Legislature(1999 - 2000)

01/31/2000 12:12 PM House ASC

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 JOINT ARMED SERVICES COMMITTEE                                                                               
                        January 31, 2000                                                                                        
                           12:12 p.m.                                                                                           
                                                                                                                                
SENATE MEMBERS PRESENT                                                                                                        
                                                                                                                                
Senator Tim Kelly, Co-Chair                                                                                                     
Senator Drue Pearce                                                                                                             
Senator Gary Wilken                                                                                                             
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                                                                                                        
                                                                                                                                
Dean Owen                                                                                                                       
Alan Walker                                                                                                                     
George Vakalis                                                                                                                  
Jake Lestenkoff (via teleconference)                                                                                            
John Hoyt (via teleconference)                                                                                                  
                                                                                                                                
OTHERS PRESENT                                                                                                                
                                                                                                                                
Senator Randy Phillips                                                                                                          
Representative Sharon Cissna                                                                                                    
Representative Alan Austerman                                                                                                   
                                                                                                                              
COMMITTEE AGENDA                                                                                                              
                                                                                                                                
Activities Report                                                                                                               
Military Issues Update                                                                                                          
Special Presentations:  Coast Guard Update, Adak Reuse Update                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Rear Admiral Thomas Barrett                                                                                                     
Commander 17th Coast Guard District                                                                                             
P.O. Box 25517                                                                                                                  
Juneau, AK  99802                                                                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
TAPE 00-01, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
CO-CHAIR  TIM KELLY  called  the  Joint Armed  Services  Committee                                                              
meeting to  order at  12:12 p.m.   Committee members  present were                                                              
Co-Chair  Tim Kelly,  Senator Drue  Pearce,  Senator Gary  Wilken,                                                              
Senator Loren  Leman, Co-Chair  Eldon Mulder, Representative  Lisa                                                              
Murkowski,  Representative  John   Harris,  and  Dean  Owen,  Alan                                                              
Walker,  and Colonel George  Vakalis and,  General Lestenkoff  and                                                              
General Hoyt via teleconference.                                                                                                
                                                                                                                                
INTRODUCTION OF MEMBERS AND GUESTS                                                                                            
                                                                                                                                
CO-CHAIR KELLY introduced  the following guests:   Phil Oates, the                                                              
Adjutant  General  of  the Department  of  Military  and  Veterans                                                              
Affairs;  Brigadier  General  George Cannelos,  Commander  of  the                                                              
Alaska Air National Guard; General  Westfall, the Commander of the                                                              
Alaska Defense Force; Rear Admiral  Barrett, Commander of the 17th                                                              
District Coast  Guard; Chris Gates  and Paul Romoff from  the Adak                                                              
Redevelopment  Authority; and  Major Brian  Piltery of the  Public                                                              
Affairs Office, US Army at Ft. Richardson.                                                                                      
                                                                                                                                
MAJOR HILFERTY introduced the members of his party.                                                                             
                                                                                                                                
CO-CHAIR KELLY introduced Janice  Neilsen, the legislative liaison                                                              
from  the  US  Army Pacific,  Rex  Blazer,  special  assistant  to                                                              
Governor Knowles,  and Mead Treadwell  (who was participating  via                                                              
teleconference).                                                                                                                
                                                                                                                                
REAR ADMIRAL BARRETT introduced Rob  Barker, Commanding Officer of                                                              
the Coast  Guard Cutter  "Melon," which  will be  en route  to the                                                              
Bering Sea soon.                                                                                                                
                                                                                                                                
PAT CARRUTHERS  of the Veterans  Advisory Group introduced  Judith                                                              
DeSpain, Robert  Cashen, Elmer Johnson, Gordon Severson  and Steve                                                              
Sweet.                                                                                                                          
                                                                                                                                
CO-CHAIR  KELLY acknowledged  the  presence of  former Senator  Ed                                                              
Willis and Laddie Shaw of the Department  of Military and Veterans                                                              
Affairs.                                                                                                                        
                                                                                                                                
APPROVAL OF MINUTES                                                                                                           
                                                                                                                                
CO-CHAIR  ELDON  MULDER  moved  to  approve  the  minutes  of  the                                                              
meetings held  on September 23 and  October 4, 1999.   There being                                                              
no objection, the minutes were approved.                                                                                        
                                                                                                                                
ACTIVITIES REPORT                                                                                                             
                                                                                                                                
CO-CHAIR TIM KELLY  asked Dean Owen to brief the  committee on the                                                              
Federal  Aviation  Administration  (FAA)  Conference  on  Military                                                              
Airport Joint Use.                                                                                                              
                                                                                                                                
MR.  DEAN OWEN  informed  committee  members that  a  copy of  his                                                              
report is  contained in committee  packets and made  the following                                                              
statements.                                                                                                                     
                                                                                                                                
The focus  of the  various discussions  at the  conference  was to                                                              
assist those  communities and  installations that were  confronted                                                              
with Base Realignment  and Closure (BRAC) action and  about how to                                                              
convert  airfields  to  joint  use   facilities.    Joint  use  of                                                              
airfields is a pertinent  issue for the State of  Alaska and it is                                                              
a course  of action with several  potential benefits for  both the                                                              
military  and  civilian  communities.   Joint  use  activities  at                                                              
airfields  offer additional  protection against  future BRACs  and                                                              
they provide  business opportunities  for the civilian  community.                                                              
Such activities might qualify an  airfield for funding through the                                                              
military airport  program and they  allow maintenance costs  to be                                                              
shared.                                                                                                                         
                                                                                                                                
Alaska  has three  army airfields  which are  good candidates  for                                                              
joint use activities:  Allen Army  Airfield at Ft. Greeley; Bryant                                                              
Army Airfield at  Ft. Richardson; and Wainwright  Army Airfield at                                                              
Ft. Wainwright.  Any proposals for  joint use must be initiated by                                                              
the civilian community.   If the proposal does  not interfere with                                                              
Air Force security  or the Air Force's mission,  the community may                                                              
enter into a long term agreement for joint use of the airfield.                                                                 
                                                                                                                                
MR.  OWEN stated  the Joint  Armed Services  Committee (JASC)  can                                                              
assist both  the military  and civilian  community in this  arena.                                                              
Representatives   from  Ft.   Greeley  and   Delta  attended   the                                                              
conference  and expressed  interest in  joint uses  at Allen  Army                                                              
Airfield.  He  noted that the remainder of the  information on the                                                              
conference is contained in his report.                                                                                          
                                                                                                                                
Number 130                                                                                                                      
                                                                                                                                
CO-CHAIR KELLY  noted the presence  of Representative Cissna.   He                                                              
asked Mead  Treadwell to speak to  the committee on  the Institute                                                              
of the North Conference.                                                                                                        
                                                                                                                                
MR.   MEAD  TREADWELL   thanked  committee   members  for   member                                                              
participation  in   the  November  conference  sponsored   by  the                                                              
Institute of  the North   on Missile Defense  in the Pacific.   He                                                              
reiterated for the committee the  following ideas that came out of                                                              
the conference.                                                                                                                 
                                                                                                                                
