Legislature(2009 - 2010)Anch LIO Conf Rm
09/26/2009 01:00 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| Interaction Between the Anchorage International Airport and the Surrounding Community | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
ANCHORAGE, AK
September 26, 2009
1:05 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator Linda Menard, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Joe Paskvan via teleconference
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
Interaction between the Anchorage International Airport and the
Surrounding Community
HEARD
PREVIOUS COMMITTEE ACTION
No previous action to report.
WITNESS REGISTER
CHRISTINE KLEIN, Deputy Commissioner and
Acting Airport Director
Ted Stevens Anchorage International Airport
Department of Transportation and Public Facilities
Anchorage, AK
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Alaska International Airports System and responded to questions.
JOHN PARROT, Airport Manager
Ted Stevens Anchorage International Airport
Anchorage, AK
POSITION STATEMENT: Provided information and responded to
questions about the relationship between the Ted Stevens
Anchorage International Airport and the surrounding community.
LISSA WRIGHT, Board Member
Country Lane Estates Homeowners Association
Anchorage, AK
POSITION STATEMENT: Asked for cooperation from the Anchorage
airport to reduce future impact on the subdivision.
MERLE AKERS, representing himself
Anchorage, AK
POSITION STATEMENT: Described communication problems with the
Anchorage airport and the public.
CECILIA PREZIOSE, representing herself
Anchorage, AK
POSITION STATEMENT: Questioned how low planes are allowed to
fly over residential areas.
HARRIET DRUMMOND, Vice Chair
Anchorage Municipal Assembly
Anchorage, AK
POSITION STATEMENT: Described communication problems between
the Anchorage airport and the public.
CHRIS HABICHT, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that the Anchorage airport needs
to expand its mission statement to accommodate community goals.
MARK WIGGIN, Board Member
Turnigan Community Council
Anchorage, AK
POSITION STATEMENT: Questioned the efficacy of the public
process with respect to the Anchorage airport.
CATHY GLEASON, Board Member
Turnigan Community Council
Anchorage, AK
POSITION STATEMENT: Highlighted communication problems between
the Anchorage airport and the community.
DAVID MCCARGO, representing himself
Anchorage, AK
POSITION STATEMENT: Testified about communication problems
between the Anchorage airport and the community.
TYLER ROBINSON, Planning Department
Municipality of Anchorage
Anchorage, AK
POSITION STATEMENT: Testified that the municipality is
undertaking the West Anchorage District Plan to address long-
standing issues.
RUSS SINGLETON, representing himself
Anchorage, AK
POSITION STATEMENT: Testified that in the past communication
with the Anchorage airport has been poor.
LINDA SWISS, representing herself
Anchorage, AK
POSITION STATEMENT: Testified about direct impacts to
homeowners related to development at the Anchorage airport.
KEITH DAY, Controller
Alaska International Airport System
Department of Transportation and Public Facilities
Anchorage, AK
POSITION STATEMENT: Testified that the facility fee collected
by the airlines is not a true head tax.
ACTION NARRATIVE
1:05:47 PM
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:05 p.m. Senators Meyer, Davis,
Menard, Paskvan (via teleconference), and Kookesh were present
at the call to order. Representatives Buch, Doogan, and Homes
also attended the meeting.
^Interaction between the Anchorage International Airport and the
Surrounding Community
1:06:58 PM
CHAIR KOOKESH announced the business before the committee is to
hear about how the Ted Stevens Anchorage International Airport
interacts with the surrounding community. The administration
will deliver a PowerPoint presentation on the Alaska
International Airport System, legislators will ask questions,
and the public will comment.
1:07:48 PM
CHRISTINE KLEIN, Deputy Commissioner, and Acting Airport
Director, Ted Stevens Anchorage International Airport,
Department of Transportation and Public Facilities, introduced
her team members.
MS. KLEIN informed the committee that the Alaska International
Airport System (AIAS) is an enterprise system. It was
established in 1964 and is comprised of both the Fairbanks and
Anchorage airports. The Anchorage airport is state-owned and
operated, which is unusual in the airport industry. The system
was established to ensure that major state assets serve the
regions beyond the community hub. As hubs they play important
roles in the national transportation system. Anchorage is the
number one cargo-landed-weight airport for North America and
number five in the world.
MS. KLEIN described how the two airports supported one another
and helped to increase international air transportation between
the '60s and '80s. Initially most of the business was from
international passenger travel but that stopped abruptly in 1992
when Russian airspace opened. Fortunately for the airport, cargo
flights increased at about the same time. That's when the
community began to see growth in the northern part of the
airport. Over the past 15 years cargo traffic has been the
primary focus of the Anchorage airport.
1:14:30 PM
MS. KLEIN displayed two line graphs to show the five-year trends
for the Alaska International Airport System for FY06-FY10. The
first graph shows combined passenger and cargo certificated
maximum gross takeoff weight (CMGTW). This is where the majority
of the revenue comes from in the system. In 2006 they started to
see fuel decreases, which is the first sign of change in
aircraft weight and traffic. Cargo flattened and then began to
drop in 2007. In 2008 there was a 23 percent drop in the
combined passenger and cargo traffic, which was compounded by
the recession and high fuel costs. This was significant. Traffic
came to a complete stop in 2009 when the volcano spewed ash.
These trends are alarming. The second graph shows that over the
same period passenger enplanements were relatively stable until
May 2009 when they declined by 20 percent.
FY09 saw a 23 percent or 10 million ton drop in combined
cargo/passenger CMGTW, which equates to a $2 million loss for
March and April. On average revenue decreased $1.7 million.
