Legislature(1999 - 2000)
04/06/2000 12:30 PM Senate ASC
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
JOINT ARMED SERVICES COMMITTEE
April 6, 2000
12:30 p.m.
SENATE MEMBERS PRESENT
Senator Tim Kelly, Co-Chair
Senator Drue Pearce
Senator Gary Wilken
Senator Pete Kelly
Senator Loren Leman
HOUSE MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Lisa Murkowski
Representative Gene Therriault
Representative Reggie Joule
Representative John Harris
PUBLIC MEMBERS PRESENT
Alan Walker
Jake Lestenkof (via teleconference)
Dean Owen (via teleconference)
Chick Wallace (via teleconference)
George Vakalis (via teleconference)
OTHERS PRESENT
Senator Randy Phillips
Representative Sharon Cissna
Representative John Coghill
Representative Alan Austerman
Representative Norm Rokeberg
Janice Nielson, US Army-Pacific Legislative Liaison
WITNESS REGISTER
Mr. Paul Fuhs
PO Box 20664
Juneau, AK 99802
Mr. Michael Keene
Anchorage Economic Development Corporation
550 W. 7th Ave.
Anchorage, AK
Mr. Curt McGee
Vice President of Real Estate
Cook Inlet Region Incorporated
2525 C Street
Anchorage, AK
ACTION NARRATIVE
TAPE 00-03, SIDE A
Number 001
CO-CHAIR TIM KELLY called the Joint Armed Services Committee
meeting to order at 12:37 p.m. Committee members present were Co-
Chair Tim Kelly, Senator Drue Pearce, Senator Pete Kelly, Senator
Gary Wilken, Senator Loren Leman, Alan Walker, and General Jake
Lestenkoff (via teleconference). Co-Chair Kelly noted that the
House members were attending a House Majority Caucus and would
arrive shortly.
INTRODUCTION OF MEMBERS AND GUESTS
MR. CHRIS NELSON, Joint Armed Services Committee staff, introduced
Mr. Paul Fuhs.
MR. FUHS introduced Michael Keene, Transportation Director of the
Anchorage Economic Development Corporation (AEDC). Mr. Fuhs
informed committee members that he and Mr. Keene have been working
on logistics issues in Anchorage and that Mr. Keene has taken the
lead on the military logistics initiative. Mr. Fuhs also
introduced Mr. Curt McGee, Vice President of Real Estate for Cook
Inlet Region Incorporated (CIRI).
ACTIVITIES REPORT
MR. NELSON informed committee members that since the last meeting
in January, a significant number of general officer visits have
occurred and several committee members have participated in
important conferences. Lt. General John Costello, the Commanding
General of the United States Army Space and Missile Defense
Command, visited Alaska from March 6 to 9. Lt. General Costello
wanted to view the proposed sites for national missile defense
deployment in Alaska at Fort Greeley. He was given a thorough tour
of the facilities. His focus was on quality of life issues for
soldiers and their families.
MR. NELSON stated that he and Mr. Vakalis represented the JASC at
the Office of the Secretary of Defense Service Community
Conference. That conference focussed on Base Realignment and
Closure (BRAC) issues. The annual conference is hosted by the
Secretary of Defense for all branches of the armed services and the
communities that have suffered base closures. The Army
presentation on BRAC noted that, for the very first time, the
service chiefs raised some questions about BRAC. The Department
of Defense claims there is 22 percent more base structure available
than force structure, however the branches of the armed services
disagree.
MR. NELSON pointed out that from April 24 to 26 the JASC will be
hosting Lt. General Ron Kadish, the Commanding General of the
Ballistic Missile Defense Organization, and Major General Willy
Nance, the U.S. Army's project coordinator for national missile
defense. Both Lt. General Kadish and Major General Nance will
visit the military facilities in Anchorage and tour the Clear, Ft.
Greeley, Ft. Wainwright and Fairbanks' facilities. The Alaska
National Guard will fly them to Shimea (ph) for a tour of Erickson
Air Station.
Number 484
CO-CHAIR KELLY announced that Representatives Murkowski and Harris
had arrived.
MR. NELSON continued his activities report. The Association of the
U.S. Army Symposium on Space and Missile Defense is scheduled to
occur on June 8 and 9 in California. During the month of June,
members of the armed forces are transferred to other assignments.
General Dean Cash, the Commanding General of the U.S. Army Alaska,
has received a new assignment in Washington, D.C. and will be
replaced by Major General Loveless. The change of command ceremony
will take place on June 16.