First, conference  participants reviewed  the threat of  a missile                                                              
attack.   Alaska and Hawaii  face more  of a threat  from missiles                                                              
being developed  by North Korea,  China, Russia,  India, Pakistan,                                                              
Iran, Iraq and other countries.   The threat exists to the rest of                                                              
the  nation  and its  allies  in  Europe  and Asia,  but  Alaska's                                                              
proximity  puts it  more  at risk.  Dr. Graham,  a  member of  the                                                              
Rumsfeld Commission, and Dr. Pfaltzgraff spoke to that threat.                                                                  
                                                                                                                                
The  second  issue  that  participants  focused on  was  the  U.S.                                                              
response  to that  threat.   Military officials  talked about  the                                                              
United State's  engagement in trade,  friendship and  diplomacy to                                                              
help build  trust in the  Pacific.  Last  week the U.S.  and China                                                              
agreed  to establish  a military-to-military  relationship  again.                                                              
Participants were  also briefed on the technology  being developed                                                              
in case  a breakdown in  trust or an  accident occurs.   Dr. David                                                              
Martin,  the head of  International Programs,  addressed  what the                                                              
Ballistic Missile Defense Office  is doing to develop the land and                                                              
sea  based  systems.   General  Yamaguchi,  the  Japanese  Defense                                                              
Attache, also participated.   Colonel Pete Worden  spoke about air                                                              
and  space based  systems and  theater  based systems.   Both  the                                                              
theater systems and  the land based systems are part  of a defense                                                              
system that will protect Alaska.                                                                                                
                                                                                                                                
Dr. Martin  and Secretary Cohen  said this morning  the deployment                                                              
decision  to be  made  this June  depends on  four  factors:   the                                                              
threat; technology; cost; and the  relationship to the ABM Treaty.                                                              
Secretary  Cohen  believes the  first  three factors  are  covered                                                              
despite the missile  test failure last week.  The  U.S. must still                                                              
work with  its allies and with  Russia for support of  this effort                                                              
so that it is not seen as counterproductive  to the Treaty.  Since                                                              
the conference,  Japan, Canada, France, China, Great  Britain, and                                                              
other  nations have  said they  hope the  U.S. does  not drop  the                                                              
Treaty which is of concern.                                                                                                     
                                                                                                                                
MR. TREADWELL  noted that during  the next few months,  Alaska may                                                              
be made  an offer that  it cannot refuse.   A treaty  revision may                                                              
allow  a land  based  system  to go  ahead  in Alaska,  but  limit                                                              
Alaska's  interceptors, limit  Alaska's  opportunity to  cooperate                                                              
with sea  based systems  and limit Alaska's  ability to  perfect a                                                              
system with  space based  radars.  He  advised the Legislature  to                                                              
keep an eye on this issue.                                                                                                      
                                                                                                                                
Participants discussed  the ABM Treaty  and how it does  not allow                                                              
ships,  radar and  planes  to coordinate  with  the theater  based                                                              
system.   They learned how  the Treaty  is not legally  binding on                                                              
the U.S. because it was signed with  a nation that is no longer in                                                              
exists.  The President has refused  to send the Treaty to Congress                                                              
for re-ratification.                                                                                                            
                                                                                                                                
The  State  Department says  the  treaty  negotiations  will be  a                                                              
piecemeal  process but,  given the  nation's  interest in  getting                                                              
this  started in  Alaska, it  may be  unwise to  let a  land-based                                                              
system  act  alone  to  defend  the U.S.    He  advised  that  the                                                              
Legislature watch the ongoing negotiations very carefully.                                                                      
                                                                                                                                
MR. TREADWELL  remarked that Alaska  should continue  its dialogue                                                              
with Western  states and  Japan, and  push not  only for  50 state                                                              
coverage, which the Alaska Legislature  was the first to call for,                                                              
but  also for  an integrated  system  with the  family of  missile                                                              
defense options.   Alaska  needs to watch  what is happening  with                                                              
theater-defense  options in  the  Pacific.   Taiwan is  requesting                                                              
that the U.S. buy Aegis cruisers.   Japan has named its developers                                                              
of the Japanese system.  The Legislature  needs to be aware that a                                                              
deployment  decision  may not  fit  national needs  if  it is  too                                                              
limited.    He  asked  legislators   to  review  the  State's  own                                                              
investments to see if and where they  may inadvertently be helping                                                              
proliferation.   Task forces  established in Colorado,  California                                                              
and Texas have reviewed their public pension funds.                                                                             
                                                                                                                                
CHAIRMAN  KELLY noted  that former  Governor Hickel  and his  wife                                                              
hosted a  conference on  the USS Missouri  on the last  evening of                                                              
the conference.                                                                                                                 
                                                                                                                                
Number 246                                                                                                                      
                                                                                                                                
GENERAL HOYT  made the following  comments about the  Symposium on                                                              
Space and Missile Defense put on  by the Association of the United                                                              
States  Army (AUSA).   The  U.S.  Army holds  these symposiums  to                                                              
provide an opportunity  for the nation's political,  military, and                                                              
industry leaders  to interface and  exchange information  on items                                                              
of mutual interest and concern.   The symposiums are public forums                                                              
open to  anyone willing  to pay  the admission  price.   About 425                                                              
people attended the  El Paso event including part  of the nation's                                                              
political leadership  and representatives of every  major industry                                                              
involved in the development of missile defense systems.                                                                         
                                                                                                                                
GENERAL HOYT highlighted  portions of his report as  follows.  Lt.                                                              
General Kent  Strube, Vice President  of Education of AUSA,  is an                                                              
extremely  strong supporter  of national  missile defense  and the                                                              
Alaska  Army  National  Guard's  participation  in  that  program.                                                              
General Strube  is a member of  the Joint Advisory Council  to the                                                              
Joint  Ballistic Missile  Defense  Office and  is  a supporter  of                                                              
Alaska on  this issue.  A  video presentation was given  about the                                                              
successes  evident  in the  missile  defense business  last  year.                                                              
Representative  John  Hostedtler   of  Indiana  talked  about  the                                                              
threat.  Polling  data collected from U.S. registered  voters show                                                              
that 86 percent  approve of the development and  deployment of the                                                              
national  missile  defense system.    There  is also  very  strong                                                              
congressional support for continuation of these systems.                                                                        
                                                                                                                                
GENERAL  HOYT  said  that  Lt.  General  George  McDonald,  Deputy                                                              
Commander  in  Chief  of  the  North  American  Aerospace  Defense                                                              
Command, presented  the Canadian  perspective on national  missile                                                              
defense.  As   of the first week of December,  no formal interface                                                              
between the U.S. and Canadian governments  concerning the national                                                              
missile defense  program occurred, therefore Canada  had developed                                                              
no position on that  issue.  It may or may not  participate in its                                                              
development and funding.   Canada does not understand  the concept                                                              
of national  missile defense and  questions whether such  a threat                                                              
to Canada  exists.   It is  more concerned  about weapons  of mass                                                              
destruction used by terrorists.   Canada opposes abrogation of the                                                              
current  ABM Treaty  and it  also opposes  the use  of weapons  in                                                              
space. The  intention of the  military and industry  leadership to                                                              
develop  space  based laser  systems  is  to destroy  missiles  on                                                              
launch as close  to enemy territory as possible.   The space-based                                                              
system would  be backed  up by a  ground-based interceptor  system                                                              
that is being  developed now.   He agreed with Mr.  Treadwell that                                                              
the U.S. has some political obstacles  to overcome among the world                                                              
leadership on these issues.                                                                                                     
                                                                                                                                
