Legislature(1999 - 2000)

03/25/1999 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
GENERAL SUBJECT(S): Overview ALASKA RAILROAD CORPORATION                                                                        
                                                                                                                                
The following overview was taken in log note format.  Tapes and                                                                 
handouts will be on file with the House Finance Committee through the                                                           
21st Legislative Session, contact 465-2156. After the 21st Legislative                                                          
Session they will be available through the Legislative Library at 465-                                                          
3808.                                                                                                                           
                                                                                                                                
Time Meeting Convened: 1:40 p.m.                                                                                                
                                                                                                                                
Tape  HFC 99-53, Side 1.                                                                                                        
Tape  HFC 99-53, Side 2.                                                                                                        
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
x                                                                                                                               
Representative G. Davis                                                                                                         
x                                                                                                                               
Co-Chair Therriault                                                                                                             
x                                                                                                                               
Representative Foster                                                                                                           
x                                                                                                                               
Co-Chair Mulder                                                                                                                 
x                                                                                                                               
Representative Grussendorf                                                                                                      
                                                                                                                                
Representative Austerman                                                                                                        
x                                                                                                                               
Representative Kohring                                                                                                          
x                                                                                                                               
Representative Bunde                                                                                                            
x                                                                                                                               
Representative  Moses                                                                                                           
x                                                                                                                               
Representative J. Davies                                                                                                        
X                                                                                                                               
Representative Williams                                                                                                         
                                                                                                                                
ALSO PRESENT:                                                                                                                   
GOVERNOR WILLIAM SHEFFIELD,CEO, ALASKA RAILROAD, ANCHORAGE; JIM                                                                 
KUBITZ, VICE PRESIDENT, ALASKA RAILROAD, ANCHORAGE.                                                                             
                                                                                                                                
                                                                                                                                
LOG                                                                                                                             
SPEAKER                                                                                                                         
DISCUSSION                                                                                                                      
000                                                                                                                             
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Convened the HFC meeting at 1:40 P.M. for                                                                                       
the purpose to discuss the Alaska Railroad                                                                                      
Corporation.                                                                                                                    
                                                                                                                                
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Stated that HB 69 would be reported out to                                                                                      
the Chief Clerks office and that the bill                                                                                       
title had been tightened. Amendments will                                                                                       
be offered on the floor.                                                                                                        
191                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Asked about the tobacco bill.  That                                                                                             
language is ambiguous. Memo has been                                                                                            
included in the packet clarifying HB 67.                                                                                        
274                                                                                                                             
Co-Chair Mulder                                                                                                                 
Took assumed the gavel.  He stated that                                                                                         
Subcommittee reports will need to be                                                                                            
turned in before members leave for Easter                                                                                       
break.  A statewide teleconference on the                                                                                       
operating budget will happen during the                                                                                         
weekday following Easter; not the weekend.                                                                                      
He suggested that it could be difficult to                                                                                      
have that hearing on Tuesday because the                                                                                        
LIO's might not have access to the draft.                                                                                       
                                                                                                                                
Co-Chair Mulder                                                                                                                 
He introduced guests from the Alaska                                                                                            
Railroad to speak about long range plans                                                                                        
and intentional use of reserved monies.                                                                                         
433                                                                                                                             
GOVERNOR BILL                                                                                                                   
SHEFFIELD, CEO,                                                                                                                 
PRESIDENT, ALASKA                                                                                                               
RAILROAD,                                                                                                                       
ANCHORAGE                                                                                                                       
Expressed his gratitude for being invited                                                                                       
to testify before the Committee.  He                                                                                            
provided Committee members a handout                                                                                            
prepared by the Railroad.                                                                                                       
                                                                                                                                
Governor Sheffield                                                                                                              
He provided a step by step overview of the                                                                                      
handout.                                                                                                                        
                                                                                                                                
Governor Sheffield                                                                                                              
Pointed out that the railroad is self                                                                                           
supporting and self sufficient.  He                                                                                             
emphasized that the railroad is                                                                                                 
professionally run.                                                                                                             
                                                                                                                                
Governor Sheffield                                                                                                              
Spoke to the missions and values of that                                                                                        
system: and that Safety is the most                                                                                             
important aspect of railroad work.                                                                                              
615                                                                                                                             
Governor Sheffield                                                                                                              
The railroad has worked hard at lowering                                                                                        
the injury rate.                                                                                                                
                                                                                                                                