Passenger enplanements were relatively stable largely because
Alaska relies so heavily on aviation as a means of travel.
1:18:10 PM
MS. KLEIN highlighted that United Airlines pulled out of Alaska
in 2008, which resulted in a loss of 35 jobs to the community.
Delta and Northwest airlines have merged meaning that Northwest
will cease doing business in Alaska. Delta reduced passenger
service to Fairbanks altogether. This has resulted in layoffs in
ground support at the airport. AIAS has had a hiring freeze for
more than two years, which prevented some large layoffs. Last
spring there were 9 layoffs and 55 positions are currently
vacant. The AIAS budget has been reduced by seven percent over
the last two years. This situation has been difficult but AIAS
is doing better than most Lower 48 airports.
1:20:59 PM
Bright spots for the Anchorage airport include:
· Adding three new international cargo carriers: Yangtze
River Express, Great Wall, and Quantas.
· Air carriers and their signatory board have approved
implementation of the first incentive program to increase
Asia Pacific passenger service to Alaska. China Airlines
now offers four weekly flights between Anchorage and
Taipei.
· Japan Airlines offers three more flights than in 2008.
· Being a top performer in concession sales.
1:22:23 PM
REPRESENTATIVE HOLMES asked what form the incentives take.
MS. KLEIN explained that up to $1 million in rates and fees are
waived once an airline has met its contractual obligations. That
program started in either June or July. Other changes include
adding McDonalds as a concessionaire and opening the new A and B
concourse on November 1.
MS. KLEIN said they are most proud that after a three year
holdover, the airlines have committed to a new operating
agreement. It was signed in February and adds five more air
carriers that are committed to funding airport operating and
capital costs for the next five years. The new agreement focused
on a business model approach where air carriers, airport
tenants, and other users pay for what they use. It is more
equitable. Also, more accountability has been instituted on
projects and capital programs. There is a commitment to be more
competitive. It was a strong show of support for the AIAS to
sign the operating agreement at the worst time in the aviation
industry's history.
The capital improvement program (CIP) for the next five years is
a modest $177.4 million. Most projects have been deferred or
canceled due to a lack of funds and high debt. The priorities
are to maintain the existing system and renovate existing
runways and facilities. A fourth runway is not on the five-year
horizon.
1:26:19 PM
MS. KLEIN pointed out that the state operated Anchorage airport
is part of the national priority system of international
airports. It is located within the Municipality of Anchorage and
is under complex federal regulation. Developers have raised the
concern that adding more processes might drive away their
business. In the last year and a half there were no bids on
three opportunities, but that may be due to the weak economy.
Marketing plans include:
· Discussions with a European carrier for year-round
international passenger service and with three domestic
carriers for passenger service. They are waiting for the
economy to improve.
· Marketing partnerships with local convention and visitor
bureaus, economic development corporations, and others.
· Participation at both the Beijing and Hong Kong
international cargo conferences and trade shows.
MS. KLEIN named the members of the marketing team and
highlighted that even though this is a state enterprise system
it is also a business that is required to operate like one.
1:29:21 PM
MS. KLEIN said the Anchorage airport communications plan
involves keeping the public updated on airport activities and
developments. This includes:
· Developing an airport master plan. This is a huge public
process that is usually done every five years and is
ongoing for several years. In 2002 the last official master
plan was done and it included 52 public meetings. In 2006
the airport worked on a new master plan for 16 months; 67
public meetings were held and five newsletters were issued
before the process was terminated last fall.
· Construction meetings. These are held at least once a year,
but runway extensions and renovation projects require
additional meetings.
· Serving on boards and commissions. She and the airport
manager regularly participate.
· Holding quarterly stakeholder meetings with community
members. The last meeting was held two weeks ago.
· Meeting with community councils to give updates on projects
that might impact the community. The three adjacent
communities are Turnigan, Spenard, and Sand Lake. "I
typically have someone from the airport also attend to
answer question or give updates and briefings."
· Tenant updates are required if a development is planned.
This is required on top of the city's building permit
process.
· Environmental and noise managers actively participate and
monitor the airport noise hotline.
1:32:04 PM
MS. KLEIN said the airport's economic impact to the local
community is more than 18,000 jobs and $562 million in direct
annual payroll. The statewide aviation impact is one in ten jobs
throughout the state and $3.5 billion or eight percent of the
gross state product (GSP).
The top priority in planning for the future is to keep the
current aviation businesses. The Anchorage airport is an
economic engine and as such it has to be competitive, which
means holding rates and fees stable. They've done that for two
years despite the economic downturn. The Fairbanks airport is
part of what makes the AIAS competitive so traffic isn't lost
during another volcano eruption. There is also an effort to
establish alliances with other airports and to be cooperative
and welcome to new businesses.
In closing Ms. Klein said the Anchorage airport takes seriously
its commitment for responsible development. "We do feel we
operate in an open and transparent environment with all the
meetings that we've held. … We hope and trust that we can
continue to meet with our neighbors and keep them informed
despite the many cuts that we have made."
1:36:38 PM
JOHN PARROT, Airport Manager, Ted Stevens International Airport,
Anchorage, read the following into the record:
The question being asked today is, 'What kind of
neighbor is the Ted Stevens Anchorage International
Airport?' At over 4,600 acres one answer would be,
'Big.' Despite the size of the airport and the
potential to act like the proverbial 800 pound
gorilla, airport management believes we have a
responsibility to manage the airport and its
development in an efficient, effective, sustainable,
and responsible manner. As a generator of noise,
exhaust, and lots and lots of jobs, we continually
strive to balance airport development to meet the
needs of our tenants and customers with the desire to
minimize negative impact on the surrounding
communities.
