University to increase engineering graduates

Engineering is one of the fastest-growing fields of employment in Alaska and demand is likely to outstrip supply for some time to come.For the short term, federal funding for transportation and defense projects is likely to keep business brisk for providers of engineering services and for engineers.In the long term, the demographic time bomb that will affect the entire work force -- a decline in the numbers of young people entering universities -- will affect engineering as well as other professions, according to Tom Miller, interim director of the University of Alaska Anchorage’s School of Engineering.For its part, the University of Alaska is doing its best to ramp up engineering programs on all three of its main campuses in Fairbanks, Anchorage and Juneau, Miller said. For years Alaska-based engineering firms have had a tough time finding qualified staff.If the state university can produce more people trained in the various engineering disciplines, private sector recruiting costs will fall, he said. There’s also a correlation that has been documented between economic development in a region and the number of people there who are educated and trained in sciences and engineering.More people with university degrees in science and engineering seems to translate to a faster-growing, more prosperous economy, Miller said.Within the state, the University of Alaska Fairbanks has been the backbone of the engineering program, with undergraduate and graduate programs in electrical, mechanical, civil, petroleum and minerals engineering.The University of Alaska Anchorage has had a graduate program in engineering management and an undergraduate civil engineering program for years. An associate degree program is also offered in geomatics, dealing with surveying, geographic information systems and related fields.A collaborative program between the Anchorage and Fairbanks campuses began in 1997. The program allows students in mechanical and electrical engineering to take their first two years in Anchorage and the final two years at the Fairbanks campus.Graduate-level engineering programs in Anchorage have also been expanded. Master’s programs are now offered in civil and environmental quality engineering and in arctic engineering, a subset of civil specializing in cold regions.An effort is also now underway to expand engineering programs to the University of Alaska Southeast in Juneau. What’s being considered there is a focus on transportation engineering."The university is doing some good things in engineering," Miller said.University of Alaska Anchorage, for example, has developed an innovative program for minority, mainly Alaska Native students in engineering and science that is reporting success.Herb Schroeder, a former civil engineer for VECO Alaska Inc., a local construction and oil service company, is a UAA associate professor in charge of the Alaska Native Science and Engineering Program. The most notable accomplishment of the program, now 5 years old, is that 70 percent of the students are still in the undergraduate engineering program three and four years after starting, a striking difference with the national average of 27 percent for Native Americans and about 35 percent for all students in engineering."Herb is really onto something here. There’s something significant going on," said Miller.Schroeder is now working to find ways to apply the program’s successes to the entire university. "The techniques he is developing to retain Alaska Native students in engineering and sciences, very difficult areas of study, can be applied to all fields," Miller said.Another innovative thing the program is doing is reaching out to rural high schools to stimulate an early interest in science and engineering.A National Science Foundation grant has now allowed the program to be expanded to the Fairbanks campus and also to First American students at the University of Hawaii and the University of Washington.UAA’s School of Engineering is also reaching out to local employers to determine their needs. One recent survey, for example, found a need for computer systems engineers, or people with training in both electrical engineering and computer science, Miller said.These skills are needed across a broad range of industries. One example is in health care, Miller said. This is a real growth field, where a high degree of training and skill is required to operate and maintain sophisticated biomedical instruments and equipment, he said.UAA is now trying to determine how many people are now employed as technicians in jobs that normally require an engineering degree, Miller said. The university could offer these people a way to upgrade their skills and obtain a degree.The profession faces big challenges, however. In an effort to increase the supply of engineers, one of the problems facing all universities, not just Alaska’s, is improving the dismal retention rate in engineering schools, Miller said.On a national average, only about 35 percent, about one in three, students who enter university engineering programs finish their programs. Almost all of them graduate, but with degrees in other fields.Why do so many beginning engineering studies switch to other fields? Partly because studying engineering is hard work and the program is long, Miller believes.While it’s possible to get an undergraduate degree in engineering in four years, it means taking five to six classes per semester, he said. This translates to workweeks of 60 to 80 hours."You have to be really committed to be working at the library when all your friends are out playing," Miller said. Most engineering students need four and a half or even five years to finish.The payoff comes after finishing school and an engineering graduate lands a good job and begins a rewarding career.But it’s hard for an 18-year-old beginning university student to see that, Miller said. It’s possible in other fields to take general exploratory courses during the freshman and sophomore years and then specialize, to get a degree in, for example, business or education.That’s not so in engineering, Miller said. Engineering studies begin in the first year.Given these challenges, there’s a lot of thought being given in engineering schools about how to make these programs more attractive. Some thought is being given to "outcome based" curriculums, where progress through a program is based less on "seat time" in classes and more on demonstration of proficiency at various levels.This has to be done without diminishing the quality of engineering education, however. "One difference between engineering and other fields, like business, is that your work affects life and safety," Miller said. "There are real risks in decisions made by an underqualified engineer."

Delta Junction stunned by veto of loan

DELTA JUNCTION -- Gov. Tony Knowles’ veto of a $1 million interest-free loan to the city of Delta Junction caught city officials off guard.The loan would have allowed the city to finish paying its $1.1 million breach-of-contract settlement with Allvest Inc. and Delta Corrections Corp. stemming from a failed effort to build a private prison at Fort Greely. The money was due July 1.Gov. Tony Knowles signed into law a $2.4 billion budget that did not include a legislative request for the $1 million loan."I don’t understand how we’ve been such an evil community we can’t even get a loan," said Councilman Lou Heinbockel.Councilman Mark Weller said some of the council members joked about a possible veto as they waited nearly a month for the governor to take action, but they didn’t come up with contingency plans."We could not fathom a loan would be cut from a budget," Weller said.Knowles’ spokeswoman Julie Penn said a provision in the loan bill would have converted the loan to a grant if the city became part of an organized borough. A state bailout of a city’s lawsuit could set a bad precedent, she said."The state was not a party to the litigation," Penn said.But Delta officials say the state did have a role in what transpired.Allvest had brokered a deal with the Delta Community Coalition organized to look for alternative uses for Fort Greely Army Post, which was slated for closure. Because the coalition was not a government entity, the state told the city it would have to sign any agreements.After the deal went sour, some legislators pushed the city to settle out of court, Heinbockel said."Certain key legislators convinced the city to settle with Allvest with the veiled promise, ’We’ll bail you out,’ " he said.Heinbockel said one thing is clear: The city is in default."I don’t know what’s going to happen from here," Heinbockel said. "I know one thing. We don’t have the $1 million."

