                                                             
significantly to fire hazard.                                                                                                   
                                                                                                                                
Senator Taylor asked about  efforts undertaken to address insect and                                                            
disease damage on State lands.                                                                                                  
                                                                                                                                
Mr. Bus clarified this  program addresses all land in Alaska, rather                                                            
than only State-owned land.  He noted the areas most threatened with                                                            
insect and diseases are  the Kenai Peninsula and the Mat-Su valleys,                                                            
in which no State forests are located.                                                                                          
                                                                                                                                
Senator  Taylor  expounded  on  the damage  caused  to  forests  and                                                            
asserted actions in addition  to conducting studies are needed, such                                                            
as salvage.                                                                                                                     
                                                                                                                                
Mr. Bus replied  the Department offered much of the  affected State-                                                            
owned forest  for timber sales; however,  because of the  insect and                                                            
disease damage, no interest was expressed.                                                                                      
                                                                                                                                
Senator  Taylor asked  if the  Department conduced  salvage  efforts                                                            
itself or contracted to another entity to do so.                                                                                
                                                                                                                                
Mr. Bus responded  that funds would be necessary to  undertake these                                                            
efforts   and   that   the   Department   has   requested    capital                                                            
appropriations  in the past  for this purpose.  He stated that  some                                                            
funds were  provided for  the current fiscal  year and that  salvage                                                            
efforts were underway in the Kenai Peninsula.                                                                                   
                                                                                                                                
Senator  Taylor  continued to  speak  to the  reduced  value of  the                                                            
affected timber  and increased fire  hazard. He preferred  the State                                                            
"manage that environment" rather than allow a fire to occur.                                                                    
                                                                                                                                
Mr.  Bus commented  that  some of  the  funds appropriated  to  this                                                            
program are  used to contract with  local fire crews to reduce  fire                                                            
hazards, in such areas  as the Anchorage hillside. He stated that it                                                            
is difficult  to attract bidders due  to low commodities  on timber.                                                            
                                                                                                                                
Co-Chair  Wilken  referenced the  federal  match requirement  of  50                                                            
percent "in-kind general  funds". He asked the definition of in kind                                                            
general  funds  and  whether  they   could  be  utilized  for  other                                                            
purposes.                                                                                                                       
                                                                                                                                
Mr. Bus explained that  some "regularly appropriated program monies"                                                            
qualify for this matching  requirement and thus additional funds are                                                            
not necessary.                                                                                                                  
                                                                                                                                
Co-Chair Wilken  asked if the total  amount of this capital  request                                                            
is $4.2 million.                                                                                                                
                                                                                                                                
Mr.  Bus clarified  some  of  the  projects are  "100  percent  pass                                                            
through"  and do  not require  a  50 percent  in kind  general  fund                                                            
match.  He indicated  he would  provide  a listing  of the  specific                                                            
projects.                                                                                                                       
                                                                                                                                
Co-Chair Wilken  again asked if the in kind general  funds be "spent                                                            
on something else."                                                                                                             
                                                                                                                                
Mr. Bus replied  the in kind general  funds are currently  allocated                                                            
for timber management purposes.                                                                                                 
                                                                                                                                
Co-Chair  Wilken questioned  why the  outline of  the item does  not                                                            
indicate the State match requirement.                                                                                           
                                                                                                                                
Mr. Bus  shared the  observation and  stated he  would research  the                                                            
matter.                                                                                                                         
                                                                                                                                
     Abandoned Mine Lands Reclamation Federal Program                                                                           
     $1,500,000 federal receipts                                                                                                
     Reference No.: 6855                                                                                                        
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     The Legislature enacted  the Alaska Surface Coal Mining Control                                                            
     and Reclamation  Act in 1983  (AS 27.21 and 11 AAC 90).  One of                                                            
     the main purposes  of the act was to promote the reclamation of                                                            
     areas  mined  and  left  without  adequate  reclamation  before                                                            
     enactment   of   the  federal   Surface  Mining   Control   and                                                            
     Reclamation  Act of  1977, that  endangered  public health  and                                                            
     safety,   that  substantially  degraded   the  quality  of  the                                                            
     environment  and  prevented  the beneficial  use  of or  caused                                                            
     damage to land and water resources.                                                                                        
                                                                                                                                
Mr. Bus  relayed that the  Department has  identified 16 coal  sites                                                            
and 124 non-coal  sites as hazardous  and that require reclamation,                                                             
at  a total  cost of  $36  million.  He stated  the amount  of  this                                                            
request  would  be  utilized  to  address  those  sites  of  highest                                                            
priority  and  that  the  program  would  continue  to  address  the                                                            
identified sites as long as funding is appropriated.                                                                            
                                                                                                                                
     National Coastal Wetland Conservation Grants Program                                                                       
     $2,500,000 federal receipts                                                                                                
     Reference No.: 37962                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     On-going Project                                                                                                           
     National  Coastal Wetland  Conservation  Grants, from the  U.S.                                                            
     Fish and  Wildlife Service (Department of [the]  Interior), are                                                            
     available  to the  Division of  Parks, working  in cooperation                                                             
     with local  governments and private  non-profit organizations,                                                             
     to secure protection of valuable wetlands across Alaska.                                                                   
                                                                                                                                
Mr.  Bus noted  funding  for  this  program is  passed  through  the                                                            
Department   as  grants  for  organizations   and  communities.   He                                                            
explained this  specific request would  provide funding to  purchase                                                            
land located on Afognak Island, near Kodiak.                                                                                    
                                                                                                                                
Senator  Taylor recalled  the  land in  question was  selected  by a                                                            
"series  of villages" through  the Alaska  Native Claims  Settlement                                                            
Act (ANCSA)  for  commercial and  recreational  purposes to  provide                                                            
jobs to residents.  He remarked that  if this purchase, facilitated                                                             
by the Exxon  Valdez Oil Spill (EVOS)  Trustee Council, transpires,                                                             
the  land  would be  removed  from  "the  tax rolls"  and  would  be                                                            
eliminated as a resource  base to provide jobs. He asked if the land                                                            
would be "locked up" as a wilderness area.                                                                                      
                                                                                                                                
Mr. Bus reiterated that  the Department would only serve as a "pass-                                                            
through" of  this funding and that  the parties involved  would have                                                            
to speak  to their reasoning.  He pointed  out that the sellers  and                                                            
buyers are willing to participate.                                                                                              
                                                                                                                                
Senator  Taylor surmised  that a  significant  purchase price  would                                                            
provide incentive for sellers.  He compared the Department's role as                                                            
a pass-through entity to  those indirectly involved in the Holocaust                                                            
of World  War II. He  charged that  the State  is responsible  for a                                                            
policy  that is "continuing  to  erode" private  land ownership.  He                                                            
spoke to the amount  of land the EVOS organization  has purchased to                                                            
date saying he found the practice "offensive".                                                                                  
                                                                                                                                
