Legislature(1999 - 2000)

04/06/2000 12:30 PM House ASC

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                 JOINT ARMED SERVICES COMMITTEE                                                                               
                          April 6, 2000                                                                                         
                           12:30 p.m.                                                                                           
                                                                                                                                
SENATE MEMBERS PRESENT                                                                                                        
                                                                                                                                
Senator Tim Kelly, Co-Chair                                                                                                     
Senator Drue Pearce                                                                                                             
Senator Gary Wilken                                                                                                             
Senator Pete Kelly                                                                                                              
Senator Loren Leman                                                                                                           
                                                                                                                              
HOUSE MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Lisa Murkowski                                                                                                   
Representative Gene Therriault                                                                                                  
Representative Reggie Joule                                                                                                     
Representative John Harris                                                                                                      
                                                                                                                                
PUBLIC MEMBERS PRESENT                                                                                                        
                                                                                                                                
Alan Walker                                                                                                                     
Jake Lestenkoff (via teleconference)                                                                                            
Dean Owen (via teleconference)                                                                                                  
Chick Wallace (via teleconference)                                                                                              
George Vakalis (via teleconference)                                                                                             
                                                                                                                                
OTHERS PRESENT                                                                                                                
                                                                                                                                
Senator Randy Phillips                                                                                                          
Representative Sharon Cissna                                                                                                    
Representative John Coghill                                                                                                     
Representative Alan Austerman                                                                                                   
Representative Norm Rokeberg                                                                                                    
Janice Nielson, US Army-Pacific Legislative Liaison                                                                           
                                                                                                                              
WITNESS REGISTER                                                                                                              
                                                                                                                                
Mr. Paul Fuhs                                                                                                                   
PO Box 20664                                                                                                                    
Juneau, AK  99802                                                                                                               
                                                                                                                                
Mr. Michael Keene                                                                                                               
Anchorage Economic Development Corporation                                                                                      
550 W. 7th Ave.                                                                                                                 
Anchorage, AK                                                                                                                   
                                                                                                                                
Mr. Curt McGee                                                                                                                  
Vice President of Real Estate                                                                                                   
Cook Inlet Region Incorporated                                                                                                  
2525 C Street                                                                                                                   
Anchorage, AK                                                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
TAPE 00-03, SIDE A                                                                                                            
Number 001                                                                                                                      
                                                                                                                                
CO-CHAIR  TIM KELLY  called  the  Joint Armed  Services  Committee                                                              
meeting to  order at  12:37 p.m.   Committee members  present were                                                              
Co-Chair  Tim Kelly,  Senator  Drue  Pearce, Senator  Pete  Kelly,                                                              
Senator  Gary  Wilken,  Senator  Loren  Leman,  Alan  Walker,  and                                                              
General  Jake Lestenkoff  (via  teleconference).   Co-Chair  Kelly                                                              
noted  that the  House  members were  attending  a House  Majority                                                              
Caucus and would arrive shortly.                                                                                                
                                                                                                                                
INTRODUCTION OF MEMBERS AND GUESTS                                                                                          
                                                                                                                                
MR.   CHRIS  NELSON,   Joint  Armed   Services  Committee   staff,                                                              
introduced Mr. Paul Fuhs.                                                                                                       
                                                                                                                                
MR. FUHS introduced Michael Keene,  Transportation Director of the                                                              
Anchorage  Economic  Development  Corporation  (AEDC).   Mr.  Fuhs                                                              
informed  committee  members  that  he  and Mr.  Keene  have  been                                                              
working on  logistics issues in Anchorage  and that Mr.  Keene has                                                              
taken the  lead on the  military logistics  initiative.   Mr. Fuhs                                                              
also introduced Mr. Curt McGee, Vice  President of Real Estate for                                                              
Cook Inlet Region Incorporated (CIRI).                                                                                          
                                                                                                                                
