02/18/1999 08:03 AM House CRA

       HOUSE COMMUNITY AND REGIONAL AFFAIRS                                                                                     
                STANDING COMMITTEE                                                                                              
                February 18, 1999                                                                                               
                    8:03 a.m.                                                                                                   
                                                                                                                                
                                                                                                                                
  COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
  OVERSIGHT HEARING:     LOCAL BOUNDARY COMMISSION REPORT                                                                       
                                                                                                                                
  TAPE(S)                                                                                                                       
                                                                                                                                
  99-7, SIDES A & B                                                                                                             
                                                                                                                                
  CALL TO ORDER                                                                                                                 
                                                                                                                                
  Co-Chairman Harris called the House Community and Regional                                                                    
  Affairs Standing Committee to order at 8:03 a.m.                                                                              
                                                                                                                                
  PRESENT                                                                                                                       
                                                                                                                                
  Members present at the call to order were Representatives                                                                     
  Halcro, Harris, Morgan, Murkowski and Joule.  Representative                                                                  
  Kookesh arrived at approximately 8:05 a.m.                                                                                    
                                                                                                                                
  SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
  KATHY WASSERMAN. Vice-Chairperson of the Local Boundary                                                                       
  Commission (LBC), provided a brief overview of the LBC, which                                                                 
  consists of five public members appointed by the Governor, one                                                                
  from each of the four Judicial districts and a chairman                                                                       
  appointed at-large.  She summarized the activities of the LBC                                                                 
  during 1998, as follows:  The LBC met 13 times, considered                                                                    
  annexation proposals from Ketchikan, Haines, Thorne Bay,                                                                      
  Palmer, Fairbanks and Wasilla, and forwarded to the                                                                           
  Legislature its recommendation for an annexation to the City                                                                  
  of Haines.  Ms. Wasserman discussed in depth the controversy                                                                  
  in Haines, where the community was nearly evenly split over                                                                   
  the annexation issue.  She also noted that the LBC is asking                                                                  
  the Legislature to clear up ambiguities in the law that                                                                       
  governs how the LBC conducts its business.  She also briefly                                                                  
  discussed impediments and disincentives to formation of                                                                       
  boroughs in the unorganized areas.                                                                                            
                                                                                                                                
  DAN BOCKHORST, staff to the LBC in the Department of Community                                                                
  and Regional Affairs, provided further information to the                                                                     
  committee on some of the points Ms. Wasserman had discussed.                                                                  
                                                                                                                                
  LOUIS NELSON, a resident of Haines, spoke by teleconference                                                                   
  about the LBC recommendation to approve the annexation to the                                                                 
  City of Haines.  He is opposed to it, believes that at least                                                                  
  three businesses were intentionally left out of the annexation                                                                
  so that they would not have to contribute to the tax base of                                                                  
  the city, and would like the annexation to be held off for                                                                    
  another year.  In spite of the nearly even split in the last                                                                  
  election on this issue, Mr. Nelson believes the residents                                                                     
  throughout the area are against the annexation 2-1.                                                                           
                                                                                                                                
  ALLEN TESCHE, Commission Member from Anchorage, spoke by                                                                      
  teleconference regarding the Haines annexation, saying he                                                                     
  believed the process was fair and open and the issue of the                                                                   
  businesses being left out was not brought up at the LBC                                                                       
  hearings on the proposal.  He said the issue of the effects on                                                                
  the tax base of the city and the borough were discussed, but                                                                  
  the commission members could not find a compelling argument                                                                   
  that the annexation would have a financial impact great enough                                                                
  to justify turning it down.                                                                                                   
                                                                                                                                
  REPRESENTATIVE KOOKESH commented that as the representatives                                                                  
  of the Haines area, he and Senator Mackie had reviewed the LBC                                                                
  recommendation and had looked for a compelling reason not to                                                                  
  support it, but could not find one.   They will not work to                                                                   
  overturn the LBC recommendation.                                                                                              
                                                                                                                                
  DAN TURNER, Haines City Planner, spoke by teleconference in                                                                   
  support of the annexation.                                                                                                    
                                                                                                                                
  CAROL KNIGHT, Haines resident, spoke by teleconference in                                                                     
  opposition to approval of the annexation.                                                                                     
                                                                                                                                
  ELIZABETH HOLGATE, Haines resident, spoke by teleconference in                                                                
  opposition to approval of the annexation.  She is a business                                                                  
  owner in the to-be-annexed area, but had not been asked if she                                                                
  wanted to be annexed.  She said the City of Haines is unable                                                                  
  to keep up with its snow removal obligations now, so how would                                                                
  they be able to plow the streets of the annexed area.                                                                         
                                                                                                                                
  NANCY CANNINGTON, Commission Member, spoke by teleconference,                                                                 
  saying the extra year the LBC spent on the Haines annexation                                                                  
  gave ample opportunity to work out the details of the issue.                                                                  
                                                                                                                                
  COMMITTEE ACTION                                                                                                              
                                                                                                                                
  The committee took no action, except to accept the LBC annual                                                                 
  report.                                                                                                                       
                                                                                                                                
  ADJOURNMENT                                                                                                                   
                                                                                                                                
  The meeting adjourned at 9:35 a.m.