SB 358-ALASKA RAILROAD TRACK WORK                                                                                             
                                                                                                                                
CHAIR ROKEBERG  announced that the  next order of  business would                                                               
be SENATE  BILL NO. 358, "An  Act relating to the  performance of                                                               
railroad   track  construction   work  for   the  Department   of                                                               
Transportation  and  Public  Facilities by  the  Alaska  Railroad                                                               
Corporation."                                                                                                                   
                                                                                                                                
Number 0426                                                                                                                     
                                                                                                                                
WENDY  LINDSKOOG,  Director,  External Affairs,  Alaska  Railroad                                                               
Corporation, informed the committee that  HB 529 is the companion                                                               
to SB  358.  The two  pieces of legislation are  identical and HB                                                               
529  was  heard   in  the  House  Labor   and  Commerce  Standing                                                               
Committee.  She explained that  ARRC entered into a collaborative                                                               
process  with Department  of Transportation  & Public  Facilities                                                               
(DOT&PF),  the Associated  General Contractors  (AGC), and  Local                                                               
341.   The process  led to a  memorandum of  understanding (MOU),                                                               
which specifically  provides the limitations and  guidelines with                                                               
regard  to how  the legislation  will be  administered.   The MOU                                                               
will  accompany  the  legislation,  she  noted.    Ms.  Lindskoog                                                               
explained that SB  358 provides DOT&PF flexibility  to use either                                                               
the  competitive  bid  process  or to  work  directly  with  ARRC                                                               
through  a utility  agreement when  the  department has  projects                                                               
that include track work.  The  reason for the legislation is that                                                               
there didn't seem to be much  interest from the private sector in                                                               
bidding  some  projects.    However,  once  the  legislation  was                                                               
introduced, it  was discovered that  there was interest  from the                                                               
private sector.   Therefore,  the MOU  struck a  good compromise.                                                               
Ms.  Lindskoog  clarified that  basically  ARRC  will work  under                                                               
utility  agreements  for critical  track  work  when it  involves                                                               
switches  and cut-overs  to the  mainline as  well as  other work                                                               
that require specialized equipment.                                                                                             
                                                                                                                                
MS. LINDSKOOG, in  response to Chair Rokeberg,  confirmed that HB                                                               
529 and SB 358 are exactly the same.                                                                                            
                                                                                                                                
CHAIR ROKEBERG  surmised that the  key element is the  MOU, which                                                               
makes  the legislation  generally  acceptable  to all  interested                                                               
parties in the state.                                                                                                           
                                                                                                                                
MS. LINDSKOOG replied yes.                                                                                                      
                                                                                                                                
CHAIR   ROKEBERG,  upon   determining  there   were  no   further                                                               
questions, closed public testimony.                                                                                             
                                                                                                                                
Number 0636                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  moved to report  SB 358 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
notes.   There being no objection,  SB 358 was reported  from the                                                               
House Rules Standing Committee.