SENATE BILL NO. 160 "An Act making and amending appropriations, including capital appropriations and other appropriations; making appropriations to capitalize funds; and providing for an effective date." DEPARTMENT OF NATURAL RESOURCES JEANMARIE DAVIS, DIRECTOR, DIVISION OF SUPPORT SERVICES, DEPARTMENT OF NATURAL RESOURCES, detailed the department's capital requests: 9:43:46 AM RN 37762 Cooperative Water Resource Program $2,500,000 This project would allow the Department of Natural Resources (DNR) to accept funds from the private sector, and local governments and to pass the funds through to US Geological Survey (USGS) and US Natural Resources Conservation Service (NRCS) as part of funding agreements for cooperative water resource programs. Industry and local government often request and pay for USGS and NRCS to install and operate equipment to obtain hydrologic data. These data are needed for resource development and permitting projects such as mining, hydroelectric, or public water supply. If gaging funding is passed through a state agency, funds can be matched up to 100 percent by the federal government. Senator Egan asked why the request had increased nearly 3- fold from historic levels. Ms. Davis replied that the Division of Mining, Land, and Water had laid out the requests and would need the large increase in order to accommodate the wide variety of requests. Senator Egan assumed that the increase was due to increased mining activity and hydro development. JOE BALASH, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, interjected that it was for activity largely associated with mining but could also be attributed to an increased focus in renewable power in multiple region of the state. 9:45:18 AM Ms. Davis continued: RN 32552 Land and Water Conservation Fund Federal Grant Program $600,000 The Land and Water Conservation Fund Federal Grant Program (LWCF) is a 50/50 matching grant program that provides funding for the development of outdoor recreation areas and facilities. More than any other state in the union, Alaskans recreate outdoors. LWCF develops, conserves and maximizes Alaska's resources consistent with LWCF policy, addressing a second desired end result. LWCF program staff is responsible for monitoring compliance with LWCF regulations and policies. RN 6854 National Recreational Trails Grant Federal Program $2,600,000 Alaskans rely on trails for recreation, subsistence and transportation. These trails need maintenance to ensure safe passage and to ensure that they remain open and available for use. Funds are distributed by 80-20 matching grants for trail and trailhead development and maintenance, and for education programs relating to trail safety and responsible trail use. Grants are awarded to organizations, agencies and local governments. The end result is a variety of safe, high-quality, tear round, motorized and non-motorized, trails. RN 39042 National Coastal Wetlands Grant $1,060,000 The Coastal Wetlands program focuses on coastal wetlands ecosystems including both wetlands and upland buffers. Wetlands provide essential fish and wildlife habitat, which in Alaska support many commercial and recreational human uses, particularly in and near communities, parks, and refuges. Wetlands provide substantial contributions to water quality, flood and storm control as well as providing habitat for fish and wildlife. This program provides federal funding to the state for the long-term protection of wetlands, which is matched with private sector donations. The program considers acquisition, restoration, enhancement or management of coastal wetlands. RN AMD 54914 Alaska Land Mobile Radio Emergency Response Narrowband Compliance $2,960,000 This is a new FY2013 capital project due to the cost estimates that were finalized after the December 15 release of the Governor's budget. This project will fulfill the Federal Communications Commission (FCC) January 1, 2013 mandate for narrowbanding specific spectrum bands used by the department and complete the migration to ALMR. The department is migrating to the shared system, the Alaska Land Mobile Radio (ALMR) system, for emergency response, logistics and operations. Sites not served by ALMR must be upgraded to narrowband standards. Radios and dispatch equipment that is not narrowbanded and is incompatible prevent total migration to the shared system and also must be upgraded. RN AMD 54937 Wildland Fire-Fighting Aircraft Maintenance $500,000 This is a new FY2013 capital project due to cost estimates that were finalized after the December 15 release of the Governor's budget. This request promotes the continued use of state-operated aircraft to provide Wildland Fire Suppression on state, private, and local lands. This proposal will allow for the authority to keep