Legislature(1993 - 1994)
02/22/1994 09:10 AM Senate CRA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS
February 22, 1994
9:10 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Robin Taylor, Vice Chairman
Senator Loren Leman
Senator Fred Zharoff
MEMBERS ABSENT
Senator Al Adams
COMMITTEE CALENDAR
Briefing: Alaska Local Boundary Commission, 1994 Annual Report to
the Legislature
SENATE BILL NO. 291
"An Act relating to including all regions in the state in an
organized borough or unified municipality; and providing for an
effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 291 - No previous senate committee action.
WITNESS REGISTER
Darrol Hargraves, Chairman
Alaska Local Boundary Commission
333 W. 4th Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
Dan Bockhorst, Staff Supervisor
Alaska Local Boundary Commission
Department of Community & Regional Affairs
333 W. 4th Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
Shelley Dugan, Commissioner
Alaska Local Boundary Commission
333 W. 4th Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
Frances Hallgren, Commissioner
Alaska Local Boundary Commission
333 W. 4th, Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
Myrtle Johnson, Commissioner
Alaska Local Boundary Commission
333 W. 4th Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
H. Toni Salmeier, Commissioner
Alaska Local Boundary Commission
333 W. 4th Ave., Suite 220, Anchorage, AK 99501-2341¶269-4500
POSITION STATEMENT: testified on the LBC & SB 291
Alexis Miller, Aide
Senator Donley
State Capitol, Juneau, AK 99801-1182¶465-3892
POSITION STATEMENT: prime sponsor of SB 291
ACTION NARRATIVE
TAPE 94-16, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called to
order by Chairman Randy Phillips at 9:10 a.m.
DARROL HARGRAVES, Chairperson, Local Boundary Commission (LBC),
says the boundary commission is in attendance to report the
activities of the LBC for the past year, and to report on possible
future developments for the LBC. Chairman Hargraves introduces
other members of the LBC: Commissioner Shelley Dugan, Commissioner
Myrtle Johnson, Commissioner Frances Hallgren, and Commissioner H.
Toni Salmeier.
CHAIRMAN RANDY PHILLIPS invites the commissioners of the LBC to the
committee table.
Number 020
CHAIRMAN HARGRAVES reads from a prepared statement that was
submitted to the Community & Regional Affairs Committee. Chairman
Hargraves introduces Dan Bockhorst, staff support for the LBC in
the Department of Community & Regional Affairs (DCRA).
Number 187
DAN BOCKHORST, Staff, Department of Community & Regional Affairs
(DCRA), states the 1964 earthquake caused some land on the boundary
of King Cove to subside, which was then filled in and developed.
This land was considered part of King Cove, though it was not
actually within the boundary of the city.
Number 200
CHAIRMAN RANDY PHILLIPS notes the existence of a letter from the
city manager of Seldovia stating there was no problem with
annexation, but he sees that in the report by the LBC, there was a
protest against the annexation.
Number 212
CHAIRMAN HARGRAVES says there was testimony in opposition to the
annexation, but it was confined to the people in the area being
annexed and the native corporation in the area. Since that time
nothing has come back to the LBC other than rumors that some people
would like to dissolve the city or reclassify it. Chairman
Hargraves continues his review of the 1993 LBC annual report.
Number 245
CHAIRMAN HARGRAVES states SB 164 will make technical amendments to
the law, and the LBC has submitted a one-page summary and a three-
page sectional analysis of the bill to the legislature. Chairman
Hargraves reads from these prepared documents.
CHAIRMAN RANDY PHILLIPS notes that SB 164 is currently in the
Senate Judiciary Committee.
CHAIRMAN HARGRAVES says the LBC thinks this legislation is vital,
and he hopes the legislature will give it consideration. Chairman
Hargraves continues his prepared remarks. Chairman Hargraves
states his support for HB 427, which would compensate LBC
commissioners.
