Legislature(1993 - 1994)

02/23/1993 01:00 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                        February 23, 1993                                      
                            1:00 p.m.                                          
  MEMBERS PRESENT                                                              
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chairman                                  
  Representative Con Bunde                                                     
  Representative John Davies                                                   
  Representative Cynthia Toohey                                                
  Representative Ed Willis                                                     
  MEMBERS ABSENT                                                               
  Representative Bill Williams                                                 
  OTHER HOUSE MEMBERS PRESENT                                                  
  Representative Gail Phillips                                                 
  COMMITTEE CALENDAR                                                           
  *HB 1:    "An Act establishing a motor vehicle recycling                     
            grant fund and a motor vehicle recycling                           
            registration fee; and providing for an effective                   
            SSHB 1 PLACED IN SUBCOMMITTEE, CHAIRED BY                          
            REPRESENTATIVE SANDERS                                             
  SJR 20:   Disapproving the Local Boundary Commission                         
            recommendation regarding the annexation of                         
            territory to the City of Palmer."                                  
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
  (* first public hearing)                                                     
  WITNESS REGISTER                                                             
  Representative Gail Phillips                                                 
  Capitol Building, Room 216                                                   
  Juneau, Alaska  99811-1182                                                   
  Phone: 465-2689                                                              
  POSITION STATEMENT: Prime Sponsor, SSHB 1                                    
  Kent Swisher, Executive Director                                             
  Alaska Municipal League                                                      
  217 Second Street, Suite 200                                                 
  Juneau, AK  99801                                                            
  Phone: 586-1325                                                              
  POSITION STATEMENT: Supported SSHB 1                                         
  Russell Heath, Executive Director                                            
  Alaska Environmental Lobby, Inc.                                             
  P.O. Box 22151                                                               
  Juneau, AK  99802                                                            
  Phone: 463-3366                                                              
  POSITION STATEMENT: Supported SSHB 1                                         
  Jim Kohler, Executive Director                                               
  Southeast Conference                                                         
  124 West 5th Street                                                          
  Juneau, AK  99801                                                            
  Phone: 463-3445                                                              
  POSITION STATEMENT: Supported SSHB 1                                         
  Jeff Ottesen, Chief of Right-of-Way and Environment                          
  Division of Engineering and Operating Standards                              
  Department of Transportation and Public Facilities                           
  3132 Channel Drive                                                           
  Juneau, AK  99801                                                            
  Phone: 465-6954                                                              
  POSITION STATEMENT: Supported SSHB 1                                         
  Janice Adair, Assistant Commissioner                                         
  Department of Environmental Conservation                                     
  410 Willoughby Avenue, Suite 301                                             
  Juneau, AK  99801-1795                                                       
  Phone: 465-5010                                                              
  POSITION STATEMENT: Supported the concept of SSHB 1                          
  Bruce Geraghty, Deputy Commissioner                                          
  Department of Community and Regional Affairs                                 
  P.O. Box 112100                                                              
  Juneau, AK  99811                                                            
  Phone: 465-4700                                                              
  POSITION STATEMENT: Opposed SJR 20                                           
  Lee A. Wyatt                                                                 
  The Eyak Corporation                                                         
  4792-5 Business Park Blvd.                                                   
  Anchorage, AK  99503                                                         
  Phone: 561-7161                                                              
  POSITION STATEMENT: Provided information against the                         
                      proposed  Cordova Annexation                             
  Shirley Armstrong, Legislative Aide to                                       
    Senator Randy Phillips                                                     
  Capitol Building, Room 103                                                   
  Juneau, AK  99811-1182                                                       
  Phone: 465-4949                                                              
  POSITION STATEMENT: Described interests and testimony of                     
                      property owners affected by SJR 20                       
  PREVIOUS ACTION                                                              
  BILL:  HB   1                                                                
  BILL VERSION: SSHB 1                                                         
  SPONSOR(S):   REPRESENTATIVE(S) PHILLIPS,Finkelstein,                        