revenues collected from flying to be used for periodically scheduled and unscheduled maintenance. These maintenance costs exceed the capability of the annual operating budget and may occur once in several budget cycles. Many of these revenues are reimbursable from the federal government. RN AMD 54913 Large Dam Projects Application Review $506,000 The purpose of Large Dam Projects Application Review is to fund the work necessary to issue Certificates of Approval for the construction and operation of large dams based o relatively large fees. Large dams are needed for the development and operation of mines and for hydroelectricity, which are consistent with the Department's mission. AS 46.17.020 allows the Department to retain consultants to assist in the performance of its duties under the respective dam safety statutes and regulations. In order to conduct timely and competent reviews of complex designs, the Dam Safety Unit must utilize this provision of the statute to retain qualified consultants under existing term contracts with the Department. 9:49:03 AM Co-Chair Hoffman asked about the request for the Wood Tikchik Area. Ms. Davis explained: RN 51720 Parks and Outdoor Recreation Deferred Maintenance - Wood Tikchik Area $70,000 The division is striving to protect visitor health and safety by providing safe, clean, and well maintained parks. State Parks had over $60 million in deferred maintenance needs which are causing serious health and safety concerns and are generating copious public comments that are embarrassing to the State of Alaska. This request will fund multiple projects within each of the seven regional park areas. On a percentage basis, each area across the state will have funding to decrease their specific deferred maintenance, including upgrades, repairs or replacement of roads, trails, shelters, toilets, drinking water systems, parking areas and other facilities to keep them from becoming even greater hazards. Ms. Davis specified that the repairs would include the Shelter Point cabin, the Eagle Island Campground and the Ranger Station. Senator Thomas asked what the anticipated timeframe was for replacing the Department of Natural Resources Wildland Fire Facility in Fairbanks. Mr. Balash explained that the department was aware of the facility needs. He stated that the replacement of the facility was in the 10-year plan. He said that the annual process to determine capital budget requests was always difficult, but he believed the issue would be addressed in the near future. Senator Thomas encouraged the department to make improvements sooner rather than later. Senator Olson noted the five aircraft operated by the department. He understood that they assisted in fighting fires in the Lower 48. Ms. Davis responded that when it was not fire season in the Alaska, the state assisted other states in need. Senator Olson asked where the aircraft were housed. Ms. Davis replied that she would get back to the committee with the information. Senator Olsen queried whether the state owned the aircraft. Ms. Davis said one was still under lease. DEPARTMENT OF FISH AND GAME KEVIN BROOKS, ADMINISTRATIVE DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF FISH AND GAME, detailed the capital requests: 9:54:07 AM RN 54418 Kenai River King Salmon Sonar Assessment Program $1,813,000 This capital project will expedite the transition and implementation to a new sonar program to more accurately assess abundance of Kenai River king salmon. Results will minimize uncertainty and reduce public and user group concerns about sustainability and in-season management of a recreationally and economically important resource. Senator Thomas asked if the department was familiar with the work that the Alaska Center for Energy and Power had done in the Yukon River when positioning the in-river generation. He noted that the center had studied fish populations and migration patterns and had found helpful information. He wondered if the information had been taken into consideration when determining placement. CHARLES SWANTON, DIRECTOR, DIVISION OF SPORT FISH, DEPARTMENT OF FISH AND GAME, replied that the department was familiar with the work. He said that the dynamics of different river systems, and how fish reacted to those dynamics, made the information non-applicable. Senator Thomas felt that the information could be applied. 