Legislature(1997 - 1998)

03/20/1998 08:00 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
        HOUSE COMMUNITY AND REGIONAL AFFAIRS                                   
                 STANDING COMMITTEE                                            
                   March 20, 1998                                              
                     8:00 a.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Ivan Ivan, Chairman                                             
Representative Fred Dyson                                                      
Representative Scott Ogan                                                      
Representative Joe Ryan                                                        
Representative Jerry Sanders                                                   
Representative Albert Kookesh                                                  
Representative Reggie Joule                                                    
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 208 am                                                         
"An Act relating to municipal service areas and providing for voter            
approval of the formation, alteration, or abolishment of certain               
service areas; and providing for an effective date."                           
                                                                               
     - MOVED HCSSB 208(CRA) OUT OF COMMITTEE                                   
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: SB 208 am                                                                
SHORT TITLE: VOTER APPROVAL OF SERVICE AREA CHANGES                            
SPONSOR(S): SENATOR(S) PARNELL                                                 
                                                                               
Jrn-Date    Jrn-Page           Action                                          
 1/12/98      2164     (S)  PREFILE RELEASED 1/2/98                            
 1/12/98      2164     (S)  READ THE FIRST TIME - REFERRAL(S)                  
 1/12/98      2164     (S)  CRA, JUD                                           
 2/09/98               (S)  CRA AT 1:30 PM BUTROVICH ROOM 205                  
 2/09/98               (S)  MINUTE(CRA)                                        
 2/10/98      2461     (S)  CRA RPT 1DP 4NR                                    
 2/10/98      2461     (S)  DP: PHILLIPS                                       
 2/10/98      2461     (S)  NR: DONLEY, HOFFMAN, MACKIE, WILKEN                
 2/10/98      2461     (S)  ZERO FISCAL NOTE (DCRA)                            
 2/25/98               (S)  JUD AT 1:30 PM BELTZ ROOM 211                      
 2/25/98               (S)  MINUTE(JUD)                                        
 2/26/98               (S)  MINUTE(RLS)                                        
 2/26/98      2659     (S)  JUD RPT 3DP 2NR                                    
 2/26/98      2659     (S)  DP: PARNELL, MILLER, PEARCE                        
 2/26/98      2659     (S)  NR:  TAYLOR, ELLIS                                 
 2/26/98      2659     (S)  PREVIOUS ZERO FNS (DCRA)                           
 2/27/98      2680     (S)  RULES TO CALENDAR 2/27/98                          
 2/27/98      2681     (S)  READ THE SECOND TIME                               
 2/27/98       2681     (S)  ADVANCED TO THIRD READING UNAN CONSENT            
 2/27/98      2681     (S)  READ THE THIRD TIME SB 208                         
 2/27/98      2682     (S)  PASSED Y16 N2 E2                                   
 2/27/98      2682     (S)  SHARP NOTICE OF RECONSIDERATION                    
 3/02/98      2702     (S)  RECON TAKEN UP - IN THIRD READING                  
 3/02/98      2702     (S)  RETURN TO SECOND FOR AM #1 UNAN                    
                            CONSENT                                            
 3/02/98      2702     (S)  AM NO 1 ADOPTED UNAN CONSENT                       
 3/02/98      2704     (S)  AUTOMATICALLY IN THIRD READING                     
 3/02/98       2704     (S)  PASSED ON RECONSIDERATION Y17 N- E2 A1            
 3/02/98      2704     (S)  EFFECTIVE DATE(S) SAME AS PASSAGE                  
 3/02/98      2706     (S)  TRANSMITTED TO (H)                                 
 3/04/98      2489     (H)  READ THE FIRST TIME - REFERRAL(S)                  
 3/04/98      2489     (H)  C&RA                                               
 3/11/98               (H)  CRA AT 8:00 AM CAPITOL 124                         
 3/11/98               (H)  MINUTE(CRA)                                        
 3/18/98               (H)  CRA AT 8:00 AM CAPITOL 124                         
 3/18/98               (H)  MINUTE(CRA)                                        
 3/20/98               (H)  CRA AT 8:00 AM CAPITOL 124                         
                                                                               
WITNESS REGISTER                                                               
                                                                               
SENATOR PARNELL                                                                
Alaska State Legislature                                                       
Capitol Building, Room 504                                                     
Juneau, Alaska  99801                                                          
Telephone:  (907) 465-2995                                                     
POSITION STATEMENT:  Sponsor of SB 208.                                        
                                                                               
OCIE ADAMS, Secretary                                                          
Mat-Su Local Road Service Area Advisory Board                                  
HC 30, Box 200                                                                 
Wasilla, Alaska 99654                                                          
Telephone:  (907) 373-6690                                                     
POSITION STATEMENT:  Testified in support of SB 208.                           
                                                                               
