Legislature(2013 - 2014)BUTROVICH 205

02/18/2014 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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03:31:39 PM Start
03:32:00 PM SB157
03:57:43 PM Overview: Alaska Conference of Mayors
04:17:42 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 157 FIRE PROTECTION SERVICE AREAS TELECONFERENCED
Heard & Held
4:00 - 5:00 pm
Alaska Conference of Mayors
Brief Overview of Municipal Issues
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                       February 18, 2014                                                                                        
                           3:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Peter Micciche, Chair                                                                                                   
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Dennis Egan                                                                                                             
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Senator John Coghill                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 157                                                                                                             
"An Act relating to municipal fire protection service area                                                                      
boundary changes."                                                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
OVERVIEW: ALASKA CONFERENCE OF MAYORS                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 157                                                                                                                  
SHORT TITLE: FIRE PROTECTION SERVICE AREAS                                                                                      
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
02/05/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/14       (S)       CRA                                                                                                    
02/18/14       (S)       CRA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR JOHN COGHILL                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor for SB 157.                                                                                       
                                                                                                                                
HANS RODVIK, Staff                                                                                                              
Senator Coghill                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 157.                                                                           
                                                                                                                                
DAVID GIBBS, Director                                                                                                           
Emergency Operations                                                                                                            
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 157.                                                                                          
                                                                                                                                
MAYOR MIM MCCONNELL                                                                                                             
City and Borough of Sitka                                                                                                       
Sitka, Alaska                                                                                                                   
POSITION STATEMENT: Addressed Sitka's hydro-project.                                                                          
                                                                                                                                
MAYOR STEPHANIE SCOTT                                                                                                           
Haines Borough                                                                                                                  
Haines, Alaska                                                                                                                  
POSITION  STATEMENT: Called  attention  to  the Haines  Borough's                                                             
energy issues.                                                                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:31:39 PM                                                                                                                    
CHAIR  PETER MICCICHE  called the  Senate Community  and Regional                                                             
Affairs Standing Committee meeting to  order at 3:31 p.m. Present                                                               
at the call to order  were Senators Giessel, Bishop, Hoffman, and                                                               
Chair Micciche.                                                                                                                 
                                                                                                                                
3:32:00 PM                                                                                                                    
CHAIR MICCICHE  welcomed Senator Coghill. He  noted the committee                                                               
meeting's agenda included hearing  SB 157 and municipal overviews                                                               
from the Alaska Conference of Mayors.                                                                                           
                                                                                                                                
              SB 157-FIRE PROTECTION SERVICE AREAS                                                                          
                                                                                                                                
3:32:20 PM                                                                                                                    
CHAIR MICCICHE  introduced SB  157, an  act sponsored  by Senator                                                               
John Coghill  that relates to  municipal fire  protection service                                                               
area boundary  changes. He  said SB  157 is  being heard  for the                                                               
first time and the intent is not  to pass the bill out at today's                                                               
meeting.  He set  forth  that  SB 157  will  be  back before  the                                                               
committee at  the next meeting  with the expectation to  move the                                                               
bill at that time.                                                                                                              
                                                                                                                                
3:32:53 PM                                                                                                                    
SENATOR JOHN  COGHILL, Alaska State Legislature,  Juneau, Alaska,                                                               
SB  157  sponsor. He  informed  the  committee  that SB  157  was                                                               
initiated by the Fairbanks North  Star Borough. He explained that                                                               
at times a fire engine will go  right past a fire station to take                                                               
care of  their fire service area.  He set forth that  SB 157 will                                                               
provide for additional boundary  flexibility. He detailed that SB
157  will allow  the Fairbanks  North Star  Borough to  set their                                                               
boundaries that  best suits the equipment  management. He pointed                                                               
out that  the tax rates are  not intended to change  and the fire                                                               
service would end up being served better.                                                                                       
                                                                                                                                
3:34:50 PM                                                                                                                    
HANS   RODVIK,   Staff   for  Senator   Coghill,   Alaska   State                                                               
Legislature, Juneau, Alaska,  provided an overview of  SB 157. He                                                               
read the following statement:                                                                                                   
                                                                                                                                
