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Appeals court reverses $367M award initially granted to Anchorage over faulty port work

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Appeals court reverses 7M award initially granted to Anchorage over faulty port work


ANCHORAGE, Alaska (KTUU) – A panel of federal judges on Monday partially pulled damage awards from a 2021 ruling centered on a Municipality of Anchorage lawsuit against the federal government surrounding faulty construction work at the Don Young Port of Alaska.

The U.S. Court of Appeals for the Federal Circuit opinion, published on Dec. 16, slashes the Municipality of Anchorage’s initially-awarded $367.4 million to a little more than $11 million, more than three years after the court first issued a decision over the suit that sought to prove the United States breached two contracts with the municipality for port improvements.

“This is a disappointment,” said Anchorage Mayor Suzanne LaFrance, who spoke briefly on the published opinion at the most recent meeting of the Anchorage Assembly, calling the decision “unexpected news” on Tuesday night.

“We are continuing to consider appropriate next steps,” she said, adding that the municipal manager “will brief members later this week.”

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The court opinion largely vacates the 2021 U.S. Court of Federal Claims decision but hinges in large part on action from two decades prior, in which the Municipality of Anchorage and the federal government agreed to upgrades and expansions at the aging Port of Alaska.

As referred to in court documents, the municipality and federal government entered into a 2003 Memorandum of Understanding and, later, a supplementary 2011 Memorandum of Agreement, for those improvements to the port. The same documents show the Maritime Administration (MARAD) contracted with Integrated Concepts and Research Corporation (ICRC) in 2003, which in turn subcontracted with others, to complete the project.

“Problems with the project were discovered during a third-party inspection in 2010, when ‘large-scale damage was found in the installed sheet piles,’” according to court documents, “which protect an excavated area from earth and groundwater.

“While ICRC and its subcontractors performed the work, Anchorage ultimately blamed the project issues on MARAD, alleging that MARAD failed to ‘develop project management or inspection protocols,’” according to the opinion, “and ‘abdicated its responsibilities’ to oversee the project.”

These issues precipitated the 2011 agreement, which was designed in part to redefine responsibilities for the project as a whole, with adjustments to oversight including the development of the Port Oversight and Management Organization.

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That same year, however, a subcontractor of the ICRC alleged its work was not being appropriately reimbursed. Without consulting the municipality first, MARAD eventually settled, paying ICRC $11,279,059, court documents show.

In March 2013, the municipality filed its lawsuit against multiple parties – among them, the ICRC and subcontractors – over the “deficient work” at the port, which was settled. The next year, Anchorage filed suit against the federal government in the Court of Federal Claims, claiming MARAD had breached both the 2003 and 2011 memorandums.

On Dec. 9, 2021, the court eventually sided with Anchorage and against MARAD. It also found that the municipality proved its entitlement to claim damages in full, totaling $367,446,809, the following February.

The Court of Appeals, in its opinion this week, affirmed the U.S. Court of Federal Claims determination that the 2011 agreement was breached, given the $11.3 million in subcontractor claims were settled without the municipality’s approval.

However, the appeals court said a “defect-free port” was never required as part of the agreement from 2003, and vacated that portion of the federal claims court’s decision. This cut the damages awarded to Anchorage by more than $169.5 million, as part of the value of the structure the municipality “expected but did not receive”; and nixed an additional $186,607,000, as part of anticipatory costs associated with fixing defects in the existing structure at the time.

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The overturning of this decision pulls a large portion of the funding dedicated for port upgrades, marking the latest in the saga of the years-long modernization project for the port.

According to the port’s website, the Port of Alaska Modernization Project, created in 2014, is meant to support the port continuing to serve as the state’s key inbound cargo gateway, an operation site for national defense infrastructure, and a supporter of consumer goods and emergency needs. Recent data from the port shows imported cargo that moves through the port reaches about 85 percent of all Alaskans.

The next phase of the modernization project is expected to cost up to $2 billion.

Read the full opinion from the Court of Appeals here.

