Legislature(2025 - 2026)SENATE FINANCE 532
03/18/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Deferred Maintenance – University of Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
March 18, 2025
9:08 a.m.
9:08:24 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:08 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Mike Cronk
Senator James Kaufman
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
None
ALSO PRESENT
Chad Hutchison, Director of State Relations, University of
Alaska.
PRESENT VIA TELECONFERENCE
Christopher McConnell, Facilities Director, University of
Alaska Anchorage, Anchorage; Cameron Wohlford, Facilities
Director, University of Alaska Fairbanks, Fairbanks; Nathan
Leigh, Facilities Director, University of Alaska Southeast,
Juneau.
SUMMARY
PRESENTATION: DEFERRED MAINTENANCE UNIVERSITY OF ALASKA
Co-Chair Hoffman discussed the agenda.
^PRESENTATION: DEFERRED MAINTENANCE UNIVERSITY OF ALASKA
9:09:09 AM
CHAD HUTCHISON, DIRECTOR OF STATE RELATIONS, UNIVERSITY OF
ALASKA, Discussed a presentation entitled "University of
th
Alaska - Empower Alaska: 34 Legislative Session, Deferred
Maintenance, Senate Finance Committee, March 18, 2025
(copy on file). He noted that there was a number of his
colleagues available to answer questions, including the
budget director and facilities directors from three main
campuses.
9:09:56 AM
AT EASE
9:10:04 AM
RECONVENED
Mr. Hutchison looked at slide 2, " Overview":
• Introduction
•Context
• Priority Projects and Prioritization
•UA Anchorage
•UA Fairbanks
•UA Southeast
Mr. Hutchison mentioned a document entitled "Deferred
Maintenance and Modernization Working List of Projects"
(copy on file).
9:11:39 AM
Mr. Hutchison spoke to slide 3, "Introduction
UA Facility Profile
• Serves academic, research, and community service
mission
• Residential housing, general offices, classrooms,
and complex laboratories
• 400 facilities, spanning 8.2 million square feet,
replacement valve $7 billion, avg age 37 years
• UA owns more than 40 percent of all State capital
infrastructure
• Backlog of deferred maintenance and renewal projects
nearly $1.5 billion
Maintaining UA Facilities
• Facility deferred maintenance and renewal has been
the UA Board of Regents' number one capital priority
for over twenty years
• Aging facilities and a growing maintenance backlog
make it difficult for UA to attract and retain
students from an already shrinking applicant pool
• Over the last 3 years, UA has received an average of
$17.2 million in state funding per year
• A modest annual revenue stream of $35 million per
year would bring greater stability and predictability
• UA, in partnership with the State, needs to explore
other strategies to address our most critical projects
Mr. Hutchison mentioned HB 236 in the context of the bullet
related to an annual revenue stream of $35 million.
9:15:03 AM
Mr. Hutchison referenced slide 4, "UA Facility Profile,"
which showed a table of UA facilities with data on age,
area, replacement value, and DM backlog. He made note of
the total deferred maintenance backlog totaled in the
bottom right corner of the slide, which was listed as $1.48
million.
Mr. Hutchison turned to slide 5, " DM Project Costs
• Deferred Maintenance (DM) project costs are
determined using several methods depending on project
size, complexity, expertise, and funding status.
Project cost estimates for most DM projects are
performed using one or a combination of the following
three methods:
• Hire engineers, architects, and estimators (large or
complex projects with eminent funding)
• University staff with decades of experience in
designing, estimating, and constructing projects
(small or medium projects)
• University staff produce estimates for projects by
comparing them to actual previous project costs
adjusted for inflation and/or cost data provided by
external consultants (future projects)
• Inadequate Funding
• Limited funds require reprioritization, leading to
alterations in project scopes or requiring additional
design resources to fit larger scopes into smaller
budgets
• Insufficient and unpredictable funding leads to a
lack of project workflow, resulting in delays in
starting construction
• Inflation has significantly outpaced the capital
budget, leading to delays as projects wait for
additional funding to account for increased bid prices
• Local construction cost pressures such as labor
market challenges and shipping cost increases
9:20:24 AM
CHRISTOPHER MCCONNELL, FACILITIES DIRECTOR, UNIVERSITY OF
ALASKA ANCHORAGE, ANCHORAGE (via teleconference), displayed
slide 7, " University of Alaska Anchorage."
Mr. McConnell highlighted slide 8, " UAA DM Project
Prioritization
• UAA's planning and engineering staff in conjunction
with maintenance and operations staff, conducts full
facility condition assessments every 5 to 7 years in
consultation with Gordian Group (a parent company of
RS Means) for all campus facilities.
• Gordian uses life cycle cost data and information
from university staff to inform the deferred
maintenance backlog and baselines the cost using RS
Means estimating database to prepare a componentized
project listing.