9:57:08 AM Mr. Brooks continued with the capital requests: RN 54419 Wild/Hatchery Management Tools $2,500,000 To continue economic benefits provided by large-scale hatchery production, the state must ensure wild salmon stocks are managed for sustained yield as required by statute. Research on possible interactions between wild and hatchery fish is required that will improve this knowledge in Southeast Alaska (SE) and Prince William Sound (PWS). Project results will help determine if wild stocks are surviving at levels commensurate with manager's expectations at current hatchery production levels. Benchmark information will also be provided for consideration of increases in hatchery production. RN 54420 Susitna River Sockeye Salmon Migration $625,000 The goal of this project is to better understand the spatial and temporal sockeye salmon distribution of Susitna River drainage stocks and those from other Cook Inlet drainages migrating through Upper Cook Inlet's (UCI) Central District. This knowledge should allow managers the ability to more efficiently harvest non-Susitna stocks, while allowing Susitna-bound fish passage through the Central District. RN 54421 Upper Cook Inlet East Side Set Net Chinook Salmon Harvest Patterns $789,000 The objective of this project are two-fold: (1) examine patters of Chinook salmon harvests in the East Side Set Net (ESSN) fishery Upper Cook Inlet (UCI) through analyses of historical fish ticket data; and (2) examine patterns of Chinook salmon harvests and stock composition in the ESSN fishery. This project could provide additional fishing opportunities for both sport and commercial fishermen, specifically for sockeye salmon in the Kenai Section of the UCI management area and for Chinook salmon in the Kenai and Kasilof Rivers and provide economic benefits to the Kenai Peninsula. RN 43347 Research on Endangered Species Act Candidate Species $1,550,000 This capital project will provide funds to conduct baseline science to inform listing decisions (status reviews) for species currently under consideration for listing under the Endangered Species Act (ESA): Pacific walrus, Alexander Archipelago wolves, and flying squirrels in Southeast Alaska, or to inform biological opinions of other required ESA consultants on Stellar sea lions and beluga whales in Cook Inlet. 10:00:43 AM Co-Chair Hoffman queried the need to assess flying squirrels. Mr. Brooks replied that he believed that the listing of flying squirrels could impact timber harvests. Senator Thomas wondered if the assessments were prioritized based on where money was spent. Mr. Brooks replied that the department worked closely with LAW to preempt listings; the six species listed were determined by both departments to currently be most relevant to the state. Mr. Brooks continued with the capital requests: RN 43322 Facilities, Vessels, and Aircraft Maintenance, Repair, and Upgrades $1,000,000 This annual request funds repair, maintenance and renovation of department facilities statewide and vessel and aircraft repair and maintenance. Facilities funding is managed by the Division of Administrative Services (DAS), vessel funding by the Division of Commercial Fisheries and aircraft funding by the Divisions of Commercial Fisheries and Wildlife Conservation. Senator Olson wondered what types of aircraft the request was intended to cover. Mr. Brooks replied that he could provide a list at a later date. 10:03:07 AM JEFF REGNART, DIRECTOR, DIVISION OF COMMERCIAL FISHERIES, DEPARTMENT OF FISH AND GAME (via teleconference), interjected that the Division of Commercial Fisheries had four aircraft: 2 Super cubs, 1 Cessna 185, and a deHavilland Beaver, all located in Kodiak. Senator Olson asked if any of the aircraft had been in an accident within the last year. Mr. Regnart replied no. Mr. Brooks continued with the capital requests: RN 54422 Boards of Fisheries and Game Sound Systems Replacement $100,000 Alaska Board of Fisheries and Game meetings are recorded to ensure an accurate record of proceedings. The audio recordings for these meetings are frequently utilized by members of the public, state and federal agencies, and court systems. All recordings and meeting documents are submitted as official state archives. The Board of Fisheries typically meets five times a year plus holds teleconferences to address petitions, for approximately 40 days annually. The Board of Game typically meets three times a year plus holds teleconferences, for approximately 20 days annually. RN 47181 Replacement of R/V Resolution $3,700,000 The existing R/V Resolution was built in 1970 and requires substantial capital funds to keep the vessel seaworthy. The vessel supports research and stock assessment operations in the Gulf of Alaska, which uses sophisticated electronics, requiring continual platform modifications to support. Without a replacement vessel, the division risks interrupting long-term data series that ensure reproductive goals are met and may be unable to sustain fisheries on stocks of fish and shellfish based upon control and regulation of harvests through responsive management systems. Mr. Brooks added that the proceeds from the sale of the Resolution would be used to outfit