Clearly, if one takes an absolute approach, the
airport will never be successful. If we develop blind
to the wishes of the community, we would be at fault.
If we abdicate control of the airport to a vocal
minority that wants to oppose development, we would be
at fault and in violation of our understanding of the
FAA grant assurances.
What has the airport done in the past to attempt to
communicate with the surrounding communities? During
the past two master planning efforts, over 100 public
meetings were held attempting to solicit public
opinions, public input, and to inform them of possible
future development.
Most significant projects at the airport require a
NEPA process that includes required public
involvement. One recent example where this has been
very successful, in our opinion, is the upcoming
seven-right extension. Thanks to active engagement by
the recreational users of the area that will be
impacted, compromises have been reached that meet the
needs of the airport as well as minimize the negative
impact to the trail system - and in some areas even
potentially improved the trails. This appears to have
truly been a win-win project.
Outside of these required efforts, the airport hosts a
construction preview for the public each spring. While
the emphasis in the past has been on projects to be
constructed in the upcoming summer, we heard the
public asking us to give them a longer range preview.
So we have now begun previewing projects that will
happen in the next one to two to three years to give
them more warning and heads-up. Unfortunately,
attendance at these meetings has been very, very low
and I would welcome suggestions as to how to make them
more useful and more informative.
The airport…staff regularly attends the Sand Lake,
Turnigan, and Spenard community council meetings.
While we do not attempt to attend each and every
meeting, we do ask to be put on the agenda when we
feel there is some activity at the airport that should
be explained or if there are questions and concerns
from the community council members. We also use email
to communicate with the community councils as well as
individual community members whenever we are queried.
A year or so ago, at the request of the Sand Lake
Community Council president, we participated in a
focus group to drill down deeper into improving
communications with that community council. That has
since been terminated. We have offered to continue the
effort but the current Sand Lake Community Council
president has informed us he doesn't feel it's
necessary.
This summer we met with city leaders and discussed
communication with the surrounding communities.
Assemblyman Claman proposed another attempt at a focus
group involving all three of the community councils
surrounding the airport. We gladly agreed and the
first meeting of that group was held on September 23,
this week.
Finally, as we examine the role of the airport in the
community I would ask that you not only consider the
impact of the airport on the Sand Lake, Spenard, and
Turnigan communities, but also on the Hillside,
Fairview, and Mount View - and other communities in
Anchorage where residents live who depend on their
jobs at the airport. That job impact extends to
Girdwood, Wasilla, and Palmer. The impact of the
airport doesn't stop there. By providing the needed
infrastructure, the airport allows goods and people to
access rural Alaska. The impact of this airport is
felt in Bethel, Aniak, and Emmonak - and throughout
Alaska. The needs of those Alaskans should also be
considered when it comes to possible airport
development.
In conclusion, the airport fully recognizes that we
have a responsibility to take the input from and
seriously consider needs and desires of the community.
We ask the community to consider that the airport also
has other responsibilities and work with us to try to
reach solutions that are acceptable to all even if
they don't satisfy anyone. Sadly, that is the nature
of compromise. If anyone has any suggestions as to how
we can better engage the community, I would welcome
them. Or if you have any question I would be happy to
try to answer them.
1:41:14 PM
CHAIR KOOKESH recognized that Representative Gruenberg had
joined the meeting.
SENATOR MEYER, noting that the airport receives lots of federal
money, asked how much influence the federal government has over
airport operations. He also asked if the airport was eligible
for any stimulus funds.
MS. KLEIN replied the federal government is involved in nearly
all airport projects. The FAA has to approve the airport master
plan and any planned development at the airport has to be
approved through that process. Once a project is in the master
plan, it can receive funding if it qualifies. The current
formula has about 95 percent federal funding with a 5 percent
state match for international. If it's a qualifying project the
5 percent is paid for by the airlines.
Under the stimulus program, projects had to be shovel-ready and
you couldn't have applied or been in the process of applying for
other federal grants. Another early criterion was that a project
had to be in an economically disadvantaged community. Neither
Anchorage nor Fairbanks was considered disadvantaged, but they
did qualify for two projects. In Anchorage that was a $3 million
repaving project.
SENATOR MEYER said his reason for asking is that the airport is
in a tough spot because it has to appease local, state, and
federal concerns. He noted that he represents southeast
Anchorage and there aren't too many complaints unless the east
west runway is used. He asked if the airport will take over the
area vacated when Kulis Air National Guard pulls out.
MR. PARROT explained that when Kulis Air National Guard vacates
the base at the end of FY11 under the base realignment and
closure (BRAC), the Department of Defense will terminate its
lease with the state and about 135 acres will come back into the
airport inventory. The airport is currently initiating a mini
master plan to determine the needs for that property. Responding
to a question about involving community councils in the process,
he said there is a significant public process in the study and
in implementing the recommendations for use of the property.
SENATOR MEYER said he represented the Spenard community when he
served on the Anchorage assembly and the airport was always good
about keeping everyone informed.
1:46:09 PM
REPRESENTATIVE BUCH said he noticed that in this last budget the
airport received "the biggest chunk of change." He asked if most
of the money was used for capital projects such as the
improvements that were mentioned. He noted that Ms. Klein has
been available and tried to accommodate communication requests
and he appreciates this cooperation.
