HOUSE BILL NO. 60 "An Act making appropriations for capital projects; and providing for an effective date." 1 Members were provided detailed backup on the Department of Fish and Game's FY 94 CIP requests (copy on file). DEPARTMENT OF FISH AND GAME CARL L. ROSIER, COMMISSIONER, DEPARTMENT OF FISH AND GAME reviewed the Department's capital improvement project requests (CIP) for FY 94: * Vessels Major Maintenance - $315.0 thousand dollars This CIP request would provide for general maintenance on three vessels. Vessels support fishery monitoring efforts. In addition, this request would retrofit the R/V Media's heating and insulation. The R/V Media was purchased in FY 93 through a FY 93 CIP appropriation. The vessel will be used for finfish and shellfish assessment. Representative Hoffman asked if the Department has the latest marine survey on the R/V Media. LARRY JONES, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME replied that the Department has the survey which accompanied the vessel at the time of purchase. * Tag/Otolith Laboratory - $1.1 million dollars This CIP request would allow the Department to relocate the existing Coded Wire Tag Processing Laboratory. Otolith tags are placed in the head of immature fish. The tags are used in stock identification. The existing facility is located in Juneau. The facility condition is adverse to employee health. The Department intends to relocate into an existing building in the Juneau area. Commissioner Rosier clarified otolith tagging is not preformed by private business in the State of Alaska. The existing laboratory is owned by the State of Alaska. Representative Therriault asked how the Department derived the cost estimation. Mr. Jones explained that the Department has inquired into the cost of purchasing and renovating several buildings in the Juneau area. Commissioner Rosier interjected that there are multiple users of the otolith processing. Private hatcheries are interested in the process. He explained, in response to a 2 question from Representative Therriault, that the Department has not entered into negotiations. * Crystal Lake Water Recirculation Project - $1.0 million dollars This CIP request would be used to construct a water recirculation system for the Crystal Lake Hatchery. The project is estimated to double the facility's fish production capacity. The facility produces chinook salmon and steelhead trout. The facility is owned by the State. Commissioner Rosier clarified in response to a question by Co-Chair MacLean, that the Department has no plans to transfer the facility to private ownership. He observed that the facility contributes to recreational and commercial use. He noted that the facility receives U.S./Canada salmon enhancement funding. Representative Hoffman questioned the need for a doubling of the allocation. He asked the demand level for the production of trout. Commissioner Rosier could not give the percentage of trout to the species utilized commercially. He emphasized that Sport Fish funding would carry a portion of the operational costs. General fund dollars would be used for the conversion of the water system. Representative Hoffman asked if there is pressure on the trout stocks. He asked why the Department is concentrating "on tourism aspects when we could be concentrating our dollars on commercial aspects for the benefit of people, commercial fishermen in the State." Commissioner Rosier stressed that the project will replace production that had been assigned to other facilities around the State that are being closed. He observed that demand exists for steelhead trout and chinook salmon in the Southeast recreational fishery. He emphasized that Fish and Game, and Sport Fish Funds will be used to support sport fish programs. Representative Hoffman asked for information justifying the doubling of production. * Waterfowl Conservation and Enhancement Program - $420.0 thousand dollars This CIP request would continue the Waterfowl Conservation Program for 3 years. Co-Chair MacLean asked for details of the expenditures of the original $850.0 thousand dollar appropriation. She asked for a breakdown of administration costs. 3 * Kenai River Bank Restoration/Stabilization Project - $147.0 This CIP request is a two year project to provide standards and technical guidelines for bank protection for the Kenai River. The project will also identify fish habitat criteria that can be incorporated into project designs. Commissioner Rosier stressed the importance of protecting the State's resources. He noted that a major portion of the State's recreational access is involved. He observed that residents are concerned about habitat loss along the river and impacts on the fish and wildlife resources. * Habitat Improvement and Big Game Population Enhancement - $2.0 million dollars (Fish and Game Fund) This CIP request is a five year program that will provide for the restoration of wood bison. The project is designed to enhance big game populations in accessible areas. Funds will also be used to conduct prescribed fires and for predator control. Commissioner Rosier asserted that this request will protect populations of high importance to the residents of the State within the highway system. Co-Chair MacLean asked for projections of expenditures from the Fish and Game Fund including all proposed expenditures for FY 94. She asked for details of the predator control plan. She asked how much of the $2.0 million dollars will be used for predator control. DAVE KELLYHOUSE, DIRECTOR, DIVISION OF WILDLIFE CONSERVATION explained that of the $2.0 million, 3 year, CIP request, $300.0 thousand dollars will be for predator control. An