WILLIAM LARKIN, Road Service Area Supervisor                                   
Road Service Area 25                                                           
P.O. Box 2067                                                                  
Palmer, Alaska 99645                                                           
Telephone:  (907) 745-3884                                                     
POSITION STATEMENT:  Testified on SB 208.                                      
                                                                               
DAN LaSOTA, Assembly Member                                                    
Fairbanks North Star Borough                                                   
693 Manchester Loop                                                            
Fairbanks, Alaska                                                              
Telephone:  (907) 479-0650                                                     
POSITION STATEMENT:  Testified in opposition to SB 208.                        
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 98-19, SIDE A                                                             
Number 0001                                                                    
                                                                               
CHAIRMAN IVAN IVAN called the House Community and Regional Affairs             
Standing Committee meeting to order at 8:00 a.m.  Members present              
at the call to order were Representatives Ivan, Dyson, Ogan and                
Sanders.  Representative Joule arrived at 8:04 a.m., and                       
Representatives Ryan and Kookesh arrived at 8:11 a.m.,                         
respectively.                                                                  
                                                                               
SB 208 am - VOTER APPROVAL OF SERVICE AREA CHANGES                             
                                                                               
Number 0037                                                                    
                                                                               
CHAIRMAN IVAN announced the first order of business would be SB 208            
am, "An Act relating to municipal service areas and providing for              
voter approval of the formation, alteration, or abolishment of                 
certain service areas; and providing for an effective date."  He               
said he would entertain a motion for the adoption of the proposed              
committee substitute (CS).                                                     
                                                                               
Number 0083                                                                    
                                                                               
REPRESENTATIVE SCOTT OGAN made a motion to adopt the proposed CS,              
0-LS0632\F, dated 3/18/98.  There being no objection, HCSSB 208,               
Version F was adopted.                                                         
                                                                               
SENATOR PARNELL, sponsor, told the committee the work draft,                   
Version F, incorporates the changes, due to some of the concerns               
that were expressed at the last meeting.  He referred to page 2,               
line 8, subsection (c), "If voters reside within a service area,"              
and said that subsection is changed to allow those who live in the             
service area to vote, not the property owners who may live                     
somewhere else outside the service area.  He then referred to lines            
18-19 of page 2 noting that there is an exemption for the fire                 
service protection area.  He stated that the last change is on page            
2, line 21, is the effective date, July 1, 1998, was added because             
the title said, "and providing for an effective date."                         
                                                                               
CHAIRMAN IVAN called on the next witness to testify.                           
                                                                               
Number 0231                                                                    
                                                                               
OCIE ADAMS, Secretary, Mat-Su Local Road Service Area Advisory                 
Board, testified via teleconference from the Mat-Su Legislative                
Information Office (LIO).  He commended the committee for their                
work on the bill.  He said he feels the recent changes will allow              
this bill to go forward without the constitutional challenge that              
would have been a real possibility, had it gone as written.  He                
commented he supports the committee's efforts.  He referred to page            
2, line 3, of HCSSB 208, the word "or," stating that the language              
as written is making this an optional event for voter approval                 
(indisc.) city and borough approval of the city consolidation                  
(indisc.) city to be brought into the service area or vice versa.              
He said he talked with the legal staff at the assembly and asked               
for their legal opinion and they said the word "or" in subsection              
(1) would eliminate subsection 2 on line 4, which states:  "(2)                
approval is granted by a majority of voters residing in the city,              
and by a majority of voters residing inside the boundaries of the              
proposed service area but outside of the city."  He said even if it            
was elected by the city and borough to go with option 1, they make             
the decisions.  He expressed the word "or" in subsection (1) is the            
only problem they have with this legislation.  He said he would                
again ask for a legal opinion on the word, if that prohibits the               
vote, if the city and borough elects not to have a vote.                       
                                                                               
Number 0373                                                                    
                                                                               
SENATOR PARNELL advised the committee they are not changing                    
existing law in this area; this is existing law.  He stated that he            
and the Senate chose not to use the word "and" on page 2, line 3,              
because they didn't want to get into the realm of annexing the                 
cities and boroughs and to change that area of law in this piece of            
legislation.  He said if they changed the word from "or" to "and,"             
it would definitely make it tougher to bring (indisc.) include a               
city in a service area if, not only the city has to agree by                   
ordinance but approval has to be obtained from the majority of the             
voters.  He indicated he understands Mr. Adams' concerns but it is             
outside the scope of legislation.  He stated that they are not                 
changing existing law in that area.  He noted he appreciates Mr.               
Adams' support of the bill.                                                    
                                                                               