• Componentized project listing is submitted using
prioritization categories defined as deferred
maintenance backlog, timeline A (coming due in 1-3
years), timeline B (coming due in 4 to 7 years), and
timeline C (coming due in 8 to 10 years).
• The project listing includes total estimated project
costs and is organized by campus, building, system,
and component.
• Annually, UAA works with Gordian Group to update the
project listing by eliminating projects that have been
executed, adding the projects associated with timeline
A that are now deferred, and increasing the costs of
all projects on the full prioritized list (including
backlog, timeline A, B and C) based on RS Means
construction inflation information.
9:23:39 AM
Mr. McConnell looked at slide 9, "University of Alaska
Anchorage." He stated that the slide showed photos of some
of the challenges.
9:29:09 AM
Mr. McConnell addressed slide 10, "University of Alaska
Anchorage":
UAA Residential Campus Building Envelope and System
Renewal
• FY26 Amount: $3,000,000 (TPC $3,122,700)
• Objective: Investment in building envelopes and
supporting infrastructure of critical residential
facilities.
• Key Points:
• Addressing deferred maintenance issues in Main
Apartment Complex, Templewood Apartments, and three
residential halls.
• Enhancing safety by addressing structural
deficiencies and system failures.
• Improving energy efficiency and reducing operating
costs.
• Enhancing resident experience with modern, well-
maintained facilities.
• Details:
• The targeted buildings, primarily constructed in the
1980s, have accumulated a deferred maintenance backlog
of approximately $90 million.
• Issues include wood rot, remediation of siding, ice
damming on roofs, distressed roof truss systems, and
plumbing system failures.
• Investments aim to enhance safety, improve energy
efficiency, reduce operating costs, and enhance the
resident experience
This is UA's 1st overall priority; see FY26 Redbook
(pages 24 and 26)
9:31:07 AM
Mr. McConnell advanced to slide 11, "University of Alaska
Anchorage He stated that the slide showed pictures of
some of the current projects, and spoke to them.
Mr. McConnell looked at slide 12, "University of Alaska
Anchorage
UAA Campus Safety, Security, and Code Compliance
• FY26 Amount: $500,000 (TPC $1,914,600)
• Objective: Enhancing campus safety and ensuring
compliance with the Clery Act.
• Key Points:
• Expansion of access control systems to reduce
unauthorized access.
• Improvement of key control management system
for better security and accountability.
• Upgrading emergency communication platforms for
effective emergency responses.
• Enhancing wayfinding to improve navigation and
security.
• Details:
• The Anchorage Campus faces unique challenges
due to its proximity to various institutions,
including medical facilities, a juvenile justice
treatment center, a private university, federal
government facilities, and K-12 educational
institutions.
• The project focuses on expanding access control
systems, improving key control management,
upgrading emergency communication platforms, and
enhancing wayfinding This is UA's 4th overall
priority; see FY26 Redbook (pages 24 and 27)
9:35:04 AM
Mr. McConnell showed slide 13, "
UAA Social Sciences Building Energy Performance
Upgrades
• FY26 Amount: $4,000,000 (TPC $9,447,100)
• Objective: Addressing aging infrastructure and
enhancing energy efficiency.
• Key Points:
• Modernizing lighting systems for better energy
efficiency and user experience.
• Repairing hydronic heating system for a
comfortable environment.
• Replacing pneumatic controls with direct
digital controls for improved operational
efficiency.
• Details:
• The Social Sciences Building (SSB), constructed
in the 1970s, has a backlog of $26 million in
necessary upgrades and repairs.
• The SSB houses the College of Arts (CAS) and
UAA IT, including the main server room.
• Investments aim to enhance energy efficiency,
improve user comfort, and ensure the reliability
of essential services.
This is UA's 7th overall priority; see FY26
Redbook (pages 24 and 29)
Mr. McConnell referenced slide 14:
UAA Kodiak College Campus Mechanical and Roof Membrane
Renewal
• FY26 Amount: $847,900 (TPC $984,200)
• Objective: Addressing maintenance and upgrades
for Kodiak College buildings.
• Key Points:
• Renewing outdated and inefficient building
systems (electrical, plumbing, HVAC).
• Prioritizing roof renewal of the Adult Learning
Center to ensure building integrity and safety.
• Details:
• Kodiak College, built in the 1970s and 1980s,
has a backlog of nearly $1.7 million in
maintenance and upgrades.
• The roof of the Adult Learning Center is a top
priority due to leaks, structural weaknesses, and
insulation issues.
This is UA's 9th overall priority; see FY26
Redbook (pages 24 and 31)
9:39:13 AM
AT EASE
9:39:56 AM
RECONVENED
Mr. Hutchison turned to slide 15, "University of Alaska
Fairbanks."
