Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/25/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| SB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 103 | TELECONFERENCED | |
| *+ | SB 105 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 105-ROAD SERVICE AREA CONSOLIDATION
2:11:40 PM
CHAIR MYERS announced the consideration of SENATE BILL NO. 105
"An Act relating to road service area consolidation."
CHAIR MYERS stated that SB 105 was requested by the Fairbanks
North Star Borough.
2:12:11 PM
MICHAELLA ANDERSON, Staff, Senator Robert Myers, Alaska State
Legislature, Juneau, Alaska, on behalf of the sponsor,
paraphrased the sponsor statement:
Senate Bill 105 provides second class boroughs with
the ability to consolidate two or more road service
areas (RSAs) if the boards representing those RSAs
request consolidation and no new parcels are added to
the single new service area.
A road service area is a taxing jurisdiction
established at the request of the voters within a
geographical area to provide certain services within
their specific area. Voters establish their
boundaries, the maximum mill levy imposed on real
property for the purpose of road maintenance services,
and a board that determines the level of road
maintenance services and directs contractors to
perform these services. Members of the board are
nominated by the mayor and confirmed by the borough
assembly.
Beginning in 1972, and in the years that followed,
RSAs benefited from state shared revenues (SSR) for
local road construction and improvements. SSR
reductions through the 1990s prompted RSAs to hold
elections to establish tax revenue caps to supplement
the reduced state funding for local roads. Existing
RSAs also resisted annexations of new parcels and
roads to their service areas leading to the formation
of new RSAs. Of the five second class boroughs in the
State of Alaska that have RSAs (Fairbanks, Mat-Su,
Kenai, Kodiak and Ketchikan), the Fairbanks North Star
Borough has, by far, the most RSAs at 103. The next
largest borough by RSAs is the Mat-Su Borough with 16.
2:13:01 PM
MS. ANDERSON said municipalities currently do not receive any
state-shared revenues for road service areas (RSAs). She
explained that SB 105 would address an issue facing the vast
majority of RSAs in the Fairbanks North Star Borough (FNSB) by
adding a new exception to allow timely consolidation of two or
more RSAs without a vote by their residents. Instead, it would
enable the affected RSA boards to agree to the changes as long
as no new parcels were added or removed.
MS. ANDERSON continued to paraphrase the sponsor statement:
While greater efficiencies and lower costs in
maintaining local roads could be achieved through
consolidating some RSAs, borough assemblies do not
have the power to adjust service area boundaries
without voter approval. Separate elections are
required for each of the RSAs subject to
consolidation, and these elections typically fail to
turn-out voters. Consolidation efforts led by RSAs
themselves, as proposed under SB 105, would lead to
greater efficiency and reduced costs through economies
of scale and less contract administration by borough
administrators.
MS. ANDERSON said this bill does not allow FNSB's mayor or
assembly to consolidate RSAs without RSA boards requesting
consolidation.
2:14:27 PM
MICHAEL BREDLIE, Rural Services Manager, Fairbanks North Star
Borough, Fairbanks, Alaska, spoke in favor of SB 105. His
division manages the road service areas (RSAs) throughout the
Fairbanks North Star Borough (FNSB). As a second-class borough,
FNSB receives its road construction and maintenance powers
through service areas. Currently, FNSB's 103 RSAs maintain a
total of 498 road miles.
He provided a brief history of RSAs in the borough. The
borough's first RSA was established in 1965 and a second one was
added in 1969. Between 1973 and 1979, 20 RSAs were established.
All but two of the 67 RSAs were established between 1981 and
1986. In the 1990s, 13 RSAs were established, with the final one
formed in 2002.
This liaison could also provide information and guidance to the
commissioner and the governor on the board's approach and
rationale used to make board recommendations. During the mid-
1970s, the RSAs received $2,500 per mile for maintenance and
operations (M&O). This became the majority, if not the entire
revenue obtained by the service areas. By the 1990s, the M&O was
reduced to $1,400 per mile, declining until 2003 or 2004, when
state revenue sharing ended. At the time, the reduction in state
revenue sharing prompted many RSAs to hold elections to
establish revenue tax caps to supplement and replace their state
revenue-sharing funds. From 1991 to 1997, 74 RSAs instituted
revenue tax caps.
MR. BREDLIE related his understanding that RSA commissions
resisted annexing new parcels and roads to their service areas.
In response, the administration decided to form new service
areas. He said this increase in RSAs appears to correspond with
state shared revenue that FNSB received from 1972 to 2004.
He offered his belief that no other borough in the state has
this issue. Alaska has five second-class boroughs with road
service area powers. FNSB has 103 RSAs, the Mat-Su Borough (MSB)
has 16, Ketchikan Gateway Borough (KGB) has 10, Kodiak Island
Borough (KIB) has four and the Kenai Peninsula Borough (KPB) has
one large RSA split into five regions.
MR. BREDLIE explained that FNBS's RSA consolidation process was
difficult. First, elections are required to consolidate two or
more RSAs if the voters reside within the existing service
areas. Next, the borough must hold open house meetings, the
assembly must approve the election ordinance to authorize the
RSA elections for residents in the service areas. Finally,
holding an election to consolidate each service area is costly,
he said. Currently, FNSB has 13 contractors who perform
maintenance in its 103 RSAs. Some contractors maintain one RSA
and others maintain from 10 to 20 service areas.