Earnest money agreements lay out terms of home sales

When a prospective buyer of unimproved or improved real estate agrees to purchase that real estate, the buyer and seller normally execute a contract, typically called an Earnest Money Receipt and Agreement to Purchase. The agreement sets forth the terms under which the buyer agrees to purchase and the seller agrees to sell the relevant real property.Upon the closing of the earnest money agreement, additional documents implementing the transaction are executed, delivered and in some cases recorded.Like all contracts, among the key features of an earnest money agreement from a contract law point of view are an offer, typically made by the buyer to the seller, the acceptance of the offer, and consideration or value to support the mutual promises of the parties. Also of particular significance in an earnest money agreement are the conditions to the parties’ respective duties to perform the contract and complete the conveyance of the real estate.There are certain aspects of real estate earnest money agreements that are of key importance in nearly any transaction. They include the following:PriceThe earnest money agreement must set forth the price for the property and whether it is payable in full in cash on closing or on a deferred basis with the seller financing a portion of the purchase price.In the case of seller financing, the terms of the purchase money loan should be set forth in detail, including the amount of the loan, the term of the loan, the interest rate and the amount of the periodic, usually monthly payments.The description of the purchase money loan should also set forth whether the loan will be secured most likely via a first priority purchase money deed of trust, whether the note will be escrowed at a bank escrow company and in a commercial deal, whether the note can be prepaid without penalty.ConditionsOne of the most common and significant conditions required to close the transaction is often the procurement of financing to purchase the property. Generally, the buyer’s procurement of third party financing is set forth as a condition to the buyer’s duty to close. It is prudent to specify in as much detail as possible the terms of the lending facility that the buyer desires to procure.InspectionsEarnest money agreements often provide that the buyer’s duty to proceed is also conditioned upon the completion of a satisfactory inspection of the property by the buyer, the buyer’s agents or the buyer’s experts. Generally those inspections must be completed within a relatively certain short time.If the results of the inspections are not acceptable to the buyer, the agreement might provide that the buyer’s duty to proceed is excused. Some agreements, however, give the seller the option to reduce the price of the property by the cost of the relevant repairs.AppraisalAlthough not terribly common, some agreements provide that a condition to the buyer’s obligation to close is the buyer’s receipt of an appraisal of the property showing a value not less than the purchase price.TitleThe earnest money agreement should describe the status of the title to the property that the buyer is expecting to receive. Earnest money agreements may provide, for example, that title shall be clear of liens and encumbrances except any conditions, restrictions, reservations and rights of way easements, and covenants of record.Title insuranceAnother typical condition to the buyer’s duty to close is the receipt at closing of a standard owner’s title insurance policy in a face amount equal to the purchase price insuring the status of the title as described in the earnest money agreement.DeedProperty in Alaska is often conveyed via a statutory warranty deed. Under the Alaska statutes, the language "conveys and warrants" contained in a deed basically means that the title being conveyed is owned outright by the seller, that the seller has the right and power to convey the property, that the property is free from encumbrances except as provided in the deed, and that the seller warrants the buyer will have quiet and peaceable possession of the property.Alternatively, title in Alaska can be conveyed via a quitclaim deed which essentially conveys the seller’s interest in the property, whatever that interest is, to the buyer.Allocation of expensesEarnest money agreements commonly allocate various closing costs and other expenses as between the buyer and seller. For example, escrow closing fees and recording fees are typically split equally by the buyer and seller. The standard owner’s title insurance premium is normally paid by the seller.ClosingThe earnest money agreement should set forth a specific closing date and provide that if the transaction does not close by that date the parties are entitled to exercise whatever remedies the contract might provide.RemediesThe parties have broad discretion in negotiating the remedies available upon any breach of the earnest money agreement. It is not uncommon for an earnest money agreement to provide that if the buyer breaches its obligations under the earnest money agreement, the earnest money deposit is forfeited to the seller.Similarly, if the seller breaches the earnest money agreement, the buyer is normally entitled to a refund of its earnest money deposit.Some agreements, particularly in the residential setting also provide for possible mediation or arbitration of disputes or entitlements to the earnest money deposit.Normally neither residential buyers nor residential sellers are interested in engaging in protracted litigation or being exposed to significant additional damages. It is usually better to unwind the transaction, decide promptly who gets the earnest money deposit, and go on to a better deal.LeasesIn transactions involving rental property, including commercial property, the buyer’s duty to close is often also subject to the receipt of copies of all of the leases pertaining to the property, representations and warranties from the seller as to the existence and continued validity of those leases, and the assignment of the seller’s interest as landlord in those leases to the buyer.DisclosuresIn earnest money agreements pertaining to residential real property, there are certain state and federal statutory concerns that need to be considered. Disclosure statement: Under Alaska law, the seller of residential real property is required prior to the making of an offer by a buyer, to provide the buyer with a particular form of disclosure statement prepared by the Alaska Real Estate Commission pertaining to the condition of the real property.The negligent making of a statement by the seller to the buyer in such a disclosure statement can give rise to a claim for damages, and in the case of a willful misstatement, triple damages might be recoverable by a buyer. However, the buyer can waive in writing the right to receive such a disclosure statement. Lead-based paint warning statement: With regard to housing constructed before 1978, federal law requires that a particular form of warning about the possible hazards of lead-based paint and lead-based paint hazards must be provided to the buyer and the buyer must be provided a ten day period to test for lead-based paint issues. Water wells and septic systems: The Anchorage Municipal Code provides that prior to conveyance of a privately owned water well or on-site wastewater disposal system, the seller shall obtain from the Municipality of Anchorage a certificate of health authority approval. Disclosure of other issues: In the interest of full disclosure, some residential earnest money agreements also go beyond the statutorily prescribed disclosures and identify any particularly noteworthy or notorious circumstances affecting the property.An example would be if the property had been the scene of a serious and well publicized crime. Making such disclosures should help reduce the risk of a claim by the buyer of fraudulent concealment of a potentially material fact.The terms and conditions in an earnest money agreement define, and to a significant degree, set in stone the terms of a commercial or residential real estate transaction. As a result, the preparation and analysis of such earnest money agreements should be approached with as much seriousness and care as the execution of the closing documents that implement and complete the transaction.Frederick J. Odsen is a member of the law firm of Hughes Thorsness Powell Huddleston & Bauman LLC in Anchorage. He can be reached at 907-274-7522.

Sheep Creek Lodge caters to tourists, residents

MILE 88.2 PARKS HIGHWAY -- At Sheep Creek Lodge, a University of North Carolina instructor has taken on a new project. John Kartesz, who has a doctorate in botany and has compiled databases of North American plant life, bought the lodge three years ago and is planning ways to expand the business.The summertime Alaska resident recognizes the importance of the season to his lodge operation, likening it to tourism business on the North Carolina coast."You have to make it from May to September," he said.Although Sheep Creek Lodge is open year-round, business is slow in winter months, when two managers run the business for him, Kartesz said. Poor snowfall for snowmachining kept many riders away last winter. "We really struggled," he said.The lodge, located on the Parks Highway 88 miles north of Anchorage, is a highway landmark between Willow and the Talkeetna cut-off. After a fire the current building was rebuilt in 1986 using 30-inch diameter Alaska white spruce logs from Nenana, Kartesz said.At 10,000 square feet, the new lodge is about three times the size of its predecessor, he said. Sheep Creek Lodge services include a bar and restaurant seating 75 people, a gas station, 15 cabins and guided tours.Kartesz, who serves as director of the university’s North Carolina Biota of North America Program, was attracted to the lodge in the late 1990s. At the time he was returning from research for the National Park Service at Denali National Park and Preserve. Kartesz led the multiyear work, begun in 1996, which created an inventory and computer database of all park plants.One year after discovering the lodge was for sale, Kartesz bought the object of his fascination."I have never seen a building so awe-inspiring as this building," Kartesz said. "It is a grand, beautiful building."Since then he has added features at Sheep Creek Lodge. Last year an upstairs gift shop was created plus five rooms downstairs. Later this year work should be finished on a new shower facility and public restrooms. Also, the lodge owner has acquired 10 new 16-by-20-foot cabins to nestle beside five existing cabins.Kartesz estimates he has invested up to $400,000 in facility upgrades. "We put every penny back into the lodge," he said.As a highway-related tourism business, Kartesz looks for ways to draw more people to the lodge. "We feel we need to expand. There are too many missed opportunities," he said.The property at Sheep Creek Lodge encompasses 25 acres and has an advantage because perimeters border the highway, railroad and creek, Kartesz said.He plans to develop a recreational vehicle park on 12 creekside acres. More than 100 spaces, including full hookups or rough sites, could be built depending on the septic system capacity, he said.During summer, tourism accounts for 90 percent of business, while in winter community residents and visitors from Anchorage, typically snowmachiners, each make up half of overall business, he said. The lodge is open daily except Christmas.Summer tour buses from eight different lines stop at the restaurant and compose an important part of business, Kartesz said. He estimates about 200 to 300 tour buses stop at the lodge each summer, bringing up to 10,000 people.Sheep Creek Lodge employs 19 full- and part-time workers with Kartesz pitching in to cook, wash dishes and greet customers as needed. "It’s a pretty demanding 16-hour day," he said.Of the services the lodge offers, the bar leads in annual gross sales, followed by the restaurant then the gift shop, Kartesz said.So far this year summer Sheep Creek Lodge’s business appears slower than in 2001, probably due to economic concerns in the Lower 48, Kartesz said. However, a Kenai River king salmon fishery closure and subsequent restriction drew fishermen to fish for kings on the Parks Highway, boosting business at the lodge, he said.The run of silver salmon in early August also should bring a wave of lodge customers, he said.Like other tourism businesses, Sheep Creek Lodge is subject to changing customer numbers as a result of various factors."You have peaks and valleys all the time," he said.One effort may smooth those extremes. Kartesz is working with universities to establish the lodge as a biological field station where students can earn credit for summer courses in botany and other studies. Faculty and students would live at the lodge. University of North Carolina faculty members lined up to visit Alaska as soon as Kartesz bought the lodge, he said.Kartesz is negotiating with university officials from UNC, Duke, Harvard and the University of California at Berkeley. He hopes to finalize the arrangement this fall in order to offer it next May.As a college student, Kartesz took a course in hotel management and another in bartending. However, understanding the lodge business and related regulations is a challenge, he said."As a scientist I approach problems in a methodical way," he said. "In the lodge business, there are so many uncertainties."

Residents protest Steese closure

If complaints were dollars, Joe Perkins wouldn’t have a problem maintaining the Steese Highway next winter.Perkins, commissioner of the state Department of Transportation and Public Facilities, has announced cuts in winter road maintenance next year, including on the Steese Highway from Mile Post 44 to Circle, a community of about 100 people, 130 miles northeast of Fairbanks.The cuts to the Steese Highway winter maintenance program and many others throughout the state is the result of the Legislature’s failure to fund the agency’s requested budget, Perkins said. The reductions total just $180,000, but residents in Central and in the nearby smaller towns of Circle City and Circle Hot Springs say the lack of snowplowing will effectively destroy the communities, as the highway is their only link to the rest of the world."This is major, major stuff here," said Circle resident Karen Hamilton. "People are going to lose their homes, and businesses will go under if this goes through."Hamilton along with husband Don have led letter-writing campaigns to the state and federal government, the media and nearly anyone else they think might listen.Letter texts from residents to Perkins and Gov. Tony Knowles are full of capital letters and exclamation points, emphasizing frustration and fear of the highway closure.Strong consensus exists in the communities that residents are being used in a fight between a Democratic administration and a Republican-led Legislature."We all know that this is a political ploy to make the (Republicans) look bad and pawn the blame for these cuts off on them," Don Hamilton wrote in a letter to Perkins.Perkins said he feels the communities’ pain, but says it’s not about politics."It’s horrible what we have to do the Steese and I have great sympathy for everyone," said Perkins, who has read many of the letters from the community and has even visited a Web site established to save the highway’s winter maintenance. "They’re singing to the choir with me. "There is a lot of finger-pointing but the simple fact of the matter is we’re $6.3 million short and we just don’t have it." Perkins said the budget shortfall also will close maintenance stations on the Kenai Peninsula, at Chitina, on the Richardson Highway and on the Denali Highway. Some 70 positions statewide are expected to be cut, including a deputy commissioner.The state’s general fund pays for personnel and maintenance costs. And while those functions were not funded at the level Perkins had hoped, the department’s overall budget increased in the form of more federal construction dollars.Perkins said the agency is prohibited by federal law from using the federal construction dollars for snow removal and other winter maintenance efforts."The bottom line is we’ll enjoy a substantial flow of federal money to build roads, trails, airports and even a restroom," Perkins said. "But cuts in state general funds will deprive us of the ability to properly maintain that infrastructure."Perkins said a remedy to the problem is to increase the state’s gasoline tax from 8 cents a gallon.Alaska has the cheapest gas tax in the nation, Perkins said. Most states tax gasoline anywhere from 15 cents to 23 cents a gallon.For each penny-per-gallon increase to the tax, about $4 million would go into the state’s coffers. Earmarking that money for road maintenance would cure state’s road maintenance shortfall, Perkins said."It’s like having a Cadillac and not having the gas money to drive it," said Cliff Hendrickson, of the state’s expanding road infrastructure but lack of maintenance money.Hendrickson owns Central Electric Inc., the power plant that serves Circle. He said if the road is closed in winter, and folks move out of town, he’ll be out of business.Hendrickson and Hamilton said the state’s budget woes are confusing to most of their neighbors.This summer major repair work is being done on the Steese Highway."What good is a newly paved road to a ghost town?" Hamilton said.Hendrickson said government should look at budgets as a whole and prioritize projects. He points to a government-funded peregrine falcon study under way this summer in the area, which likely cost taxpayers many times what it would take to keep the Steese Highway open in the winter."I like birds," says Hendrickson. "But in these tough times, which is more important: people’s lives or peregrine falcons?"

Alaska senators could regain chairmanships

FAIRBANKS -- Alaska Sens. Ted Stevens and Frank Murkowski could once again serve as chair- men of key committees if Republicans regain control of the Senate, following the November election.Republican U.S. senators decided June 25 not to curtail opportunities for senior colleagues to serve as committee chairmen in the future.The Senate Republican conference, voting at its weekly meeting, approved language that clarifies how it will apply term limits to its chairmen and ranking members.The decision leaves Stevens in line to reclaim the chairmanship of the Senate Appropriations Committee without penalty for his time spent as ranking member of the committee, should Republicans obtain a majority in the coming election.Stevens lost the top spot last year when Sen. James Jeffords of Vermont declared himself an independent and joined the Democratic caucus. Stevens remains ranking member, the top minority position on a committee.Earlier this year, some Republican members, including Pennsylvania Sens. Rick Santorum and Arlen Specter, began asserting that time spent as a ranking member should count against the six-year term limit on chairmanships that the caucus imposed on its members.They based this on an interpretation of the original caucus rule.Others, such as Sen. Gordon Smith, R-Ore., wanted to do away with term limits entirely.The June 25 decision was a good compromise, Stevens said. The version that passed was proposed by Sen. Robert Bennett, R-Utah. The amendment states that "a senator shall serve no more than six years, cumulatively, as chairman of the same standing committee."Time served as ranking member will not be counted as time served as chairman.Stevens assumed the reins of the Appropriations Committee in 1997 after Republicans won a majority in the 1996 elections. He had served about four and a half years as chairman when the Democrats regained control last year.Murkowski is ranking member of the Senate Energy and Natural Resources Committee. He obtained that post in 1995 and held it until control shifted to Democrats in June last year. Murkowski is currently in the race for Alaska governor. If he loses the race and remains in the Senate, he would have only about six months remaining in his chairmanship if Republicans regain control this fall.