additional $120.0 thousand dollars will be spent for species numeration. Co-Chair MacLean noted that $408.0 thousand dollars is requested in the Department's operating budget for wolf management. Mr. Kellyhouse explained that the $408.0 thousand dollars in the operating budget will be used for wolf studies to aid management plans. Co-Chair MacLean asked why the Department is giving priority to the reintroduction of the wood bison. Mr. Kellyhouse stressed that the wood bison historically appeared in Alaska. The species is endangered. The only clean herd 4 exists in Canada. The Alaskan habitat is considered to be a prime area for reintroduction. Co-Chair MacLean noted that the Department's CIP request for the Division of Wildlife is $12 million dollars. She asked why the request was not programed within the operating budget. Mr. Kellyhouse emphasized that the project is a one-time non-recurring event. He observed that the Division's primary function is to gather information in order that the State can manage its resources on a sustained yield basis. Mr. Kellyhouse gave examples of habitat projects that have traditionally been funded through the capital budget. He clarified, in response to a question from Co-Chair MacLean, that none of the projects included in the request were denied by the Governor. Representative Martin asked if the Department could pay bounties on hides. Mr. Kellyhouse agreed that the State has, in the past, paid bounties on hides. He added that the practice is ineffectual. He stressed that some bounty hides came from Canada. He added that predator control using helicopters was recommended by environmentalists on the Wolf Management Team as the most humane and effective technique. He further discussed wolf control. Representative Martin asked if local residents could be greater utilized for wolf control. Commissioner Rosier emphasized that there is open access in the wolf season. He stated that trappers are not interested in wolves. Mr. Kellyhouse provided members with a breakdown of the request (Attachment 1). He noted, in response to a question by Representative Hanley, that when the project request was reduced to $2.0 million dollars that caribou related projects were eliminated from the request. He reviewed Attachment 1. He concluded that the total cost of associated research is $310.0 thousand dollars. REPRESENTATIVE NICHOLIA noted that she was not informed of the project to reintroduce the wood bison into her district. She asked if public hearings were held. Mr. Kellyhouse replied that the area biologist spent time in Fort Yukon. He asserted that the biologist contacted elders in the area. Public hearings were not held. Representative Therriault referred to provision within the request to use fire fighting crews in cooperation with the Department of Natural Resources on proscribed fires. He asked if there would be transferred to the Department of Natural Resources as interagency receipts. Mr. Kellyhouse 5 replied that funds would be a RSA to the Division of Forestry. Representative Therriault asked if the Department is coordinating with the Department of Natural Resources to assure that prescribed fires would not be put out by the Department of Natural Resources. Mr. Kellyhouse discussed the Alaska Interagency Fire Management Plan. He assured Representative Therriault that the Department works closely with all the land management agencies. He noted that some areas are zoned as fire monitor only. Representative Therriault asked if the appropriation request has been accounted for in the budget of the Department of Natural Resources. Mr. Kellyhouse answered that the Department of Natural Resources is aware of the request. The funding contained in the request has not been included in the Department of Natural Resources' budget. Mr. Kellyhouse stressed that the fire season lapses over the fiscal year. Representative Hoffman alleged that the project in question should be included in the Department's operating budget. He asserted that the Department has included the project as a CIP request in order to not exceed their operating budget cap. In addition, the project would be funded for five years. He requested a breakdown of the project's annual cost. Representative Hoffman noted that the Department's backup states that: "This program will allow full implementation of policies of the administration and the Board of Game to enhance big game populations in accessible areas to relieve current controversies over game allocations between subsistence and other hunters and to reintroduce wood bison to historical range in Alaska." He asked how the Department will reduce the controversies. Commissioner Rosier answered that the controversy over allocation of resources becomes a problem as game populations are reduced. (Tape Change, HFC 93-38, Side 1) Commissioner Rosier emphasized the need for intensive management. Representative Hoffman recommended that the Legislature not fund the project for five years. He advised that the Legislature scrutinize how the Department has spent prior year appropriations before approving additional funding. Commissioner Rosier pointed out that there is public support 6 for the program. He suggested that a provision for reporting back to the Legislature can be added. Representative Hoffman noted that the Legislature does not generally take back funds that have been appropriated. He noted that the Legislature, as the appropriative body must, "keep the strings attached, so that we are satisfied with what is happening on the administration of the programs that we fund." * Toklat Chum Salmon Restoration - $252.0 thousand dollars This CIP