SENATE BILL NO. 46 "An Act making capital appropriations and appropriations to capitalize funds; and providing for an effective date." This bill had previously been heard in the Senate Finance Committee. Unless otherwise noted, amendments are considered to the committee substitute, Version "Y" adopted at the previous hearing. Amendment #35: This amendment inserts a new subsection into Section 52. DEPARTMENT OF ADMINISTRATION., on page 119, following line 26 to read as follows. (c) The sum of $4,350,000 is appropriated from the general fund to the Department of Administration, commissioner's office, for distribution to state agencies to offset the increased chargeback rates for statewide services as identified in the statewide federal cost allocation plan. AND Amendment #36: This amendment inserts two new subsections into Section 20. FUND TRANSFERS., on page 96, following line 18 to read as follows. (d) The sum of $12,000,000 is appropriated from the general fund to the Alaska public building fund (AS 37.05.570). (e) The amount necessary to have an unobligated balance of $5,000,000 in the state insurance catastrophe reserve account in accordance with AS 37.05.289 is appropriated from the general fund to the state insurance catastrophe reserve account (AS 37.05.289). This amendment also deletes "$300,000" from subsection (b) of Section 52. DEPARTMENT OF ADMINISTRATION., on page 119, line 25 and inserts "$40,300,000". The amended language reads as follows. (b) The sum of $40,300,000 is appropriated from the general fund to the information services fund (AS 44.21.045(a)). The Committee adopted the two amendments at the previous hearing. Co-Chair Wilken offered a motion to rescind action taken on Amendments #35 and #36. There being no objection, the Committee's action adopting Amendment #35 and Amendment #36 was RESCINDED. Co-Chair Green announced that these amendments would be replaced with a new amendment. Amendment #35 & 36(A): This amendment reads as follows. This amendment corrects amendments #35 and #36 This allows the authorization to spend from the funds that are capitalized. SB 46 "F" Amendment offered by Senator Green Add: Sec. 1. Enterprise Technology $7,959,500 Information Svcs Fund Services and Statewide Administrative System Replacement capital projects Deferred Maintenance for $12,000,000 Public Building Fund Buildings in the Public Building Fund Sec. 20. FUND TRANSFERS. (c) The sum of $40,000,000 is appropriated from the general fund to the information services fund. (d) The amount necessary to have an unobligated balance of $5,000,000 in the state insurance catastrophe reserve account in accordance with AS 37.05.289 is appropriated from the general fund to the state insurance catastrophe reserve account. New Section XX. Department of Administration. The sum of $4,350,000 is appropriated to the Department of Administration, Commissioner's Office for the distribution to state agencies to offset the increased chargeback rates for statewide services as identified in the Statewide Federal Cost Allocation Plan. GINGER BLAISDELL, Staff to Co-Chair Green, explained the new Amendment #35 & 36(A), saying it would have a net zero impact. [Note: The Committee's intent was to adopt the amendment, although no motion was made to do so.] Co-Chair Green determined the amendment to be ADOPTED without objection. Amendment #37: This amendment inserts two new bill sections to read as follows. Sec. XX. DEPARTMENT OF HEALTH AND SOCIAL SERVICES PERSONAL NEEDS ALLOWANCE FOR ASSISTED LIVING HOMES. (a) It is the intent of the legislature that the Department of Health and Social Services repeal 7 AAC 43.1058(k)(1)(B) effective July 1, 2005. (b) It is the further intent of the legislature that the Department of Health and Social Services shall adopt new emergency regulations establishing a personal needs allowance for recipients residing in an assisted living facility equal to the monthly income limit set in AS 47.07.020(b)(6) minus $260.00. Until such time as the department can adopt these regulations at 7 AAC 43.1058(k)(1)(B), the department shall apply personal needs allowance for recipients residing in an assisted living facility equal to the monthly income limit set in AS 47.07.020(b)(6) minus $260.00. This meets the requirements for finding of a public, health, safety and welfare emergency under AS 44.62.250. (c) The sum of $363,500 is appropriated to the Department of Health and Social Services, senior and disabilities Medicaid services in order to adopt new emergency regulations as outlined in subsections (a) and (b) of this section for the fiscal year ending June 30, 2006, from the following sources in the amounts stated: Federal Receipts $209,300 General Fund Match 154,200 Sec.