MILITARY SCHOOLS TASK FORCE PUBLIC HEARING September 30, 1993 1:30 p.m. MEMBERS PRESENT Representative Eldon Mulder Senator Loren Leman Bonnie Carroll Captain Dennis Porter Colonel George Vakalis Lt. Colonel David Melcher Janet Stokesbury Barbara Martin Nancy Miller Patty Norheim MEMBERS ABSENT Representative Terry Martin Representative Ed Willis Sue Wilken COMMITTEE CALENDAR Second Public Hearing of the Military Schools Task Force WITNESS REGISTER REPRESENTATIVE JEANNETTE JAMES Alaska State Legislature P.O. Box 56622 North Pole, Alaska 99705 GREG BRANCH Architectural Planning and Design Anchorage School District P.O. Box 196614 Anchorage, Alaska 99519 TOM ANDERSON, Staff Representative Terry Martin's Office 716 W. Fourth Avenue, Ste. 650 Anchorage, Alaska 99501 SANDY BURGESS, Elementary Supervisor Anchorage School District P.O. Box 196614 Anchorage, Alaska 99519 SHEILA PETERSON, Staff Commissioner's Office Alaska Department of Education 801 W. 10th, Ste. 200 Juneau, Alaska 99801-1894 ACTION NARRATIVE TAPE 93-3, SIDE A Number 005 REPRESENTATIVE ELDON MULDER called the meeting to order at 1:38 p.m. He welcomed Representative Jeannette James who was participating by teleconference hook-up in Fairbanks, Sheila Peterson of the State of Alaska, Department of Education who was participating by teleconference hook-up in Juneau and Patty Norheim, Chair of the State Board of Education who was participating by teleconference from Petersburg. Number 044 In addition to Representative Mulder, those present in Anchorage were Colonel George Vakalis, Lt. Colonel David Melcher, Captain Dennis Porter, Tom Anderson on behalf of Representative Terry Martin, Barbara Martin, Greg Branch, Janet Stokesbury, Sandy Burgess, Nancy Miller, Bonnie Carroll and Senator Loren Leman. Number 080 REPRESENTATIVE MULDER thanked the Anchorage school district for the tour earlier that day. He explained for those not present on the tour, that the task force toured the schools on Elmendorf Air Force Base and on Fort Richardson. Number 097 REPRESENTATIVE MULDER opened the floor to any questions which might have arisen as a result of the tour. Number 103 SENATOR LOREN LEMAN raised the question of which projects contained on the base school project list provided by the Anchorage school district need to be completed before the Anchorage school district is willing to assume ownership of the schools. Number 116 GREG BRANCH, ANCHORAGE SCHOOL DISTRICT, stated that he was not in a position to answer. Number 126 REPRESENTATIVE MULDER noted that on the tour, the Anchorage school district provided a project list which expanded upon the 1990 project list. The additions resulted in a new cost estimate which exceeds, by about one-third, the previous cost estimate. Number 138 JANET STOKESBURY, CHIEF FINANCIAL OFFICER, ANCHORAGE SCHOOL DISTRICT, stated that because the project list is still in the draft stages, she is not able to identify those items on the list which are mandatory. Number 138 REPRESENTATIVE MULDER asked Ms. Stokesbury for the total revised cost estimate. MS. STOKESBURY responded that the revised cost estimate is $35.8 million for the six schools. Number 148 REPRESENTATIVE MULDER asked Ms. Stokesbury for an estimate of the time needed by the Anchorage school district to determine which items on the list must be completed to effect a transfer. As Representative Mulder explained, he shares Senator Leman's concern that the task force and the school district may have differing views as to which items are essential to effect the transfer. In his opinion, the most important thing is to effect the transfer, because then there will be a mechanism in place to upgrade the base schools in the future. Number 166 MS. STOKESBURY explained that several school district administrators had already looked at the list and determined there were some items which were not mandatory. However, it would probably take another week or so to arrive at a definitive answer. Number 173 REPRESENTATIVE MULDER reiterated that this information is critical for the task force to properly perform its job. Number 178 CAPTAIN PORTER, ALCOM, noted that he had come up with a figure of $35,761,000 with the revisions as opposed to the earlier estimate of $23,623,000. He expressed concern about the substantial change in the amount of money at issue. He also questioned what amount of money, in addition to the $23 million, is necessary for the Fairbanks base schools. Number 199 BARBARA MARTIN, ASSISTANT SUPERINTENDENT FOR BUSINESS AND FINANCE, FAIRBANKS SCHOOL DISTRICT, indicated that the total estimate for the new elementary school construction in Fairbanks is $14.76 million. Therefore, a little over ten million is still needed for the new Fairbanks school. Number 205 REPRESENTATIVE JAMES commented that the Fairbanks estimates