CO-CHAIR KELLY asked Mr. Nelson to update the committee on the
National Ballistic Missile Defense System.
MR. NELSON noted that Major General Nance and Lt. General Kadish
will be able to provide an excellent update when they visit Alaska.
The integrated flight test number 4, which is the next intercept
test, has been rescheduled to June. The President's decision will
be forthcoming in August.
CO-CHAIR KELLY noted that a recent newspaper story reported that
the costs of that system are higher than the initial estimate.
MR. NELSON stated the costs have increased because the scope of the
program has increased. When the program was initially announced,
a total of 20 interceptors was envisioned. The military then
looked at the emerging threat and felt it would be more appropriate
to have 100 missile interceptors. As the program takes longer,
development costs increase, however the main factor driving the
cost increase is the expanded scope of the program.
CO-CHAIR KELLY noted that Representatives Coghill and Cissna had
joined committee members. He asked that the committee return to
the approval of minutes at this time.
APPROVAL OF MINUTES
SENATOR PEARCE moved to approve the minutes of the meeting held on
January 31, 2000. There being no objection, the minutes were
approved.
CO-CHAIR KELLY announced that Janice Neilson, legislative liaison
for the U.S. Army Pacific, was participating via teleconference.
Number 898
NEW BUSINESS
MR. ALAN WALKER discussed a proposed citation to be presented to
the Juneau U.S. Coast Guard station. The Juneau station, after an
inspection this year, ranked number one in the nation for small
boat stations - quite an accomplishment especially when Alaska's
adverse weather conditions are factored in. The Juneau station had
a total of five discrepancies on this inspection; the average was
77 and the previous all-time low was 17. He recommended that the
committee approve the citation.
SENATOR WILKEN moved to approve the citation. There being no
objection, the citation was approved.
[The committee watched a video about the Northern Edge training
program sent by Lt. General Thomas Case, U.S. Air Force, Commanding
General, Alaska Command.]
Number 1245
SENATOR WILKEN said that he has made many trips to Northern Edge
and is always impressed by what he sees. He noted the military has
suggested that the legislature designate a "Northern Edge Day"
during the first year of each legislative session so that the
military can host the legislature at Northern Edge. He moved that
the committee send a letter to the presiding officers of the House
and Senate and to the military commanders in Alaska asking that
such a day be designated.
CO-CHAIR KELLY asked if Senator Wilken was implying that a C-130
would take legislators from Juneau to Eielsen Air Force and Ft.
Greeley for the day.
SENATOR WILKEN said that is a possibility. He added that he
believes it is important that legislators understand they are
expected to attend.
SENATOR PEARCE noted that the naval component of Northern Edge is
becoming more important as the Coast Guard and Navy play a greater
role. She suggested informing the commanding officers that
legislators are interested in touring the water-based facilities on
alternate years.
CO-CHAIR KELLY asked Mr. Nelson to prepare a letter to the
presiding officers of the legislature and to the commanding
officers of the military in Alaska.
REPRESENTATIVE COGHILL pointed out that it might not be wise to
have all legislators on one airplane in case of a mishap.
CO-CHAIR KELLY stated that will be taken into consideration and
then asked Mr. Nelson to brief the committee on the interim meeting
schedule.
MR. NELSON suggested that the committee hold its next quarterly
meeting on June 5, 2000 at Elmendorf Air Force Base. The U.S. Army
Corps of Engineers will brief the committee on its role in national
missile defense. He recommended that the fall quarterly meeting be
held at Ft. Wainwright. He noted that although committee members
have expressed an interest in meeting in Kodiak, that meeting is
dependent on transportation. He pointed out the August launch in
Kodiak has been postponed.
CO-CHAIR MULDER reminded Mr. Nelson to schedule a discussion on the
issue of the citizens' advisory committee during the June 5
meeting.
MR. NELSON agreed and noted another key date this summer is the
annual meeting of the National Association of Installation
Developers (NAID) on August 5. Representative Harris and Mr.
Vakalis represented the committee at the last NAID meeting. He
urged committee members to consider attending the August meeting.
CO-CHAIR KELLY announced that the next agenda item is a
presentation by the Anchorage Military Logistics Initiative Group.
Number 1671
PAUL FUHS, Anchorage Military Logistics Initiative Group member,
made the following comments.
