Legislature(2015 - 2016)BELTZ 105 (TSBldg)


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Heard & Held
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                       February 17, 2015                                                                                        
                           3:29 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Click Bishop, Chair                                                                                                     
Senator Bert Stedman, Vice Chair                                                                                                
Senator Anna MacKinnon                                                                                                          
Senator Dennis Egan                                                                                                             
MEMBERS ABSENT                                                                                                                
Senator Lyman Hoffman                                                                                                           
COMMITTEE CALENDAR                                                                                                            
SENATE BILL NO. 45                                                                                                              
"An Act relating to parks and recreation service area boundary                                                                  
     - HEARD & HELD                                                                                                             
SENATE BILL NO. 43                                                                                                              
"An Act relating to immunity for a fire department and employees                                                                
or members of a fire department."                                                                                               
     - HEARD & HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB 45                                                                                                                   
SHORT TITLE: PARKS & REC SERVICE AREA BOUNDARIES                                                                                
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
02/09/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/15       (S)       CRA, RES                                                                                               
02/17/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                                  
BILL: SB 43                                                                                                                   
SHORT TITLE: IMMUNITY FOR FIRE DEPT. & MEMBERS                                                                                  
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
02/06/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/06/15       (S)       CRA, JUD                                                                                               
02/17/15       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
WITNESS REGISTER                                                                                                              
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor for SB 45.                                                                                        
JANE CONWAY, Staff                                                                                                              
Senator Giessel                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 45.                                                                            
JOHN RODDA, Director                                                                                                            
Parks and Recreation                                                                                                            
Municipality of Anchorage                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 45.                                                                                           
DENNIS WHEELER, Municipal Attorney                                                                                              
Municipality of Anchorage                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 45.                                                                                           
JORDAN SHILLING, Staff                                                                                                          
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 43.                                                                            
JILL DOLAN, Assistant Borough Attorney                                                                                          
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 43.                                                                                           
MITCH FLYNN, Fire Chief                                                                                                         
Steese Area Volunteer Fire Department                                                                                           
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 43.                                                                                           
SUSIE SHUTTS, Attorney                                                                                                          
Legislative Legal Services                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Addressed statutes that pertain to SB 43.                                                                 
ROBERT GROVE, Chairman of the Board                                                                                             
Ester Volunteer Fire Service Area                                                                                               
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Supports SB 43.                                                                                           
ACTION NARRATIVE                                                                                                              
3:29:02 PM                                                                                                                  
CHAIR  CLICK  BISHOP called  the  Senate  Community and  Regional                                                             
Affairs Standing Committee meeting to  order at 3:29 p.m. Present                                                               
at the call to order  were Senators MacKinnon, Stedman, and Chair                                                               
           SB 45-PARKS & REC SERVICE AREA BOUNDARIES                                                                        
3:30:00 PM                                                                                                                    
CHAIR BISHOP announced the consideration of SB 45.                                                                              
3:30:31 PM                                                                                                                    
SENATOR   CATHY  GIESSEL,   Alaska  State   Legislature,  Juneau,                                                               
