Legislature(2011 - 2012)SENATE FINANCE 532
02/10/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation on Statewide Transportation Economic Indicators | |
| 2 AIRPORT IN NORTH AMERICA FOR LANDED CARGO WEIGHT | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
February 10, 2012
9:02 a.m.
9:02:10 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Steve Hatter, Deputy Commissioner of Aviation, Department
of Transportation and Public Facilities; Christopher
Aadnesen, President & CEO, Alaska Railroad Corporation;
Bill O'Leary, Chief Financial Officer & Vice President for
Finance, Alaska Railroad Corporation;
SUMMARY
^PRESENTATION ON STATEWIDE TRANSPORTATION ECONOMIC
INDICATORS
9:02:49 AM
STEVE HATTER, DEPUTY COMMISSIONER OF AVIATION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, introduced his
support staff. He directed committee attention to the
presentation, "Aviation-Economic Engine for Alaska"(copy on
file). He discussed Slide 2, which illustrated the scope of
the aviation arm of the department:
· Largest System in the US
· 254 State-owned Airports
· Lifeline Transportation Mode for all citizens and
regions
· Airports only means of year round access for 169
communities
· Alaska International Airport (AIAS) is an economic
engine for the state
Commissioner Hatter turned to Slide 3, which showed the
aviation industries economic contributions to Alaska:
· 47,000 aviation jobs statewide in both rural and
urban areas
· 5th largest contributor to Alaska's Gross State
Product (GSP)
· Contributes $3.5B to $44B economy
Commissioner Hatter assured the committee that the
department had been working to create better standards for
more accurately gaging the size of budget necessary to keep
its system running. He said that the biggest focus for
airports was in the area of safety.
9:05:45 AM
Commissioner Hatter continued to Slide 5, "Two Airports -
One System," which highlighted that the International
Airport System was made up of two airports: Ted Stevens
International Airport and Fairbanks International Airport.
He noted that the system had been created 50 years ago by
Ch88 SLA 1961 - (AS 37.15.410-550). He believed that it
marketed well globally to have the two airports housed in
one system.
Commissioner Hatter discussed Slide 6, which showed that
the system was self-sustaining through user rates and fees;
the businesses that used the airport funded the entire
system.
9:07:10 AM
Commissioner Hatter turned to Slide 7, which contained two
pie charts detailing AIAS revenues and costs. He relayed
that aviation attracted $101 million in annual operating
revenues, 37 percent was generated through landing fees. He
said aviation listed $1.5 billion in assets and averaged
$50 million per year in federal capital project
contributions. He pointed out that carriers funded 70
percent of the $101 million through rates and fees.
9:08:46 AM
Commissioner Hatter explained that the rates and fees for
use of the airports facilities were developed and
administered through the Alaska International Airport
System and Passenger Terminal Lease Operating Agreement. He
furthered that the agreement was a contract between the
system and each individual member of a majority of
airlines; the residual cost model required a signatory
airline to sign the operating agreement contract and
received benefits in return, such as reduces fees and
rates, as well as a voice in the capital project game plan.
9:10:38 AM
Commissioner Hatter continued to Slide 10, "Economic
Engine":
Anchorage Int'l Airport
· 15,577 Jobs - one in ten jobs in Anchorage
· About $724 million in direct annual payroll
· Another $303 million in annual payroll jobs in
the community
· #2 Airport in North America for landed cargo
weight
Fairbanks Int'l Airport
· 1,900 Jobs - one in twenty jobs in Fairbanks
attributable to the airport
· $225 million in statewide economic output
· Ranked 85th in the nation in weight of total mail
and freight (2010)
9:11:00 AM
Commissioner Hatter spoke to Slide 11, "Asia Centric Cargo
Market":
· Over 99 percent of cargo through AIAS - five Asian
origins (China, Taiwan, Korea, Japan, Hong Kong)
· N.America - Asia cargo through AIAS expected to grow
- 1-2 percent
· 71 percent of all Asia - bound cargo from U.S. goes
through ANC
· 82 percent of all U.S. - bound air cargo from Asia
goes through ANC
· All Asia - North America carriers have flights
through Anchorage
· Approximately 80 percent of AIAS carrier generated
revenue is cargo
Commissioner Hatter shared that the airport would be
receiving an award in 2012 for customer service.