ACTIVITIES REPORT                                                                                                           
                                                                                                                                
MR. NELSON informed committee members  that since the last meeting                                                              
in January,  a significant number  of general officer  visits have                                                              
occurred  and  several  committee  members  have  participated  in                                                              
important conferences.  Lt. General  John Costello, the Commanding                                                              
General  of  the United  States  Army  Space and  Missile  Defense                                                              
Command, visited Alaska  from March 6 to 9.   Lt. General Costello                                                              
wanted to  view the  proposed sites  for national missile  defense                                                              
deployment in  Alaska at  Fort Greeley.   He was given  a thorough                                                              
tour of the facilities.   His focus was on quality  of life issues                                                              
for soldiers and their families.                                                                                                
                                                                                                                                
MR. NELSON stated that he and Mr.  Vakalis represented the JASC at                                                              
the  Office  of   the  Secretary  of  Defense   Service  Community                                                              
Conference.   That  conference  focused  on Base  Realignment  and                                                              
Closure (BRAC)  issues.   The annual conference  is hosted  by the                                                              
Secretary of  Defense for all branches  of the armed  services and                                                              
the  communities  that have  suffered  base  closures.   The  Army                                                              
presentation  on BRAC  noted that,  for the very  first time,  the                                                              
service chiefs raised some questions  about BRAC.   The Department                                                              
of  Defense  claims  there  is  22  percent  more  base  structure                                                              
available than force structure, however  the branches of the armed                                                              
services disagree.                                                                                                              
                                                                                                                                
MR. NELSON pointed  out that from April 24 to 26  the JASC will be                                                              
hosting  Lt. General  Ron Kadish,  the Commanding  General of  the                                                              
Ballistic Missile  Defense Organization,  and Major  General Willy                                                              
Nance, the  U.S. Army's project  coordinator for  national missile                                                              
defense.   Both Lt.  General Kadish and  Major General  Nance will                                                              
visit the  military facilities  in Anchorage  and tour  the Clear,                                                              
Ft. Greeley, Ft. Wainwright and Fairbanks'  facilities. The Alaska                                                              
National  Guard  will  fly them  to  Shimea  (ph)  for a  tour  of                                                              
Erickson Air Station.                                                                                                           
                                                                                                                                
Number 484                                                                                                                      
                                                                                                                                
CO-CHAIR  KELLY  announced  that   Representatives  Murkowski  and                                                              
Harris had arrived.                                                                                                             
                                                                                                                                
MR. NELSON  continued his activities  report.  The  Association of                                                              
the U.S. Army Symposium on Space  and Missile Defense is scheduled                                                              
to occur  on June  8 and  9 in  California.   During the month  of                                                              
June,  members  of  the  armed forces  are  transferred  to  other                                                              
assignments.   General Dean  Cash, the  Commanding General  of the                                                              
U.S. Army  Alaska, has  received a  new assignment in  Washington,                                                              
D.C. and will  be replaced by Major General Loveless.   The change                                                              
of command ceremony will take place on June 16.                                                                                 
                                                                                                                                
CO-CHAIR KELLY  asked Mr.  Nelson to update  the committee  on the                                                              
National Ballistic Missile Defense System.                                                                                      
                                                                                                                                
MR. NELSON noted  that Major General Nance and  Lt. General Kadish                                                              
will  be able  to  provide an  excellent  update  when they  visit                                                              
Alaska. The  integrated flight  test number 4,  which is  the next                                                              
intercept  test, has  been rescheduled  to  June. The  President's                                                              
decision will be forthcoming in August.                                                                                         
                                                                                                                                
CO-CHAIR KELLY noted  that a recent newspaper  story reported that                                                              
the costs of that system are higher than the initial estimate.                                                                  
                                                                                                                                
MR. NELSON  stated the costs have  increased because the  scope of                                                              
the  program  has  increased.   When  the  program  was  initially                                                              
announced,  a  total  of  20 interceptors  was  envisioned.    The                                                              
military then looked  at the emerging threat and  felt it would be                                                              
more  appropriate  to  have  100 missile  interceptors.    As  the                                                              
program  takes longer,  development  costs  increase, however  the                                                              
main factor  driving the  cost increase is  the expanded  scope of                                                              
the program.                                                                                                                    
                                                                                                                                
CO-CHAIR KELLY  noted that Representatives Coghill  and Cissna had                                                              
joined committee members.   He asked that the  committee return to                                                              
the approval of minutes at this time.                                                                                           
                                                                                                                                