Currently the U.S. Department of Defense is involved in a major
analysis of its logistics management systems. About $80 billion of
the military's $250 billion annual budget is spent on logistics.
The National Defense Transportation Association held its meeting in
Anchorage last year and discussions revolved around using private
carriers. He has been working with AEDC and some of the carriers
to explore what that might mean from the standpoint of the
contribution to the military mission in terms of war readiness and
cost savings and the economic opportunities it might provide for
Alaska.
MR. MICHAEL KEENE, Transportation Director of the Anchorage
Economic Development Corporation, provided a packet of information
to committee members containing information about the AEDC and the
global distribution center for the Northern Hemisphere, which AEDC
believes Alaska has the potential to be. The group has had the
help of Senators Stevens and Murkowski and Representative Young.
They visited Washington, D.C. three times in the past few months to
demonstrate Alaska's potential as the military's mobility hub for
the Northern Hemisphere. Prior to going to Washington, D.C., the
group met with Lt. General Thomas Case to review the group's
approach which is to establish Anchorage as the global military
logistics hub based on a partnership between private industry and
military contractors. A third party logistics handler would do all
of the warehouse work; shipping, ordering, and parts distribution
for the military. The military indicated it wants this facility to
be located near the Anchorage International Airport, not at a
military base, because the military wants to take advantage of
Anchorage's infrastructure. This joint project involves Alaska's
Congressmen, the University of Alaska, the Municipality of
Anchorage, and the Anchorage International Airport.
MR. KEENE referred to a report in members' packets entitled "Fiscal
Year 2000 Logistics Critical Success Indicators." That report
points out that Anchorage could provide the military with its needs
for its fighting forces. The military suggested that it wants its
logistics operation near the airport because it does not want its
men and women in uniform doing logistics work that private industry
could do. The report also points out that Anchorage is the number
one cargo land and weight airport in the United States. Anchorage
is closer to most of the destinations in the Northern Hemisphere
than any other one location. Anchorage is nine hours from 95
percent of the industrialized world. The AEDC is trying to work
with the military and the other interested parties to market the
military logistics capability in Anchorage.
MR. CURT MCGEE, Cook Inlet Region Incorporated (CIRI), showed
committee members a map of the Anchorage area including the airport
and industrial land. Anchorage airport cargo traffic is expected
to double over the next 20 years and if Anchorage is ever to take
advantage of the logistical-type businesses that could come about
during that time, a location for those businesses must be
determined. Anchorage has about 1,000 acres of land zoned for
industrial use, mostly scattered up and down the old and new Seward
Highway. CIRI has come up with the idea of using Fire Island, of
which 4,000 acres of land is vacant. CIRI owns 3,000 of those
acres; the other 1,000 acres are owned by the federal government.
The group proposed that airport officials consider Fire Island for
additional runway space or for logistics development. To put
runways on Fire Island, the air space around Anchorage must be
studied. The group has contracted with a firm named Landum (ph)
and Brown to do such a study to see how much the capacity could be
increased. That study should be completed in about 45 days. If a
runway is placed on Fire Island, a lot of noise could be moved out
of the Anchorage International Airport. Access to Fire Island must
be considered. The latest idea is to use a suction dredge to bring
material from the floor of Cook Inlet to build a causeway, which is
estimated to cost $30 million.
MR. MCGEE produced an aerial picture showing several runway
configurations and the causeway route across the mudflats. Access
to the causeway could be gained on Raspberry Road and/or from a
tunnel underneath the existing North-South runway. Fish migration
and other environmental impacts are of concern; the Environmental
Impact Statement process should take several years.
Number 2189
SENATOR LEMAN said the alignment of the proposed North-South runway
on the aerial map differs slightly from the map in members'
packets. He asked if those maps present two different options.
MR. MCGEE said yes and that the airport space study should
determine the best alignment and how it will affect departing
aircraft and traffic from Elmendorf Air Force Base.
SENATOR LEMAN asked if a revised proposal for a port on the North
side of Fire Island could be integrated with the new runways to
allow for multiple use.
MR. MCGEE said yes but the only caveat is that the port could not
be located directly underneath the approach to the runway.
MR. FUHS referred to a 12 page document in members' packets and
noted it contains the group's mission statement that was used as
part of its request to meet with Pentagon officials and the
business cards of everyone the group met with. He noted that the
group met with the very top policy makers and was told that
although the military has a global mission in terms of logistics,
it has always divided the world into two pieces. The Asian command
is supplied from the West Coast; the European command is supplied
from the East Coast. When looking at a place on U.S. soil to
consolidate those two commands, Alaska makes the most sense.