9:12:27 AM
Commissioner Hatter discussed Slide 14, which indicated
that the success of the airports was attributable to its
location; 9.5 hours from 90 percent of the industrialized
world and because there was never a same say closure
(except 9/11). He noted that it was a perfect balance
between fuel weight and cargo payload.
Commissioner Hatter noted Slide 18, which contained a graph
illustrating the passenger activity for FY08 through FY12.
He said that the close grouping of the lines indicated that
changes in the global economy and other factors that
affected the cargo market did not reflect the same on the
passenger market.
9:14:04 AM
Commissioner Hatter continued to Slide 19, which charted
the cargo activity. He stated that the numbers had yet to
fully recover from a currently uncertain economy.
9:14:09 AM
Co-Chair Stedman queried the cargo numbers for FY12.
9:14:16 AM
Commissioner Hatter indicated that the purple line
represented FY12. He opined that the line was tracking
FY09, which sloped due to the Mt. Redoubt activity.
9:15:14 AM
Co-Chair Stedman requested the January 2012 data as soon as
it was available.
Commissioner Hatter said he would supply the information
when it was available.
9:15:36 AM
Commissioner Hatter directed committee attention to Slide
20, which listed the causes for decreased activity in the
cargo market:
· The global economy………….
· Other risk factors:
o Fleet mix
o Potential competitor airports
o Perceptions that operating at/through AIAS
doesn't "pencil"
· We aggressively and collaboratively manage those
factors within out control, while also proactively
marketing and myth busting
9:17:54 AM
Commissioner Hatter continued to Slide 22, "Fuel Supply":
· Fuel market is entirely private
· 2009 fuel shortage caused by swift and unexpected
recovery in air cargo market
· Some carriers opted to overfly AIAS lacking
confidence in fuel supply
o Fuel price and supply a large part of airline
routing decisions
· New suppliers entered the market
· Private industry is increasing storage
· Status today: low risk of a repeat of 2009
Commissioner Hatter stated that the aviation was a business
enterprise and it was important that customers felt assured
of a readily available fuel supply. He stressed that the
state did not buy, transport, store or dispense fuel for
commercial purposes.
9:20:17 AM
Commissioner Hatter continued to Slide 23, "Competitor
Airports":
· Tough for competitors to overcome our location
· We have liberal cargo transfer options
· However………………Portland, Seattle, Vancouver, Prince
George, other US West Coast airports have all
visited Asia in efforts to recruit cargo business
· We are "right sizing" our response to competition -
emphasize competitive advantage; retain and attract
Commissioner Hatter relayed that the US competitors were
restricted in providing incentives because the Federal
Aviation Administration (FAA) strictly restricted some
activities, such as direct payments to carriers; however,
local governments, and some state governments could. He
believed that the downturn in traffic was not related to
carriers using other airports, but that they were simply
slowing down their activity level.
9:23:11 AM
Commissioner Hatter spoke to Slide 25,
"Preserving/Increasing Cargo Activity":
· Working cooperatively with airlines
· Held Alaska Cargo Summits in 2010, 2011
· Followed up with Asia trips
o Build relational equity and market Alaska
advantages
· Comprehensive AIAS Strategic Planning in 2011
· Implemented Cargo Incentive Program
Commissioner Hatter asserted that the best way to keep
customers was to keep rates and fees competitive. He noted
a 15 percent rate increase implemented in November 2011. He
turned to Slide 26, "Collaborative Relationships:
We're working closely with airline partners to get
through recent traffic downturn. The following is
Alaska Airport Affairs Committee's (AAAC) written
response to AIAS's November 2011 rate increase:
"The State worked collaboratively with the AAAC
Chairs…to determine the most prudent course to
take."