APPROVAL OF MINUTES                                                                                                         
                                                                                                                                
SENATOR PEARCE  moved to approve  the minutes of the  meeting held                                                              
on  January 31,  2000. There being no objection,  the minutes were                                                              
approved.                                                                                                                       
                                                                                                                                
CO-CHAIR KELLY announced that Janice  Neilson, legislative liaison                                                              
for the U.S. Army Pacific, was participating via teleconference.                                                                
                                                                                                                                
Number 898                                                                                                                      
                                                                                                                                
NEW BUSINESS                                                                                                                
                                                                                                                                
MR. ALAN WALKER  discussed a proposed citation to  be presented to                                                              
the Juneau  U.S. Coast Guard station.   The Juneau  station, after                                                              
an  inspection this  year, ranked  number  one in  the nation  for                                                              
small  boat stations  - quite  an  accomplishment especially  when                                                              
Alaska's adverse weather  conditions are factored in.   The Juneau                                                              
station had a total of five discrepancies  on this inspection; the                                                              
average  was  77  and  the  previous all-time  low  was  17.    He                                                              
recommended that the committee approve the citation.                                                                            
                                                                                                                                
SENATOR  WILKEN moved  to approve  the citation.   There being  no                                                              
objection, the citation was approved.                                                                                           
                                                                                                                                
[The committee  watched a video  about the Northern  Edge training                                                              
program  sent  by  Lt.  General   Thomas  Case,  U.S.  Air  Force,                                                              
Commanding General, Alaska Command.]                                                                                            
                                                                                                                                
Number 1245                                                                                                                     
                                                                                                                                
SENATOR WILKEN said  that he has made many trips  to Northern Edge                                                              
and is always  impressed by what  he sees.  He noted  the military                                                              
has  suggested that  the legislature  designate  a "Northern  Edge                                                              
Day" during  the first  year of each  legislative session  so that                                                              
the military can host the legislature  at Northern Edge.  He moved                                                              
that the committee send a letter  to the presiding officers of the                                                              
House and Senate  and to the military commanders  in Alaska asking                                                              
that such a day be designated.                                                                                                  
                                                                                                                                
CO-CHAIR KELLY asked  if Senator Wilken was implying  that a C-130                                                              
would take  legislators from Juneau  to Eielsen Air Force  and Ft.                                                              
Greeley for the day.                                                                                                            
                                                                                                                                
SENATOR  WILKEN said  that is  a possibility.   He  added that  he                                                              
believes  it is  important that  legislators  understand they  are                                                              
expected to attend.                                                                                                             
                                                                                                                                
SENATOR PEARCE noted that the naval  component of Northern Edge is                                                              
becoming  more  important  as the  Coast  Guard  and Navy  play  a                                                              
greater  role.  She  suggested informing  the commanding  officers                                                              
that  legislators  are  interested   in  touring  the  water-based                                                              
facilities on alternate years.                                                                                                  
                                                                                                                                
CO-CHAIR  KELLY  asked Mr.  Nelson  to  prepare  a letter  to  the                                                              
presiding  officers  of  the legislature  and  to  the  commanding                                                              
officers of the military in Alaska.                                                                                             
                                                                                                                                
REPRESENTATIVE COGHILL  pointed out that  it might not be  wise to                                                              
have all legislators on one airplane in case of a mishap.                                                                       
                                                                                                                                
CO-CHAIR KELLY  stated that will  be taken into  consideration and                                                              
then  asked Mr.  Nelson  to brief  the  committee  on the  interim                                                              
meeting schedule.                                                                                                               
                                                                                                                                
MR. NELSON  suggested that the  committee hold its  next quarterly                                                              
meeting on  June 5, 2000  at Elmendorf Air  Force Base.   The U.S.                                                              
Army Corps  of Engineers will brief  the committee on its  role in                                                              
national missile defense.  He recommended  that the fall quarterly                                                              
meeting  be  held at  Ft.  Wainwright.    He noted  that  although                                                              
committee  members  have  expressed  an  interest  in  meeting  in                                                              
Kodiak, that meeting  is dependent on transportation.   He pointed                                                              
out the August launch in Kodiak has been postponed.                                                                             
                                                                                                                                
CO-CHAIR MULDER  reminded Mr. Nelson  to schedule a  discussion on                                                              
the issue  of the citizens' advisory  committee during the  June 5                                                              
meeting.                                                                                                                        
                                                                                                                                
MR. NELSON  agreed and noted another  key date this summer  is the                                                              
annual  meeting  of  the  National   Association  of  Installation                                                              
Developers  (NAID) on  August 5.   Representative  Harris and  Mr.                                                              
Vakalis represented  the committee at  the last NAID meeting.   He                                                              
urged committee members to consider  attending the August meeting.                                                              
                                                                                                                                
CO-CHAIR  KELLY  announced   that  the  next  agenda   item  is  a                                                              
presentation  by  the  Anchorage   Military  Logistics  Initiative                                                              
Group.                                                                                                                          
                                                                                                                                
Number 1671                                                                                                                     
                                                                                                                                
PAUL FUHS, Anchorage  Military Logistics Initiative  Group member,                                                              
made the following comments.                                                                                                    
                                                                                                                                
Currently the  U.S. Department of  Defense is involved in  a major                                                              
analysis of its  logistics management systems.   About $80 billion                                                              
of  the  military's  $250  billion   annual  budget  is  spent  on                                                              
logistics.  The  National Defense Transportation  Association held                                                              
its  meeting  in  Anchorage last  year  and  discussions  revolved                                                              
around using private carriers.  He  has been working with AEDC and                                                              
some of  the carriers  to explore  what that  might mean  from the                                                              
standpoint of  the contribution to  the military mission  in terms                                                              
of war readiness  and cost savings and the  economic opportunities                                                              
it might provide for Alaska.                                                                                                    
                                                                                                                                
MR.  MICHAEL  KEENE,  Transportation  Director  of  the  Anchorage                                                              
Economic   Development   Corporation,   provided   a   packet   of                                                              
information to committee members  containing information about the                                                              
AEDC  and  the   global  distribution  center  for   the  Northern                                                              
Hemisphere, which  AEDC believes Alaska  has the potential  to be.                                                              
The group has  had the help of Senators Stevens  and Murkowski and                                                              
Representative Young.   They visited Washington,  D.C. three times                                                              
in the  past few months to  demonstrate Alaska's potential  as the                                                              
military's  mobility hub  for the  Northern  Hemisphere. Prior  to                                                              
going to Washington,  D.C., the group met with  Lt. General Thomas                                                              
Case  to  review  the  group's  approach  which  is  to  establish                                                              
Anchorage  as  the  global  military  logistics  hub  based  on  a                                                              
partnership between private industry  and military contractors.  A                                                              
third party logistics handler would  do all of the warehouse work;                                                              
shipping, ordering, and parts distribution  for the military.  The                                                              
military indicated it  wants this facility to be  located near the                                                              
Anchorage International  Airport, not at a military  base, because                                                              
the   military   wants   to   take    advantage   of   Anchorage's                                                              
infrastructure.      This   joint    project   involves   Alaska's                                                              
Congressmen,  the  University  of   Alaska,  the  Municipality  of                                                              
Anchorage, and the Anchorage International Airport.                                                                             
                                                                                                                                
MR.  KEENE  referred to  a  report  in members'  packets  entitled                                                              
"Fiscal Year  2000 Logistics Critical  Success Indicators."   That                                                              
report points out  that Anchorage could provide  the military with                                                              
its needs  for its fighting forces.   The military  suggested that                                                              
it wants its logistics operation  near the airport because it does                                                              
not want  its men and women  in uniform doing logistics  work that                                                              
private  industry could  do.   The  report  also  points out  that                                                              
Anchorage is the  number one cargo land and weight  airport in the                                                              
United States.   Anchorage is closer  to most of  the destinations                                                              
in  the   Northern  Hemisphere  than   any  other   one  location.                                                              
Anchorage  is nine  hours from  95 percent  of the  industrialized                                                              
world.   The AEDC  is trying  to work  with the  military and  the                                                              
other  interested   parties  to  market  the   military  logistics                                                              
capability in Anchorage.                                                                                                        
                                                                                                                                
