Start on port reconstruction in Anchorage is delayed
A business group lobbying the Anchorage assembly succeeded in getting the city to hold off on letting a contract for first phase of reconstruction at aging port facilities. The matter will be considered again at the next assembly meeting. Officials have an attractive bid in hand for the project to do the steel infrastructure for the port’s fuel and cement terminal, part of the overall reconstruction. Concerns were expressed over costs by a group of eight companies using the port, who urged city officials to hold off on starting the initial fuel and cement terminal work until funds needed for additional work, in a second phase, were lined up. The bid is for an amount two-thirds of an engineer’s estimate and city officials were anxious to get assembly approval so the bid could be locked in. The matter must be decided by Aug. 1 to get steel ordered in time for 2020 season construction.

The “Port of Alaska Users” opposition group consists of Matson Inc., Tote Maritime, five fuel distribution companies and Alaska Basin Industries. While funds are in hand for initial phase the port users are concerned that future phases could result in increased tariffs, or user fees, that could put them at a competitive disadvantage. There is concern for jet fuel sold to air cargo operators who could divert refueling stops to other airports if costs are added to fuel loaded in Alaska. However, the chance of funding the work with federal or state grants, the traditional method of choice for Alaskans, seems nil. Anchorage officials are concerned not only about the fragile state of pilings built in the early 1960’s, which are corroded, but damage from the Nov. 30 earthquake which puts parts of the terminal at increased risk.

According to a recent McDowell Group study, Anchorage’s port handled 3.9 million tons of cargo landed in 2018, including 1.63 million tons of van and container freight and 500,000 tons of refined petroleum products. The port also handled 105,000 tons of dry bulk freight, mainly cement.

Moody’s cuts university credit ratings after governor cuts its budget
Moody’s Investor Services sharply downgraded University of Alaska bonds following a large veto of 41 percent of state funds for the university by Gov. Mike Dunleavy. Moody’s lowered rating for university general obligation and lease revenue bonds and issued a negative outlook for the university in both areas. The university’s position “has been materially impaired by this reduction,” the rating agency said, also predicting a multi-year impact on university enrollment. UA’s general revenue bond rating was lowered from A1 to Baa3. The university has debt outstanding on several buildings. S&P Global Ratings put the university on its “watch list” with negative implications.

Inflation in Alaska jumped in 2018: New Dept. of Labor report
Inflation in larger Alaska communities increased 3 percent in 2018, the state Department of Labor and Workforce Development said, increasing from an average of 0.5 percent from 2016 through 2017. Prices were measured in major communities. Energy and health care increases drove the 2018 increase, and while Alaska saw the largest one-year inflation rise in the nation costs in Alaska are still below averages of some U.S. regions.

Housing constitutes the largest share of living costs – typically 40 percent of income – but health care is the biggest driver in living cost increases over the longer period. Between 2010 and 2018 health care costs rose 28 percent, the labor department said, compared with 15.6 percent for all living costs.

UAA research team develops new biologically-based insulation material
University of Alaska Anchorage researchers have developed a lightweight biological insulation material based on mushroom tissue. The effort is aimed at finding biodegradable products that can be substituted for Styrofoam, which can’t be recycled and is building up in oceans. Fisheries companies will be testing the new product this summer. Eventually the technology could be used make other biodegradable materials. UAA’s Engineering and Biomaterials Laboratory is developing the technology. Researchers have founded a startup to commercialize the product.

Premera includes Alaska in settlement for consumer data breach
Premera Blue Cross has agreed to pay $10 million to a group of 30 states in a settlement of a class action over a breach of confidential customer personal data that occurred between May 2014 and March 2015. Some $5.4 million will be paid to the state of Washington as most affected consumers are there. The remaining $4.6 million will go to the other states including Alaska. Under the deal Premera committed to installing additional safeguards to protect against a future breach of data.

Alaska Aerospace plans a Missile Defense Agency launch at Kodiak
Alaska Aerospace Corp. will launch a rocket this month at the Kodiak Launch Complex on behalf of the U.S. Missile Defense Agency. Details of the payload are confidential. Local waterway and airspace closures have been ordered for two periods in late July. The state launch corporation has an ongoing support contract with the federal agency.

Dubious distinction: Alaska only state allowing on-site retail marijuana consumption
Alaska will soon gain the distinction, negative or positive, of allowing the only legal on-site consumption of marijuana in the nation. Think of a retail establishment where people can consume. However, the state’s marijuana regulatory board split 2-2 in approving the first application, from “The Fairbanks Cut” in the Interior city. The split vote means the application was not approved. The company says it will appeal. The split vote occurred over whether the business was in an appropriate free-standing building, one that did not include other businesses. On-site consumption is now legal in Alaska and major municipalities will approve applications after state regulators give the okay.