Co-Chair Green suggested  reviewing the benefactors and contributors                                                            
to the Rocky  Mountain Elk Foundation,  the organization  requesting                                                            
the grant  to purchase  the land  on Afognak  Island. She  predicted                                                            
this information would be insightful.                                                                                           
                                                                                                                                
Co-Chair  Wilken asked  the party that  would own  the land  if this                                                            
transaction were approved and the sale proceeded.                                                                               
                                                                                                                                
Mr. Bus  answered that  the Rocky  Mountain Elk  Foundation and  the                                                            
Kodiak Bear Trust would have ownership.                                                                                         
                                                                                                                                
Co-Chair Wilken  asked the amount  of acreage and whether  this land                                                            
could be used for other purposes.                                                                                               
                                                                                                                                
Mr. Bus replied the amount  involved in this project is 5,000 acres.                                                            
He pointed  out some  of the  land is  currently owned  by the  EVOS                                                            
Trustee Counsel  and that  the funds would  be used to purchase  the                                                            
timber rights on this property.                                                                                                 
                                                                                                                                
Co-Chair Wilken  asked the consequences  if the legislature  decided                                                            
against authorizing the appropriation.                                                                                          
                                                                                                                                
Mr.  Bus  answered   the  organization  would  not  "execute   their                                                            
transaction".                                                                                                                   
                                                                                                                                
Senator Bunde asked the balance of the EVOS fund.                                                                               
                                                                                                                                
Mr. Bus stated he would provide the information.                                                                                
                                                                                                                                
PETE  PANARESE,  Acting  Director,  Division  of Parks  and  Outdoor                                                            
Recreation,   Department   of  Natural  Resources,   testified   via                                                            
teleconference  from Anchorage  to clarify  the process whereby  the                                                            
Department  would  appropriate   the  federal  funds  to  the  Rocky                                                            
Mountain Elk Foundation  to combine with matching  funds to purchase                                                            
the land. He  corrected that the State  would have ownership  of the                                                            
land, since the Foundation  is not "in the land management business"                                                            
but rather acquires land for habitat protection purposes.                                                                       
                                                                                                                                
Co-Chair Wilken asked who  owns the remainder of the 5,000 acres not                                                            
owned by EVOS.                                                                                                                  
                                                                                                                                
Mr. Panarese replied he would research the matter.                                                                              
                                                                                                                                
Co-Chair Green  asked whether the  Rocky Mountain Elk Foundation  is                                                            
affiliated with the Rocky Mountain Institute.                                                                                   
                                                                                                                                
Mr. Panarese was unsure.                                                                                                        
                                                                                                                                
Senator Bunde  informed that the Rocky Mountain Elk  Foundation is a                                                            
"pro  elk hunting"  organization,  similar  to the  Ducks  Unlimited                                                            
organization,  which promotes habitat  and other matters  related to                                                            
hunting.                                                                                                                        
                                                                                                                                
     Alaska  Oil and  Gas Exploration,  Development  and  Permitting                                                            
     Federal DOE Project                                                                                                        
     $737,700 federal receipts                                                                                                  
     Reference No.: 37770                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     Phased Project                                                                                                             
     This is  a federal Department  of Energy grant project  for the                                                            
     Alaska  Oil and Gas  Exploration, Development,  and  Permitting                                                            
     project. The goal  of the program is to increase the production                                                            
     of  domestic  oil.  The intent  of  the  Alaska project  is  to                                                            
     increase  development  activity  from small  to moderate  sized                                                            
     firms  by providing them with  extensive public information  on                                                            
     existing wells via the Internet.                                                                                           
                                                                                                                                
Mr.  Bus informed  this project  was  presented to  the Legislative                                                             
Budget and Audit Committee  in October 2002 and received approval to                                                            
receive and expend $850,000,  of a total $1.5 million grant, at that                                                            
time. He stated  it is a cooperative project between  the Department                                                            
of  Natural   Resources,  the  Alaska   Oil  and  Gas  Conservation                                                             
Commission,  the  Department  of Fish  and Game  and  the Office  of                                                            
Coastal  Zone  Management.  He  informed  that the  funds  would  be                                                            
expended to obtain  well data to make available on  the Internet for                                                            
independent developers.                                                                                                         
                                                                                                                                
Co-Chair Wilken asked if this is a phased project.                                                                              
                                                                                                                                
Mr. Bus  explained the project  began in FY  03 and would likely  be                                                            
completed in FY 04.                                                                                                             
                                                                                                                                
     Alaska Boating Safety                                                                                                      
     $600,000 federal receipts                                                                                                  
     $120,000 receipt supported services                                                                                        
     Reference No.: 32553                                                                                                       
     Category: Health/Human Services                                                                                            
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     The  goal of the  Alaska Boating  Safety Program  is to  reduce                                                            
     preventable   boating   fatalities  and   other  accidents   by                                                            
     providing   programs  that  promote  safety   for  persons  and                                                            
     property in and connected  to the use, operation, and equipment                                                            
     of  boats,  and encourage  safe  and enjoyable  non-commercial                                                             
     boating in Alaska.                                                                                                         
                                                                                                                                
Mr.  Bus  pointed  out  the receipt-supported   services  funds  are                                                            
generated from  user fees. He said the project funds  boating safety                                                            
education programs  and the Kids Don't Float program,  among others.                                                            
                                                                                                                                
                                                                                                                                
SFC 03 # 24, Side B 09:49 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Mr.  Bus  continued  speaking  to the  reduced  fatality  rates  and                                                            
boating  related  accidents  realized  since  the inception  of  the                                                            
program.                                                                                                                        
                                                                                                                                
Co-Chair  Green understood  no general  funds would  be involved  in                                                            
this request.                                                                                                                   
                                                                                                                                
Co-Chair  Wilken  explained  the  receipt-supported   services  were                                                            
collected  by the Division  of Motor  Vehicles in  the form  of boat                                                            
registration fees.                                                                                                              
                                                                                                                                
Mr. Bus  furthered that  funding for  this program  has always  been                                                            
required. Before  legislation was  adopted to change oversight  from                                                            
the federal government  to the State government, he stated municipal                                                            
governments and other organizations  provided the matching funds. He                                                            
informed  that the use of  the receipt supported  services  funds in                                                            
this request  would allow the program  to secure the maximum  amount                                                            
of federal funds.                                                                                                               
                                                                                                                                
Co-Chair Green  recalled that when  HB 106 was passed in  an earlier                                                            
legislative session, it  was understood that no State funds would be                                                            
required.                                                                                                                       
                                                                                                                                
Co-Chair Wilken remembered the same.                                                                                            
                                                                                                                                
Senator Taylor stated the program was to be self-sufficient.                                                                    
                                                                                                                                