may be on the high side as far as the task force's purposes are concerned. Number 212 COLONEL VAKALIS, GARRISON COMMANDER, FORT RICHARDSON, pointed out that the United States Department of Education (USDOE) has committed money to address life and safety hazards. He expressed concern, however, that there are a number of items on the Anchorage school district's project list for each school which do not concern life and safety hazards. Since the USDOE will not pay for these additional items, he asked where the money is going to come from to pay for these additional items. MS. MARTIN observed that she thought most of these items were a part of the original memorandum of agreement. Number 238 CAPTAIN PORTER responded that there was no clear record as to what the USDOE agreed to pay for. His interpretation of the original agreement is that it included more than just life and safety hazards. It is a gray area; however, and he sees the bottom line as what the USDOE will pay for now. Number 261 COLONEL VAKALIS reiterated that the task force needs to examine what is affordable and what is the absolute minimum that the school districts will accept to effect the transfer. Number 268 REPRESENTATIVE JAMES expressed concern that too many restrictions were being placed on the transfer. She emphasized that the Fairbanks North Star Borough and the Anchorage school districts need to take some risks here by getting the transfer effected and then focus on the upgrades in the normal budgetary process. Number 278 REPRESENTATIVE MULDER noted his agreement with Representative James. He further noted that there were a lot of nodding heads among the group in Anchorage. He added that it is important to keep sight of the fact that the military bases in Anchorage are the economic base of East Anchorage, and that they have an immense economic value to our community and state as a whole. He expressed concern that if the community as a whole fails to meet its education obligations, it would diminish Alaska's ability to keep these bases open. At a time when decisions about base closures are being considered, he reminded the task force that it needs to make every effort possible to bring these schools into the school districts as quickly as possible. Number 308 REPRESENTATIVE MULDER identified LISA FITZPATRICK who is working with the task force. He then asked Ms. Stokesbury to bring the task force up to speed on the status of Ursa Major School. Number 314 MS. STOKESBURY stated that the Anchorage school district received a letter from the federal government last week indicating that the grant was forthcoming and that the transfer of title could be effected. Under the terms of the grant, the school district can draw ten percent of the $4.9 million but it must spend the ten percent within three days of drawing the funds. A meeting is set for next week to finalize details. Number 332 REPRESENTATIVE MULDER questioned whether there were any problems with Native claims issues in relation to the transfer of the land. Number 335 MS. STOKESBURY indicated that she was not aware of any such problems. The municipality is going forward with getting a lease for the land along with securing a signed memorandum of understanding. She explained that even if it takes time to get the lease signed, the memorandum of understanding will take its place in the interim. Number 344 REPRESENTATIVE MULDER noted that one of the Native corporations has placed a claim on the Fort Richardson land so that if Fort Richardson were ever to close down, the corporation would have first opportunity to take those lands. A lease overcomes that problem. Number 355 COLONEL VAKALIS commented that similar claims have been filed with respect to the Fairbanks bases as well. Number 359 REPRESENTATIVE JAMES stated that she thought the state had also filed claims against the land. Number 361 REPRESENTATIVE MULDER asked if anyone had any questions. Hearing none, he brought up an issue raised at the last meeting concerning the use of volunteer assistance. Number 384 SENATOR LEMAN stated that he met with Senator Ted Stevens and his staff nearly three weeks ago. At this meeting, they discussed the task force and the issue of volunteer service. Apparently, Senator Stevens felt the idea of volunteer input was a good strategy. Number 407 REPRESENTATIVE MULDER requested that Senator Leman follow up on this issue with Senator Stevens. SENATOR LEMAN added that Senator Stevens had commented to him that it was an awkward time in the United States Congress to be asking for money for military base schools, given the competition among states vying for military bases. Both he and Senator Stevens felt this was all the more reason to pursue the volunteer idea. Number 422 REPRESENTATIVE MULDER confirmed this was the same information his office