Legislature(1999 - 2000)
03/28/2000 01:35 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 320 - APPROVE ALASKA RAILROAD GETTING WHITTIER DOCK CHAIRMAN HALCRO announced the next order of business as House Bill 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." There is a proposed committee substitute. Number 1155 JOHN MANLY, Staff to Representative John Harris, Alaska State Legisalture, came before the committee to present the bill. Representative Harris and his staff have been working on this issue ever since the United States Army decided to surplus the DeLong Dock. He noted that SB 171, passed in 1999, provided for the approval of the legislature for any transfer of land to the railroad from the federal government. This legislation approves and facilitates the transfer of the real estate under the dock to the City of Whittier. The proposed committee substitute includes language referring to the management terms of the dock between the City of Whittier and the Alaska Railroad Corporation. He noted that the city manger of Whittier is present today to testify and that representatives of the railroad are online to testify as well. Number 1238 REPRESENTATIVE HUDSON made a motion to adopt the propsed committee substitute for HB 320, version 1-LS1165\I, Utermohle, 3/28/00, as a work draft. There being no objection, Version I was before the committee. Number 1283 REPRESENTATIVE JOHN COWDERY stated he's glad to see the bill before the committee. It has been a while in the making, and the parties involved have indicated their acceptance of it. MR. MANLY agreed that it has been a long haul. CHAIRMAN HALCRO opened the meeting to public testimony. Number 1345 CARRIE L. WILLIAMS, City Manager, City of Whittier, came before the committee to testify. She thanked Representative John Harris for bringing the bill forward. She referred to a handout entited, "Management Terms for DeLong Dock," dated March 20, 2000, which gives an outline and listing of the main points that are to be addressed under the management terms. She noted that the dock is small in comparison to many federal assets and it is being split down the middle to make sure that all those involved retain the maximum economic advantage for the development of Prince William Sound. The City of Whittier, she said, is very focused on retaining its timber, fish, freight, and diversifying its economy, and the city sees this dock as one of the few areas that they have readily available to facilitate that focus. It's very important, she said, to Prince William Sound as a whole. She pointed out that the management terms involve the Chugach Alaska Corporation, which has land-holdings within Prince William Sound; they have a future outside the strict development of tourism. Number 1438 REPRESENTATIVE COWDERY asked Ms. Williams how she sees the dock as a source of revenue. Is the cruise ship industry going to return to Whittier? MS. WILLIAMS replied, Certainly, there's a lot of conversation as we know the new harbor being developed by Clear Water is targeting that. As far as, whether they'll be there, I know, there's investments being made around it. Certainly, the city is not ready to invest capital to attract tour ships. We have plenty of impact as it stands right now. CHAIRMAN HALCRO referred to page 3, paragraph (6), of Version I, which reads as follows: ... the corporation and the City of Whittier shall agree to diligently work together in good faith to resolve disputes and to collaborate with each other in developing a management agreement for operation of the DeLong Dock facility with the goal of operating the facility as a single entity for economic development purposes ... CHAIRMAN HALCRO asked Ms. Williams what would happen in the event a dispute cannot be resolved. What would be the recourse for each party? MS. WILLIAMS replied the good faith language, according to legal counsel for both the city and the railroad, is binding and legally enforceable. She noted that binding arbitration language was discussed, but it was not acceptable to the railroad, and that litigation would be the ultimate measure taken. As a realist, she thinks, that the entities involved would come back to the legislature to determine whether there had been good faith efforts, which is why the city asked that the management points be included in the legislation. Number 1536 REPRESENTATIVE HUDSON asked Ms. Williams the status of the management terms. MS. WILLIAMS replied , currently, the city has a request for a use permit until the transfer of the actual patent takes place. Time is of the essence, she said, because the city is seeing more use and demand of the current harbor. She noted that as soon as the city receives a permit in support of the body they will enter into sincere management negotiations of the terms. REPRESENTATIVE HUDSON asked Ms. Williams whether it's correct to say that there is no agreement, but that there is a framework for an agreement. MS. WILLIAMS replied, "Yes." The document entitled, "Management Terms for the DeLong Dock," dated March 20, 2000, is the framework to develop the full agreement. REPRESENTATIVE HUDSON asked whether it's correct to say that there would be no state general funds or fiscal implications to the state. MR. MANLY answered, to the best of his knowledge, that is correct. CHAIRMAN HALCRO asked Ms. Williams whether there was an issue dealing with access and the unions. He thought he remembered seeing something about an issue relating to access in terms of who could and who couldn't work on the dock. MS. WILLIAMS replied the only issue that has been discussed in relation to access is that of the physical access by rail and road to the dock. She is not familiar with any issue in relation to labor or unions. Number 1667 SHERRY BARRETA, Chairman of the Board, Chugach Alaska Corporation, testified via teleconference from Anchorage. The Chugach Alaska Corporation looks forward to working with the Alaska Railroad Corporation and the City of Whittier in the responsible development of the waterfront. The Chugach Alaska Corporation has a keen interest in providing and maintaining services and infrastructures that have direct impact on economic opportunities. The DeLong Dock and the surrounding tidelands are an important and critical aspect of the waterfront, and proper utilization of the dock would be beneficial to the public, the city, the railroad, and business interests moving into the area. The Chugach Alaska Corporation has proven capability in the management of marine facilities. She noted that they currently have 32 contracts worldwide to manage U.S. defense bases, of which, several require marine support facilities. The Chugach Alaska Corporation looks forward to providing their expertise in the development of Whittier, particularly given the enormous changes the road will bring. The full utilization of the DeLong Dock is necessary and critical to the development of Whittier, especially when combined with the development of other infrastructure such as road access to Shotgun Cove which is situated on Chugach Alaska Corporation land. The Chugach Alaska Corporation is glad to have the opportunity to be a part of that progress. Number 1772 WENDY LINDSKOOG, Director of External Affairs, Alaska Railroad Corporation, Department of Community & Economic Development, testified via teleconference from Anchorage. She announced, for the record, that the Alaska Railroad Corporation is in support of HB 320, and that she is available to answer any questions. Mike Fretwell and Jim Blasingame were also online from the railroad to answer any questions. CHAIRMAN HALCRO closed the meeting to public testimony. Number 1804 REPRESENTATIVE COWDERY made a motion to move CSHB 320, version 1-LS1165\I, Utermohle, 3/28/00, out of committee with individual recommendations and attached zero fiscal note. There being no objection, CSHB 320(TRA) so moved from the House Transportation Standing Committee.
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