SENATE TRANSPORTATION COMMITTEE February 2, 1993 3:32 p.m. MEMBERS PRESENT Senator Bert Sharp, Chairman Senator Randy Phillips, Vice Chairman Senator Tim Kelly MEMBERS ABSENT Senator Jay Kerttula Senator Georgianna Lincoln COMMITTEE CALENDAR Executive Order 87 PREVIOUS SENATE COMMITTEE ACTION EO 87 - No previous action to record. WITNESS REGISTER Kit Duke, Assistant Commissioner 3601 "C" Street, Suite 724 Anchorage, Alaska 99503 ACTION NARRATIVE TAPE 93-2, SIDE A Number 001 CHAIRMAN SHARP called the Senate Transportation Committee meeting to order at 3:32 p.m. The only order of business was Executive Order 87, relating to the transfer of public facilities to DOT/PF from various state agencies. He indicated that Kit Duke, Assistant Commissioner and project coordinator would review the order. SENATOR KELLY explained he had another appointment but would like to know if the bill would relate only to the executive branch and not the judiciary branch of government. MS. DUKE said Senator Kelly is correct. Ms. Duke continued to give a background of the executive order. She said that the department has been aware that the state is not taking care of a very important segment of its asset inventory which is all the buildings that are used to deliver services. Ms. Duke explained that the state owns about 1,700 buildings in sixty communities around the state. They contain about 11.5 million square feet valued at $2.3 billion replacement value. She informed the committee that about 4.5 million square feet belongs to the university system. Not included in the totals are the borough schools located in several communities. Ms. Duke said the condition of the state buildings are critical to the efficiency of the state's work force. We have a responsibility to safeguard and improve the state's buildings and to provide an appropriate place for the work force and the public to conduct business. Presently, that responsibility is defused among eleven different executive branch departments. Ms. Duke said there are a number of circumstances that they are facing, relating to facilities, over the next decade that need to be addressed. The buildings are getting older and many of them were built in the late 1970s and early 1980s. Ms. Duke said there are a number of new regulatory requirements that must be met, including the American Disabilities Act. There are new technologies we need to employ such as in the areas of energy conservation, and there will be new budget constraints. Ms. Duke explained that over the last two years a number of things have been done. Originally, a group of people comprised of the eleven executive departments formed themselves into what is called "The Alaska State Facilities Administrator's Group," which consisted mainly of facility managers. She explained that the group compiled information relating to how many buildings there are, what their conditions are and what they felt the deferred maintenance liability was. Ms. Duke said the information was presented to the Legislative Finance Committees over the last two years. Ms. Duke explained there were also budget forms which attempted to identify the deficit that exists in the area of maintenance funding. An efficiency report has been completed by the governor's task force which indicated that something should be done to preserve these assets which so much money has been invested. Ms. Duke said in June, 1992, she was selected to head the project. The transition team appointed included members from many state departments. Ms. Duke informed the committee that the executive order transfers building leasing for the executive branch from the Department of Administration to the Department of Transportation and Public Facilities. It also cleans up some statute references that Health and Social Services and Corrections had in their titles about authority to maintain and operate buildings. It essentially sets the stage for doing business in a different way. Ms. Duke discussed the Bethel maintenance project where four departments will combine their six maintenance positions to a single crew on March 1. She said she would be glad to answer questions. SENATOR SHARP questioned what four departments were combined in Bethel. Ms. Duke said the departments were Department of Transportation and Public Facilities, Department of Military Affairs, Department of Health and Social Services, and Department of Corrections. Between those departments, there were six positions. Senator Sharp asked if pioneer homes and state owned schools would be included. Ms. Duke explained that state owned schools would include something like the Seward Vocational Center, but would not include borough schools which have local oversight. Number 147 SENATOR RANDY PHILLIPS referred to page 8, line 20, "(b) The time for a decision may be extended up to 26 days for good cause by the commissioner of administration," and asked what the definition is of "good cause." Ms. Duke indicated that she doesn't know what the definition is but would check into it and call him. CHAIRMAN SHARP indicated that the order would take effect March 13. MS. DUKE explained that the department is working on legislation that would propose to make the merged organization into an authority. She said when rent is charged, the department would need to be able to carry the money beyond the end of a fiscal year so that some of the rent can be used to pay for major repair and maintenance projects that won't occur on a yearly basis. Funds need to be accruing to be able to handle the projects so that they won't be dependent upon direct appropriation. Ms. Duke explained that the Court System would not be included under the legislation. They have explained that their preference is to continue to do their own leasing, but they would allow the authority to provide services to the state owned courthouses. DOT/PF currently maintains the court system's buildings, approximately thirteen facilities. She indicated the department assumes that the Legislature would not be included. About 250 people would be affected by the bill, about ninety-five are already employed by DOT/PF. Ms. Duke informed the committee that the buildings that would be exempt are the university system, rural schools, buildings that are the asset base of existing corporations such as AIDA or the railroad, locally managed hatcheries, park and recreational campground facilities, the legislature, and court leasing. SENATOR RANDY PHILLIPS said there would be no fiscal reduction and asked if it would be more of a management tool. Ms. Duke indicated he is correct. She said currently there will not be any cost savings and there won't be any cost increases. What the department is trying to do is to find efficiencies. CHAIRMAN SHARP remarked that he has not heard any negative comments or requests to expedite the movement of the executive order out of committee. He announced that Executive Order 87 will remain in the committee for possible future action. There being no further business to come before the Senate Transportation Committee, Chairman Sharp adjourned the meeting at 3:47 p.m.