  TITLE: "An Act establishing a motor vehicle recycling grant                  
  fund and a motor vehicle recycling registration fee; and                     
  providing for an effective date."                                            
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        25    (H)   PREFILE RELEASED                                 
  01/11/93        25    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        25    (H)   CRA, RESOURCES, FINANCE                          
  01/13/93        52    (H)   SPONSOR SUBSTITUTE INTRODUCED                    
  01/13/93        52    (H)   CRA, RESOURCES, FINANCE                          
  01/20/93       116    (H)   COSPONSOR(S): FINKELSTEIN                        
  01/27/93       167    (H)   COSPONSOR(S): NORDLUND                           
  02/11/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  02/23/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  BILL:  SJR 20                                                                
  BILL VERSION:                                                                
  SPONSOR(S):   COMMUNITY & REGIONAL AFFAIRS                                   
  TITLE: Disapproving the Local Boundary Commission                            
  recommendation regarding the annexation of territory to the                  
  City of Palmer.                                                              
  JRN-DATE     JRN-PG               ACTION                                     
  02/10/93       316    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/10/93       316    (S)   COMMUNITY AND REGIONAL AFFAIRS                   
  02/16/93              (S)   CRA AT 09:00 AM BUTROVICH ROOM                   
  02/16/93              (S)   MINUTE(CRA)                                      
  02/17/93       384    (S)   CRA RPT  3DP 1NR                                 
  02/17/93       384    (S)   ZERO FISCAL NOTE (S.CRA/CRA)                     
  02/18/93              (S)   RLS AT 11:30 AM FAHRENKAMP                       
                              ROOM 203                                         
  02/18/93              (S)   MINUTE(RLS)                                      
  02/19/93       410    (S)   RULES TO CALENDAR  2/19/93                       
  02/19/93       417    (S)   HELD TO 2/22/93                                  
  02/22/93       441    (S)   READ THE SECOND TIME                             
  02/22/93       441    (S)   ADVANCED TO THIRD READING UNAN                   
  02/22/93       441    (S)   READ THE THIRD TIME  SJR 20                      
  02/22/93       442    (S)   PASSED Y16 N1 E2 A1                              
  02/22/93       444    (S)   TRANSMITTED TO (H)                               
  02/23/93              (H)   CRA AT 01:00 PM CAPITOL 124                      
  ACTION NARRATIVE                                                             
  TAPE 93-8, SIDE A                                                            
  Number 000                                                                   
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:06                   
  p.m.  He noted for the record that Representatives Sanders,                  
  Toohey, Bunde, Davies and Willis were present.                               
  SSHB 1:  MOTOR VEHICLE RECYCLING GRANT FUND & FEE                            
  her sponsor statement saying, "The purpose of this                           
  legislation is to increase the present annual motor vehicle                  
  registration fee by $2.00 and allow the legislature to                       
  appropriate these additional revenues into a motor vehicle                   
  recycling grant fund.  The fund would then be utilized to                    
  provide grants to municipalities to pay for the costs of                     
  transporting abandoned motor vehicles to recycling centers."                 
  (A copy of her sponsor statement may be found in the House                   
  Community and Regional Affairs Committee Room, Capitol #110,                 
  and after the adjournment of the second session of the 18th                  
  Alaska State Legislature, in the Legislative Reference                       
  REPRESENTATIVE PHILLIPS closed by adding, "There are some                    
  aspects of the bill (SSHB 1) that may need some further                      
  work, including the designation of the appropriate state                     
  agency to administer the program and the possibility of a                    
  legal distinction between 'junked' and 'abandoned' vehicles.                 
  Therefore, I would ask that the chairman consider sending                    
  this legislation to a subcommittee to work out these                         
  Number 121                                                                   
  REPRESENTATIVE CON BUNDE asked if there were facilities to                   
  recycle automobiles in Alaska.                                               
  REPRESENTATIVE PHILLIPS gave a description of the automobile                 
  recycling process and said, "In some cases they're going to                  
  have to be shipped out.  The rural areas of Alaska where                     
  there are no landfill areas to take care of these... are                     
  very excited about using, they can just back haul on the                     
  barges and such, dump these vehicles on and ship them out                    
  because you know, as well as all of us, once a vehicle is                    
  abandoned in the Arctic it just stays there forever until it                 
  rots into the tundra."                                                       
  REPRESENTATIVE BUNDE expressed support for SSHB 1 and asked                  
  if the two dollars were sufficient to carry out the task.                    
  REPRESENTATIVE PHILLIPS said, "I didn't want to put a fee on                 
  that would eliminate us entering into this program."  She                    
  added that the Municipal League had indicated their support                  
  for the five dollars' fee due to the large amount of initial                 
  Number 166                                                                   
  REPRESENTATIVE JOHN DAVIES voiced his support for the bill                   
  on behalf of the Fairbanks area.  He then volunteered to be                  
  on the proposed SSHB 1 subcommittee.                                         
  REPRESENTATIVE CYNTHIA TOOHEY also gave her support to                       
  SSHB 1 and suggested the five dollar fee.  She inquired                      
  where the automobile metal was customarily shipped to.                       