Number 0445                                                                    
                                                                               
WILLIAM LARKIN, Road Service Area Supervisor, Road Service Area 25;            
Chairman, Road Service Advisory Board, testified via teleconference            
from the Mat-Su LIO.  He said for the most part, he agrees                     
completely with the bill.  He said he feels what it does is to                 
allow the people to make decisions that affect them in many ways.              
He said he knows that a number of municipalities, boroughs and                 
assemblies are objecting to the bill because they believe that it              
infringes on their right to dictate to the public.  He stated that             
the public should be able to make their own decisions on what                  
effects them, not only in (indisc.), but also in the types and the             
kinds of service they want.  He mentioned people in Talkeetna do               
not expect the same service as the people living in the (indisc.)              
areas and indicated they do not want to pay the same price as the              
people in the (indisc.).  It allows them the freedom that was the              
intent of (indisc.).  He said that this bill will allow the people             
a lot more control over their own destiny.  He thanked the                     
committee for their work on the bill.                                          
                                                                               
Number 0582                                                                    
                                                                               
DAN LaSOTA, Assembly Member, Fairbanks North Star Borough,                     
testified in opposition to SB 208.  He said he has been working                
with the sponsor trying to come up with amendments but they have               
not been able to agree on a possible solution to the bill.  He said            
all of the objections that have been raised from the Department of             
Community and Regional Affairs and municipalities still hold.  One             
of their concerns is the cost of elections that will be incurred by            
the service area when an election is mandated upon them.  He said              
the costs of those elections, whether or not they run the same time            
as a municipal election and to be able to run a fair and clean                 
election they have to give proper notice to people.  Notices need              
to be sent to property owners and maps of the area need to be                  
displayed in a newspaper or public record which costs money.  In               
Fairbanks, they are looking at a minimum cost, due to the display              
ads, of approximately $1,500.  The "ramp up" cost for the mail out             
that is directly proportional to how many people would live in an              
area and on small service areas, it wouldn't be much more than                 
approximately $1,500.  He said in some of the mid-size service                 
areas in Fairbanks, that cost would go up to about $2,000-3,000.               
In some of the larger service areas, that cost would be about                  
$10,000.  He pointed out his municipal court contacted the clerk in            
the Mat-Su Borough and asked to estimate, on some of their larger              
road service areas, what the cost would be to perform an election.             
The Mat-Su clerk estimated that that cost would be $20,000.  He                
stated that that sum of money isn't large compared with the budgets            
the Fairbanks Assembly and legislature deals with but for a service            
area, those funds are large.  Some of the service areas in                     
Fairbanks don't have any money in their reserve account.  He said              
the question then becomes how an election's going to be paid for.              
He noted that a member of the Road Service Area contacted the                  
committee with their concerns and that they may be hesitant to                 
offer support for this if they realize that performing an election             
will come out of their road service area funds and basically eat               
their operating expenses up.  He said they will not be able to                 
remove the snow from the roads or deliver proper service if they               
are performing these elections.                                                
                                                                               
Number 0791                                                                    
                                                                               
REPRESENTATIVE FRED DYSON thanked Mr. LaSota for having enough                 
interest to testify in person to work on this legislation, which he            
believes shows a level of commitment and responsibility.  He said              
he would commit to working with Mr. LaSota during the interim to               
come up with some better solutions to fix the problems that Mr.                
LaSota has expressed.  He said he suspects he will have a similar              
problem in his district.  He said his guess is that this bill will             
pass and told Mr. LaSota not to think of it as the end of the                  
world, that the committee will continue to work on the bill to                 
shape it up.  He encouraged Mr. LaSota to not put the cost of an               
election on the Road Service Advisory Board (indisc.) in the area.             
He remarked democracy is expensive and stated that the alternative             
might be cheap and efficient, but (indisc.).                                   
                                                                               
MR. LaSOTA commented that running an election is what government               
does as a normal course of business.  He said running a clean and              
fair election in Fairbanks costs quite a bit of money, which the               
Fairbanks Assembly pays for.  The alternative is not possible; you             
must run a fair and clean election and people must be notified.  He            
noted that the reason why it hasn't been an issue with service area            
elections up to this point is because when you create an area or               
you annex an area, there is no entity to bill out.  The new                    
residents coming into an area or the new residents wishing to                  
create an area in the first place, are members of the general                  
borough.  He said if the legislature mandates an election to occur             
within a service area, in his opinion, that money must come from               
the service area.  It's not fair to charge residents outside of the            
service area for something that is going to benefit only the                   
members of the particular service area.  He said the whole concept             
of the service areas, as established in the constitution, was to               
limit the costs and charges associated with the service to the                 
people who want to pay for it.  Mr. LaSota said he thinks the                  
residents of Salcha and North Pole are going to have a problem with            
paying for a service area charge that's being performed in Esther.             
He told the committee if they look in their own communities where              
there are different areas, people don't like to pay for things that            
they're not going to get.  He said it might be nice if the bill                
addresses everyone; however, the legislature might find a legal                
challenge from the people who don't want to pay for it.                        
                                                                               