Governor Sheffield                                                                                                              
Service is critical; additionally, there                                                                                        
are yearly audits.  The LBA Committee                                                                                           
audits the Railroad at least once a year.                                                                                       
698                                                                                                                             
Governor Sheffield                                                                                                              
He noted that the state economy and the                                                                                         
railroad follow hand in hand.  There has                                                                                        
been a downturn in the oil industry.  The                                                                                       
oil traffic has historically used the                                                                                           
railroad extensively but with less oil,                                                                                         
the economy goes down.                                                                                                          
759                                                                                                                             
Governor Sheffield                                                                                                              
The railroad is in good financial shape;                                                                                        
they have paid down the debt and have                                                                                           
revampted business contracts with a major                                                                                       
restructuring since 1990.                                                                                                       
810                                                                                                                             
Governor Sheffield                                                                                                              
Governor Sheffield spoke to the 1998                                                                                            
highlights:  23% reduction in employee                                                                                          
injuries; Replaced 100,000 more ties;                                                                                           
Installed 350,000 tie anchors; and                                                                                              
Increased passenger useage, freight and                                                                                         
revenues.                                                                                                                       
900                                                                                                                             
Governor Sheffield                                                                                                              
Estimated railroad net earnings of $9                                                                                           
million dollars.                                                                                                                
995                                                                                                                             
Governor Sheffield                                                                                                              
Spoke to the 1999 Goals.                                                                                                        
                                                                                                                                
Governor Sheffield                                                                                                              
Anticipate another 25% down in injuries;                                                                                        
Cut expenses to meet potential drop in                                                                                          
freight volumne; 600,000 tons of export                                                                                         
coal moved.                                                                                                                     
1060                                                                                                                            
Governor Sheffield                                                                                                              
Also, develop a real estate master plan;                                                                                        
Better use real estate to stabilize                                                                                             
revenues over the long-term; Increase                                                                                           
revenue in base freight business through                                                                                        
efficiency,to customer service; Manage                                                                                          
capital program successful.                                                                                                     
1303                                                                                                                            
Governor Sheffield                                                                                                              
He stated that Governor Knowles vision                                                                                          
plan of transportaiton is a fifth of the                                                                                        
national economy with more in Alaska.  The                                                                                      
Railroad revenues supply match for rail                                                                                         
improvements.                                                                                                                   
1370                                                                                                                            
Governor Sheffield                                                                                                              
Port of Seward:  The railroad will build a                                                                                      
freight dock and a true passenger, state                                                                                        
ferry dock.  Will be hauling crew ship                                                                                          
passengers from Seward to Anchorage which                                                                                       
is the key of the entire development.                                                                                           
1435                                                                                                                            
Governor Sheffield                                                                                                              
Whittier Overpass: Is a safety measure                                                                                          
being undertaken by the Ak. Railroad.                                                                                           
This will be a safety measure.  That road                                                                                       
will be rebuilt from the port to the                                                                                            
harbor.  It will be open Spring 2000.                                                                                           
1496                                                                                                                            
Governor Sheffield                                                                                                              
Denali Depot: It will be an enclosed,                                                                                           
full-service facility at the park                                                                                               
entrance.  The railroad is working with                                                                                         
the Park Service for completion by 2001.                                                                                        
1550                                                                                                                            
Governor Sheffield                                                                                                              
Fairbanks Intermodal:  This will be built                                                                                       
soon for bus, rail, taxi facilities. It                                                                                         
will require that a study also be done in                                                                                       
Anchorage in order that the facilities                                                                                          
will join safely.  It will be computer                                                                                          
dispatched, which  will result in positive                                                                                      
train control and will cost $12.5 million                                                                                       
dollars.                                                                                                                        
1700                                                                                                                            
Governor Sheffield                                                                                                              
Motive power:  For new locomotives for                                                                                          
more power, and less operating cost.                                                                                            
There are only 32 locomotives.  With six                                                                                        
engines on a coal train, that would equal                                                                                       
3 new. This will eventually equate to much                                                                                      
savings down the road, however, they cost                                                                                       
$2 million dollars each.  The railroad has                                                                                      
been saving money and has money to place                                                                                        
down on the purchase.                                                                                                           
1750                                                                                                                            
Governor Sheffield                                                                                                              
Anchorage International Airport; Is                                                                                             
planing a $28 million rail facility. This                                                                                       
will happen during the airport remodel.                                                                                         
The train will load right up at the                                                                                             
airport and there will be a moving tunnel                                                                                       
and sidewalk.  He emphasized that this                                                                                          
will be very handy and will help to                                                                                             
deliver more people by rail.                                                                                                    
1858                                                                                                                            
Governor Sheffield                                                                                                              
Line Changes: Cut running time from                                                                                             
Wasilla by 40 minutes which will help                                                                                           
frieght, and passenger service; sets stage                                                                                      
for communter rail; Girdwood will be on                                                                                         
track as well.                                                                                                                  
2000                                                                                                                            
Governor Sheffield                                                                                                              
Summarized how it all fits together with                                                                                        
basic line changes improving train speed                                                                                        
and traffic capability,safety; New depots                                                                                       
and intermodal facilities serve growing                                                                                         
visitor industry; and Faster trains, good                                                                                       
facilities make better commuter service                                                                                         
possible.                                                                                                                       
                                                                                                                                