MR.  CURT MCGEE,  Cook Inlet  Region  Incorporated (CIRI),  showed                                                              
committee  members  a map  of  the  Anchorage area  including  the                                                              
airport and industrial  land.  Anchorage airport  cargo traffic is                                                              
expected  to double over  the next  20 years  and if Anchorage  is                                                              
ever  to take  advantage of  the  logistical-type businesses  that                                                              
could  come  about   during  that  time,  a  location   for  those                                                              
businesses must  be determined.   Anchorage has about  1,000 acres                                                              
of land  zoned for industrial  use, mostly  scattered up  and down                                                              
the old and new Seward Highway. CIRI  has come up with the idea of                                                              
using Fire Island,  of which 4,000 acres of land  is vacant.  CIRI                                                              
owns 3,000 of those acres; the other  1,000 acres are owned by the                                                              
federal  government.  The  group proposed  that airport  officials                                                              
consider Fire Island for additional  runway space or for logistics                                                              
development.  To put runways on Fire  Island, the air space around                                                              
Anchorage must be  studied.  The group has contracted  with a firm                                                              
named Landum  (ph) and Brown  to do such a  study to see  how much                                                              
the capacity could  be increased.  That study  should be completed                                                              
in about 45 days.  If a runway is  placed on Fire Island, a lot of                                                              
noise could be  moved out of the Anchorage  International Airport.                                                              
Access to Fire Island  must be considered.  The latest  idea is to                                                              
use a  suction dredge  to bring  material from  the floor  of Cook                                                              
Inlet  to  build  a  causeway, which  is  estimated  to  cost  $30                                                              
million.                                                                                                                        
                                                                                                                                
MR.  MCGEE  produced  an aerial  picture  showing  several  runway                                                              
configurations and the causeway route  across the mudflats. Access                                                              
to the causeway  could be gained  on Raspberry Road and/or  from a                                                              
tunnel  underneath   the  existing   North-South  runway.     Fish                                                              
migration  and other  environmental  impacts are  of concern;  the                                                              
Environmental Impact Statement process  should take several years.                                                              
                                                                                                                                
Number 2189                                                                                                                     
                                                                                                                                
SENATOR  LEMAN  said the  alignment  of the  proposed  North-South                                                              
runway  on  the  aerial  map differs  slightly  from  the  map  in                                                              
members' packets.   He asked if  those maps present  two different                                                              
options.                                                                                                                        
                                                                                                                                
MR.  MCGEE  said yes  and  that  the airport  space  study  should                                                              
determine  the best  alignment and  how it  will affect  departing                                                              
aircraft and traffic from Elmendorf Air Force Base.                                                                             
                                                                                                                                
SENATOR LEMAN asked if a revised  proposal for a port on the North                                                              
side of Fire  Island could be  integrated with the new  runways to                                                              
allow for multiple use.                                                                                                         
                                                                                                                                
MR. MCGEE said yes but the only caveat  is that the port could not                                                              
be located directly underneath the approach to the runway.                                                                      
                                                                                                                                
MR. FUHS  referred to a 12  page document in members'  packets and                                                              
noted it contains  the group's mission statement that  was used as                                                              
part  of its  request  to meet  with  Pentagon  officials and  the                                                              
business cards of everyone the group  met with.  He noted that the                                                              
group  met with  the  very top  policy makers  and  was told  that                                                              
although the military has a global  mission in terms of logistics,                                                              
it  has always  divided  the world  into two  pieces.   The  Asian                                                              
command is supplied  from the West Coast; the  European command is                                                              
supplied from  the East Coast.   When looking  at a place  on U.S.                                                              
soil  to consolidate  those two  commands, Alaska  makes the  most                                                              
sense.  Alaska has more airlift capacity  and it is the number one                                                              
air  cargo port.  Some of  the overseas  locations have  political                                                              
risk.   The  military is  concerned that  in some  areas, such  as                                                              
Korea,  chemical-biological-radiological   contamination   of  the                                                              
equipment may make it unusable.                                                                                                 
                                                                                                                                