Number 320
CHAIRMAN HARGRAVES lists the prospective activities for the LBC in
the coming year. It includes boundary work in Dillingham, North
Pole, Wrangell, Petersburg, Kake, Glacier Bay, Portage Pass, and
Susitna. Borough annexation is being considered by the Ketchikan
Gateway Borough. Borough detachments are being considered in the
Matanuska-Susitna Borough, the Municipality of Anchorage, the
Kodiak Island Borough, and the Fairbanks North Star Borough.
SENATOR ZHAROFF asks what a borough detachment is.
CHAIRMAN HARGRAVES replies that is removing a slice of land from a
borough.
CHAIRMAN RANDY PHILLIPS ask which areas are being considered for
detachment in the Municipality of Anchorage. Someone replies
Girdwood is one of the areas.
CHAIRMAN HARGRAVES says people always want to incorporate and
unincorporate and detach- the grass is always greener phenomenon.
CHAIRMAN RANDY PHILLIPS asks how an area can detach.
Number 340
MR. BOCKHORST replies the law permits an area to be detached from
an organized borough if it meets certain standards. The intent of
the constitution is that there be flexibility in borough
boundaries. There have been detachments from the Fairbanks North
Star Borough, the North Slope Borough, the Matanuska-Susitna
Borough, and from the Sitka Borough.
Number 355
SENATOR TAYLOR asks if the LBC can force a detachment, or if the
detachment must be voluntary.
MR. BOCKHORST responds that detachment can come through a
legislative review process. It does not need to have a vote of the
people. The process involves the LBC making a recommendation to
the legislature, and so long as the legislature does not adopt a
resolution rejecting the LBC recommendation within 45 days, the
recommendation stands.
SENATOR TAYLOR recommends that the LBC investigate dissolving the
community of Kupreanof.
Number 380
MR. BOCKHORST states there are several options under which a city
may be dissolved. One is if a city is inactive, DCRA must
investigate the city. Also, the state legislature, commissioner of
DCRA, and others, may petition the LBC to dissolve a city. There
are about five different ways dissolution may occur under the
current laws.
SENATOR TAYLOR says he would appreciate it if Mr. Bockhorst would
meet with Senator Taylor's staff to discuss that. Senator Taylor
is ready to dissolve Kupreanof.
CHAIRMAN HARGRAVES continues his prepared remarks, and says he
thinks the LBC is seeing so many small communities dissolving
because they are simply becoming inactive and disenfranchised with
their small local governments.
MR. BOCKHORST says he thinks declining state revenues are also
behind some of the small communities wanting to dissolve.
SENATOR ZHAROFF states that when communities become organized, they
fall into a different classification and fall under a whole new
realm of regulations, and some of the smaller communities simply
cannot afford to keep up with those additional responsibilities.
Number 425
CHAIRMAN HARGRAVES concludes his prepared remarks and announces
that some of the commissioners would like to make brief statements.
Number 430
MYRTLE JOHNSON, Commissioner, Alaska Local Boundary Commission,
says she also served on the LBC under Governor Miller. One of the
things she likes about serving now, is the LBC's use of
teleconferences to conduct business. It makes it easier for her to
serve on the LBC, because she does not have to take leave from her
job. Commissioner Johnson comments on state fiscal matters and
education.
Number 458
H. TONI SALMEIER, Commissioner, Alaska Local Boundary Commission,
thanks the committee for the opportunity to appear before it.
SHELLEY DUGAN, Commissioner, Alaska Local Boundary Commission, says
she is concerned about SB 291, because the boundary commission does
not advocate forming mandatory boroughs. The LBC spent a lot of
time working on the model boundaries project, assuring people that
it was not the goal of the LBC to form mandatory boroughs. The
model boundary project came about as a result of three petitions
that were filed in 1989, which were basically boroughs attempting
to reach out to areas outside their current boundaries, primarily
to enhance revenues by expanding their tax base. The LBC saw a
trend developing, whereby municipalities would simply attempt to
expand their boundaries to increase revenue. So the purpose of the
model boundaries project was to take a comprehensive look at the
state, overall. The LBC was concerned that existing boroughs not
be able to reach out and take all the revenue, leaving nothing to
form boroughs in the future. The LBC studied the state overall,
and came up with the model borough boundaries map, to use as a tool
for future boundary planning. SB 291 references a model boundary
study, so people then think the LBC's model boundaries project was
just a part of SB 291, which it is not. That is why the LBC tries
to take a position of neutrality. That neutrality and objectivity
is crucial to the success of the LBC. For this reason the LBC will
not take a stand on SB 291.