the new boat. Co-Chair Hoffman wondered when the sale would take place. Mr. Brooks replied that the sale would occur after the new boat was built. Mr. Brooks continued with the capital requests: RN 54426 Fish Passages, Counting and Sampling Sites, and Weir Facilities Design, Repair and Upgrades $700,000 This initial project funding will be used to cover design and engineering services, and some repairs of numerous fish passages, counting and sampling sites, and weir facilities across the state. As designs/estimates are completed, and funding allows, additional contracts will be issued for the follow-on construction services. Major locations with immediate needs to remain operationally viable include: Fraser Lake fish passage design/repairs/upgrades, Crooked Creek Raceway design/repairs/upgrades, Chignik weir upgrades and repairs, plus a variety of other Afognak Island fish passage/weir projects. These facilities are ling-term (very old) major project sites for the department, and are quite complex. RN 50951 Eradication of Invasive Tunicates in Whiting Harbor in Sitka $500,000 This project will provide the Alaska Department of Fish and Game funds to support efforts aimed at the containment and eradication of invasive tunicates recently found in Whiting Harbor, Sitka and monitor the area for two additional years to assess effectiveness of the projected response efforts. RN 30432 Sport Fish Recreational Boating Access $2,500,000 This annual request authorizes the Division of Sport Fish to continue to construct and upgrade recreational power boating and sport fish access facilities statewide using Sport Fish Restoration Fund apportionment funds comprised of 75 percent federal assistance and 25 percent non-federal match. Federal regulations require that 15 percent of the annual Sport Fish Restoration (Dingell-Johnson/Wallop-Breaux Amendment) Fund apportionment will be dedicated to projects that benefit recreational power boaters. Projects include boat launches, mooring floats, parking lots, restrooms, fish cleaning facilities, and other services. RN 33647 Pacific Coastal Salmon Recovery Fund $7,500,000 This project will allow the department to receive federal grant funds for the Pacific Coastal Salmon Recovery Fund. This has been an on-going program since FY2000 and provides funding for a wide range of fisheries research, management, and restoration work which will enhance the agency's ability to sustainably manage Alaska's salmon and contribute to the economy and general well-being of the people of Alaska. Federal funding has been going down and will continue to do so. Starting in state FY2010, state match is required per the federal appropriation. The department passes the 33 percent match requirement on to project funding recipients. RN 41451 Equipment Replacement and Upgrade for Wildlife Research and Management Statewide Programs $200,000 The Division of Wildlife Conservation maintains a presence in 22 locations statewide. Field management and research staff must use motor vehicles, all- terrain vehicles (ATV), snow machines, and boats to access large areas of land and water to perform their wildlife management and research duties. Technological equipment is necessary to help staff communicate in the field and to enhance computer applications including GIS and web-based software development. Equipment needs replacement on a scheduled basis to ensure safety and dependability for field staff as they execute their duties. RN 54772 Seward Vessel Wash-Down and Wastewater Recycling Facility $641,300 The Exxon Valdez Oil Spill Trustee Council (EVOSTC) will provide one-time capital funding for the construction of a vessel wash-down and wastewater recycling facility to the City of Seward - Harbor Department. The project will include a concrete pad which drains into a system that collects, treats, and recycles 100 percent of the wastewater for subsequent vessel washing. This project will help protect the bay from incremental pollutions associated with vessel cleaning and maintenance activities that may prevent Resurrection Bay from fully recovering from the spill. Once complete, the City of Seward will operate and maintain the facility. RN 45482 Deferred Maintenance, Renewal, Repair and Equipment $1,400,000 This is an appropriation for the department's deferred maintenance program and the details are described in the allocations. 10:10:03 AM Co-Chair Hoffman wondered if there were any general funds appropriated for releasing additional salmon into dying streams. Mr. Brooks replied that the departments top priority request was for $1.8 million for the Kenai River. Co-Chair Hoffman argued that the funds were for an assessment of the river and not to replenish. He urged the department to be more proactive in adding additional salmon to Alaska's rivers. Senator Olson added that not enough was being done to avoid the depletion of the fish population in Alaska's rivers. He opined that the department had not presented a definitive way to create a program that would ensure future escapement stocks for sport fishing and subsistence. Mr. Brooks replied that the issue should be discussed further. 