SB 50 - Act making appropriations for capital projects; and providing for an effective date. FY 94 Capital Budget Overviews were conducted for: Dept. of Labor Alaska Court System Dept. of Military & Veterans Affairs Dept. of Community & Regional Affairs DEPARTMENT OF LABOR CHARLES MAHLEN, Commissioner, Dept. of Labor, came before committee. He explained that the department is requesting five capital projects which total approximately $1 million. The department has taken budget cuts beyond that in the last few years and is now at a point where automation is needed to ease the flow of work. Mr. Mahlen explained that the department's top priority is to join three computer systems in labor standards and safety into a network to streamline operations and make electronic communications and data sharing easier and more efficient. This project is critical to public health and safety. The project is intended to: 1. Computerize clerical, technical, and reporting to accommodate staff decreases. 2. Share data and automate scheduling decisions so that inspectors can focus on areas where problems currently exist. The request for $168.1 for labor standards & safety program automation consists of $70.0 for programming and the remainder for hard and software. A potential reduction in personnel will justify the cost. The second priority is $495.7 for a records managing imaging system for workers' compensation records automation. The workers' compensation division maintains approximately 80,000 active files which are updated frequently and often transferred between Juneau, Anchorage, and Fairbanks. Some files contain several thousand documents. The division microfilms 17,000 to 20,000 inactive files, annually, in response to requests to copy more than 7,000 pages per month. The Dept. of Labor faces increasing costs for paper handling and storage, delays in processing due to cumbersome file tracking and updating procedures, potential loss of files through the physical transfer of paper records, and the security risk associated with transfer of medical records. Continued cost increases and deterioration will be unavoidable unless an imaging system is made available. The Dept. of Labor will cooperate with other departments to ensure statewide imaging compatibility and low overall system costs. Imaging will offer quick and easy access to files, including remote retrieval of documents and simultaneous access to files. It will also provide increased security, reduce exposure to loss, and deliver better service to the client population through more efficient and complete retrieval and distribution of claim information. Increased productivity will result from an interface between document processing and other data collection and reporting. The initial cost estimate is $495.7 for the two-year process. Firm cost estimates cannot be produced until the extent of cost sharing, storage, and other system requirements are determined. The Telecommunication Information Conference on imaging subgroups is preparing an RFP for consulting services. The department expects to comply with all recommendations adopted by TIC. The third priority is $78.6 for mechanical inspection equipment purchases for labor standards and safety. It would purchase a photo licensing system to enhance the certificate of fitness program. The department issues certificates for hazardous painting, explosive handling, and other craft areas. It will soon begin issuing certificates for electrical and mechanical administrators. The system must provide accurate record keeping and prevent fraudulent use of certificates. Personal protective equipment will ensure that staff is adequately protected as inspections are conducted. Commissioner Mahlen noted various items of office furniture and equipment associated with the latter purchase and advised that purchase of a CD Rom system for the boiler code will reduce the time required to write citations. The fourth priority, at a cost of $67.6, would purchase additional equipment for occupational safety and health. The equipment is necessary for effective delivery of services and will allow both enforcement and consultation field staff to better evaluate and correct workplace hazards that could result in injury and illnesses. Requested improvements will allow the division to: 1. Replace unserviceable or inadequate office equipment. 2. Purchase training equipment to expand training opportunities for employers and employees. 3. Purchase personal protection and electronic testing equipment for use by field staff. The fifth priority is $172.0 for economic and demographic information equipment upgrade. The request is intended to improve the appearance and effectiveness of information produced by the department. The department received over 11,000 requests for this type of information in FY 92. Many of those requests were from businesses considering locating in Alaska or expanding ongoing operations. The department can better promote Alaska by improving the display of census, reapportionment, economic information, customized charts and maps, etc. Co-chair Pearce posed questions regarding the proposed WANG memory upgrade in light of WANG'S bankruptcy. DON STUDY, Director, Labor Standards and Safety, Dept. of Labor, noted that the department is presently tied into the WANG system. It would be extremely costly to convert to IBM at this point. The