HB 535 An Act making appropriations for capital project matching grant funds and for capital projects; and providing for an effective date. 1 OVERVIEW: Public Safety, Environmental Conservation, Community and Regional Affairs, Corrections, University, Court System DEPARTMENT OF PUBLIC SAFETY C.E. SWACKHAMMER, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY explained capital project requests for the Department. The total request by the Department was $1.575 million dollars. * License Plates This project request of $350.0 thousand dollars would provide for the purchase of license plates to maintain storage levels necessary for their continued issuance. The Division is required by statute to issue license plates. Therefore, the purchase would be mandatory rather than a discretionary item. The license plates are budgeted in the capital budget rather than the operating budget due to the cost of the total annual purchase. * Aircraft Equipment This project request for $400.0 thousand dollars would allow for the yearly purchase of equipment needed to replace worn- out or obsolete equipment. For the Department to carry out its law enforcement and search and rescue responsibilities, it is essential that the aircraft be maintained in an airworthy condition along with the communication equipment. A minimum level of flying hours must be maintained to meet the department's enforcement objectives. * Fish & Wildlife Protection Enforcement Vessel Repairs The project request for $500.0 thousand dollars would provide for repairs, conversions, servicing and maintenance of the patrol vessels Woldstad, Trooper, Enforcer Polaris, Burton and the small vessels. Repairs to these vessels would include dry docking, deck and hull cleaning and painting, zinc installation, inspection and repair of rudders and propellers, inspection, repairs and calibration of electronics, repairs to bow thruster 2 cooling, air intakes and shut-off valves, and tune-ups of all engines. * Alaska State Troopers Replacement Equipment The project request of $200.0 thousand dollars would provide funding for the replacement of equipment needed throughout the Division of Alaska State Troopers. These funds have been requested in the capital budget due to lack of funds in the Alaska State Troopers' operating budget for replacement equipment. * Fish & Wildlife Protection Equipment Replacement The project request of $125.0. thousand dollars would be used to purchase and replace equipment such as skiffs, outboard motors, snow machines, all-terrain vehicles, and other equipment required for the day to day enforcement activity of the division of Fish and Wildlife Protection. DEPARTMENT OF ENVIRONMENTAL CONSERVATION JOHN SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, expressed his appreciation for the Committee's support of the village safe water project. KEITH KELTON, DIRECTOR OF THE DIVISION OF FACILITY CONSTRUCTION AND OPERATION explained the municipal grants. The Municipal Matching Grant program exists to carry out its statutory mandate to provide support for and funding of basic sanitation facilities to municipalities. Mr. Kelton noted the two projects recommended for matching grant funding as well as the Department's Capital Improvement Project Request: Nome - Moonlight Springs Water Transmission Line Upgrade and King Cove - Water Development project. * Facility Construction and Operation The project request of $2,880.7 million dollars would fund the construction of water, waste water and solid waste facilities in the State's largest communities. The funding would be provided through the Municipal Matching Grants program as directed by statute, within the Division of Facility Construction and Operation. * Village Safe Water The appropriation of $23,288.5 million dollars would be used 3 to plan, design, and construct water, sewage and solid waste improvements in rural Alaska. Discussion followed among Committee members with regard to the availability of federal funds and the use of those funds. Representative Martin asked specifically about the Northway Washeteria. The additional funding requests for the Washeteria is a result of unforseen costs due to the problems with piping in the permafrost. Representative Navarre commented that some federal grant funds were not listed in the overview and specifically asked if King Cove was eligible for federal grant funds. Mr. Kelton noted that the Farmers Home Administration received an appropriation for $15 million dollars available for village safe water facilities as matching grant funds. The grant money would be provided directly to the communities, hence the omission in the overview calculations. Mr. Kelton pointed out that King Cove would receive approximately half of the local share money from the Farmers Home grants. DOUG REDBURN, CHIEF OF WATER QUALITY MANAGEMENT SECTION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the capital project requests of the Department. * Polluted Waterbody Assessment The project request of $200.0 thousand dollars would provide for the completion of water quality assessments on polluted waters. This request is part of a three year plan to comprehensively assess water quality and prepare recovery plans for the major polluted surface waters in Alaska. Mr. Redburn noted that the Department of Environmental Conservation has worked in conjunction with the Department of Natural Resources and the Department of Fish and Game when researching water quality information. MIKE CONWAY, DIVISION OF OIL SPILL RESPONSE AND PREVENTION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION explained the capital project requests of the Department. * Local Response Agreements The project request of $400.0 thousand dollars would provide funds needed by local communities who have a Local Response 4 Agreement with the Department, in order to augment their training and equipment to be able to assist the Department in responding to releases of oil and hazardous substances. * Fixed VHF Radio Repeater Installation The project request of $150.0 thousand dollars for the installation of a VHF Radio Repeater would establish, maintain and enhance the Department's ability to communicate vital information when responding to an oil or hazardous substance spill. Both the local response agreement and radio installation request would be appropriations made from the 470 Fund. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS REMOND HENDERSON, DIRECTOR OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS explained the capital budget project requests for the Department. * Community Block Grants A minimum of 90% of the Community Services Block Grant program funds are required by federal regulation to be passed through to community action agencies so that they may provide services to low-income persons and homeless persons throughout the State. The state agency in which these grants are passed is the Rural Alaska Community Action Program (Rural CAP). The community block grant expenditure request of $500.0 thousand dollars is for the $2,000,000 million dollars received from the Department of Health and Social Services and the $3,000,000 million dollars from the Department of Housing and Urban Development. GLORIA MANNI, MANAGER OF ADMINISTRATION FOR DIVISION OF ENERGY, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS explained the capital project requests for the Department. * Electrical System Life, Health and Safety Improvements The project request for $730.0 thousand dollars would provide follow-up funding through grants for the agency's program to correct problems in rural electrical systems that are or could become a threat to life, health and safety in rural communities. There is no matching grant requirement for this expenditure although it is the Department's policy to use these funds to leverage local matching funds. 5 * Rural Power Systems Upgrades The project request for $520.0 thousand dollars would provide funding to continue the Division of Energy's achievement of a variety of rural power systems upgrades that have been identified through the Rural Technical Assistance and Circuit Rider Maintenance programs or which have been pointed out by community officials and legislators. Projects realized under this program will provide for more efficient operation of rural power systems. * Bulk Fuel System Emergency Repairs/Upgrades The project request for $2,000.0 million dollars would fund the design and repair upgrade of bulk fuel storage and handling facilities in rural Alaskan communities which are dependent upon seasonal fuel delivery and long-term storage. Repairs and upgrades are critically needed in order to resolve significant hazards to life, health, safety and the environment, as well as code violations, and to ensure continued delivery of vital petroleum products. Discussion followed regarding inefficient storage and containment of fuel. It was noted that there are new federal requirements to deal with that situation and as a result additional funding would be needed to be in compliance with these requirements. Co-Chair MacLean asked how the agency would comply with these requirements if the Governor does not include adequate funding. The Department responded that lack of funding would cause some communities not to be served. * Small Utilities Improvements The program request of $2,000.0 million dollars would fund small power projects which reduce the cost of generating or transmitting power to the customers of the utility. Grantees are required to provide a 25% match for these grants. * Southeast Energy Fund Grants The program request of $4,000.0 million dollars would make grants from the Southeast Energy Fund to utilities participating in the power transmission intertie between the Swan Lake and Tyee Lake hydroelectric projects for power projects, for repayment of loans and for payment of bonds. 6 This would be an allocation from the Four Dam Pool Transfer Fund. Discussion followed regarding the Operational, Technical and Emergency Assistance. It was noted that the division of energy would provide the services for FY 95. * Organizational Grants The project request of $100.0 thousand dollars would fund the third and final entitlement payment to the City and Borough of Yakutat for FY95. DEPARTMENT OF CORRECTIONS SHIRLEY MINNICH, DIRECTOR OF DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS explained the project request of the Department. * Statewide Renewal and Replacement The project request of $1,000.0 million dollars would fund the renewal and replacement of worn out building components and retrofitting and replacement of outdated building systems. It also would correct code deficiencies in the Department's facilities to resolve major life/safety problems. UNIVERSITY OF ALASKA, FAIRBANKS Representative James addressed the University of Alaska project request for the funding of the Virus Free Seed Potato Research. * University of Alaska, Fairbanks Virus Free Seed Potato Research The project request for $120.0 thousand dollars would establish a diagnostic clinic at UAF for regular tests of potato diseases. The increment would fund 3.0 FTE research associates, 2.0 FTE research assistants, pool for lab assistants, equipment, supplies and travel. COURT SYSTEM KIT DUKE, FACILITIES MANAGER FOR ADMINISTRATION, JUDICIAL BRANCH explained the capital project requests for the agency. This project request of $4,800,000 million dollars for the completion of construction of an Anchorage Court 7 House addition, will supplement prior funding of $5,000,000 million dollars for design authorized in 1991, $19,750,000 million dollars for construction received in 1992 and $19,500,000 million dollars for construction received in 1993. Authorization of the remaining funding will allow completion of a six-story, free-standing building of approximately 196,000 square feet in front of the existing state parking garage. HB 535 was HELD in Committee for further consideration.