9:40:09 AM
CAMERON WOHLFORD, FACILITIES DIRECTOR, UNIVERSITY OF ALASKA
FAIRBANKS, FAIRBANKS (via teleconference), considered slide
16, "UAF Facility Condition Assessments and DM Planning,"
UAF has the largest and oldest facilities portfolio in
the UA System
• 257 facilities across urban, rural, and off-
road locations.
• Project prioritization focuses on high-use,
high-impact, and critical needs.
Comprehensive Facility Assessments (Every 10
Years)
• Licensed engineers, architects, and estimators
assess large portions of campus facilities.
• Focuses on buildings and systems that have
exceeded their life cycles.
Ongoing Condition Assessments (Every 3-5 Years)
• UAF's maintenance, planning, and engineering
teams review and update the deferred maintenance
list.
• New maintenance needs are identified and
incorporated.
Internal Assessments for Unreviewed Facilities
• Facilities not included in external surveys,
such as the Fairbanks Experiment Farm, are
assessed by UAF's internal team.
• Cost estimates are based on RS Means data and
historical project costs.
Component-Based Project Planning
• Buildings are broken into major components,
each with a defined scope of work.
• Work is prioritized based on system age,
condition, and impact on operations.
Shifting from Component Repairs to Full Renewals
• Due to aging infrastructure, individual
component replacements are transitioning to full
building renewals.
• As projects are completed or buildings are
retired, backlog items are removed, and new
priorities are added.
9:42:20 AM
Mr. Wohlford displayed slide 17, " University of Alaska
Fairbanks
Critical Roof and Envelope Renewal
FY26 Amount: $12,000,000 (TPC $13,480,500)
Objective: Replace failing roofs in key student
support and research buildings to ensure safety
and functionality.
Impacts of not replacing roofs:
•Declining Student Experience: deteriorating
spaces impact learning and campus life
•Safety Risks: falling debris, seismic failures
•Building Closures: disrupts housing, research,
childcare
•Energy Loss: higher heating costs, reduced
efficiency
Projects Include:
•Cutler Housing: Replace roofs on three apartment
blocks.
•UA Museum of the North: Fix vapor barrier
membrane failure.
•University Park Building: Replace the south
wing's roof, and upgrade seismic systems for
childcare conversion.
This is UA's 2nd overall priority, see FY26
Redbook (pages 24 and 26)
Mr. Wohlford highlighted slide 18, "University of Alaska
Fairbanks
Rotted Roofs cause continuous reactive maintenance and
empty units at Cutler
Univ Park: Seismic connections addressed to meet State
childcare standards
University Park Roof failures impact future Childcare
Center services
9:47:20 AM
Mr. Wohlford looked at slide 19, " University of Alaska
Fairbanks
Kuskokwim Campus Renewal: Maggie Lind/Voc-Ed Building
FY26 Amount: $1,777,200 (TPC $1,790,600)
Objective: Improve safety, efficiency, and
compliance to support UAF's largest regional
campus.
Impacts of doing nothing:
•Building Closures: system failures could force
shutdowns
•Disruptions: workforce programs and student
services suffer
•Increased Costs: system failures could force
shutdowns
•Code Violations: buildings fail to meet
compliance standards
Projects Include:
•Fire Alarm Systems: Replace outdated panels and
detectors.
•Electrical Systems: Relocate and replace the
main electrical distribution center for safety.
•Restrooms: Renovate with ADA-compliant features.
This is UA's 5th overall priority; see FY26
Redbook (pages 24 and 28) University of Alaska
Fairbanks Electrical
Mr. Wohlford addressed slide 20, "University of Alaska
Fairbanks":
UAF Student Health, Safety, and Success
Student Health Center Renewal, Duckering, Reichardt,
and Salisbury Teaching Lab Upgrades
FY26 Amount: $10,490,000 (TPC $21,769,600)
Objective: Critical facility upgrades to enhance
safety, reduce risks, and improve learning spaces.
Impacts of lack of DM funding:
•Program Disruptions: insufficient facilities
limit academic delivery
•Building Closures: critical failures could shut
down spaces
•Safety Risks: unfixed hazards increase injuries
and liability
•Higher Costs: deferred maintenance leads to
expensive emergency repairs
•Limited Accessibility: restrooms, pathways,
remain non-ADA compliant
•Code Violations: non-compliant labs, theaters,
and clinics
This is UA's 8th overall priority; see FY26 Redbook
(pages 24 and 29-31)
9:50:32 AM
Mr. Wohlford advanced to slide 21:
(continued from previous slide)
UAF Student Health, Safety, and Success
Student Health Center Renewal, Duckering, Reichardt,
and Salisbury Teaching Lab Upgrades
Projects Include:
•Duckering Lab: Upgrade ventilation and dust
removal for safer materials analysis.