Senator Bunde  commented the  State funds  are "pass through"  funds                                                            
generated from boat registration fees.                                                                                          
                                                                                                                                
Mr.  Bus  affirmed,   qualifying  that  because  receipt   supported                                                            
services funds are included  in the general fund, this program would                                                            
technically receive State funds.                                                                                                
                                                                                                                                
Co-Chair Wilken  asked the missions  and measures for this  program.                                                            
                                                                                                                                
Mr. Bus  replied the  criteria of  the federal  grant serves  as the                                                            
missions and  measures. He offered  statistics of specific  results,                                                            
parties who received the grants and success rates.                                                                              
                                                                                                                                
Co-Chair Wilken asked the  consequences of not funding this request.                                                            
                                                                                                                                
Mr. Bus explained that  if the receipt supported services funds were                                                            
not appropriated,  the  amount of  federal funds  received would  be                                                            
reduced  unless  additional   funds  could  be  secured  from  local                                                            
governments  and organizations.  He  anticipated  these sources  had                                                            
been "exhausted" and therefore,  the receipt-supported services were                                                            
requested. He stated that  if receipt and expenditure of the federal                                                            
funds were  not approved  by the legislature,  the program  would be                                                            
eliminated  for the fiscal year. He  indicated the Department  would                                                            
request  receipt authority  for  the full  amount  of federal  funds                                                            
available with  the goal of securing the maximum amount  possible of                                                            
matching funds from alternate sources.                                                                                          
                                                                                                                                
Co-Chair  Wilken  announced he  would  scrutinize this  program.  He                                                            
spoke  to his concerns  that  this program  may not  be in the  best                                                            
interest of Alaskans. He  commented that it has "bothered" him "that                                                            
we spend three-quarters  of a million dollars to tell parents to put                                                            
life jackets on their kids" and that he must register his kayak.                                                                
                                                                                                                                
Senator  Taylor asked  the  percent of  matching  funds required  to                                                            
receive the federal funds.                                                                                                      
                                                                                                                                
Mr. Bus estimated the requirement to be 50 percent.                                                                             
                                                                                                                                
Senator   Taylor  projected   $120,000  would   be  generated   from                                                            
registration fees.                                                                                                              
                                                                                                                                
Mr. Bus explained that  the Division of Motor Vehicles collects boat                                                            
registration  fees,   and  that  most  of  the  funds  are  used  to                                                            
administer  the  program.  He  stated  $120,000  is  the  difference                                                            
between  the total  amount  collected and  the amount  necessary  to                                                            
administer the program.                                                                                                         
                                                                                                                                
Senator  Taylor   asked  about  the   matching  funds  provided   by                                                            
organizations and municipalities.                                                                                               
                                                                                                                                
Mr.  Bus  replied  that communities  in  which  these  programs  are                                                            
operated contribute to the matching fund requirement.                                                                           
                                                                                                                                
Senator B. Stevens  referenced the average 25 boating  accidents per                                                            
year and requested  statistics of where boating accidents  occur and                                                            
the number  of injuries or deaths  per incidence. He commented  that                                                            
in some areas  noncommercial boating activity is transportation  not                                                            
just recreation and asked  for an accounting of accidents related to                                                            
the type of activity.                                                                                                           
                                                                                                                                
     National Recreational Trails Federal Program                                                                               
     $695,000 federal receipts                                                                                                  
     Reference No.: 6854                                                                                                        
     Category: Transportation                                                                                                   
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     All  across Alaska,  Alaskans rely on  trails for recreations,                                                             
     subsistence, and travel  between communities. These trails need                                                            
     constant  maintenance to ensure  they are safe for passage  and                                                            
     to ensure  that they remain open  and available for  use. Funds                                                            
     are  distributed  by 80-20  matching  grants  for recreational                                                             
     trail  and  trailhead  development  and  maintenance,  and  for                                                            
     education  programs relating to trail safety  and environmental                                                            
     protections.  Grants are awarded to organizations,  businesses,                                                            
     agencies, and local governments.                                                                                           
                                                                                                                                
Mr. Bus noted  this item is also a  pass-through for grants  awarded                                                            
in three categories:  motorized, receiving 30 percent  of the funds,                                                            
non-motorized,   receiving   30  percent   and  40   percent   to  a                                                            
combination.   He  stated   that  a  review   board  considers   and                                                            
prioritizes the proposals, which are submitted by communities.                                                                  
                                                                                                                                
Senator Bunde  asked the relationship  of this request to  SB 71 and                                                            
whether   this  program   involves  funds   in  addition  to   those                                                            
appropriated as part of  the Trails and Recreation Access for Alaska                                                            
(TRAAK) program.                                                                                                                
                                                                                                                                
Senator B. Stevens replied  that the TRAAK program is funded through                                                            
the Surface  Transportation project,  not through the Department  of                                                            
Natural  Resources  and  therefore  he  surmised  this  item  is  in                                                            
addition to the TRAAK program.                                                                                                  
                                                                                                                                
KIM RICE,  Administrative  Manager,  Division of  Parks and  Outdoor                                                            
Recreation,  Department of  Natural Resources,  parks testified  via                                                            
teleconference  from Anchorage  affirmed  this funding  would  be in                                                            
addition  to the  TRAAK  funds  appropriated  to the  Department  of                                                            
Transportation and Public Facilities.                                                                                           
                                                                                                                                
     Land  and Water  Conservation  Fund  Federal Grants  for  Local                                                            
     Governments                                                                                                                
     $675,000 federal receipts                                                                                                  
     Reference No.: 32552                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2008                                                                           
     On-going Project                                                                                                           
     More  than any  other  state in  the Union,  Alaskans  recreate                                                            
     outdoors.  Outdoor recreation opportunities are  very important                                                            
     for  Alaskans.  This  provides   a  wide  variety  of  benefits                                                            
     including  improved physical and mental health,  activities for                                                            
     children  to  prevent  delinquency,   leadership  and  teamwork                                                            
     development,  and economic  opportunities  for individuals  and                                                            
     local communities.  LWCF is a 50/50 matching grant program that                                                            
     provides  funding to state and local governmental  entities for                                                            
     the acquisition and/or  development of outdoor recreation areas                                                            
     and  facilities  such  as soccer  fields,  campgrounds,  tennis                                                            
     courts,  boat  launches,   hiking  trails,  picnic  areas,  and                                                            
     outdoor hockey rinks.                                                                                                      
                                                                                                                                
Mr. Bus noted this program  has been in existence for many years. He                                                            
described the process in  which communities apply for the grants and                                                            
supply  50   percent  matching  funds   to  construct  recreational                                                             
facilities. He exampled  the Twin Lakes Park in Juneau, as a project                                                            
undertaken  with   these  grant  funds.  He  emphasized   the  grant                                                            
recipients   are   required   to  maintain   the   facilities   once                                                            
constructed.                                                                                                                    
                                                                                                                                