had received from Senator Stevens' office. Representative Mulder also described to the task force a conversation he had with General Ralston wherein General Ralston suggested that, rather than looking to the U.S. Department of Defense (USDOD) for base school funding, the state take its concerns to Secretary Riley at the USDOE. Representative Mulder added that Secretary Riley had been invited to this task force meeting. Number 457 COLONEL VAKALIS noted his agreement that the issue of base school funding really was not a Department of Defense (USDOD) issue. Number 464 REPRESENTATIVE MULDER noted the need for the community and the school district to communicate their concerns to the USDOE. Number 467 REPRESENTATIVE JAMES commented again that the state needs to take risks here by committing funds to the schools. Number 473 REPRESENTATIVE MULDER agreed, but pointed out that it is an easier burden to carry if it is a cooperative effort. He suggested that a fifty-fifty split with the federal government would be a fair split. Number 500 REPRESENTATIVE JAMES agreed, but stated that the legislature needs to commit that money first before approaching the federal government and asking for money. Number 507 REPRESENTATIVE MULDER re-raised the issue of identifying the projects which are essential, as those items will determine the size of the problem. MS. MARTIN responded that the Fairbanks school district feels that it is important to bring the schools up to the same level as the schools which the school district already owns. Number 535 REPRESENTATIVE JAMES noted that all of the schools in the North Star Borough are not equal at this time. Number 540 CAPTAIN PORTER pointed out that the worst case scenario using today's numbers is that a total of $46 million is necessary to bring these schools up to speed. Of this amount, the USDOE is obligated to pay approximately $28 million pursuant to the 1990 agreement. He suggested that the state agree to pay half of that $28 million over a two year period and allow the USDOE to reimburse the state over a period of time. Number 571 SENATOR LEMAN noted that the state is facing a potential $600 million deficit depending on the price of oil. Therefore, it is not clear that the state has the money to leverage the transfer. Number 593 COLONEL VAKALIS said that the USDOE needed to be held to its earlier agreement. Number 605 REPRESENTATIVE MULDER asked the school districts to indicate whether they could have an answer for the task force by October 12, 1993, regarding the minimum amount of funds needed to effect a transfer. MS. STOKESBURY said yes on behalf of the Anchorage school district. Number 614 MS. MARTIN, on behalf of the Fairbanks North Star Borough, indicated that she would make every effort to meet this deadline. Number 616 REPRESENTATIVE MULDER requested that the school districts make an effort to produce a list for the task force before the next meeting. Number 629 NANCY MILLER, PARENT ADVOCACY COMMITTEE, asked if there was anything that could be done to speed up the process. MS. STOKESBURY indicated now that the groundwork had been laid with Ursa Major, things should move more smoothly in the future. Number 646 COLONEL VAKALIS pointed out again that the USDOE only gets a limited pot of money each year. He raised the question of what the Anchorage school district and the municipality would consider as a good faith commitment from USDOE in the way of an I.O.U. in order to get the transfer effected. He added that all parties need to make concessions here. Number 670 MS. MILLER proposed that the USDOE take care of one school each year for the next eight years. Number 679 COLONEL VAKALIS stated it was his understanding that the USDOE was committed to fixing what they had previously agreed to fix. However, even with this commitment, there is no guarantee as to when that money will come. Number 695 MS. STOKESBURY indicated that she thought it would be necessary to take this matter back to the Anchorage assembly, because the assembly passed the original resolution that the schools be brought up to this undefined code standard. Clarification of the assembly's intent would have to be done by the assembly itself. Number 702 REPRESENTATIVE JAMES pointed out that the task force members are presumably advocates for the upgrade of the base schools; as advocates, members need to push this issue with local school boards and assemblies. She pointed out that even if the USDOE agrees to pay money down the road, there is no guarantee this commitment will be fulfilled. TAPE 93-3, SIDE B Number 000 REPRESENTATIVE JAMES continued that since the federal government has already come up with some money, she believes that the state should come up with at least as much money to show a good faith commitment on its part. Number 017 