Legislature(1999 - 2000)
04/28/1999 05:10 PM House WTR
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
JOINT MEETING
HOUSE SPECIAL ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE
HOUSE SPECIAL COMMITTEE ON WORLD TRADE & FEDERAL/STATE RELATIONS
HOUSE SPECIAL COMMITTEE ON FISHERIES
April 28, 1999
5:10 p.m.
COMMITTEE CALENDAR
TLINGIT & HAIDA CENTRAL COUNCIL, JOB PARTNERSHIPS; LOCAL HIRE
PREFERENCES TO CREATE JOBS FOR RURAL AK (5 TO 6:00 PM)
AK SEAFOOD INTERNATIONAL MANUFACTURING PLANT, INNOVATIVE CONCEPT
FOR AK; PRESENTATION ON VALUE-ADDED PRODUCTS (6 TO 7:00 PM)
TAPE(S)
99-7, SIDE A & B (See EDT Tape 7)
CALL TO ORDER
CHAIR GAIL PHILLIPS called the Joint House Special Economic
Development and Tourism Committee meeting with the House Special
Committee on World Trade and State/Federal Relations and the
House Special Committee on Fisheries to order at 5:10 p.m.
PRESENT
Committee members present at the call to order were:
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM
Representatives Phillips, Cissna, Barnes, Dyson, Rokeberg.
Representatives Kerttula and Halcro were excused.
HOUSE SPECIAL COMMITTEE ON WORLD TRADE AND STATE/FEDERAL
RELATIONS
Representatives Barnes, Cowdery, Phillips, Green, Berkowitz, and
Joule. Representatives Masek was excused.
HOUSE SPECIAL COMMITTEE ON FISHERIES
Representatives Dyson, Whitaker, Harris, Morgan and Smalley.
Representatives Hudson and Kapsner were excused.
OTHER MEMBERS PRESENT
Representative Bill Williams
SUMMARY OF INFORMATION
TERESA GERMAIN, Job Developer, Tribal Employment Rights Office
(TERO), Tlingit and Haida Central Council, who informed the
committee about TERO activities toward implementing local hire
preferences that enhance economic development at the local level.
The organization provides outreach and knowledge of local
community economics to orchestrate employment and training
opportunities for local residents.
MS. GERMAIN explained that welfare reform has been a driving
force for developing local hire employment programs. She wants
the Legislature's support for development of partnership
agreements between regional non-profits and state agencies to
implement local hire.
SHARON OLSEN, Alaska Native Coalition on Employment and Training
(ANCET), told the committee that ANCET, formed in 1982, is
comprised of representatives from the regional non-profit Alaska
Native organizations and tribes. It oversees education, welfare
reform, employment, training and economic development issues
relevant to Native people.
Alaska Natives make up only about 6.5 percent of the more than
13,000 state employees, but 36 percent of the total number of
welfare recipients, in both urban and rural areas. ANCET is
working with the Governor to develop a memorandum of
understanding to improve employment for qualified Alaska Natives.
Several presenters gave examples of successful local hire
projects:
DAN MORENA, Regional Representative, Sitka Tribe of Alaska, spoke
of several construction projects that were able to put local
workers on the job with Native-hire preference. Some of the
projects included the Mt. Edgecumbe High School renovation
project, U.S. Coast Guard Air Station renovation projects, HUD
housing projects, Municipality of Sitka road projects and the
Alaska Marine Highway System.
JOSEPH MOUNTS, Student, University of Alaska Southeast; Intern,
Ketchikan Indian Corporation, told of success in local hire with
the Ketchikan Indian Health Clinic, the Alaska Marine Highway
System and University of Alaska Southeast retraining courses for
displaced pulp mill workers.
MS. GERMAIN, Central Council Tlingit and Haida Indian Tribes,
listed a number of programs that enhance local-hire and training
such as Housing Authority Projects, Kensington mine, Indian
Health Service clinics, Sealaska Corporation tree thinning
projects and various vocational training opportunities. The
Angoon Road Project had 65% local hire, as a result of
cooperative efforts between the Angoon Community Association, the
City of Angoon, Bureau of Indian Affairs Roads and the Department
of Transportation.
MS. GERMAIN concluded by stating that the Council encourages the
Legislature to adopt a resolution supporting the memorandum of
understanding (MOU) between state agencies and regional
non-profit organizations. The purpose of the MOU is to develop
partnering relationships for local hire provisions on both state
and local levels.
REPRESENTATIVE COWDERY asked if local hire agreements are made
when a project is unionized and was told, Yes.
REPRESENTATIVE PHILLIPS asked Ms. Germain if she felt that the
memorandum of understanding signed in 1994 with several state
agencies had worked.
MS. GERMAIN answered that it was a good idea, but not recently
supported. Since the signing of that original agreement, there is
now a new administration, with new commissioners and staff
unfamiliar with the history behind the MOU.
REPRESENTATIVE WILLIAMS asked about the Angoon Road Project and
the problems encountered with establishing an Alaska Native hire
preference since the project was funded with federal aid. The
Federal Highway Administration ruled that a rural preference is
allowed under federal law, but the actual decision is at the
discretion of the state.
REPRESENTATIVE WILLIAMS said this is a problem because the TERO
provisions in state-administered contracts that call for a
Native-hire preference can be construed in violation of the
Constitution of the State of Alaska.
CHAIR PHILLIPS said the committee would discuss the draft
resolution proposed by the Council and the other areas the
Council would like the Legislature to support.
GREG GALIK, Alaska Seafood Industrial's (ASI) marketing and
public relations director, who explained that ASI's plant in
Anchorage is a state-of-the art, value-added seafood
manufacturing plant the largest operation of its kind in North
America.
HOWARD BENEDICT, Owner and Partner, informed the committee
members that the plant is 75 percent complete with anticipated
opening the end of June. The plant houses 6.5 acres of highly
automated equipment that will mass-produce raw and frozen seafood
product into gourmet, portion-sized frozen entrees for grocery
chains and restaurants.
JOHN BRADY, Chief Executive Director, explained to the committee
members that ASI is committed to using all Alaska products in its
value-added process. He said the plant would not be retailing
seafood to the general public, but rather manufacturing only to
certain specifications for its specific clientele. Many
restaurants, because of difficulty in hiring competent help,
prefer a single portion size, seasoned and/or sauced, that can be
quickly cooked.
MR. BRADY said that ASI has an aggressive Alaska-hire and
welfare-to-work program, will use a number of Matanuska Valley
produce and dairy products in its finished product, and meets the
ISO9000 certification standards (highest manufacturing standards
in the United States).
REPRESENTATIVES BARNES AND JOULE asked Mr. Brady to look into
bringing back fresh or frozen seafood from remote areas via
shipment in the empty postal carriers returning to Anchorage
(bypass mail).
CHAIR PHILLIPS invited all present to join the committee members
and presenters in Room 408 for a sampling of ASI's prototype
products.
ADJOURNMENT
CHAIR PHILLIPS adjourned the Joint House Special Economic
Development and Tourism Committee with the House Special
Committee on World Trade and State/Federal Relations and the
House Special Committee on Fisheries meeting at 6:30 p.m.
NOTE:
The meeting was recorded. A copy of the tape 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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