__. EFFECTIVE DATE. (a) Section XX (a) is effective July 1, 2005. (b) Section XX (b) is effective July 2, 2005. Co-Chair Green moved for adoption and outlined the amendment. There being no objection, Amendment #37 was ADOPTED. Amendment #38: This amendment inserts a new subsection in to Section 20. FUND TRANSFERS., on page 96, following line 18 to read as follows. (d) The sum of $2,693,700 is appropriated from the general fund to the Alaska marine highway system fund (AS 19.65.060(a)). This amendment also stipulates an effective date of July 1, 2005 for the inserted subsection. Accompanying explanatory language reads as follows. DESCRIPTION: Marine highway fuel increase The FY 06 Governor's request as proposed in December 2004 was based on $1.17 per gallon of fuel. The volatility of fuel prices is reflected in the $1.54 per gallon average price to date in FY 05. If we use the Alaska Department of Revenue's Spring Forecast to estimate prices in FY 06, the result is a delivered fuel price for the AMHS at a slightly lower average price of $1.425 per gallon estimate. The marine highway system is projected to use approximately 10.7 million gallons of fuel in FY 06. Co-Chair Wilken moved for adoption. Co-Chair Green objected for an explanation. Ms. Blaisdell explained that this amendment would appropriate over $2 million general funds for Alaska marine highway vessel operations. The amount approved in the FY 06 operating budget legislation would be insufficient. Senator Dyson understood therefore that this is a FY 06 operating budget expenditure. Co-Chair Green clarified this would be a supplemental appropriation to the amount provided in the operating budget. Ms. Blaisdell informed that this amendment was offered at the request of the Office of Management and Budget and the Department of Transportation and Public Facilities. The need for additional funding was realized at the time that the operating budgets for the Department of Transportation and Public Facilities was closed out. Senator Dyson clarified this is not an FY 05 supplemental appropriation. Co-Chair Wilken affirmed. There being no objection, Amendment #38 was ADOPTED. Amendment #39: This amendment deletes the City of Sand Point - Purchase and Upgrade of Old Reeve Aleutian Airways Building (HD 37) component of the Airport Improvement Program Budget Request Unit (BRU), Department of Transportation and Public Facilities on page 49, lines 29 - 32 and the $1 million allocation to that component. This amendment also deletes the Ketchikan: Airport Improvements (HD 1) component of the Airport Improvement Program BRU, Department of Transportation and Public Facilities on page 51, lines 5 and 6 and the $500,000 allocation to that component. This amendment also deletes Sand Point: Terminal Redevelopment Plan (HD 37) of the Airport Improvement Program BRU, Department of Transportation and Public Facilities on page 52, lines 31 and 32 and the $200,000 allocation to that component. This amendment also adds a new City of Sand Point - Purchase and Upgrade of Old Reeve Aleutian Airways Building (HD 37) component to the Congressional Earmarks BRU, Department of Transportation and Public Facilities on page 65, line 6 and allocates $1 million to the component. This amendment also adds a new Ketchikan: Airport Improvements (HD 1) component to the Congressional Earmarks BRU, Department of Transportation and Public Facilities on page 65, line 6 and allocates $500,000 to the component. This amendment also adds a new Sand Point - Terminal Redevelopment Plan (HD 37) component to the Congressional Earmarks BRU, Department of Transportation and Public Facilities on page 65, line 6 and allocates $200,000 to the component. Accompanying explanatory language reads as follows. Description: These projects are Congressional Earmarks, rather than Airport Improvement Projects. The funding source (federal receipts) does not change. This amendment just moves the projects from the Airport Improvement Program appropriation to the Congressional Earmarks appropriations. Co-Chair Wilken moved for adoption. Ms. Blaisdell characterized this as a technical amendment. She proposed changes to the amendment to delete the City of Sand Point - Purchase and Upgrade of Old Reeve Aleutian Airways Building and corresponding $1 million allocation and change the title of the Sand Point - Terminal Redevelopment Plan (HD 37) component to read, "Sand Point - Terminal Redevelopment (HD 37) and increase the allocation to that component to $1 million. 4:53:37 PM Ms. Blaisdell continued to outline the proposed amendment to the amendment. Co-Chair Green clarified the projects should be categorized as congressional earmarks. Ms. Blaisdell affirmed, noting the federal funds. [Note: The Committee intent was to amend the amendment to incorporate the changes proposed by the witness, although no motion was made.] Co-Chair Green determined Amendment #39 to be AMENDED and ADOPTED without objection. 