HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE February 23, 1993 1:00 p.m. MEMBERS PRESENT Representative Harley Olberg, Chairman Representative Jerry Sanders, Vice-Chairman Representative Con Bunde Representative John Davies Representative Cynthia Toohey Representative Ed Willis MEMBERS ABSENT Representative Bill Williams OTHER HOUSE MEMBERS PRESENT Representative Gail Phillips COMMITTEE CALENDAR *HB 1: "An Act establishing a motor vehicle recycling grant fund and a motor vehicle recycling registration fee; and providing for an effective date." SSHB 1 PLACED IN SUBCOMMITTEE, CHAIRED BY REPRESENTATIVE SANDERS SJR 20: Disapproving the Local Boundary Commission recommendation regarding the annexation of territory to the City of Palmer." HELD IN COMMITTEE FOR FURTHER CONSIDERATION (* first public hearing) WITNESS REGISTER Representative Gail Phillips Capitol Building, Room 216 Juneau, Alaska 99811-1182 Phone: 465-2689 POSITION STATEMENT: Prime Sponsor, SSHB 1 Kent Swisher, Executive Director Alaska Municipal League 217 Second Street, Suite 200 Juneau, AK 99801 Phone: 586-1325 POSITION STATEMENT: Supported SSHB 1 Russell Heath, Executive Director Alaska Environmental Lobby, Inc. P.O. Box 22151 Juneau, AK 99802 Phone: 463-3366 POSITION STATEMENT: Supported SSHB 1 Jim Kohler, Executive Director Southeast Conference 124 West 5th Street Juneau, AK 99801 Phone: 463-3445 POSITION STATEMENT: Supported SSHB 1 Jeff Ottesen, Chief of Right-of-Way and Environment Division of Engineering and Operating Standards Department of Transportation and Public Facilities 3132 Channel Drive Juneau, AK 99801 Phone: 465-6954 POSITION STATEMENT: Supported SSHB 1 Janice Adair, Assistant Commissioner Department of Environmental Conservation 410 Willoughby Avenue, Suite 301 Juneau, AK 99801-1795 Phone: 465-5010 POSITION STATEMENT: Supported the concept of SSHB 1 Bruce Geraghty, Deputy Commissioner Department of Community and Regional Affairs P.O. Box 112100 Juneau, AK 99811 Phone: 465-4700 POSITION STATEMENT: Opposed SJR 20 Lee A. Wyatt The Eyak Corporation 4792-5 Business Park Blvd. Anchorage, AK 99503 Phone: 561-7161 POSITION STATEMENT: Provided information against the proposed Cordova Annexation Shirley Armstrong, Legislative Aide to Senator Randy Phillips Capitol Building, Room 103 Juneau, AK 99811-1182 Phone: 465-4949 POSITION STATEMENT: Described interests and testimony of property owners affected by SJR 20 PREVIOUS ACTION BILL: HB 1 SHORT TITLE: MOTOR VEHICLE RECYCLING GRANT FUND & FEE BILL VERSION: SSHB 1 SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Finkelstein, Nordlund TITLE: "An Act establishing a motor vehicle recycling grant fund and a motor vehicle recycling registration fee; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/04/93 25 (H) PREFILE RELEASED 01/11/93 25 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 25 (H) CRA, RESOURCES, FINANCE 01/13/93 52 (H) SPONSOR SUBSTITUTE INTRODUCED -REFERRALS 01/13/93 52 (H) CRA, RESOURCES, FINANCE 01/20/93 116 (H) COSPONSOR(S): FINKELSTEIN 01/27/93 167 (H) COSPONSOR(S): NORDLUND 02/11/93 (H) CRA AT 01:00 PM CAPITOL 124 02/23/93 (H) CRA AT 01:00 PM CAPITOL 124 BILL: SJR 20 SHORT TITLE: DISAPPROVE PALMER BOUNDARY CHANGES BILL VERSION: SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS TITLE: Disapproving the Local Boundary Commission recommendation regarding the annexation of territory to the City of Palmer. JRN-DATE JRN-PG ACTION 02/10/93 316 (S) READ THE FIRST TIME/REFERRAL(S) 02/10/93 316 (S) COMMUNITY AND REGIONAL AFFAIRS 02/16/93 (S) CRA AT 09:00 AM BUTROVICH ROOM 205 02/16/93 (S) MINUTE(CRA) 02/17/93 384 (S) CRA RPT 3DP 1NR 02/17/93 384 (S) ZERO FISCAL NOTE (S.CRA/CRA) 02/18/93 (S) RLS AT 11:30 AM FAHRENKAMP ROOM 203 02/18/93 (S) MINUTE(RLS) 02/19/93 410 (S) RULES TO CALENDAR 2/19/93 02/19/93 417 (S) HELD TO 2/22/93 02/22/93 441 (S) READ THE SECOND TIME 02/22/93 441 (S) ADVANCED TO THIRD READING UNAN CONSENT 02/22/93 441 (S) READ THE THIRD TIME SJR 20 02/22/93 442 (S) PASSED Y16 N1 E2 A1 02/22/93 444 (S) TRANSMITTED TO (H) 02/23/93 (H) CRA AT 01:00 PM CAPITOL 124 ACTION NARRATIVE TAPE 93-8, SIDE A Number 000 CHAIRMAN HARLEY OLBERG called the meeting to order at 1:06 p.m. He noted for the record that Representatives Sanders, Toohey, Bunde, Davies and Willis were present. SSHB 1: MOTOR VEHICLE RECYCLING GRANT FUND & FEE REPRESENTATIVE GAIL PHILLIPS, PRIME SPONSOR of SSHB 1, read her sponsor statement saying, "The purpose of this legislation is to increase the present annual motor vehicle registration fee by $2.00 and allow the legislature to appropriate these additional revenues into a motor vehicle recycling grant fund. The fund would then be utilized to provide grants to municipalities to pay for the costs of transporting abandoned motor vehicles to recycling centers." (A copy of her sponsor statement may be found in the House Community and Regional Affairs Committee Room, Capitol #110, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) REPRESENTATIVE PHILLIPS closed by adding, "There are some aspects of the bill (SSHB 1) that may need some further work, including the designation of the appropriate