10:13:21 AM Mr. Regnart added that the department was very aware of the issue. He stated that there were on-going projects that would hopefully result in new ways to approach fish population management. He assured the committee that the department was doing everything in its power to comply with the constitutional mandate to assure that fish were returning to Alaska's rivers. He said that department members would be discussing the issue in Bethel over the next few days. Senator Olson stated that there was only a small portion of the departments capital requests that was going towards increasing the salmon runs for the future. He asked if he could expect to see the development of more proactive programs in the future. Mr. Regnart replied that the concerns of the committee would be taken into consideration during further department discussion concerning new work. Senator Olson stated that he looked forward to the new programs. Senator Thomas echoed the concerns. He pointed attention to Page 23, RN 41451. He wondered if any of the funding for the request would be available for airboat maintenance and refurbishing in the Interior River System. Mr. Brooks responded in the affirmative. 10:16:39 AM Senator McGuire stated that the department should be more focused on initiatives. She believed that the salmon stocks were more important than deferred maintenance of buildings. She spoke of her work with the Moose Federation and wondered if the department supported the federation's initiatives. Mr. Brooks replied that the department had been working with the Moose Federation to help quell the instances of moose on the highways. He furthered that efforts for wildlife conservation could be found in the department's operating requests. Senator McGuire stated that it would be helpful if the department would present future initiative plans. She wondered if the department could benefit from more legislative guidance. 10:19:49 AM Co-Chair Hoffman believed that the focus of the department should not be studies and tools for assessment, but rather it should become more proactive in getting more game and fish to all Alaskans. 10:21:31 AM DEPARTMENT OF CORRECTIONS JOSEPH SCHMIDT, COMMISSIONER, DEPARTMENT OF CORRECTIONS, presented the department's capital requests: RN 47567 Goose Creek Correctional Center Start-Up Furniture and Equipment $5,000,000 Construction of Goose Creek Correctional Center (GCCC) is complete and housing of offenders is scheduled to begin in calendar year 2012. The requested funding is needed to support the costs associated with the one- time start-up items and the initial Furniture, Fixtures & Equipment (FF&E) needed to meet the operational needs of the new facility. RN 46995 Information Technology MIS/Disaster Recovery Equipment & Novell Replacement Project $250,000 Design and establish a reliable recovery plan, infrastructure, equipment, and networking system for the Department of Corrections. This project assists in providing secure confinement, and keeping the community safe from offenders placed in the department's custody. RN 45637 Annual Facilities Maintenance and Repairs $1,000,000 This project will provide funding for essential renewal, replacement, renovation, remodeling and repair of electrical, mechanical, roofing, walls, fire and life safety, security, structural, food service, pavement and site drainage systems ay all correctional facilities. This work is required to enable continued safe, secure and efficient operation of the 24-hour incarceration facilities. This project assists in providing secure confinement and keeping the community safe from offenders placed in the department's custody. RN 49376 Deferred Maintenance, Renewal, Repair and Equipment $5,000,000 This project will provide deferred maintenance funding for 117 state-owned buildings. Areas of maintenance this project will address include but are not limited to electrical, mechanical, roofing, walls, safety, security, structural, pavement and site drainage systems. This work is required to enable continued safe, secure and efficient operation of the 24-hour incarceration facilities. 