4:54:17 PM Amendment #40: This amendment increases the appropriation to the Alaska Aviation Safety Project Phases 2 and 3 (HD 1-40) component of the Department of Military and Veterans Affairs on page 38, lines 13 through 15 from $8,452,000 Other Funds to $11,452,000 Other Funds. Accompanying explanatory language reads as follows. Description: Alaska Aviation Safety Project Phases 2 and 3 (HD 1-40) The department has recently received word that NASA will be increasing this grant by $3 million. This project involves mapping the most dangerous major air corridors in Alaska using ortho-rectified, remote imaging and digital elevation models to create 3-D visual fly-throughs. The aviation community, Rescue Coordination Center (RCC) and the Medallion Foundation will use these renderings. The goal of this research is to apply advanced sciences and technology to decrease aircraft accidents and related fatalities. Co-Chair Wilken moved for adoption. Co-Chair Green overviewed the explanatory statement. There being no objection, Amendment #40 was ADOPTED. 4:54:53 PM Amendment #41: This amendment deletes the language pertaining to FY 03 from subsection (d) of Section 35. RATIFICATIONS., on page 106, lines 12 through 14. The amended language reads as follows. (d) The expenditures by the Department of Commerce, Community and Economic Development for a qualified trade association contract for the fiscal year ending June 30, 2004, are ratified in the amount of $158,174. Accompanying explanatory language reads as follows. Description: Technical correction to reflect just fiscal year 2004. Co-Chair Wilken moved for adoption. Co-Chair Green clarified this is a technical amendment. JOAN BROWN, Chief Budget Analyst, Office of Management and Budget, Office of the Governor, affirmed this is a technical amendment to eliminate ratification amounts for FY 03 from this provision. AT EASE 4:56:13 PM / 4:56:15 PM There being no objection Amendment #41 was ADOPTED. 4:56:43 PM Amendment #42: This amendment changes the funding source of the $55,400 appropriation to the Interior Region Timber Marketing Prospectus (HD 6) component of the Department of Natural Resources on page 40, lines 30 and 31 from Statutory Designated Program Receipts (Fund 1108) to Timber Sales Receipts (Fund 1155). Accompanying explanatory language reads as follows. Description: Interior Region Timber Marketing Prospectus There is no source of SDPR for the Interior Region Timber Marketing Prospectus. Timber Sales Receipts could fund this program. Co-Chair Wilken moved for adoption. Co-Chair Green explained this is another technical change. There being no objection, Amendment #42 was ADOPTED. 4:57:11 PM Amendment #43: This amendment increases the allocation to the Fairbanks International Airport: Terminal Area Development (HD 7- 11) component of the Airport Improvement Program BRU, Department of Transportation and Public Facilities on page 50, lines 19 through 21 from $2.2 million to $40.6 million. A notation states "This will change the Airport Improvement Program appropriation amount on page 48." Accompanying explanatory language reads as follows. Description: New fund sources: $3,000,000 Federal Receipts (Fund 1002) 10,000,000 International Airport Revenue Funds (Fund 1027) 27,600,000 International Airport Construction Funds (Fund 1112) This funding change was submitted in the March 25, 2005 amendment package sent to the Legislature. A terminal area development plan was completed for FAI under the guidance and direction of the FAI Terminal Development Technical Committee consisting of representatives from FAI, DOT&PF, FAA (Federal Aviation Administration) and the airlines. As a subtask of this effort, a deficiency evaluation was completed for the facility. This deficiency study notes that three independent structural evaluations found portions of the building to be structurally unsound and that under a design level seismic event the building will be subject to possible collapse and significant damage. The study also noted that portions of the facility Department of Education and Early Development not meet required fire and life safety codes, are functionally deficient and that the buildings' physical systems (HVAC, electrical, etc.) were near the end of their useful life and will require major repair or replacement in the near future. A preferred alternative for replacing and upgrading portions of the facility to address the noted deficiencies while providing adequate space for the expected growth in passenger traffic in the near term was developed and agreed upon by the members of the Technical Committee. Co-Chair Wilken moved for adoption. Ms. Blaisdell explained that the Office of Management and Budget has identified additional funds, none of which are general funds. Co-Chair Green clarified this amendment would have no net increase in general fund expenditure. Ms. Blaisdell stressed the significant increase in use of other funds. There being no objection, Amendment #43 was ADOPTED. 