"The Sate has been very collaborative in their
approach…to address the needs of both the
Airlines and the Airport." AAAC Cc-Chairs
9:25:42 AM
Commissioner Hatter stressed the importance of the
operating agreement and of maintaining relational equity
with the 31 signatory carriers when facing possible
downturn in activity.
9:26:35 AM
Commissioner Hatter continued to Slide 27, "Passenger
Activity":
· 550,000 out-of-state and int'l visitors transited
ANC; 85,000 through FAI in 2011
· Japan Airlines winter charters
· Jet Blue initiated ANC-Long Beach
· United announced new Fairbanks-Denver for 2012
· Working with Alaska "Coalitions of the Willing"
· Implemented Passenger Incentive Program
Commissioner Hatter added that passenger activity was not
an area in need of improvement.
9:27:49 AM
Commissioner Hatter discussed Slide 28, "Strategic Planning
& Marketing":
· Systems planning/responses to previous management
reviews
o Strategic Plan (2011)
o Business Plan (2012)
o Human Resource Study (2011/12)
o Marketing Plans/System Branding (Ongoing)
· Proactive communications
o Work with CVB's and EDC's to strategize
opportunities
o Attend passenger and cargo conferences to
promote AIAS
o Pursue Asian carriers
Commissioner Hatter explained that the focus was to market
aviation as a cargo operation and to expand marketing. He
added the department sought to make improvements in
measuring where the state stood in the changing economic
climate and to bring in value added businesses in and
around the airport.
9:29:13 AM
Commissioner Hatter turned to Slide 29, "New Operating
Agreement:
· Negotiate Operating Agreement with Signatory
Airlines
· Existing OA expires June, 2013
· New Capital Improvement Program
· Review rates and fees model
· Review next OA term
Commissioner Hatter shared that the department was in pre-
negotiations with its 31 carriers and was hoping for a
short negotiation timeframe.
9:29:59 AM
Commissioner Hatter discussed Slide 30, "FY13 Aviation
Capital Request":
FAA Airport Improvement Program (AIP) Legislative
Authority-Totals $200.7M
· AIAS - $14.1M
· Central Region - $75.1M
· Northern Region - $63.1M
· Southeast Region - $13.4M
· Statewide - $35M
Non-Federal Funding
· AIAS Airport Revenue Funds - $.8M
· AIAS Construction Bond Funds - $16.8M
· GF Match for AIP Projects - $11.7M
· GF Deferred Aviation Maintenance - $3.5M
· GF for Umiat Airport Survey & Planning - $.25M
State-Federal Partnerships
· Statewide Digital Mapping Initiative - $12.2M
Fed/$3.7M GF
· Alaska Aviation Safety Project/Flight Simulation
Training - $1.5M Fed/$1M GF
Co-Chair Stedman stated that the department would be called
to committee for further capital budget discussions and
should present projections at that time.
9:30:46 AM
Commissioner Hatter concluded with Slide 31, "Takeaways":
· Two Airports - One System
· Self-sustaining - no general funds
· Business-centric: rates and fees and self-supporting
bonds
· Economic engine of regional, state, and global
significance
· Critical aviation enabler in our nation's most
aviation-centric state
· Working cooperatively with the airlines - they
shoulder the financial risk - unilateral state
action puts this relationship at risk
· Aggressive strategic planning to protect and enhance
our system
· Great people doing great things for our state
9:31:42 AM
Co-Chair Stedman requested further elaboration concerning
the 2012 projections.
Commissioner Hatter said he would provide the numbers as
soon as they were available.
9:32:21 AM
Senator Thomas queried the economic impact on the aviation
industry of the downsizing, and possible eventual closing,
of Eielson Air Force Base.
