HB 279 - OUTDOOR ADVERTISING; ENCROACHMENTS 2:25:16 PM CO-CHAIR GATTO announced that the next order of business would be HOUSE BILL NO. 279 "An Act relating to encroachments in the right-of-way of a highway." REPRESENTATIVE BILL STOLTZE, Alaska State Legislature, said he lives in a community with a highway going through it. It was once more scenic, he added, opining that easements have been given out by the Department of Transportation & Public Facilities (DOT&PF) in an antiquated way. Some easement are 50 feet and some are 300 feet, and the community is looking at a potential expansion. Some landowners have encroachments such as lawns. He said HB 279 "grandfathers" in those encroachments that don't interfere with possible construction or impede the state's interests. He said it is a huge issue in Chugiak. 2:28:48 PM CO-CHAIR GATTO asked if the bill runs afoul of federal requirements, thus limiting Alaska's potential funding. REPRESENTATIVE STOLTZE said he has worked with agencies in an effort to craft the legislation so as not to run into problems. 2:29:50 PM JOHN MACKINNON, Deputy Commissioner, Highways & Public Facilities, Office of the Commissioner, Department of Transportation & Public Facilities (DOT&PF), said that HB 279 provides clarification and gives the department the ability to permit outdoor advertising within the right-of-way, which, to date, has been prohibited by state statute. "There are probably somewhere in the order of under 100 of these, within the right- of-way, throughout the state, and ... they've become a problem for us and they've been a problem for years," he added. He said many of the signs that encroach have been removed, but there are many still remaining, and they should be permitted as the encroachments occurred in good faith. "When you've got a 300 foot right-of-way, and the road and its improvements encompass 100 feet of it [with] the 200 feet on the outboard side - or 100 on each outboard side - what's the harm in allowing public/private use of that area," he said. "We do support this," he added, but the DOT&PF is waiting for a determination from the [Federal Highway Administration (FHWA)] regarding outdoor advertising. CO-CHAIR GATTO asked what would happen if both the bill passes and the state wants to use the right-of-way. MR. MACKINNON said that people would be required to remove the encroachments, adding that it's probably a cleaner situation to have the encroachments identified and permitted. Any such permitting agreement could stipulate what would happen should the state decide to use the right-of-way. CO-CHAIR GATTO referred to a handout in members' packets containing proposed changes to HB 279; that handout read [original punctuation provided]: Page 2, line 2, following "right-of-way" Delete "who erected" Insert "for" Page 2, line 12, following "fee" Insert "not to exceed $100" CO-CHAIR GATTO referred to the proposed change to page 2, line 2, of the bill as Amendment 1. [Although no formal motion had been made,] he asked whether there were any objections to adopting Amendment 1. There being none, Amendment 1 was adopted. CO-CHAIR GATTO referred to the proposed change to page 2, line 12, of the bill as Amendment 2. [An unidentified speaker in the audience made comments, but those comments were not picked up clearly by the microphones.] MR. MACKINNON noted that the DOT&PF's regulations provide for a $250 nonrefundable application fee for any encroachment permit. CO-CHAIR GATTO [although no formal motion had been made] asked whether there were any objections to the adoption of Amendment 2. There being none, Amendment 2 was adopted. REPRESENTATIVE KAPSNER asked whether there was a fiscal note. MR. MACKINNON said the DOT&PF is not sure at this time what the fiscal note would be, but predicted that it would not be much, since the department would most likely deal with encroachments on a project-by-project basis. He offered his belief that Section 2 of the bill stipulates that the burden of proof of "that three-part test" lies with the department. CO-CHAIR GATTO offered a hypothetical example wherein one applies for and receives an encroachment permit and then chooses to erect a 12 by 24 foot advertising sign. He asked whether such would be "grandfathered" in. MR. MACKINNON explained that the bill specifically says that only the encroachments that existed on the Act's effective date would be grandfathered in. He added, "We are in the process this year of doing a video cataloging of the rights-of-way, which would show the existing encroachments or any structure/improvement located on the right-of-way; that would allow us to have a date at which the encroachment [existed]." CO-CHAIR GATTO ascertained that the bill doesn't have a specific effective date. 2:37:29 PM LINDA KOVAC, Secretary/Treasure, Board of Directors, Chugiak Community Council, Municipality of Anchorage (MOA), relayed that the Old Glenn Highway Rehabilitation Project - Alaska Department of Transportation & Public Facilities (DOT&PF) State Project No. 52515 - is an upgrade to the Old Glenn Highway, which runs through Chugiak. The primary scope of this project, she continued, is to add shoulders, a pathway, and turn lanes at the major intersections. Chugiak has been