4:58:23 PM Amendment #44: This amendment inserts a new subsection into Section 22. OFFICE OF THE GOVERNOR., on page 98, line 9 to read as follows. (a) Section 8(a), ch. 6, SLA 2005, is amended to read: (a) The sum of $375,000 is appropriated from the general fund to the Office of the Governor for direct support of national efforts to open the coastal plain of the Arctic National Wildlife Refuge for oil and gas exploration and development, and other oil and gas and natural resource development projects, for the fiscal years ending June 30, 2005, and June 30, 2006. New Text Underlined This amendment then renumbers the existing subsections of Section 22 accordingly. Accompanying explanatory language reads, "Description: This extends the purpose of the appropriation." Co-Chair Wilken moved for adoption. Co-Chair Green objected for explanation, noting it was offered at the request of the Office of Management and Budget. Ms. Blaisdell explained this amendment relates to "appropriation items that are in the gas pipeline section of the supplemental portion of this bill." Co-Chair Green ordered the amendment TABLED. 4:59:11 PM Amendment #45: This amendment adds "and other oil and gas and natural resource development projects" to subsection (a) of Section 22. OFFICE OF THE GOVERNOR., on page 98, lines 9 through 12. The amended subsection reads as follows. (a) The sum of $125,000 is appropriated from the Alaska Permanent Fund Corporation receipts to the Office of the Governor for direct support of national efforts to open the coastal plain of the Arctic National Wildlife Refuge for oil and gas exploration and development, and other oil and gas and natural resource development projects, for the fiscal years ending June 30, 2005, and June 30, 2006. Accompanying explanatory language reads, "Description: This expands the purpose of the appropriation." Co-Chair Wilken moved for adoption. Ms. Blaisdell explained that this amendment is similar to Amendment #44. Co-Chair Green objected to the motion and ordered the amendment TABLED. 4:59:41 PM Amendment #46: This amendment increases the general fund appropriation to the Management Information System (HD 1-40) component of the Department of Law on page 38, lines 8 and 9 from $500,000 to $1 million. Accompanying explanatory language reads as follows. Description: This amendment restores this project to the full amount requested in the Governor's Capital Budget. The agency is concerned that reducing this appropriation to 50% jeopardizes its ability to purchase needed software and hardware to achieve critically needed improvements in technology in the State's largest law office. The current timekeeping and billing system is outdated, case management and document management is practically nonexistent when measured against industry standards. The agency is hampered in its ability to supply accurate and dependable management information that would be the cornerstone of meaningful and measurable performance information. Co-Chair Wilken moved for adoption. Ms. Blaisdell outlined the explanatory statement. There being no objection, Amendment #46 was ADOPTED. 5:00:37 PM Amendment #47: This amendment deletes the language of Section 10. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM; INTENT. (b), on page 92, lines 16 - 20 and inserts new language to read as follows. (b) The sum of $24,706,539, received by the National Petroleum Reserve - Alaska special revenue fund (AS 37.05.530) under 42 U.S.C. 6508 by August 31, 2005, is appropriated to the Department of Commerce, Community and Economic Development from capital project grants under the National Petroleum Reserve - Alaska impact grant program to the following municipalities for the purposes stated in the amounts set out: MUNICIPALITY PROJECT AMOUNT (1) North Slope Borough Social and cultural $275,880 study - phase 2 (2) North Slope Borough Wainwright youth 229,500 program (3) Nuiqsut Local government 468,000 operations/cultural coordinator (4) North Slope Borough Wainwright softball 35,000 field (5) Barrow City impound and 174,389 disposal site project (6) North Slope Borough Atqasuk energy 100,042 assessment (7) North Slope Borough Wainwright local 311,500 government operations (8) Barrow City Hall building 69,413 addition feasibility study (9) Nuiqsut Youth center operations 150,000 and maintenance (10) Atqasuk Atqasuk local 336,468 government operations (11) Barrow Roller rink renovation 63,556 feasibility study (12) North Slope Borough Utility master plan/ 106,221 emergency plan (13) North Slope Borough Misdemeanor probation 346,071 officer (14) North Slope Borough Fire equipment and 250,000 training (15) Barrow Barrow local 1,385,843 government operations (16) Nuiqsut Design/install 200,000 retractable boat ramp (17) North Slope Borough Continuing studies to 2,461,368 investigate wildlife/subsistence (18) North Slope Borough Oil spill response team 737,867 (19) North Slope Borough Police officers for 1,486,689 NPR-A villages (20) North Slope Borough Health, survival, and 654,426 sustainability of key subsistence resources (21) North Slope Borough Workforce development 3,729,451 program (22) North Slope Borough Mayor's job program 2,527,961 (23) North Slope Borough Police importation 1,101,512 combat program (24) North Slope Borough North Slope