Assembly committee briefed on Port modernization surcharge and Terminal 2 design recommendation

Port finance and program staff told the Assembly oversight committee on Aug. 1 that the Port of Alaska will propose a uniform modernization surcharge to raise funds if federal or state grants fall short, and that a Terminal 2 design contract recommendation will appear on the Assembly agenda in September.
Bill Paulsy, chief administrative officer, said the January 2026 surcharge proposal would be trued up to actual tonnage and debt issuance and presented to the Assembly for adoption in September. The proposal as described would set a uniform surcharge across users; staff said the estimate after recent actuals is $8.05 per ton for general cargo, 14¢ per barrel for petroleum and 92¢ per ton for cement, with the cement increase reflecting lower cement tonnage in 2024 compared with 2023.
"We published the Don Young Port of Alaska Comprehensive Plan of Finance in January 2025...we made a promise to everybody then that we were going to implement new Port of Alaska modernization surcharge adjustments on January 1," Paulsy said, adding staff planned to present final documents for Assembly action in September.
Eric Adams of Jacobs, the program manager supporting Port modernization, presented the Terminal 2 design contract award recommendation to a design firm (Cowie) for $3,180,000 with 10% change-order authority for a total authorized amount of $3,500,000 and a 180-day period of performance from notice to proceed. Key deliverables include 35% design, evaluation of reduced seismic performance criteria, comparative cost estimates, and post-seismic inspection and testing plans.
Adams said the design task includes evaluating "anticipated structural damage during design seismic event" and "description of the anticipated operability of the structure after the design seismic event," and that the design will follow previously approved Assembly action AO 2024-103 and permitting requirements.
Committee members asked about change orders to ongoing studies (cargo terminal transportation optimization) and about legal support line items tied to potential claims related to crane delivery and construction schedules; staff said a small change-order request (about $150,000 at one point) for legal support was proposed to ensure timely response to potential high-value claims.
No formal Assembly vote occurred at the committee meeting; staff said the Terminal 2 design contract and surcharge ordinance would be brought to the Assembly for formal action later in September.