MS. KLEIN explained that in the last legislative session there
were two changes in the AIAS program. On the capital side there
was authorization for the airport to accept federal money for
the runway rehabilitation. The majority of the money was
federal. The second item was a $3.1 million line reduction in
the operating budget. That was done as a commitment to the
airlines to be more cost effective. This wouldn't normally be
done through the legislative process but it was done that way to
show transparency and to demonstrate that the airport took their
comments seriously. She added that this is not general fund
money. The airport is run on private money coming from the
airlines through rates and fees. "There is no general fund money
in this operation."
1:49:23 PM
REPRESENTATIVE BUCH noted that the last 20-year plan was
completed in 2002 so the airport is several years behind in
doing a 5-year revision. He asked for a progress report on the
20-year plan and said he wants to be part of the new focus group
so he can keep his constituency updated.
MS. KLEIN explained that the master plan that was started in
2006 was very controversial on one issue and she had little
option but to terminate the process. That effort was turned into
a report. As the economy turns around, they hope to restart the
process and get better data on growth projections and capacity.
Many of the questions related to whether or not those
calculations were credible and reflected changing world
conditions. This is a cooling off period before restarting the
process. Master plans are time consuming and costly and lots of
different groups want to take part. "That is typically why
master plans in this community for this airport have taken much
longer than the 5-year period." Until this last one, master
plans for this airport have historically taken from 6-10 years.
That tells us that there shouldn't be too many surprises in the
future master plan. FAA is supportive of restarting the process
but agrees that it's a good idea to wait.
1:54:05 PM
REPRESENTATIVE BUCH said he's looking for a timeframe for
starting.
MS. KLEIN said they committed in the operating agreement to do a
system plan before restarting the master plan. The airlines said
that the capacity and growth capacity of the Fairbanks airport
hadn't been considered so they will look at that before
restarting calculations. She estimated that probably will be
within two years.
REPRESENTATIVE BUCH asked if he can tell the community that the
airport is looking to "rebuild, restructure, and recommit to a
communications plan that will also involve the surrounding
communities within two years."
1:56:32 PM
MR. PARROT said the airport has always been committed to a
communications plan. He continued to say:
These communication efforts take place on a number of
different levels. There will be a master planning
public involvement process initiated within two years
as part of the master plan effort. We fully intend to
continue attending the community council meetings when
requested or when we believe we have a need. And we
will continue having public informative meetings and
public input meetings on specific projects along the
way. I wouldn't want the impression to be that we're
not going to do anything until we start the next
master plan. We intend to continue to try to improve
communications consistently up to and through that
process.
REPRESENTATIVE BUCH said he wants to make sure that Director
Klein can wear all the hats she's undertaken to wear in order to
promote the industry. If you need more help and that can be
substantiated fiscally, I want to support that, he said.
MS. KLEIN said she appreciates his concern and she undertook the
job because of the support and encouragement she has received.
Also, she has a top notch and very committed team that works
long hours with great passion. "I think that we can carry on and
meet our core mission." In the long run it's well worth it.
1:59:52 PM
SENATOR MENARD asked if there had been any conversations about
increasing traffic to and from the Palmer airport. She also
asked if realtors have been invited to weigh in on the airport
master plan.
MS. KLEIN pointed out that neither of the two Palmer-area
airports is state operated, but she does try to help whenever
possible. She can't speak to whether the airport would be a
destination or hub because that's an airline decision, but it is
conceivable if there is enough traffic. She noted that a couple
of cargo air carriers oriented to the Bush left Anchorage to
operate out of Palmer.
SENATOR MENARD asked if the state has considered buying the
Palmer airport.
MS. KLEIN replied she usually tries to give airports back to
communities. Ketchikan is an example of a state-owned airport
that is operated by the City of Ketchikan. Typically airports
aren't profitable and communities usually don't want to take
them on unless there is a lot of traffic. Responding to a
statement that they do provide jobs, she said some communities
try to get airports for just that reason.
2:04:58 PM
SENATOR MENARD asked if Boeing 737s land at the Dutch Harbor
airport. She surmised that the runway is about 4,000 feet in
length.
MS. KLEIN said jet aircraft at one time landed there so it would
have to be at least 4,000 feet. She offered to meet with the
Palmer airport manager.
SENATOR DAVIS asked her to go over the agreement with the
signatory airlines because she is unclear about the process for
the public to know what is going on.
MS. KLEIN explained that airports are public facilities that are
funded entirely by the rates and fees charged to the airlines
that use the airport. It is a unique enterprise business where
the airlines sign an operating agreement that lays out how they
will be charged from year-to-year. By federal law, airports
aren't allowed to make a profit; all the funds that are
generated have to go into airport operations. The operating
agreement is what guarantees the airport is able to operate.
Without that agreement airports can go significantly in the red.
When that happens, state or local government has to bail them
out or they lose the service. The enterprise here has been very
self sufficient and growing. 26 airlines have signed the
operating agreement to pay airport costs for a five-year term
under certain conditions.
SENATOR DAVIS asked what nine positions were cut and the impact
those cuts have had on airport operations. She also asked if the
decision to cut the positions was based totally on input from
the airlines.
MS. KLEIN said no; the cuts were based on last year's $22
million deficit that had to be balanced by year end. When
traffic changes, revenue drops and the airport is challenged
with balancing the deficit without causing rates to skyrocket.