GENERAL HOYT pointed out that he  discussed with Mr. Josh Edwards,                                                              
Director  of  Business Development  for  Boeing,  the use  of  the                                                              
Kodiak missile  launch facility for  future testing.   He believes                                                              
the Alaska  Air and Army National  Guard will benefit, as  well as                                                              
all of  Alaska.   He concluded  there is  work to  be done  but he                                                              
believes Alaska  will see  success, to the  benefit of  Alaska and                                                              
the nation.                                                                                                                     
                                                                                                                                
CO-CHAIRMAN MULDER remarked that  participants at the Institute of                                                              
the North  Conference had  the opportunity  to visit with  General                                                              
Smith to  argue the  value of  Alaska's army  posts.  The  meeting                                                              
lasted about two hours and was very beneficial.                                                                                 
                                                                                                                                
Number 352                                                                                                                      
                                                                                                                                
SENATOR WILKEN  referred to  item 7  on the  last page of  General                                                              
Hoyt's  report, and  asked General  Hoyt to expand  on the  Kodiak                                                              
missile launch facility's use.                                                                                                  
                                                                                                                                
GENERAL  HOYT replied that  the missile  launch systems  currently                                                              
being  used  for the  launch  of  target  missiles and  launch  of                                                              
interceptor missiles  are pointed directly at each other.   If the                                                              
Kodiak system  is used to shoot  South, the intercept occurs  at a                                                              
different  angle  which  is  beneficial  from  the  standpoint  of                                                              
testing the  system.  He does  not know the technical  aspects but                                                              
he believes  it would be worthwhile  for the facility  managers to                                                              
be in contact with Boeing.                                                                                                      
                                                                                                                                
CO-CHAIRMAN  MULDER pointed out  that he  visited with  the Alaska                                                              
Aerospace Director,  Pat Ladner,  about the  ability of  Boeing to                                                              
use  Kodiak,  instead  of  Kwajalein Atoll,  in  relation  to  the                                                              
missile  testing.    As  General  Hoyt pointed  out,  it  is  more                                                              
technically  difficult to  shoot from  Kodiak than  to shoot  from                                                              
Vandenburg Air  Force Base in California.   A Kodiak  launch would                                                              
reflect a  more real life scenario  which makes it  more valuable.                                                              
Another strategic value to Kodiak  is that all three phases of the                                                              
rocket could  be fired from there  while only two can be  fired at                                                              
Kwajalein because of the red zone.                                                                                              
                                                                                                                                
CO-CHAIRMAN KELLY acknowledged the presence of Senator Phillips.                                                                
                                                                                                                                
CO-CHAIR KELLY  asked Colonel Vakalis to update  committee members                                                              
on the NAID Conference.                                                                                                         
                                                                                                                                
COLONEL  GEORGE VAKALIS  informed committee  members the  National                                                              
Association  of  Installation  Developers'  (NAID)  Conference  on                                                              
Military  Base  Privatization  occurred   during  the  past  week.                                                              
Several issues of interest to Alaskans were discussed.                                                                          
                                                                                                                                
First, NAID  was formed  in response  to the  last BRAC  rounds to                                                              
assist communities that would be  taking over bases being vacated.                                                              
The initial composition of NAID included  realtors, industrial and                                                              
residential contractors, and bankers.    NAID's focus has recently                                                              
changed as no  BRAC rounds have occurred for several  years.  Most                                                              
of the  changes to  the bases have  already occurred  or are  in a                                                              
holding pattern because of problems, i.e. environmental cleanup.                                                                
                                                                                                                                
NAID's new  focus is to  look at what can  be done to  make posts,                                                              
camps,  and stations  throughout the  United States  "BRAC-proof."                                                              
To do that,  NAID is looking at  ways to make existing  posts more                                                              
cost  effective:   privatization,  outsourcing,  or   staying  the                                                              
course.   In some cases it  is more advantageous to  privatize the                                                              
utility functions  of the  bases while in  other cases it  is more                                                              
advantageous to outsource  them.  In other cases  it is more cost-                                                              
effective  to stay  the course.   The  same case  applies to  real                                                              
estate.   In  many  cases, especially  in  Alaska, downsizing  has                                                              
created an excess of acreage, administrative  facilities, housing,                                                              
and warehousing.   One way to make the bases cost  effective is to                                                              
lease the excess  space available.  Bases are  being encouraged by                                                              
the  Department  of   Defense  to  take  that   initiative.    Ft.                                                              
Richardson  has  an  excess  of   warehouse    and  administrative                                                              
building  space  and, in  the  Anchorage  bowl  area, there  is  a                                                              
shortage of warehouse  space.  The military calculates  base costs                                                              
by dividing the amount of square  footage and acreage available by                                                              
the number of soldiers.  Alaska's  bases have the highest cost per                                                              
soldier.                                                                                                                        
                                                                                                                                
NAID is  looking into a  second mechanism that  may be used  on an                                                              
experimental basis in San Antonio,  Texas.  Either the entire base                                                              
will be  conveyed to  the local  community and  the military  will                                                              
lease back  those facilities it  needs, or operational  agreements                                                              
with local governments  for maintenance of the  infrastructure and                                                              
roads will be entered into.  If either  arrangement proves to be a                                                              
success, it  will reduce  the costs for  the military unit  and it                                                              
will  give the  local government  or  other entity  the option  to                                                              
lease out the unused facilities or acreage.                                                                                     
                                                                                                                                
One  challenge  faced  by  Alaska  is the  cost  of  base  utility                                                              
systems.    Water  and  sewage  operations   are  not  a  problem.                                                              
Electricity  and   heat  are  problematic  because   all  electric                                                              
generating  plants on the  bases are  coal generation plants  that                                                              
produce both electricity and steam  heat for all facilities on the                                                              
post.   The power plants  and conduits  are in poor  condition and                                                              
not cost  effective.  It  will be difficult  to get any  entity to                                                              
take over that operation.                                                                                                       
                                                                                                                                
COLONEL  VAKALIS said  the more  active  a military  base is  with                                                              
local communities.  State and other  federal agencies, in the form                                                              
of  joint uses,  the  more  protected  that installation  is  from                                                              
closure.   He also  pointed out  that the  Assistant Secretary  of                                                              
Defense  attended   the  conference   and  made  clear   that  the                                                              
Department of Defense  (DOD) is very serious about  getting out of                                                              
the  utility  business,   and  on  getting  returns   from  unused                                                              
facilities and  acreage.  Colonel  Vakalis warned  that facilities                                                              
that are  not leased out  could be torn  down.  Participants  were                                                              
also informed  that the Department  of Defense does not  intend to                                                              
do a BRAC  round in 2001 but it  is pushing for BRACs  in 2003 and                                                              
2005.  DOD  is waiting for a  change in the Administration  and is                                                              
devising  more  appropriate  criteria  to  use in  the  next  BRAC                                                              
rounds.                                                                                                                         
                                                                                                                                