state agency to administer the program and the possibility of a legal distinction between 'junked' and 'abandoned' vehicles. Therefore, I would ask that the chairman consider sending this legislation to a subcommittee to work out these questions." Number 121 REPRESENTATIVE CON BUNDE asked if there were facilities to recycle automobiles in Alaska. REPRESENTATIVE PHILLIPS gave a description of the automobile recycling process and said, "In some cases they're going to have to be shipped out. The rural areas of Alaska where there are no landfill areas to take care of these... are very excited about using, they can just back haul on the barges and such, dump these vehicles on and ship them out because you know, as well as all of us, once a vehicle is abandoned in the Arctic it just stays there forever until it rots into the tundra." REPRESENTATIVE BUNDE expressed support for SSHB 1 and asked if the two dollars were sufficient to carry out the task. REPRESENTATIVE PHILLIPS said, "I didn't want to put a fee on that would eliminate us entering into this program." She added that the Municipal League had indicated their support for the five dollars' fee due to the large amount of initial removal. Number 166 REPRESENTATIVE JOHN DAVIES voiced his support for the bill on behalf of the Fairbanks area. He then volunteered to be on the proposed SSHB 1 subcommittee. REPRESENTATIVE CYNTHIA TOOHEY also gave her support to SSHB 1 and suggested the five dollar fee. She inquired where the automobile metal was customarily shipped to. REPRESENTATIVE PHILLIPS said, "In our discussion... it was Taiwan or South Korea had a very large shortage of metal and were very much interested in metal." Number 209 REPRESENTATIVE JERRY SANDERS said he also supports SSHB 1 but expressed concern that the bill reads, "the legislature 'may' appropriate money collected". REPRESENTATIVE PHILLIPS said, "We can just change 'may' to 'shall'." CHAIRMAN OLBERG added, "As chair of the subcommittee, Representative Sanders, you'll have free reign." Number 236 KENT SWISHER, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL LEAGUE, testified in support of SSHB 1. He said, "We do have this problem with an accumulation of vehicles. The league does support a five dollar fee for this purpose." RUSSELL HEATH, EXECUTIVE DIRECTOR, ALASKA ENVIRONMENTAL LOBBY, testified in favor of SSHB 1 in its present form but also said, "...what we don't have in this bill is the incentive to keep people from junking their vehicles, and I was wondering if there was an acceptable mechanism by which we could encourage people to properly dispose of their vehicles." He gave an example where Alaskans would pay the Division of Motor Vehicles a deposit until vehicles have been properly disposed of. REPRESENTATIVE TOOHEY said, "That would be nice, but most cars that are junked are junked because the people that own them either can't afford to fix them or they are not fixable. ...I think that complicates things. If their was some way of simply doing it...but I think complicating the bill (SSHB 1) is unnecessary." Number 289 REPRESENTATIVE BUNDE suggested, "Maybe built into the bill (SSHB 1) somehow could be a reclaiming fee. If you brought your own or any other wrecked vehicle to the salvage yard, there was then 25 or 50 dollars or whatever this fund could allow, saving the state to have to go out and collect it. Whatever we figured it would cost the state, we could give the individual that for towing their own car." REPRESENTATIVE ED WILLIS asked if SSHB 1 "would be viewed as another tax." CHAIRMAN OLBERG clarified this was a fee, not a tax. JIM KOHLER, EXECUTIVE DIRECTOR, SOUTHEAST CONFERENCE, testified in favor of SSHB 1. He said, "We recently conducted a survey in the region we have a wealth of information that we're more than willing and eager to share with the subcommittee..." MR. KOHLER added some suggestions, "...they have to do with issues of making sure that the language in the legislation while not too broad, is broad enough to allow communities perhaps to access these monies for some of the preparation costs involved before actual transportation, and secondly, to make sure that some of our communities that are outside of access to those particular centers that perhaps could do this work, again, have the capability of direct shipping to a particular vendor down below..." Number 349 JEFF OTTESON, CHIEF OF RIGHT-OF-WAY AND ENVIRONMENT, DIVISION OF ENGINEERING AND OPERATING STANDARDS, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES (DOT), testified in support of SSHB 1 saying, "We at DOT have had a 20 year program of removing vehicles and this program, quite frankly, is the perfect match to make the one that we now have and this one work statewide on an all road at all times." JANICE ADAIR, ASSISTANT COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, testified, "We certainly support the concept of the bill and look forward to working with the subcommittee." CHAIRMAN OLBERG appointed Representative Sanders, Bunde and Davies to the subcommittee to work further on SSHB 1. Representative Sanders was appointed the chairman of the