When rates go up too fast it drives aircraft away. It's a
dynamic process of looking at rates and fees, the traffic, the
cargo, the number of enplanements, and revenue coming in from
concessions. She and the controller rebalance and recalculate
every week. Although there's opportunity to make adjustments
several times a year, doing so creates upset to businesses if
they haven't been informed. I think we've created a stable
business environment because we haven't seen severe drops, she
said. We've followed the trend except during the Mount Redoubt
eruption. The ash lasted a week but it took six weeks for cargo
to return to the airport. That's not a good sign since that's
where a majority of the revenue comes from.
2:14:20 PM
SENATOR DAVIS recalled reading that Anchorage has some of the
lowest landing fees of any airport.
MR. PARROT said the airport markets itself in a good light.
There was a recent report that said that per passenger mile,
tickets in and out of Anchorage are the lowest among major
cities. "Obviously with the distance of the flights, per mile
our tickets are fairly cheap," he added.
REPRESENTATIVE GRUENBERG asked if the 7R/25L runway extension
and rehabilitation would encroach to the east on Conner's Bog
and the dog park.
UNIDENTIFIED SPEAKER said the southern east-west runway will be
resurfaced over two construction seasons and (indecipherable)
end will be extended 1,500 feet.
REPRESENTATIVE GRUENBERG referenced a letter from John Fletcher
related to the expansion at Lake Hood and asked if that is
within the purview of the discussion today.
MR. PARROT summarized that Mr. Fletcher recommended an
additional 4,000 foot paved runway for the Lake Hood seaplane
base complex during the Lake Hood master planning effort. That
was discussed at length in technical meetings, but it did not
make the list of recommended improvements to Lake Hood. Mr.
Fletcher continues to advocate for that as an important safety
improvement.
REPRESENTATIVE GRUENBERG said he would follow up after the
meeting.
REPRESENTATIVE HOLMES mentioned Lake Hood and Lake Spenard and
noted that the Anchorage airport property includes probably the
busiest seaplane lake in the world. She asked what the airport
sees as the opportunities and challenges of having those two
lakes in their inventory.
2:18:49 PM
MR. PARROT said it's a challenge and an opportunity to have the
busiest seaplane basin in the world in the center of the largest
city in the state. This is an outstanding opportunity for people
to fly in and out of Anchorage on floats, wheels, or skis. If an
instrument approach is needed on wheels Anchorage international
airport is available. There is a connecting taxiway. Also, it
provides an incredible recreational opportunity to walk around
and look at all the airplanes. Finding a way for this to occur
in a safe and responsible manner is an ongoing process.
SENATOR PASKVAN asked if there is a projection within the next
five years to return to previous cargo tonnage levels. He noted
that the current levels have had a significant impact upon the
railroad with respect to transportation of jet fuel. Also, he
understands that Anchorage airport is purchasing jet fuel out of
Singapore and questions how that compares to a gallon of jet
fuel from Alaska.
2:21:16 PM
MS. KLEIN replied maintaining air traffic is important
particularly in the current downturn. The airport has an
operating agreement and it has kept rates and fees competitive.
Now the airport is trying to ensure that carriers and their sub-
businesses feel welcome. They are also working to ensure that
the Fairbanks airport has the infrastructure to better handle
cargo. To that end three hard stands were constructed last fall
to accommodate cargo aircraft when they divert [from the
Anchorage airport]. [During the volcano eruption] some FedEx and
UPS flights diverted to Fairbanks but one of the largest
airlines didn't realize that Fairbanks was an alternate. They
lost most of their profit when they diverted to Seattle. The
vice-president of that international carrier has since toured
both airports and understands that aircraft can divert to
Fairbanks when there is a problem with Anchorage. In the past
the airport hasn't formed alliances with other airports looking
at transloading capabilities. Now they are trying to match
international and domestic carriers to increase their networks.
In the last two months passenger and cargo traffic in China has
increased 16 percent. That is a positive sign and hopefully
their recovery will affect Alaska.
MS. KLEIN said she can't speak to the fueling issue because it's
the airlines that purchase fuel. They do that in a number of
ways including; a consortium, Flint Hills, Tesoro, and Valdez in
the past. She suggested that an airline could better speak to
that issue.
2:24:44 PM
CHAIR KOOKESH opened public testimony.
LISSA WRIGHT, Board Member, Country Lane Estates Homeowners
Association, Anchorage, on behalf of the 44 homeowners in the
subdivision, asked the airport work with the neighborhood to
design future development to minimize additional negative
impacts on the neighborhood. This will mean some economic
sacrifice. For example, if the airport does not develop lots
right up to the Raspberry Road fence in the proposed south
airpark access road and lot development, it would maintain the
character of the road and provide the neighborhood a much needed
sound, and visual buffer.
2:27:37 PM
MERLE AKERS, representing himself, Anchorage, said he apparently
is not a stakeholder even though he lives next to the airport
and has had a plane there for 50 years. The primary problem with
the airport is that there is no forum for the general public to
sit in the airport meetings and learn what's going on. He's
never allowed to testify. The question that hasn't been asked
today is who participated in the negotiations for the consortium
contract. "You need to know who those folks are," he said. The
consortium airlines will demand that the airport system change
the rates and other things that affect the people that use not
only the Anchorage international airport but also the other 200
and some airports in the state. He recommended that the
Legislature establish an airport board to oversee airport
operations. He cited examples of contracts at Lake Hood and Lake
Spenard to demonstrate that the airport doesn't pay attention to
public input. Finally, he said the state frequently closes Lake
Hood, which affects control of the tower and makes it difficult
to get clearance to land or take off. Merrill Field is run by
the city of Anchorage and it hasn't closed in 30 years. To
resolve the problems you'll hear about today, the Legislature
needs to take control and ensure that there's a forum for the
public to participate. Responding to a question from
Representative Buch, he pinpointed his property on the map and
noted that he is represented by Senator French and
Representative Holmes.