science 425,578 initiative (25) North Slope Borough Village capacity 968,182 building (26) North Slope Borough NPR-A technical 1,468,508 review team (27) North Slope Borough Allied health 3,400,000 training center (28) North Slope Borough Wainwright city office 38,114 renovation (29) Atqasuk Youth center addition 680,000 to community center (30) North Slope Borough Wainwright lagoon 525,000 boat launch (c) If the amount available for appropriation from the National Petroleum Reserve - Alaska special reserve fund (AS 37.05.530) under (b) of this section is less than $24,706,539, then each of the appropriations made by (b)(1) - (30) of this section is reduced in proportion to the amount of the shortfall. This amendment also stipulates a lapse date of June 30, 2006 for the appropriations made in Section 10(b)(1)-(13); a lapse date of June 30, 2007 for the appropriations made in subsections (14)-(16); a lapse date of June 30, 2008 for the appropriations made in subsections (17)-(26); and a lapse date of June 30, 2009 for the appropriation made in subsection (27). The appropriations made in subsections (28)-(30) lapse under AS 37.25.020. Co-Chair Wilken announced this amendment would be NOT OFFERED, as it is a duplicate of Amendment #30, which was adopted at the previous hearing. 5:00:49 PM Amendment #48: This amendment inserts a new subsection to Section 10. NATIONAL PETROLEUM RESERVE - ALASKA IMPACT GRANT PROGRAM; INTENT., on page 92, following line 20 to read as follows. (c) That portion of the amount appropriated by (B) of this section that is not subject to a signed grant agreement between the Department of Commerce, Community and Economic Development and an impacted municipality by August 31, 2005, lapses into the National Petroleum Reserve - Alaska special revenue fund (AS 37.05.530) September 1, 2005. Accompanying explanatory language reads as follows. Description: This amendment is needed to allow lapsing into the NPR-A Fund for funds that do not have a signed grant agreement. Co-Chair Wilken moved for adoption. Co-Chair Green understood this to be a technical amendment. Ms. Blaisdell affirmed and explained the language had been inadvertently omitted. There being no objection, Amendment #48 was ADOPTED. 5:01:41 PM Amendment #49: This amendment inserts "and construction" to the title of the Lower Kuskokwim - Kilbuck Elementary Deferred Maintenance, Bethel (HD 38) component of the Major Maintenance Grant Fund (AS 14.11.007) BRU, Department of Education and Early Development on page 79, lines 22 through 24. The amended component title is "Lower Kuskokwim - Kilbuck Elementary Deferred Maintenance, and Construction, Bethel (HD 38)". The $24,251,565 general fund allocation remains unchanged. Senator Hoffman moved for adoption. Co-Chair Green objected for an explanation. Senator Hoffman explained this amendment would provide the Lower Kuskokwim School District the option to utilize the funds to construct a new school if deemed appropriate. Co-Chair Wilken understood that the Department of Education and Early Development must first review new school construction projects. He asked if this facility has undergone the approval process. Senator Hoffman responded that this project has completed the Department of Education and Early Development review. Senator Stedman clarified the estimated cost of deferred maintenance needs for the school is $24 million. Senator Hoffman affirmed. Co-Chair Green requested Senator Hoffman explain how the estimate was achieved. Senator Hoffman replied that the Lower Kuskokwim School District submitted this amount to the Department after prioritizing the needs. Senator Stedman asked if the theory is that demolishing the existing school and constructing a new facility might be more economical. Senator Hoffman affirmed that such a determination could be made. There being no objection, Amendment #49 was ADOPTED. 5:03:36 PM Amendment #50: This amendment adds a new Special Olympics Games component to the Grants to Named Recipients (AS 37.05.316) BRU, Department of Commerce, Community and Economic Development on page 3 line 30 and 31 and appropriates $250,000 general funds to the component. Senator Dyson moved for adoption. Senator Dyson offered a motion to amend the amendment. The amendment to the amendment reduces the general fund appropriation to the Special Olympics Games from $250,000 to $125,000. The amendment to the amendment also adds a new Arctic Winter Games component to the Grants to Named Recipients BRU and appropriates $125,000 general funds to that component. The amendment to the amendment also adds a new 2006 National Veterans Wheelchair Games component to the Grants to Named Recipients BRU and appropriates $250,000 general funds to that component. The total appropriation to the amended amendment is $500,000 general funds. The amendment was AMENDED without objection. Without further objection Amendment #50, as amended, was ADOPTED. 