Executive took media colossus Vivendi on wild ride

PARIS -- His drive and dreams were huge. Take a workaday French utilities company with a dull-as-dishwater name and transform it into a zippy media giant plugged into customers worldwide.The man was Jean-Marie Messier, a boyish-looking French former civil servant turned businessman. His brainchild was Vivendi Universal, a media and entertainment behemoth. Now, Messier says he’s resigning, forced out by shareholders who have come to doubt whether his vision can work.Messier announced his departure in an interview published July 2 in the French daily Le Figaro. For him and for Vivendi, it marked the end of a wild ride.In six short years, he remolded France’s Compagnie Generale des Eaux -- the General Water Company -- into a complex empire of Hollywood film studios, Internet, mobile phone and music ventures, TV networks and publishing houses.The dull name was changed to the sparkier Vivendi, and then to Vivendi Universal after a $30 billion merger in 2000 with Seagram Co., owner of the Universal movie and music studios.The transformation saw Messier, a 45-year-old father of five, hailed as a new icon of French business, even nicknamed "Master of the World."Messier trained as a civil servant at the Ecole Nationale d’Administration, a prestigious school that has produced many members of the French political elite.Although still in his twenties, he was made a financial inspector at the Finance Ministry and then adviser to Finance Minister Edouard Balladur. But he quit government for investment banking in 1988 and took over Compagnie Generale des Eaux in 1996.According to Messier’s vision of an interconnected business world, Vivendi was meant to work something like this:A customer sees a Universal movie and likes it so much, he buys the soundtrack and book. The soundtrack is sung by one of the many singers in Vivendi’s stable -- say Elton John or Eminem -- and a Vivendi publishing house puts out the book.Finally, the customer chats about the movie with friends, on a Vivendi-run mobile phone network, and reads about its stars on a Vivendi Internet site."Our strategy is to be No. 1, the leading global media and communications company of the digital age, to provide consumers with the best content anywhere, at any time," Messier said at a meeting of shareholders on April 24 this year."Our strategy makes sense," he said. "We are building a new kind of company, a truly international media and communications company, the like of which has never been seen before."But investors weren’t so sure. They grew nervous about Messier’s ability to mesh Vivendi’s businesses, and about the firm’s mounting debts. Jitters increased in March, when Vivendi reported a massive net loss in 2001 of 13.6 billion euro ($11.81 billion at the exchange rate then) -- the largest ever amassed by a French company.Vivendi shares and Messier’s reputation as a visionary took a beating."He took far too many risks," said Frederic Parrat, a professor of management at the University of Paris."In the General Water Company, he had a group that had no debts, that was a real pearl ... He transformed this pearl into a firm that is heavily in debt and in dire circumstances."Parrat said he owns several hundred Vivendi shares and that they have lost 80 percent of their value.Nor is it just Messier’s business dealings that have raised concerns.In December, Messier scandalized his countrymen by remarking that "the French cultural exception is dead." While seemingly innocuous to outsiders, the comments were seen in France as an attack on the country’s efforts to safeguard its movie industry from competition from Hollywood.Government ministers responded with assurances that culture was a priority and a far-right politician, Bruno Megret, accused Messier of "betraying his country."Messier sparked further outrage in April when he sacked Pierre Lescure, a leading supporter of French film who headed Vivendi’s loss-making television network Canal Plus.At the April shareholders’ meeting, protesters wore T-shirts that said "Messier mega liar" and chanted for his resignation.In late June, Messier was targeted by Les Guignols de l’Info, a popular French television show that uses rubber puppets of public figures to poke fun at them.The show portrayed Messier as an officer aboard the stricken Titanic. Even as the ship sank, he blithely continued assuring passengers that everything was fine.

Highway tourism hits the skids

Fewer visitors each year are reaching Alaska via the highways, and so far this year border crossings show declines or little growth. Instead, more summer visitors travel north aboard cruise ships or airliners.Border crossings from the Alaska Highway and Poker Creek on the Taylor Highway have declined for the past three years. In 1999, 158,472 passengers crossed the border; in 2000 crossings dropped to 156,027. Last year 147,600 passengers crossed at the two outposts.Highway travel to date this year lags behind 2001, according to Tina Lindgren, Alaska Travel Industry Association president.A study released this spring shows summer 2001 highway arrivals ranked a distant third, at 8.6 percent behind domestic air passengers at 45.3 percent and cruise ship travelers at 41.6 percent.For May this year, entries at the Alaska Highway office of U.S. Customs were down 25 percent from 2001 for a total of 9,868. Through June 24, 20,408 people had arrived, compared with June 2001, when 25,247 people entered.This decline is probably due to a national trend of shorter vacations, which allows less time to drive to Alaska, Lindgren said.According to a report issued in mid-June by the State Tourism Office, passengers crossing at Poker Creek were off by 8 percent this May compared with last May. But arrivals at Haines increased 5 percent, and Skagway arrivals were up 8 percent.Historically, July is the busiest month for passenger vehicles to cross the Alaska-Canada border.The summer 2001 visitor survey showed declines in arrivals via the highway, ferry and international airlines between last year and 1999. Cruise arrivals increased, spurring a slight gain in domestic air arrivals, the report noted. The Alaska Visitor Statistics Program survey recorded 1.2 million summer visitors last year, up 1 percent from summer 1999.Of those 1.2 million visitors, 8.6 percent arrived via the highway, according to the study. Last summer 72,900 visitors entered Alaska by personal vehicle while another 9,200 came by tour bus.Despite May’s drop in border crossing numbers, recreational-vehicle traffic has been stronger than other tourism sectors in the Interior, said Deb Hickok, president of the Fairbanks Convention and Visitors Bureau."It’s one of the few sectors I’m hearing is decent," she said.Lindgren said some tour operators are encountering a difficult year. Fairbanks tourism businesses have reported a harder summer than coastal communities, she said. Cruise passengers appear not to be purchasing additional land tours, she said.But some tourism operators may do better, while other areas face challenges. "Things like fishing closures will hurt places like Kenai," she said.One aspect of highway travel is on the rise, Lindgren said. More people are flying to the state and renting vehicles, she said.Tourism along Alaska’s road system, including out-of-state visitors and vacationing Alaskans, is vital to many businesses."If your business is not in one of the larger communities, it’s very important," Lindgren said.Business along Alaska’s roadways includes cruise ship passengers touring via bus, recreational vehicle traffic from in-state residents and visitors, and people relocating by driving the Alaska Highway.Lindgren says Alaska’s short and intense construction season, which coincides with summer tourism, affects highway travel.Customers at Sheep Creek Lodge have told lodge owner John Kartesz they would have made more trips to the area, but didn’t because of construction on the Parks Highway between Big Lake and Nancy Lake.

Princess boosts local firms

The opening of the new 84-room Copper River Princess Wilderness Lodge earlier this summer has boosted business for other tourism operators in the area.Located in the Glennallen and Copper River area, the hotel provides accommodations in a new region for Princess, the Wrangell-St. Elias National Park and Preserve, which is America’s largest national park.The new hotel has been a boon for Glennallen-based Backcountry Connection LLC and Edward Wilson, who has owned the 11-year-old business for two years."Basically, it doubled our business," he said.Backcountry Connection provides shuttle service between Glennallen and Chitina to McCarthy and Kennicott.The company also started a new service that offers historic tours at the McCarthy-Kennicott community, primarily for Princess hotel guests, Wilson said."It’s really going to make our little town boom," he said.One aspect of the additional tourism businesses around the hotel is that the change may reduce some crowding around Denali National Park and Preserve, he said.Mark Keogh, co-owner of Copper River Tours, relocated a tourism business to serve Princess guests. After six years he decided the long-term business opportunities were better alongside the new hotel, Keogh said."Our business is here because of Princess," he said. "There isn’t enough business to support our organization without them here because they bring in the flow of traffic."Copper River Tours offers a three-hour jet boat tour on the Tazlina River and 20 miles down the Copper River, he said. The trip is geared to accommodate all ages, he said.So far this year business has met Keogh’s early season expectations. The lure of the new Princess lodge has proven to be a draw for customers, he said.Keogh also aims to develop business from other travelers as well."We’re real optimistic about the future," he said.