pushing for this upgrade to increase safety for over 10 years, and is pleased the work is being addressed; however, the history of this road's right-of- way is complex, and many costly encroachments have been built in this right-of-way over the last 50 years. The right-of-way itself varies between 60 and 300 feet, with several sections that are 200 feet. MS. KOVAC relayed that the DOT&PF has informed the Chugiak Community Council that all encroachments will have to be removed due to federal funding requirements, and its position on encroachments is that if a person wants to obtain a permit to have an encroachment, the application will only be considered after all existing encroachments have been removed from the entire right-of-way and the project is complete. Additionally, the list of allowable encroachments is minimal. For example, some permitted uses could be grass, or flowers, or parking in excess of what's required for a particular property. Furthermore, encroachments for commercial purposes will not be allowed. She mentioned that the DOT&PF has relayed that since the Old Glenn Highway's right-of-way has been thoroughly researched and surveyed, the right-of-way must be enforced due to possible liability issues. She offered her understanding that this means that all encroachments must be removed regardless of whether the project continues. MS. KOVAC predicted that if the encroachments are removed, this will impact residences and business adjacent to "this five-mile stretch of road." Such an impact will cause hardships and some entities will go out of business due to a loss of parking, and some entities will have to find new land on which to install new septic systems or water wells. "We wonder why certain encroachments would have to be removed if they are not obtrusive; House Bill 279 would allow some unobtrusive encroachments to remain, perhaps like wells, lift stations, signs, parking, and others," she remarked, adding, "this bill may also reduce impacts to the Chugiak Volunteer Fire Department's Latimer Fire Station." Currently the DOT&PF information indicates that the right-of-way line goes right through the station house; additionally, the station's parking area will need to be removed. MS. KOVAC mentioned that HB 279 may also reduce the impact [of the project's encroachment requirements] on the Chugiak Benefits Association [Building] - which is a nonprofit community center managed by and belonging to the communities of Chugiak and Eagle River - particularly its parking lots, basketball courts, and fenced-in play areas. She said she hopes that HB 279 passes, and characterized [the bill] as "just common sense." 2:40:48 PM BRUCE BARTLEY, Chief, Chugiak Volunteer Fire and Rescue Company, Inc., Anchorage Fire Department, Municipality of Anchorage (MOA), urged the committee to support HB 279. He said that Latimer Fire Station 35 is located on the Old Glenn Highway, and that depending upon which map one looks at, the DOT&PF's proposed right-of-way is either right outside the station's front door, or runs right through the middle of the building. He relayed that the Chugiak Volunteer Fire and Rescue Company has occupied the aforementioned building for more than 50 years; the land the structure sits on is leased by the Bureau of Land Management (BLM) to the Chugiak Volunteer Fire and Rescue Company in perpetuity for as long as the structure remains a fire station, and the structure sits 118 feet from the edge of the existing pavement. In conclusion, he described the structure's attributes and some of the activities that occur in it, and urged the committee to adopt the legislation. CO-CHAIR GATTO asked Mr. Bartley whether the loss of 100 feet between the station and the road would compromise the Chugiak Volunteer Fire and Rescue Company's ability to perform its duties. MR. BARTLEY replied that the loss of 100 feet might create a safety problem when pulling out onto the road. CO-CHAIR GATTO asked whether there is a flashing light located at that station. MR. BARTLEY said there is not, but mentioned that there is a DOT&PF sign, approximately 100 yards down the road, warning approaching traffic of the station's presence. 2:43:28 PM DEBBIE OSSIANDER, Member, Anchorage Assembly, Municipality of Anchorage (MOA), relayed that she has been hearing concerns regarding the Old Glenn Highway project, specifically that the right-of-way encroachment issue would engender problems for many groups and residences in her community should the project go through as currently outlined. After listing various entities that would be affected by the project, she said that there is a need for flexibility so as to make the project workable for the community. She characterized HB 279 as a wonderful approach to the potential problems surrounding encroachments on both the Old Glenn Highway and the Seward Highway, adding that she wholeheartedly supports the bill. CO-CHAIR GATTO mentioned that members' packets contain letters of support for the legislation from both the Chugiak-Eagle River Chamber of Commerce and the Chugiak Community Council. 2:46:20 PM REPRESENTATIVE KAPSNER moved to report HB 279, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 279(TRA) was reported out of committee.