MR. FUHS  continued. Some supplies  are carried on Navy  ships but                                                              
getting the supplies  from the ship to shore to  supply the troops                                                              
is problematic.  In addition, some  of the ships are so full, they                                                              
cannot  take  on new  materials.    Admiral  Evero (ph)  was  very                                                              
interested in  the idea of a port  so that supplies can  be loaded                                                              
and unloaded.   Military  officials were  also very interested  in                                                              
the idea of a sea-air link.  Equipment  would be brought by sea to                                                              
Alaska, warehoused  and then air  freighted when needed.   Many of                                                              
the  current  base  depots  are political  artifacts  of  the  old                                                              
system.   When the  military did  all of the  shipping on  its own                                                              
airplanes, bases could  be located anywhere.  None  of those bases                                                              
are  located  near  the  modern  transportation  hubs,  except  in                                                              
Memphis,  and that  base has  been turned  over to  FedEx.   FedEx                                                              
operates  it for packages  of less  than 150  pounds.  As  General                                                              
Ralston  pointed out,  delivery from  Anchorage would  be one  day                                                              
faster than from Memphis.                                                                                                       
                                                                                                                                
TAPE 00-03, Side B                                                                                                            
Number 2400                                                                                                                     
                                                                                                                                
Regarding maintenance, MR. FUHS noted  that the military equipment                                                              
must be maintained  and recalibrated.   A lot of the  equipment is                                                              
modular such  as plane navigation  systems and electronic  weapons                                                              
components.    The  military  pointed  the  group  toward  several                                                              
contractors  it has  used to  do an  analysis of  the benefits  of                                                              
Anchorage as  a global hub.   The group  has developed a  scope of                                                              
work for  that analysis  and it  has received  a bid for  $200,000                                                              
from Price  Waterhouse.  That analysis  could be completed  in two                                                              
months,  in time  for  the  upcoming quadrennial  defense  review.                                                              
Every four years the military reviews  all of its systems and that                                                              
review  will  begin in  October.    AEDC  has requested  that  the                                                              
legislature consider appropriating  $200,000 in the capital budget                                                              
for the study.                                                                                                                  
                                                                                                                                
REPRESENTATIVE MURKOWSKI  asked whether the Department  of Defense                                                              
would pay a portion of the $200,000.                                                                                            
                                                                                                                                
MR. FUHS replied the group asked  the Department of Defense but it                                                              
is too late in  the year.  They also asked Senator  Stevens but if                                                              
they  wait for  an  appropriation  next year  they  will miss  the                                                              
quadrennial review.  The military  has reviewed the scope of work,                                                              
however,  and  the group  has  asked  that the  Defense  Logistics                                                              
Agency or  the U.S. Transportation  Command to oversee  the study,                                                              
which they are willing to do.                                                                                                   
                                                                                                                                
CO-CHAIR KELLY asked who would conduct the study.                                                                               
                                                                                                                                
MR. FUHS  replied that  Price Waterhouse  was the most  responsive                                                              
company.                                                                                                                        
                                                                                                                                
CO-CHAIR KELLY asked who would sponsor the study.                                                                               
                                                                                                                                
MR. FUHS replied the AEDC.                                                                                                      
                                                                                                                                
CO-CHAIR KELLY asked how AEDC would  avoid the "taint" of choosing                                                              
its own consultants.                                                                                                            
                                                                                                                                
MR. FUHS replied  the names of credible consultants  were given to                                                              
AEDC by the Department of Defense.                                                                                              
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked if  the  study  is not  presented                                                              
before the  quadrennial defense review,  it will not  be discussed                                                              
again for four years.                                                                                                           
                                                                                                                                
MR. FUHS said  it will be much  more difficult for AEDC  to submit                                                              
the proposal.  They were told they  would be much further ahead if                                                              
they can get the study in before the review.                                                                                    
                                                                                                                                
REPRESENTATIVE MURKOWSKI  asked if it  will be possible  to submit                                                              
the proposal  after the review takes  place, in case the  money is                                                              
not available to do the study now.                                                                                              
                                                                                                                                
MR. FUHS said they will do their  very best to get involved at any                                                              
point  they  can, however,  doing  the  study  now would  be  more                                                              
efficient and provide a higher chance of success.                                                                               
                                                                                                                                
CO-CHAIR MULDER  asked what entities  will be arguing  against the                                                              
development of the new logistics center.                                                                                        
                                                                                                                                