Governor Sheffield                                                                                                              
There is money in the federal budget for                                                                                        
Department of Transportation and Public                                                                                         
Facilities to connect to the best coal in                                                                                       
the world.  The railroad wants to have a                                                                                        
right a way and then build the line.                                                                                            
There is also interest for the trains to                                                                                        
go to Canada.                                                                                                                   
2075                                                                                                                            
Governor Sheffield                                                                                                              
Mentioned that the railroad had been built                                                                                      
to serve Interior Alaska.                                                                                                       
2085                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Questioned what was meant by line changes?                                                                                      
2094                                                                                                                            
Governor Sheffield                                                                                                              
Cutting out curves, straightening them                                                                                          
which involves straightening out track.                                                                                         
2116                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Asked if the entire complex of Denali                                                                                           
would be gone?                                                                                                                  
2141                                                                                                                            
Governor Sheffield                                                                                                              
Did not know the entire plan and that                                                                                           
currently, the Ak Railroad was consulting                                                                                       
with an arcitect firm.  He envisioned a                                                                                         
depot with greater and larger facilities.                                                                                       
2171                                                                                                                            
JIM KUBITZ, VICE                                                                                                                
PRESIDENT, ALASKA                                                                                                               
RAILROAD,                                                                                                                       
ANCHORAGE                                                                                                                       
There are many restrictions but there is                                                                                        
cooperation between the Park Center and                                                                                         
the Railroad.  More land is being given to                                                                                      
help the project.                                                                                                               
2224                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Asked about the sewage treatment plant.                                                                                         
2234                                                                                                                            
Mr. Kubitz                                                                                                                      
Replied that it would not be only a hotel.                                                                                      
2242                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
In Fairbanks, considering moving the rail                                                                                       
yard so that land could be used for                                                                                             
additional  purposes.                                                                                                           
2265                                                                                                                            
Governor Sheffield                                                                                                              
Plan to build it on Johnanson Road and the                                                                                      
railroad is working with Fairbanks now.                                                                                         
Department of Transportation and Public                                                                                         
Facilities could do an interchange so that                                                                                      
cars and trucks could easily access the                                                                                         
area and reroute traffic from Illinois                                                                                          
Street.                                                                                                                         
2307                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
Switching yards.                                                                                                                
2317                                                                                                                            
Governor Sheffield                                                                                                              
                                                                                                                                
2323                                                                                                                            
Co-Chair                                                                                                                        
Therriault                                                                                                                      
How does the Railroad interact with the                                                                                         
Department of Transportation and Public                                                                                         
Facilities in right-of-way aquisition                                                                                           
2345                                                                                                                            
Mr. Kubitz                                                                                                                      
Usually is a permit.                                                                                                            
2365                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Question about the Denali access?                                                                                               
2372                                                                                                                            
Mr. Kubitz                                                                                                                      
Plan to add an additional visitor center                                                                                        
for bigger tourist functions and adding a                                                                                       
foot path.                                                                                                                      
                                                                                                                                
