Anchorage Daily News

Two bills proposed in Juneau on Wednesday would require legislative approval of any proposed deal to build the Knik Arm bridge.

The identical bills, introduced by Senate Majority Leader Johnny Ellis and Rep. Les Gara, also call for a 60-day public review of any bridge deal and seek to prevent unexpected toll rate increases.

The hope is to make sure a state agency, the Knik Arm Bridge and Toll Authority, doesn't strike a bad bargain with international investors in an attempt to get the bridge built, said Lois Epstein, director of a watchdog group called the Alaska Transportation Priorities Project.

The bridge authority held a board meeting in Juneau on Wednesday. Spokeswoman Mary Ann Pease said that the bills caught the authority by surprise and that it was too early to comment on them in detail.

She did say that the authority wants to work with the state and that one part of the bills, limiting toll increases to the rate of inflation, may not be a problem.

Former Gov. Frank Murkowski and the Legislature created the toll authority in 2003 to plan for construction of the bridge and figure out how to pay for it. Currently, the authority can strike a bridge deal without lawmakers' approval.

"Now that we're going to shine a public light on this, it encourages KABATA to cut a good deal for the state rather than one that costs a lot of money," Gara said.

The bridge authority has estimated for years the bridge would cost about $600 million, with most of that money now expected to come from private investors. Some critics believe the cost will be far higher.

Two international consortia have shown an interest in building and running the bridge, according to the authority.

The bridge authority is preparing a request for proposals that will ask these possible investors to make their best pitch for financing, building and maintaining the bridge.

The state has been reviewing a draft of the authority's request for proposals for weeks, said Randy Ruaro, a special assistant to the governor.

"Both the Department of Law and the Department of Transportation, in their limited, initial review to date, have pointed out some areas of concern," he said.

In particular, he said, the state has told the bridge authority that it's worried about potential costs to the state, and about a lack of public input on the terms of the request for proposals.

In response, Pease said, the authority will certainly work with state officials on changes they want made.

Gara said the bills are meant to make the process of pursuing a Knik Arm bridge more like the one Gov. Sarah Palin successfully proposed last year for pursuing a natural gas pipeline.

Like Palin's Alaska Gasline Inducement Act, the bills propose a public comment period and then Legislative approval of the deal. After the bridge is built, the state transportation commissioner would approve any toll increases.

Gara said the bridge authority has been given a blank check to spend public money.

"There's no public oversight," he said. "Their main feat so far has been to hand out massive pay raises to KABATA members and they've disregarded the concerns of the public."

The bridge authority gave big pay hikes to three executives in 2006.

"We've maintained the public process at the forefront ... there's a very small staff at KABATA and they're very diligently focused on doing what's best for the state," said Pease, who said she didn't want to comment on the raises specifically.

So far, the authority has spent about $38 million or $39 million on planning, studies and other costs, Pease said.

The governor hadn't seen the proposed bills Wednesday, said Palin spokeswoman Sharon Leighow. Still, Leighow said, Palin "does support an open and transparent process."

Find Kyle Hopkins' political blog online at adn.com/alaskapolitics or call him at 257-4334.

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