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.