9:33:07 AM
Commissioner Hatter assured the committee he would provide
the information. He stated that master planning had already
begun in Fairbanks.
9:33:33 AM
Co-Chair Stedman turned the gavel over to Co-Chair Hoffman.
CHRISTOPHER AADNESEN, PRESIDENT & CEO, ALASKA RAILROAD
CORPORATION, introduced the presentation, "Senate Finance
Committee Briefing: February 10, 2012." He turned to Slide
3, "Alaska Railroad Corporation":
· Railroad built by the federal government (1914-1923)
· Purchased by the State of Alaska for $22 million in
January 1985
· Self-supporting, State-owned corporation
· Seven-member Board of Directors appointed by
Governor
· Full-service passenger and freight railroad serving
ports and communities from the Gulf of Alaska to
Fairbanks
· Supports 3,000 jobs and $150 million in payroll
across the State.
9:35:11 AM
Commissioner Aadnesen discussed Slide 4, "Alaska Railroad
Quick Facts"(copy on file). He pointed out that the union
population made up a considerable amount of the total
number of railroad employees. He continued to Slide 5,
which contained a pie chart that detailed the 2011 sources
of preliminary and unaudited customer revenue for the
railroad: Freight, 70 percent; Passenger, 16 percent; Real
Estate, 14 percent; Other, 1 percent. He turned to Slide 6,
which contained illustrations pertaining to freight
business commodities:
· Logs
· Gravel
· Oilfield pipe
· Petroleum
· Military
· Coal
· Interstate Barge
· Trailers
· Moved 6.2 million tons of freight overall in 2011,
compared to 6.3 million tons in 2010 (1.6 percent
decrease)
· 2012: Anticipate 8.5 percent overall freight growth
over 2011
· Heavily reliant on three primary commodities
Commissioner Aadnesen stated that not many logs had been
moved in recent years.
9:35:58 AM
Commissioner Aadnesen reiterated that the freight business
had been fairly flat in 2011, but that growth was expected.
9:36:37 AM
Commissioner Aadnesen discussed Slide 7, "Passenger
Business":
· Moved 412,000 passengers in 2011, compared to
405,000 in 2010 (2 percent increase)
· Includes both ARRC trains and cruise partner
movements
· 2012: Anticipate 9.6 percent passenger growth over
2011
· Makes ARRC eligible for Federal Transit
Administration formula funds
9:36:55 AM
Commissioner Aadnesen turned to Slide 8, "Real Estate":
· Property Development
· Leases and Permits
· Dockage and Wharfage
· Facilities Maintenance and Management
· Revenue from Real Estate activities are key
component to ARRC being self-sustaining
o 2011: 62 percent of corporate net income
derived from real estate
(preliminary/unaudited)
Commissioner Aadnesen added that he the railroad managed 36
thousand acres of state land and two docks.
9:37:30 AM
BILL O'LEARY, CHIEF FINANCIAL OFFICER & VICE PRESIDENT FOR
FINANCE, ALASKA RAILROAD CORPORATION, presented Slide 9,
"Capital Funding Sources":
· ARRC Earnings
o Provides required match for federal funds
o Essential for freight-related improvements
· USDOT/Federal Transit Administration
o Formula Funds used for projects and bond
repayment
o 9-20 percent ARRC Match Required
· Other Federal Agencies - (Dept. of Defense, FEMA,
FHWA, FRA, Homeland Security, ect.)
· Federal funds allocated to ARRC do not affect
federal funding for other state transportation
projects
· ARRC federal match is not from State of Alaska
general fund; match derived solely from ARRC
earnings
9:38:02 AM
Commissioner O'Leary turned to Slide 11, "Balance Sheet
Highlights: Assets/Debt," which contained two bar graphs
depicting in millions total assets and total debt. He noted
that the railroad ran on a calendar year rather than a
fiscal year. He pointed out to the committee that assets
continued to grow and debt maintained at a manageable level.