     Current  state law,  AS  29.35.450(c),  allows a  local                                                                    
     assembly without a  vote by the property  owners in the                                                                    
     fire service area to increase  the number of parcels in                                                                    
     a fire service  area if the increase in  parcels is not                                                                    
     more than 6  percent, or would not add  more than 1,000                                                                    
     residents  to  the  area.  SB   157  adds  a  corollary                                                                    
     provision  into statute  that will  allow an  assembly,                                                                    
     without  a  service  areawide   vote  as  is  currently                                                                    
     required, to remove a small  number of parcels, or make                                                                    
     some minor boundary changes to  a service area, so long                                                                    
     as  the property  owners request  it and  it meets  the                                                                    
     criteria set out by ordinance.                                                                                             
                                                                                                                                
3:35:46 PM                                                                                                                    
SENATOR EGAN joined the committee meeting.                                                                                      
                                                                                                                                
MR.  RODVIK  continued  to  provide  an overview  of  SB  157  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Under current  law, an election  of the  entire service                                                                    
     area  is  necessary  just  to  remove  that  one  small                                                                    
     parcel.  As you  can  see in  the  maps provided,  fire                                                                    
     service areas in the Fairbanks  North Star Borough have                                                                    
     some  off-boundaries.  SB  157  will  provide  property                                                                    
     owners and  local governments a streamlined  way to fix                                                                    
     such  ambiguous  boundaries   of  fire  service  areas.                                                                    
     Furthermore, the  changes to  statute we  are purposing                                                                    
     will  allow property  owners  to  receive fire  service                                                                    
     from  a fire  department  nearest  to their  residence.                                                                    
     Fire  service areas  are  constantly  growing and  even                                                                    
     being  created.  SB  157   gives  property  owners  the                                                                    
     ability to quickly  adjust boundary changes. Therefore,                                                                    
     SB 157  is important  because it gives  property owners                                                                    
     the ability to  choose to be covered  by closer service                                                                    
     areas and  thus receive faster emergency  services when                                                                    
     the time arises.                                                                                                           
                                                                                                                                
3:36:48 PM                                                                                                                    
CHAIR MICCICHE welcomed Senator Egan to committee meeting.                                                                      
                                                                                                                                
MR. RODVIK continued his overview as follows:                                                                                   
                                                                                                                                
     Likewise, we  think that statute must  be fixed because                                                                    
     development patterns  of roads  have resulted  in first                                                                    
     responders  traveling  through different  fire  service                                                                    
     areas  to access  land parcels  that  are within  their                                                                    
     service area.  Like Senator Coghill said,  we have fire                                                                    
     trucks passing  by other departments to  reach a parcel                                                                    
     of land that they are trying  to go and serve. The maps                                                                    
     provided show examples of  this problem. In conclusion,                                                                    
     the ability to establish  a less cumbersome process for                                                                    
     changing   fire    service   boundaries    will   allow                                                                    
     municipalities  to  define   more  natural  boundaries,                                                                    
     therefore making it easier  for emergency responders to                                                                    
     determine  which  parcels  to  serve.  Lastly,  SB  157                                                                    
     provides municipalities with  the flexibility needed to                                                                    
     adjust   boundaries  based   on   the  service   levels                                                                    
     available.                                                                                                                 
                                                                                                                                
3:38:25 PM                                                                                                                    
CHAIR MICCICHE announced that SB 157 will be kept open for                                                                      
public testimony. He said SB 157 will be held in committee until                                                                
the next meeting.                                                                                                               
                                                                                                                                
3:38:59 PM                                                                                                                    
DAVID  GIBBS,  Director,  Emergency Operations,  Fairbanks  North                                                               
Star  Borough, Fairbanks,  Alaska;  thanked  Senator Coghill  for                                                               
bringing SB  157 forward and  announced that the  Fairbanks North                                                               
Star  Borough  supports  the  passage  of SB  157.  He  read  the                                                               
following statement:                                                                                                            
                                                                                                                                
