HOUSE FINANCE COMMITTEE April 22, 1999 8:10 A.M. TAPE HFC 99 - 96, Side 1. TAPE HFC 99 - 96, Side 2. TAPE HFC 99 - 97, Side 1. CALL TO ORDER Co-Chair Therriault called the House Finance Committee meeting to order at 8:10 a.m. PRESENT Co-Chair Mulder Representative Foster Co-Chair Therriault Representative Grussendorf Vice Chair Bunde Representative Kohring Representative Austerman Representative Moses Representative J. Davies Representative Williams Representative G. Davis ALSO PRESENT Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services; Remond Henderson, Director, Division of Administrative Services, Department of Labor; Mike Noel, Information Services Manager, Department of Labor; Laura Baker, Administrative Manager, Division of Labor Standards & Safety, Department of Labor; Nico Bus, Director, Division of Administrative Services, Department of Military and Veterans Affairs and Department of Natural Resources; Tracy Kramer, Exxon Valdez Trustee Oil Council. SUMMARY HB 52 An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date. HB 52 was HELD in Committee for further consideration. HOUSE BILL NO. 52 An Act making and amending capital appropriations and reappropriations and capitalizing funds; and providing for an effective date. DEPARTMENT OF HEALTH AND SOCIAL SERVICES Family Services Field Safety, Equipment $200,000 JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that the request would provide communication equipment for workers in the field. That balance of the request would be used for vehicle purchases. Co-Chair Therriault asked what type of vehicles were being purchased. Ms. Clarke replied that State equipment rates were used. She added that some old State Trooper vehicles were purchased. Juvenile Offender Management Information System $1,500,000 Ms. Clarke explained that these are funds had already been earmarked. They would allow for the juvenile justice correction system to establish a MIS system to partner with in the schools. Co-Chair Therriault asked if that system could plug into the overall system. Ms. Clarke replied that this had been too late of an addition to that system and that these federal funds would not require a match. Deferred Maintenance, Renewal, Replacement and Equipment $850,000 Ms. Clarke noted that the component would address deferred maintenance projects and that these projects have been prioritized. Fairbanks Youth Facility Fire Alarm Replacement $336,000 Ms. Clarke stated that this would be a major project. The original system has been in place since 1981. The two systems used do not integrate well. She noted that the alarm has had to be desensitized to a low level, which places it at a much lower protection level. She noted that the original system was 18 years old and the second one is 10 years old. Public Health Nursing Network and Computer Upgrade $100,000 Ms. Clarke pointed out that this component is a request to upgrade a computer system which public health nursing currently uses. The requested money would be used to purchase new hardware. Anchorage Public Assistance "One Stop" Re-Configuration $281,400 Ms. Clarke noted that the request would use both federal funds and general funds. A One-Stop Center is used for public assistance and would require a realignment of office space. Representative Austerman asked if funding would complete this office. Ms. Clarke stated it would. She commented that there is only one main office in Anchorage. State Medical Examiner Imaging Equipment $25,000 Ms. Clarke commented that the request would buy additional digital cameras and equipment for law enforcement officers. This would greatly advantage law enforcement procedures. She noted that in the new Anchorage space, the medical examiner would have a facility space and that they do not have access to this equipment at this time. API 2000 - Facility Replacement $9,000,000 Ms. Clarke provided a handout. [Copy on File]. The handout addresses Community Implementation Projects. The project has been going on for 10 years. Currently, three options have been identified in the downsizing process. The options identified are: * Build a new facility on the existing site with the existing plan; * Purchase Charter North Hospital and some nearby land parcels; * A public/private partnership with Providence Hospital. She stressed that Option 2 is the Department's most possible consideration. The request before Committee members would help with the demolishment of the old facility. The Department believes that it is a dangerous situation to retain that facility. Co-Chair Therriault asked if the $9 million dollars would be enough funding to go ahead with the construction. Ms. Clarke replied that more money would be needed. API Stop - Gap Repairs $225,000 Ms. Clarke spoke to the problems of maintaining that facility in order for it to continue to function. Co-Chair Therriault inquired if this was the standard request for that past couple years. Ms. Clarke replied that this was more because more pipes have been breaking and leaking. These pipes are padded with asbestos. Representative G. Davis asked future plans for the facility. Ms. Clarke replied the plan is to demolish this facility. The State is not paying rent to the Alaska Mental Health Trust Fund. Housing Modifications for People with Special Needs $400,000 Ms. Clarke noted that the request would provide for modifications for ramps, bathrooms, etc, in order to provide care levels so that people can stay in the group homes. Co- Chair Therriault asked if there was a formula used to determine the match. Ms. Clarke replied that this would not be a required match, but negotiated with the Governor's Office. Program Facilities Deferred Maintenance ADA Upgrades $500,000 Ms. Clarke discussed that the request would be used for grants for competitive bidding to be used for improvements to the facilities. Mental Health Trust Beneficiary Equipment $150,000 Ms. Clarke explained that this funding request would provide for an additional competitive grant for equipment such as wheelchairs for disabled individuals, etc. She stated that the Mental Health Trust Authority (AMHTA) had submitted all these requests. DEPARTMENT OF LABOR Worksite Chemical