•Salisbury Teaching Theater: Fire safety
upgrades, seismic bracing, and improved stage
accessibility.
•Student Health Clinic: Modernized exam rooms,
ventilation, lighting, and ADA restroom.
•Reichardt Lab: Replace ventilation control
valves for safer chemical handling.
•Restrooms: Upgrade Gruening and Bunnell
facilities for compliance and plumbing fixes.
•Pedestrian Safety: Repair pathways, prioritizing
high-traffic areas.
This is UA's 8th overall priority; see FY26 Redbook
(pages 24 and 29-31)
9:52:37 AM
NATHAN LEIGH, FACILITIES DIRECTOR, UNIVERSITY OF ALASKA
SOUTHEAST, JUNEAU (via teleconference), referenced slide
24, " University of Alaska Southeast":
UAS Juneau Campus Renewal of Utilities, Mechanical,
Roofing and Safety Improvements
• FY26 Amount: $3,250,000
• Objective: Address some of the DM/RR needs on
the Juneau Campus.
• Water Main Renovation ($890K):
The 16-inch water main that supplies Juneau
MAINTAINED the OBJECTION campus is about 50 years
old and has failed in two locations.
• ASHP Replacement ($460K):
UAS have three LG Air Source Heat Pumps (ASHP)
that frequently breakdown.
• Replace Fuel Tanks at Housing ($800K):
The Housing Apartment Unit fuel tanks are 35 years
old.
This is UA's 3rd overall priority, see FY26 Redbook
(pages 24 and 27)
Mr. Leigh turned to slide 25, "University of Alaska
Southeast":
UAS Juneau Campus Renewal of Utilities, Mechanical,
Roofing and Safety Improvements
• Replace Banfield Hall Roofing System ($500k):
The roof on the Banfield Hall is 27 years old and
failing.
• Replace Walkway Lighting ($600K):
There is no dedicated pedestrian lighting on the
walkway to the Rec Center and the lighting on the
walkway between the Rec Center and Housing does not
meet current illumination standards.
This is UA's 3rd overall priority; see FY26 Redbook
(pages 24 and 27)
9:55:38 AM
Mr. Leigh considered slide 26, "University of Alaska
Southeast":
UAS Ketchikan Campus Renewal of Building Envelope
and
Mechanical System
• FY26 Amount: $820,000 (TPC $940,000)
• Objective: Address some of the DM/RR needs on
the Ketchikan
Campus.
• Replace Mansards on the Paul Building Deck
($400k):
The cement-bonded mansard siding is falling
apart.
When constructing phase I of this project, we
discovered that many of the structural steel
trusses and beams were rusting.
This is UA's 6th overall priority; see FY26 Redbook
(pages 24 and 28-29)
Mr. Hutchison shared that slide 27 was UA's sixth overall
priority.
Mr. Leigh displayed slide 27, "University of Alaska
Southeast":
UAS Ketchikan Campus Renewal of Building Envelope
and
Mechanical System
• Replace Air Handler in Ziegler Building ($110K):
The air handler unit in the Ziegler Building is over
20 years old, cannot have its belts realigned.
• Install Backup Heating System in the Maritime Center
($310K):
The Maritime Center currently has no backup heating
system.
This work would install an electric boiler as a backup
to the existing oil boiler.
This is UA's 6th overall priority; see FY26 Redbook
(pages 24 and 28-29)
Mr. Hutchison remarked that slide 28 was the University's
twelfth overall priority, and the amount was $820,000.
Mr. Leigh highlighted slide 28, "University of Alaska
Southeast":
UAS Sitka Campus Window Replacement and
Mechanical System Modernization
• FY26 Amount: $820,000 (TPC $1,410,000)
• Objective: Address some of the DM/RR needs on
the Sitka
Campus.
• Replace HVAC Controls ($400K):
The HVAC control systems throughout the hangar
building are old pneumatic that gives the
operator limited control of the system.
This is UA's 12th overall priority; see FY26 Redbook
(pages 24 and 32)
• Replace Windows ($310K):
The windows in the Sitka building have aluminum
frames and do not provide adequate insulation.
• Renovate Security Cameras ($110K):
Replace failed cameras and add several more
cameras to cover blind spots including doorway
and parking lot coverage.
9:59:41 AM
Co-Chair Stedman requested a prioritized list in $5 million
increments. He also queried the absorption rate.
Mr. Hutchison agreed to provide that information.
Co-Chair Hoffman discussed housekeeping.
ADJOURNMENT
10:02:03 AM
The meeting was adjourned at 10:02 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 031825 FY26 DM Priority List 3 10 2025.pdf |
SFIN 3/18/2025 9:00:00 AM |
|
| DM presentation 03.18.25.pptx.pdf |
SFIN 3/18/2025 9:00:00 AM |