2:40:19 PM
CECILIA PREZIOSE, representing herself, said she has been a
homeowner in the Windermere subdivision for about 18 years and
has noticed a change in flight patterns. Now the jets fly so low
that she can recognize the people on board. There's a noise and
safety issue here, she said. "The days of Anchorage and Alaska
being 'Yahoo, Wild West.' are gone." Flights from Lake Hood are
more numerous than the jumbo jets and they need to fly at least
1,000 feet above homes. Responding to a question from
Representative Doogan, she agreed that they live at about the
same latitude.
2:45:50 PM
HARRIET DRUMMOND, Vice Chair, Anchorage Municipal Assembly, said
she represents roughly 50,000 west Anchorage citizens. It's a
huge district. She said the Anchorage international airport has
nearly a permanent spot on the agendas of Sand Lake and Turnigan
community councils and often is on the agenda of the Spenard
Community Council. It's such an issue in the Sand Lake area that
that community council created a separate committee to get to
keep the airport from occupying every meeting. The Anchorage
international airport impacts a huge portion of west Anchorage
and the residents are clearly frustrated.
Most people understand that the airport operates from revenue
generated by the industry and everyone who travels appreciates
the convenience of having a modern airport in the neighborhood.
There is no question that the airport is an important driver in
the Anchorage economy. However, the airport is a neighbor and as
it expands to its boundaries, it's increasingly important for
all the neighbors to work together. The airport occupies center
stage in the west Anchorage district plan that is underway. Once
that is complete, zoning and development issues can be addressed
and clarified in the new land use regulations that will
implement the Anchorage 2020 Comprehensive Plan. However, it's
been virtually impossible for airport neighbors to have any
input on the airport development plans. Airport representatives
visit community councils and announce their intentions without
really asking for input. Everyone recalls the disaster that
method of public communication became last year with the
announcement of a new north-south runway. The signatory airlines
refused to support the runway and the previous airport director
subsequently departed.
Everyone is well aware of the current economic downturn and the
impact of nature's power. It's a quieter period at the airport
and she sees it as an opportunity to improve communication
between the airport and its neighbors. To this end, Assemblyman
Claman has suggested quarterly communication meetings for the
airport and the neighboring community councils. Ms. Drummond
clarified that these would not be focus groups. They are
intended to facilitate the communication process but it's
difficult to do that without help. She advised that the west
Anchorage district planners will hold an initial public meeting
on October 8. They will present the issues and opportunities
regarding the airport and west Anchorage as well as issues of
housing, town centers, circulation, and transit. The public
review draft of the plan will be out by year end and will
include a summary of the neighborhood and airport conflicts. I
hope the planning process leads to more open and early
communication with the airport, she said.
MS. DRUMMOND added that she was shocked to hear there has never
been a system plan for the Anchorage and Fairbanks airports. The
previous airport director told her that Anchorage revenues
support the Fairbanks airport. If that is the case, then perhaps
some of the cargo should go to the Fairbanks airport.
2:52:26 PM
CHRIS HABICHT, representing himself, said he is a member of the
Turnigan Community Council and has lived in the area for 17
years. He said the airport has done a great job in following its
mission statement. He stated it as follows:
The mission of the Ted Stevens International Airport
is to safely, effectively, efficiently operate and
maintain the airport consistent with federal
regulatory requirements, high customer service
standards, sensitivity to user needs, and awareness of
community goals.
MR. HABICHT emphasized the phrase, "awareness of community
goals" and highlighted the fact that there is no mention of
incorporating community goals into plans unless it doesn't cost
anything. For example, when the north-south runway expansion was
proposed the airport provided lots of outreach and took in
comments from the public. In early 2000 the tonnage in and out
of the airport was projected to increase, but by the time the
runway project was moving forward the economy had slowed.
Someone asked if the projections had been reevaluated and the
airport never provided a satisfactory answer. As it turned out,
the air carriers also felt that the airport needed to adjust
their projections and didn't support the runway expansion. This
shows that the community provided input, but it didn't appear to
be utilized by the airport. "My feeling is that the mission
statement for the airport really needs to change to include the
community goals in the decision-making process, not just being
aware," he said.
2:56:10 PM
MARK WIGGIN, Board Member, Turnigan Community Council, said he
has lived in the Turnigan neighborhood for eight years. He hopes
to shed light on one of the most critical issue facing Turnigan
residents, which is the efficacy of the public process. The
airport does seem to engage in some sort of a public process,
but the issue is what happens to the information. As a member of
the advisory committee on the cancelled fourth runway project he
was initially excited to be part of the process. Within six
months or a year he realized he was wasting his time and didn't
attend the last meetings. The previous airport administration
rolled out the fourth runway project amid great fanfare only to
have the airlines read a letter opposing the project. There was
a lot of time, effort, and money spent needlessly on that
project. He expressed hope that this hearing, legislative
engagement, and work by the new airport administration will
result in never again spending so much money on such a flawed
and damaged process. It's an excellent example of what not to
do.