Exposure Analysis Equipment$49,200 REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR, stated that this equipment would be used in the field to test for Occupational Safety and Health Administration (OSHA). This would allow testing of samples on location. Vice-Chair Bunde asked if the request would this put more equipment in Fairbanks. Mr. Henderson stated that the equipment would be placed in Fairbanks and Juneau. LAURA BAKER, ADMINISTRATIVE MANAGER, DIVISION OF LABOR STANDARDS AND SAFETY, DEPARTMENT OF LABOR, responded to Vice-Chair Bundle's question regarding project turn around time. She noted that the sampling would be done in Anchorage and that the frequency of Juneau testing is not available at this time. Representative Austerman asked if the equipment could address concerns in other communities. Ms. Baker stated that the equipment could be taken to other communities. Equipment Replacement $455,600 Mr. Henderson noted that the request would be used for equipment replacement. Programming is currently difficult to maintain. The new system will enable the Division to establish a system to allow a direct fund deposit and Internet inquiries, which would be more available to the employers. These funds would be contracted out to set up equipment for software application. Co-Chair Therriault questioned if this would obligate the State for out year expenditures. Mr. Henderson replied that would be a different obligation. Unemployment Insurance Tax System Redesign $2,600,000 Mr. Henderson noted that this request would be used to replace desktop equipment. The request would fund the first year of that amount. These would be federal funds and are a continuation of FY97 funding. MIKE NOEL, INFORMATION SERVICES MANAGER, DATA PROCESSING, DEPARTMENT OF LABOR, explained that it would be an ongoing process. Mr. Henderson stated that this would use a combination of general funding and federal funds. Co-Chair Therriault asked if there would be a state match required. Mr. Henderson replied that there would, however, a general fund match would not be required. Representative Austerman asked how many desktops would that amount buy. Mr. Henderson stated it would buy 180 desktops computers for that Division. Co-Chair Therriault asked how current were those prices. Mr. Noel explained that the average cost would be $2500 dollars per computer and that it would include networking equipment. He emphasized that there is more software associated with the cost. MILITARY AND VETERANS AFFAIRS Air Guard Facility Maintenance $1,000,000 NICO BUS, PROJECT COORDINATOR, DEPARTMENT OF MILITARY AND VETERANS AFFIARS explained that the money would be used for projects for the Air Guard facility. Co-Chair Therriault asked if it would be a 5-year project. He stated that $250 thousand dollars general funds would allow for a $750 federal dollar match over a five to ten year period. Army Guard Deferred Maintenance and Renewal and Replace $1,350,000 Mr. Bus stated that this would be a similar request most, of which would be 100% federal funding. He added that this request is minimal with the amount of deferred maintenance that needs to be addressed. (TAPE CHANGE HFC 99-96, Side 2) In response to Representative Foster, Mr. Bus noted that the village area deferred maintenance would be 100% federal funded. Army Guard Facilities Planning and Construction $1,500,000 Mr. Bus explained that the request would be federally funded. By authorizing this project, the State would be in a good position to receive money from the federal government. Representative J. Davies asked what "planning" meant. Mr. Bus replied that if there is plan ready to go, sometimes, if the Feds have surplus money, they would allocate it to various states. Representative J. Davies inquired the types of projects that would be up. Mr. Bus suggested projects such as the Juneau armory renovation. The request would place authorization if money became available. Federal Scout Armories $1,421,900 Mr. Bus noted that the each year the federal government authorizes full funding for three scout armories. That money could be used for replacement or new facilities. Air Guard facilities are located in Anchorage and Fairbanks. DEPARTMENT OF NATURAL RESOURCES Front Section - DNR Reforestation Projects $350,000 Mr. Bus spoke to reforestation timber revenues to be used for this in Interior and North Central Alaska which could use reforestation. The money is currently in that fund. Each year that fund collects between $800 thousand and $1 million dollars. Co-Chair Therriault requested back up information on that request. Land Status Geographic Information Systems $300,000 Mr. Bus noted that this request was the highest priority for the Department. The Division is currently on target and that the last group system was the most complex. He acknowledged that this would be the last year for the on- going request. State Park Emergency Repairs $400,000 Mr. Bus pointed out that these funds would be used in repairing state park sites. Co-Chair Therriault pointed out that the request is for $400 thousand dollars, whereas, out years indicate funding in the amount of $1 million dollars. Mr. Bus explained that there are $35 million dollars worth of needs in the State for parks. Representative J. Davies agreed that there should be a substantial deposit made into that account given the need. Recorder's Office Equipment & Aperture Card Filming $250,000 Mr. Bus indicated that this requested amount would be from program receipts. The equipment is antiquated. The project would use $150 thousand dollars for equipment, additionally, a camera and copying machine would be bought. The State did appropriate $150 thousand dollars for microfiche from the pipeline era. Vice-Chair Bunde suggested that the Recorder's Office requires more money that it makes. He suggested that the money be taken from the operating budget of the Department. Mr. Bus replied that the operating budget is very tight, and added that this money was program receipt funding. Airborne Geophysical and Geophysical Mineral Inventory $250,000 Mr. Bus stated that the request would be used for the next phase of the project. These projects are proposed to the