  REPRESENTATIVE PHILLIPS said, "In our discussion... it was                   
  Taiwan or South Korea had a very large shortage of metal and                 
  were very much interested in metal."                                         
  Number 209                                                                   
  REPRESENTATIVE JERRY SANDERS said he also supports SSHB 1                    
  but expressed concern that the bill reads, "the legislature                  
  'may' appropriate money collected".                                          
  REPRESENTATIVE PHILLIPS said, "We can just change 'may' to                   
  CHAIRMAN OLBERG added, "As chair of the subcommittee,                        
  Representative Sanders, you'll have free reign."                             
  Number 236                                                                   
  testified in support of SSHB 1.  He said, "We do have this                   
  problem with an accumulation of vehicles.  The league does                   
  support a five dollar fee for this purpose."                                 
  LOBBY, testified in favor of SSHB 1 in its present form but                  
  also said, "...what we don't have in this bill is the                        
  incentive to keep people from junking their vehicles, and I                  
  was wondering if there was an acceptable mechanism by which                  
  we could encourage people to properly dispose of their                       
  vehicles."  He gave an example where Alaskans would pay the                  
  Division of Motor Vehicles a deposit until vehicles have                     
  been properly disposed of.                                                   
  REPRESENTATIVE TOOHEY said, "That would be nice, but most                    
  cars that are junked are junked because the people that own                  
  them either can't afford to fix them or they are not                         
  fixable.  ...I think that complicates things.  If their was                  
  some way of simply doing it...but I think complicating the                   
  bill (SSHB 1) is unnecessary."                                               
  Number 289                                                                   
  REPRESENTATIVE BUNDE suggested, "Maybe built into the bill                   
  (SSHB 1) somehow could be a reclaiming fee.  If you brought                  
  your own or any other wrecked vehicle to the salvage yard,                   
  there was then 25 or 50 dollars or whatever this fund could                  
  allow, saving the state to have to go out and collect it.                    
  Whatever we figured it would cost the state, we could give                   
  the individual that for towing their own car."                               
  REPRESENTATIVE ED WILLIS asked if SSHB 1 "would be viewed as                 
  another tax."                                                                
  CHAIRMAN OLBERG clarified this was a fee, not a tax.                         
  testified in favor of SSHB 1.  He said, "We recently                         
  conducted a survey in the region we have a wealth of                         
  information that we're more than willing and eager to share                  
  with the subcommittee..."                                                    
  MR. KOHLER added some suggestions, "...they have to do with                  
  issues of making sure that the language in the legislation                   
  while not too broad, is broad enough to allow communities                    
  perhaps to access these monies for some of the preparation                   
  costs involved before actual transportation, and secondly,                   
  to make sure that some of our communities that are outside                   
  of access to those particular centers that perhaps could do                  
  this work, again, have the capability of direct shipping to                  
  a particular vendor down below..."                                           
  Number 349                                                                   
  OF TRANSPORTATION AND PUBLIC FACILITIES (DOT), testified in                  
  support of SSHB 1 saying, "We at DOT have had a 20 year                      
  program of removing vehicles and this program, quite                         
  frankly, is the perfect match to make the one that we now                    
  have and this one work statewide on an all road at all                       
  ENVIRONMENTAL CONSERVATION, testified, "We certainly support                 
  the concept of the bill and look forward to working with the                 
  CHAIRMAN OLBERG appointed Representative Sanders, Bunde and                  
  Davies to the subcommittee to work further on SSHB 1.                        
  Representative Sanders was appointed the chairman of the                     
  Number 375                                                                   
  CHAIRMAN OLBERG called an at ease at 1:25 p.m.                               
  SJR 20:  DISAPPROVE PALMER BOUNDARY CHANGES                                  
  CHAIRMAN OLBERG reconvened the meeting at 1:30 p.m. and                      
  brought forth SJR 20.  He pointed out that no action could                   
  be taken on the resolution since it had not been "read                       
  across the floor" yet as had been anticipated.                               
  Number 392                                                                   
  AND REGIONAL AFFAIRS, testified on SJR 20 saying, "This                      
  resolution has raised some very interesting issues for us,                   
  ...the reason it is before you is that the population of the                 
  area being annexed is so small that the individual there                     
  would be overwhelmed if it was done through the other                        
  process which is the local election.  ...The Commission's                    
  work is probably going to be looking at more annexations                     
  across the state and it's going to be generated because of                   
  the decline in state revenues.  The gentleman in this case                   
  is receiving some city services already."                                    
