Legislature(2001 - 2002)

02/01/2001 08:10 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
     HOUSE COMMUNITY & REGIONAL AFFAIRS STANDING COMMITTEE                                                                    
                        February 1, 2001                                                                                        
                           8:10 a.m.                                                                                            
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Overview from the Local Boundary Commission                                                                                     
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
01-7, SIDES A & B                                                                                                               
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Representative Kevin  Meyer, Co-Chair of the  House Community and                                                               
Regional Affairs  Committee called the  meeting to order  at 8:10                                                               
a.m.                                                                                                                            
                                                                                                                                
PRESENT                                                                                                                       
                                                                                                                                
Committee  members present  were  Representatives Morgan,  Meyer,                                                               
Murkowski, Scalzi, Guess, Kerttula, and Halcro.                                                                                 
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
KEVIN  WARING,  Chair  of the  Local  Boundary  Commission  (LBC)                                                               
briefly   discussed    the   inception    of   the    LBC,   it's                                                               
responsibilities, and it's make up of members.                                                                                  
                                                                                                                                
MR. WARING explained the activities  of the commission during the                                                               
year 2000  and specifically discussed the  approved proposals for                                                               
the incorporation  of the City  of Adak  as a second  class city;                                                               
the annexation to  the City of Palmer, and the  annexation to the                                                               
City  of  Ketchikan.    Mr.  Waring  reviewed  the  consolidation                                                               
petitions before  the commission and  stated that for  the fourth                                                               
year  in  a  row  there  is not  outstanding  litigation  of  any                                                               
commission decision.                                                                                                            
                                                                                                                                
MR. WARING  turned to  public policy  issues that  the commission                                                               
raised in its  report to the legislature.   These issues concern:                                                               
disincentives for  borough incorporation and annexation  that are                                                               
impeding the  development of local government  in Alaska; several                                                               
ambiguities  in state  law that  affect municipal  incorporation,                                                               
boundary   changes,   dissolution,  and   reclassification;   the                                                               
unintended  adverse   impact  of   the  Alaska   Housing  Finance                                                               
Corporation's  Small Communities  Housing  Loan  Program on  some                                                               
boundary  proposals;  the lack  of  common  interests within  the                                                               
unorganized    borough,   notwithstanding    the   constitutional                                                               
requirement for  such; and proposed  changes to  the commission's                                                               
administrative regulations.                                                                                                     
                                                                                                                                
MR. WARING mentioned  that SB 48 introduced this  year by Senator                                                               
Gary Wilken  would remedy the issues  dealing with disincentives.                                                               
He then explained the proposed  changes to the regulations of the                                                               
commission.                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER  asked Mr. Waring to  explain the advantages                                                               
and disadvantages of the unorganized and organized borough.                                                                     
                                                                                                                                
MR.  WARING  answered that  local  government  is usually  better                                                               
government.   Organizing  boroughs  sometimes causes  controversy                                                               
and SB 48 would help with this problem.                                                                                         
                                                                                                                                
REPRESENTATIVE  MEYER  asked what  the  difference  is between  a                                                               
first and second class city.                                                                                                    
                                                                                                                                
MR. WARING explained  that a first class city  is responsible for                                                               
making  contributions  to local  education.    The commission  is                                                               
neutral on a  sales or a property  tax.  They suggest  one or the                                                               
other to provide  for services.  In the Denali  Borough they have                                                               
a strong tourism tax.                                                                                                           
                                                                                                                                
REPRESENTATIVE  GUESS   said  she  thought  the   advantages  for                                                               
education was four mills.                                                                                                       
                                                                                                                                
REPRESENTATIVE  MEYER asked  about  the length  of  time for  the                                                               
Talkeetna request.                                                                                                              
                                                                                                                                
MR. WARING explained  that the petition was  submitted awhile ago                                                               
but it  has been revised.   The  borough and local  citizens have                                                               
been working together on the revision.                                                                                          
                                                                                                                                
REPRESENTATIVE SCALZI  asked if  the commission must  have public                                                               
hearings, such as in Homer.                                                                                                     
                                                                                                                                
MR.  WARING  said that  no  public  hearings  are required  on  a                                                               
petition.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  MURKOWSKI asked  about  the  shoreline access  in                                                               
Ketchikan  and if  they are  now trying  to create  the Ketchikan                                                               
Gateway Borough.                                                                                                                
                                                                                                                                
MR. WARING  said that progress  is being made in  Ketchikan, they                                                               
are discussing  consolidation and  if the Shoreline  Service Area                                                               
should annex.   They  did meet  the standard,  but all  agreed to                                                               
wait a period of time as they look into consolidation.                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked about the Adak reuse program.                                                                    
                                                                                                                                
MR. WARING stated that the reuse program is going okay.                                                                         
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  asked  if  SB 48  takes  care  of  the                                                               
commission's concerns.                                                                                                          
                                                                                                                                
MR.  WARING said  it takes  care of  disincentives, but  there is                                                               
more work to be done.                                                                                                           
                                                                                                                                
REPRESENTATIVE  MEYER asked  what the  bed tax  is in  the Denali                                                               
Borough.                                                                                                                        
                                                                                                                                
MR. WARING answered that it is seven percent.                                                                                   
                                                                                                                                
REPRESENTATIVE  HALCRO  asked  what  the  motive  is  behind  the                                                               
Talkeetna desire to incorporate as a home rule city.                                                                            
                                                                                                                                
DAN BOCKHORST,  Local Boundary  Commission, Division of Community                                                               
and  Business Development,  Department  of  Community &  Economic                                                               
Development, answered  that it is  a desire to have  better local                                                               
control of services.                                                                                                            
                                                                                                                                
REPRESENTATIVE MORGAN  asked how many unorganized  boroughs there                                                               
are in the state.                                                                                                               
                                                                                                                                
MR. WARING answered, "one."                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  asked for  Mr. Waring's thoughts  on why                                                               
an unorganized borough should be incorporated.                                                                                  
                                                                                                                                
MR. WARING said the commission  sees different cases differently.                                                               
He said the  main reason to incorporate is for  the advantages of                                                               
local education.                                                                                                                
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no announcements.                                                                                                    
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
REPRESENTATIVE MEYER adjourned the hearing at 9:20 a.m.                                                                         
                                                                                                                                
                                                                                                                                
NOTE: The  meeting was  recorded and  handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment of  the second  session  of the  Twenty-Second                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at  (907) 465-3808.                                                                

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