Number 520                                                                                                                      
                                                                                                                                
MR. WALKER  said that during the  tour of Ft.  Richardson, members                                                              
saw   a   refrigerator   warehouse   in   outstanding   condition.                                                              
Discussion  ensued about  the  dearth of  available  refrigeration                                                              
storage space  in the Anchorage basin  yet that building  has been                                                              
destroyed.   He referred  to a usage  agreement for the  land that                                                              
precludes the Army  from leasing out excess land  to commercial or                                                              
local government  entities and  he asked if  that is an  issue the                                                              
legislature needs to  address.  He noted it is  ironic that Alaska                                                              
is  worried about  losing bases  but it  is hamstrung  to use  the                                                              
facilities.                                                                                                                     
                                                                                                                                
COLONEL VAKALIS  replied there are  two answers to  that question.                                                              
First, the agreement  Mr. Walker referred to is called  NALA - the                                                              
North  Anchorage  Land  Agreement.     That  agreement  came  into                                                              
existence  as the  result of  over  filings by  the State,  Native                                                              
organizations,  and the  Municipality of  Anchorage (MOA)  for the                                                              
lands associated  with Ft.  Richardson and  part of Elmendorf  Air                                                              
Force Base  if those posts  were declared  excess to the  needs of                                                              
the  military. To  preclude a  legal  battle if  those posts  were                                                              
declared excess to  the military's need, the U.S.  Government said                                                              
if all three  parties can devise  an agreement for the  land prior                                                              
to the closure  of those posts,  the Army will transfer  the lands                                                              
at that  point in  time.   The agreement  divides the lands  three                                                              
ways:  the  MOA gets  a  certain  amount  for specific  uses;  the                                                              
Eklutna Corporation  gets a certain  amount; and the State  gets a                                                              
large amount of acreage.                                                                                                        
                                                                                                                                
The agreement says that the State  will take an identified portion                                                              
and the  excess will be either  jointly managed or  jointly agreed                                                              
upon by the MOA and Eklutna.  The  problem is, as of this point in                                                              
time, that  has not been  determined.  The  Army does not  need to                                                              
declare that property  as excess to its needs.  It  can say it has                                                              
excess  capacity  and, in  that  case, if  it  needs  to use  that                                                              
property  in the  future, the  property  will revert  back to  the                                                              
military.   Unless the Army declares  that property excess  to its                                                              
needs,  it can  still lease  it out.    If the  military leases  a                                                              
warehouse,  the money goes  back into  military operations  so the                                                              
warehouse  is not considered  excess  to its needs  because  it is                                                              
revenue generating.                                                                                                             
                                                                                                                                
COLONEL  VAKALIS said  the second  aspect of  that arrangement  is                                                              
that a law on the books prohibit  the military from competing with                                                              
private enterprise.   To  get around that,  three factors  must be                                                              
considered.   One factor  is that the  local government  concur in                                                              
the use  of land  or a  particular facility  to compete.   If  the                                                              
local government has  no concerns, then fair market  value must be                                                              
determined and charged.  Third, the  use should be endorsed by the                                                              
local Chamber of Commerce.                                                                                                      
                                                                                                                                
SENATOR PHILLIPS  asked whether 50  acres is available for  a high                                                              
school and whether such a facility would fit the criteria.                                                                      
                                                                                                                                
Number 585                                                                                                                      
                                                                                                                                
COLONEL VAKALIS replied  that one thing that makes  Ft. Richardson                                                              
valuable is  its training area so  50 acres could  be problematic.                                                              
Ft. Richardson intends  to hold on to as much  acreage as possible                                                              
to encourage other units to train there.                                                                                        
                                                                                                                                
TAPE 00-01, SIDE B                                                                                                            
Number 600                                                                                                                      
                                                                                                                                
REPRESENTATIVE MURKOWSKI referred  to a letter from the Chamber of                                                              
Commerce.   It's military affairs  committee has  recommended that                                                              
Alaska look  to hire a firm to  study the situation in  Alaska and                                                              
recommend how  Alaska can  become BRAC-proof.   She asked  Colonel                                                              
Vakalis his opinion of that approach.                                                                                           
                                                                                                                                
COLONEL VAKALIS said he participated  in writing that letter which                                                              
was a response  to a speech that Senator Stevens  made in December                                                              
of 1999.   Senator Stevens spoke  about a BRAC round in  2001, and                                                              
he mentioned that  Ft. Richardson and Eielsen Air  Force Base were                                                              
very vulnerable.  As a result of  those statements, it appeared to                                                              
the Chamber  that an assessment was  necessary.  The  necessity is                                                              
still there  but the  urgency is not.   He pointed  out that  if a                                                              
BRAC round  occurs in 2003, the  fact gathering will  occur before                                                              
that year.                                                                                                                      
                                                                                                                                
CO-CHAIRMAN KELLY announced that  Representative Therriault joined                                                              
the  committee.    He  then  asked  Chris  Nelson  to  update  the                                                              
committee on military issues.                                                                                                   
                                                                                                                                
Number 569                                                                                                                      
                                                                                                                                
CHRIS  NELSON,  staff director  to  the JASC,  informed  committee                                                              
members  that  the JASC  is  required  by  statute to  report  its                                                              
activities to the Legislature at  the beginning of the session.  A                                                              
copy of  the activities report from  July 1, 1999  through January                                                              
10, 2000  is included in  committee members'  packets.  A  few key                                                              
issues  are facing  committee  members.   First,  in  the area  of                                                              
national missile  defense, the  decision on  whether and  where to                                                              
build  the system  is  still on  the calendar  for  June of  2000.                                                              
Alaska wants  the system built, and  it wants the system  built in                                                              
Alaska.   Crucial  to  those goals  are the  flight  tests of  the                                                              
various technological  elements of the  system.  The  first flight                                                              
in October,  the test of the  exo-atmospheric kill vehicle,  was a                                                              
success.  The second flight in early  January failed to achieve an                                                              
intercept.  That test was complicated  and, although the intercept                                                              
failed, the  other parts of the  test worked very well  and proved                                                              
that  the architecture  of the  system  was valid.   The  military                                                              
believes  the intercept  was not  achieved because  of two  failed                                                              
heat sensors.  A third flight test is scheduled in April.                                                                       
                                                                                                                                
Alaska has a lot riding on the third  test.  The JASC has held the                                                              
position that more  tests should be conducted but  it does not see                                                              
a good  reason to postpone the  deployment readiness review.   The                                                              
JASC  wants a decision  to  be made in  June so  that the  bidding                                                              
process can  begin in  July and August,  and the construction  can                                                              
begin the following summer.                                                                                                     
                                                                                                                                
MR.  NELSON  noted he  has  been  in  contact  with staff  at  the                                                              
national missile defense  office, and has indicated  that the JASC                                                              
would enjoy  having the opportunity  to host Major  General Nance,                                                              
the  Commander  of  the  National Missile  Defense  office.    The                                                              
attendance of  Dr. Pellier, Vice  President of Boeing,  would also                                                              
be extremely helpful.   General Nance may be available  during the                                                              
week of April  3rd.  He asked the committee's  permission to issue                                                              
a formal invitation  to General Nance to visit  Alaska during that                                                              
week.                                                                                                                           
                                                                                                                                