2:18:40 PM
MR. BREDLIE explained that consolidating service areas would
provide greater efficiencies and better prices for contractors,
which could result in less contract administration. In terms of
staff, consolidating RSAs could reduce contract administration
costs and increase staff's presence to assess road conditions in
RSAs. Concerning RSA commissions, consolidating RSAs would
reduce the number of seats. He said that 266 of the 426 RSA
commissioner seats are filled, which is a 38-percent vacancy
rate.
2:19:34 PM
CHAIR MYERS asked how much money FNSB would save by
consolidating RSAs.
MR. BREDLIE responded that he was unsure, but FNSB would save
contractor and administrative costs.
2:20:12 PM
SENATOR MICCICHE asked what problems FNSB encountered by adding
RSA consolidations to the ballot for municipal elections.
MR. BREDLIE answered that each RSA election would be held
outside the municipal election because voters are located in
different areas and separate taxing jurisdictions. He stated
that FNSB's Clerk's Office incurs substantial time and costs to
administer elections given the large number of RSAs.
2:21:34 PM
SENATOR SHOWER recalled that a similar bill was previously
introduced. He asked whether FNSB asked its residents whether
they wanted to consolidate RSAs.
MR. BREDLIE answered no. He acknowledged that former Senator
Coghill introduced a bill during the last legislature, but it
did not pass.
SENATOR SHOWER asked whether the purpose of SB 105 was to
provide FNSB with a method to consolidate its RSAs without
obtaining sufficient support from residents.
MR. BREDLIE responded that SB 105 would give the borough an
additional tool to join two or more service areas without an
election when the road commissions agree. He remarked that FNSB
would still reach out to residents; that the process still
requires approval by RSA commissions and the assembly.
2:24:36 PM
SENATOR SHOWER asked who currently appoints the commissioners
and whether this process would give the mayor additional
authority.
MR. BREDLIE responded that the mayor appoints commissioners and
the assembly confirms them.
SENATOR SHOWER said it seems as though this process will give
the mayor additional power.
2:25:28 PM
SENATOR BISHOP asked whether FNSB's Assembly supports SB 105.
MR. BREDLIE responded that the request for SB 105 was initiated
by FNSB's legislative committee, which is comprised of assembly
members, the mayor, and legal representatives. He surmised that
assembly members support SB 105 since the assembly passed a
resolution.
SENATOR BISHOP asked for a copy of the resolution.
MR. BREDLIE agreed to provide it.
2:26:32 PM
SENATOR MICCICHE stated that RSA members are elected in the
Kenai Peninsula Borough (KPB). KPB regularly experiences
problems with vacancies. He surmised that people would prefer to
have elected officials make the final decisions although he
agreed that would consolidate some power. He offered to consult
with KPB on whether it supports the concept.
2:27:42 PM
CHAIR MYERS asked if FNSB passed an ordinance earlier this year
for all road commissioner terms to expire in June 2021.
MR. BREDLIE responded that in 2019, an ordinance changed the
commissioner's terms from two to three years to allow for
staggered terms. In the meantime, FNSB will send out
applications to all commissioners and draw to decide which ones
are one, two or three year terms, he said.
CHAIR MYERS offered his view that the mayor would appoint every
commissioner if this bill were to pass. Given that the mayor
would like to consolidate RSAs, the mayor could impose a litmus
test for applicants.
MR. BREDLIE explained that half of the commissions expire each
year. He related that prefilled applications are sent to all
commissioners by April. Once the applications are signed, the
applications are forwarded to the mayor and to the assembly. He
said he did not envision this process changing, but the terms
will be staggered.
2:31:00 PM
JILL DOLAN, Attorney, Fairbanks North Star Borough, Fairbanks,
Alaska, in response to whether SB 105 would ultimately give more
power to the mayor, said any boundary change must be made by
ordinance. Although this bill would require that service area
boards make recommendations and request to consolidate RSAs, the
elected officials will make the ultimate decision.
2:31:51 PM
MS. DOLAN explained that FNSB cannot run elections for service
areas with the regular municipal election because the precinct
boundaries do not align with the service area boundaries. The
borough must determine voter eligibility for each service area.
She explained that consolidated RSAs requires elections be held
in each service areas being combined, which means that ballots
are separately accounted for in each RSA election.
2:32:25 PM
SENATOR SHOWER said the 2020 election included local, state,
federal elections in Alaska. Thus, voters were handed multiple
ballots. He was unsure why the RSA elections could not be given
on the same day as municipal elections.
MS. DOLAN responded that municipal and state election districts
share the same precinct boundaries. She said FNSB's Clerk's
Office runs the elections. Voters must first request their
ballots for service area elections in person. The clerk must
determine in which RSA area the person resides since the ballots
for each service area must be counted separately. The municipal
clerk advised that RSA elections should not be held at
concurrent with municipal elections, she said.
2:34:37 PM
SENATOR MICCICHE asked how many households comprise the largest
service area.
MR. BREDLIE answered that the College RSA maintains about 20
miles of road serving over 1,000 households.
[SB 105 was held in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 103 Sponsor Statement Version A 3.9.2021.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB 103 Sectional Analysis 3.9.2021.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB 103 Fiscal Note DOTPF.PDF |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB105 Sponsor Statement 3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| SB105 Sectional Analysis Version A 3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| SB105 Fiscal Note DCCED.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| FNSB Road Service Area Map.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| FNSB support for SB105_3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |