SENATE BILL NO. 223 "An Act providing for and relating to the issuance of general obligation bonds for the purpose of paying the cost of a scientific crime detection laboratory; and providing for an effective date." JOHN GLASS, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY, related that the bill seeks funding through general obligation bonds for a state crime lab. In 2004-5 the legislature appropriated $4.8 million for the review design and construction of a scientific crime lab. Based on that legislation, the Department of Transportation and Public Facilities (DOT) contracted with Livingston Sloan and Associates, an architecture firm in Anchorage, who subcontracted to a firm from Virginia, McClaren, Wilson, & Lowrie, who put together a proposal for a crime lab into the future. The plan came back as an 83,000 square foot building to house current and future needs. Mr. Glass reported that the 14,000 square foot current crime lab was built in 1986 to house 14 people. It now houses 41 people. With the onset of DNA testing in 1994, the work load increased exponentially. The crime lab is only able to process 350 of 1,000 DNA samples each month, due to a lack of space. Mr. Glass noted that 34 properties in Anchorage were evaluated resulting in 15 acres of land just west of the current crime lab being selected. 9:11:28 AM Senator Elton said he was convinced of the need for the facility. He requested more information about how the square footage and the price tag for the lab were decided. Mr. Glass explained that McClaren, Wilson, & Lowrie made those determinations. It would take 57,000 square feet to meet today's needs; however, the plan is to build for the future and for expected expansion. Senator Elton asked who McClaren, Wilson, & Lowrie are. Mr. Glass reported that they are an architectural firm specializing in the design of crime labs. The forensic lab supervisor, Orin Dym, has participated with Mr. Lowrie in two crime laboratories built in Arizona. The staff at the crime lab has also contributed to the design plan. Co-Chair Stedman asked for more information about the $1,000 per square foot cost. 9:14:38 AM MATT TANAKA, ENGINEER, CONSTRUCTION AND OPERATIONS, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied that the $1,000 figure is the project cost and excludes site development and lab equipment costs. The cost per square foot from $1,000 - $1,300 for laboratories is because they are full of equipment and very dense. Co-Chair Stedman asked if there were any overlap of services from the Fairbanks Virology Lab. Mr. Glass explained that anything that could be done in the virology lab is already being done in the crime lab. The science criteria are different in a virology lab. Co-Chair Stedman asked about the possibility of a phased construction plan with the current facility. Mr. Glass pointed out the increased costs of $6 to $10 million a year for delaying construction with a phased plan. The current construction is a 3.5 year plan. He explained how a piece of evidence moves between labs within the building. Moving evidence from one building to another brings up cross contamination and custody issues. 9:17:45 AM Co-Chair Hoffman asked about the Division of Elections fiscal note #1. He wondered if the only public information for about the project would be contained in the election pamphlet at the cost of $1,500. He asked if there were any other efforts to convince the general public that the facility is needed. Mr. Glass replied that there would be additional presentations to the public. Co-Chair Hoffman asked if those expenditures were within the Department of Public Safety budget. Mr. Glass said yes. Co-Chair Hoffman asked which communities would have presentations. Mr. Glass offered to go to as many places as he could because he strongly believes in the need for a new crime lab. Co-Chair Hoffman thought there needed to be a broad base of support for the project. 9:20:12 AM Co-Chair Hoffman asked about operational costs to maintain the facility. Mr. Glass reported that he only has a rough estimate of those costs based on the two current state labs; $1.3 million per year. Co-Chair Hoffman asked if there would be a need for more than the current number of positions. Mr. Glass noted that currently there were 41 positions, with the possible addition of only one more maintenance position. Co-Chair Stedman wondered why there was a need for more square footage, but not for more employees. Mr. Glass explained that 41 employees are working in a 14,000 square foot building. They will move into a facility with 83,000 square feet. He described the currently crowded conditions. He referred to a bill from last year which allocated five new DNA analysts. Down the road more disciplines will be added. Toxicology is currently being outsourced to Washington. Co-Chair Stedman concluded it was a six-time increase in square footage. He wondered how to sell that concept to the public. He asked about the need for such a large expansion and requested more information about what would happen to the old crime lab building. Mr. Glass reported that the existing facility would be converted to office space, preferably for the department. The current building does not handle the large amount of heat generated well. He described how cramped the current space is. The garage for processing vehicles is very crowded and requires moving items out of the way in order to examine a vehicle. 9:26:16 AM Senator Olson wondered about locating the crime lab in a less expensive area of the state, such as Kenai. Mr. Glass reported that other areas had been considered; however, Anchorage is the center of transportation. Mr. Glass shared that 72 percent of the crime lab business is from Anchorage, and involves custody issues. The department is working through the Heritage Land Bank to purchase 15.3 acres of land on a 40-year lease at no cost to the state. Senator Olson asked what portion of the evidence is time sensitive and needs to be close to the airport. Mr. Glass said it is more a matter of convenience. He gave an example of bringing evidence from Nome and the potential difficulty of transporting it to places other than Anchorage. Senator Olson thought it would be cheaper to fly to Kenai than to drive there. 