Legislature(1999 - 2000)

03/09/1999 01:20 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      HOUSE TRANSPORTATION STANDING COMMITTEE                                                                                   
                   March 9, 1999                                                                                                
                     1:20 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
DISCUSSION OF DRAFT PASSENGER FACILITY RESOLUTION                                                                               
                                                                                                                                
PRESENTATION:  OVERSIGHT HEARING - ANCHORAGE INTERNATIONAL AIRPORT                                                              
               EXPANSION PROJECT                                                                                                
                                                                                                                                
TAPE 99-8, SIDE(S) A & B                                                                                                        
TAPE 99-9, SIDE(S)                                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
CHAIR BEVERLY MASEK called the House Transportation Standing                                                                    
Committee meeting to order at 1:20 p.m.                                                                                         
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Members present at the call to order were Representatives Masek,                                                                
Halcro, Cowdery, Sanders and Kemplen.  Representative Hudson                                                                    
arrived as the meeting was in progress.  Representative Kookesh was                                                             
excused.                                                                                                                        
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
Number 0180                                                                                                                     
                                                                                                                                
MARCO PIGNALBERI, Aide to Representative John Cowdery, gave an                                                                  
explanation of the draft Passenger Facility Charge Resolution.                                                                  
                                                                                                                                
Number 0299                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY moved that the Committee agree to sponsor                                                                
the resolution and introduce it to the House. There being no                                                                    
objections, the resolution will be sponsored by the House                                                                       
Transportation Standing Committee and brought before the House.                                                                 
                                                                                                                                
CHAIR MASEK then asked for discussion of the Anchorage                                                                          
International Airport Expansion Project.                                                                                        
                                                                                                                                
Number 0419                                                                                                                     
                                                                                                                                
MR. PIGNALBERI gave the background of the Anchorage Airport                                                                     
Expansion Project.  He noted that last year the Alaska State                                                                    
Legislature approved $180 million in bonds which, combined with $26                                                             
million in federal highway funds and $25 million in Federal                                                                     
Aviation Administration (FAA) funds, gives the total project price                                                              
of $230 million.  He said that the advertised price tag is $350                                                                 
million with the off-airport projects included, and that the                                                                    
terminal project is the single largest public works project the                                                                 
state has undertaken.  It is a highly visible project and the                                                                   
public has high hopes for it.                                                                                                   
                                                                                                                                
MR. PIGNALBERI said that some clouds have gathered over the                                                                     
project.  The terminal cost has increased by 50,000 square feet and                                                             
construction cost estimates are $31 million over the original                                                                   
estimate.                                                                                                                       
                                                                                                                                
MR. PIGNALBERI felt that the public is not having enough input on                                                               
how to resolve the cost overruns and that traffic projections are                                                               
overestimated.  Alaskans want to be proud of this project, he said,                                                             
and using the legislature's public process is the best way to                                                                   
dispel any clouds of doubt.                                                                                                     
                                                                                                                                
Number 0881                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO suggested a subcommittee to address the                                                                   
Anchorage Airport Expansion Project.                                                                                            
                                                                                                                                
MR. PIGNALBERI agreed that might be a good idea, and added that the                                                             
Department of Transportation and Public Facilities (DOT/PF) needs                                                               
to get more public input on the project.                                                                                        
                                                                                                                                
Number 0953                                                                                                                     
                                                                                                                                
KURT PARKAN, Deputy Commissioner, Department of Transportation and                                                              
Public Facilities (DOT/PF), presented an overview of the Anchorage                                                              
Airport Expansion Project.  He mentioned that DOT/PF welcomes                                                                   
oversight.  He reported that Bob Walsh, Legislative Aide to                                                                     
Representative Richard Foster, has attended nearly every weekly                                                                 
meeting, and had been invited to each of the quarterly meetings                                                                 
and other meetings that were called at the spur of the moment.  A                                                               
discussion ensued regarding Bob Walsh and his affiliation with this                                                             
project.                                                                                                                        
                                                                                                                                
Number 1228                                                                                                                     
                                                                                                                                
MR. PARKAN introduced Dave Eberle, Program Director for Gateway                                                                 
Alaska, and Don Ketner, Project Manager for the terminal                                                                        
development portion of Gateway Alaska.  Mr. Parkan summed up the                                                                
bond ratings for the project.                                                                                                   
                                                                                                                                
DAVE EBERLE, Program Director, Central Region Construction and                                                                  
Operations, Gateway Alaska, presented an overview of the overall                                                                
project, and he talked about the budget and the schedule for the                                                                
project.  Mr. Eberle stated that the airport project has been a                                                                 
$230 million project from the beginning.                                                                                        
                                                                                                                                
Number 1762                                                                                                                     
                                                                                                                                
MR. EBERLE, in response to Representative Hudson's request for                                                                  
clarification,  explained that the Letter of Intent was for $48                                                                 
million.  Besides the $25 million, the other components include                                                                 
rebuilding "runway 6 left 24 right," and have nothing to do with                                                                
the building of the airport.  Also included in that figure is some                                                              
apron reconstruction, he added.  The difference was never meant to                                                              
be part of the original $230 million project.                                                                                   
                                                                                                                                
