04/23/1997 05:35 PM Senate FIN

                                                                               
       CS FOR SENATE BILL NO. 34(TRA)                                          
                                                                               
       "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."                                                                 
                                                                               
  Senator Torgerson introduced CSSB 34(TRA).   He specifically                 
  noted  page  1, line 11, amendment #1.  He briefly discussed                 
  with Senator Pearce regarding the City of Soldotna being the                 
  seller of the bond.                                                          
                                                                               
  (Tape change to #126.)                                                       
                                                                               
  He  said  there  was no  high  priority  to  move the  bill.                 
  Senator Pearce said  she did not  feel the City of  Soldotna                 
  should have the bond.                                                        
                                                                               
  Nancy Slagle, Director, Division of Administrative Services,                 
  Department  of  Transportation  and  Public  Facilities  was                 
                                                                               
                                                                               
  invited to join the  committee.  She said this matter  was a                 
  high priority with the department.   It had been three years                 
  since the environmental clean-up had  been requested.  Money                 
  was available  for working  on design  and road  to the  new                 
  site.  In  1996 money was  appropriated for the clean-up  in                 
  the amount of  $600,000.  She did not know  the total amount                 
  of  the  cleanup  but would  provide  exactly  how much  the                 
  department received and how much they expended.                              
                                                                               
  Senator Torgerson  said that  $600,000 was  appropriated and                 
  reviewed the  amounts left.   Approximately  $1 million  was                 
  left.    (pause  while Senator  Pearce  reviewed  the spread                 
  sheet.)   In  response  to  a  question by  Senator  Pearce,                 
  Senator Torgerson said  he had no  objection to the City  or                 
  the State  holding the bonds.   The City had  been trying to                 
  get the State to  do the bond but for some  reason the State                 
  had been holding  off.  The City said they would not pay the                 
  bond,   however,   for   clean-up.      The   Department  of                 
  Transportation said with another  $250,000 the project could                 
  be finished.   It was  noted the State  owned the  property.                 
  Co-chair Sharp said he never heard  of the State bonding for                 
  cleanup.   He asked  Senator  Torgerson to  review the  bill                 
  tonight and to pin down whether the  City of Soldotna or the                 
  State would do the bonding.  Senator Torgerson said the City                 
  felt  if they did  the bonding they  could move on  with the                 
  project.  Mr. Browne  said that whoever does the  bonding it                 
  would be a 90-day process.   Senator Torgerson said he would                 
  review  the  bill  and  have  it  redrafted  and  ready  for                 
  tomorrow.                                                                    
                                                                               
  Co-chair Sharp concurred and held SB 34 over until tomorrow.