5:04:51 PM Amendment #51: This amendment adds a new Fraternal Order of Alaska State Troopers (FOAST) room conversion and facility upgrades component to the Grants to Named Recipients BRU, Department of Commerce, Community and Economic Development on page 3, lines 30 and 31 and appropriates $12,000 general funds to the component. Co-Chair Wilken moved for adoption. Co-Chair Green objected. Co-Chair Green asked if Members had further objection and hearing none, declared Amendment #51 ADOPTED. 5:05:17 PM Amendment #52: This amendment inserts a new Fraternal Order of Alaska State Troopers (FOAST) Photo/Video Project Program Implementation component to the Grants to Named Recipients BRU, Department of Commerce, Community and Economic Development on page 3, lines 30 and 31 and appropriates $50,000. The fund source is not specified. Co-Chair Wilken moved for adoption. Co-Chair Green objected to the motion and ordered the Amendment TABLED. 5:05:31 PM Amendment #53: This amendment inserts a new City of Adak - Adak Arctic Shuttle Pre-Feasibility Study component to the Grants to Municipalities (AS 37.05.315) BRU, Department of Commerce, Community and Economic Development on page 8, lines 11 and 12 and appropriates $50,000 to the component. The fund source is not specified. Co-Chair Wilken moved for adoption. Co-Chair Green objected to the motion and TABLED the amendment. AT EASE: 5:05:48 PM / 5:06:17 PM Amendment #54: This amendment inserts a new Service High School PTSA Scoreboard Improvement component to the Grants to Named Recipients BRU, Department of Commerce, Community and Economic Development on page 3 lines 30 and 31 and appropriates $20,000 to the component. The fund source is not specified. Co-Chair Wilken moved for adoption. There being no objection, Amendment #54 was ADOPTED. 5:06:31 PM Amendment #55: This amendment inserts a new Municipality of Anchorage - 74th Ave Pedestrian Facilities - Arctic Boulevard to Chad St. component to the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 8, lines 11 and 12 and appropriates $250,000 to the component. The fund source is not specified. Co-Chair Wilken moved for adoption. There being no objection, Amendment #55 was ADOPTED. 5:06:36 PM Amendment #56: This amendment increases the general fund appropriation to the Municipality of Anchorage - Kincaid Park Summer and Winter Recreational Improvements, Fields, Paving and Equipment (HD 17-32) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development, on page 23, lines 18 through 23 from $480,000 to $730,000. Co-Chair Wilken moved for adoption. There being no objection, Amendment #56 was ADOPTED. Co-Chair Green requested clarification of the project. Ms. Blaisdell explained the improvements would be made to the recreational facilities of Kincaid Park in Anchorage. 5:07:01 PM Amendment #57: This amendment changes the title of the City of Sterling - Sterling Senior Center Kitchen Equipment (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 12, lines 23 through 25, to read "Sterling Senior Citizens, Inc. - Sterling Senior Center Kitchen Equipment (HD 33-35). The general fund appropriation to the component of $64,000 is reduced to $58,000. This amendment also changes the title of the Kenai Peninsula Borough - Kenai Road Improvements (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 14, lines 25 through 27, to read "City of Kenai - Kenai Road Improvements (HD 33-35)". The general fund appropriation remains unchanged. This amendment also reduces the general fund appropriation to the Kenai Peninsula Borough - Nikiski Elementary School Bicycle Trail (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 14, lines 31 - 33, from $154,400 to $137,000. This amendment also reduces the general fund appropriation to the Kenai Peninsula Borough - Ninilchik Pressure Reducing Station (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 15, lines 3, through 5 from $225,000 to $210,000. This amendment also changes the title of the Kenai Peninsula Borough - Ninilchik Pumper Tanker Truck (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 15, lines 6 through 8, to read "Ninilchik Emergency Services, Inc. - Ninilchik Pumper Tanker Truck (HD 33-35)". The general fund appropriation to the component is reduced from $154,000 to $140,000. This amendment also changes the title of the Kenai Peninsula Borough - Soldotna Road Improvements (HD 33-35) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 15, lines 16 through 18, to read "City of Soldotna - Soldotna Road Improvements (HD 33-35)". The general fund appropriation remains unchanged. Co-Chair Wilken moved for adoption of the amendment. Co-Chair Green characterized this as a "neutral" amendment, in which some funding reductions are made. There being no objection, Amendment #57 was ADOPTED. 5:07:40 PM Amendment #58: This amendment increases the general fund appropriation to the Matanuska-Susitna Borough - Academy Charter School/Administrative Building Improvements (HD 13-16) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 16, lines 7 through 10, from $20,000 to $35,000. Co-Chair Wilken moved for adoption. Ms. Blaisdell explained this is a technical correction. There being no objection, Amendment #58 was ADOPTED. 