Legislature(1997 - 1998)
04/29/1998 01:50 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 285
"An Act relating to state procurement practices."
KRISTIE TIBBLES, STAFF, SENATOR DRUE PEARCE, explained that
when highway improvements are needed, a project is designed,
a request for bids is advertised, and a construction
contract is then competitively awarded by the Department of
Transportation and Public Facilities (DOT&PF). When the
highway that needs the work involves the Alaska Railroad,
the work involving the Railroad property is not included in
that bid. When such a situation occurs, the Department
negotiates a force-account contract with the Alaska
Railroad. That arrangement reduces the amount of work which
the private industry can participate in and keeps the
Department public fund expenditure from going through a
competitive bid arrangement.
Ms. Tibbles reported that SB 285 would reintroduce
competition for construction of DOT&PF highway projects
which involve the Alaska Railroad. SB 285 will establish a
fair and effective manner by which to award construction
contracts for those projects and will require the Alaska
Railroad Corporation to utilize a competitive bidding
process, openly advertised when managing projects.
JOHN ENG, (TESTIFIED VIA TELECONFERENCE), ASSOCIATED GENERAL
CONTRACTORS, ANCHORAGE, testified in support of the bill
before the Committee. He stated that taxpayer dollars
should be used for improvements to other properties included
in the bidding process. He urged passage of the
legislation.
Representative G. Davis inquired if the bill had been
created to address a specific problem. Mr. Eng replied that
in recent years, the Department of Transportation has
negotiated account contracts with the Alaska Railroad,
project paid for with tax dollars. Consequently, general
contractors have not had the opportunity to bid on that
work. The Alaska Railroad could participate by working for
contractors that bid on those projects. The Railroad would
not be able to bid or sign a contract on a force-account
contract.
Representative G. Davis questioned the legal authority of
those people working within the Alaska Railroad right-of-
way. Mr. Eng replied that the right-of-way is property
which belongs to the Alaska Railroad, and that DOT&PF works
together with them to address highway improvements which
occur within that area.
Representative J. Davies asked if there would be a problem
separating the roadwork from the signaling and control work.
Mr. Eng replied that would not create a problem.
TOM BROOKS, (TESTIFIED VIA TELECONFERENCE), CHIEF ENGINEER,
ALASKA RAILROAD CORPORATION, ANCHORAGE, commented that in
the existing system, DOT&PF treats the Alaska Railroad as a
utility. If one of their projects impacts the Alaska
Railroad, they come to the Railroad to provide funding
needed to accommodate the changes required.
He continued, that work is generally done with a railroad
work force, however, from time to time, there has been a
request from the Department to pursue a construction
contract. When that work is done, the Railroad employees
100% Alaskans. He continued, if the work were bid, there
are a limited number of qualified contractors in the State.
Mr. Brooks emphasized that if the work were competitively
bid, there is no guarantee that it would stay in Alaska.
Mr. Brooks stressed that there is valid concern when
addressing the safety of the trains. He added, if the bill
is separated, it is important that signaling and flag
protection continues to be part of the Alaska Railroad
effort. He reiterated that the signaling work is a
specialty contract situation and that railroad flag
protection is a matter of safety.
BILL HUPPRICH, (TESTIFIED VIA TELECONFERENCE), ASSOCIATE
GENERAL COUNSEL, ALASKA RAILROAD CORPORATION, ANCHORAGE,
remarked that if the proposed legislation is enacted, it
could cause problems in Union agreements by restricting the
Railroads authority to contract or subcontract out the work.
He warned that the legislation could place the Alaska
Railroad in the middle of a Department project. If the work
were not done with railroad people, it would be best to have
the Department contract directly with the bidder, which
would solve the Union contract problem.
Mr. Hupprich advised that the Alaska Railroad is opposed to
passage of the bill. He spoke to Amendment #1. [Copy on
File]. He recommended that if the legislation is to pass
that "construction work" must exclude signal work and rail
flagging.
Mr. Hupprich pointed out that Amendment #1 proposes to amend
Section 1.36.30.015(a), on the fifth line, placing a period
after "Public Facilities" and deleting the remainder of the
underlined portion of the amendment. Co-Chair Therriault
clarified that if the money were coming from the Department,
they would then be the ones handling the entire project.
BILL SHEFFIELD, (TESTIFIED VIA TELECONFERENCE), PRESIDENT,
ALASKA RAILROAD CORPORATION, ANCHORAGE, reiterated that the
concern with the legislation is a matter of safety,
particularly, signaling and flagging. Governor Sheffield
explained that the Alaska Railroad Corporation is a
specialist in railroad construction and that most DOT&PF
jobs are done from standard plans, generally not charging
for the engineering and/or site inspection. He reiterated
that the Alaska Railroad is in opposition to the
legislation.
In response to a concern by Representative Foster, Mr.
Brooks explained that the Alaska Railroad occasionally
receives grant money from the federal government that passes
through DOT&PF. The intent is that funding not be a part of
the proposed legislation.
Representative G. Davis asked if DOT&PF would have the legal
authority to dictate control of the project. Governor
Sheffield replied that the Alaska Railroad does have control
of its own right-of-way where it crosses a highway belonging
to the Department. If the Department is to improve the road
or reconstruction is done, there must be coordination of the
project so that it is done safely.
Representative Martin suggested that DOT&PF could be a
better facilitator of cooperation. Governor Sheffield
reiterated the need that the Alaska Railroad is in charge of
the signalization.
Co-Chair Hanley advised that his preference is to allow the
competitive bidding process, then whom ever meets the
qualifications and the lowest bid should be able to do the
work. He asked if that language was included would there
continue to be a Union contract problem for the Alaska
Railroad. Mr. Hupprich replied it could work if the
language of the amendment was deleted.
Co-Chair Hanley asked if the Department bids out the job
through an open competitive process, the Railroad then bids
as one of the contractors, would there continue to be a
problem. Mr. Hupprich replied there wouldn't and that the
Alaska Railroad could support that language.
SB 285 was HELD in Committee for further consideration.
| Document Name | Date/Time | Subjects |
|---|