Legislature(1999 - 2000)

04/05/2000 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 320                                                                                                              
                                                                                                                                
"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 the Whittier DeLong Dock and associated                                                                             
uplands, tidelands, and submerged lands by the Alaska                                                                           
Railroad Corporation; relating to use and disposition                                                                           
of the Whittier DeLong Dock and associated land; and                                                                            
providing for an effective date."                                                                                               
                                                                                                                                
JOHN MANLEY, STAFF, REPRESENTATIVE HARRIS testified in                                                                          
support of HB 320. He noted that the United States Army                                                                         
notified their intent to surplus the DeLong Dock. The Alaska                                                                    
Railroad Corporation applied for conveyance of the dock. The                                                                    
legislation gives legislative approval for the railroad to                                                                      
receive the DeLong Dock and its underlying real estate. The                                                                     
bill also ratifies an agreement between the city of Whittier                                                                    
and the Alaska Railroad Corporation to transfer the real                                                                        
estate to the city and lease the land underlying the north                                                                      
half of the dock. The railroad would in turn lease the south                                                                    
half of the dock to the city.                                                                                                   
                                                                                                                                
In response to a question by Representative G. Davis, Mr.                                                                       
Manley noted that the title is in the process of being                                                                          
transferred.                                                                                                                    
                                                                                                                                
PHYLLIS JOHNSON, ALASKA RAILROAD CORPORATION testified via                                                                      
teleconference. She explained that the railroad was given                                                                       
priority for the transfer as a state entity. Representative                                                                     
G. Davis noted that there has been interest by different                                                                        
groups.                                                                                                                         
                                                                                                                                
Co-Chair Therriault noted that there was a proposed                                                                             
amendment:                                                                                                                      
                                                                                                                                
Page 2, line 20                                                                                                                 
                                                                                                                                
After "Whittier."                                                                                                               
                                                                                                                                
Insert "Neither the corporation nor the city of Whittier                                                                        
may grant any special right, privilege, or preference to a                                                                      
third party to provide management services at the dock. A                                                                       
contract for management of the dock by a third party shall                                                                      
be awarded by competitive sealed bidding"                                                                                       
                                                                                                                                
Mr. Manley expressed concern that the amendment was too                                                                         
tightly written. He pointed out that the railroad                                                                               
procurement code mirrors the state's procurement code.                                                                          
                                                                                                                                
Co-Chair Therriault observed that there is no statutory                                                                         
reference that can be made to the railroad code. Mr. Manley                                                                     
questioned if the statute could reference the variety of                                                                        
contracting methods available to the railroad.                                                                                  
                                                                                                                                
Ms. Lindskoog stated that the Alaska Railroad Corporation                                                                       
was not concerned with the amendment.                                                                                           
                                                                                                                                
Ms. Johnson explained that the railroad is not under the                                                                        
state's procurement code, but is required to have its own                                                                       
procurement code, comparable to the state's. The Alaska                                                                         
Railroad Corporation's procurement code mirrors the state's                                                                     
code. She thought that it would be possible to come up with                                                                     
language that would allow competitive sealed bidding and                                                                        
RFP's.                                                                                                                          
                                                                                                                                
Co-Chair Mulder stated that he wanted to make sure that                                                                         
everyone would have the opportunity to bid. He asked her to                                                                     
work on an amendment that would be less direct and still get                                                                    
to the spirit of the competitive bid.                                                                                           
                                                                                                                                
SHERI BURETTA, CHAIRMAN OF THE BOARD, CHUGACH ALASKA                                                                            
CORPORATION provided information on the management terms.                                                                       
She maintained that the Chugach Alaska Corporation should                                                                       
have first right of refusal. She noted that Resolution 8,                                                                       
passed in the previous session, urged the Alaska Railroad                                                                       
Corporation to select an Alaskan bidder for the design and                                                                      
construction of its projects. She felt that changes to HB
320 were contradictory to the resolution.                                                                                       
                                                                                                                                
Co-Chair Therriault noted frustration on the part of the                                                                        
legislature regarding the railroad's ability to negotiate                                                                       
with the Chugach Alaska Corporation on behalf of the                                                                            
legislature. He maintained that the bidding process should                                                                      
not be restricted to one corporation. Ms. Buretta stressed                                                                      
that the Alaska Chugach Corporation is in a unique situation                                                                    
due to the direct impact on its communities.                                                                                    
                                                                                                                                
(TAPE CHANGE, HFC 00  - 104, SIDE 1)                                                                                            
                                                                                                                                
Representative Phillips pointed out that the purpose of the                                                                     
resolution was to look at Alaska hire for an Alaskan                                                                            
company. She did not think that there was a difference in                                                                       
the intent to allow bids by Alaskan companies.                                                                                  
                                                                                                                                
CARRIE WILLIAMS, CITY MANAGER, WHITTIER testified via                                                                           
teleconference in support of HB 320. She stressed that the                                                                      
division of property between the railroad and the city of                                                                       
Whittier is fair and necessary.                                                                                                 
                                                                                                                                
Vice Chair Bunde commented that the railroad can do as it                                                                       
sees fit to mange its business, but that it is still a state                                                                    
agency with legislative oversight. He stressed that it is                                                                       
not in the best interest of the state to enter into a law                                                                       
that is illegal in relationship to the procurement code.                                                                        
                                                                                                                                
Representative Phillips did not support the merger of HB 320                                                                    
with HB 426 and HB 362. Representative J. Davies agreed and                                                                     
stated that he did not see a compelling reason to combine                                                                       
the other bills.                                                                                                                
                                                                                                                                
Representative G. Davis spoke in minimizing legislative and                                                                     
cautioned against micro managing.                                                                                               
                                                                                                                                
HB 320 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  

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