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