SB 207-AK AEROSPACE DEVEL. CORP BD MEMBERSHIP ACTING CHAIR ROKEBERG announced that the first order of business would be CS FOR SENATE BILL NO. 207(FIN), "An Act relating to the membership on the Board of Directors of the Alaska Aerospace Development Corporation." 4:25:39 PM SENATOR GARY STEVENS, Alaska State Legislature, sponsor, explained that the bill would ensure that two members of the Alaska Aerospace Development Corporation (AADC) Board of Directors (Board) reside in Kodiak, where the AADC launches take place. In addition, he said, the bill would ensure that no members are removed from the Board in order to meet this requirement. He stated that there had been two members [from Kodiak] on the Board until recently. He said that Kodiak is the location of the majority of AADC's activities, including several rocket launches and construction projects. He stated that the facility in Kodiak is complex and has had an enormous impact on the community. He explained that the facility impacts the recreational activities, as beaches must be closed down and waters must be closed to fisherman when there is a rocket launch. He commented that it is important for Kodiak to have a voice when decisions are being made. SENATOR GARY STEVENS went on to say that this bill is supported by the community of Kodiak, Kodiak Island Borough, City of Kodiak, and by the [Kodiak] Chamber of Commerce. ACTING CHAIR ROKEBERG asked how many members are currently on the Board. SENATOR GARY STEVENS replied that there are seven members, including one member from Kodiak. REPRESENTATIVE GUTTENBERG asked for a description of the Board's duties and responsibilities. SENATOR GARY STEVENS replied that he served as the ex officio member of the Board, although he was unable to attend meetings. He said that the Board makes all decisions which impact the corporation, is responsible for hiring the director, and decides the direction of the corporation. 4:29:03 PM DAVE WOODRUFF, City of Kodiak, Alaska Aerospace Development Corporation (AADC) Board of Directors, said that he has been involved with the AADC project since its inception. He offered his understanding that when the project began, Kodiak was promised two seats on the Board. He stated that at that time, he was not aware that the AADC was a state corporation, and was, therefore, unaware that there was no requirement to have two Kodiak Board members. MR. WOODRUFF went on to say that, as the host city, Kodiak is responsible for transporting the rockets to and from the launch site, in addition to responding to complaints from community members regarding the AADC's actions. 4:31:06 PM MR. WOODRUFF, in response to a question, said that the Board members have overlapping terms, and he added that the intent of the bill is to place an additional Kodiak resident on the Board and maintain two members from Kodiak in the future. REPRESENTATIVE GUTTENBERG asked what would happen to the public seat if one of the scientists or corporate members was from Kodiak. MR. WOODRUFF opined that it would not be difficult to find a qualified member from Kodiak. He stated that in the past, the members have been drawn from the business community. REPRESENTATIVE GUTTENBERG asked if there is a subcommittee of the city council that monitors the Board meetings and reports back to the city council and the public. MR. WOODRUFF replied that Martha Schoenthal [Vice President of Business Operations, AADC] visits Kodiak on a quarterly basis to explain what is currently happening. He noted that he, as a Board member, also reports back to the community. ACTING CHAIR ROKEBERG asked if it would be beneficial to amend the bill to include a state liaison. MR. WOODRUFF replied that the communication between the Kodiak Borough Assembly, the Kodiak City Council, and the AADC has always been open, keeping all the parties updated. 4:37:17 PM BARBARA WILLIAMS, Member, Kodiak Island Borough Assembly, said that Martha Schoenthal of AADC has visited Kodiak two or three times in the past year. She expressed that [the borough] would like to see this continue, as this has been "very helpful." She went on to say that the borough would like to see two representatives from Kodiak on the Board in order to maintain a continuous flow of current and accurate information. ACTING CHAIR ROKEBERG said "It seems to me as if there's always been - ... because of the nature and size of the population ... - some almost incidental cross fertilization between ... the city council, and the borough assembly, and this Board. ... Nothing formal, even in the committee substitute, ... requires that. Do you think that would be an improvement if we had some mandate ... [that] one member was a member of a local governmental body, as well as meeting the other requirements?" MS. WILLIAMS opined that it would be helpful, as [the city council and borough assembly members] are the most aware of community concerns. However, she said that a person in the private sector would serve "just as well," especially if the individual had the knowledge required to understand problems that may arise. She added that this might be someone with military or aerospace background. 4:40:20 PM CECIL RANNEY, Kodiak Borough Assembly, expressed agreement with the previous testimony. He said that the communication between the AADC and Kodiak has been "rocky" in the past; however, over the past year, due to the efforts of [Mr. Woodruff], there is a better understanding of the AADC's actions. He noted that the quarterly reports have been helpful, and he stated that he would support having two members from Kodiak on the Board. 4:41:44 PM ACTING CHAIR ROKEBERG asked Senator Gary Stephens if there would be any merit in expanding the qualification requirements of the public members. SENATOR GARY STEVENS replied that this may not be necessary, as having two Board members from Kodiak has worked sufficiently in the past. He opined that there is wisdom in having members from Kodiak who can solve problems before they occur. He stated that in the past, there have been problems with rumors and a lack of sensitivity to local fishermen and residents. REPRESENTATIVE LEDOUX said, "I think this is an excellent bill," and she noted that there has been friction between the AADC and the community of Kodiak. She added that having two local members on the Board would help both the community of Kodiak and the AADC by stopping problems before they become even larger. REPRESENTATIVE GUTTENBERG, referring to [page 1, line 9], asked what the qualification is for a "high level [of experience]." SENATOR GARY STEVENS replied that he is not aware of a definition, although this means that a person may be denied if they do not have the necessary experience. He noted that this is a statewide board. REPRESENTATIVE GUTTENBERG asked if designating members from a specific geographic location on a statewide board is troubling from a statewide perspective. SENATOR GARY STEVENS replied that this may be of concern; however, all of AADC's actions affect Kodiak. He stated that it is important to ensure that there is local representation when a particular community is affected. REPRESENTATIVE GUTTENBERG asked if the flats are under AADC. SENATOR GARY STEVENS said no. 4:46:55 PM REPRESENTATIVE ROKEBERG closed public testimony. 4:47:10 PM REPRESENTATIVE LEDOUX moved to report CSSB 207(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSSB 207(FIN) was reported from the House Labor and Commerce Standing Committee.