     In our borough, fire  service areas were established in                                                                    
     the early 1980s with  a best-guessed eye towards future                                                                    
     growth  and development  patterns. For  the most  part,                                                                    
     these  growth   estimates  have   held  true   and  our                                                                    
     residents enjoy high  quality fire protection services.                                                                    
     However, there  are a few situations  where development                                                                    
     has  not  occurred  as  anticipated  and  service  area                                                                    
     residents owning  parcels along the boundaries  of fire                                                                    
     service  areas   may  be  receiving   substandard  fire                                                                    
     services  response   due  to  distances   from  service                                                                    
     providers  or  very  limited  fire  protection  due  to                                                                    
     problems with  accessibility. The Fairbanks  North Star                                                                    
     Borough  believes   that  the  only   avenue  currently                                                                    
     available to  us in statute to  address these anomalies                                                                    
     with fire service area  boundaries is overly cumbersome                                                                    
     as  it  requires the  expense  and  effort of  multiple                                                                    
     elections  to  make  even   minor  adjustments  to  the                                                                    
     boundaries  of  existing  fire service  areas.  SB  157                                                                    
     provides  municipalities  with  much  needed  tools  by                                                                    
     giving  a municipality  the  authority  to decrease  or                                                                    
     transfer by  ordinance a small  number of parcels  in a                                                                    
     fire   service  area   without  holding   an  election.                                                                    
     Decreasing   or  transferring   parcels  by   ordinance                                                                    
     provides  property owners  with  an  opportunity for  a                                                                    
     public  hearing before  any  action  is taken.  Parcels                                                                    
     along  the boundary  of a  fire service  area might  be                                                                    
     decreased  at  a  property   owner's  request  if,  for                                                                    
     example, they are not road  accessible. In our borough,                                                                    
     the Fairbanks North Star Borough,  there are areas that                                                                    
     were included  in fire service areas  where development                                                                    
     was  planned,  roads  were  platted  but  never  built.                                                                    
     Residents  will still  pay fire  protection taxes,  but                                                                    
     due to limited  accessibility, cannot reasonably expect                                                                    
     to  receive  a high  level  of  quality fire  services.                                                                    
     Passage of  this legislation and a  companion ordinance                                                                    
     by a municipality  will allow a property  owner in this                                                                    
     situation  to petition  the municipality's  legislative                                                                    
     body  to have  his property  removed from  fire service                                                                    
     area until better road access  was developed. We do not                                                                    
     have a  mechanism currently to remove  people from fire                                                                    
     service areas  who cannot receive the  service. Parcels                                                                    
     may  be transferred  to an  adjacent fire  service area                                                                    
     when  adjacent  service area  has  a  much closer  fire                                                                    
     station  and therefore  able to  provide a  much higher                                                                    
     level of  fire protection.  I believe we  have provided                                                                    
     maps  showing  you  a couple  of  examples  that  exist                                                                    
     within our  borough; these are  not, I should  add, the                                                                    
     only examples  within our  borough. These  are examples                                                                    
     where a  fire department may  have to pass  through one                                                                    
     or  more  adjacent fire  service  areas  before it  can                                                                    
     provide  services  to its  own  area.  In closing,  the                                                                    
     Fairbanks North Star Borough believes  that SB 157 will                                                                    
     greatly assist  our ability to administer  fire service                                                                    
     areas by  insuring service area boundary  parcel owners                                                                    
     receive the  best possible  fire protection  and giving                                                                    
     those residents  who are paying for,  but not receiving                                                                    
     fire services, a simple and  straight forward method to                                                                    
     remove their property from a fire service area.                                                                            
                                                                                                                                
3:42:38 PM                                                                                                                    
SENATOR BISHOP announced his support for SB 157. He asked what                                                                  
does it cost the Fairbanks North Star Borough to run a service                                                                  
area election.                                                                                                                  
                                                                                                                                
MR. GIBBS answered approximately $9,000.                                                                                        
                                                                                                                                
CHAIR MICCICHE thanked Mr. Gibbs. He noted a letter of support                                                                  
and passage of SB 157 from Mr. Jeff Tucker, 2nd Vice-President,                                                                 
Alaska Fire Chief's Association.                                                                                                
                                                                                                                                
3:43:56 PM                                                                                                                    
CHAIR MICCICHE announced public testimony will be held open                                                                     
until the next committee meeting. He announced that SB 157 will                                                                 
be held until the next meeting.                                                                                                 
                                                                                                                                
3:44:11 PM                                                                                                                    
CHAIR MICCICHE announced that the committee will stand at ease.                                                                 
                                                                                                                                
3:57:24 PM                                                                                                                    
CHAIR MICCICHE called the committee meeting back to order.                                                                      
                                                                                                                                
^OVERVIEW: ALASKA CONFERENCE OF MAYORS                                                                                          
             OVERVIEW: ALASKA CONFERENCE OF MAYORS                                                                          
                                                                                                                                