explained that  SB 45 deals  with an  issue that is  happening in                                                               
the  Municipality  of Anchorage.  She  explained  that there  are                                                               
sections in  Anchorage that, over  time, have been  excluded from                                                               
taxation for the parks in the  Anchorage area. She said the areas                                                               
in question have significant parks  within them and residents are                                                               
essentially not  contributing to the  upkeep of those  parks. She                                                               
specified  that   SB  45   is  a   request  from   the  Anchorage                                                               
municipality to  correct the tax  exclusion oversight in  the tax                                                               
3:31:54 PM                                                                                                                    
JANE CONWAY,  Staff, Senator  Giessel, Alaska  State Legislature,                                                               
Juneau, Alaska, provided  a sectional analysis on  SB 45. Section                                                               
1 amends the  statute to allow a borough  or unified municipality                                                               
to  change boundaries  of  a Parks  and  Recreation Service  Area                                                               
(PRSA)  to include  a subdivision  or  parcel that  is wholly  or                                                               
partially  within the  exterior  boundaries of  the service  area                                                               
without voter  approval. She revealed that  currently there needs                                                               
to be voter approval in order  to incorporate a service area that                                                               
is not currently included for taxation.                                                                                         
SENATOR MACKINNON  asked if SB  45 requires an effective  date or                                                               
if just the day the bill is signed is sufficient.                                                                               
SENATOR GIESSEL  replied that she will  check on the need  for an                                                               
effective date.                                                                                                                 
SENATOR STEDMAN  stated that recognizing the  dense population of                                                               
Anchorage relative to  everywhere else, does the  structure of SB
45 effect Fairbanks or any other populated areas.                                                                               
SENATOR GIESSEL answered that Anchorage  is the only municipality                                                               
that is effected by SB 45.                                                                                                      
3:33:50 PM                                                                                                                    
SENATOR EGAN joined the committee meeting.                                                                                      
SENATOR  STEDMAN  asked  how  Anchorage's  parks  and  recreation                                                               
boundary relates to the municipality's  lines. He inquired if the                                                               
municipality can change its boundaries.                                                                                         
SENATOR  GIESSEL replied  that the  municipality itself  actually                                                               
extends  to  Girdwood and  Portage,  moving  eastward to  include                                                               
Eagle River and Chugiak as well.                                                                                                
SENATOR MACKINNON added  that there is more than one  PRSA in the                                                               
Municipality  of Anchorage.  She specified  that Eagle  River and                                                               
Anchorage have separate  PRSAs. She said Anchorage  may choose to                                                               
bond  for  an  improvement  and   the  folks  that  live  in  the                                                               
geographic area benefit predominantly  from those, folks in Eagle                                                               
River have  a PRSA  and they  tend to save  their money  and then                                                               
invest in purchasing  a park. She pointed out  that Anchorage has                                                               
at least two different PRSAs.                                                                                                   
3:35:49 PM                                                                                                                    
CHAIR  BISHOP asked  to  confirm  that the  map  provided to  the                                                               
committee shows  where the current  PRSA boundary is  in addition                                                               
to the areas outside of the boundary.                                                                                           
SENATOR GIESSEL  specified that the  affected areas noted  on the                                                               
map of Anchorage  indicate where parcels will be  included in the                                                               
PRSA should  SB 45  be approved. She  noted that  the subdivision                                                               
parcels  include  Stuckagain Heights  and  an  area near  Chugach                                                               
State Park.                                                                                                                     
3:37:24 PM                                                                                                                    
JOHN  RODDA,  Director,  Parks and  Recreation,  Municipality  of                                                               
Anchorage, Anchorage,  Alaska, specified that the  map identifies                                                               
the  existing boundaries  for the  municipality of  Anchorage. He                                                               
confirmed  that   Chugach/Eagle  River  has  its   own  PRSA.  He                                                               
specified that  the PRSA boundary  noted on the Anchorage  map is                                                               
the border from the unification of  the city and the borough that                                                               
occurred 40  years ago.  He explained that  the border  has never                                                               
been  modified  or  adjusted.  He  surmised  that  nobody  really                                                               
thought at the time that  Anchorage would grow beyond the border.                                                               
He  summarized  that  development  has occurred  over  the  years                                                               
beyond the  PRSA boundary and SB  45 moves the line  to bring the                                                               
exempt parcels into  a more equitable relationship  with the rest                                                               
of Anchorage's taxpayers.                                                                                                       
3:39:32 PM                                                                                                                    
SENATOR  STEDMAN  confirmed  that Anchorage's  current  PRSA  map                                                               
shows a dated  municipal boundary that has  become irrelevant due                                                               
to expansion.  He summarized that  SB 45 essentially  is borough-                                                               
SENATOR GIESSEL answered correct. She  specified that the way the                                                               
law is currently  written, over 60 percent of  the residents that                                                               
live  in  the area  have  to  vote to  become  part  of the  PRSA                                                               
taxation  structure.  She  revealed   that  areas  that  are  not                                                               
included  in the  PRSA  have  parks located  in  their area  that                                                               
nearby residents  are not  paying taxes  for. She  explained that                                                               
approximately $168  million worth  of tax-valued property  is not                                                               
contributing to the PRSA tax base.                                                                                              
SENATOR MACKINNON asked if SB  45 impacts any other service areas                                                               
in Alaska  and noted that  Fairbanks has fire service  areas. She                                                               
inquired what  specifically SB 45  allows in regards  to changing                                                               
the existing boundary.                                                                                                          
3:42:20 PM                                                                                                                    
DENNIS  WHEELER, Municipal  Attorney, Municipality  of Anchorage,                                                               
Anchorage, Alaska, replied that the focus  for SB 45 is solely on                                                               
PRSA  and  the bill  is  not  meant  to  address other  kinds  of                                                               
services areas like fire or police  services. He said he does not                                                               
know whether  other jurisdictions in  the state have a  PRSA, but                                                               
other areas could take advantage of SB 45 if they had a PRSA.                                                                   
He noted  that addressing what  occurs with  existing boundaries,                                                               
SB 45  allows the local governing  body to make an  adjustment by                                                               
ordinance through  public hearing. He explained  that the process                                                               
entails the following:                                                                                                          
   · Ordinance proposed to Anchorage Assembly.                                                                                  
   · Ordinance noticed.                                                                                                         
   · Ordinance proceeds to the affected community councils.                                                                     
   · Residents and councils weigh in on the proposal.                                                                           
   · Assembly can make adjusts that it feels is in the best                                                                     
     interest of the citizens.                                                                                                  
MR.  WHEELER added  that SB  45 also  gets rid  of the  dual-vote                                                               
requirement. He  asserted that the  dual-vote is  inequitable and                                                               
explained that  even if all  of the residents in  Anchorage voted                                                               
to  include  the  properties  to   spread  the  tax  burden,  the                                                               
specified property  owners have  special veto powers  to override                                                               
the measure.  He summarized  that the  dual-vote is  a governance                                                               
concept that goes  counter to what is normally thought  of as the                                                               
one person/one vote concept.                                                                                                    
CHAIR  BISHOP commented  that he  would  like to  check with  the                                                               
Fairbanks North Star Borough.                                                                                                   
SENATOR EGAN added  that he would like to check  with the City of                                                               
3:44:43 PM                                                                                                                    
CHAIR BISHOP stated that seeing  no additional testifiers, public                                                               
testimony is  closed. He  announced that  SB 45  will be  held in                                                               
            SB 43-IMMUNITY FOR FIRE DEPT. & MEMBERS                                                                         
CHAIR BISHOP announced the consideration of SB 43.                                                                              
3:45:56 PM                                                                                                                    
JORDAN  SHILLING,  Staff,  Senator  John  Coghill,  Alaska  State                                                               
Legislature,  Juneau, Alaska,  explained that  SB 43  addresses a                                                               