department thus intends to upgrade, now, and then wean itself over a longer period of time. Installation of the Novell operating system on the WANG system will allow for communication with IBM systems. ALASKA COURT SYSTEM ART SNOWDEN, Administrative Director, Alaska Court System, came before committee. He advised that the court system requested a number of capital projects, two of which were included within the Governor's budget. The first is comprised of remaining funding for the Anchorage Courthouse Expansion. Mr. Snowden explained that state courts in Anchorage currently occupy two buildings (one constructed in 1963 and the other in 1974). In 1981 the courts sought funding to expand. Moneys were provided for planning and site acquisition. The legislature subsequently passed a lease-purchase statute and directed the court to follow that route. Planning under that scenario was almost complete when the legislature instructed the court system to build for today's needs rather than future demand. The legislature then provided $5 million for redesign. Following redesign, the Governor provided half of the needed funding last year. Remaining funding is now being requested, with the expectation that the project will go to bid in March. Construction is to commence this year. End, SFC-93, #21, Side 1 Begin, SFC-93, #21, Side 2 There is currently a space deficit of over 100,000 square feet in the Anchorage court system. Many offices are in rental space. There are numerous structural problems. Two nationally known seismic experts have identified major problems within the district court building. Security problems are atrocious. Both the court system and Dept. of Public Safety have testified to that fact. Two mistrials have been declared as a result of prisoner interaction with the public and jurors. Speaking to the $437.5 for court technology enhancements, Mr. Snowden said that last year the courts requested $875.0 for computerization. The court system is the only branch of government that is not computerized. The Governor provided half the funding last year. The other half is being requested this year. Mr. Snowden next spoke to court system requests for renovations at Fairbanks, Kodiak, and Kotzebue and other requests that were not included by the Governor. He stressed need to comply with requirements of the Americans with Disabilities Act, advising that court buildings are the most accessed state facilities. Senator Kerttula termed the lease-purchase period a "fiasco." He added, however, that three, huge, costly facilities were previously proposed by the court system. That is why the legislature called for redesign of the court proposal. Senator Rieger inquired regarding the type and number of computers to be purchased for the requested $195.0. Mr. Snowden answered that approximately 120 units would be involved. The system would call for bids on 46SX equipment. A unit cost of $2.2 would provide smart terminals for judges and clerks. Senator Rieger observed that both the Dept. of Labor and the court system have chosen a system of networked personal computers. Costs for these are substantially less than departments that propose to return to a centralized, mainframe approach. He commented that there appears to be an advantage to a system of linked personal computers. Mr. Snowden added that most new development is done on personal computers. Software and new innovations are thus available in that market long before they are applied to mainframes. In response to a question from Senator Rieger asking if the building at Fourth and K, which is proposed for demolition, could be used for another purpose, Mr. Snowden indicated that seismic experts have said a total rehabilitation (estimated to cost $13 million) should be done or the building should be torn down within five years. That was five or six years ago. It would be cheaper to start from the beginning than to attempt rehabilitation. Responding to a question from Senator Kelly, Mr. Snowden advised that the buildings would be connected by an underground tunnel for ease of access by employees and movement of prisoners. Further discussion followed between Senator Kelly and Mr. Snowden concerning parking for the proposed buildings. Mr. Snowden acknowledged a parking shortage, advising that the system would provide public parking for the handicapped as well as some parking for jurors. Parking will not be provided for employees. The existing garage will be used for judicial and police parking. (Co-chair Pearce noted the arrival of Senators Sharp and Salo.) Senator Frank asked if the court system had considered selling the building that is scheduled for demolition. Mr. Snowden answered negatively, reiterating that it would be extremely expensive to bring the building up to code. DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS JEFF MORRISON, Director, Administrative and Support Services Division, Dept. of Military and Veterans' Affairs; and Pete Wuerpel, Division of Emergency Services, Dept. of Military and Veterans' Affairs, next came before committee. Mr. Morrison explained that the $3 million in authorization for federal funds for statewide environmental compliance restoration projects is primarily for underground storage tanks. If the entire $3 million is not forthcoming, the department will expend federal moneys as they become available. In response to a question from