Juneau hospital, union agree to new three-year contract

JUNEAU -- Bartlett Regional Hospital and the union local that represents many of its employees have reached agreement on a new contract that will increase staff pay during the next three years.The hospital’s board of directors June 24 unanimously approved the three-year contract with the International Longshore and Warehouse Union, Alaska Local 200, Health Care Unit 2201. A majority of the bargaining unit members who voted earlier this month also agreed to the contract."Of the voter turnout, 82 percent voted the contract up," said Dony Cryts, bargaining unit president.The unit represents more than 355 of Bartlett’s 440 employees, including those who work in nursing, pharmacy, laboratory, patient access services, housekeeping, medical records, billing, admitting, diagnostic imaging and dietary, along with the Juneau Recovery Hospital. Although negotiations did go to mediation, the bargaining unit is pleased with the outcome, Cryts said."A lot of people put in a lot of work on this," he said.The contract includes a 3 percent wage increase in the first year, a 3.3 percent increase in the second year and a 4 percent increase in the third year for some employees, depending on their position, according to hospital administrators. Other employees will see a $1,000 cash payment the first year, a $1,300 payment the second year and a $1,700 payment in year three, they said.The new contract is now in effect and expires Dec. 31, 2004. Negotiations started in October and concluded in mid-May, according to Mark Beattie, Bartlett’s human resources administrator. Nearly all of the contract’s provisions will apply to all employees, he said. As examples, administrators, supervisors, and information-technology, payroll and maintenance staff are not members of the bargaining unit.For virtually all employees who will receive the cash increase, it is equivalent to or greater than the percentage increase, he said. The pay increases were included in the hospital’s budget this year, he added.Hospital employees also can qualify for wage increases tied to experience and education. In addition, Bartlett evaluates employee wages each year and often makes separate upward adjustments so wages are in line with market demand, he said."The goal on both sides was a contract that was fair to all employees from one end of the pay scale to the other, and fair to the employer," he said. "That is what we were aiming for."In another change, the new contract calls for full-time employees to make a $27 health insurance contribution each pay period in the second year of the contract and $30 per pay period in the third year. Currently, employees are not asked to make that type of payment.Bartlett has faced challenges in recruiting diagnostic-imaging technicians and health-information-management workers who are trained in insurance coding, administrators said. On the plus side, Bartlett has done well in recruiting nursing and pharmacy staff, two other high-demand fields, according to Sheryl Washburn, patient care administrator.Having a contract in place will make recruiting somewhat easier, Washburn said."We certainly recognize that our employees are what makes our organization work. We can’t do it without them," she said.Bartlett is owned by the city of Juneau, but is managed by Tennessee-based Quorum Health Resources.

GCI may feel reverberations from WorldCom

ANCHORAGE -- Troubled WorldCom Inc. holds a 10 percent stake in General Communication Inc. based in Anchorage and provides 16 percent of the Alaska company’s revenues. But it’s not clear whether the huge company’s financial woes will have a major impact on GCI."We’re still digesting what it means," said David Morris, a GCI spokesman. "We have people trying to figure out the impact. A lot of people around the country are doing the same thing."The state of Alaska’s big investment accounts appear to have escaped any impact from the telecommunication giant’s difficulties, however.Alaska’s Permanent Fund Corp. had no shares of WorldCom when the accounting problems surfaced, said Joan Cahill of the fund. The fund had held an interest earlier as part of an index fund handled by Deutsche Asset Management, she said. "When WorldCom fell out of the index, they sold it," she said. The fund also didn’t have any WorldCom bonds, she said.Alaska’s pension funds also appear to be in the clear as far as WorldCom goes."We didn’t have any (WorldCom) in the bond portfolio or in actively managed accounts," said Lee Livermore, chief investment officer for the Department of Revenue. Some of the pension funds may have held some WorldCom stock as part of an index fund, he said.The Revenue Department handles investment for public employee and teacher retirement funds, deferred compensation plans, and the state’s own investments.WorldCom is the nation’s second largest long distance company. On June 25 it reported accounting errors that made it appear the company made nearly $4 billion in revenues that did not exist.For now, Mississippi-based WorldCom is still in business and, Morris notes, "they have paying customers who need to make calls and receive calls. Even if those customers go to another carrier, there’s a possibility we’d still be getting their business."But if WorldCom had to unload its GCI stock quickly, it could have a significant impact on the Alaska company’s stock price.WorldCom announced in November that it planned to unload half of the GCI shares it held then. GCI’s stock had been selling for more than $12 a share. It dropped sharply after the sale announcement and traded mostly in the $8-$10 range for the ensuing six months, as other telecommunications industry problems unfolded.News of WorldCom’s woes drove down the price of GCI stock about $2 per share in the days following the announcement, but it has since regained about $1 per share.WorldCom completed its stock sales in April, Morris said. That cut WorldCom’s stake to about 5 million shares, worth about $33 million as of June 28 and about 10 percent of the company’s common stock.GCI has had a long partnership with WorldCom, the nation’s No. 2 long distance carrier, and its predecessor, MCI.In 1993, the companies signed an agreement for GCI to handle all MCI’s calls to and from Alaska, while MCI handled all of GCI’s long-distance traffic to the Lower 48. MCI and WorldCom have been a substantial part of GCI’s business ever since, bringing in $58.2 million, or 16.3 percent of GCI’s revenues, last year. The contract between the two companies runs through March 2006.GCI did diversify its customer base in the long-distance field shortly after the MCI deal by signing an agreement with Sprint, which got GCI’s international traffic in exchange for using GCI for its Alaska-bound calls. Under that contract, which runs through 2007, GCI received about $37 million in revenues last year.When GCI bought into the cable TV business in 1996, MCI bought an additional $13 million in GCI stock. And last June, GCI obtained WorldCom’s 85 percent interest in the fiber-optic cable system built along the trans-Alaska oil pipeline for preferred stock valued at $10 million.