priority issue  that came to  Senator Coghill's  attention during                                                               
the interim from  the Fairbanks North Star  Borough. He specified                                                               
that  SB  43 addresses  an  inequity  in the  statutes  regarding                                                               
immunity. He said currently there  is some immunity given to fire                                                               
departments  and their  members in  statute; in  particular, that                                                               
immunity applies  to employees of municipal  fire departments and                                                               
municipal  departments themselves.  He  specified that  providing                                                               
government immunity is fairly common  and added that most, if not                                                               
all states,  give immunity  to the staff  of fire  departments as                                                               
well as the  fire departments themselves because  there are major                                                               
risks in running a fire department.                                                                                             
3:47:57 PM                                                                                                                    
MR.  SHILLING  said  the  bill  addresses  AS  09.65.070(c),  the                                                               
section applies  to staff immunity  of municipally  operated fire                                                               
departments. He  specified that the  concern pertains to  the way                                                               
the  statute was  written where  immunity does  not apply  to the                                                               
staff of  the types of  departments that Fairbanks has  which are                                                               
contract  departments. He  explained that  the statute  came into                                                               
effect in 1975 as SB 257.  He revealed that SB 257 was introduced                                                               
by the  Juneau Volunteer  Fire Department  and patterned  after a                                                               
Delaware statute. He stated that  the problem with the statute is                                                               
attributed to  the language that  seems to leave  out departments                                                               
that  contract out  with  local governments.  He  noted that  the                                                               
committee's   intent  in   1975   was  hard   to  delineate.   He                                                               
communicated  that the  bill's sponsor  and  the Fairbanks  North                                                               
Star Borough feel strongly that  the liability protections should                                                               
not be  exclusive to  employees of  fire departments  operated by                                                               
municipalities, but should also be  extended to include the staff                                                               
of  all fire  departments  that have  a contractual  relationship                                                               
with  local government.  He  added that  the  bill also  provides                                                               
immunity to  contracted fire departments, the  entity itself, not                                                               
just  the  staff, and  it  adds  to  the existing  immunity  that                                                               
municipal  fire departments  already  have in  subsection (d)  of                                                               
this section of law.                                                                                                            
SENATOR STEDMAN asked if there  has been any litigation since the                                                               
statute came into effect in 1977.                                                                                               
MR. SHILLING answered that he is  aware of one case that occurred                                                               
in Fairbanks.                                                                                                                   
3:51:06 PM                                                                                                                    
JILL  DOLAN, Assistant  Borough  Attorney,  Fairbanks North  Star                                                               
Borough,  Fairbanks, Alaska,  confirmed that  there was  one case                                                               
that went to  the Alaska Supreme Court that brought  the issue to                                                               
the forefront. She specified that  the case was different because                                                               
at  the time,  the fire  chiefs of  the involved  fire department                                                               
were  municipal   employees  and  were  extended   immunity.  She                                                               
revealed that due to the  current situation where fire chiefs are                                                               
actually employees of the nonprofits  that the North Star Borough                                                               
contracts with,  the borough  has a  concern that  the contracted                                                               
fire departments will  lose their immunity under  the current law                                                               
if they are  no longer considered municipal  employees. She noted                                                               
that the  other issue in the  Regner Case, [Regner v.  North Star                                                               
Volunteer Fire Department], was whether  or not the borough could                                                               
get  things  dismissed as  a  matter  of  law under  immunity  or                                                               
whether  or  not they  became  fact  issues  for the  court.  She                                                               
revealed that  the Regner Case  is actually still  continuing and                                                               
has been  in litigation  that has spanned  the course  of several                                                               
years.  She opined  that  immunity litigation  is  taxing to  the                                                               
resources of the  fire departments where costs  gets passed along                                                               
to the  tax payers  and impacts  insurance rates.  She summarized                                                               