MR. FUHS said  the existing depots in Georgia,  Oklahoma and other                                                              
places would be concerned because  the Department of Defense wants                                                              
to  consolidate  and  do  another  BRAC round  on  depots.    This                                                              
proposal leapfrogs  over that whole scenario, however,  because it                                                              
uses  private  sector contractors.    It  does  not create  a  new                                                              
military base or depot.                                                                                                         
                                                                                                                                
                                                                                                                                
CO-CHAIR MULDER  asked Mr.  Fuhs if he  could give an  estimate of                                                              
the volume of  the support apparatus that goes  along with sending                                                              
troops to combat areas.                                                                                                         
                                                                                                                                
MR. FUHS  replied the total  spent is $80  billion per year  - one                                                              
third of the defense budget.  In  Anchorage right now, contractors                                                              
supply $23 million worth of supplies  per year, primarily food and                                                              
medical supplies.                                                                                                               
                                                                                                                                
Number 2139                                                                                                                     
                                                                                                                                
SENATOR  PEARCE commended  AEDC and  CIRI for  the work they  have                                                              
done and  asked how  the Alaska Department  of Transportation  and                                                              
Public  Facilities  (DOTPF) will  be  involved  as the  owner  and                                                              
operator of the Anchorage International Airport.                                                                                
                                                                                                                                
MR. FUHS said DOTPF  has been involved at every level.   DOTPF has                                                              
been briefed many  times and it put forth the  proposal to Senator                                                              
Stevens for the tunnel under the  North-South runway.  That tunnel                                                              
needs  to  be constructed  for  the  airport  anyway to  take  the                                                              
traffic  off of  Raspberry  Road  and Northern  Lights  Boulevard.                                                              
Regarding  the Fire Island  development,  the group proposed,  and                                                              
the airport  accepted, that alternative  as a plan option.   It is                                                              
formally in the planning effort.   The proposal has the support of                                                              
several community  councils and  the Mayor.   DOTPF has  been very                                                              
cooperative in this whole effort.                                                                                               
                                                                                                                                
SENATOR  PEARCE commented  that  she supports  expanding  military                                                              
logistics in  Anchorage but not if  it will mean  additional noise                                                              
that is not abated  in some manner by DOTPF and  the airport.  She                                                              
hopes  these discussions  will move  DOTPF  forward toward  making                                                              
difficult and costly  decisions.  She thought the  CIRI idea would                                                              
go a long way.   She noted that all of the  current cargo carriers                                                              
have  spent   a  significant  amount   of  money   building  cargo                                                              
facilities at the Anchorage International  Airport.  She asked how                                                              
those carriers  are involved  and whether  they are supportive  of                                                              
the adjacent site.                                                                                                              
                                                                                                                                
MR.  FUHS  explained that  the  group  briefed  all of  the  cargo                                                              
carriers at the  very beginning.  The carriers  said that although                                                              
it  is unlikely  they would  move, they  would support  additional                                                              
land being  made available because  of the congestion  and impacts                                                              
on the  community.   A tunnel built  under the North-South  runway                                                              
would make landings at Fire Island workable.                                                                                    
                                                                                                                                
SENATOR  PEARCE asked  if those  carriers would  not be  precluded                                                              
from  using  Fire  Island  for  takeoffs   and  landings  and  for                                                              
servicing their jets long distance.                                                                                             
                                                                                                                                
MR. FUHS said  that is correct or, possibly all  of the transients                                                              
could be put out there to reduce  noise.  They do not need much in                                                              
the  way  of  facilities  because   they  are  doing  tail-to-tail                                                              
transfers.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  how that  will affect the  landing                                                              
fee revenues at the airport.                                                                                                    
                                                                                                                                
MR.  FUHS explained  that  CIRI's position  is  that the  airports                                                              
should  be part  of the  Anchorage  International Airport  system,                                                              
whether managed by DOTPF or a port  authority.  CIRI has indicated                                                              
its commitment  to dedicate  those  lands for  the runways  to the                                                              
airport system.                                                                                                                 
                                                                                                                                
CO-CHAIR KELLY asked if CIRI owns Fire Island.                                                                                  
                                                                                                                                