CO-CHAIRMAN   KELLY  asked   if  there   was  objection   to  that                                                              
invitation.   There being  no objection,  Co-Chairman Kelly  asked                                                              
Mr. Nelson to proceed.                                                                                                          
                                                                                                                                
Number 524                                                                                                                      
                                                                                                                                
MR. NELSON informed committee members  that although the next BRAC                                                              
round has been scheduled in 2003,  the issue is still on the table                                                              
and DOD  is looking hard  for ways to  shed itself of  excess base                                                              
structure.  The JASC's argument that  new evaluation criteria must                                                              
be  used in  any future  BRAC  rounds has  been  successful.   The                                                              
committee has argued  that the new criteria view  and weight joint                                                              
activities.   Leon Panetta  was the featured  speaker at  the NAID                                                              
conference  in Jacksonville,  Florida  last summer.   Mr.  Panetta                                                              
described what  people expected  from BRAC and  what they got.   A                                                              
study of base  reuse found that only one-fifth of  bases closed in                                                              
the  first  three BRAC  rounds  had  regained  the same  level  of                                                              
employment in civilian reuse as that prior to closure.                                                                          
                                                                                                                                
MR. NELSON  suggested the  JASC's number one  priority must  be to                                                              
continue to monitor ballistic missile  defense.  BRAC must also be                                                              
monitored.                                                                                                                      
                                                                                                                                
SENATOR PEARCE  commented that Senator Murkowski  pointed out that                                                              
some  military facilities  are more  cost effective  to keep  open                                                              
than  to close  due to  the cost  of environmental  cleanup.   She                                                              
asked whether  that  will work for  or against  Alaska in  another                                                              
BRAC round.                                                                                                                     
                                                                                                                                
MR.  NELSON  said  that  along with  changes  to  BRAC  evaluation                                                              
criteria,  another  analytical  tool,  the COBRA  model,  must  be                                                              
changed.    COBRA   is  a  military  acronym  for   Cost  of  Base                                                              
Realignment Action.   That model was developed in  1988 to compute                                                              
a  break  even  point but  no  environmental  cleanup  costs  were                                                              
factored into it  at all.  If a 2003 BRAC round  is authorized, in                                                              
addition  to Alaska's  efforts  to  ensure that  joint  evaluation                                                              
criteria are  used, it must  also insist  that the COBRA  model be                                                              
modified  to include the  costs of  environmental cleanup  because                                                              
those costs  are enormous  in virtually every  base that  has been                                                              
closed.   The DOD  does not bear  those costs;  many of  the bases                                                              
become Superfund sites.                                                                                                         
                                                                                                                                
CO-CHAIRMAN KELLY  asked Mr. Nelson  to work with  Colonel Vakalis                                                              
and  the Anchorage  Chamber  of  Commerce  on the  possibility  of                                                              
hiring a consultant.                                                                                                            
                                                                                                                                
MR. NELSON agreed.                                                                                                              
                                                                                                                                
Number 448                                                                                                                      
                                                                                                                                
SENATOR  WILKEN  informed  committee  members that  last  March  a                                                              
number  of legislators  were invited  to visit  the Northern  Edge                                                              
Training Site.   Legislators returned with an  appreciation of the                                                              
military's role in  Alaska and the role of Alaska  in the military                                                              
strategy.  On the return trip, participants  discussed the need to                                                              
inform other  legislators about that  relationship.  To  that end,                                                              
they  decided  to   establish  a  "Northern  Edge   Day"  so  that                                                              
legislators could  visit that  site on one  day each session.   He                                                              
asked  committee   members  to  recommend   that  action   to  the                                                              
Legislative Council and legislative leadership.                                                                                 
                                                                                                                                
CO-CHAIRMAN KELLY asked Mr. Nelson  to work with Senator Wilken on                                                              
that issue.                                                                                                                     
                                                                                                                                
Number 527                                                                                                                      
                                                                                                                                
REPRESENTATIVE MURKOWSKI  noted that Mr. Treadwell  indicated that                                                              
he was willing  to work on  a resolution regarding the  ABM Treaty                                                              
and  how it  will  or will  not  affect Alaska.    She asked  JASC                                                              
members to work with her on such a resolution.                                                                                  
                                                                                                                                
SENATOR  LEMAN  noted the  JASC  report  mentions the  ARRC  track                                                              
realignment to Ft. Richardson.  He  felt the report should reflect                                                              
that he  and Representative Murkowski  are working with  the ARRC,                                                              
the Air Force  and the Army  on legislation to be  introduced this                                                              
week regarding that land exchange.                                                                                              
                                                                                                                                
MR. NELSON  pointed out  that Senator Leman  will also  be meeting                                                              
with  officials to talk about the smoke issue.                                                                                  
                                                                                                                                
CO-CHAIRMAN  KELLY  asked  Rear  Admiral  Barrett  to  update  the                                                              
committee on Coast Guard issues.                                                                                                
                                                                                                                                
Number 411                                                                                                                      
                                                                                                                                
REAR ADMIRAL BARRETT  gave the following briefing  to legislators.                                                              
Coast Guard  activities in  Alaska are quiet  today but,  even so,                                                              
three cutters  are out  patrolling and air  stations in  Sitka and                                                              
Kodiak will  be running fisheries  patrols in their areas.   Also,                                                              
the Cutter Melon  is in Juneau and is en route  to the Bering Sea.                                                              
Marine  inspectors are  in Dutch  Harbor and  Nikiski checking  on                                                              
commercial vessel shipping.  Aside  from 2000 active duty members,                                                              
the Coast Guard  also has about 400 auxiliary members  and over 50                                                              
reservists.   The Coast  Guard puts  about $200  million into  the                                                              
Alaska economy  each year  in both salaries  and purchases.   That                                                              
amount does  not include  the cutters that  come from  other areas                                                              
and  patrol  in Alaska.    The  Coast  Guard  is located  in  many                                                              
locations in  Alaska in  relatively small size.   The  Coast Guard                                                              
operates:  buoy   tenders;  coastal   patrol  boats;   small  boat                                                              
stations; marine safety offices in  Anchorage, Valdez, and Juneau;                                                              
air stations  at Kodiak and Sitka;  support centers in  Kodiak and                                                              
Ketchikan; and loran stations scattered around the State.                                                                       
                                                                                                                                
Alaska is a maritime state with a  huge coastline and a tremendous                                                              
amount  of activity  along  that coastline.    The major  economic                                                              
drivers  in the  State  include the  oil  industry, fisheries  and                                                              
tourism - industries that move on  the water.  Over 14,000 vessels                                                              
are involved in  commercial fishing in Alaska.   Passenger vessels                                                              
in the 100 to  200 passenger size are moving further  off the main                                                              
waterways.                                                                                                                      
                                                                                                                                