REPRESENTATIVE MULDER again requested that the school districts explore their minimum requirements to effect the transfer as quickly as possible. Number 036 MS. STOKESBURY noted that it might not be possible to come up with a definitive answer by the October 12 meeting in light of the fact that the matter would have to be brought to the Anchorage school board before the issue was presented to the Anchorage assembly. Number 057 CAPTAIN PORTER pointed out that there are two distinct issues with respect to the USDOE: 1) there is the existing $3.9 million commitment; and 2) there is the matter of getting future monies. He suggested that the task force use the $3.9 as leverage against the state with respect to Taylor and Pennell schools in Fairbanks, which are top priority needs schools. Number 102 REPRESENTATIVE MULDER asked for clarification on the amount of money necessary to complete the new elementary school in Fairbanks. Number 109 MS. MARTIN responded that it requires an additional $10.2 million. Number 112 REPRESENTATIVE JAMES indicated that she believes the $14.6 million estimate is high. However, she agreed that the added amount will come in somewhere around $10 million in order to complete the new elementary school on Eielson AFB, which is to be constructed because Taylor and Pennell are not fixable. However, she noted that it wouldn't be necessary to come up with all that money in one year. Number 130 REPRESENTATIVE MULDER asked what additional amounts are necessary to bring the other Fairbanks base schools up to the point where they can be transferred. Number 132 REPRESENTATIVE JAMES indicated she thought the amount was somewhere around four or five million dollars. Number 139 REPRESENTATIVE MULDER noted that Ms. Martin was passing out an updated handout on the projected costs of upgrading all the Fairbanks schools. Number 145 MS. MARTIN explained that the numbers on this handout are taken from the capital improvement plan that Fairbanks submitted to the Alaska Department of Education earlier this month. The total costs associated with the new elementary school are $14.7 million. The current estimate for upgrading the junior/senior high school is $9.8 million. The last project is Anderson elementary school for which the projected cost is $2.5 million. These figures include inflation factoring and they include program needs, as well as life and safety concerns. Number 196 REPRESENTATIVE MULDER requested confirmation from Ms. Martin that she would get more definitive information for the next meeting regarding the amount of money needed to complete the projects which would be required by the Fairbanks North Star Borough before the transfer could be effected. Number 214 MS. MARTIN asked Ms. Stokesbury whether the school district had received the Army Corps of Engineers' report regarding the Elmendorf and Fort Richardson schools. MR. BRANCH responded they had, and that the information was incorporated into the Anchorage school district's report. CAPTAIN PORTER elaborated further that he had requested the school district to incorporate the information into their report and write General Ralston a letter explaining how that was done. Several weeks ago, he requested the wing commander in Fairbanks to request that his army corps of engineer unit examine the life and safety issues in the Fairbanks schools. He added that, ideally, this information should be published since there are other people out there who are interested in the issue. Number 255 REPRESENTATIVE MULDER asked for clarification as to the time table on this review. Number 257 CAPTAIN PORTER responded that the Anchorage base schools have already been inspected and the report is completed. He does not have a time frame with regard to the Fairbanks inspection and report. Number 269 REPRESENTATIVE MULDER asked for details on the Fairbanks base school tour scheduled for October 12, 1993. Number 275 MS. MARTIN indicated that she was awaiting information on the travel schedules of those coming from out of town for the tour. Barbara indicated that she expected the entire tour would take about three and one half hours due to the driving time involved. Number 288 REPRESENTATIVE MULDER stated that, assuming the plane arrives at 9:00 a.m., the tour can take place in the morning, the group can assemble for lunch, and the meeting can begin at about 2:00 p.m. He requested that anyone in need of transportation contact his office. Number 344 REPRESENTATIVE MULDER welcomed PATTY NORHEIM to her first task force meeting and asked her if she had any comments or questions. Number 349 MS. NORHEIM indicated that she had no questions, but she would appreciate receiving any additional information that might be provided to her. ADJOURNMENT Number 360 REPRESENTATIVE MULDER adjourned the meeting at 2:43 p.m.