subcommittee. Number 375 CHAIRMAN OLBERG called an at ease at 1:25 p.m. SJR 20: DISAPPROVE PALMER BOUNDARY CHANGES CHAIRMAN OLBERG reconvened the meeting at 1:30 p.m. and brought forth SJR 20. He pointed out that no action could be taken on the resolution since it had not been "read across the floor" yet as had been anticipated. Number 392 BRUCE GERAGHTY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, testified on SJR 20 saying, "This resolution has raised some very interesting issues for us, ...the reason it is before you is that the population of the area being annexed is so small that the individual there would be overwhelmed if it was done through the other process which is the local election. ...The Commission's work is probably going to be looking at more annexations across the state and it's going to be generated because of the decline in state revenues. The gentleman in this case is receiving some city services already." CHAIRMAN OLBERG reminded the committee any action on SJR 20 would have to wait until next week when it was properly before committee. REPRESENTATIVE TOOHEY asked the specific mil rate and how much the property taxes would increase if the Palmer annexation proceeded. LEE WYATT, EYAK CORPORATION, introduced himself as a former manager of the Mat-Su Borough and explained that if this property was annexed, there would be a city mil rate added to the existing borough mil rate. Number 475 REPRESENTATIVE TOOHEY reiterated her question. MR. WYATT was unsure but thought the mil rate was probably around 14. REPRESENTATIVE TOOHEY asked how large the proposed Palmer annexation was. SHIRLEY ARMSTRONG, LEGISLATIVE AIDE TO SENATOR RANDY PHILLIPS, PRIME SPONSOR OF SJR 20, testified that there were five property owners that held 7.5 acres of land in the proposed Palmer annexation. She described the interests and testimony of the property owners in the Senate Community and Regional Affairs meeting of February 9, 1993. She said, "Basically, it's sort of a controversy between the neighbors there, the people across the street from that particular piece of property." Number 514 REPRESENTATIVE DAVIES requested a more thorough background presentation from Senator Phillips at the next hearing of SJR 20. CHAIRMAN OLBERG introduced Mr. Wyatt as a representative from the Cordova Residents Against the Cordova Proposed Annexation. REPRESENTATIVE BUNDE confirmed there was currently no legislation drafted regarding the proposed Cordova annexation. MR. WYATT introduced himself as a representative of "the land interest of the Eyak Corporation" and also "to represent the inhabitants of the area outside the jurisdictional boundaries of the City of Cordova." MR. WYATT testified, "We are late for one reason, because we tried to follow the procedures of DCRA in regards to the time frames in which this annexation petition came forward. Originally the deadline for the petition to be submitted was waived so that the City of Cordova could submit it at a later date than what they like, which was the first of March. July 1, the annexation rules changed and it seemed like the DCRA staff and the Local Boundary Commission fluctuated between the two sets of rules, the old ones and the new ones. So we were somewhat confused as to what exact standards and regulations we were actually operating under. Prime example being that in order to get this petition to the legislature within the first ten days, they actually held a reconsideration meeting on the day before and got it in on the tenth day, but yet there's a 30-day reconsideration period that runs past that point. There were three reconsiderations that were presented. They were not acknowledged..." MR. WYATT continued, "We're in favor of the annexation basically, but we're not in favor of the procedures that were followed. What we would like to see is the possibility of delay in the annexation so that the city and the folks that are involved could get together and work out a plan." MR. WYATT added, "So we see it not only as a chance to get some revenues from outside the city but also an opportunity to possibly lock up some economic development on the part of the Native community as well. Originally, the Eyak Corporation was not allowed to select lands within a two mile limit of the city boundary, which is now seven and a half square miles, and they are hoping to annex out to an area that's 68 square miles. ...It's a land grab under the guise of future planning. We're just hopeful that maybe perhaps another resolution could come forward for the disapproval of this annexation so that it could come back next year with a really workable plan.". Number 622 CHAIRMAN OLBERG asked, "Is your lawsuit asking for a stay of the proceedings or a delay of the imposition or is it asking to have it overturned?" MR. WYATT replied, "All three." MR. GERAGHTY said, "Anytime we go about drawing lines on a map, we start getting into controversy." REPRESENTATIVE TOOHEY asked about the property's location in relation to the Copper River Highway. CHAIRMAN OLBERG described the location. ADJOURNMENT Number 640 CHAIRMAN OLBERG adjourned the meeting at 1:49 p.m.