TAPE CHANGE                                                                                                                     
HFC 99-53, SIDE 2.                                                                                                              
000                                                                                                                             
Mr. Kubitz                                                                                                                      
Plan to move the road for better access.                                                                                        
053                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
How many passengers per year in Denali.                                                                                         
077                                                                                                                             
Governor Sheffield                                                                                                              
700,000 passengers hauled per year on                                                                                           
various segments of the rail carriers.                                                                                          
Almost everyone who rides the train gets                                                                                        
to Denali eventually.                                                                                                           
138                                                                                                                             
Representative J.                                                                                                               
Davies                                                                                                                          
Asked if a large part of the ties were                                                                                          
fabricated in AK.                                                                                                               
156                                                                                                                             
Governor Sheffield                                                                                                              
30% are coming from Alaska. Hemlock is                                                                                          
used because it is the best of the soft                                                                                         
woods.  Across the country, hardwoods are                                                                                       
used.  Softwood can be used on the                                                                                              
straight surfaces.  The problem rests in                                                                                        
treating them.                                                                                                                  
260                                                                                                                             
Governor Sheffield                                                                                                              
There are people considering building a                                                                                         
treatment plant for this purpose.  Each                                                                                         
year, the railroad is cutting down costs a                                                                                      
little with tie rotation.                                                                                                       
340                                                                                                                             
Co-Chair Mulder                                                                                                                 
Where are the ties coming from in AK?                                                                                           
356                                                                                                                             
Governor Sheffield                                                                                                              
Coming from Wrangell.                                                                                                           
387                                                                                                                             
Co-Chair Mulder                                                                                                                 
What is the cost comparison of having it                                                                                        
made in Ak and shpping them out for                                                                                             
treating.                                                                                                                       
421                                                                                                                             
Governor Sheffield                                                                                                              
The same or a little more.  $40 per tie                                                                                         
when finished.  He pointed out that 2/3 of                                                                                      
that cost is shipping and treatment.                                                                                            
470                                                                                                                             
Co-Chair Mulder                                                                                                                 
Asked if the Railroad had considered using                                                                                      
concrete ties                                                                                                                   
480                                                                                                                             
Governor Sheffield                                                                                                              
Replied that the concrete ties can only be                                                                                      
used at the beginning and the end.  The                                                                                         
best tie in general cases is a wood tie.                                                                                        
Concrete can crack.  It depends on weather                                                                                      
conditions and the difference in                                                                                                
temperature between night and day in                                                                                            
Alaska is dramatic.                                                                                                             
559                                                                                                                             
Vice-Chair Bunde                                                                                                                
60 mph mile track                                                                                                               
593                                                                                                                             
Governor Sheffield                                                                                                              
Track speed is mostly 45-50 mph track.                                                                                          
622                                                                                                                             
Vice-Chair Bunde                                                                                                                
Plans for moose at 60 mph                                                                                                       
636                                                                                                                             
Governor Sheffield                                                                                                              
Replied that this was a good year for not                                                                                       
hitting a lot of moose.  A total of 80                                                                                          
moose were hit this year.  Crews are                                                                                            
running trails off the track, and the                                                                                           
trains are slowing down; there is more                                                                                          
help.  Less snow the last few years has                                                                                         
helped.                                                                                                                         
716                                                                                                                             
Vice-Chair Bunde                                                                                                                
Pointed out that there are still some                                                                                           
times of year that are not good.                                                                                                
736                                                                                                                             
Governor Sheffield                                                                                                              
Signalization will be built into the track                                                                                      
itself.                                                                                                                         
758                                                                                                                             
Representative                                                                                                                  
Williams                                                                                                                        
How far along is railroad in using Rodeo-                                                                                       
herbiside?                                                                                                                      
787                                                                                                                             
Governor Sheffield                                                                                                              
Have applied for a permit and put it on                                                                                         
hold.  Need more data and will reschedule                                                                                       
public hearings in six weeks.  Only                                                                                             
applied for permit for Anchorage,                                                                                               
Fairbanks and outside of Palmer yard for a                                                                                      
ten mile stretch.                                                                                                               
877                                                                                                                             
Governor Sheffield                                                                                                              
Added that this is a safety issue, Have                                                                                         
not used Round-up since 1983.  Weeds in                                                                                         