5:08:16 PM Amendment #59: This amendment inserts a new 2006 National Veterans Wheelchair Games component to the Grants to Named Recipients BRU, Department of Commerce, Community and Economic Development on page 3, lines 30 and 31 and appropriates $250,000 general funds to the component. Co-Chair Green announced this amendment would be NOT OFFERED due to action taken on Amendment #50. AT EASE 5:08:41 PM / 5:10:07 PM Amendment #60: This amendment deletes the Denali Borough - Anderson School/Septic Leach Field Replacement (HD 7-11) component from the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 13, lines 17 through 19, and the $77,800 general fund appropriation to that component. This amendment also inserts a new World War 2 Memorial component to an unspecified BRU and department and appropriates $35,200 to the component. The fund source is not specified. This amendment also deletes the Denali Borough - Cantwell School/Sprinkler System Fire Upgrade and New Well (HD 7-11) component from the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 13, lines 20 through 23, and the $182,400 general fund appropriation to that component. This amendment also inserts a new Ester Volunteer Fire Department component to an unspecified BRU and department and appropriates $125,000 to the component. The fund source is not specified. This amendment also inserts a new Morris Thompson Cultural Center component to an unspecified BRU and department and appropriates $100,000 to the component. The fund source is not specified. A notation on the amendment reads "net zero technical change". Co-Chair Green announced this amendment would be NOT OFFERED.. Amendment #61: This amendment changes the title of the City of San Point - Purchase and Upgrade of Old Reeve Aleutian Airways Building (HD 37) component in the Grants to Municipalities BRU, Department of Commerce, Community and Economic Development on page 49, lines 29 through 32 to read, "City of Sand Point - Airport Terminal Project (HD 37). Accompanying explanatory language reads as follows. Amendment is requested by the City of Sand Point at the recommendation of Kip Knudson, Deputy Director for Aviation, DOT. Knudson advised that the inclusion of the word "purchase" may overly limit the use of funds in the event the Reeve building is not totally recoverable for renovation. The requested broader language will give the City of Sand Point the flexibility to build a new terminal if and when the actual condition of the Reeve building is determined. Co-Chair Green announced this amendment would be NOT OFFERED. Amendment #62: [Note: The amendment specifies the following be inserted "following page 15, line 9, under Department of Fish and Game". This page of the committee substitute contains Grants to Municipalities BRU components. Appropriations to the Department of Fish and Game are contained on page 35, lines 11 through 32.] This amendment inserts a new Implementation of Intensive Management Laws component and appropriates $250,000 general funds to the component. Accompanying explanatory language reads as follows. The Board of Game has authorized several predator control programs in an effort to allow major depleted ungulate populations that have been limited by predation to increase. In order to sustain these programs long enough to be effective, and in recognition of the need for additional similar programs in other areas, there is a need for biological inventories and studies to gather information upon which the Board can base its decisions. This information also represents the basis for defending the programs from legal challenges. The existing intensive management programs and requests for similar programs from other parts of the state have placed a major financial burden on the Division of Wildlife Conservation in the Department of Fish and Game. Although funds have been prioritized within the division to cover many of the most important expenses for these programs, the biological data gathering and administrative costs needed to support these programs has escalated beyond the capacity of the division to respond. This CIP [capital improvement project] demonstrates the legislature's intent that the Intensive Management laws be implemented to the maximum extent possible. Co-Chair Wilken moved for adoption. 