Senator  Bunde commented  this funding  could also  be utilized  for                                                            
trails.                                                                                                                         
                                                                                                                                
     Mental Health Trust Land Development                                                                                       
     $600,000 MHTAAR                                                                                                            
     Reference No.: 6853                                                                                                        
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     Mental Health Bill                                                                                                         
     The  Trust Land  Office  (TLO) will  contract  for services  to                                                            
     supplement  its  core operations.  Typically  the services  are                                                            
     related to nonrecurring  projects such as the administration of                                                            
     a large timber  sale, the evaluation of a particularly  complex                                                            
     transaction,  development   of an  asset  management  plan  for                                                            
     certain  trust lands or resources  or significant improvements                                                             
     to the TLOs information management.                                                                                        
                                                                                                                                
Mr. Bus  pointed out this  request was submitted  at the request  of                                                            
the  Mental   Health  Trust  Authority   (MHTA)  to  fund   on-going                                                            
operations to generate income from its land holdings.                                                                           
                                                                                                                                
Co-Chair  Wilken  asked  why  this  item  is  not  included  in  the                                                            
operating budget.                                                                                                               
                                                                                                                                
Mr.  Bus  responded  the  funds requested   in this  item  would  be                                                            
utilized  to  contract  for  various  long-term  services,  such  as                                                            
"timber layout", although  he noted funding for staffing is included                                                            
in the operating budget.                                                                                                        
                                                                                                                                
Senator Taylor opined this  is the wrong "funding mechanism" because                                                            
these timber  sales generate  significant revenue  over the  cost of                                                            
the  preparation  of  the  sales.  He stated  that  the  revenue  is                                                            
deposited  to the  general  fund and  contended the  legislature  is                                                            
required  each year to  "pull money  out of the  capital budget"  to                                                            
provide the Department  with the necessary funds to undertake future                                                            
timber sales.  He suggested that a portion of timber  sales receipts                                                            
be designated for related expenditures.                                                                                         
                                                                                                                                
Mr. Bus emphasized  the funds for  this request are entirely  Mental                                                            
Health  Trust  Authority Authorized  Receipts  utilized  for  timber                                                            
sales  on lands  owned  and administered  by  MHTA.  He stressed  no                                                            
general funds are involved.                                                                                                     
                                                                                                                                
AT EASE 10:06 AM / 10:07 AM                                                                                                     
                                                                                                                                
     Alaska Cadastral Project                                                                                                   
     $518,700 federal receipts                                                                                                  
     Reference No.: 37768                                                                                                       
     Category: Natural Resources                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     Phased Project                                                                                                             
     The vision  is to create an integrated system  for sharing land                                                            
     parcel  information between federal,  state, local,  and native                                                            
     organizations. The  Alaska Cadastral Project will enable anyone                                                            
     to access  current rights, interests  and boundary information                                                             
     involving  real property. The  project builds partnerships  for                                                            
     the  collection, management,  standardization,  and sharing  of                                                            
     Alaska's land parcel  information to improve business processes                                                            
     and  support  decision  making.   The  project  offers  several                                                            
     strategic  areas for improving the services of  state and local                                                            
     government  by  improving  the  quality  and  accessibility  of                                                            
     essential business information related to real property.                                                                   
                                                                                                                                
Mr. Bus pointed  out no matching funds  are required for  this item.                                                            
He  informed that  the  Department  presented  this project  to  the                                                            
Legislative  Budget   and  Audit  Committee  in  October   2002  and                                                            
requested authorization  to receive and expend the first installment                                                            
of the $600,000 total amount.                                                                                                   
                                                                                                                                
Mr. Bus stated  that one aspect of this project involves  digitizing                                                            
paper records of plats.                                                                                                         
                                                                                                                                
Co-Chair  Green  relayed  conversations  and  presentations  by  the                                                            
Mineral and  Mining Commission, the  University of Alaska  and other                                                            
parties proposing similar  projects. She asked if this item reflects                                                            
the same project or whether duplication would occur.                                                                            
                                                                                                                                
Mr. Bus  replied  that the  Department  is the primary  "mapper"  of                                                            
State land,  the federal  Bureau of Land  Management (BLM)  conducts                                                            
the primary mapping  activities of federal land, municipalities  and                                                            
Native  corporations  undertake the  efforts  on land  they own.  He                                                            
stated this project  is intended to combine the information  into an                                                            
electronic database.                                                                                                            
                                                                                                                                
Mr.  Bus  furthered  that  the  project  Co-Chair  Green  referenced                                                            
involves a separate commercial activity.                                                                                        
                                                                                                                                
Co-Chair  Green  also  asked  whether  this  information,  once  the                                                            
project is completed would  be available for purchase or at no cost.                                                            
                                                                                                                                
Mr. Bus responded  that all the information  is public information.                                                             
                                                                                                                                
RICHARD  MCMAHON,  Chief, Lands  Records  Information,  Division  of                                                            
Support  Services, Department  of Natural  Resources, testified  via                                                            
teleconference  from  Anchorage  to  affirm that  land  records  are                                                            
public  information.  He informed  that  the Division  is  "actively                                                            
participating"  with the other projects and assured  the efforts are                                                            
complementary and any duplication would be eliminated.                                                                          
                                                                                                                                
Co-Chair  Green agreed to  the importance  of mapping, but  stressed                                                            
that the  State should not  fund duplicate  efforts and instead  the                                                            
parties should  jointly undertake  the project and ensure  all needs                                                            
are adequately served.                                                                                                          
                                                                                                                                
Co-Chair   Wilken  also   recalled  a  conversation   with   parties                                                            
interested in undertaking a mapping effort.                                                                                     
                                                                                                                                
AT EASE 10:12 AM / 10:12 AM                                                                                                     
                                                                                                                                
Mr. McMahon agreed  with this "vision" and stressed  the Division is                                                            
working to  ensure the best  expenditure of  this grant provided  by                                                            
the US Department of Energy.                                                                                                    
                                                                                                                                
Senator Bunde  questioned why during the current "era  of user fees"                                                            
the State would provide this information at no charge.                                                                          
                                                                                                                                
Mr. Bus  responded that  much of  this information  is required  for                                                            
recording  of lands and that  the State does  assess a fee  for such                                                            
recordings.  He stated that once land  is recorded, the information                                                             
becomes  public.  He informed  that  Governor Murkowski  intends  to                                                            
review the fee structure.                                                                                                       
                                                                                                                                
Senator Bunde  asked whether  the recording  fees cover the  cost of                                                            
gathering and providing the information.                                                                                        
                                                                                                                                
Mr. Bus  relayed the  goal is  that revenue  meets expenditures.  He                                                            
noted that in  previous years revenue has far exceeded  the costs of                                                            
administering the program.                                                                                                      
                                                                                                                                