the road bed,are bad and dangerous for the                                                                                      
train hauling freight & passengers.  This                                                                                       
is a process that the Alaska Railroad is                                                                                        
trying to explain to the Alaskan people.                                                                                        
The Railroad can not afford to spend $2                                                                                         
million dollars per year to get rid of the                                                                                      
weeds using other means.                                                                                                        
998                                                                                                                             
Governor Sheffield                                                                                                              
Engineers need to see where they are                                                                                            
going.  600 employees want better control                                                                                       
of the vegetation.                                                                                                              
1039                                                                                                                            
Representative                                                                                                                  
Williams                                                                                                                        
Spoke in support in the use of chemicals.                                                                                       
Asked why the Railroad was waiting to use                                                                                       
it while it was costing the State $2                                                                                            
million dollars a year.  He pointed out                                                                                         
that in 1993, Governor Hickel was trying                                                                                        
to use it along the highways. There was                                                                                         
talk about communities adopting a piece of                                                                                      
highway and being responsible for keeping                                                                                       
it week free.  He understood that no one                                                                                        
had "adopted a mile" as originally                                                                                              
suggested.  He encouraged to continue                                                                                           
using Rodeo.                                                                                                                    
1149                                                                                                                            
Governor Sheffield                                                                                                              
There is a lot of information available on                                                                                      
herbicides and Round-Up.  He acknowledged                                                                                       
that he was trying to accumulate that info                                                                                      
in order to make a determination.                                                                                               
1219                                                                                                                            
Representative                                                                                                                  
Grussendorf                                                                                                                     
Appreciated that he is investigating the                                                                                        
data.  He asked about the $2.2 million                                                                                          
dollars in betting money.  He questioned                                                                                        
the amount of federal funds that are                                                                                            
received for the railroad.                                                                                                      
1261                                                                                                                            
Governor Sheffield                                                                                                              
Have received $10 million dollars per year                                                                                      
for road bed rehab.  That funding is not                                                                                        
reliable.  Senator Stevens has been                                                                                             
influencial in having that appropriated.                                                                                        
And his term ends in 2 years.                                                                                                   
1327                                                                                                                            
Representative                                                                                                                  
Grussendorf                                                                                                                     
Asked how reliable the other funding was.                                                                                       
1343                                                                                                                            
Governor Sheffield                                                                                                              
The ISTEA bill included funding and then                                                                                        
the formula was changed and the State                                                                                           
Railroad received $4.8 million dollars per                                                                                      
year for 6 years.  He stated that was a                                                                                         
good formula and the State now receives                                                                                         
$30 million for over six years which is                                                                                         
match money.  $7 million dollars will go                                                                                        
toward the GPS system.  The last of this                                                                                        
money will be received this year.  There                                                                                        
has been money received for the line                                                                                            
changes.  Track was welded                                                                                                      
1437                                                                                                                            
Governor Sheffield                                                                                                              
Everything the railroad is doing is to                                                                                          
make it safer and more efficient.  That                                                                                         
makes the railroad more reliable and to                                                                                         
increase the earnings while serving the                                                                                         
customer better.  Then earnings shall be                                                                                        
sufficient to maintain itself.                                                                                                  
1510                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Questioned future possibilities such as                                                                                         
Denali?                                                                                                                         
1531                                                                                                                            
Governor Sheffield                                                                                                              
$1 million dollar study of that line.  He                                                                                       
stated that he favored rail transportation                                                                                      
into the park.  It could carry masses of                                                                                        
people.  The park service has not                                                                                               
supported that.  There is money available                                                                                       
to provide a study which will happen soon.                                                                                      
1611                                                                                                                            
Representative J.                                                                                                               
Davies                                                                                                                          
Emphasis is clearly on safety.                                                                                                  
1624                                                                                                                            
Governor Sheffield                                                                                                              
Going to have a new grade separation at                                                                                         
"C" street in Anchorage.  Encouraged the                                                                                        
Municipality to figure out a way for                                                                                            
separation.  There were 2 derailments last                                                                                      
year.  It cost over $1 million dollars and                                                                                      
much time spent because of those. One had                                                                                       
a machinery malfuction and the other was a                                                                                      
track separation.                                                                                                               
1725                                                                                                                            
Governor Sheffield                                                                                                              
He added that there has been a number of                                                                                        
derailments in Whittier because of the                                                                                          
weather mess.                                                                                                                   
                                                                                                                                
