Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/10/2020 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB194 | |
| SB218 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 194 | TELECONFERENCED | |
| *+ | SB 218 | TELECONFERENCED | |
SB 218-ROAD SERVICE AREA CONSOLIDATION
3:46:10 PM
CHAIR BISHOP called the committee back to order and announced
the consideration of SENATE BILL NO. 218, "An Act relating to
road service area consolidation."
3:46:32 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, apologized that Senator Coghill,
bill sponsor, was attending another committee meeting.
She explained that SB 218 was introduced at the request of the
Fairbanks North Star Borough (FNSB) to assist the borough
assembly in figuring a timely way to help financially strapped
road service areas (RSAs) consolidate.
3:47:11 PM
AIMEE BUSHNELL, Staff, Senator John Coghill, Alaska State
Legislature, Juneau, Alaska, read the class boroughs with the
ability to consolidate two or more road service areas (RSAs) if
the boards representing those RSAs request consolidations and no
new parcels are added to the single new service area. A 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 following sponsor
statement for SB 218 [Original punctuation provided.]:
Senate Bill 218 provides second contractors to perform
these services. Members of the board are appointed 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.
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. Such consolidation would lead to
greater efficiency and reduced costs through economies
of scale and less contract administration by borough
administrators.
3:49:17 PM
CHAIR BISHOP opened invited testimony for SB 218.
3:49:26 PM
MICHAEL BREDLIE, Rural Services Manager, Division of Rural
Services, Department of Public Works, Fairbanks North Star
Borough, Fairbanks, Alaska, testified in support of SB 218. He
detailed that the division administers and helps manage the RSAs
throughout the FNSB. As a second-class borough, FNSB receives
its road construction and maintenance powers through RSAs. FNSB
currently has 103 separate RSAs that maintain a total of 497
miles of road.
He summarized the formation of RSAs by the FNSB as follows:
• First RSA established in 1965.
• Second RSA established in 1969.
• 1973-1979: 20 RSAs established.
• 1980s: 67 RSAs established.
• 1990s: 13 RSAs established.
• Final RSA established in 2002.
MR. BREDLIE noted that state-shared revenues for local road
construction, improvements, and maintenance in the 1970s was
$2,500 per mile and that became the majority of revenue that the
RSAs received. But the state-shared revenues declined to $1,400
per mile in the 1990s and ended altogether in 2004. This
prompted some RSAs to hold elections to establish a tax revenue
cap to supplement and ultimately replace the state-shared funds.
3:51:57 PM
MR. BREDLIE said RSA consolidation is a substantial process
under current law. Elections are required to consolidate two or
more service areas if voters reside in the affected RSAs. The
process requires holding an open house so residents can ask
questions and make comments and borough assembly approval of the
election ordinance for each RSA requesting consolidation. He
said holding an election for each RSA that needs consolidation
would be difficult at best and the costs would be substantial.
He detailed that FNSB currently has 13 contractors that hold
maintenance contracts for the 103 RSAs in the borough. Some
contractors only maintain 1 RSA while others maintain 10-20. RSA
consolidation would provide greater efficiencies and potentially
better prices for the contractors, reduce contract
administration, and increase RSA on-site presence by the
division to monitor road conditions.
MR. BREDLIE noted that RSA consolidation would mean a reduction
in available commissioner seats. Currently there are 273
commissioners in the 426 available seats, which is a 36 percent
vacancy rate. He concluded his testimony reiterating that SB 218
would greatly assist FNSB in RSA consolidation.
3:54:04 PM
CHAIR BISHOP asked him to repeat the commissioner vacancy rate
for the RSAs.
MR. BREDLIE restated that the RSAs have 273 commissioners out of
a possible 426 seats, a 36 percent vacancy rate.
CHAIR BISHOP said he fully understood the intent of the bill,
especially from a contracting standpoint. Having one contractor
rather than two contractors for adjoining RSAs would save money.
SENATOR GRAY-JACKSON asked if FNSB must fill the RSA commission
vacancies.