Senator Bunde  asked if the Department  has therefore generated  the                                                            
$518,000 necessary to fund this item.                                                                                           
                                                                                                                                
Mr. Bus answered  yes and explained  the funds would be utilized  to                                                            
digitize records dating back to the 1800s.                                                                                      
                                                                                                                                
Senator  Bunde challenged  that  the fees  collected  for the  paper                                                            
records of the  1800s could not be sufficient to cover  the costs of                                                            
accessing the  data at the present  time. He therefore surmised  the                                                            
State should charge a fee to access those records.                                                                              
                                                                                                                                
Mr. Bus  detailed process  of accessing this  information,  which is                                                            
allowed  at no  charge  if  the data  is only  viewed.  However,  he                                                            
remarked  that if  the  information  is to  be used  for  commercial                                                            
purposes,  the  Department  sells  a  compact  disc  containing  the                                                            
information.                                                                                                                    
                                                                                                                                
Senator Bunde  commented the State is "offering a  service for free"                                                            
that private enterprise is also attempting to provide.                                                                          
                                                                                                                                
Co-Chair Wilken  expressed that the Department of  Natural Resources                                                            
budget subcommittee should further research the matter.                                                                         
                                                                                                                                
Co-Chair Wilken  noted the overview of this item does  not indicated                                                            
a State matching fund requirement.                                                                                              
                                                                                                                                
Mr.  McMahon replied  that  the Department  could  utilize  existing                                                            
general funds appropriated for FY 03.                                                                                           
                                                                                                                                
Co-Chair  Wilken understood  that $130,000  is necessary to  receive                                                            
the federal funds.                                                                                                              
                                                                                                                                
Mr. Bus explained that in-kind expenditures qualify for the State                                                               
match requirement.                                                                                                              
                                                                                                                                
Co-Chair Wilken asked if the in kind expenditures are monitory or                                                               
in the form of labor provided.                                                                                                  
                                                                                                                                
Mr. Bus answered that mostly labor is utilized for the in-kind                                                                  
expenditures.                                                                                                                   
                                                                                                                                
Co-Chair Wilken again indicated the matter warrants additional                                                                  
review.                                                                                                                         
                                                                                                                                
     Recorder's Office Film Conversion                                                                                          
     $388,000 Receipt Supported Services                                                                                        
     Reference No.: 37732                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     One-Time Project                                                                                                           
     One of the  primary statutory functions of the  Recorder's/ UCC                                                            
     component  is to provide its customers with easy  access to the                                                            
     permanent  public  records.  This project  would  support  this                                                            
     statutory  function  in  two  ways:  (1) it  would  enable  the                                                            
     component  to  digitize  document  images  from  existing  film                                                            
     records  for the  past ten years  statewide;  and (2) it  would                                                            
     enhance  the mainframe  based  indexing system  by providing  a                                                            
     direct  link  to the  document  images, thereby  replacing  the                                                            
     cumbersome  and  time consuming  microfiche  process  currently                                                            
     used  for  customer  research  and  retrieval  of  these  older                                                            
     records.                                                                                                                   
                                                                                                                                
Mr. Bus stated that earlier projects have converted records older                                                               
than ten years. He told of the many people viewing this information                                                             
and the desire for a digital format.                                                                                            
                                                                                                                                
Senator Bunde noted this program is financially self-supporting.                                                                
                                                                                                                                
     USGS Streamgaging Cooperative Program                                                                                      
     $180,000 Statutory Designated Program Receipts (SDPR)                                                                      
     Reference No.: 37762                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     This  CIP  request  authorization  to  accept  funds  from  the                                                            
     private sector, local  government and other state agencies, and                                                            
     pass  those funds  through to the  USGS as  part of its  stream                                                            
     gaging  coop  program.  Industry, state  and  local  government                                                            
     often  asks, and pays  for, the USGS  to install and operate  a                                                            
     stream gage. The information  is usually necessary for resource                                                            
     development,  hydroelectric projects, or water  supply. If they                                                            
     pay the USGS  directly, USGS can't provide matching  funds. But                                                            
     if the funding is  passed through a state agency, the funds can                                                            
     be matched at 100% by the federal government.                                                                              
                                                                                                                                
Mr. Bus noted that although this item reflects private sector                                                                   
investments, authority to receive and expend the funds is required.                                                             
                                                                                                                                
     Recorder's Office Plat Imaging                                                                                             
     $100,000 Receipt Supported Services                                                                                        
     Reference No.: 37731                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     One-Time Project                                                                                                           
     A primary  statutory function  of the Recorder's/UCC  component                                                            
     is to provide  its customers with easy access  to the permanent                                                            
     public  records,  including   subdivision  plats  and  surveys.                                                            
     Through  several  cooperative  ventures, the  State  Recorder's                                                            
     Office has  obtained images of approximately  two-thirds of the                                                            
     recorded  plats and  surveys in  the state  and will be  making                                                            
     them available  to the public  on line via the component's  web                                                            
     site  under   a  federally  funded  grant.  This   CIP  project                                                            
     addresses  only the imaging of  the remaining one-third  of the                                                            
     historic  plats  and  surveys  in  the state  and  the  on-line                                                            
     indexing of those that predate the 1970s.                                                                                  
                                                                                                                                
Mr. Bus stated this item would provide for the conversion of                                                                    
approximately one-third of the data not funded through the                                                                      
Cadastral Project.                                                                                                              
                                                                                                                                
     Municipality and Borough Special Assessments                                                                               
     $50,000 State Land                                                                                                         
     Reference No.: 31874                                                                                                       
     Category: General Government                                                                                               
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     This    project   funds   special    assessments   levied    by                                                            
     municipalities  and boroughs against the Department  of Natural                                                            
     Resources for improvements that benefit state properties.                                                                  
                                                                                                                                
Mr. Bus told  of the State Land Disposal  Income funds utilized  for                                                            
this project.                                                                                                                   
                                                                                                                                
     Improving  Milk Processing Facilities  in Milk Shortage  States                                                            
     Federal Program                                                                                                            
     $5,000,000 federal receipts                                                                                                
     Reference No.: 37964                                                                                                       
     Category: Development                                                                                                      
     Location: Anchorage Areawide                                                                                               
     Election District: Anchorage Areawide                                                                                      
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     Phased Project                                                                                                             
     A  proposed "Milk  Shortage Program"  will  assist states  that                                                            
     consume  more  fluid  milk  than they  produce.  USDA  will  be                                                            
     authorized   to   grant  funds   for   modernizing   processing                                                            
     facilities.                                                                                                                
                                                                                                                                
Mr. Bus relayed  he had met with Co-Chair  Green on this  matter and                                                            
he  expressed  intent  to  receive  but hold  these  funds  until  a                                                            
determination  was made whether the  State would participate  in the                                                            
program.  He  indicated  the  funds   could  be  spent  for  various                                                            
purposes,  including construction  or renovation  of facilities  and                                                            
upgrading the packaging and delivery of dairy products.                                                                         
                                                                                                                                
Co-Chair  Wilken understood  the total  cost of  the project  is $20                                                            
million.                                                                                                                        
                                                                                                                                
Mr. Bus stated  the intent is that $5 million would  be appropriated                                                            
each year for  five years, with $20 million "earmarked  for Alaska".                                                            
He qualified the  Department first must specify how  the funds would                                                            
be expended.                                                                                                                    
                                                                                                                                
Co-Chair  Wilken requested  Mr. Bus continue  to work with  Co-Chair                                                            
Green on this project.                                                                                                          
                                                                                                                                
     Division  of Geological and Geophysical Surveys  Federal Grants                                                            
     Projects                                                                                                                   
     $1,100,400 federal receipts                                                                                                
     Reference No.: 38144                                                                                                       
     Category: Development                                                                                                      
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     On-going Project                                                                                                           
     The  Alaska   Mineral  and  Energy  Inventory  (AMEI)   project                                                            
     compromises  a  group  of mineral  and  energy  inventory  data                                                            
     generation,  organization, and  public data delivery  task that                                                            
     are directly  tied to mineral and energy inventory  mandates in                                                            
     AS  41.08, the Legislatively  designated  outcome measures  for                                                            
     DGGS.  This  project provides  receipt  authority  for  Federal                                                            
     funds specifically  directed towards making Alaska  mineral and                                                            
     Energy data  more widely available and more easily  accessible.                                                            
                                                                                                                                
Mr. Bus pointed  out this item requires no State matching  funds. He                                                            
overviewed the  various projects undertaken with these  grant funds.                                                            
                                                                                                                                
Co-Chair  Wilken noted this  program was  previously funded  through                                                            
the operating budget.                                                                                                           
                                                                                                                                
Mr. Bus  explained  that expenditures  for these  projects are  made                                                            
over several fiscal years.                                                                                                      
                                                                                                                                
     North  Slope Tundra Travel Model  - U.S. Dept. of Energy  Grant                                                            
     $250,000 federal receipt                                                                                                   
     Reference No.: 38391                                                                                                       
     Category: Development                                                                                                      
     Location: North Slope Borough                                                                                              
     Election District: Arctic                                                                                                  
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     Department  of Natural Resources is engaged in  a collaborative                                                            
     research  project with  the U.S. Department  of Energy  for the                                                            
     purpose of research  to generate a probability prediction model                                                            
     based upon  the resistance of tundra to disturbance  associated                                                            
     with wintertime  cross-country travel. This study  is essential                                                            
     to the  long-term goal of increasing  the length of  the winter                                                            
     work  season for seismic  exploration,  ice road construction,                                                             
     and  other  development  and  production  activities  requiring                                                            
     cross tundra travel  while ensuring environmental protection of                                                            
     the tundra surface.                                                                                                        
                                                                                                                                
Mr. Bus overviewed this item.                                                                                                   
                                                                                                                                
Mr. Myers furthered  the intent is to allow earlier  construction of                                                            
ice  roads  and  other  modes  of  travel,  specifically   over  the                                                            
"exploration  season", which  must occur "off  ice". He stated  this                                                            
would increase  the number of wells that could be  drilled. He noted                                                            
the  length of  ice  roads increases  as  activities  are  conducted                                                            
further away from infrastructures.                                                                                              
                                                                                                                                
Co-Chair Wilken asked if  this study would occur within the National                                                            
Petroleum Reserve-Alaska.                                                                                                       
                                                                                                                                
Mr. Myers  stated  the project  would examine  better technology  to                                                            
determine  when frost depth  and snow protection  is sufficient.  He                                                            
stated  other  modes  of  travel  would  also  be  investigated.  He                                                            
remarked the debate has  been ongoing regarding the best methods for                                                            
both State-owned and NPR-A lands.                                                                                               
                                                                                                                                
     Remote Recreational Cabins Survey and Appraisals                                                                           
     $430,000 State Land Disposal Income funds                                                                                  
     Reference No.: 38480                                                                                                       
     [Note: detail project analysis not provided.]                                                                              
                                                                                                                                
Mr. Bus  informed the receipts  are generated  from "people  who are                                                            
interested  in remote recreational  cabin properties." He  explained                                                            
that to  purchase these  properties, buyers  must obtain  appraisals                                                            
and surveys,  which the Department  performs  at the expense  of the                                                            
buyers.                                                                                                                         
                                                                                                                                
Senator Bunde asked why  private surveyors are not contracted by the                                                            
buyers to conduct these appraisals and surveys.                                                                                 
                                                                                                                                
Mr. Mylius explained  that in previous "stake it yourself"  programs                                                            
such as  this, high failure  rates occurred  because buyers  did not                                                            
"follow through  on their survey work". He surmised  this was due to                                                            
the high costs  and delays between the date the parcels  were staked                                                            
and  the  date  the  surveys  were  conducted.  He  added  that  the                                                            
Department  has had  difficulties  with individual  surveyors.  As a                                                            
result, it was  determined to be more economical for  the buyers and                                                            
more likely the  land would be surveyed if the Department  collected                                                            
the fees  and contracted  private parties  to undertake the  surveys                                                            
and appraisals.                                                                                                                 
                                                                                                                                
Senator  Bunde asked  how the costs  were determined  in advance  of                                                            
conducting the surveys and appraisals.                                                                                          
                                                                                                                                
Mr.  Mylius  responded  that surveyors  provide  estimates  and  the                                                            
difference  in  the  actual  cost  is added  or  deducted  from  the                                                            
purchase price of the land.                                                                                                     
                                                                                                                                
JEFF JOHNSON,  Boating Law Administrator, Office of  Boating Safety,                                                            
Division  of Parks  and Outdoor  Recreation,  Department of  Natural                                                            
Resources,  testified via teleconference  from Anchorage,  to answer                                                            
questions if necessary.                                                                                                         
                                                                                                                                
Co-Chair Wilken announced  the Committee would review this matter at                                                            
a later date.                                                                                                                   
                                                                                                                                
Department of Public Safety                                                                                                   
                                                                                                                                
     Aircraft and Vessel Repair and Maintenance                                                                                 
     $1,227,400 general funds                                                                                                   
     Reference No.: 6121                                                                                                        
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     On-going Project                                                                                                           
     Department  of Public  Safety  Aircraft and  Vessel Repair  and                                                            
     Maintenance.   These   funds  are   for  the   annual   repair,                                                            
     replacement  and maintenance  requirements  of this  division's                                                            
     aircraft and vessel  fleet. For example, the funds will be used                                                            
     to  rebuild vessel  and aircraft  engines  and components  when                                                            
     they reach the limits  of safe useful life. Large marine diesel                                                            
     engines  require expert  vendors  to rebuild  them. Many  other                                                            
     components  of  vessels  and  aircraft must  be  maintained  or                                                            
      replaced routinely to ensure safe operating conditions.                                                                   
                                                                                                                                
KAREN  MORGAN,  Director,   Division  of  Administrative   Services,                                                            
Department  of Public Safety, noted  the amount requested  for FY 04                                                            
is less  than in previous  fiscal years due  the proposal to  remove                                                            
the P/V Woldstad from service  along with some aircraft, which would                                                            
be sold. She indicated  authorization for these sales is included in                                                            
the Section 5 of the bill.                                                                                                      
                                                                                                                                
JOEL  HARD,  Colonel,  Director,   Division  of  Fish  and  Wildlife                                                            
Protection,  Department  of  Public  Safety,  pointed out  that  the                                                            
budget  has  no mechanism  to  accrue  operating  funds  for  future                                                            
maintenance needs, as is  practice in the private sector. Therefore,                                                            
he stated  that capital  requests  must be submitted  each year  for                                                            
this purpose.                                                                                                                   
                                                                                                                                
Senator Bunde  asked if the Department's equipment  sustained losses                                                            
as a result of the recent windstorm in the Anchorage area.                                                                      
                                                                                                                                
Col. Hard told of some  damage inflicted on two super piper cubs and                                                            
wing damage to another aircraft.                                                                                                
                                                                                                                                
Senator Bunde asked if these vehicles would have to be replaced.                                                                
                                                                                                                                
Col. Hard answered they would.                                                                                                  
                                                                                                                                
Senator B. Stevens  asked if request for funds to  undertake repairs                                                            
to the P/V Stimson is an annual request.                                                                                        
                                                                                                                                
Col. Hard replied  it is not. He explained  that the larger  vessels                                                            
are generally  taken to a shipyard for major repairs  once every two                                                            
years. He stated the P/V Stimson was last dry docked in 2001.                                                                   
                                                                                                                                
                                                                                                                                
SFC 03 # 25, Side A 10:37 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Col. Hard continued the  Department is evaluating long term deferred                                                            
maintenance needs of older vessels.                                                                                             
                                                                                                                                
Senator  B.  Stevens  expressed  that  the  issue  of  repairing  or                                                            
removing the P/V Woldstad  and the P/V Stimson has been discussed in                                                            
the Department of Public Safety budget subcommittee.                                                                            
                                                                                                                                
Senator B.  Stevens asked if dry dock  repairs have been  alternated                                                            
each year between the P/V Woldstad and the P/V Stimson.                                                                         
                                                                                                                                
Col. Hard affirmed.                                                                                                             
                                                                                                                                
Senator B. Stevens requested  the repair history of the P/V Woldstad                                                            
over the previous eight years.                                                                                                  
                                                                                                                                
Col. Hard stated he would provide this information.                                                                             
                                                                                                                                
     Fish and Wildlife Statewide Law Enforcement Equipment                                                                      
     Replacement                                                                                                                
     $750,000 general funds                                                                                                     
     Reference No.: 6127                                                                                                        
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     On-going Project                                                                                                           
     Replacement   of  FWP  Statewide   Law  Enforcement   Equipment                                                            
     required  for  the  day-to-day  enforcement  activity  of  this                                                            
     division.  For example, to purchase and replace  equipment such                                                            
     as skiffs, outboard motors, snowmachines, All-Terrain-                                                                     
     Vehicles, and other equipment required in enforcement patrols                                                              
     and search and rescue operations.                                                                                          
                                                                                                                                
Ms. Morgan  explained the amount of  this request is higher  than of                                                            
past fiscal  years due to previous  deferred maintenance  needs that                                                            
were unfunded.                                                                                                                  
                                                                                                                                
Senator Bunde  opined that $80,000  is substantial amount  for a 22-                                                            
foot skiff.                                                                                                                     
                                                                                                                                
Col. Hard described  the specialized foam hull skiffs  developed for                                                            
Fish and Wildlife  Projection purposes. He remarked  that the design                                                            
the  Department  pioneered  has  now become  the  standard  for  the                                                            
military.                                                                                                                       
                                                                                                                                
Co-Chair Wilken asked what company builds these boats.                                                                          
                                                                                                                                
Col. Hard listed Safe Boat, Inc.                                                                                                
                                                                                                                                
     Alaska State Troopers Law Enforcement Equipment Replacement                                                                
     $600,000 general funds                                                                                                     
     Reference No.: 37774                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2009                                                                           
     On-going Project                                                                                                           
     The purchase  of new and replacement  equipment for  the use of                                                            
     State Trooper  personnel throughout the state.  The Division of                                                            
     Alaska State Troopers  historically has relied upon CIP funding                                                            
     for  these  types  of  replacement  items  due  to  a  lack  of                                                            
     replacement equipment funding in the AST operating budget.                                                                 
                                                                                                                                
Ms.  Morgan  noted  this  request  is  included  in  the  governor's                                                            
proposed budget on an annual basis.                                                                                             
                                                                                                                                
DON BOWMAN,  Major,  Administrative  Commander,  Division of  Alaska                                                            
State  Troopers,   Department  of   Public  Safety,  testified   via                                                            
teleconference  from an  off-net location  that this  request  is to                                                            
fund replacement  of highly used equipment necessary  for day-to-day                                                            
operations.                                                                                                                     
                                                                                                                                
     Fairbanks Roof Replacement Project                                                                                         
     $1,019,100 general funds                                                                                                   
     Reference No.: 37778                                                                                                       
     Category: Public Protection                                                                                                
     Location: Fairbanks Areawide                                                                                               
     Election District: Fairbanks Areawide                                                                                      
     Estimated Project Dates: 07/01/2003 - 06/30/2005                                                                           
     Phased Project                                                                                                             
     This project  requests construction funding for  replacement of                                                            
     the Department of  Public Safety HQ building roof in Fairbanks.                                                            
     Design funding of  $43,600 general funds was appropriated in FY                                                            
     02 and the design  study was completed in July, 2002. This roof                                                            
     replacement  project  is  also  identified  as the  number  one                                                            
     Department of Public  Safety priority on the Statewide deferred                                                            
     maintenance list.                                                                                                          
                                                                                                                                
Ms. Morgan  pointed out  this is  the second year  this request  has                                                            
been  submitted  for funding.  She  informed  that leaks  have  been                                                            
identified  and stressed  the  roof must  be replace  before  damage                                                            
occurs to the building structure.                                                                                               
                                                                                                                                
Co-Chair Wilken  asked whether this  project could be undertaken  in                                                            
phases  over several  years. He also  suggested  the funds could  be                                                            
appropriated  in  phases and  the  project  undertaken  in a  future                                                            
fiscal year.                                                                                                                    
                                                                                                                                
Ms. Morgan  explained  that once the  project is  begun, it  must be                                                            
completed  without  interruption.  She  agreed  the funds  could  be                                                            
compiled and the project undertaken in the future.                                                                              
                                                                                                                                
     Firefighting Breathing Apparatus Replacement                                                                               
     $225,000 general funds                                                                                                     
     Reference No.: 37785                                                                                                       
     Category: Public Protection                                                                                                
     Location: Statewide                                                                                                        
     Election District: Statewide                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2004                                                                           
     One-time Project                                                                                                           
     Purchase  of ninety  (90)  self contained  breathing  apparatus                                                            
     (SCBA)  and spare bottles  used to conduct  basic and  advanced                                                            
     fire  training at the  three State  operated regional  training                                                            
     centers  in Anchorage,  Fairbanks and  Juneau. These new  units                                                            
     are necessary  to comply with national equipment  standards and                                                            
     OSHA regulations.                                                                                                          
                                                                                                                                
Ms. Morgan informed  that the current equipment has  been donated by                                                            
local fire  departments as  new gear is purchased.  She stated  that                                                            
the updated  models are significantly  different from the  equipment                                                            
utilized in training.                                                                                                           
                                                                                                                                
Senator  Bunde pointed  out the  request  is to  purchase 90  units,                                                            
although classes are never that large.                                                                                          
                                                                                                                                
GARY  POWELL,  Director,  State  Fire  Marshal,   Division  of  Fire                                                            
Prevention,   Department    of   Public   Safety,   testified    via                                                            
teleconference from an off-net location.                                                                                        
                                                                                                                                
Senator Bunde  asked if the units  would be available for  field use                                                            
or reserved only for training exercises.                                                                                        
                                                                                                                                
Mr.  Powell replied  the  units  would be  dedicated  primarily  for                                                            
training  purposes but could  be used in the  event of emergency  in                                                            
actual  fires.   He  exampled  the  Millers  Reach   Fire  in  which                                                            
additional supplies was needed.                                                                                                 
                                                                                                                                
Senator Bunde asked the uses of the training equipment.                                                                         
                                                                                                                                
Mr.  Powell  listed  fire training  in  Fairbanks  and  cruise  ship                                                            
training  in Juneau  as  uses of  the equipment.  He  informed  that                                                            
shipping these units causes wear and tear.                                                                                      
                                                                                                                                
Co-Chair  Wilken asked  if this item  is included  in the Code  Blue                                                            
Project.                                                                                                                        
                                                                                                                                
Mr. Powell  answered  it is not,  explaining the  Code Blue  Project                                                            
pertains to emergency medical  equipment, while this request is fire                                                            
equipment.                                                                                                                      
                                                                                                                                
     New Ketchikan Public Safety Building - Construction Phase                                                                  
     $2,452,500 general funds                                                                                                   
     Reference No.: 37780                                                                                                       
     Category: Public Protection                                                                                                
     Location: Ketchikan                                                                                                        
     Election District: Ketchikan                                                                                               
     Estimated Project Dates: 07/01/2003 - 06/30/2006                                                                           
     Phased Project                                                                                                             
     Construction funding for new Department of Public Safety                                                                   
     Southeast Detachment headquarters building in Ketchikan.                                                                   
                                                                                                                                
Ms.  Morgan   reminded  that   the  Department   received   a  prior                                                            
appropriation of $400,000 for design and preconstruction.                                                                       
                                                                                                                                
Co-Chair Wilken asked if the design is complete.                                                                                
                                                                                                                                
Ms. Morgan affirmed.                                                                                                            
                                                                                                                                
Co-Chair Wilken asked the status of a site location.                                                                            
                                                                                                                                
Ms. Morgan  responded that the City  of Saxman has agreed  to donate                                                            
land to house the facility.  She qualified that a change in the city                                                            
manager structure had delayed  the process, but that discussions had                                                            
resumed.                                                                                                                        
                                                                                                                                
Senator Taylor clarified that the location is not finalized.                                                                    
                                                                                                                                
Ms. Morgan explained that  no agreement has yet been signed with the                                                            
City of Saxman.  However, she stated  that a site has been  selected                                                            
by the  City of  Saxman  that is  appropriate for  the Department's                                                             
needs.                                                                                                                          
                                                                                                                                
Senator Taylor  asked if the State would own or lease  the facility.                                                            
                                                                                                                                
Ms.  Morgan  responded  that  the matter  has  not  been  finalized,                                                            
although  she anticipated the  State would  own the facility  with a                                                            
"nominal" lease fee paid to the City of Saxman.                                                                                 
                                                                                                                                
Senator Taylor  opined that significant amounts of  State owned land                                                            
located south of Ketchikan  is available and would be better suited.                                                            
                                                                                                                                
Ms. Morgan reminded that  the Legislature made the decision that the                                                            
facility  would be located  within  the City of  Saxman. She  agreed                                                            
that State  land is also available  and noted that the initial  site                                                            
assessment included other locations.                                                                                            
                                                                                                                                
Co-Chair Wilken  announced the earlier  decision might be  reviewed.                                                            
                                                                                                                                
Senator  Taylor expressed  concern  that State  Troopers would  have                                                            
difficulty  traversing through the  crowded downtown Ketchikan  area                                                            
to  reach  the airport,  ferry  terminal  and  the  hospital  during                                                            
emergencies.                                                                                                                    
                                                                                                                                
Ms.  Morgan  replied  that  response  time  was one  of  the  issues                                                            
considered  in the site  evaluation. She  assured that assured  that                                                            
Troopers  patrol  the  Ketchikan   Gateway  Borough  and  should  be                                                            
available to respond to emergency calls from various locations.                                                                 
                                                                                                                                
Maj. Bowman was  unable to respond specifically to  this concern but                                                            
agreed  response to  the northern  areas  would take  longer if  the                                                            
facility  were  located  in the  City  of Saxman,  in  the  southern                                                            
portion of the Borough.                                                                                                         
                                                                                                                                
Senator Taylor  pointed out the majority  of the population  resides                                                            
north  of downtown  Ketchikan  rather than  south. He  asked if  the                                                            
Department  had conducted  a  study of  the locations  of  emergency                                                            
calls and response times.                                                                                                       
                                                                                                                                
Maj.  Bowman was  unaware of  any such  study but  assured he  would                                                            
review the matter.                                                                                                              
                                                                                                                                
Co-Chair  Wilken understood  that the actual  location has  not been                                                            
determined,  but  that legislative  intent  indicates  the  facility                                                            
would be located in the City of Saxman.                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Gary Wilken adjourned the meeting at 10:55 AM                                                                          

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