See a spelling or grammatical error? Report it to web@ktuu.com.

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Alaska’s voter roll transfer: Republicans bash hearing questioning if lieutenant governor broke the law

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Alaska’s voter roll transfer: Republicans bash hearing questioning if lieutenant governor broke the law


JUNEAU, Alaska (KTUU) – A legislative hearing into the legality of Alaska’s voter roll transfer to the federal government ended in partisan accusations Monday, with one Republican calling it a “set-up” and others saying it was unnecessary, while Democrats defended it as needed oversight.

“Andrew (Gray) and the committee has a bias. I mean, that much is obvious from watching it,” Rep. Kevin McCabe, R-Big Lake, told Alaska’s News Source walking out of the hearing before it gaveled out. “Most of the testimony was slanted against the state and against the federal government.”

The House State Affairs and Judiciary committees met jointly Monday to hear testimony about whether Dahlstrom violated the law when she transferred the entirety of Alaska’s voter rolls to the federal government.

Rep. Steve St. Clair, R-Wasilla, agreed with his Big Lake counterpart that the hearing was unnecessary.

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“I think we’re speculating on what the intent of the DOJ is and I believe we need to wait and see,” he said.

Rep. Andrew Gray, D-Anchorage and chair of the House Judiciary Committee, pushed back when told of his Republican colleagues’ reaction.

“I think that I went above and beyond to try to include everybody,” Gray said as he left the meeting. “If people are saying that if the Obama administration had asked for the unredacted voter rolls from Alaska, that all these Republicans around here would have just been like, ‘oh, take it all. Take all of our information.’

“That is not true. That is absolutely not true,” Gray added.

Rep. Ted Eischeid, D-Anchorage, backed his House majority colleague, questioning whether Republicans would have preferred if the topic not be addressed at all.

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“The minority folks on the committee had a chance to ask questions,” he said. “I think this is a meeting we needed to have. Alaskans have asked for it. I think there’s still a lot of unanswered questions. So shedding light on the state’s actions, that’s bias?”

Dahlstrom did not attend the hearing. Gray said she was invited multiple times but cited scheduling conflicts. The lieutenant governor oversees the Alaska Division of Elections under state law.

In her most recent public statement — published Feb. 25 on her gubernatorial campaign website, not through her official office — Dahlstrom defended the voter roll transfer, saying the agreement with the DOJ was “lawful, limited” and that Alaska retains full authority over its voter rolls.

“The DOJ cannot remove a single voter from our rolls,” she wrote. “Its role is limited to identifying potential issues, such as duplicate registrations or individuals who may have moved or passed away.”

Representatives from the state’s Department of Law and Division of Elections both testified in defense of Dahlstrom’s decision. Rachel Witty, the Department of Law’s director of legal services, told the committee the state viewed the DOJ’s purview.

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“The DOJ’s enforcement authority is quite broad,” Witty said. “And so, we interpreted their request as being used to evaluate and enforce HAVA compliance.”

HAVA — the Help America Vote Act — is a federal law that sets election administration standards for states.

Lawmakers also heard from an assortment of outside witnesses who largely questioned the legality of Dahlstrom’s actions, including former Lt. Gov. Loren Leman, who served under Republican Gov. Frank Murkowski, and former Attorney General Bruce Botelho, who served under Democratic Gov. Tony Knowles.

The Documents: A Months-Long Timeline

As part of the hearing, the committee released months’ worth of documents between the Department of Justice — led by Attorney General Pam Bondi — and Dahlstrom’s office, detailing the effort to transfer Alaska’s voter rolls over to Washington.

The DOJ first asked Dahlstrom to release the voter rolls in July of last year, citing the 1993 National Voter Registration Act, which requires states to allow federal inspection of “official lists of eligible voters.”

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Dahlstrom agreed to release the records in August, providing a list of voters designated as “inactive” and “non-citizens,” along with their voting records and the statewide voter registration list — but it did not include what the DOJ wanted.