Number 0992                                                                    
                                                                               
REPRESENTATIVE JOE RYAN noted that the legislature still gives                 
municipal assistance to the organized boroughs, granted it's not as            
much as they have given in the past, but that money is supposed to             
show up on their tax bill as to lowering the cost of their mill                
rates.  To him, it seems that there's a management problem in                  
places that have a problem finding funding, noting that they can               
use municipal assistance funds to take care of administrative costs            
in servicing those areas of that municipality.  He said, that, of              
course, is a choice that is left up to the various governing bodies            
and that action of using those funds will preclude having to tax               
somebody else for another service.  He indicated there is money                
available.                                                                     
                                                                               
Number 1053                                                                    
                                                                               
REPRESENTATIVE DYSON made a motion to move HCSSB 208(CRA) out of               
committee with individual recommendations and the attached zero                
fiscal note(s).                                                                
                                                                               
REPRESENTATIVE ALBERT KOOKESH objected to the motion.                          
                                                                               
Number 1079                                                                    
                                                                               
REPRESENTATIVE DYSON said he believes there are some interesting               
and fundamental principals involved, although it does make sense to            
have economies of scale.  There's a lot of things that really go               
better with decentralization.  He said the service area concept is             
one of those genius areas that when the Anchorage borough and city             
came together and united approximately two decades ago, the service            
area concept was negotiated and allowed the firmer areas of the                
borough to have control and tax themselves to a level they wanted              
(indisc.).  He indicated it worked admirably well.  He noted that              
his area started this politics business by being on the Road                   
Service Area Advisory Board and they hired local contractors who               
were seeking employment in the off-season and pointed out that they            
have always plowed their roads a day and a half sooner than the                
rest of the area for about .70 on the dollar.  He said their parks             
and recreation board was able to convince the voters to tax                    
themselves to run their own parks, which worked admirably well.  He            
stated that there's still the question, "Do you want everything                
centralized with economies of scale or do we want to have local                
control, local involvement?" noting that in this case, being able              
to give local people lots of work.                                             
                                                                               
Number 1182                                                                    
                                                                               
REPRESENTATIVE DYSON said this legislation gets to the heart of two            
things:  one is that you keep a deal.  He said in Anchorage when               
they negotiated the relationship between the borough and the city,             
the city tried to break the deal for 15 years with people who                  
reside in the South Anchorage area.  As he understands the intent              
of this legislation, it would keep that from happening in the                  
future without the will of the people.  It would not allow the                 
government to maneuver to break the deal.  The other thing this                
legislation does is prevent shotgun marriages when you have one                
unwilling participant.  He said he believes that is a fundamental              
principle in our form of government.  He said he would encourage               
people to do this, for reasons mentioned, for local involvement and            
decentralization.  He reiterated that we need to allow people to               
control their own destiny.  He indicated he agrees with the critics            
of this bill stating that it's messy sometimes, but our form of                
government is messy.  It takes a lot of negotiation and it takes               
time to come to a consensus.  His view is that the legislature, as             
public policy makers and the population in general, will never do              
the right thing at the right time.  He noted the few times that                
they've recognized what the right thing to do takes a while to get             
the public support.  He added, "We muddle through and get there and            
we preserve something that's inordinately precious and that's the              
right to self determination with local control."                               
                                                                               
CHAIRMAN IVAN asked for a roll call.  Representatives Dyson, Joule,            
Ogan, Ryan, Sanders and Ivan voted in favor of HCSSB 208(CRA).                 
Representative Kookesh voted against HCSSB 208(CRA).  HCSSB
208(CRA) moved out of the House Community and Regional Affairs                 
Standing Committee.                                                            
                                                                               
Number 1304                                                                    
                                                                               
CHAIRMAN IVAN said before the committee closes the bill before                 
them, he wanted to make a disclosure, one that he did not                      
appreciate, which was in the form of a fiscal note delivered to his            
office and committee staff.  He noted that there are procedures for            
fiscal notes stating that his office did not accept that fiscal                
note, the committee did not order a fiscal note, and pointed out               
that the statute covers fiscal note procedures.  He indicated he               
did not appreciate the action that occurred which he said was                  
designed to slow down or hurt the (indisc.) process and he would               
not let that happen.                                                           
                                                                               
CHAIRMAN IVAN then explained the agenda for the following week.                
                                                                               
Number 1371                                                                    
                                                                               
CHAIRMAN IVAN adjourned the House Community and Regional Affairs               
Standing Committee at 8:22 a.m.                                                

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