3:57:43 PM                                                                                                                    
CHAIR MICCICHE noted that the Alaska Conference of Mayors is                                                                    
meeting in Juneau. He pointed out that the Community and                                                                        
Regional Affairs Committee deals with issues that primarily                                                                     
relate to local government and government services or functions                                                                 
in the unorganized borough and other matters relating to                                                                        
political subdivisions.                                                                                                         
                                                                                                                                
3:58:10 PM                                                                                                                    
MAYOR MIM MCCONNELL, City and Borough of Sitka, Sitka, Alaska;                                                                  
addressed funding for the Blue Lake Hydroelectric Dam expansion                                                                 
project. She read the following statement:                                                                                      
                                                                                                                                
     The method we are requesting for accomplishing this                                                                        
     funding is not the usual grant request, though we                                                                          
     would have of course preferred that, but a loan from                                                                       
     the Alaska Energy Authority (AEA) Power Project Loan                                                                       
     Fund. This fund was a great idea for Alaska, it showed                                                                     
     great foresight because during a time of waning income                                                                     
     and plans for a deficit budget, this is a good                                                                             
     solution for continuing the important task of                                                                              
     affordably, sustainably, powering our communities. It                                                                      
     helps wean communities off of the grant cycle,                                                                             
     something which is obviously unsustainable right now,                                                                      
     and on to a process where communities participate in                                                                       
     paying for their power improvements. Imagine what this                                                                     
     state would be like over the coming decade of deficit                                                                      
     spending if we couldn't continue to lower our power                                                                        
     costs. Local economies would decline, economic                                                                             
     development would falter, the people would leave in                                                                        
     droves, meaning our children and grandchildren because                                                                     
     they couldn't find work. I don't want this future for                                                                      
     Sitka or any other Alaskan community. The legislature                                                                      
     can do something about this. You can save Sitkans                                                                          
     another rate increase; they have already had three                                                                         
     since December 2012, a 48 percent increase. By                                                                             
     appropriating money to the Power Project Loan Fund,                                                                        
     you did this for Cordova last year and the Prince of                                                                       
     Wales Island Community the year before. Thank you for                                                                      
     listening and considering our request for $18.6                                                                            
     million.                                                                                                                   
                                                                                                                                
MAYOR MCCONNEL noted that she had language and documentation to                                                                 
present for inserting into the budget. She set forth that the                                                                   
Blue Lake Hydroelectric Dam is an amazing project and committee                                                                 
members were invited for a tour. She noted that the project has                                                                 
Alaska's largest crane in service.                                                                                              
                                                                                                                                
4:00:47 PM                                                                                                                    
CHAIR MICCICHE asked to clarify that the dam has been working                                                                   
for many years.                                                                                                                 
                                                                                                                                
MAYOR MCCONNELL answered that first dam went in about 100 years                                                                 
ago. She said the current dam has been in place since                                                                           
approximately 1959. She explained that the dam was a three                                                                      
phased project and the first two projects were done within the                                                                  
first few years. She noted that the intention has always been                                                                   
for a third phase. She remarked that original dam designers did                                                                 
not know that the third phase would entail adding an additional                                                                 
83 feet, the plan was for a lesser amount. The third phase was a                                                                
now-or-never decision to go all out and go up as high as                                                                        
possible. She said the dam will end up at an elevation of 425                                                                   
feet. Power will be increased from 7.5 megawatts to 17                                                                          
megawatts. She summarized that the Blue Lake Dam will help Sitka                                                                
for the next 15 to 20 years.                                                                                                    
                                                                                                                                
4:01:48 PM                                                                                                                    
CHAIR MICCICHE inquired if the dam only serves Sitka.                                                                           
                                                                                                                                
MAYOR MCCONNELL answered correct.                                                                                               
                                                                                                                                
CHAIR MICCICHE asked if 17 megawatts will be the dam's average                                                                  
production.                                                                                                                     
                                                                                                                                
MAYOR MCCONNELL replied that 17 megawatts is what Sitka needs                                                                   
and some extra power will be available. She reiterated that the                                                                 
power supplied by the Blue Lake Dam will provide Sitka with                                                                     
enough energy for 15 to 20 years.                                                                                               
                                                                                                                                
CHAIR MICCICHE asked if Sitka is supplementing with diesel.                                                                     
                                                                                                                                