9:39:13 AM
Commissioner O'Leary continued to Slide 12, "Balance Sheet
Highlights: Liquidity," which contained two bar graphs
illustrating the current ratio calculated by dividing
current assets and current liabilities, and the working
capital calculated by subtracting current liabilities from
current assets.
9:39:50 AM
Commissioner O'Leary turned to Slide 13, "Benefit Trust
Funds":
· ARRC is plan sponsor of two benefit trust funds
o Defined Benefit (DB) pension fund: ~$95 million
assets
o Retiree medical fund: ~$35 million assets
· Both plans financially sound
o DB pension: 96 percent funded as of 1/1/11
o Retiree medical: 135 percent funded as of
1/1/11
9:40:20 AM
Commissioner O'Leary explained Slide 15, "Recent History,"
which contained a bar graph illustrating net income and
adjusted operating income history. He stated that beginning
2006 the railroad had experienced a loss on their core train
operations. He said that in 2009 the organization downsized,
which had resulted in more operational efficiency.
9:41:33 AM
Commissioner O'Leary spoke to Slide 16, "2011 Financial
Snapshot":
· 2011 Plan - guarded optimism about revenue recovery
· 2011 Actuals did not meet early expectations
o Petroleum growth did not materialize, offset
somewhat by coal, Trailer on Flat Car (TOFC)
and Interline Barge hauls
o Passenger revenue performed better than
anticipated
o Solid expense control partially offset by
rising fuel costs
o Boost from tax credit legislation approved by
Congress
· Still closing 2011's books - preliminary numbers
expected mid-February
o Corporate net earnings not anticipated to be
markedly different than 2010
o Positive earnings from train operations
anticipated (not seen since 2005)
o Audit to be completed in March 2011
9:42:25 AM
Commissioner O'Leary discussed Slide 17, "Freight &
Passenger Revenues: 2010-2012 (Budget)," which detailed what
the anticipated budget would be for both freight and
passengers; $105.5 and $24.9, respectively.
9:42:57 AM
Commissioner O'Leary turned to Slide 18, "2012 Sources of
Freight Revenue," which was a pie chart illustrating the
different revenue sources: Petroleum, 29 percent; Interline
ARMS, 23 percent; Coal, Export, 16 percent; Cola, Local, 8
percent; Gravel, 7 percent; TOFC, 7 percent; COFC, 4
percent; Interline, CN, 3 percent; Other, 3 percent.
9:43:57 AM
Commissioner O'Leary continued to Slides 19 through 32,
which was a series of graphs and charts that illustrated
individual lines of business pertaining to freight and
passenger activity. He directed attention to Slide 20, which
contained a bar graph illustrating petroleum gallons shipped
from 1994 to 2012. He felt that the slide encapsulated the
financial life of the railroad over the 18 years.
9:44:11 AM
Commissioner O'Leary noted the marked drop-off in 2005 and
2006. He stated that 2010 through 2012 continued to be lower
than the peak in 2003. He noted that Fling Hills Resources,
a refinery in North Pole, would be renegotiating its royalty
contract with the state in 2014.
9:45:13 AM
Commissioner O'Leary turned to Slide 21, "Changing ARRC
Dependence on Petroleum Haul," which contained two pie
charts that showed how the railroads dependence on Flint
Hills had changed since 2008. He stated that revenue
diversification was a goal for the railroad.
9:46:27 AM
Commissioner O'Leary continued to Slide 22, "Freight
Revenue - ARMS Barge." He explained that the barge took rail
cars and containers from the Seattle area to Whittier, where
they were offloaded and taken to primarily Anchorage or
Fairbanks. He added the revenue depended heavily on oil and
gas activity on the North Slope.
9:47:12 AM
Commissioner O'Leary discussed Slide 24, "Freight Revenue -
CN Barge." He noted that the drop in revenue for 2011 was
due to 4 missed voyages, he asserted that the numbers would
increase in 2012.