This week in Alaska business history

Editors note: This Week in Alaska Business History revisits events that shaped our past. Those who cannotremember the past arecondemned to repeat it. George Santayana, 1863-195220 years ago this weekThe Anchorage TimesJuly 7, 1982Rasmuson won’t renew trusteeshipBy Bill WhiteTimes WriterElmer Rasmuson, dean of the Alaska business community, has decided not to seek reappointment as a trustee of the state’s $3.2 billion Alaska Permanent Fund.Rasmuson’s two-year term expired July 1. During that term he served as chairman of the six-member board of trustees, and he more than any other member was credited with helping shape the policies and investment strategy of the fund.Rasmuson is chief stockholder and chairman of the budget and planning committee of National Bank of Alaska, the state’s largest bank.Rasmuson made known his intention not to seek reappointment in a phone call last Wednesday with Gov. Jay Hammond, said Chuck Kleeschulte, the governor’s press secretary.Chief among his reasons is his desire to devote more time to the bank because of a new interstate banking law, sources said.The Anchorage TimesJuly 7, 1982Fishermen vote on new price offerBy Dave CarpenterTimes WriterNAKNEK -- Striking Bristol Bay fishermen were voting this afternoon on a processor’s new price offer that appeared likely to end the area’s longest-ever fishermen’s strike.The offer, from Kenai Packers, would pay fishermen 70 cents a pound for red salmon, down a nickel from last year but 12.6 cents more than Dillingham-area fishermen got when they ended their strike three days ago.The package, which still must be approved by other packers for all fishermen to go to work, also would pay 32 cents a pound for chum salmon, 70 cents for cohos, $1.30 for kings to be frozen and 75 cents for king canneries, with a price for pinks to be negotiated later.10 years ago this weekAlaska Journal of CommerceJuly 13, 1992Legislators take millions from science foundationBy Rose RagsdaleFor the Alaska Journal of CommerceAlaska lawmakers, hungry for spare cash to fund the state’s projected budget deficit, grabbed a $21.5 million pot of surplus funds at the Alaska Science & Technology Foundation.Trouble is the money was not all surplus, says John Sibert, executive director of the foundation.As a result, the guardian of possible economic superstars such as Autogenesis Inc. and LLR Technologies Inc. has entered fiscal 1993 with about half the funds to meet its $4.6 million operating needs and issue another $4 million in new economic development grants as planned."The governor approved our funding request," Sibert said, in an interview last week. "But I don’t think the Legislature understood our budget. This decision means we will fund a number of ongoing grants, but will likely have proposals come to us late in the year that year that we will not be able to fund."The foundation was established in 1988 with an endowment of $100 million.Alaska Journal of CommerceJuly 13, 1992Eagle Hardware lands in AnchorageBy Margaret BaumanAlaska Journal of CommerceWhen Eagle Hardware opens its Anchorage store in November, the 160,000-square-foot store will offer virtual one-stop shopping on 50,000 items, says Dave Heerensperger, chief executive officer."We are excited about Alaska," said Heerensperger, who predicted the store would result in lower hardware prices in the area. "We expect Anchorage and Honolulu to be in our top two to three stores."In our store, the customer won’t have it to wait. We will have it in stock. We will have a $10 million inventory when we open," he said."We will be competitive with Costco and Pace," he said.The sprawling $12 million structure will be leased from Seattle investor Ron Crockett, he said.Heerensperger, 56, said in a recent interview he has been in the hardware business since he was 18. In 1960, he started Eagle Electric and Plumbing in Spokane, Wash. In 1969, he merged the firm into Pay N’Pak and went public, "all the way to the New York Stock Exchange."Before he resigned, Heerensperger was chairman and chief executive officer of Pay N’Pak. In 1987, the company was purchased by CitiBank, in a leveraged buyout.-- Compiled by Ed Bennett.

Calista Corp. subsidiary signs deal with Army

ANCHORAGE -- A Calista Corp. subsidiary has signed a 10-year contract to provide aerospace engineering to the U.S. Army.The military’s $1.1 billion pact with Yulista Management Services is the largest contract in the 30-year history of the Yukon-Kuskokwim Delta regional Native corporation, Calista officials said."This is basically guiding long-range fiscal planning for the corporation," said Matthew Nicolai, president of Calista. "It will benefit the corporation tremendously."The contract to supply technical and engineering support for development of missile systems and aerospace aircraft is a joint venture between Yulista and Science and Engineering Services of Maryland. The companies will work under the name JVYS.The joint venture has its headquarters in Anchorage and will operate at the Army’s Prototype Integration Facility in Huntsville, Ala. The facility provides weapons research for the Department of Defense.Native-owned Yulista is branching out into new territory with the aerospace contract. The government contractor had specialized in calibrating and repairing precision test equipment used by the military."The Army is consolidating its missile and aircraft engineering systems, and we’ll be providing the engineers and technicians to actually build the systems," John Voth, president of Yulista, told The Tundra Drums.The project is expect to employ 300 people at its peak in five years, Voth said.Yulista had revenue of $5.1 million in 2001. The Army contract and a $60 million contract with the U.S. Air Force to calibrate and repair test equipment at nine bases across the country will increase profits in the coming year, according to Voth.The contract is the largest Army contract ever given to an Alaska Native corporation.Calista owns 88 percent of Alaska Newspapers Inc., which publishes seven weeklies around the state.Yulista was formed in 1982 as Calista Professional Services and, later, Village Management Services. The company changed its name to Yulista in 1996, and began focusing on winning government contracts.

Movers & Shakers

Laura Gyfteas has joined the law firm of Pradell and Associates as a paralegal. Gyfteas previously worked as a file clerk and legal secretary for the firm beginning in 1996. Gyfteas most recently was employed as a custom draperies designer at J.C. Penny Co. Inc.Carol E. Lewis has been appointed dean of the University of Alaska Fairbanks School of Agriculture and Land Resources Management and director of the Agricultural and Forestry Experiment Station. Lewis, who has served as interim dean since July 2000, has been a professor at UAF since 1973, serving as department head from 1989 to 1998.Gov. Tony Knowles has appointed Arlene Buxton and Belen Cook to the State Commission for Human Rights. Buxton of Metlakatla has worked for the Annette Islands School District for more than 25 years. Buxton is affiliated with the Tlingit and Haida Tribes of Alaska. Cook of Cordova has served on the boards of Sound Alternatives and the Cordova Chamber of Commerce. Cook has worked with the Ilanka Health Center, Chugachmiut and the Native Village of Eyak.Denali Alaskan Mortgage Co. has hired Theodis Talbert Jr. as a loan officer. Talbert most recently worked as an escrow officer at Pacific Northwest Title of Alaska. Talbert has more than four years experience in the real estate industry including sales, loan processing, escrow processing and escrow closings. Talbert became a licensed real estate agent in 1998.

Diversity key to retirement plans

It seems that this writer has had the following conversation, or one nearly like it, with a seat-mate on virtually very flight Outside over the last few months:Other Passenger: "What do you do?"This Writer: "I am a pension consultant."OP: "Well, you must have a hard time choosing investments for your clients."TW: "No, I don’t do investments. I provide technical advice and guidance for qualified plan sponsors and that does not include any investment advice. I am probably more confused about current market situations than you."OP: "Well, yeah, I work for Big Energy/Communication/Office Equipment Inc. and my 401(k) plan is just doing great."TW: "Really? What’s your secret?"OP: "I invest in company stock with my 401(k) contributions and the company matches it with more company stock. My ’portfolio’ is now worth ’x’ times what I have invested in it."TW: "Your portfolio? What other investments do you have in your 401(k) plan?"OP: "What do you mean?"TW: "Beside your company’s stock, what other investments have you made? Mutual funds? Guaranteed investment contracts? Individual stocks and bonds?"OP: "Well, no, I just have company stock in my account. It is such a great investment. It has done nothing but increase in value since 1994. Well, I guess it did drop in value some earlier this year, but the company is fine and management says that this is just a little bump in the road and our are numbers are really solid. I can get a far better return on my company’s stock than I can on any other investment."TW: "Really?"Well, if the other passenger was an employee of Enron, WorldCom or Xerox, the last few months, or even days with respect to WorldCom or Xerox, have been sobering. That little nest egg is now a lot smaller. However, even without considering what has been happening recently with "cooked books" and "creative accounting" that have dashed investor confidence, inadequate investment diversification has long caused many investors to lose in a big way.Particularly with respect to investments designed for retirement, diversification is absolutely necessary to protect one’s nest egg. Unfortunately, many employees are not in a position to truly evaluate the risk involved in purchasing the stock of one’s own employer, particularly when that is the only investment the individual is making.Although investing solely in company stock may not be as risky as placing all of one’s money on "00" in roulette, there are some striking similarities. By failing to "hedge one’s bets," there is a significantly increasing likelihood of a big loss.Yes, there could also be a big gain, but very few investors appear to have the discipline to sell an investment where there are economic and emotional deposits.Many employees who buy employer stock fail to diversify and pass up opportunities to broaden their portfolios. It can be psychologically difficult to accept the fact that one’s employer is not a good investment at a particular time, or possibly at all, and failure to take action when it is clearly necessary to do so makes the lack of diversification risk even greater.For some employees, selling company stock is akin to being a traitor and there is an unspoken fear that selling of company stock would put the employee out of favor with management. This is sometimes called "herd mentality."Most of the loss in value of Enron stock in employee 401(k) accounts had already occurred when transactions in company stock were blocked during the period Enron was changing 401(k) providers. The employees lost most of the value of their investment in Enron stock during a period where there were no restrictions on their ability to liquidate Enron shares and reinvest in other securities.This writer has frequently advised the other passenger that by investing a significant amount in company stock, there is an even greater risk. The other passenger may not only lose his or her investment, he or she may also be out of a job. Investing only in company stock puts far too many eggs in one basket for any prudent investor.It is very important for an employee who is investing in his company’s stock to exercise a great deal of caution. The best think that employee can do is diversify, diversify, diversify.J. Michael Pruett is president of Cache Pension Services Inc. He can be reached via a-mail at [email protected]