that  the  intent is  to  contain  exposure  and try  to  protect                                                               
contracted fire departments from liability.                                                                                     
SENATOR  MACKINNON   asked  if   the  bill  impacts   a  worker's                                                               
compensation claim if a firefighter is hurt.                                                                                    
MS.  DOLAN  answered  that firefighters  are  covered  under  the                                                               
workers' compensation laws and the  bill does not impact workers'                                                               
compensation  claims. She  specified  that the  bill pertains  to                                                               
actions such  as a  fire department  responding to  a fire  and a                                                               
homeowner complained  that only one  engine was sent  rather than                                                               
SENATOR MACKINNON  addressed gross negligence and  asked if there                                                               
is a higher standard that a homeowner could still lay a claim.                                                                  
MS. DOLAN answered that as  directed, the bill's version in front                                                               
of the  committee would exclude gross  negligence. She summarized                                                               
that  no,  a  homeowner  could   not  bring  a  claim  under  the                                                               
circumstance noted by Senator MacKinnon.                                                                                        
MR. SHILLING  detailed that the  bill establishes  total immunity                                                               
for fire  departments. He  noted that Ms.  Dolan and  the borough                                                               
attorneys suggested that if the  committee and the Legislature is                                                               
uncomfortable with  complete immunity,  there is language  in the                                                               
911  Immunity  Statutes  were  an   exception  can  be  made  for                                                               
intentional misconduct  and gross negligence, an  extreme form of                                                               
3:55:35 PM                                                                                                                    
MITCH FLYNN,  Fire Chief, Steese Area  Volunteer Fire Department,                                                               
Fairbanks North  Star Borough, Fairbanks,  Alaska, added  that he                                                               
is  also  the CEO  of  a  501(c)(3) nonprofit  organization  that                                                               
provides fire and  emergency medical services (EMS)  to the north                                                               
and west of  Fairbanks; approximately 2,200 square  miles for EMS                                                               
and 40  square miles for fire  service areas. He said  the Steese                                                               
Fire  Department  is  concerned  about liability  and  the  issue                                                               
predates  the  Regner  Case. He  asserted  that  recruitment  and                                                               
retention  is always  a concern  due to  questions pertaining  to                                                               
liability.  He   said  operating   under  possible   exposure  to                                                               
liability  becomes quite  detrimental  to  managing a  department                                                               
where  one  worries  about  a   lawsuit  when  responding  to  an                                                               
emergency each day. He opined that  if an incident happened and a                                                               
lawsuit occurred in  the course of the department  doing its job,                                                               
outside  of  gross negligence  and  willful  acts of  misconduct,                                                               
70,000 residents could be adversely  effected by higher insurance                                                               
premiums.  He noted  that the  department's insurance  broker has                                                               
indicated  that  SB  45's  passage will  reduce  risk  and  lower                                                               
insurance premiums. He summarized that  SB 45 will allow more tax                                                               
dollars to  go towards firefighting  activities and  less towards                                                               
high insurance policy payouts.                                                                                                  
3:58:33 PM                                                                                                                    
CHAIR BISHOP asked  if a volunteer department trains  to the same                                                               
standards as a municipal fire department.                                                                                       
CHIEF FLYNN answered yes. He  stated that training probably takes                                                               
on more of  an emphasis because the department  trains every day,                                                               
every shift trains.                                                                                                             
He  noted  that  the  staffing  procedures  at  the  Steese  Area                                                               
Volunteer  Fire  Department  has   improved  the  fire  insurance                                                               
premiums for  homeowners, representing  a 40 percent  savings. He                                                               
said total  savings on an  insurance premium for an  average home                                                               
ends up  being about  2 to 1,  so for every  dollar paid  in fire                                                               
taxes, the department puts $2 back into homeowner's pockets.                                                                    
4:00:35 PM                                                                                                                    
SENATOR  MACKINNON  revealed  that  her two  sons  are  volunteer                                                               
firefighters and declared a potential conflict.                                                                                 
She noted  that the Legislature's  legal department  has actually                                                               