MR. BREDLIE explained that most RSA commissions have three
members plus one alternate. All RSAs have at least one
commissioner, most have two, and a few have a full commission.
He said FNSB has enough commissioners to run its RSAs and asking
three people to volunteer for small RSA commissions is difficult
to do.
SENATOR GRAY-JACKSON said she supports SB 218. She explained
that her question was due to her district in Anchorage having
limited RSAs.
SENATOR MICCICHE asked Mr. Bredlie if he envisioned consolidated
RSAs to continue as four-person boards.
MR. BREDLIE answered that the number of commissioners might
depend on the size of an RSA. Large RSAs might be a five-person
commission. For example, consolidating 10 smaller RSAs might
result in one 5-person commission that currently requires 30
commission members with 10 alternates.
3:57:18 PM
SENATOR SHOWER joined the committee meeting.
SENATOR MICCICHE asked Ms. Moss if the RSAs would have to be
abutting.
MS. MOSS answered no, just in close proximity. She related she
has been involved with a local RSA for 30 years and an adjoining
service area uses a different contractor. Both contractors are
located across town, so a consolidation in that circumstance
could result in cost savings.
She explained that the bill is written to protect RSAs that are
functioning very well. She detailed that the RSA she is involved
with expanded twice within the last 10 years which doubled the
road miles. This RSA has been able to save over $100,000 which
was used as a federal match to get the roads in the service area
resurfaced. She reiterated that the bill does not disturb RSAs
that are doing their job.
3:59:10 PM
MARNA SANFORD, Assembly Member, Fairbanks North Star Borough
Assembly, Fairbanks, Alaska, testified in support of SB 218. She
advised that she is the chair of the Assembly Road Service Area
Committee (ARSAC) that includes members from seven of the RSAs
within the FNSB.
MS. SANFORD explained that FNSB is seeking legislative guidance
due to extremely low voter turnout. If two boards agree to
consolidate and few people vote in the RSA election, one family
could potentially upset a consolidation for the betterment of a
larger area.
MS. SANFORD summarized that SB 218 gives boards and the people
working on the ground the ability to make consolidation
decisions and bring something forward to the FNSB assembly. RSA
consolidation is a Fairbanks issue and the bill is a great step
in the right direction. Should the legislation pass, ARSAC would
identify the best cases for consolidation to help streamline the
administration and costs for all RSAs.
CHAIR BISHOP asked what it costs to run an election.
MS. SANFORD replied she could not recall the cost of the last
election.
CHAIR BISHOP asked her to follow up with the information.
SENATOR SHOWER noted Ms. Sanford's statement that one family
could swing an election and pointed out that the republic
designed the electoral system to work where one person could
swing an election. He said that process encourages more people
to vote and that was a good thought. He said the legislature
should not create policy simply because a few people might swing
an election, a concept that he was sure Ms. Sanford did not mean
to support.
4:02:20 PM
SENATOR MICCICHE suggested that neighborhood-sized RSAs may be a
Fairbanks issue. He said getting people to apply for RSA boards
is always a problem but he has more to learn about the issue in
the Fairbanks area before coming to any conclusion.
4:02:57 PM
CHAIR BISHOP held SB 218 in committee for further consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 194 Draft CS ver. M.pdf |
SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 Explanation of Changes ver A to M.pdf |
SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 Sponsor Statement.pdf |
SCRA 3/3/2020 3:30:00 PM SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 194 DRAFT Fiscal Note DEC-CO 03-02-2020.pdf |
SCRA 3/3/2020 3:30:00 PM SCRA 3/10/2020 3:30:00 PM |
SB 194 |
| SB 218 Sponsor Statement 3.2.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Map Fairbanks North Star Borough Service Areas 3.3.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Letter of Support Mayor Ward 3.3.2020.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |
| SB 218 Draft Fiscal Note DCCED-DCRA- 03-06-20.pdf |
SCRA 3/10/2020 3:30:00 PM SCRA 3/17/2020 3:30:00 PM |
SB 218 |