HOUSE BILL 268 1 "An Act making appropriations for capital project matching grant funds and to capitalize funds; making, amending, and repealing capital appropriations; and providing for an effective date." THE ALASKA COURT SYSTEM ARTHUR SNOWDEN II, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM, addressed the three priorities for the Justice Administration. The first priority would be to finish the Anchorage Courthouse in the amount of $2.89 million dollars. That amount would pay for the security, phone system and new seating. The second project request would provide for commencing work on the Fairbanks Courthouse design in the amount of $4.25 million dollars, which would cover costs associated with a cost-benefits analysis and design recommendations which would determine if the building was stable enough to remodel. Mr. Snowden noted that the third request would be for computer enhancements in the civil area in the amount of $750 thousand dollars. The request would cover the costs of all computers in order that the Alaska Courts could computerize and upgrade the civil section of the Court System, by providing personal computers, operating and application software, laser printers and terminals for court rooms and software upgrades. DEPARTMENT OF ENVIRONMENTAL CONSERVATION NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, referenced the Village Safe Water grant program request. She stated that the allocation would provide basic sanitation services for remote communities. Ms. Slagle specifically identified the anticipated $15 million dollar allocation from the Environmental Protection Agency (EPA) to be used for waste water concerns. Discussion followed between Representative Martin and Ms. Slagle regarding the importance of the proposed projects. Ms. Slagle noted that the projects were based on a priority ranking dealing with health-safety requirements. Ms. Slagle spoke to the following group of projects: Municipal matching grant program in the amount of $16.5 million dollars for projects to provide basic sanitation services for incorporated communities. The funding requested would satisfy federal mandates as well as basic infrastructure needs. Ms. Slagle pointed out that all of 2 the projects would require significant local match to insure a community commitment and long term utilization of the facilities. Representative Brown asked if federal funds were available to match the proposed programs. MIKE BURNS, SECTION CHIEF, MUNICIPAL GRANTS SECTION, DIVISION OF FACILITY CONSTRUCTION & OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, replied that nearly all of the projects have some federal money associated with the request through federal grants or federal loan programs. Ms. Slagle provided Committee members with a breakdown of the specific projects, identifying the federal amounts for each project. [Attachment #1]. Ms. Slagle continued to address the next project, the statewide fuel tank master plan request in the amount of $400 thousand dollars. The project will allow the Department in conjunction with the Bulk Fuel Storage Tank Cabinet Level Task Force to develop a statewide comprehensive strategy for resolving Alaska's fuel tank problems. Representative Brown pointed out that a project such as that already exists. Ms. Slagle advised that those funds previously appropriated addressed only a portion of that problem. KURT FREDRIKSON, DIRECTOR, DIVISION OF SPILL PREVENTION & RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, responded that currently no comprehensive overview exists. All funds previously appropriated have been exhausted. He added that the requested funds would not go toward upgrading existing tanks but rather toward creating a process which would be effective to handle the current concerns. Ms. Slagle continued in addressing the capital request project from the DEC for local hazardous substance release packages in the amount of $500 thousand dollars. She noted that the Department is in the process of developing various response resources to mitigate spills in rural inland areas where equipment and containment control is not readily available. The request would establish a response package for local communities by providing them with basic first aid response equipment capabilities. Ms. Slagle continued in addressing the next project, the coastal near-shore response cleanup equipment request in the amount of $1 million dollars. She added that the project would continue the current plan by establishing four more equipment near-shore packages. She added, the locations 3 have not yet been determined. The next request for the response team equipment, maintenance and supplies in the amount of $100 thousand dollars would be used for equipment to carry out monitoring and oversight responsibilities including detection instruments for hazardous substance identification. Mr. Fredrikson ascertained that the package would bring the response teams up to a basic level of equipment for communication as well as personal protection. He concluded that the request would bring the Department to the foundation level and that additional funding would not need to be requested in future years. Ms. Slagle concluded, the last project for DEC would be the fixed VHF repeater installation and maintenance request in the amount of $100 thousand dollars. She noted that currently there is not an adequate or reliable communication system for use to responses to oil or hazardous substance releases in Southeast or in the North Slope oil production area. Representative Brown asked who would pay for the maintenance on the repeaters. Mr. Fredrikson noted that the maintenance would be covered through a response fund allocation within the Department of Administration. Discussion followed regarding the repeater installation and maintenance between Representative Brown, Representative Martin and Mr. Fredrikson. Representative Brown questioned if the repeater plan would be necessary with the other systems which have already been installed. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Ms. Slagle spoke to DCRA's first capital budget request for the bulk fuel system emergency repair/upgrades in the amount of $1 million dollars. The allocations would be spent on the design and repair of the bulk fuel storage and handling in rural Alaska. She concluded that those funds are needed to resolve significant hazards. Representative Kelly questioned the Head Start fire, health, safety, code compliance request in the amount of $529 thousand dollars. Ms. Slagle commented that the allocation would cover equipment repairs for existing facilities in Head Start. Representative Kelly asked if the request would expand the project. Ms. Slagle understood that the funds would not be used for expansion but instead used for basic emergency repairs of current facilities. Representative Brown asked about the purposed $125 thousand dollar allocation for the Arctic Winter Games. Ms. Slagle 4 replied, that allocation would pay for the transportation, clothing, equipment and team dues for the 1996 games to be hosted by Alaska. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, stated that last year $250 thousand dollars had been appropriated for that concern. DEPARTMENT OF CORRECTIONS BOB COLE, DEPUTY COMMISSIONER, DEPARTMENT OF CORRECTIONS, responded to Representative Brown's question regarding the computer system needs within the Department stressing the importance of that need. The current criminal information system is over ten years old making it difficult to receive reports from it; that system does not interact well with the criminal justice system. Representative Brown pointed out that the request would not have a federal match. (Tape Change, HFC 95-106, Side 2). UNIVERSITY OF ALASKA Representative Martin questioned the University's deferred maintenance request in the amount of $7 million dollars. He understood that cost had been covered last year with the $21 million dollar allocation. Ms. Slagle stated that the University did not receive any money last year for deferred maintenance. She noted those funds had been allocated in 1994. WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, responded that the University has a $156 dollar maintenance backlog. In 1994, the University received a total of $12 million dollars for code corrections and building completions, of which only $7 million dollars went toward deferred maintenance. Ms. Redman continued, there exists $6.5 million dollars worth of code corrections spread throughout all the campuses. The requested allocation would be used for $5.3 million dollars in bid-ready deferred maintenance and $6.5 million dollars for code corrections. The Governor has allocated $7 million dollars to be used for those two components. Representative Martin questioned the $3 million dollar appropriation for the University sciences building completion and equipment. Ms. Redman stated that the total cost of the facility was $30 million dollars. The Legislature short funded that facility at $26 million, 5 allowing the University to use the interest for the facility. All those funds were used for the construction of the facility. Representative Martin asked what the interest was used for. Ms. Redman noted that the interest had been used for the intent for the construction of the facility. Representative Brown referenced the University of Alaska, Anchorage-digital communications network request in the amount of $1.4 million dollars. She asked if the project had been previously funded. Ms. Redman stated that it had not received any funds to date. Representative Brown inquired where the money originated from to complete the first phase. Representative Brown understood that the project would be scaled back thus providing a smaller request. Ms. Redman noted that $1.4 million dollars was the smaller number. The original request was for $6.5 million dollars. Representative Brown interjected that additional funding would be needed to complete the project and asked for additional information regarding the need of the project. MUNICIPAL CAPITAL MATCHING GRANTS Ms. Slagle advised that the following material identifies those appropriations set aside by communities from the appropriations which have occurred in the front section. Specific projects have been identified which the communities have requested based on priority listings submitted to the Office of Management and Budget, who then determined the appropriate allocation. Ms. Slagle noted that the dollar amount could exceed the fiscal amount allocated, as the communities can access those funds appropriated in the prior two fiscal years. Representative Martin recommended that the effective date be changed to July, 1996. He thought that would save the State $18.3 million dollars. Ms. Slagle stated that the money would be appropriated to the matching grants in the front section of the bill. They would be moved from the general fund to the matching grant funds. The projects in the back- section are not funded from the general fund although, they are funded from those monies which have been appropriated into that matching grant fund. HB 268 was HELD in Committee for further consideration.