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CSHB 320(FIN) AM: "An Act approving the application for and acceptance of a grant of certain federal land by the Alaska Railroad Corporation; approving the conveyance of the entire interest in land appurtenant to the Whittier DeLong Dock by the Alaska Railroad Corporation; relating to use and disposition of the Whittier DeLong Dock and associated land; prohibiting the Alaska Railroad Corporation and the City of Whittier from granting any special right, privilege, or preference to a third party to provide management services for the DeLong Dock; providing that contracts for management of the DeLong Dock by a third party shall be awarded only under competitive procurement procedures established by the Alaska Railroad Corporation and the City of Whittier; and providing for an effective date."

00CS FOR HOUSE BILL NO. 320(FIN) am 01 "An Act approving the application for and acceptance of a grant of certain 02 federal land by the Alaska Railroad Corporation; approving the conveyance of the 03 entire interest in land appurtenant to the Whittier DeLong Dock by the Alaska 04 Railroad Corporation; relating to use and disposition of the Whittier DeLong Dock 05 and associated land; prohibiting the Alaska Railroad Corporation and the City 06 of Whittier from granting any special right, privilege, or preference to a third 07 party to provide management services for the DeLong Dock; providing that 08 contracts for management of the DeLong Dock by a third party shall be 09 awarded only under competitive procurement procedures established by the 10 Alaska Railroad Corporation and the City of Whittier; and providing for an 11 effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 13 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 14 section to read:

01 FINDINGS. The legislature finds that the Whittier DeLong Dock and the associated 02 land are required for essential railroad purposes and that the acquisition of the dock and 03 associated land by the Alaska Railroad Corporation is in the best interests of the state. 04 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 APPROVAL. The legislature authorizes the Alaska Railroad Corporation to apply for 07 and to accept a grant of a parcel of real property in Whittier, consisting of approximately 6.13 08 acres and the appurtenant facility known as the DeLong Dock, from the federal government 09 under terms of sec. 2837(b) - (e), Public Law 106-65. This section constitutes approval for 10 the Alaska Railroad Corporation to apply for and to accept a grant of federal land within a 11 municipality in accordance with AS 42.40.285(5). 12 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 USE AND DISPOSITION OF THE WHITTIER DELONG DOCK AND 15 ASSOCIATED LAND. (a) Within three months after the conveyance of the real property 16 described in sec. 2 of this Act from the United States to the Alaska Railroad Corporation, the 17 corporation shall reconvey ownership of the uplands, tidelands, and submerged lands to the 18 City of Whittier. The corporation shall retain ownership of the DeLong Dock and the railroad 19 tracks and rail bed located on the uplands. 20 (b) Notwithstanding (c) - (h) of this section, the corporation and the City of Whittier 21 are directed and authorized to enter into reciprocal leases for the DeLong Dock and 22 appurtenant land and to enter into a management agreement to operate the DeLong Dock and 23 appurtenant land as a single unit consistent to the extent possible with the terms contained in 24 the document entitled "Management Terms for DeLong Dock" and signed by the corporation 25 and the City of Whittier in March of 2000. Neither the corporation nor the City of Whittier 26 may grant any special right, privilege, or preference to a third party to provide management 27 services at the DeLong Dock. A contract for management of the DeLong Dock by a third 28 party shall be awarded only under competitive procurement procedures established by both 29 parties in accordance with applicable state law. If the management agreement is not signed 30 by both the corporation and the City of Whittier within six months after the real property 31 described in sec. 2 of this Act is conveyed by the United States to the corporation, then the

01 corporation and the City of Whittier shall comply with (c) - (h) of this section. 02 (c) In exchange for ownership of the land described in (a) of this section, the City of 03 Whittier shall 04 (1) subdivide the land into two parcels that are separated by the centerline of 05 the DeLong Dock; 06 (2) grant a lease to the parcel of land north of the centerline of the DeLong 07 Dock to the corporation. 08 (d) The corporation shall grant a lease to that portion of the DeLong Dock south of 09 the centerline of the dock to the City of Whittier. 10 (e) The leases described in (c) and (d) of this section must include the following 11 provisions: 12 (1) each lease must be for a minimum term of 20 years; 13 (2) the rental rate for each lease is $1.00 a year; 14 (3) the corporation shall have rail access to the dock, and the City of Whittier 15 shall have a usable road to lands at and beyond the dock; 16 (4) neither the corporation nor the City of Whittier may be required by the 17 lease to indemnify the other party for its own actions or the actions of a contractor, 18 subcontractor, or sublessee; liability of the parties shall be governed by the tort law of the 19 State of Alaska; 20 (5) the corporation and the City of Whittier may assign or sublease its interest 21 in the lease without the approval of the other party; 22 (6) the corporation and the City of Whittier shall agree to diligently work 23 together in good faith to resolve disputes and to collaborate with each other in developing a 24 management agreement for operation of the DeLong Dock facility with the goal of operating 25 the facility as a single entity for economic development purposes; 26 (7) the leases may not be subject to termination for a breach of a lease; 27 (8) the leases may be amended by mutual agreement of the corporation and 28 the City of Whittier. 29 (f) The corporation and the City of Whittier shall expeditiously and in good faith 30 undertake and complete the transactions described in this section under the terms and 31 conditions set out in this section and under such other terms and conditions as are mutually

01 satisfactory. 02 (g) Pending the completion of the transactions described in this section, the 03 corporation and the City of Whittier shall enter into an interim agreement for the use of the 04 Whittier DeLong Dock and associated land consistent with the provisions of this section. 05 (h) During the five-year period beginning on the date that the real property described 06 in sec. 2 of this Act is conveyed from the United States to the corporation, the property shall 07 be used for economic development of the Whittier and Prince William Sound areas, including 08 freight transportation, tourism, boat moorage for day cruiser or large ocean-going cruise ships, 09 fishing and fish processing, and other uses. 10 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 TRANSFER OF CERTAIN STATE LAND AT WHITTIER. In the event that all or 13 a portion of the land described in sec. 2837(b), Public Law 106-65, is transferred to the State 14 of Alaska or an agency of the State of Alaska other than the Alaska Railroad Corporation, the 15 State of Alaska shall expeditiously reconvey all land and improvements received under sec. 16 2837(b) - (e), Public Law 106-65, to the City of Whittier. 17 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section 18 to read: 19 APPROVAL. The legislature authorizes the Alaska Railroad Corporation to transfer 20 its entire interest in the land described in sec. 3(a) of this Act in accordance with sec. 3 of this 21 Act. This section constitutes legislative approval for the corporation to convey its entire 22 interest in that land under AS 42.40.285(1). 23 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).