05/08/1997 02:10 PM House FIN

  SENATE BILL 34                                                               
                                                                               
       "An Act giving notice of and approving a lease-purchase                 
       agreement with the  City of Soldotna for  a maintenance                 
       facility of the Department of Transportation and Public                 
       Facilities."                                                            
                                                                               
  Representative G. Davis  explained that SB 34  would provide                 
  authorization to  the  State of  Alaska  to enter  into  and                 
  finance a lease-purchase agreement for the construction of a                 
  new maintenance facility in Soldotna.                                        
                                                                               
  The current facility, resting on a  seven acre site, is over                 
  30 years old, located along the  Kenai River.  That facility                 
  is of concern  to the  entire community.   The new  facility                 
  will be constructed on a site which is currently held by the                 
  Kenai Peninsula Borough (KPB).  He  pointed out that the KPB                 
  "owes" the State  the acreage; thus,  there will be no  land                 
  acquisition costs to the project.  KPB will deed the land to                 
  whatever entity to comply with the bonding requirements.                     
                                                                               
  Representative  G. Davis  reiterated  that  there is  public                 
  concern  regarding the  maintenance  citing of  the facility                 
  along  the  Kenai  River.   Heightened  public  awareness of                 
  habitat  protection  and  water quality  for  the  river has                 
  focused  on that  station.   The  proposed  project has  the                 
  support  of the  Department  of  Transportation  and  Public                 
  Facilities (DOTP&F) and seems to be the most viable option.                  
                                                                               
  In the early 1960's, the State conveyed to the Kenai Borough                 
  a parcel of land  for Borough ownership.  As a  part of that                 
  agreement, the  Borough then owed  land of similar  value to                 
  the State.  The  City of Soldotna has proposed  to the State                 
  their interest in the said land and currently is waiting for                 
  the transaction to convey that land.                                         
                                                                               
  Representative G. Davis  pointed out that the new site would                 
  be conveyed  at no  cost to  the State.   Representative  J.                 
  Davies questioned the  costs of  the clean-up involved  with                 
  the   site   being  vacated.      Representative   G.  Davis                 
  acknowledged that a  $150 thousand dollar contract  had been                 
  granted last  summer to address  those concerns.   He added,                 
  there  was  additional  money appropriated  in  past  budget                 
                                                                               
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  cycles and also in the current fiscal Capital Budget for the                 
  clean-up.                                                                    
                                                                               
  SAM  KITO,  III,  SPECIAL  ASSISTANT  TO  THE  COMMISSIONER,                 
  DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, spoke in                 
  support  of the  proposed legislation.   He  noted that  the                 
  Department  has  been  working  on  the  proposal  with  the                 
  Soldotna delegation  for several years.  Co-Chair Therriault                 
  asked if  the  proposal had  been  submitted for  a  Capital                 
  appropriation.    Mr.  Kito  replied  that  there  had  been                 
  interest to  include it  for a  capital appropriation  about                 
  three years  ago,  although, did  not  make it  through  the                 
  process.   The City  of Soldotna  and the  State then  began                 
  looking at bonding options.                                                  
                                                                               
  Co-Chair Therriault  questioned  if money  existed  for  the                 
  removal of the existing structure.  Mr. Kito  commented that                 
  there  are funds for demolition of the existing structure as                 
  well as funding for the new  proposed structure.  He pointed                 
  out that there  will be a separate  appropriation to address                 
  the clean-up.  He hoped it would be sufficient.                              
                                                                               
  Ultimately, the  property will be transferred to the City of                 
  Soldotna from the State.  Representative G. Davis understood                 
  that Soldotna had  no additional municipal selections.   The                 
  cost of the  new facility  is projected to  be $4.5  million                 
  dollars.                                                                     
                                                                               
  Representative Mulder MOVED to report CS  SB 34 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS SB 34  (FIN) was  reported out  of Committee  with a  "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Revenue  dated 4/25/97 and a zero  fiscal note                 
  by the Department of Administration dated 3/11/97.