request would fund the restoration of the Toklat chum salmon population in the tributary system of the Tanana drainage. Commercial and subsistence fisheries would benefit. The project includes the construction of raceways and incubator systems at the Clear Hatchery. Commissioner Rosier stressed that the project will continue to support enhancement activities throughout the Yukon drainage. He clarified that although the Department considers the project as Phase I, there are no plans for further development. He stressed that the facility can be used for future support. In response to a question by Co- Chair MacLean, he noted that the facility is state-owned and that there are no plans to transfer the project to private- ownership. Representative Hoffman stated that he was under the impression that the Clear Hatchery would be expanded in the near future. Commissioner Rosier replied that the Department does not plan to expand the facility. He emphasized the need to move Fisheries Rehabilitation Enhancement Development capability to the interior area. He observed that a Yukon treaty is being negotiated. He expected that there will be enhancement programs as a result of the negotiations. * Public Access Development - $2.0 million dollars This CIP request would provide funds to the Sport Fish BRU to construct boating access facilities and purchase land along waterways. The program is a 75/25 percent federal/state match. Co-Chair MacLean observed that the prior appropriations have not been expended. She asked why the funds have not been spent. NOVAL NETSCH, DIRECTOR, DIVISION OF SPORTFISH, DEPARTMENT OF FISH AND GAME clarified that there is a time delay on 7 projects due to negotiations on land purchase and site selection. He agreed to provide Co-Chair MacLean with details of the expenditures. Representative Hoffman asked for a breakdown of anticipated expenditures. He stressed the importance of supplying the Legislatures with details of future expenditures. * Statewide Facility Maintenance and Repair Projects - $1,825.0 million dollars Commissioner Rosier stated, in response to a question by Co- Chair MacLean, that the State provides bunkhouse operations where other facilities are not available for field staff. Mr. Jones interjected that in some instances there is only a curtain to separate sleeping space from public office space. He added that the Department is also facing OSHA violations. Co-Chair MacLean asked if the employees reimburse the State for housing. EARNEST GREEN, PROCUREMENT OFFICER, DEPARTMENT OF FISH AND GAME clarified that employees receive housing in lieu of per diem. Representative Therriault noted that the category of Maintenance and Repair also includes a Cordova boat building extension and parking lot paving. Mr. Jones replied that projects of this type have traditionally be included in the CIP request. * Major Equipment Replacement/Purchase - $141.0 thousand dollars Representative Hoffman expressed his concern that a request for sonar equipment is not included in the request. He stressed the importance of preventing over-escapement in the Bristol Bay area. He estimated that the fishermen of the Bristol Bay area lost $6 million dollars in over-escapement. Commissioner Rosier agreed that over-escapement is a problem. He stressed the need for individual district river forecast projects to terminate the conservative management mode of the Department. Representative Hoffman continue to emphasize the importance of addressing the loss in revenues to Bristol Bay fishermen. Commissioner Rosier replied that the problem is the result of insufficient staff to operate existing equipment. He noted that staffing is terminated at the end of the chum salmon run. 8 Representative Hoffman indicated his intent to submit a CIP request for $26.0 thousand dollars for the Togiak and Nushagak Rivers. * Obtain Family Housing in Dutch HarboCommissioner RosierUnalaska - $500.0 thousand dollars This CIP request would fund the purchase of a four plex building in Dutch Harbor. * Fairbanks Office Addition - $2.2 million dollars This CIP request would fund an addition to office space. The Department's Fairbanks staff would be consolidated. Co-Chair MacLean asked if the request would be an appropriate use of Fish and Game funds. Commissioner Rosier replied that the request would be an appropriate use of Fish and Game funds. Representative Hoffman noted that the original request was for general fund dollars. Mr. Jones stated that the Department was directed by the Office of the Governor to look for reductions. Representative Hoffman suggested the Committee obtain the guidelines for spending Fish and Game Funds. Representative Hoffman observed that $500.0 thousand dollars were appropriated in the FY 93 capital budget. This appropriation was for phase I of a project for improved application of generic fish stock identification. He asked why a request for phase II of the project was not included in the Department's FY 94 CIP request. He noted that the project was to be accomplished over a three year period. He stated that the purpose of the project was to resolve the long term False Pass fishery dispute. JEFF KOENINGS, DIRECTOR, FISHERIES REHABILITATION ENHANCEMENT AND DEVELOPMENT, DEPARTMENT OF FISH AND GAME clarified that the project is proceeding. He added that the project has been delayed by a lack of office space to house the expanded project. He anticipated that the Department will request continuation of the project in a future CIP request. Representative Hoffman asserted that the comfort of Department of Fish and Game employees has been given priority over management of the State's resources.