Alaska has more airlift capacity and it is the number one air cargo
port. Some of the overseas locations have political risk. The
military is concerned that in some areas, such as Korea, chemical-
biological-radiological contamination of the equipment may make it
unusable.
MR. FUHS continued. Some supplies are carried on Navy ships but
getting the supplies from the ship to shore to supply the troops is
problematic. In addition, some of the ships are so full, they
cannot take on new materials. Admiral Evero (ph) was very
interested in the idea of a port so that supplies can be loaded and
unloaded. Military officials were also very interested in the idea
of a sea-air link. Equipment would be brought by sea to Alaska,
warehoused and then air freighted when needed. Many of the current
base depots are political artifacts of the old system. When the
military did all of the shipping on its own airplanes, bases could
be located anywhere. None of those bases are located near the
modern transportation hubs, except in Memphis, and that base has
been turned over to FedEx. FedEx operates it for packages of less
than 150 pounds. As General Ralston pointed out, delivery from
Anchorage would be one day faster than from Memphis.
TAPE 00-03
Side B
Regarding maintenance, MR. FUHS noted that the military equipment
must be maintained and recalibrated. A lot of the equipment is
modular such as plane navigation systems and electronic weapons
components. The military pointed the group toward several
contractors it has used to do an analysis of the benefits of
Anchorage as a global hub. The group has developed a scope of work
for that analysis and it has received a bid for $200,000 from Price
Waterhouse. That analysis could be completed in two months, in
time for the upcoming quadrennial defense review. Every four years
the military reviews all of its systems and that review will begin
in October. AEDC has requested that the legislature consider
appropriating $200,000 in the capital budget for the study.
REPRESENTATIVE MURKOWSKI asked whether the Department of Defense
would pay a portion of the $200,000.
MR. FUHS replied the group asked the Department of Defense but it
is too late in the year. They also asked Senator Stevens but if
they wait for an appropriation next year they will miss the
quadrennial review. The military has reviewed the scope of work,
however, and the group has asked that the Defense Logistics Agency
or the U.S. Transportation Command to oversee the study, which they
are willing to do.
CO-CHAIR KELLY asked who would conduct the study.
MR. FUHS replied that Price Waterhouse was the most responsive
company.
CO-CHAIR KELLY asked who would sponsor the study.
MR. FUHS replied the AEDC.
CO-CHAIR KELLY asked how AEDC would avoid the "taint" of choosing
its own consultants.
MR. FUHS replied the names of credible consultants were given to
AEDC by the Department of Defense.
REPRESENTATIVE MURKOWSKI asked if the study is not presented before
the quadrennial defense review, it will not be discussed again for
four years.
MR. FUHS said it will be much more difficult for AEDC to submit the
proposal. They were told they would be much further ahead if they
can get the study in before the review.
REPRESENTATIVE MURKOWSKI asked if it will be possible to submit the
proposal after the review takes place, in case the money is not
available to do the study now.
MR. FUHS said they will do their very best to get involved at any
point they can, however, doing the study now would be more
efficient and provide a higher chance of success.
CO-CHAIR MULDER asked what entities will be arguing against the
development of the new logistics center.
MR. FUHS said the existing depots in Georgia, Oklahoma and other
places would be concerned because the Department of Defense wants
to consolidate and do another BRAC round on depots. This proposal
leapfrogs over that whole scenario, however, because it uses
private sector contractors. It does not create a new military base
or depot.
CO-CHAIR MULDER asked Mr. Fuhs if he could give an estimate of the
volume of the support apparatus that goes along with sending troops
to combat areas.
MR. FUHS replied the total spent is $80 billion per year - one
third of the defense budget. In Anchorage right now, contractors
supply $23 million worth of supplies per year, primarily food and
medical supplies.
Number 2139
SENATOR PEARCE commended AEDC and CIRI for the work they have done
and asked how the Alaska Department of Transportation and Public
Facilities (DOTPF) will be involved as the owner and operator of
the Anchorage International Airport.