5:10:48 PM Co-Chair Green overviewed the explanatory statement. Senator Hoffman supported the amendment. Co-Chair Wilken commented that the commissioner had submitted a funding request approximately one month ago. However, the plan he proposed was unclear. Upon the Committee's request, the Department resubmitted a plan detailing the predator control program specifically targeting wolf and bear. There being no objection, Amendment #62 was ADOPTED. AT EASE 5:12:10 PM / 5:13:10 PM Amended Amendment #9: This amendment inserts a new Bristol Bay Borough Community Mapping Project component to the Grants to Municipalities (AS 37.05.315) BRU of the Department of Commerce, Community and Economic Development on page 8, lines 11 and 12. This amendment also appropriates $150,000 general funds to the component. This amendment also increases the general fund appropriation to the Department of Commerce, Community and Economic Development, Grants to Municipalities (AS 37.05.315) BRU, City of Unalaska - Boat Harbor (HD 37) component on page 13 lines 3 and 4 from $2 million to $4 million. This amendment also adds a new Togiak/Twin Hills Bridge Feasibility Study component to the Department of Transportation and Public Facilities and appropriates $150,000 general funds to the component. This amendment also increases the general fund allocation to the Department of Education and Early Development, School Construction Grant Fund (AS 14.11.005) BRU, Dillingham Middle/High School construction and renovation - Dillingham City Schools (HD 38) component on page 83 lines 14 - 17 from $7 million to $9.5 million. The amendment to the amendment also adds a new Aleutians East Borough - Cold Bay Airport Terminal component to the Grants to Municipalities (AS 37.05.315) BRU, Department of Commerce, Community and Economic Development and appropriates $500,000 general funds to the component. Co-Chair Green announced that Amendment #9 was again before the Committee. This amendment was amended and adopted at the previous hearing. Ms. Blaisdell reminded that this amendment had been amended and outlined the changes. Ms. Blaisdell indicated the amendment to the amendment to remove from the amendment, the Cold Bay access Improvements component from the Surface Transportation Improvements, Department of Transportation and Public Facilities, on page 58, lines 30 and 31, and the increased general fund appropriation to the component was in error. Ms. Blaisdell stated that the amendment to the amendment should have provided that the component remain in the bill and the $2 million appropriation contained in the committee substitute remain unchanged. 5:15:08 PM Senator Olson asked if the airport terminal project is located at Cold Bay or Sand Point. Ms. Blaisdell responded the appropriation would be made to the Aleutians East Borough not to Sand Point. Co-Chair Green clarified the grant would be provided to the Aleutians East Borough and is comprised of general funds. [Note: No motions were offered and no formal action was taken on the amendment. The Committee's intent was not specified.] AT EASE 5:16:03 PM / 5:35:19 PM Amendment #63: This amendment inserts a new bill section to appropriate $985,000 general funds to the Department of Fish and Game for Chitna Personal Dip Net Fishery (HD 99). Accompanying explanatory language reads as follows. This amendment funds dumpsters, transporter vehicle to carry dumpsters to the landfill, portable outhouses, service truck to service outhouses and concession building all to be located at Chitna for the services of the Chitna personal dip net fishery. Also includes signage and access design. Co-Chair Wilken moved for adoption. Co-Chair Green objected. Co-Chair Wilken corrected the amendment to appropriate the funding to the Department of Natural Resources rather than the Department of Fish and Game. Co-Chair Wilken explained the need for facilities at the Chitna River to provide access. This funding request is the result of months of consideration and negotiation between the Native corporation landowner and the Department of Natural Resources. A survey would be conducted to establish future claims. Senator Stedman clarified this request is for "start-up money" and to develop a plan for future operations. Co-Chair Wilken understood this is a capital appropriation. The intent is that user fees collected from fishers would support the program in the future. SENATOR RALPH SEEKINS elaborated about the personal use fishery at Chitna, which he is very familiar with. A dip net fishery plan to mitigate the impact of the fishery on the local community has been anticipated. Approximately 20,000 personal use dip net permits are sold for this fishery every year. Administration of the mitigation program would be similar to that utilized for a State park. Participants would be required to utilize the facilities provided and minimize impact. Previously, facilities such as dumpsters and portable toilets were not available, which resulted in an unhealthy and unsightly situation. This funding request is to address the first stage of the need and is supported by Department of Natural Resources Commissioner Tom Irwin and Governor Murkowski. 5:41:11 PM Co-Chair Green thanked Senator Seekins for proposing the amendment. Co-Chair Green ordered the amendment HELD in Committee. She noted that all State parks are in need of funds and should be addressed. Senator Seekins emphasized the significant impact of the 20,000 participants to the area. Co-Chair Green ordered the bill HELD in Committee. 5:42:44 PM