Legislature(1999 - 2000)
04/06/2000 01:50 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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.
Vice Chair Bunde MOVED to ADOPT Amendment #1, which would
insert language indicating that neither the corporation nor
the City of Whittier may grant any special rights to a third
party to provide management services at the dock. [Copy on
File]. Representative J. Davies OJBECTED. He asked how
that would affect Page 2, Line 18. He understood that
language would instruct it to go into effect. He questioned
how the amendment would relate.
WENDY LINDSKOOG, ALASKA RAILROAD CORPORATION, ANCHORAGE,
replied that the amendment would supercede the management
term agreement. Representative J. Davies questioned if
there should be a reference to that document. Ms. Lindskoog
explained that it would supercede the part that mentions the
Chugach Alaska Corporation. All other aspects of that
document would be pertaining to how the City of Whittier and
the Alaska Railroad Corporation (ARRC) would set up a
management or operating agreement.
Vice Chair Bunde stated that the amendment would only affect
a portion of the management agreement that addresses the
first right of refusal. He recommended that the remainder
of the agreement not be changed.
Representative Williams pointed out that Chugach is in favor
of the way the language currently is written in the bill.
He asked if that was part of the negotiated settlement or
the right of refusal. Ms. Lindskoog responded that all
parties had been attempted to be included in the bill. She
noted that reference to the terms in the bill is how
management relates. She pointed out that it would directly
conflict with AARC procurement codes. To make the bill
legal, that reference should be deleted.
Representative Williams asked if that had been negotiated.
Co-Chair Therriault explained that it was part of an
negotiation that went on with Chugach and ARRC. He added
that they did not have the power to negotiate on behalf of
the Legislature to make a sole source contract.
Representative Williams suggested that their code allowed
them the right to do that. Co-Chair Therriault noted that
since the Railroad operates under their own procurement
code, there is some question if they can go to a sole source
contract without violating the rule procedures.
Representative Phillips pointed out that previous testimony
indicates that it would be in violation of their procurement
codes. Representative Williams voiced concern that if it
had already been negotiated with Chugach, how would the
change work affect them. Ms. Lindskoog reiterated that the
bill would be following the procurement codes. She stated
that ARRC would have to negotiate separately with Chugach.
Representative Williams understood that the Railroad had
already negotiated with Chugach the intent of the proposal.
Representative G. Davis asked about the management terms of
the DeLong Dock. He inquired if Chugach had signed on to
it. Ms. Lindskoog stated that they had not and that there
had been negotiations but no signatures. At this time, the
signatures included on that document are the City of
Whittier and the ARRC.
Representative J. Davies advised that in that document, it
does grant Chugach Corporation first refusal on the
management plan. Ms. Lindskoog acknowledged that was
correct. However, she added that option goes directly
against the procurement rules.
Vice Chair Bunde pointed out that there was a legal opinion
from Terry Bannister, Legal Services, indicating that the
first right of refusal in not consistent with the
procurement code.
Representative J. Davies proposed another amendment to the
one proposed by Representative Bunde. He believed that the
inconsistency could be fixed.
Vice Chair Bunde MOVED to WITHDREW Amendment #1.
Representative J. Davies MOVED to ADOPT an amendment to Page
2, Line 18, deleting "consistent" and inserting "to the
extent possible". There being NO OBJECTION, it was adopted.
Vice Chair Bunde MOVED to ADOPT Amendment #2. [Previously
adopted.
Co-Chair Therriault questioned language on Page 2, Line 15,
"not with standing". Representative J. Davies explained
that portion explains the terms of what occurs if it does
not go into effect.
SHERRY BURETTA, (TESTIFIED VIA TELECONFERENCE), CHAIRMAN OF
THE BOARD, CHUGACH ALASKA CORPORATION, CHUGACH, commented
that the negotiations that had taken place between Chugach
and the ARRC. The negotiations were consistent with their
right to utilize that dock. The negotiation and agreement
which was arrived at, allowed Chugach to have their interest
addressed. She stated that this was a "slap in the face" as
far as Chugach's willingness to withdraw their attempt at
securing the property due to the federal acquisition
process.
Ms. Buretta added that the language is inconsistent with
other issues that have passed through the Legislature. She
reiterated that she was opposed to the language as it
stands. Co-Chair Therriault agreed that the Legislature
does have that power, however, the Legislature will not
exercise that power on this piece of legislation.
Representative J. Davies stated that the language of the
bill indicates that the Legislature expects the Railroad and
the City of Whittier to execute that management agreement to
the fullest extent possible. He understood that both of
these entities would try to honor whatever previous
understandings they had with Chugach.
Co-Chair Mulder MOVED to report CS HB 320 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 320 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note by the
House Transportation Committee dated 3/29/00.
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