MR. FUHS said DOTPF has been involved at every level. DOTPF has
been briefed many times and it put forth the proposal to Senator
Stevens for the tunnel under the North-South runway. That tunnel
needs to be constructed for the airport anyway to take the traffic
off of Raspberry Road and Northern Lights Boulevard. Regarding the
Fire Island development, the group proposed, and the airport
accepted, that alternative as a plan option. It is formally in the
planning effort. The proposal has the support of several community
councils and the Mayor. DOTPF has been very cooperative in this
whole effort.
SENATOR PEARCE commented that she supports expanding military
logistics in Anchorage but not if it will mean additional noise
that is not abated in some manner by DOTPF and the airport. She
hopes these discussions will move DOTPF forward toward making
difficult and costly decisions. She thought the CIRI idea would go
a long way. She noted that all of the current cargo carriers have
spent a significant amount of money building cargo facilities at
the Anchorage International Airport. She asked how those carriers
are involved and whether they are supportive of the adjacent site.
MR. FUHS explained that the group briefed all of the cargo carriers
at the very beginning. The carriers said that although it is
unlikely they would move, they would support additional land being
made available because of the congestion and impacts on the
community. A tunnel built under the North-South runway would make
landings at Fire Island workable.
SENATOR PEARCE asked if those carriers would not be precluded from
using Fire Island for takeoffs and landings and for servicing their
jets long distance.
MR. FUHS said that is correct or, possibly all of the transients
could be put out there to reduce noise. They do not need much in
the way of facilities because they are doing tail-to-tail
transfers.
REPRESENTATIVE ROKEBERG asked how that will affect the landing fee
revenues at the airport.
MR. FUHS explained that CIRI's position is that the airports should
be part of the Anchorage International Airport system, whether
managed by DOTPF or a port authority. CIRI has indicated its
commitment to dedicate those lands for the runways to the airport
system.
CO-CHAIR KELLY asked if CIRI owns Fire Island.
MR. FUHS replied CIRI owns 3200 acres of Fire Island. The
remaining 1,000 acres are owned by the federal government - the FAA
and the Coast Guard. The FAA plans to eventually move the VOR as
it moves in more microwave and GPS landing systems.
CO-CHAIR KELLY asked if it is possible to bring a blue water ship
into Fire Island and transfer directly from large aircraft to a
ship.
MR. FUHS said it is. The depth off of the Northeast point of Fire
Island is 65 feet. There are other issues in terms of currents and
navigation and the group has asked the marine pilots in that area
provide information on what the navigation issues are.
CO-CHAIR KELLY commented that an ocean link to a major airport is
a clear advantage that most communities do not have.
MR. FUHS said that Admiral Evero (ph) of the Navy was extremely
excited about this idea and saw it as a possible solution to some
of the logistics issues he is dealing with.
CO-CHAIR KELLY asked Mr. Nelson if he would like to comment on the
Quadrennial Defense Review.
MR. NELSON said the Quadrennial Defense Review began as a "bottoms
up" program several years ago. It has been very successful in
getting the services to talk to one another and look at what they
are doing objectively so it has become institutionalized and occurs
every four years.
CO-CHAIR KELLY thanked the group members for their presentation and
asked whether they sent letters to the presiding officers and
Finance Committee chairs.
MR. FUHS said they did today.
SENATOR PEARCE asked if there is anything else the committee can do
to help forward this proposal, other than consider the capital
appropriation request.
MR. FUHS said it might be appropriate for the committee to send a
letter of support. Senator Stevens' position is that he will do
his best to prevent others from blocking military efficiencies from
taking place.
SENATOR WILKEN asked Mr. Keene what the 3 Double X and 7 Double X
generation aircraft mean to Alaska as far as landings and takeoffs
20 years from now.
MR. KEENE replied, from a passenger standpoint, those new airplanes
will bypass Anchorage. From a cargo standpoint, getting the best
utilization of the aircraft will require them to be filled with
more cargo and less fuel, and to make a pit stop in Anchorage and
perhaps transfer some cargo. If a cargo carrier was to go non-stop
from Hong Kong to New York, the plane would have to take about one-
third less freight to make up for the weight of the fuel.
SENATOR WILKEN asked if the new planes will cause an evolution of
the market.
MR. KEENE said he believes they will. He noted that prior to
joining the AEDC, he spent 37 years in the airline industry.
CO-CHAIR KELLY asked committee members if there is any objection to
sending a letter to the presiding officers telling them the
committee considers this proposal to be a serious effort worth
consideration. There was no objection.
ADJOURNMENT
CO-CHAIR KELLY announced the next meeting will occur on June 5 and
adjourned the meeting.
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