“As the Attorney General requested, the electronic copy of the statewide [voter registration list] must contain all fields,” reads an email sent 10 days after Dahlstrom agreed to release the data, “including the registrant’s full name, date of birth, residential address, his or her state driver’s license number or the last four digits of the registrant’s social security number.”

Dahlstrom agreed to provide the full details months later, in December, citing a state statute that permits sharing confidential information with a federal agency if it uses “the information only for governmental purposes authorized under law.” Those purposes, she wrote in the email, are to “test, analyze and assess the State’s compliance with federal laws.”

“I attach some significance to the fact that it took the State … nearly four months to respond to the Department of Justice’s demand,” former AG Botelho told the committee.

That same day, Dahlstrom, Alaska Division of Elections Director Carol Beecher and DOJ Assistant Attorney General Harmeet Dhillon signed a memorandum of understanding governing how the data could be accessed, used, and protected.

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Dahlstrom’s office publicly announced the transfer nine days after the MOU was signed — nearly six months after the DOJ first made its request.

“Alaska is committed to the integrity of our elections and to complying with applicable law,” Dahlstrom said in the December statement. “Upon receiving the DOJ’s request, the Division of Elections, in consultation with the Department of Law, provided the voter registration list in accordance with federal requirements and state authority, while ensuring appropriate safeguards for sensitive information.”

A 10-page legal analysis from legislative counsel Andrew Dunmire, requested by House Majority Whip Rep. Zack Fields, D-Anchorage, concluded that the DOJ’s demand defied legal bounds.

“The DOJ’s request for state voter data is unprecedented,” Dunmire’s analysis states, adding that the legal justification the DOJ used to demand access to the data has never been applied this way before.

“Multiple states refused DOJ’s request, which has resulted in litigation that is now working its way through federal courts across the country,” he adds.

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The Senate holds an identical hearing Wednesday, when its State Affairs and Judiciary committees take up the same questions.

See a spelling or grammar error? Report it to web@ktuu.com



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Alaska Air National Guard rescues injured snowmachiner near Cooper Landing

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Alaska Air National Guard rescues injured snowmachiner near Cooper Landing


 

An Alaska Air National Guard HH-60W Jolly Green II helicopter, assigned to the 210th Rescue Squadron, 176th Wing, returns to Joint Base Elmendorf-Richardson, Alaska, after conducting a rescue mission for an injured snowmachiner, Feb. 21, 2026. The mission marked the first time the AKANG used the HH-60W for a rescue. (U.S. Air National Guard photo by Staff Sgt. Joseph Moon)

Alaska Air National Guard personnel conducted a rescue mission Saturday, Feb. 21, after receiving a request for assistance from the Alaska State Troopers through the Alaska Rescue Coordination Center.

The mission was initiated to recover an injured snowmachiner in the Cooper Landing area, approximately 60 air miles south of Joint Base Elmendorf-Richardson. The Alaska Air National Guard accepted the mission, located the individual, and transported them to Providence Alaska Medical Center in Anchorage for further medical care.

The mission marked the first search and rescue operation conducted by the 210th Rescue Squadron using the HH-60W Jolly Green II, the Air Force’s newest combat rescue helicopter, which is replacing the older HH-60G Pave Hawk. Guardian Angels assigned to the 212th Rescue Squadron were also aboard the aircraft and assisted in the recovery of the injured individual.

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Good Samaritans, who were on the ground at the accident site, deployed a signal flare, that helped the helicopter crew visually locate the injured individual in the heavily wooded area.
Due to the mountainous terrain, dense tree cover, and deep snow in the area, the helicopter was unable to land near the patient. The aircrew conducted a hoist insertion and extraction of the Guardian Angels and the injured snowmachiner. The patient was extracted using a rescue strop and hoisted into the aircraft.

The Alaska Air National Guard routinely conducts search and rescue operations across the state in support of civil authorities, providing life-saving assistance in some of the most remote and challenging environments in the world.



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Alaska House advances bill to boost free legal aid for vulnerable Alaskans

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Alaska House advances bill to boost free legal aid for vulnerable Alaskans





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