review board. He pointed out that this is a lesser amount than is normally requested. Co-Chair Therriault questioned why the number was so low in relationship to what was previously asked. Mr. Bus noted that even though the need was great, the Department recognizes the condition of the State's budget. It is hoped that they can receive a federal match. Representative J. Davies asked if this was the actual amount requested. Mr. Bus noted that the request was for $500 thousand dollars and that the Office of the Governor had reduced that request. Oil and Gas Royalty Accounting System, Phases II and III $150,000 Mr. Bus stated that this request would be 100% general fund usage. He stated that the request would provide funding to contract the service to provide more accurate time and calculations by rewriting the calculations and providing better accounting services. Having such services would limit litigation on disputes. Snowmobile Trails Development $120,000 Mr. Bus stated that this funding would utilize training involving safety and etiquette for snowmobile driving. Additionally, it will serve the group in developing snowmobile trail system and safety guidelines. This would form a commission which would be 100% general fund dollars. Mr. Bus noted that a process will be started and a coordinator will be hired to identify trails and identify easements, and that $60 thousand dollars would be used for staffing costs. Committee members questioned how much money would be generated. Representative Kohring asked the percentage of urban versus rural Alaska snowmobile usage. Mr. Bus replied that would be addressed in the driver education safety program which would be an important aspect of the request. Mt. McKinley Meat Plant Processing Facility Wall Repair $200,000 Mr. Bus noted that the request would be 0% general fund dollars. The request would provide money for rebuilding the facility wall repair. The project would be funded out of the Agricultural Revolving Loan fund and would repair four walls at that facility. An engineering firm did provide that price for the steel wall. National Recreational Trails Federal Program $650,000 Mr. Bus pointed out that this request would be a federally funded project through a grant to maintain trails. The Department of Natural Resources has been elected as a go- between for these funds. Abandoned Mine Lands Reclamation Federal Program $1,500,000 Mr. Bus discussed that the request would address contracts in the Mat-Su Valley and projects in the Juneau area mine caps. These would be 100% federally funded undertakings. Cooperative Forestry Pass-Through Federal Grants $500,000 Mr. Bus noted that the U.S. Forest Service provides grants for local governments. Department of Natural Resources acts as the administrator of these grants. National Historic Preservation Fund and Federal Grants $640,000 Mr. Bus explained the request is 60% federal funds and a 40% match by local communities. Co-Chair Therriault asked for a list of these requests. Agricultural Land Disposals $125,000 Mr. Bus spoke to the request which would dispose of inventory properties. Last fall, $100 thousand dollars was invested into the Mat-Su area. This request would authorize the Department to undertake the same project again in FY00. The parcels would need to be reappraised. The money would be used for contractual services on land which has sometimes been subdivided. He noted that the likelihood for selling large parcels is not high. Mr. Bus explained that the receipts from sales automatically return to the Agricultural Revolving Loan fund. Rika's Landing Erosion Control $1,175,000 Mr. Bus commented that this request would address the erosion problem and would help to save guard the structure. There are two options which would include federal funding or a grant through the Army Corps of Engineers. He reiterated that this is a historical site and could possibly be funded through the Historical Preservation grant, requiring a 40% match. (TAPE CHANGE HFC 99-97, Side 1). Exxon Valdez Oil Spill Trustee Council (EVOS) Small Acquisitions $626,800 Mr. Bus noted that this request would be 0% general funds and would be used to buy an area which would access to a tidal area for the residents in Valdez. These would be EVOS funds. Co-Chair Therriault acknowledged that in the past, these projects have come before the LBA Committee and that the Legislature criticized that policy. TRACY KRAMER, EXXON VALDEZ OIL TRUST COUNCIL (EVOS), stated that the request money would be used to upgrade one of the trails running through the parcel of land. The acquisition of land is a means of restoring the services and resources that were spoiled during the oil spill. The parcel has high value to EVOS in addressing salmon spawning. Additionally, it would increase access to the tidal flats for the City of Valdez. The trustees of the council have approved this action. Currently, that program is based on the appraised value. Vice-Chair Bunde believed that anything that interfered with fish spawning would not be allowed to be built. Representative Grussendorf asked if property tax was being paid on the EVOS holdings. Ms. Kramer replied that the State of Alaska, not the Trustee Council, owned the land and that the land acquisition was a high public support point. Co-Chair Therriault pointed out that there are no larger parcel purchases to be made by the Council in the future. Representative Williams asked why the property was being purchased. Representative Grussendorf voiced concern with property taxes not being paid. Co-Chair Therriault asked what the parcel was currently being used for. Ms. Kramer suggested that the real question should be how the land is being managed for public use. Representative G. Davis voiced concern that the State will own this land and not have control of it. Mental Health Trust Office Land Management and Enhancement $660,000 Mr. Bus addressed the request to be used for appraisal and surveying of the Mental Health Trust land properties for the Department of Natural Resources. The Trust Authority would be the manager of this funding. HB 52 was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 10:00 A.M. H.F.C. 10 4/22/99 a.m.