JOINT MEETING HOUSE SPECIAL COMMITTEE ON INTERNATIONAL TRADE & TOURISM SENATE TRANSPORTATION STANDING COMMITTEE August 5, 1998 10:10 a.m. COMMITTEE CALENDAR OVERSIGHT HEARING ON ANCHORAGE INTERNATIONAL AIRPORT CARGO ISSUES TAPE(S) 98-9, SIDES A & B 98-10, SIDE A CALL TO ORDER Jerry Ward, Chairman, Senate Transportation Standing Committee, convened the joint meeting at 10:10 a.m. He then turned the gavel over to Representative Cowdery, Chairman, House Special Committee on International Trade and Tourism, for the rest of the meeting. PRESENT House Special Committee on International Trade and Tourism members present at the call to order were Representatives Cowdery and Ryan. Representatives Joule and Elton were in attendance via teleconference. Chairman Ward was the only Senate Transportation Committee member present. Representative Rokeberg was also present. SUMMARY OF INFORMATION MORT PLUMB, Director, Anchorage International Airport (AIA), gave a very general briefing of the "Cargo Master Plan," how it is updated and when it was last published. Mr. Plumb also gave an explanation of the "Needs Assessment for Cargo," and how that went out for RFP bids and the time line associated with that. Along with Mr. Plumb was Tom Middendorf, Director of Planning at the AIA. Mr. Plumb discussed the LOI funding and how they see themselves positioned in the future for more federal money. The topic of wetland issues and development of that was mentioned and somewhat explained, although this seems to still be in the preliminary stages according to the airport. The airport is active in pursuing AFCO and ARIS and other developers as part of the cargo facilities overall big picture. Mr. Plumb explained the bidding time line and process where MAPCO-LYNXS acquired the latest bid for cargo facilities. Kulis Air Guard property currently does not conflict with any future development plans the airport has. The Airport Capital Improvement Program was just approved by the airlines. These will be the projects the airport will present to the legislature next year for approval. DENNIS BIRD, Managing Director, Federal Express, offered that the current administration at the airport was very accommodating to them. He explained that Anchorage is a major hub in connecting routes. Federal Express will be opening their new 140,000 square foot cargo facility on August 31. Federal Express is able to "add- value" to the cargo industry in Anchorage as they take items through the custom clearance process in Anchorage during the plane's down time. Federal Express still does have room to expand their current facility. The Asian crisis is not necessarily affecting their business in a dramatic fashion. Federal Express currently employs over 1,000 people throughout Alaska. KEN LYTHGOE, General Manager, MAPCO-Lyns Project, was hired in December, 1997, specifically for this project. He stated that preliminary site construction is to begin soon. Their goal is to have the facility finished in December, 1999, or January, 2000. To date, they have interest but no signed leases for tenants. JEFF COOK, MAPCO, touched on the fuel pipeline to the airport. This is a project they should be able to move ahead with in October, 1998. They will be using Texaco tank facilities at the port. Committee members and other legislators asked the presenters some questions, most of which were answered; however, some were not and will so be done in written form. 1. Chairman Ward requested that the individual names of property owners, who may be affected by land sales in wetland mitigation area, be supplied to him. 2. Representative Ryan requested a public comment period be held regarding the Cargo Master Plan Final Draft. Mort Cook confirmed that would be done. 3. Representative Ryan requested that the airport provide an estimated time line regarding all projects that are currently underway or will be getting underway. 4. Representative Rokeberg asked Ken Lythgoe to make a presentation to the Turnagain Community Council on the new MAPCO-LYNXS facility construction project. Mr. Lythgoe said he would. 5. Chairman Cowdery requested that the airport circulate all reports and studies done for the benefit of the airport to the legislature in the future, at least to the House and Senate Transportation Standing Committees, and the House Special Committee on International Trade and Tourism. 6. Chairman Cowdery requested a written update on lease standings with AFCO and ARIS. Chairman Cowdery said the hearing record will remain open for 30 days, through September 4, 1998. All questions and concerns should be addressed within this time. COMMITTEE ACTION The committees took no action. ADJOURNMENT CHAIRMAN COWDERY adjourned the joint meeting at 11:57 a.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 130 Seward Street, Suite 211, Juneau, Alaska 99801-1182, (907) 465-2214, and after adjournment of the second session of the Twentieth Alaska State Legislature, in the Legislative Reference Library.