Co-chair Pearce, Mr. Morrison advised that funding would cover both tank replacement and site cleanup. Projects primarily include federal scout armories throughout the state. Funding could also apply to the dozen or more state armories. The requested $3 million represents the maximum amount the department felt it could manage from a larger pool of federal moneys. The $3,165.2 for army guard deferred maintenance statewide is the department's number one priority. Total general fund deferred maintenance needs at national guard armories is slightly less than $6 million. The departmental request was for that amount. The Governor allocated $2 million. The project includes authorization for the full amount of federal funds necessary to bring facilities to standard. That would provide a continuing federal authorization. The department would not have to seek additional authorization if total federal moneys are not received this year. Discussion followed between Mr. Morrison and Senator Frank regarding expected federal funding. Mr. Morrison advised that if the committee proposed to reduce the authorization, "$1 million would probably be more than sufficient." Senator Frank noted that an open-ended authorization was unusual. In response to a further question from the Senator, Mr. Morrison said that past funding has fluctuated wildly. Alaska has been fortunate in having projects on the board and ready to go. If the National Guard has available funds at the end of the year, Alaska is one of the first in line. In the past, the state has received as much as $1 million and as little as $200.0. The second priority is the $1.5 million for emergency operations center enhancements. PETE WUERPEL, Chief of Operations, Division of Emergency Services, Dept. of Military and Veterans' Affairs, next spoke before committee. He directed attention to a diagram (Attachment A) of the basement in the new armory at Ft. Richardson. The armory was first occupied mid 1991. The department is now able to identify what is required to bring the operation center to full capability. The legislature has, through earlier funding, provided approximately $1 million for equipment that is already installed. The current request should complete the facility. Mr. Wuerpel noted that relocation of the trooper dispatch center from its current location to the armory would be particularly advantageous and provide twenty-four-hour, seven-day-a-week capability. Responding to questions from Senator Kelly, Mr. Wuerpel indicated that the operation center is located underground. It meets code for a critical facility. Senator Kelly observed that information provided by the department indicates that the armory does not have a backup generator. Mr. Wuerpel concurred in that observation. He further acknowledged the need and explained that it was deferred due to need for an Alaska Energy Authority engineering analysis. Mr. Morrison noted that the current request does not reflect the entire project but merely the equipment within the EOC. The cost of relocating the troopers will be $430.0. The cost of the emergency generator is also not included. Discussion followed between Co-chair Pearce and Mr. Wuerpel regarding who would be involved and how the facility would function in the event of a disaster such as an earthquake. Mr. Wuerpel explained that federal response elements would be co-located in the armory. All state agencies, local government personnel, and industry representatives would also operate out of the armory. In response to a question from Co-chair Pearce, Mr. Morrison advised that the EOC was significantly funded by the federal government. It is to serve as the national guard emergency center in addition to an emergency center for the state. Long-range plans propose to incorporate the rescue coordination center as well. Speaking to the department's final project, Fairbanks armory design, Mr. Morrison explained that the requested $100.0 is needed to supplement a previous $450.0 appropriation for design completion and preparation of bid documents. The federal government has tentatively approved construction moneys. Because of limitations on the capital budget, the department was unable to ask for construction funds in the current year. Those will be sought in the future. Construction will require approximately $1.3 million in general funds to be matched by $3.6 in federal moneys. Co-chair Pearce directed that the meeting be briefly recessed pending arrival of representatives from the Dept. of Community and Regional Affairs. RECESS - 9:45 A.M. RECONVENE - 9:50 A.M. Upon reconvening the meeting, Co-chair Pearce noted the presence of Senators Phillips and Halford. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS REMOND HENDERSON, Director, Division of Administrative Services, Dept. of Community and Regional Affairs, came before committee. He advised of three requests in the department capital budget: 1. Computer purchase, $600.0. 2. Organizational grants, $600.0 3. Community services and development block grant program request for authority to receive $4 million in federal funds. The $600.0 organizational request is comprised of: 1. $200.0 for second year incorporation of the City and Borough of Yakutat. 