2001-01-10                     Senate Journal                      Page 0039
SB 24                                                                                             
SENATE BILL NO. 24 BY THE SENATE RULES COMMITTEE                                                    
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act giving notice of and approving the entry                                          
          into, and the issuance of certificates of participation                                   
          for, a lease-purchase agreement for a seafood and                                         
          food safety laboratory facility; and providing for an                                     
          effective date."                                                                          
                                                                                                    
was read the first time and referred to the State Affairs, Resources, and                           
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Environmental Conservation                                        
 Fiscal Note No. 2, Department of Revenue                                                           
 Fiscal Note No. 3, Department of Administration                                                    
                                                                                                    
Governor's transmittal letter dated January 10:                                                     
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
The state's food safety laboratory plays a vital role in protecting the                             
health of Alaskans. It tests finfish, shellfish and dairy products to be                            
certain they're safe for human consumption, certifies private drinking                              
water laboratories, and works with commercial processors in                                         
developing food products.                                                                           
                                                                                                    
The laboratory facility is now outdated and woefully inadequate. In                                 
addition, the current lease will soon expire, requiring the facility to be                          
relocated. The Legislature has recognized the need for replacement                                  
through previous planning and design appropriations. This bill I                                    
transmit today is the next and final step in providing Alaskans with a                              

2001-01-10                     Senate Journal                      Page 0040
worthwhile facility by setting up a bonding structure for its                                       
construction. The proposed method is the issuance of certificates of                                
participation for a lease-purchase agreement.                                                       
                                                                                                    
The anticipated total construction, acquisition, and other costs of the                             
project under the lease-purchase agreement are not to exceed                                        
$13,655,000 and the total anticipated annual amount of the rental                                   
obligation is $1,220,000. The total anticipated lease payments for the                              
full term of the lease-purchase agreement amount to $24,440,000. The                                
state would own the facility at the end of the lease term under the                                 
operation of the Department of Environmental Conservation.                                          
                                                                                                    
In the interest of the public health for Alaskans and consumers of our                              
food, fish and dairy products as well as the economic health of these                               
industries, I urge your prompt and favorable action on this measure.                                
                                                                                                    
       Sincerely,                                                                                   
       /s/                                                                                          
       Tony Knowles                                                                                 
       Governor