The Coast Guard's primary focus is  maritime safety which includes                                                              
search and rescue.  Last year the  Coast Guard responded to almost                                                              
1000 rescues and  directly participated in saving 255  lives.  The                                                              
Coast Guard  has made a practice  of deploying helicopters  to St.                                                              
Paul and Cold Bay  during the winter months and keeps  a cutter on                                                              
patrol  in the  Bering  Sea during  the  worst  weather to  reduce                                                              
fatalities.   The number  of deaths in  the fishing industry  last                                                              
year was  about 19.  Overall,  the number of deaths  has decreased                                                              
over the years although the factors  for that decrease are hard to                                                              
segregate.    Fishing is  a  dangerous  occupation.   Coast  Guard                                                              
efforts to  minimize losses include  more exams at the  dock, more                                                              
boardings at sea, and a focus on  whether boats are ready to go to                                                              
sea in this environment.                                                                                                        
                                                                                                                                
REAR ADMIRAL  BARRETT informed  JASC members  that over  2 million                                                              
passengers move  through Alaska on  passenger vessels.   Last year                                                              
four  vessels  were  grounded.    The  Coast  Guard  has  a  small                                                              
passenger  vessel task  force working  with the  industry to  make                                                              
that industry  safer.   Similarly,  the Coast  Guard is trying  to                                                              
work with  the small charter boat  industry to increase  the level                                                              
of safety on a  voluntary basis.  The Coast Guard  endorses a five                                                              
star  safety program.    If a  boat  meets five  requirements  for                                                              
safety measures  such as  backup communications,  the Coast  Guard                                                              
will endorse  it as being  a safe operation.   The Coast  Guard is                                                              
also  concerned about  non-commercial  boating  fatalities in  the                                                              
State -  29 occurred  last year.   Alaska  has the worst  fatality                                                              
rate in the nation.  The Coast Guard  is working with the state to                                                              
improve outreach and education.                                                                                                 
                                                                                                                                
REAR ADMIRAL BARRETT  said the second major mission  beyond safety                                                              
is protection  of natural resources.   Living marine  resources is                                                              
the  most time  consuming.   The  Coast  Guard  partners with  the                                                              
National  Marine  Fisheries  Service,  the  Alaska  Department  of                                                              
Environmental  Conservation,  Board  of  Fish,  and  the  National                                                              
Oceanic and  Atmospheric Administration  to protect  the fisheries                                                              
for the  future.  A  big issue is  the high seas  driftnet fishery                                                              
which  occurs in  the  Bering Sea.    Right now  there  is a  U.S.                                                              
moratorium on high  seas driftnet fisheries.  Last  year the Coast                                                              
Guard  cited 10  vessels   about  1500 miles  West  of Kodiak  for                                                              
violating the moratorium.  Three of the vessels were seized.                                                                    
                                                                                                                                
The Coast  Guard patrols  the maritime  boundary  with Russia.   A                                                              
large multi-national  fleet  targets pollack  in the Russian  EEZ.                                                              
Poor catch  rates on the Russian  side cause Russian  fishermen to                                                              
push the U.S.  boundary creating both a fisheries  and sovereignty                                                              
issue  for  the  U.S.    The  Coast  Guard  patrols  this  mission                                                              
regularly with its largest aircraft and cutters.                                                                                
                                                                                                                                
REAR ADMIRAL  BARRETT noted  the maritime  boundary in  the Bering                                                              
Sea has been  ratified by the U.S.  Senate but not by  the Russian                                                              
Duma.  The catch rates on the Russian  side are about one-tenth of                                                              
the rates in the  U.S. EEZ which is one reason  the pressure along                                                              
the boundary is high.                                                                                                           
                                                                                                                                
The Coast Guard also enforces domestic  fisheries laws to keep the                                                              
playing field  level for U.S. fishermen.   Alaska has  the largest                                                              
IFQ  fishery in  the world  and over  200 time,  area and  species                                                              
openings.  The Coast Guard is increasing  surveillance on sea lion                                                              
rookeries.  It is also taking a hard  look at the impact of cruise                                                              
ships in  terms of  sewage, garbage,  oil and chemical  discharge.                                                              
The Coast Guard enforces U.S. and  current international pollution                                                              
laws; the  legislature needs  to consider  whether what  the Coast                                                              
Guard is  doing is adequate.   Valdez is closely monitored,  as is                                                              
Cook Inlet,  particularly in winter  months when  ice restrictions                                                              
have to be imposed.                                                                                                             
                                                                                                                                
Alaska waterways are  a major highway.  The Coast  Guard maintains                                                              
about 1300  buoys and other  navigation aids.   Over the  next few                                                              
years, the Coast  Guard will be replacing the 180  foot cutters it                                                              
has in  Kodiak, Homer,  Cordova and Sitka  with 225 foot  cutters.                                                              
The Homer pier will not accommodate the larger ship.                                                                            
                                                                                                                                
The  Coast  Guard's   portion  of  Northern  Edge   is  the  naval                                                              
component.  Over 1,000 naval exercise  participants will visit and                                                              
contribute  about $700,000  to  the local  economy  of Sitka  this                                                              
year.                                                                                                                           
                                                                                                                                
REAR  ADMIRAL BARRETT  commended  Alaska's  military services  for                                                              
doing a lot  of preventive work to  make sure that Y2K  was a non-                                                              
event.   He noted that  the Coast Guard is  a little more  "on the                                                              
edge"  than  he  would  like  it  to  be  because  of  maintenance                                                              
accounts, spare parts shortages, and people shortages.                                                                          
                                                                                                                                
REAR  ADMIRAL BARRETT  invited committee  members  to visit  Coast                                                              
Guard facilities in Alaska.                                                                                                     
                                                                                                                                
Number 170                                                                                                                      
                                                                                                                                
CO-CHAIRMAN KELLY  told Rear Admiral  Barrett the  committee plans                                                              
to visit Kodiak in the near future.                                                                                             
                                                                                                                                
SENATOR  PHILLIPS  asked if  the  29  lives  were lost  in  inland                                                              
waters.                                                                                                                         
                                                                                                                                
REAR ADMIRAL BARRETT said that number was statewide.                                                                            
                                                                                                                                
MR. WALKER  pointed out that Rear  Admiral Barrett wears  a second                                                              
hat as the  Maritime Defense Commander and therefore  overseas the                                                              
Navy  component in  Alaska.   He  asked  Rear  Admiral Barrett  to                                                              
address that relationship and the  interaction with Alaska command                                                              
and how that relates to BRAC.                                                                                                   
                                                                                                                                
REAR ADMIRAL BARRETT  explained he has two bosses  - he answers to                                                              
the  Commandant of  the Coast  Guard and  to General  Case as  the                                                              
Naval  Component  Commander for  Alaska.    In terms  of  impacts,                                                              
whatever the other services do impacts  the Coast Guard.  The fact                                                              
that  Adak is  transitioning  out  of a  naval  facility and  into                                                              
another type of activity impacts  the Coast Guard. The Coast Guard                                                              
uses Attu as  a refueling spot and, to the extent  that commercial                                                              
fishing  activity occurs  in that  area, the Coast  Guard will  be                                                              
impacted.  He  pointed out if Coast Guard C-130s  cannot be staged                                                              
out of Galena,  and they must  be flown from Kodiak  or Anchorage,                                                              
the operating  hours on the  maritime boundary drop  dramatically.                                                              
All of  the BRAC  issues have  multiple consequences  in terms  of                                                              
mission, growth, or the types of missions flown everyday.                                                                       
                                                                                                                                