2. $400.0 unspecified A. $300.0 for anticipated city and borough formation B. $100.0 for formation of two anticipated cities. The department is requesting the foregoing due to past need for funds to be available once a new entity is formed. As an example, Mr. Henderson explained that the City and Borough of Yakutat was formed in September of 1992. Yakutat has not yet received its funding and will not receive it until the current year supplemental is passed. Budgeting capital moneys will allow the department to provide funding at the time of incorporation. The department has been meeting with representatives from potential boroughs at Wrangell, Meyers Chuck, Pelican, and Gustavus. Potential cities include Nikiski, Nelson Lagoon, Anchor Point, Takotna, and Hyder. The request for $4 million in federal authority is comprised of: 1. The community services block grant, anticipated to be approximately $1.7 million. 2. The community development block grants of approximately $2 million. Community development block grants are used for economic development. A portion of the funding is combined with moneys from the rural economic development initiative. Funds are also used for community development projects as well as technical assistance and planning grants. Funding for community services block grants flows to Ruralcap. It is primarily for emergency community services for the homeless, food nutrition items, etc. Senator Frank requested a list of projects funded last year by community development block grants. Mr. Henderson agreed to provide a list of FY 92 awards. Award of grants is made through a competitive RFP process. Discussion followed between Senator Frank and Mr. Henderson regarding methods of rating proposals prior to award of grants. Senator Frank requested copies of development block grant RFPs. Senator Sharp raised a question regarding restrictions under federal laws governing block grants eligibility. Mr. Henderson voiced his belief that the grants apply to communities where the population is 100,000 or less. Senator Frank requested information relating to criteria and examples of community services block grants. He then asked why services to the homeless and nutritional programs are not handled within the Dept. of Health and Social Services. Mr. Henderson explained that of the $1.7 million for community services, only $150.0 is for the homeless and $5.0 to $15.0 is used for nutrition. While there may be similar programs within the Dept. of Health and Social Services, they are likely to be restrictive and project- specific while block grant moneys are more flexible and may be used for a number of things. Mr. Henderson explained that the $600.0 for computer upgrade would eliminate the present WANG system. The system now costs $90.0 to $100.0 per year to maintain. Further, it is no longer effective in light of microcomputer capabilities and decreasing costs. The WANG system is slow, downtime is increasing, and the effect on productivity is negative. The fact that WANG has filed bankruptcy causes further concerns. At this time, 65% of the staff within the department is using microcomputers. The capital request would allow the remaining 35% to receive similar equipment and microcomputer-based file services. The new system is estimated to reduce operating costs to approximately $20.0. The department has been working with the division of information services which provided estimates for replacement of the existing system. Discussion of computer needs and operations followed between Senator Kelly and Mr. Henderson. Mr. Henderson stressed need for department computers to be able to communicate with field offices. Further discussion followed between Senator Rieger and Mr. Henderson regarding data bases maintained by the department. Mr. Henderson acknowledged that the department no longer maintains records for the housing loan program since its transfer. The department continues to maintain records for the child care program as well as revenue sharing and municipal assistance. The $600.0 would cover the purchase of approximately 50 computers as well as file services for Anchorage, Juneau, Bethel, Nome, etc. Cable costs and printers are also included. Senator Rieger noted that the request from the court system proposes to purchase 200 terminals for $195.0. The Dept. of Labor also presented a detailed list of computer equipment at a cost of $186.0. Requests have been as high as $2.75 million. The range thus appears to be very broad. Senator Rieger next inquired regarding input and coordination by the division of information services. Mr. Henderson explained that the Dept. of Community and Regional Affairs approached the Dept. of Administration asking for assistance in establishing a system to accommodate both IBM and MacIntosh users. The Dept. of Community and Regional Affairs continues to pursue options through private vendors. End, SFC-93, #21, Side 2 Begin, SFC-93, #23, Side 1 Senator Sharp noted pressure from manufacturers and software companies to purchase specific brands and programs. He spoke to difficulty associated with attempts to get a legitimate analysis of needs, and advised that much money and false direction is often involved. Mr. Henderson said the department has been working on changes in its computer system for at least the past three years. This is the first year the effort was approved by the Office of Management and Budget. OMB now recognizes the need. Much thought has gone into the request. ADJOURNMENT The meeting was adjourned at approximately 10:17 a.m.