HomeMy WebLinkAboutRes1997-023
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Sponsored by: Bencardino and Clark
CITY OF SEWARD, ALASKA
RESOLUTION NO. 97-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, OPPOSING CERTAIN CHANGES IN THE STATUS OF THE
ALASKA RAILROAD
WHEREAS, the Alaska Railroad was purchased by the State of Alaska to encourage its
operation for the benefit of the citizens of Alaska; and
WHEREAS, currently, a Board of Directors, appointed by the Governor, conducts the
Railroad's operations independent of other state activities as a for-profit business employing
professional private sector railroad managers and well-trained, highly qualified workers who negotiate
their contracts outside of state payroll and retirement systems; and
WHEREAS, under an independent Board of Directors, the Alaska Railroad has turned a profit
for nine of the last eleven years and, in 1996 achieved an annual profit of over eight million dollars, all
without state or other subsidies, and it has demonstrated during this short period that the State of Alaska
made good management policy and operational decisions when it initially set up the Alaska Railroad;
and
WHEREAS, notwithstanding the benefits and success of the Alaska Railroad outlined above,
certain efforts are being made within the State Legislature to change the current status of the Alaska
Railroad;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, that:
Section 1. At this time, the City of Seward opposes any legislative or administrative effort to:
I. sell the Alaska Railroad to a private operator;
2, force the railroad to operate under the Executive Budget Act, thus exposing it
to the political process; or
3, take or control Alaska Railroad land
for the following reasons:
right-of-way;
I, If the Alaska Railroad were sold to a private operator:
a) the State could lose up to $147 million in payments for fiber-optic cable
b) the private operator may not operate the Railroad in as benevolent a
manner as its is currently operating, with "flag" stops, special agreements with large corporations and
the University of Alaska, land use provided for recreational and scenic purposes, and care for the desires
of the State's residents; and
c) the private operator/company may not be willing to spend appropriate
funds for maintenance, repair and expansion,
CITY OF SEWARD, ALASKA
RESOLUTION NO. 97-023
2, Should the Alaska Railroad be operated under the Executive Budget Act, it
would be subject to political pressures and its operational flexibility would be severely limited, The
Railroad could no longer operate at a profit as it has over the past eleven years since its history of
profitability is tied directly to its ability to run like a successful business. Swift reaction to changes or
events are not possible under the Executive Budget Act. Many people feel that private operators control
public services better than government. If that is true, we currently have the best of both worlds - The
Alaska Railroad is being operated like the private sector while retaining its public responsibility,
3, Removing the control of railroad land from the Alaska Railroad Corporation
would be the beginning of the end for the Railroad. The federal government realized that it takes
railroad land holdings to successfully operate a railroad, not only for the actual operation, but also to
provide income from leaseholders. When the State purchased the Railroad, both the Governor and the
Legislature not only wanted the Railroad to run like a private business, they insisted that the land be
transferred to the State along with the actual track, equipment and moving stock. The Railroad
continues to responsibly develop its land holdings, creating vital income.
Section 2. BE IT FURTHER RESOLVED that copies of this resolution shall be sent to the
Honorable Tony Knowles, Govern or Alaska; Governor Bill Sheffield, Chairman of the Board of the
Alaska Railroad Corporation; and all members of the Alaska State Legislature.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th day
of February, 1997,
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
Anderson, Bencardino, Blatchford, Clark, Crane, Keil, King
None
None
None
ATTEST:
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