9:47:39 AM
Commissioner O'Leary spoke Slide 25, "Freight Revenue -
ICOFC." He explained that the Interline container on flat
car (ICOFC) were container shipments on ARMS Barge from
Whittier to Anchorage and Fairbanks. He said that the drop
in 2010 was related to a customer moving their business off
of the barge and directly into Seward.
9:48:11 AM
Commissioner O'Leary discussed Slide 26, "Freight Revenue -
Export Coal." He stated that the railroad saw significant
growth potential in this area because of a strong worldwide
demand for Alaskan coal. He continued to Slide 27, "Freight
Revenue - Local Coal," which charted that coal hauls from
Healy, into the interior, and up to Fairbanks including
military bases. He noted that the numbers tended to stay
level over the years.
9:49:16 AM
Commissioner O'Leary turned to Slide 28, "Freight Revenue -
TOFC/COFC," which was a bar graph illustrating trailers and
containers moved between Seward, Anchorage and Fairbanks. He
relayed that the 2012 budget number was purposefully
conservative.
9:49:51 AM
Commissioner O'Leary spoke to Slide 29, which detailed the
freight revenue pertaining to the gravel haul. The slide
listed the aggregate products moved from Mat-Su Valley to
Anchorage by Anchorage Sand & Gravel, Granite Construction,
and Quality Asphalt Paving.
9:50:13 AM
Commissioner O'Leary turned to Slide 30, which charted the
miscellaneous or "catch all" revenue; generally railcar
revenue and limited miscellaneous revenue that did not fit
into other revenue lines. He shared that in 2011 several
military moves improved the financial picture.
9:50:36 AM
Commissioner O'Leary explained Slide 31, which shifted to
the passenger revenue numbers. He indicated they were
expecting some very good numbers from 2012.
9:51:46 AM
Commissioner O'Leary turned to Slide 32, which illustrated
the passenger counts for the railroad versus cruise line
railcars. The chart indicated a 50/50 split in 2011.
9:52:14 AM
Commissioner O'Leary turned to Slide 33, "2012 Outlook -
Operating Budget":
· ARRC financial situation still fragile
· Revenue growth planned, but markedly
uncertain/expense pressures persist
o Export Coal-string global demand, tempered by
environmental issues, and capacity constraints
o Interline business growth potential
o Flat-line petroleum haul level planned
o Moderate passenger growth seen: independents and
return of Princess ship
o Fuel, benefit cost increases dragging on bottom
line
· ARRC Board approved earnings budget of $15.4 million
o $6.4 million net income from core train operations
planned
o Contingency plans in place if revenue does not
materialize
9:54:22 AM
Commissioner O'Leary turned to Slide 34, "2012 Outlook -
Capital Budget":
· Approximately $55.4 million in total funding planned
for capital projects:
o Federal Formula and Bond funds - $26.3 million
o Other Federal funds/litigation settlement - $5.7
million
o Cash flow from earnings - $23.4 million
· Program primarily maintains/upgrades existing
infrastructure
o Concludes seven-year accelerated track
rehabilitation program - $31 million
o Continues the development of Positive Train
Control technology - $5 million
o Continues vehicle and equipment replacement
program - $3.3 million
o Continues bridge rehabilitation program - $3
million
9:56:15 AM
Commissioner Aadnesen turned to Side 35,
"Challenges/Risks":
· Federal Surface Transportation Reauthorization/FTA
Formula Funds
o $36 million annually at risk
o Key Fund source for ARRC's continued viability in
current form
o Sole security for $137 million in outstanding
bonds
o Draconian changes to corporation necessary should
certain proposals in Congress move forward
· Positive Train Control
o Unfunded federal mandate with remarkably
aggressive implementation timeline requirements
o Over $45 million spent to-date, with at least
another $70 million to go
o Technology development program designed to prevent
collisions, unauthorized train movements, and
other human factor errors.