3:00:31 PM
CATHY GLEASON, Board Member, Turnigan Community Council, said
she has lived in the Turnigan and west Anchorage area for 27
years. She expressed the hope that this hearing is just the
first step in the dialog with the Legislature regarding airport
and community matters. One of the most important points she and
others want to make is that there are flaws with the current
public participation process. To their credit, the airport has
improved communication with the public over the last several
years. They have not hesitated to attend community council
meetings to present development plans or give updates. That is
appreciated. The issue is not that the airport doesn't follow
public process requirements. The issue is that the airport
handles public input very inadequately and that there is nothing
that requires it to objectively evaluate or incorporate
meaningful public input. What typically happens is that they
tell the public what they intend to do and, as a formality, ask
for input. Once the public provides input, the airport spends
time and money defending their original position and plan rather
than listening to and being responsive to the feedback.
MS. GLEASON said an example of the airport ignoring overwhelming
public opposition was when it applied to the Army Corps of
Engineers for a 10-year wetland permit to fill more than 240
acres in Turnigan and Postmark bogs. Despite overwhelming
opposition due to environmental and subsequent high development
impacts, the airport moved forward and the permit was approved.
The permit was revoked only after a lawsuit was filed and it was
discovered that the airport underestimated air pollution
emission levels in the application. A more recent example is
when the airport proceeded with plans to build the second north-
south runway despite continuing public opposition and questions
of economic viability and necessity by airport tenants. Among
other impacts, that project would have destroyed a 190 acre park
west of the airport and put an enormous amount of fill in the
tidal area at the northern end of the Anchorage Coastal Wildlife
Refuge. It was only the economic downturn and fear of increased
user fees by signatory airlines that put a stop to that project.
All public input was ignored. Over the years the council has
provided input on the long-running impacts to the residential
area and nearby recreational facilities. Rarely has this input
resulted in adequate resolution of problems.
MS. GLEASON asked the Legislature to become more involved,
provide more oversight, and if necessary intervene in airport
operations and development because the current process isn't
working.
REPRESENTATIVE DOOGAN asked if problems with the airport have
improved since the previous airport director was replaced.
MS. GLEASON mentioned the continued air and ground noise at her
house and said the impacts are and have been so high that even
though traffic is reported to have dropped, there is no tangible
evidence that issues have been resolved. She added that the
master planning process has stopped, the economy is in a
downturn, and the airport isn't proceeding with major capital
projects so it is a quieter time. She agreed with Assemblywoman
Drummond that now is the time to address some of these
longstanding issues because they still exist. Responding to
further questions, she said it's too early to tell how things
will go with the new administration.
REPRESENTATIVE DOOGAN explained that he's trying to judge
whether things are getting better, are about the same, or are
getting worse since the airport administration changed.
3:11:11 PM
DAVID MCCARGO, representing himself, said he's had a lot of
interface with the airport in the 30 years he's lived in the
airport neighborhood. Today he is addressing the traffic issue.
It is just as important as noise. The traffic patterns on
International Boulevard have become a dangerous issue and from
his subdivision there is almost no safe egress. It's almost
impossible to find resolution on this type of issue.
Another issue that is rarely addressed is the pollution that
comes from the airport because it is basically exempt from the
Clean Air Act. It's well and fine that the airport is an
economic engine for Anchorage, but it won't do a lot of good if
people are dead because of increased air pollution, he said. He
showed a sample of a one-month accumulation of what he scraped
from his car windshield when it was parked near the airport.
Statistically this is meaningless, but this is what we, as
airport neighbors, face, he said.
3:16:16 PM
TYLER ROBINSON, Planning Department, Municipality of Anchorage,
said the municipality is currently undertaking the West
Anchorage District Plan to address long-standing issues. The
airport staff is participating and has been very accommodating.
The district plan will look at land-use issues and use FAA
planning materials to see how other jurisdictions deal with
airports that are in close proximity to residential and non
industrial areas. The idea is to find tools to use to allow
continued airport development and also respect and protect
neighborhoods. The municipality is aware of what's going on and
views itself as a partner with the community, the state, the
Legislature and the airport, he said.
REPRESENTATIVE DOOGAN asked the boundaries of the planning area.
MR. ROBINSON replied, "Roughly [it] goes down towards Diamond,
basically works its way back up Minnesota on the eastern
boundary, follows Spenard Road up to Chester Creek." The area is
fairly large and although the airport is a central focus of the
plan, other issues are at play as well.
3:19:04 PM
RUSS SINGLETON, representing himself, said he lives in the
Turnigan area and he wants to go on record supporting what the
Turnigan Council has said. Communication was extremely bad prior
to Ms. Klein's tenure. Noise has always been an issue and in the
past small plane traffic was not factored in. Those engines are
the very noisiest when they're climbing and it's deafening when
they fly over the house. The lack of communication has been most
annoying and if we can improve that perhaps we can find better
results, he said.
3:20:47 PM
LINDA SWISS, representing herself, said she lives off Raspberry
Road and is directly impacted by airport development. She became
concerned when she saw that the south airpark access road
development was moving forward without incorporating proper
public review. She noted that she has never received any
communication from the community council so there is obviously a
communication gap with the council itself. She mentioned the
discontinued master plan and said it doesn't make sense to
piecemeal airport development. She believes: the airport should
assess what will go into the airport inventory when Kulis Air
Force Base closes before proposing additional development; the
West Anchorage District Plan should be developed in concert with
the master plan, not separately; the south airpark access road
should be delayed until a better public process is defined and a
comprehensive development plan is written; and the community and
all user groups should be included in a meaningful way ensuring
that they receive correct and timely information.
CHAIR KOOKESH asked Ms. Klein to provide closing comments.