CHAIRMAN RANDY PHILLIPS says it is a coincidence that SB 291 was
introduced recently, and the committee was able to schedule it at
the same time it scheduled the briefing from the Local Boundary
Commission.
Number 501
FRANCES HALLGREN, Commissioner, Alaska Local Boundary Commission,
says SB 291 is a foreshadowing of things to come, and people in the
unorganized borough know that things are going to change.
Commissioner Hallgren concurs with the statements made by
Commissioner Dugan, and also thinks there are some portions of SB
291 that will have to be changed before consideration of passage.
One, regarding means to eliminate or reduce disincentives and
enhance incentives for the formation of boroughs, Commissioner
Hallgren thinks disincentives for not forming organized boroughs
would be more effective in getting citizens to organize local
governments. Another point, SB 164 needs to be thoroughly
considered, and mandatory boroughs should come after a system is
organized. We cannot mandate boroughs without having guidelines in
place.
Number 520
CHAIRMAN RANDY PHILLIPS asks what the annexation in Haines
involves.
MR. BOCKHORST says it is his understanding that, in the case of the
Haines annexation, the land involved is only one or two lots, and
regards extending some water utilities.
CHAIRMAN RANDY PHILLIPS asks if the Fairbanks annexation involves
taking in part of the pipeline. He recalls Fairbanks' effort to
annex that area several years ago, but residents of the area
objected, saying they wanted to form their own borough. Since that
time, residents of the area have made no effort to form their own
borough, and Chairman Phillips encourages the Fairbanks North Star
Borough to try again to annex the area north-east of Fairbanks.
COMMISSIONER DUGAN says she is glad to hear Senator Phillips
comments, because she supported Fairbanks' annexation of that area
also. That area is now included in the model borough boundaries
study as being a possible area for future annexation by Fairbanks.
CHAIRMAN HARGRAVES says Alyeska pipeline pump stations are popular,
and almost every region in the state would like to annex a pump
station.
Number 560
SENATOR ZHAROFF asks why, in the King Cove annexation, more area
wasn't included in the annexation.
CHAIRMAN HARGRAVES says the annexation is based on the petition
from the community, so he cannot answer that question. He says
there may be geographic reasons for particular boundaries.
TAPE 94-16, SIDE B
Number 572
CHAIRMAN RANDY PHILLIPS, hearing no further comments, announces the
Senate Community & Regional Affairs Committee will now take up SB
291 (BOROUGH INCORPORATION & ANNEXATION). The chairman calls the
representative from the sponsor's office to come to the committee
table and give a brief analysis of the bill.
Number 566
ALEXIS MILLER, Aide to Senator Dave Donley, says she appreciates
comments from commissioners of the LBC on SB 291. Ms. Miller says
she will dispel any rumors that she or Senator Donley communicated
with any LBC commissioners regarding SB 291 before its'
introduction. Since the introduction of SB 291 she has spoken with
Mr. Bockhorst.
CHAIRMAN RANDY PHILLIPS notes it was advantageous to be able to
schedule the bill while commission members were in town, so that
they would be able to comment and answer questions.
MS. MILLER says Senator Donley introduced SB 291 as a direct
response to the LBC's report on model borough boundaries. He had
read the report, and there was a particular section in which he saw
some inequities. Approximately 60% of the land mass of the state
and between 13%-20% of the population of the state is not within an
organized borough. Senator Donley saw it as those people (within
the unorganized area) were receiving services from the state they
were not paying for. He thought it would be more fair to have
those persons residing in unorganized areas paying for some of the
services they receive.