  CHAIRMAN OLBERG reminded the committee any action on SJR 20                  
  would have to wait until next week when it was properly                      
  before committee.                                                            
  REPRESENTATIVE TOOHEY asked the specific mil rate and how                    
  much the property taxes would increase if the Palmer                         
  annexation proceeded.                                                        
  LEE WYATT, EYAK CORPORATION, introduced himself as a former                  
  manager of the Mat-Su Borough and explained that if this                     
  property was annexed, there would be a city mil rate added                   
  to the existing borough mil rate.                                            
  Number 475                                                                   
  REPRESENTATIVE TOOHEY reiterated her question.                               
  MR. WYATT was unsure but thought the mil rate was probably                   
  around 14.                                                                   
  REPRESENTATIVE TOOHEY asked how large the proposed Palmer                    
  annexation was.                                                              
  PHILLIPS, PRIME SPONSOR OF SJR 20, testified that there were                 
  five property owners that held 7.5 acres of land in the                      
  proposed Palmer annexation.  She described the interests and                 
  testimony of the property owners in the Senate Community and                 
  Regional Affairs meeting of February 9, 1993.  She said,                     
  "Basically, it's sort of a controversy between the neighbors                 
  there, the people across the street from that particular                     
  piece of property."                                                          
  Number 514                                                                   
  REPRESENTATIVE DAVIES requested a more thorough background                   
  presentation from Senator Phillips at the next hearing of                    
  SJR 20.                                                                      
  CHAIRMAN OLBERG introduced Mr. Wyatt as a representative                     
  from the Cordova Residents Against the Cordova Proposed                      
  REPRESENTATIVE BUNDE confirmed there was currently no                        
  legislation drafted regarding the proposed Cordova                           
  MR. WYATT introduced himself as a representative of "the                     
  land interest of the Eyak Corporation" and also "to                          
  represent the inhabitants of the area outside the                            
  jurisdictional boundaries of the City of Cordova."                           
  MR. WYATT testified, "We are late for one reason, because we                 
  tried to follow the procedures of DCRA in regards to the                     
  time frames in which this annexation petition came forward.                  
  Originally the deadline for the petition to be submitted was                 
  waived so that the City of Cordova could submit it at a                      
  later date than what they like, which was the first of                       
  March.  July 1, the annexation rules changed and it seemed                   
  like the DCRA staff and the Local Boundary Commission                        
  fluctuated between the two sets of rules, the old ones and                   
  the new ones.  So we were somewhat confused as to what exact                 
  standards and regulations we were actually operating under.                  
  Prime example being that in order to get this petition to                    
  the legislature within the first ten days, they actually                     
  held a reconsideration meeting on the day before and got it                  
  in on the tenth day, but yet there's a 30-day                                
  reconsideration period that runs past that point.  There                     
  were three reconsiderations that were presented.  They were                  
  not acknowledged..."                                                         
  MR. WYATT continued, "We're in favor of the annexation                       
  basically, but we're not in favor of the procedures that                     
  were followed.  What we would like to see is the possibility                 
  of delay in the annexation so that the city and the folks                    
  that are involved could get together and work out a plan."                   
  MR. WYATT added, "So we see it not only as a chance to get                   
  some revenues from outside the city but also an opportunity                  
  to possibly lock up some economic development on the part of                 
  the Native community as well.  Originally, the Eyak                          
  Corporation was not allowed to select lands within a two                     
  mile limit of the city boundary, which is now seven and a                    
  half square miles, and they are hoping to annex out to an                    
  area that's 68 square miles.  ...It's a land grab under the                  
  guise of future planning.  We're just hopeful that maybe                     
  perhaps another resolution could come forward for the                        
  disapproval of this annexation so that it could come back                    
  next year with a really workable plan.".                                     
  Number 622                                                                   
  CHAIRMAN OLBERG asked, "Is your lawsuit asking for a stay of                 
  the proceedings or a delay of the imposition or is it asking                 
  to have it overturned?"                                                      
  MR. WYATT replied, "All three."                                              
  MR. GERAGHTY said, "Anytime we go about drawing lines on a                   
  map, we start getting into controversy."                                     
  REPRESENTATIVE TOOHEY asked about the property's location in                 
  relation to the Copper River Highway.                                        
  CHAIRMAN OLBERG described the location.                                      
  Number 640                                                                   
  CHAIRMAN OLBERG adjourned the meeting at 1:49 p.m.                           

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