MAYOR MCCONNELL answered yes. She added that Sitka was in the                                                                   
process of looking at Takatz Lake which is on the other side of                                                                 
Baranof Island. She said Takatz Lake does have possibilities for                                                                
an intertie. She noted that Sitka has started on the Federal                                                                    
Energy Regulatory Commission (FERC) permitting process. She                                                                     
revealed that the potential Takatz Lake project would be a lake-                                                                
tap rather than a dam.                                                                                                          
                                                                                                                                
4:02:48 PM                                                                                                                    
CHAIR MICCICHE asked if the lake-tap was an instream generator.                                                                 
                                                                                                                                
MAYOR MCCONNELL answered yes.                                                                                                   
                                                                                                                                
SENATOR EGAN asked what was Sitka's kilowatt per hour rate for                                                                  
residential.                                                                                                                    
                                                                                                                                
MAYOR MCCONNELL replied that when the Blue Lake Dam Project was                                                                 
first started, the kilowatt per hour rate was $0.09. She                                                                        
explained that Sitka has an inclining rate and the current rate                                                                 
varies between $0.12 and $0.19 per kilowatt hour. She added that                                                                
conservation has been built into Sitka's rate structure so                                                                      
residents can save if they conserve power. She specified that                                                                   
the $0.19 is more on the heavy users, especially businesses and                                                                 
residents that use a lot of energy. She said Sitka was able to                                                                  
use a variable rate by helping residents get their rates down by                                                                
reducing the monthly flat-fees.                                                                                                 
                                                                                                                                
4:04:12 PM                                                                                                                    
SENATOR BISHOP asked if Allen Marine and the Pioneer Home would                                                                 
come in the $0.12 to $0.19 per kilowatt range.                                                                                  
                                                                                                                                
MAYOR MCCONNELL replied that Allen Marine and Pioneer Home would                                                                
be on the higher end of the rate range, similar to Sitka's three                                                                
seafood processing plants.                                                                                                      
                                                                                                                                
SENATOR EGAN asked if the $30 flat-fee charged to residents was                                                                 
to pay off a bond.                                                                                                              
                                                                                                                                
MAYOR MCCONNELL answered that in order to get a bond there must                                                                 
be a promise that there is going to be enough money to pay the                                                                  
bill. She said Sitka has to increase its rates every time a bond                                                                
is issued. She added that there are different ways to create the                                                                
rate structure and one of them is to have the flat-fee be a                                                                     
particular amount and the per kilowatt hour rate is calculated                                                                  
after that. She revealed that the third bond rates go into                                                                      
effect July 1 and rate increases will occur.                                                                                    
                                                                                                                                
CHAIR MICCICHE asked to see the language for the Blue Lake Dam                                                                  
and the committee members will discuss support for the project                                                                  
with other senators.                                                                                                            
                                                                                                                                
4:07:00 PM                                                                                                                    
MAYOR STEPHANIE SCOTT, Haines Borough, Haines, Alaska; explained                                                                
that the Haines Borough has been guided by the Southeast Alaska                                                                 
Integrated Resource Plan (SEIRP). She noted that SEIRP has many                                                                 
recommendations for energy, one of which is to do some fuel-                                                                    
switching to use biomass for heat to conserve hydroelectric                                                                     
power. She said the Haines Borough has included in its AEA                                                                      
recommendation for a $1.3 million grant to convert ten public                                                                   
buildings to pellet use.                                                                                                        
                                                                                                                                
MAYOR SCOTT revealed that the Haines Borough's other problem is                                                                 
derived from the borough's 2008 plan to conserve energy. She                                                                    
said the borough participated in every energy efficient and                                                                     
weatherization program the state offered. She detailed that the                                                                 
borough's private sector initiated energy conservation through                                                                  
alternative energy projects that included geothermal heat                                                                       
systems. She reported that the consequence from conserving                                                                      
energy has led to the borough's local private utility proposing                                                                 
to the Regulatory Commission of Alaska (RCA) for rates to be                                                                    
raised by 18.6 percent. She noted that one of the arguments by                                                                  
the local utility is that they should be compensated for the                                                                    
fact that the customers in their service district have conserved                                                                
so much that their revenues have been reduced. She said the                                                                     
increase affects Tok, Coffman Cove, Craig, Skagway, and Haines.                                                                 
She pointed out that all of the affected communities have filed                                                                 
to be interveners in the rate case. She set forth that the                                                                      
intervene filing is an expensive proposition primarily due to                                                                   
the follow up testimony and investigation. She informed the                                                                     
committee that the Haines Borough is confused because it seems                                                                  
to the borough that the state of Alaska has been promoting a                                                                    
policy of energy conservation and efficiency which has collided                                                                 
with the capacity of the for-profit utility to be guaranteed a                                                                  
certain rate of return. She asked the committee to think about                                                                  
the Haines Borough's contradictory situation. She added that                                                                    
heating rates are increasing due to revenue loss from the                                                                       
borough's pellet use.                                                                                                           
                                                                                                                                