· Strategic initiatives developed and in various
stages of implementation to address these and other
identified challenges/risks
o Joint Board/management strategic planning process
9:59:16 AM
Commissioner Aadnesen discussed Slide 36, "Strategic
Initiatives":
· Integrated Safety Management Initiative
· Maintain Eligibility for Federal Transit
Administration Formula Programs
· Protect Existing Revenue Base and Grow our Business
· Customer and Community Relationships
· Economic Development of State
· Cost Containment Initiatives and Technology
Initiatives
· Mitigate Impact of Spend-Out of Federal Transit
Administration Bond Funds
10:02:29 AM
Co-Chair Hoffman queried the railroads plans for long-term
maintenance on the Port MacKenzie and Northern Railroad
extensions.
Commissioner Aadnesen responded that once they were built
the traffic across each of the tracks would be light. He
felt that it would take $150,000 per year to fund the
maintenance until enough current income from train
operations could pay for maintenance. He relayed that when
Port MacKenzie was completed it was expected to support
traffic immediately.
10:03:46 AM
Co-Chair Stedman asked if there were any forward contracts
or letters of interest associated with Point MacKenzie. He
stated that the finances indicated that the railroad was in
the red for cash flow from operations.
Commissioner Aadnesen replied that the port should be in
place within 3 years, at which time it was expected to
service a small amount of traffic. The traffic as not
anticipated to cover expenses; expenses would come directly
out of the operating funds. He stated that there were no
letters of interest or contracts, but that the borough had
been in discussions with Usibelli Mine concerning the
transport of coal.
10:05:32 AM
Co-Chair Stedman asked any financial modeling had been done.
He understood that the plan for the railroad included the
shifting of, but not additional, funds.
Commissioner Aadnesen responded that they had not done any
financial models. He said that the borough had done all of
the financial planning. He said that the railroad was the
program manager, and was building, but had yet to even
acquire the right-of-way.
10:06:12 AM
Co-Chair Hoffman asked if the borough had shared any of its
financial projections with the railroad.
Commissioner Aadnesen replied yes. He noted that the
projections had been shared with the committee in 2011.
10:06:36 AM
Senator Egan understood that the railroad did not own land
in the Port MacKenzie area.
Commissioner Aadnesen replied that the railroad did not
currently own land in the area but that discussions were
ongoing. He shared that there had been some disagreement
concerning what that future model for the port should look
like. He relayed that there was a certain amount of revenue
that went with owning the railroad right-of-way.
10:07:29 AM
Senator Egan asked who would produce the steel for the
Tanana River Bridge.
Commissioner Aadnesen responded that 20 percent of the steel
was from China and the rest was domestic.
10:08:07 AM
Senator Thomas requested information regarding the potential
impact of the downsizing or closure of Eielson Air Force
base. He added a request for dollar figures that related the
tonnage indicated in Slides 20, 23, 26, and 27.
Commissioner Aadnesen responded that he would provide the
information.
10:08:59 AM
Co-Chair Hoffman turned the gavel back over to Co-Chair
Stedman
ADJOURNMENT
10:09:13 AM
The meeting was adjourned at 10:09 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Senate Finance Draft 2012_hatter_ver7.pptx |
SFIN 2/10/2012 9:00:00 AM |
DOT Aviation Economic Indicators |
| 2012 Program of Projects.pdf |
SFIN 2/10/2012 9:00:00 AM |
ARC Senate Finance Presentation |
| AKRR SEN FIN Presentation.pdf |
SFIN 2/10/2012 9:00:00 AM |
ARC Senate Finance Presentation |
| 2012 Report to the State.pdf |
SFIN 2/10/2012 9:00:00 AM |
ARC Senate Finance Presentation |
| Alaska Railroad 4th QTR Leg Update.pdf |
SFIN 2/10/2012 9:00:00 AM |
ARC Senate Finance Presentation |
| Alaska Railroad Port MacK Status 2-7-12.pdf |
SFIN 2/10/2012 9:00:00 AM |
ARC Senate Finance Presentation |