Number 538
COMMISSIONER SALMEIER asks, since SB 291 requests the LBC to
conduct a study, if the study the LBC just did on model borough
boundaries was adequate or not.
MS. MILLER says she has not looked at the model borough boundaries
study and is not sure whether it would be adequate or not. It
could possibly be used.
Number 527
COMMISSIONER HARGRAVES says there may be one technicality that
needs to be clarified: the model borough boundaries study is a
study of an area today. If a petition is made to the LBC, the LBC
would study the petition all over again. It would not simply
follow the model borough boundaries study.
Number 521
SENATOR TAYLOR asks if there is an assumption that the boroughs
created through SB 291 would have certain home-rule power, or would
they be created for the sole purpose of taxation.
MS. MILLER says she cannot answer that question.
SENATOR TAYLOR says he asks in relation to the Hillside area in
Anchorage. He wonders if the state would be walking into a myriad
of problems if SB 291 was passed. Would the state then be required
to provide state trooper coverage for all these areas? What other
services would be required?
Number 510
CHAIRMAN RANDY PHILLIPS asks if the LBC sees any technical problems
with SB 291.
MR. BOCKHORST says DCRA has not carefully reviewed SB 291. He
believes there is less of a need for some services in more rural
areas of the state. Many boroughs do not have police protection in
any sense. The cities within a borough may have protection, but
the boroughs do not.
Number 500
SENATOR TAYLOR says SB 291 attempts to prevent overlapping of
service districts, and other problems. If it is not going to do
that, if these new boroughs will be allowed to pick and choose the
services and those powers they wish to utilize, we will continue to
have overlapping of service districts.
CHAIRMAN RANDY PHILLIPS asks Senator Taylor about the situation in
Ketchikan. The chairman asks Senator Taylor to clarify if he
thinks service areas should be area-wide.
SENATOR TAYLOR confirms that is his belief. He does not think
local areas should be able to pick and choose which services they
should have. Senator Taylor describes some of the problems
communities in his district have had with local governments
deciding which services they would offer to its' residents.
Senator Taylor is concerned that under SB 291, citizens in rural
areas would be taxed, but not receive services. Apparently,
organized areas have the option of taxing residents, while at the
same time choosing not to provide certain services, such as police
protection and road maintenance, so the state is then required to
provide those services. If the unorganized areas of the state are
organized into one borough, will that borough be able to pick and
choose, as are the other organized boroughs? Some of the organized
boroughs that pick and choose which services they provide are
Petersburg, Wrangell, Juneau, and Fairbanks.
Number 448
CHAIRMAN RANDY PHILLIPS says the previously mentioned problems have
got to be changed. Chairman Phillips says the Eagle River area of
the service area he is in works fine.
Number 430
COMMISSIONER SALMEIER thinks SB 291 will raise so many problems for
the state. She foresees formidable problems with SB 291.
Number 415
CHAIRMAN HARGRAVES says organization at the local government levels
have political overtones and implications, and those do sometimes
guide the process. He recommends the committee get the LBC's ten
standards for what should be considered in an incorporation.
Perhaps if SB 291 is measured against those standards, it would
help you see whether or not it would work.
MS. MILLER says that was going to be her question: what would the
LBC recommend. If it is the model boundary, if there is something
specific. Because, as she said, Senator Donley read the LBC model
borough boundaries report, and she says she quotes a paragraph from
Senator Donley's press release, talking about the inequities, the
borough concept, 80% of Alaska's population. All of that came from
the LBC's report. That is where Senator Donley got his
information. That is why Senator Donley introduced SB 291. Ms.
Miller thinks Senator Donley is introducing it on behalf of the
LBC.
CHAIRMAN RANDY PHILLIPS asks Ms. Miller if Senator Donley has seen
the LBC's ten standards for analyzing a petition to the LBC.
MS. MILLER says she does not know.
CHAIRMAN RANDY PHILLIPS asks Ms. Miller to have Senator Donley look
at the LBC's ten standards, because Chairman Phillips is interested
in the concept of SB 291.