4:11:57 PM                                                                                                                    
SENATOR EGAN asked if the utility being referred to is Alaska                                                                   
Power and Telephone Company (AP&T).                                                                                             
                                                                                                                                
MAYOR SCOTT answered yes.                                                                                                       
                                                                                                                                
SENATOR EGAN asked if Haines is heating their school with                                                                       
pellets.                                                                                                                        
                                                                                                                                
MAYOR SCOTT replied that Haines' school is being converted to                                                                   
use pellets. She noted that the vision is for a pellet mill to                                                                  
be located in the Haines area.                                                                                                  
                                                                                                                                
4:13:39 PM                                                                                                                    
SENATOR EGAN commended the Haines Borough for their pellet                                                                      
initiative. He noted that Juneau and the rest of Southeast could                                                                
be served by pellet production. He called attention to a hydro                                                                  
plant that is on the drawing board for the Haines area. He asked                                                                
if the council has come out against the hydro project.                                                                          
                                                                                                                                
MAYOR SCOTT answered no. She explained that AP&T was proposing                                                                  
to develop Connelly Lake, which is in a very rich watershed and                                                                 
there was quite a bit of community opposition. She specified                                                                    
that there was no opposition from elected officials. She                                                                        
detailed that AP&T dropped the Connelly Lake Project and the                                                                    
borough was very disappointed. She revealed that the Haines                                                                     
Borough is on 98 percent hydro power. She said the borough's                                                                    
issue with hydro power is that there is not much room for                                                                       
growth; therefore to conserve hydro power the borough has gone                                                                  
away from using hydro power for electric heat.                                                                                  
                                                                                                                                
CHAIR MICCICHE noted the comprehensive evaluation of an energy                                                                  
balance in a community and Mayor Scott has outlined the perfect                                                                 
struggle where the borough is not using its hydro power to                                                                      
capacity, but the energy still has a cost per unit of generating                                                                
kilowatts and someone has to make that up. He said it is a                                                                      
challenge where a community becomes too efficient for the size                                                                  
of its generation.                                                                                                              
                                                                                                                                
MAYOR SCOTT stated that she was interested in Mayor McConnell's                                                                 
structure where Sitka's rate is structured for people who are                                                                   
conserving in their community. She suggested that AP&T consider                                                                 
a similar plan for their lost revenue by considering a tariff                                                                   
revision for high electricity consumers.                                                                                        
                                                                                                                                
4:16:09 PM                                                                                                                    
SENATOR BISHOP asked what the Haines Borough's hourly kilowatt                                                                  
rate is.                                                                                                                        
                                                                                                                                
MAYOR SCOTT answered $0.22 per kilowatt hour. She said the                                                                      
borough's comprehensive plan is to bring the rate down to $0.15                                                                 
per kilowatt hour. She said the Haines Borough agrees that their                                                                
hourly kilowatt rate is the biggest barrier to economic                                                                         
development. She noted that despite the high rates, Aspen Hotel                                                                 
is building a new hotel in Haines and their facility will be                                                                    
heated with pellets.                                                                                                            
                                                                                                                                
SENATOR EGAN thanked Chair Micciche for inviting the mayors to                                                                  
testify.                                                                                                                        
                                                                                                                                
CHAIR MICCICHE stated that it is always interesting to hear from                                                                
constituents.                                                                                                                   
                                                                                                                                
4:17:42 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Micciche adjourned the Senate Community and Regional                                                                      
Affairs Committee at 4:17 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 157 version N.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Sponsor Statement.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Fiscal Note DPS 2-16-14.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Supporting Documents - Alaska Fire Chiefs Association 2-17-14.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Supporting Documents-JurisdictionBoundaryShiftDemo_ChenaRidge.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Supporting Documents-Overview of Fairbanks Fire Stations.pdf SCRA 2/18/2014 3:30:00 PM
SB 157
SB 157 Supporting Documents-JurisdictionBoundaryShiftDemo_CrestLine.pdf SCRA 2/18/2014 3:30:00 PM
SB 157