Number 120                                                                                                                      
                                                                                                                                
MR. WALKER  said he hopes  that in the  discussions about  the re-                                                              
evaluation of criteria  for future BRACs, that the  JASC get input                                                              
on  the criteria  from the  Coast Guard.   The  BRAC personnel  in                                                              
Washington, D.C. have  no concept of the fact that  the West Coast                                                              
is closer  to Washington,  D.C. than  Juneau is  to many  parts of                                                              
Alaska.                                                                                                                         
                                                                                                                                
CO-CHAIRMAN KELLY  agreed that is another strong  reason to retain                                                              
Alaska bases.                                                                                                                   
                                                                                                                                
SENATOR PEARCE  asked whether  the Coast  Guard has any  authority                                                              
over  all  of   the  passenger  ships,  including   cruise  ships,                                                              
regarding open bridge policies.                                                                                                 
                                                                                                                                
REAR  ADMIRAL BARRETT  replied the  Coast Guard  has authority  to                                                              
impose restrictions that are geographic  based so it could not set                                                              
a  policy on  a general  basis, but  in  a particularly  difficult                                                              
operating  area, the  Coast Guard  could  come at  it through  the                                                              
captain of the Port Authority in particular areas.                                                                              
                                                                                                                                
SENATOR PEARCE asked  whether that came up as an  issue during the                                                              
small  passenger vessel discussion.                                                                                             
                                                                                                                                
REAR ADMIRAL  BARRETT said it  did and it  was considered to  be a                                                              
distraction.                                                                                                                    
                                                                                                                                
SENATOR PEARCE  said she has heard  some horror stories  about the                                                              
larger ships and  she thought the problem would  be intensified on                                                              
the smaller ships.                                                                                                              
                                                                                                                                
REAR ADMIRAL BARRETT agreed.                                                                                                    
                                                                                                                                
CO-CHAIRMAN  MULDER   indicated  that  during  testimony   by  the                                                              
Commissioner  of  the  Department  of  Environmental  Conservation                                                              
(DEC) in the  House Finance Committee, the Commissioner  said that                                                              
the Coast  Guard has  oversight of  oil discharge  in Alaska.   He                                                              
asked whether there  is any desire on the part of  the Coast Guard                                                              
to transfer that responsibility to DEC.                                                                                         
                                                                                                                                
REAR ADMIRAL  BARRETT said there  is not.   He noted that  most of                                                              
the large cruise  ships are foreign vessels and  the standards for                                                              
oil  discharge  must  meet  international  standards.    Regarding                                                              
sewage discharge standards, there  is no equivalent to the federal                                                              
Water  Pollution  Control  Act  with   respect  to  oil  discharge                                                              
standards.                                                                                                                      
                                                                                                                                
CO-CHAIRMAN  KELLY  acknowledged  the presence  of  Representative                                                              
Austerman.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  HARRIS thanked  the Coast  Guard for  the work  it                                                              
provides in  Cordova and Valdez.   He pointed out that  many Coast                                                              
Guard  retirees  remain  in Alaska  and  participate  in  Alaska's                                                              
businesses.                                                                                                                     
                                                                                                                                
CO-CHAIRMAN   KELLY  thanked   Rear   Admiral   Barrett  for   his                                                              
presentation.   He noted  the JASC will  hold its next  meeting in                                                              
Anchorage in  June.   He anticipates  that committee members  will                                                              
visit  the  Army  Corps  of Engineers  and  the  new  hospital  at                                                              
Elmendorf Air  Force Base.   In addition,  the committee  hopes to                                                              
visit Kodiak and Ft. Wainwright sometime this year.                                                                             
                                                                                                                                
SENATOR WILKEN  suggested that members  send their  June schedules                                                              
to Mr.  Nelson so that  he can arrange  a meeting on  a compatible                                                              
date.                                                                                                                           
                                                                                                                                
CO-CHAIR  KELLY  announced  the  last  presentation  is  from  Eli                                                              
Gromoff and Chris Gates of the Adak Redevelopment Authority.                                                                    
                                                                                                                                
TAPE 00-02, SIDE A                                                                                                            
Number 000                                                                                                                      
                                                                                                                              
MR.  GATES   introduced  Mr.  Eli   Gromoff,  CEO  of   the  Aleut                                                              
Corporation,  and said  that  Adak will  be  transferred from  the                                                              
Department of Defense and Department  of the Interior to the Aleut                                                              
Corporation.                                                                                                                    
                                                                                                                                
MR. GROMOFF made the following comments  on the transfer agreement                                                              
to move the property  over to the Aleut Corporation  which will be                                                              
ratified by legislation.  Ownership  of the infrastructure on Adak                                                              
that  was  produced  by  the  Navy  will  be  transferred  to  the                                                              
Department  of  the  Interior  plus  46,000  ANCSA  acres  on  the                                                              
Shumagin Islands  and Adak  Island.  The  unique thing  about this                                                              
transfer is  that the  Aleut Corporation  is starting a  community                                                              
from scratch.   The Aleut Corporation  is looking to  finalize the                                                              
agreement by March.                                                                                                             
                                                                                                                                
Some environmental issues need to  be addressed, specifically with                                                              
the Navy.   The Aleut  Corporation does  not want any  liabilities                                                              
that are  involved with  environmental issues;  the main  issue is                                                              
non-exploded  ordinance   left  there   from  WWII.     The  Aleut                                                              
Corporation  is working  closely with  the EPA  to eliminate  that                                                              
liability, and  it hopes  to use the  same criteria to  remove any                                                              
other non-exploded ordinances  left in its region from  WWII.  The                                                              
Aleut Corporation  owns a  lot of land  on other islands  that are                                                              
contaminated  with   non-exploded  ordinances  also.     Once  the                                                              
environmental issues are cleared  up with the Navy, the transition                                                              
is very close to being finished.                                                                                                
                                                                                                                                
Legislation will  be addressed by  Congress this year.   Hopefully                                                              
it will be signed by Congress in  November and by the President in                                                              
January.   In the interim,  the Aleut  Corporation will  take full                                                              
control of Adak and it is trying  to make an early transfer of the                                                              
property.   The Aleut Corporation  will negotiate a lump  sum with                                                              
the DOD  to perform the  cleanup in Adak.   The Aleut  Corporation                                                              
can accept contaminated lands because  the corporation was able to                                                              
obtain  environmental insurance  as  a result  of the  BRAC.   The                                                              
Aleut Corporation  will keep  the legislature  updated on  how the                                                              
transfer is going.                                                                                                              
                                                                                                                                