MR.  FUHS replied  CIRI  owns  3200 acres  of  Fire  Island.   The                                                              
remaining 1,000  acres are owned  by the federal government  - the                                                              
FAA and  the Coast Guard.   The FAA  plans to eventually  move the                                                              
VOR as it moves in more microwave and GPS landing systems.                                                                      
                                                                                                                                
CO-CHAIR KELLY asked if it is possible  to bring a blue water ship                                                              
into Fire  Island and transfer directly  from large aircraft  to a                                                              
ship.                                                                                                                           
                                                                                                                                
MR. FUHS  said it  is.  The  depth off of  the Northeast  point of                                                              
Fire  Island is  65 feet.   There  are  other issues  in terms  of                                                              
currents and navigation and the group  has asked the marine pilots                                                              
in that  area provide  information on  what the navigation  issues                                                              
are.                                                                                                                            
                                                                                                                                
CO-CHAIR KELLY commented that an  ocean link to a major airport is                                                              
a clear advantage that most communities do not have.                                                                            
                                                                                                                                
MR. FUHS  said that Admiral Evero  (ph) of the Navy  was extremely                                                              
excited about this idea and saw it  as a possible solution to some                                                              
of the logistics issues he is dealing with.                                                                                     
                                                                                                                                
CO-CHAIR KELLY  asked Mr.  Nelson if he  would like to  comment on                                                              
the Quadrennial Defense Review.                                                                                                 
                                                                                                                                
MR.  NELSON  said  the  Quadrennial  Defense  Review  began  as  a                                                              
"bottoms  up"  program  several  years  ago.   It  has  been  very                                                              
successful  in getting  the services  to talk  to one another  and                                                              
look  at  what  they  are  doing  objectively  so  it  has  become                                                              
institutionalized and occurs every four years.                                                                                  
                                                                                                                                
CO-CHAIR KELLY  thanked the group  members for their  presentation                                                              
and asked whether they sent letters  to the presiding officers and                                                              
Finance Committee chairs.                                                                                                       
                                                                                                                                
MR. FUHS said they did today.                                                                                                   
                                                                                                                                
SENATOR PEARCE asked  if there is anything else  the committee can                                                              
do to help forward this proposal,  other than consider the capital                                                              
appropriation request.                                                                                                          
                                                                                                                                
MR. FUHS said it might be appropriate  for the committee to send a                                                              
letter of support.   Senator Stevens' position is  that he will do                                                              
his best  to prevent  others from  blocking military  efficiencies                                                              
from taking place.                                                                                                              
                                                                                                                                
SENATOR WILKEN asked Mr. Keene what  the 3 Double X and 7 Double X                                                              
generation  aircraft  mean  to  Alaska  as  far  as  landings  and                                                              
takeoffs 20 years from now.                                                                                                     
                                                                                                                                
MR.  KEENE  replied,  from  a  passenger   standpoint,  those  new                                                              
airplanes  will  bypass  Anchorage.    From  a  cargo  standpoint,                                                              
getting the best utilization of the  aircraft will require them to                                                              
be filled with  more cargo and less  fuel, and to make  a pit stop                                                              
in Anchorage and perhaps transfer  some cargo.  If a cargo carrier                                                              
was to  go non-stop from  Hong Kong to  New York, the  plane would                                                              
have  to take  about one-third  less freight  to make  up for  the                                                              
weight of the fuel.                                                                                                             
                                                                                                                                
SENATOR WILKEN asked if the new planes  will cause an evolution of                                                              
the market.                                                                                                                     
                                                                                                                                
MR. KEENE  said he  believes they  will.  He  noted that  prior to                                                              
joining the AEDC, he spent 37 years in the airline industry.                                                                    
                                                                                                                                
CO-CHAIR KELLY asked  committee members if there  is any objection                                                              
to sending  a letter  to the presiding  officers telling  them the                                                              
committee considers  this proposal  to be  a serious effort  worth                                                              
consideration.  There was no objection.                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
CO-CHAIR KELLY  announced the  next meeting will  occur on  June 5                                                              
and adjourned the meeting.                                                                                                      
                                                                                                                                
                                                                                                                                

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