Number 400
CHAIRMAN HARGRAVES clarifies that the LBC's position on SB 291 is
one of neutrality. Chairman Hargraves would like the record to
reflect that neutrality.
MS. MILLER states SB 291 is not a new concept, and the provisions
contained in the bill have been discussed and proposed since
statehood.
Number 377
SENATOR ZHAROFF asks what happens to municipalities that want to
dissolve part of their borough under SB 291. Would the part being
detached from the rest of the borough become part of another
organized borough, or would it become part of the borough organized
under SB 291, or would it not be attached to any sort of organized
borough?
(Committee members and LBC commissioners discuss this question, but
no conclusion is reached.)
CHAIRMAN RANDY PHILLIPS asks if there is any other area in the
world where there is unorganized area that is not taxed, as there
is in the unorganized areas of the State of Alaska.
(The committee members and commissioners of the LBC come to general
agreement that there is, at any rate, no area in the rest of the
United States or Canada where areas remain untaxed.)
An unidentified female LBC commissioner says it is her personal
opinion that people in the State of Alaska have gotten used to
getting something for nothing.
CHAIRMAN RANDY PHILLIPS says he is preparing his community to start
paying for the benefits it receives. Some areas are not prepared
for that, however.
Number 286
COMMISSIONER HALLGREN says 164 will make it a little bit easier for
some places to do home-rule municipalities without having to go
through a three-step process.
CHAIRMAN RANDY PHILLIPS says that since the legislature is the
"assembly", so to speak, for unorganized areas, perhaps it could
tax the unorganized areas through a sales tax, property tax, or
some other tax.
CHAIRMAN HARGRAVES states that with the advent of the REAA's (Rural
Education Attendance Areas), the legislature's position as the
assembly for those areas was made very clear.
COMMISSIONER JOHNSON says if SB 291 passes, LBC commissioners will
need trooper protection to go to some villages.
(There is discussion of times when LBC commissioners needed police
protection during community meetings.)
(There is discussion of an arrest in Palmer in which local
authorities did not have jurisdiction, so state troopers
participated in the arrest.)
Number 260
COMMISSIONER JOHNSON feels the public needs to be educated as to
the process for petitioning with the Alaska Local Boundary
Commission.
CHAIRMAN HARGRAVES says Ms. Johnson has been recommending, in the
spirit of religious missionaries of times past, that there be
financial missionaries sent out to villages and communities.
Number 198
SENATOR ZHAROFF states he does not want people to leave the
committee meeting with the feeling that people in rural areas are
not paying their way. A lot of the small communities do have a tax
base from which they try to support their community, they do
attempt to do this. When one looks at some of the urban areas that
do not have a sales tax, you see a lot of free loaders there who
are not paying their own way. Proportionally, it is probably a
much larger percentage than the situations which exist in many of
the rural areas.
Unidentified female LBC commissioner says 164 will help those
places which are trying to shoulder their share of the fiscal
burden.
COMMISSIONER DUGAN comments that the City of Fairbanks is a prime
example of a city where the infrastructure is falling apart, yet
the citizens of the city have voted down a sales tax seven times in
the last two years. It is the old "something for nothing".
CHAIRMAN HARGRAVES says he has another speech on sales tax which he
plans to give to the city council in Ketchikan. The sales tax in
Ketchikan is currently 5%, and some people get the glory of paying
that twice. He won't give the details at this time, but if people
want to come to the Ketchikan city council meeting in the next few
weeks, they can hear his speech.
Number 175
MS. MILLER states SB 291 might not be politically correct, but it
is a political reality, and sometimes these tough decisions must be
made.
CHAIRMAN RANDY PHILLIPS says the committee will bring SB 291 up
again, perhaps on Tuesday, March 1, 1994, so the committee can
focus in on it.
CHAIRMAN RANDY PHILLIPS adjourns the Senate Community & Regional
Affairs Committee at 10:25 a.m.
| Document Name | Date/Time | Subjects |
|---|