9:29:41 AM Co-Chair Hoffman asked about page 2, section 3 of the bill regarding the amount referred to in the fiscal note. It says there will be a laboratory project fund of $100 million and up to $6 million in anticipated investment earnings. He wondered if it is the intent that the $100 million would be set up in an investment account once the bonds were sold and, before the construction commences, the department would earn $6 million. He questioned if it is $6 million above and beyond the $100 million. Mr. Glass replied that the $6 million would be in addition to the $100 million. Co-Chair Hoffman said the fiscal note was not correct. Mr. Glass explained that the fiscal note is correct in that $100 million is requested and $6 million is interest. Co-Chair Hoffman clarified that the interest on $100 million would be $6 million in investment earnings. Mr. Glass said that is what is anticipated. Co-Chair Hoffman asked how long it would take to earn the $6 million. The fiscal note states that there would be approval by November 2008 and the debt service would commence by 2010, which would allow approximately two years to construct the funds. He requested a time table as to how the money would be invested. 9:32:37 AM Co-Chair Hoffman asked if $100 million would include necessary equipment. Mr. Glass said it would. Senator Thomas asked if the building is a re-creation of the other two previous designs with savings in mind. Mr. Tanaka related that it is the third project he has managed in Alaska. He explained that there are some commonalities between the labs, but crime labs are very specific in their needs and require custom design. He said reported on how the crime lab was designed with the expertise of Bill Lowrie. Senator Thomas asked if a crime lab worked well in another state, would it be possible to eliminate some of the design work for an Alaskan model. He asked if the design cost is about 10 percent of the total project. Mr. Tanaka agreed that it was about 10 percent. He explained what the design work entails. He assured the committee of the design team's credentials. Senator Thomas asked where DNA is handled now and how much it costs. ORIN DYM, FORENSIC LAB MANAGER, DEPARTMENT OF PUBLIC SAFETY, explained that all DNA criminal casework is done in the crime lab. The database samples have been outsourced; however, with the HB 90, those will be moving in house. The staff is currently 41 people with the need for one more custodial position. Over twenty years the staff would increase to 62 employees. 9:38:46 AM Senator Olson asked about the $4.8 million allocated for design money. Mr. Tanaka replied that money was part of project costs. The money requested in the current bill is for completion of the design and construction of the building. Senator Elton asked how the cost per square foot compares to the DEC lab cost. He wondered if the people involved in the design of the crime lab are involved in the design of the DEC lab. He mentioned several problems with the DEC lab design. Mr. Tanaka said he was the project manager of the DEC lab and the virology lab. The same architect, Livingston Sloan was used for both of those labs as well as for the Public Health Lab Medical Examiners facility. He reported on the risks and problems in designing complex labs. He described a high rate of confidence in his team. Senator Elton requested the cost per square foot of the DEC lab. Mr. Tanaka reported that the DEC lab cost about $950 per square foot, the virology lab cost $1,140 per square foot, and the crime lab will cost about $1000 per square foot. The differences in cost are not that significant. The DEC and virology lab costs were based on market prices and based on real construction dollars. He further explained how the figures were determined for the crime lab. 9:43:47 AM Co-Chair Stedman requested a written response to Senator Elton's question regarding financial comparisons of the projects, including beyond square footage costs and contingency numbers. Senator Thomas asked if the project was out to bid and how contractors were selected. Mr. Tanaka replied that they are using a project delivery system called the construction management general contractor approach which involves competitive solicitation nationally. Contractors are brought on as an advisor during the design phase. They are currently in the schematic design phase - about 25 percent complete. The contractors, architect, and engineers base costs on a partially completed design. The contractor is retained as a part of the team through completion. Co-Chair Stedman asked what has been appropriated so far. Mr. Tanaka replied that a $4.8 million appropriation was made for the planning phase with the intent to apply for a supplemental request. Co-Chair Stedman summarized that $4.8 million was appropriated in 2006. He asked what the balance was. Mr. Tanaka reported that there was about $3 million left. Co-Chair Stedman thought the appropriation was charitable. Mr. Tanaka emphasized that it all would be needed. Co-Chair Stedman asked about the supplemental appropriation request. He corrected that it was just an appropriation. Mr. Tanaka said that was correct; it is an appropriation to finish the project. 9:48:39 AM Co-Chair Hoffman asked about plans for the existing facility. Mr. Glass explained plans to move the department into the space for several purposes: a sexual offender registration office, Alcohol Beverage Control (ABC) Board, and an investigative unit. He explained the amount of foot traffic associated with the ABC Board. A university lab has also been considered. The building belongs to the Department of Public Safety. Co-Chair Hoffman asked if there would be costs for renovation for the use described. Mr. Glass said there would be, but he could not provide specific details about costs. Co-Chair Hoffman asked about the possibility of a long-term lease rather than purchasing the land. Mr. Glass replied that the Bureau of Land Management has given the land to Anchorage and there are federal requirements. 9:51:40 AM Co-Chair Stedman asked about the 40-year lease contingency plan. Mr. Glass said that there are several contingency plans. One is a 10-year reopener. Currently, there are no charges for laboratory services. Nationwide no agencies charge for state services. Mr. Glass maintained that he does not want the state to be stuck with charging for lab services. A 10-year reopener would address that. The 40- year lease is a long term lease with options after that, such as two 10-year options or two 20-year options. This is still being negotiated with the Department of Administration. Senator Thomas asked how big the property is. Mr. Glass said 15.3 acres. Senator Thomas asked about any plans for intervention to prevent crime. Mr. Glass agreed that there needs to be more prevention. He pointed out that DNA testing also releases innocent people. 9:55:28 AM JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF REVENUE, in response to a question from Co-Chair Stedman, explained that the $1,000 request is for paperwork and analysis. SB 223 was heard and HELD in Committee for further consideration. 9:56:53 AM