10:22:48 AM Senator McGuire felt that $5 million was an excessive amount of money for furniture at GCCC. She wondered if furniture could be pulled from state surplus and reused to furnish the facility. LESLIE HOUSTON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS, said that the department had explored the idea of using surplus furniture in administrative offices. She shared that inmate furniture was a durable and specialized line of furniture that would not be found in state surplus. Co-Chair Hoffman noted that there was no funding request that spoke to the issues faced by the correctional facility in the Arctic-Yukon-Kuskokwim Region (AYK). He assumed that the space issues that burdened the facility had been corrected. Commissioner Schmidt replied that the space issues at the facility had not been solved. He said that money had been moved in the budget from maintenance projects to try to keep up with the AYK gym renovations, and that the work would not require new construction. 10:24:40 AM Co-Chair Hoffman stated that the gym was being used for beds for inmates and people were rotating three times a day for meals. He wondered what the department's plans were for dealing with the problem of overcrowding at the facility. He asked if the department was waiting for a lawsuit to motivate improvements. Commissioner Schmidt responded that the department did not hope for a lawsuit, although sometimes lawsuits did occur. He hoped that the department could get ahead of the problem. He recognized that the department had been focused on GCCC, which had detracted from attention to the facility in Bethel. 10:25:37 AM Co-Chair Hoffman asked what the department's timeframe was for addressing the problem. He reminded the commissioner of their joint tour of the facility, which had revealed that the facility was overcrowded and that working conditions were deplorable. Co-Chair Hoffman noted that the facility had been number one on the list of facilities to be addressed for over a decade. He felt that the department was ignoring the problem. Commissioner Schmidt replied that the department had been working on the issue. He said he could not to promise a new building for Bethel would be a capital request in FY14. He relayed that the department felt the most pressure from the Bethel facility, and when the next expansion was discussed the Bethel facility would be at the top of the list. Co-Chair Hoffman asked if the department had any plans to address the critical needs of any facilities outside of the Railbelt. Commissioner Schmidt replied that he could not commit to a date or timeframe for the improvements. 10:27:35 AM Co-Chair Hoffman probed whether the problem in Bethel was getting better or worse. Commissioner Schmidt replied that it was certainly not getting any better. Senator Thomas was curious about the $20,000,000 total that would fund the furnishing of GCCC. 10:29:26 AM Ms. Houston said that the plumbing and inmates bunks were already in place. She explained that the $20 million allocation would be used for: copiers, office supplies, information technology between computer to work stations, software licenses, printers, servers, two-way hand held radios, base stations, dispatch consoles, antenna systems, hand guns, shot guns, pepper balls, ammunition, riot equipment, body armor, tasers, training protection suits, restraints, busses vans, groceries, serving and cleaning supplies for inmates, inmate clothing, bedding, laundry equipment, janitorial equipment, information technology systems required for inmate education, books, supplies, vocational equipment and supplies, dental supplies, medical supplies, mental health materials, facility maintenance equipment, snow removal and shop equipment and supplies. 10:31:02 AM Senator McGuire stated that another emergency expansion was needed at Bethel. She assumed that another year would not go by without any action taken by the department. She noted that litigation against the state was a realistic possibility given the circumstances at the facility. He thought that the same energy that the department was putting into GCCC could be extended to the Bethel facility. Commissioner Schmidt replied that the population had stabilized in Bethel, but further discussion would be needed if the numbers continued to increase. Senator Olson expressed a concern that there was no request for the jail in Kotzebue. He noted that OMB had testified to spending over $100 thousand in prisoner transport. He requested an update on the conditions in Kotzebue. Commissioner Schmidt replied that the department had been working with the community of Kotzebue on the issue. He shared that a brief closure of the jail in Kotzebue had cost the department $106 thousand in prisoner transportation expenses. He said that the department would continue to work with Kotzebue on the problem. 10:34:16 AM Senator Olson asked if he could tell the people of Kotzebue that improvements were imminent. Commissioner Schmidt replied that "imminent" was not the term he would use, but that the solution was not that far away.