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