Number 1948                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO inquired whether the apron reconstruction was                                                             
between A5 and A9, and Mr. Eberle said yes.                                                                                     
                                                                                                                                
MR. EBERLE went on to go over the project in depth, referring again                                                             
to the "Project Update" handout.  He predicted that the terminal                                                                
would be open to the public in the spring of 2002.                                                                              
                                                                                                                                
Number 2120                                                                                                                     
                                                                                                                                
DON KETNER, Project Manager for the Anchorage International Airport                                                             
Terminal Redevelopment Project, went into a lengthy explanation of                                                              
the project.  He used two large charts which tracked the progress                                                               
of the current design and how the design has evolved.                                                                           
                                                                                                                                
Tape 99-8, Side B                                                                                                               
Number 0565                                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY inquired as to the size of the tour bus                                                                  
area.                                                                                                                           
                                                                                                                                
MR. KETNER referred Representative Cowdery to the picture in the                                                                
handout.  He discussed the need for the tour area to be enclosed.                                                               
                                                                                                                                
REPRESENTATIVE HUDSON asked how they were able to increase the                                                                  
square footage and keep the same cost.                                                                                          
                                                                                                                                
MR. KETNER explained that they and the airlines had put in a lot of                                                             
work looking at ways to control the costs.  He referred the                                                                     
committee to the page titled "Schematic Design Scope Requirements,"                                                             
and the foldout following it.  He stated that they had to explain                                                               
to the airlines that the baggage handling system had gone from $2.5                                                             
million to $13 million.                                                                                                         
                                                                                                                                
REPRESENTATIVE HUDSON asked if the airlines would pay for the extra                                                             
costs directly, and Mr. Ketner said that would be a last resort.                                                                
                                                                                                                                
Number 0915                                                                                                                     
                                                                                                                                
MR. KETNER responded to several questions from Representative                                                                   
Cowdery addressing the design plan of the covered walkway, possible                                                             
future moving sidewalks, and the fact that the airlines own the                                                                 
gates.  He explained the car rental area location, and addressed                                                                
Representative Hudson's question about cost overruns and funding                                                                
options.                                                                                                                        
                                                                                                                                
Number 1457                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO mentioned that he had several questions for                                                               
Morton Plumb, Director, Anchorage International Airport, but Mr.                                                                
Plumb had left the teleconference phone that he had been on.                                                                    
                                                                                                                                
MR. KETNER and MR. PARKAN answered questions regarding the                                                                      
Rise-Alaska contracts, discussed design and management agreements,                                                              
amendments and contracting.                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY drew on his experience in the contracting                                                                
business regarding the cost of making changes, and he wondered if                                                               
they would be asking for more money before the project is                                                                       
completed. He referred to a DOT/PF report that $14.5 million had                                                                
been spent in FY 94 or 97 for the project, and asked if this was in                                                             
addition to the $230 million.                                                                                                   
                                                                                                                                
MR. PARKAN said he would get back to the committee with that                                                                    
answer.                                                                                                                         
                                                                                                                                
Number 2066                                                                                                                     
                                                                                                                                
CHAIR MASEK announced that she intended to continue this overview                                                               
discussion next week in joint session with the Senate                                                                           
Transportation Standing Committee.                                                                                              
                                                                                                                                
MR. PARKAN, in response to Representative Halcro's question about                                                               
constituent and air carrier concerns, stated that nothing regarding                                                             
the terminal project should affect the leases.  He discussed HB 543                                                             
from a couple of years ago.                                                                                                     
                                                                                                                                
Number 2298                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO said that he had heard from a constituent                                                                 
that the airport was considering expanding into the Sand Lake                                                                   
gravel pit, and he asked if there had been any discussion of that                                                               
type of expansion.                                                                                                              
                                                                                                                                
MR. PARKAN noted that there had been some interest in developing                                                                
that area.  He said that DOT/PF is hesitant to go forward on that                                                               
question until the master plan has been agreed upon.  He assured                                                                
the committee that he will keep them informed regarding this issue.                                                             
                                                                                                                                
Tape 99-9, Side A                                                                                                               
Number 0202                                                                                                                     
                                                                                                                                
CHAIR MASEK indicated that she would get back to Representative                                                                 
Cowdery on the subject of a subcommittee to keep abreast of the                                                                 
project during the interim.                                                                                                     
                                                                                                                                
REPRESENTATIVE COWDERY asked that DOT/PF keep tour bus companies                                                                
advised of any changes.                                                                                                         
                                                                                                                                
Number 0389                                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
There being no further business before the committee, the Committee                                                             
meeting was adjourned at 3:10 p.m.                                                                                              
                                                                                                                                
NOTE:  The meeting was recorded and handwritten log notes were                                                                  
taken.  A copy of the tape(s) and log notes may be obtained by                                                                  
contacting the House Records Office at 130 Seward Street, Suite                                                                 
211, Juneau, Alaska  99801-1182, (907) 465-2214, and after                                                                      
adjournment of the second session of the Twenty-first Alaska State                                                              
Legislature, in the Legislative Reference Library.                                                                              

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