1758                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked the appraised value of railroad?                                                                                          
1768                                                                                                                            
Governor Sheffield                                                                                                              
$200 million dollars in assets on the                                                                                           
balance sheet.  The State paid $22 million                                                                                      
for the railroad.                                                                                                               
1797                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked if the holdings have increased?                                                                                           
1809                                                                                                                            
Governor Sheffield                                                                                                              
Tremendous asset for the State.  The                                                                                            
actual cash in the bank separating the                                                                                          
federal funds is $15 million dollars or                                                                                         
more.  Federal funds amount to $20-$30                                                                                          
million dollars for spending for                                                                                                
construction projects; and there is $28                                                                                         
million dollars from the sale of a                                                                                              
railroad station. That is a federal grant.                                                                                      
1874                                                                                                                            
Co-Chair Mulder                                                                                                                 
He informed Committee members that "All                                                                                         
funds" have not included AHFC, AIDEA and                                                                                        
the Railroad.  This is an effort to show                                                                                        
all funds in working with the                                                                                                   
Administration.                                                                                                                 
1906                                                                                                                            
Governor Sheffield                                                                                                              
None of that money came from the State.                                                                                         
1918                                                                                                                            
Co-Chair Mulder                                                                                                                 
Agreed, that revenue was lost from slow                                                                                         
down.                                                                                                                           
1925                                                                                                                            
Governor Sheffield                                                                                                              
Will loose some from oil industry but will                                                                                      
be picking up some by tariff adjustment,                                                                                        
$1 million dollars.  Last year shipped 290                                                                                      
tons of coal.  Lost money from budget,                                                                                          
however, this year will reestablish.                                                                                            
1998                                                                                                                            
Co-Chair Mulder                                                                                                                 
Spoke to the real estate holdings.  He                                                                                          
asked for a listing of all holdings.                                                                                            
2025                                                                                                                            
Mr.Kubitz                                                                                                                       
Replied that the Railroad owns 36,000                                                                                           
acres of land.  1/3 is operational                                                                                              
property; 1/3 is leased property or which                                                                                       
+ of that is leased; the remaining is                                                                                           
tracks of land are not big money land                                                                                           
generators.  He offered to provide that                                                                                         
info to the Committee.                                                                                                          
2080                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked when would the master plan be                                                                                             
finished?                                                                                                                       
2099                                                                                                                            
Mr. Kubitz                                                                                                                      
Replied that it is in the process except                                                                                        
for the completed portion of Ship Creek.                                                                                        
2118                                                                                                                            
Governor Sheffield                                                                                                              
Also, the plan in the system has been                                                                                           
completed for Whittier; with a small plan                                                                                       
for the Chena landing area.                                                                                                     
2138                                                                                                                            
Co-Chair Mulder                                                                                                                 
Road bed money requires 20% match                                                                                               
2148                                                                                                                            
Mr. Kubitz                                                                                                                      
Explained all the work that requires the                                                                                        
20% match required by the feds for the                                                                                          
railroad.                                                                                                                       
2165                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked how much debt currently?                                                                                                  
2172                                                                                                                            
Governor Sheffield                                                                                                              
$2 million dollars this year.  Will rise                                                                                        
to $20 million dollars the end of this                                                                                          
year with the purchase of the new                                                                                               
locomotives.                                                                                                                    
2196                                                                                                                            
Governor Sheffield                                                                                                              
Vegetation control is done by inmates                                                                                           
through an arrangment with Department of                                                                                        
Corrections.  This has been done in the                                                                                         
past and the public usually does not know                                                                                       
it.                                                                                                                             
2254                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Asked if Whittier was involved in the                                                                                           
Master Plan.                                                                                                                    
2268                                                                                                                            
Governor Sheffield                                                                                                              
Whittier was involved with the plan and                                                                                         
was happy with it.  After 5 years, the                                                                                          
railraod will share revenues with the                                                                                           
City.  There is no tax base there.                                                                                              
2301                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Asked if there was anyone interested in                                                                                         
buying the railroad at this time.                                                                                               
2323                                                                                                                            
Governor Sheffield                                                                                                              
Has not received a letter for 2 years.                                                                                          
2335                                                                                                                            
Co-Chair Mulder                                                                                                                 
Voiced appreciation of the Alaska Railroad                                                                                      
for joining the Committee for the                                                                                               
overview.                                                                                                                       
2354                                                                                                                            
ADJOURNED                                                                                                                       
3:15 P.M.                                                                                                                       
                                                                                                                                
HOUSE FINANCE COMMITTEE                                                                                                         
LOG NOTES                                                                                                                       
                                                                                                                                
H.F.C. 1 3/25/99                                                                                                                

Document Name Date/Time Subjects