3:24:48 PM
MS. KLEIN thanked the committee for holding the meeting and for
inviting House members; it is much more efficient for her to
meet with both at the same time. She said she noticed that a lot
of the issues were about past projects. She appreciates the
comments and would note that public comments are important and
they sometimes have changed projects. Everyone might not get
what they want but the airport does at times try to find
compromise. "And we will hopefully do a better job of that in
the future." Environmental issues were raised and she wants to
remind everyone that the Anchorage airport has national
environmental and operational awards for being proactive in some
areas.
Finally, there might be some misunderstanding about the master
plan process and how it works. She explained that the 2002
master plan is the official FAA recognized and accepted
document. That is what the airport is using and will continue to
use until there is a new plan. She mentioned the forth runway
issue and said that was one of several alternatives under
consideration. That's what a master plan is about; it looks at
various alternatives as possibilities. "I don't want people to
lose perspective of that. It is off the table but I do want to
recognize that and that the master plan is the best place to get
those comments documented so we can look at changes that are
most compatible with our airport and community." We look forward
to that continuing dialog, she said.
SENATOR DAVIS asked if she intends to address the comments that
were made regarding small planes.
MS. KLEIN said Lake Hood and Lake Spenard are an important part
of the airport that doesn't really pay for itself or help the
larger operation. For that reason there are mixed feelings about
whether or not Lake Hood should even be at the airport. It's a
controversial issue for some administrations. Her view is that
it's an important part of the airport history and it's an
important tie to the rest of Alaska. We shouldn't forget about
it or send it to other parts of the state. We're trying to make
it work, but it's a challenge. Lake Spenard has homeowners and
there's a history of people walking around and using the lake
recreationally. "We're trying to also enable that to continue
rather than just fencing it off like Merrill Airfield and not
allowing the people to use it." We have to recognize that nobody
will be perfectly happy but we'll try to find middle ground.
That's what we've done for the last 22 months, she said.
SENATOR MEYER noted that passenger enplanements are down 4
percent for the year while tourism says business is down 20-30
percent. He asked if you could conclude from that that most of
the passengers are business or family travel rather than tourist
travel.
MS. KLEIN said not necessarily; Alaska probably hasn't seen the
decreases that other states have seen because of its dependence
on aircraft.
SENATOR MEYER asked if you could conclude that the 20-30 percent
drop in hotel business reflects a drop in cruise ship travel and
not so much a drop in air travel.
MS. KLEIN said the four percent drop is for FY09 and this is
FY10. Passenger enplanements have been down significantly the
last several months and have been linked to the drop in tourism.
SENATOR MENARD asked Ms. Klein to take a look at Point McKinsey.
It has the same capacity as the Denver airport at 16,000 feet.
MS. KLEIN said there are developers who are interested in that
and she is too; it would have a drastic affect on Anchorage.
REPRESENTATIVE GRUENBERG asked if Anchorage international
airport puts a head tax or fee on passengers.
MS. KLEIN replied there is a passenger facility charge at both
the Anchorage and Fairbanks airports. It's allowed through the
FAA and the airport is reimbursed.
REPRESENTATIVE GRUENBERG asked if it's a federal or state tax.
He added that his reason for asking is that the House judiciary
committee is currently looking at the constitutionality of the
state head tax on cruise line passengers.
MS. KLEIN deferred to Mr. Day.
3:34:44 PM
KEITH DAY, Controller, Alaska International Airport System,
Department of Transportation and Public Facilities (DOTPF), said
it's a federal law that allows the implementation of a per
passenger facility charge that is collected by the airlines when
a ticket is sold. It is neither a federal tax nor a true head
tax but it works as such.
REPRESENTATIVE GRUENBERG described it as a state tax that's
permissible under federal law.
MR. DAY replied he would not call it a state tax because it's
per airport. Within the system each airport submitted an
application to the FAA. Those applications are for specific
purposes and proceeds can only be used for the specific purposes
outlined in the application.
REPRESENTATIVE GRUENBERG called it a facility fee and asked how
much it is.
MR. DAY said the fee is $4.50 per passenger at Fairbanks and
$3.00 per passenger at Anchorage.
REPRESENTATIVE GRUENBERG asked if it applies separately for
enplaning and deplaning or just one or the other.
MR. DAY replied the charge is per leg with up to three legs in a
trip and it is collected at enplanement.
3:37:03 PM
REPRESENTATIVE GRUENBERG commented that a lot of the complaints
are the result of a lack of communication. He asked what she is
going to do about that.
MS. KLEIN mentioned the 67-70 meetings on the master plan and
said she would probably follow a similar process in the future.
She added that she recognizes that it might be helpful to let
people know how their input was used on projects. Getting back
to people on that would be a good place to start.
REPRESENTATIVE BUCH said it's not a matter of whether there has
been communication; it's a matter of the efficacy of the
communication that's at issue. It's a question of whether the
input will be taken into account and become part of a
development.
Responding to Senator Menard's request [to look at Point
McKinsey], he related that the 2002 master plan looked at moving
the airport across Cook Inlet. It didn't pencil out despite a
huge community wide effort. He then said that with respect to
the comments about aircraft flight patterns and noise, people
must keep in mind that it's the pilots at the international
airport who have the final say if they are given a choice on the
distance they will taxi and takeoff direction. The air traffic
controllers can make recommendations, but they can't insist.
3:43:10 PM
CHAIR KOOKESH thanked the participants and adjourned the Senate
Transportation Standing Committee meeting at 3:43 p.m.
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