Number 095                                                                                                                      
                                                                                                                                
MR. GATES  stated that  for four years  the Aleut Corporation  has                                                              
been dealing with  Navy officers and the DOD on  issues concerning                                                              
personal  property,   pilferage,  use   of  facilities   prior  to                                                              
transfer, asbestos,  and lead based paint.  The  Aleut Corporation                                                              
has leased  the facilities on Adak  from the Navy to work  out all                                                              
the issues and about  300 people work there now.   There is a huge                                                              
sense  of community  there.   The  Aleut  Corporation  has had  to                                                              
conduct  two full  petitions with  the  Local Boundary  Commission                                                              
because  the second  class  city formation  process  is too  slow.                                                              
Most local  reuse authorities  across the  country are  asset rich                                                              
and cash poor.   In any BRAC closure the federal  government holds                                                              
most of the cards and they play tough.                                                                                          
                                                                                                                                
Adak has  the second largest  school in  the Aleutian Chain  and a                                                              
seafood processing  business is on  track about five  years before                                                              
the  State's consultants  said it  would be  up and  running.   It                                                              
expects  8.5 million  pounds of seafood  this  coming year.   Last                                                              
year it  produced over $200,000 dollars  in fish tax  revenue that                                                              
was paid to the State.                                                                                                          
                                                                                                                                
For Adak to  have a master lease  a VPSO is needed on  site.  Adak                                                              
needs some  of that money  that it pays to  the State in  taxes to                                                              
pay for a VPSO  on Adak.  It leases 1.3 million  square feet right                                                              
now; there are  4.5 million square feet of developed  buildings on                                                              
Adak, some of the buildings will never be reused.                                                                               
                                                                                                                                
The  tough issues  for the  Aleut Corporation  are permitting  and                                                              
utility transition.   The regulatory  agencies of the  State never                                                              
anticipated  the  number  of  permits  required  to  transition  a                                                              
military base to  a private community.  The Aleut  Corporation may                                                              
need  help in  obtaining  all of  the permits  in  the time  frame                                                              
given.  It  wants to  obtain  complete  control  of that  base  by                                                              
October 1, 2000.  The utilities of  Adak have to be downsized, but                                                              
the cost of  the downsize is expensive  and right now it  does not                                                              
have the money  to do that.   It expects to have our  second class                                                              
city  classification completed  by  August of  2000,  and it  also                                                              
expects  to have a  cooperative agreement  with  the Navy and  the                                                              
city by that time.                                                                                                              
                                                                                                                                
Number 213                                                                                                                      
                                                                                                                                
CO-CHAIRMAN KELLY  asked if the  Aleut Corporation is  through the                                                              
Local Boundary Commission in terms of permits.                                                                                  
                                                                                                                                
MR. GATES  said staff  from LBC went  to Adak  and held  the first                                                              
public information  session on Adak.   The main issue is  that the                                                              
Aleut Corporation has asked for the  whole island to be designated                                                              
as the  City of Adak.   The LBC objects  to the size of  the city,                                                              
but  there  is a  60  day  federal  review  by the  Department  of                                                              
Justice.                                                                                                                        
                                                                                                                                
CO-CHAIRMAN  KELLY asked  if they were  anticipating any  monetary                                                              
help from the federal government.                                                                                               
                                                                                                                                
MR.  GATES replied  they  have received  a  little planning  help.                                                              
Senator Stevens put  money into the budget to run  the airport for                                                              
five years but that money may have been misallocated.                                                                           
                                                                                                                                
CO-CHAIRMAN KELLY asked about the  Regulatory Commission of Alaska                                                              
and if it would help if the committee sent a letter to them.                                                                    
                                                                                                                                
Number 250                                                                                                                      
                                                                                                                                
MR. GATES  said that the Commission  is sensitive to the  needs of                                                              
Adak.  The Navy  is shutting down the base on  October 1, 2000 and                                                              
all  of  the permits  need  to  be in  place.    He asked  if  the                                                              
committee  can help  by  providing  a safety  net  for the  permit                                                              
processing.                                                                                                                     
                                                                                                                                
SENATOR PEARCE asked if all the requests  are in to the Regulatory                                                              
Commission of Alaska.                                                                                                           
                                                                                                                                
MR. GATES said most of the requests are in.                                                                                     
                                                                                                                                
MR.  GROMOFF  said the  Navy  is  working  very closely  with  the                                                              
corporation  and it is  looking into  an administrative  transfer.                                                              
Some other  permits would be required,  but there doesn't  seem to                                                              
be a  problem with  the EPA.   The  biggest permit  problem  is in                                                              
regard to port operations on hazardous materials.                                                                               
                                                                                                                                
MR. GATES commented the sheer volume of permits is overwhelming.                                                                
                                                                                                                                
SENATOR PEARCE said  the RCA inherited over 500  open dockets when                                                              
it was established  last year.   There were almost 800  cases that                                                              
hadn't  even been  assigned a  docket number.   So  far they  have                                                              
cleared hundreds of those cases.                                                                                                
                                                                                                                                
The RCA promulgated  new regulations that lay out  a time frame so                                                              
that  scenario  would not  happen  again.  Those  are now  in  the                                                              
Department of  Law, but the  process is there  for a reason.   The                                                              
Corporation needs to sit down with  the RCA and let them know what                                                              
is coming  at them,  so they  can make  resources available.   The                                                              
committee cannot help  with the permit situation  according to the                                                              
Administrative  Code,  so  it is  up  to  the  RCA and  the  Aleut                                                              
Corporation.                                                                                                                    
                                                                                                                                
MR. GATES  said they have  sat down with  the RCA and  everyone is                                                              
really overwhelmed  at the magnitude  of the permits  needed. They                                                              
have  not figured  out  whether  it is  possible  to  get all  the                                                              
permits within the time frame available.                                                                                        
                                                                                                                                
MR. WALKER  stated that Adak is  a BRAC site and  the implications                                                              
of keeping  it open  are critical to  the State.   Adak is  a safe                                                              
haven,  not only for  Coast Guard  and military  vessels, but  our                                                              
fishing fleet, because  of the severity of the weather.   There is                                                              
no where  else out there to  offer logistic support and  offer the                                                              
emergency access in  that area.  It is important  for the State to                                                              
ensure that  this site  becomes a viable  entity and  retain those                                                              
facilities.                                                                                                                     
                                                                                                                                
CO-CHAIRMAN KELLY said the next meeting  will be held in Anchorage                                                              
to  visit Elmendorf  Air Force  Base  and to  discuss health  care                                                              
issues.  Another  meeting will be scheduled during  the session to                                                              
begin establishing the citizen's advisory committees.                                                                           
                                                                                                                                
CO-CHAIRMAN  MULDER encouraged  committee members  to think  about                                                              
how  the  committee   can  best  utilize  the   civilian  advisory                                                              
committees, because  they are  tremendous assets authorized  under                                                              
the statute.  Their mission is not  clearly defined so it is up to                                                              
committee  members   to  best  define  the  mission   and  clarify                                                              
objectives.                                                                                                                     
                                                                                                                                
CO-CHAIRMAN KELLY  asked for a  report about the  Y2K preparations                                                              
from General Oates.  He suggested  that the military would receive                                                              
legislative recognition for those efforts.                                                                                      
                                                                                                                                
There being no  further business to come before  the committee CO-                                                              
CHAIRMAN KELLY adjourned at 2:10 p.m.                                                                                           
                                                                                                                                
                                                                                                                                

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