rewritten and reenacted AS 09.65.070.  She inquired how the legal                                                               
department went  about the  rewrite and  the possible  effects on                                                               
the  definition section.  She noted  that the  definitions remain                                                               
the  same in  later portions  of  section (d)  and addressed  her                                                               
concern for consistency throughout the statute.                                                                                 
MR.  SHILLING  answered   that  he  believes  that   all  of  the                                                               
substantive  elements of  AS 09.65.070(c),  as  written now,  are                                                               
contained in  the bill. He  asserted that the only  change brings                                                               
the  contract departments  under the  statute. He  concurred with                                                               
Senator MacKinnon  that the statute  was repealed  and rewritten.                                                               
He  surmised that  the action  was done  to fit  current drafting                                                               
conventions. He asked  that Suzy Shutts, the  drafter, to address                                                               
the changes.                                                                                                                    
SENATOR MACKINNON  asked for comment  from Ms. Shutts  to address                                                               
whether the  rewrite was a  drafting conformity or  whether there                                                               
is any possible  ramifications that might be  unknown from adding                                                               
the  contract departments.  She asked  if something  is going  to                                                               
happen   to  the   existing   municipalities   or  village   fire                                                               
departments that are currently  included under different language                                                               
currently in section (c).                                                                                                       
4:03:12 PM                                                                                                                    
SUSIE SHUTTS, Attorney, Legislative  Legal Services, Alaska State                                                               
Legislature,  Juneau,  Alaska,  explained  that  the  appeal  and                                                               
reenactment  was done  to fit  current  drafting conformity.  She                                                               
specified   that  the   two   definitions   in  subsection   (e),                                                               
"municipality" and "village" are  defined; that language is still                                                               
used in (c)  and the meaning would  not be changed as  far as the                                                               
definitions are applied.                                                                                                        
4:04:17 PM                                                                                                                    
ROBERT  GROVE,  Chairman  of  the  Board,  Ester  Volunteer  Fire                                                               
Service   Area   Commission,   Fairbanks  North   Star   Borough,                                                               
Fairbanks,  Alaska,  noted that  the  liability  issues for  fire                                                               
departments goes back for over 25  years. He stated that SB 43 is                                                               
very appropriate  and timely  by addressing  an issue  of knowing                                                               
whether  or  not  a  department  is  covered  for  liability.  He                                                               
recommends that the committee pass SB 43.                                                                                       
4:07:27 PM                                                                                                                    
CHAIR  BISHOP noted  that Senator  MacKinnon  stated a  potential                                                               
conflict due  to her  two sons  being volunteer  firefighters. He                                                               
declared that Senator MacKinnon has no conflict.                                                                                
SENATOR EGAN  announced that he still  is a trustee and  a former                                                               
volunteer for the Juneau Fire Department.                                                                                       
CHAIR BISHOP called  attention to Chief Flynn's  comment that the                                                               
realized savings from passing SB  43 could mean more assets going                                                               
towards  fighting  fires  and  training,  perhaps  less  requests                                                               
coming to the Legislature as well.                                                                                              
SENATOR EGAN  asked what did  Juneau do  in 1975 and  inquired if                                                               
the  legislation addressed  Juneau's service  districts prior  to                                                               
MR. SHILLING answered that he did not know.                                                                                     
CHAIR BISHOP closed public comment.                                                                                             
CHAIR BISHOP declared that SB 43 will be held in committee.                                                                     
4:10:25 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Bishop adjourned the Senate  Community and Regional Affairs                                                               
Standing Committee hearing at 4:10 p.m.                                                                                         

Document Name Date/Time Subjects
SB43 Ver W.PDF SCRA 2/17/2015 3:30:00 PM
SB 43
SB45 Bill Version A.pdf SCRA 2/17/2015 3:30:00 PM
SB 45
SB45 Parks and Rec Service Area Boundaries vsn A.pdf SCRA 2/17/2015 3:30:00 PM
SB 45
SB45 Support Letter MOA 2-12-15.pdf SCRA 2/17/2015 3:30:00 PM
SB 45
SB43 Fiscal Note DOTPF.pdf SCRA 2/17/2015 3:30:00 PM
SB 43
SB43 Fiscal Note DPS.pdf SCRA 2/17/2015 3:30:00 PM
SB 43
SB43 Fiscal Note DOTPF.pdf SCRA 2/17/2015 3:30:00 PM
SB 43
SB 43 Sponsor Statement.pdf SCRA 2/17/2015 3:30:00 PM
SB 43
SB45 Fiscal Note.pdf SCRA 2/17/2015 3:30:00 PM
SB 45
SB 45 Sponsor Statement.pdf SCRA 2/17/2015 3:30:00 PM
SB 45