Commission seeks to establish best number of Bristol Bay permits

The Alaska Commercial Fisheries Entry Commission is conducting a study to determine an optimum number of drift gillnet entry permits for Bristol Bay. In April, the commission mailed a survey to a random sample of 440 of 1,885 Bristol Bay drift gill- net permit holders to obtain information on operating costs, investments in the fishery and economic rates of return.The survey also seeks opinions about permit buybacks, how much a permit might be sold for and other issues surrounding the Bristol Bay fishery.Kurt Schelle with the commission said determining an optimum number is very important under Alaska law. "If the optimum number of permits is less than the number of permits currently outstanding in the fishery, then CFEC will be in a position to defend a buyback program should funding become available," he said. "Since the degree of exclusivity in a limited fishery is a legal issue under Alaska’s Constitution, CFEC needs to be able to defend any fleet reduction program should a legal challenge arise," he explained.Response to the survey has been good, with a 67 percent return so far. The sooner the commission receives the surveys still outstanding, the sooner they can begin their analysis of the data. "It is really important for permit holders selected in the random sample to respond so that the study results will be truly accurate and representative," Schelle said.The commission wants to be able to provide preliminary results from the survey in the fall or early winter. The entire optimum number study will probably take at least a year to complete.Salmon good for bonesThere’s more good news on the health front. A calcium compound derived from salmon appears to play an important part in treating osteoporosis in post-menopausal, which tracks fishing industry news, reports that researcher Warren Levy of Unigene Laboratories in Fairfield, N.J., presented the findings at a recent International Osteoporosis Foundation world congress in Lisbon, Portugal.Levy said salmon calcitonin, currently acknowledged as the most powerful form of calcitonin, can deliver significant improvements in the quality of life for osteoporosis patients by reducing bone pain and increasing mobility and function.According to several reports, when administered to women at least five years beyond menopause, calcitonin has been shown to slow bone loss, increase spinal-bone density, and reduce the risk of fractures, a problem often associated with osteoporosis, which causes bones to become brittle.Studies have also indicated that calcitonin has an analgesic effect, reducing bone pain following vertebral fracture even within the first week of taking it.In one research study, a group of women over 75 showed a 62 per cent reduction in the incidence of new backbone fractures. A study under way is examining the effects of salmon calcitonin in 6,000 women over 70. Salmon calcitonin is currently marketed in injectable and nasal spray forms, but alternative methods of administration are also being studied. Unigene is developing both nasal and oral forms of calcitonin.Fish is brain foodResearch in the United Kingdom supports the idea that fish truly is "brain food," finding that women eating oily fish when pregnant promote brain development in their babies.Fish Farming Magazine reports findings by researchers Peter Willatts and Stewart Forsyth at Dundee University that examined links between the consumption during pregnancy of certain long-chain polyunsaturated fats and the brain power of the newborn child. Their results indicate that children do gain in brain development from their mother’s diet.One test measured visual acuity and cognitive abilities in 98 babies at four months of age. The cognitive test involved recording the time babies spent looking at a pattern until they lost interest. Babies with shorter looking times are identified as faster processors. The results showed infants of mothers with higher concentrations of the long-chain fats in their blood had shorter looking times and better visual acuity.Previous studies have found that babies who are faster processors have higher IQ scores in later childhood.The second study looked at the long-term effects of long-chain fats in 147 babies’ diets on their efficiency of processing information at six years of age. The children had all been fed a formula for the first four months of life, half with the fats and half without. At six years the children were tested on picture-matching problems.Children who had received the fats showed faster and more accurate responses than children who had received none. The doctors pointed out that while there were various means of including the fats in the diet, one of the best sources was oily fish such as salmon, tuna, sardines, mackerel and herring.Kodiak-based free-lance writer Laine Welch can be reached via e-mail at [email protected]

Young pits ANWR against ethanol in energy bill debate

FAIRBANKS -- Rep. Don Young, R-Alaska, suggested that House and Senate negotiators should allow oil drilling in the Arctic National Wildlife Refuge if they want him to back tax credits for ethanol additives in gasoline."You want ethanol? I want ANWR," Young said June 27 as a House-Senate conference committee on energy legislation opened.Sen. John Kerry, D-Mass., warned the committee not to put a provision in the bill that would open the Arctic National Wildlife Refuge to oil drilling because the Senate would kill the entire package."I say to my colleagues: If you want a bill, don’t bring it back to the United States Senate to redecide what we’ve already decided," Kerry said.Young didn’t like the sound of that."The idea that they’re going to tell me that we’re not going to talk about ANWR or we’re not going to have a bill, well, I could say the same thing about ethanol," Young said. "Let’s put it right on the table, right now."Young said he is not happy about the ethanol provisions in the Senate version of the energy bill.The tax credits would come out of money for the Highway Trust Fund, the main federal pot from which road work is funded. As chairman of the Transportation and Infrastructure Committee, it is Young’s job to oversee the spending of the highway money, and he is fiercely protective of the dollars.Young questioned why ethanol-fueled vehicles, which put the same demand on roadbeds as any others, should be given a preferential tax rate."We’re about to take and subsidize an industry to the tune of $500 billion," he said. The Senate approved the ethanol tax credit at the urging of members who said it is a renewable, clean-burning fuel.But taking the money out of the Highway Trust Fund is like cutting an artery, drinking the blood and declaring that "we’re making progress," Young said.Nevertheless, Young said, a conference committee is a "two-way street."The House bill contains language opening ANWR to oil drilling. The Senate version does not.Young said conference committee members who are inclined to vote against ANWR drilling should have the "decency to go and see it ... instead of sitting in a little castle and breathing that rarefied air."Sen. Frank Murkowski, R-Alaska, wrote a letter inviting conferees to meet in Kaktovik, the village located on the northern edge of ANWR’s coastal plain.

Kiewit Pacific lands Parks-Glenn interchange contract

A Nebraska firm has won a $44 million contract for the design and construction of an interchange linking the Glenn and Parks highways in the Matanuska-Susitna Borough.Kiewit Pacific Co.’s wasn’t the cheapest proposal out of three submitted but was rated the "best value" based on cost and design criteria, said Tom Dougherty, project manager for the state Department of Transportation and Public Facilities.Bids ranged in price from $43,090,000 to $56 million. Kiewit Construction bid $44,035,000, Dougherty said.Construction is slated to begin this summer with completion in late 2004.Plans call for the construction of a grade-separated intersection, or interchange, at the intersection where the two highways meet, allowing a free flow of traffic between Anchorage and Wasilla. It also will improve flow between Anchorage and Palmer and between Palmer and Wasilla, according to the project description.Traffic lights currently control the intersection of the two highways, resulting in a stop-and-go driving that often backs up traffic.At-grade railroad and road crossings will be eliminated with the construction of five bridges, according to state officials. Additional ramps and roads will provide access to the Glenn Highway leading toward Palmer and to Nelson Road.The interchange will be constructed entirely within existing state right of way, Dougherty said.The interchange project is one of the first in the state to use a design-build process, which allows construction of one portion of a project to begin as soon as its design is completed.Previously, a project was designed, then bid and built.The recently completed Whittier Tunnel was constructed using the design-build concept, a process that is becoming more popular throughout the United States because of shorter construction schedules and earlier completion dates, according to Dougherty.

Anchorage Bar Association

www.anchoragebarassociation.orgThe Anchorage Bar Association Young Lawyers Section organized the state finals of the 13th Annual High School Mock Trial Competition this past March. In organizing such competition, the Young Lawyers Section (YLS) looks to a small group of volunteers (the committee) to draft the problem, coordinate with court personnel to reserve enough courtrooms, recruit different schools to participate, recruit a sufficient number of judges for all competition rounds, and organize the banquet and awards ceremony. Of course, the committee performs many more tasks to ensure a successful competition. Having organized the state final competition for the past couple of years, the committee wondered if Alaska could host the National Mock Trial Competition. With this task in mind, two committee members attended this year’s National Competition hosted in St. Paul, Minnesota.At each National Competition, planners decide on where the National Competition will be held three years out. Some of the key factors in selecting the winning city are: (1) courthouse capacity for 50 teams to compete; (2) hotel(s) with 500 rooms and banquet facilities; (3) proximity of the host hotel(s) to the courthouse(s); (4) obtaining sufficient number of volunteers to judge the national competition; and (5) activities/attractions for the participants.This year, there were three cities vying to host the 2005 National Competition -- Oklahoma City, Oklahoma; Fort Worth, Texas; and Charlotte, North Carolina. Representatives from the three hopeful venues attended various meetings and provided extensive "resumes" detailing why it was the best venue to host the National Competition. Each representative had already coordinated with hotels, courthouses, and local attorneys and judges and obtained agreements with each about participating in a national competition.Having attended this year’s National Competition and two meetings where the three hopefuls for hosting in 2005 gave their presentations, the YLS planning committee now has a good picture of what to accomplish to host, wishfully, the 2009 National Competition.Can Anchorage host this national competition? We certainly have wonderful courtroom facilities, a number of hotels in the downtown area, and beautiful outdoor attractions that can be enjoyed by everyone! With the cooperation of the Anchorage business and legal community, the committee looks forward to the challenge of organizing a National Competition.Michelle Higuchi is an associate at Guess & Rudd.Young Lawyers Hold Successful Second Job FairThe Anchorage Bar Association Young Lawyers Section recently hosted a Job Fair for new and young attorneys at the Hotel Captain Cook. This was the second year that the Young Lawyers Section (YLS) hosted such job fair, and the organization hopes to make it an annual event. This years job fair brought both public and private employers, including the Alaska Civil Liberties Union, Birch Horton Bitner and Cherot, the Federal Judiciary, Guess & Rudd, Lynch & Blum, Richmond & Quinn, and Ross & Miner. Each employer sent one or two representatives, including someone involved in the hiring process and knowledgeable about future hiring prospects. In addition to these employers, an associate from Burr, Pease & Kurtz attended to discuss his practice and the possible hiring needs at his firm, and YLS had a few representatives there to meet attendees and discuss with them YLS activities and membership.This years participants came from law schools in Arizona, Massachusetts, Michigan, Minnesota, Ohio, Oregon, Vermont, and Wyoming. Additionally, currently practicing young lawyers, summer associates, successful February 2002 Alaska Bar examinees, and July 2002 Alaska Bar examinees attended the job fair. The participating employers indicated they were extremely impressed with the attendees.Both employers and participants expressed their appreciation to the YLS for providing this helpful forum. And, per many employer and participant requests, YLS anticipates hosting this job fair annually, with each year to have more participants and to be more successful for all involved. YLS would like to thank the employers and participants who attended this years job fair. YLS would also like to thank everyone who helped make this a successful event and give special thanks to the small group of volunteers who donated their time and energy to organize this years wonderful job fair. By all accounts, those volunteers made this years job fair a great accomplishment. So, a special thanks to Christine DeYoung, Carl Johnson, Michelle Higuchi, Jeff Holloway, Emilee Moeller, and Kara Nyquist.

Corps study finds Anchor Point harbor project may be too costly

KENAI -- The U.S. Corps of Engineers project manager for a proposed Anchor Point harbor said June 24 that such a project may not be economically justifiable.A report issued by the Corps said a proposed feasibility study that could cost well over $1 million and require state and local matching funds may well end up showing that breakwaters and long-term maintenance would be too costly.Further, either of two proposals -- a full harbor or a protected boat launch facility -- potentially could disrupt natural sediment transport along beaches, including at the Clam Gulch Critical Habitat Area. Construction also could impact fish migration, the study said."In summary, there is considerable risk that further studies during the cost-shared feasibility study will show that navigation improvements at Anchor Point are not justified or, if justified, do not meet budget policy requirements or national priorities for funding of construction," the Corps’ study said.Ken Turner, the Corps’ project manager for the Anchor Point harbor idea, said the Corps is leaning toward a feasibility study for a protected load and launch ramp rather than a full small-boat harbor, but even that may not make economic sense."Based on a quick-and-dirty look at the economics, it’s marginal," Turner said.He also said the $1 million estimate for a feasibility study was likely "on the conservative side."Proponents say safety and the struggling community economy are prime reasons for considering a harbor at Anchor Point. Currently, launches off the beach are subject to rapidly varying conditions of sea and wind and, at times, can be dangerous, Anchor Point residents say."We have thousands and thousands of launches off Anchor Point beach every year," said Tom Clark, chairman of the Anchor Point Chamber of Commerce. "It’s getting greater every year, primarily charter and recreational boaters. It’s becoming a serious safety issue and needs to be addressed soon."I would prefer a small-boat harbor, but I would go for anything, including a protected boat launch facility."According to supporters, a typical summer day sees an estimated 30 boat launches at the beach at Anchor Point, with another 65 per day at Deep Creek.The two alternatives under consideration are a 99-vessel small-boat harbor and less-expensive protected boat launch facility. Construction of a protected boat launch facility would cost an estimated $5.1 million. A 99-vessel boat harbor would run about $15.5 million, according to the Corps.Proposed locations for the two alternatives are at sites three-quarters of a mile south of the mouth of the Anchor River and at Cape Starichkof about 8 miles north of Anchor Point and just south of Stariski Creek.A harbor would be protected by two angled breakwaters and be accessible under all tidal conditions, according to the preliminary study. A launch facility, on the other hand, would be protected by a single breakwater to the south and be available about half the time due to tidal cycles, according to the report.


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