SENATE COMMUNITY & REGIONAL AFFAIRS March 10, 1994 9:07 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Loren Leman MEMBERS ABSENT Senator Al Adams Senator Fred Zharoff COMMITTEE CALENDAR 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 - See Community & Regional Affairs minutes dated 2/22/94, 3/1/94. WITNESS REGISTER Dan Bockhorst, Local Boundary Commission Staff Supervisor Department of Community & Regional Affairs 333 W. 4th Ave., Suite 220 Anchorage, AK 99501-2341 POSITION STATEMENT: Offered information on SB 291 Alexis Miller, Staff to Senator Dave Donley State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on SB 291 Dee Fiske, City Clerk City of Hoonah P.O. Box 360 Hoonah, AK 99829 Mayor Albert Dick City of Hoonah P.O. Box 360 Hoonah, AK 99829 POSITION STATEMENT: Has concerns with SB 291 Ms. Bonnie Jenkins P.O. Box 149 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Paul Smith P.O. Box 559 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Glen Marunde P.O. Box 207 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 John Martiniuk P.O. Box 128 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Dick Malchow P.O. Box 212 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Mellie Terwilliger P.O. Box 206 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Patrick Cleary P.O. Box 522 Tok, AK 99780 POSITION STATEMENT: Opposes SB 291 Bill Miller P.O. Box 2262 Dot Lake, AK 99737 POSITION STATEMENT: Opposes SB 291 ACTION NARRATIVE TAPE 94-20, SIDE A Number 001 The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:07 a.m. He brought SB 291 (BOROUGH INCORPORATION & ANNEXATION) before the committee as the only order of business and stated the committee would take testimony over the teleconference network. Number 020 DAN BOCKHORST, Local Boundary Commission Staff Supervisor, Department of Community & Regional Affairs, referred to information he had provided to the committee relating to the criteria or standards which exist in the State Constitution, State Statutes and the Administrative Regulations of Local Boundary Commission with respect to the formation and incorporation of boroughs. He reviewed the four general standards provided in statute that are applicable to all boroughs, and he noted that the Local Boundary Commission has enacted a number of regulations to further implement and interpret these regulatory and statutory provisions. Number 080 MAYOR ALBERT DICK, City of Hoonah, said their city council recently reviewed SB 291 and a number of questions were raised with regard to Section 4(d), which relates to a proposal for incorporation being submitted to the Legislature if it is turned down by the voters. DAN BOCKHORST clarified that a majority of the total voters in the areas proposed for incorporation determine the outcome. He also said that the question of whether or not borough formation should be mandated is a question that is rightfully belonging before the Legislature, and the Local Boundary Commission has not taken a position either supporting or opposing mandatory borough formation. Number 135 BONNIE JENKINS, a member of the Tok Chamber of Commerce testifying from Tok, questioned why go to the expense, time and effort of having a election if it is voted down, but it still can be determined by the Legislature that an area should be incorporated. ALEXIS MILLER, staff to Senator Donley, pointed out that there has been discussion by the committee to change the "shall" in that section to "may." Ms. Jenkins also said that most of the people in Tok were not aware of SB 291 until the day before the hearing and they haven't really had time to thoroughly go through the bill. She observed that there is still question of whether their area could support its own borough services. Number 175 PAUL SMITH, President of the Tok Chamber of Commerce testifying from Tok, also voiced concern on whether their area could support a borough. Tok is a very tourist-oriented community with a limited summer income and no tax base. Number 188 GLEN MARUNDE, a 33-year Tok resident testifying from Tok, stated his objection to the intent of SB 291. While he thinks that the framers of the Alaska Constitution did a good job in putting together the borough Act, and it has worked well, he said a bill which eliminates the unorganized borough by including all regions in the state in an organized borough or unified municipality is a little heavy handed. He suggested changing the intent of the legislation to making it more attractive to the unorganized areas to naturally become a borough. He also suggested that the makeup of the committee on municipalities should be changed to ensure that at least four people from the unorganized areas of the state are on the committee. Further, the report prepared by the committee for submittal to the Legislature should be made available to all communities, not just municipalities. ALEXIS MILLER emphasized that the sponsor realizes this is a complicated issue and he welcomes written comments from Tok residents on the legislation. SENATOR RANDY PHILLIPS, responding to Mr. Marunde's concern on the makeup of the committee on municipalities, suggested a conceptual amendment changing it to one member from the unorganized areas from each of the judicial districts. Number 300 JOHN MARTINIUK, a 30-year Tok resident testifying from Tok, said the criteria for borough implementation that was outlined earlier by Mr. Bockhorst would be a lot better served for reapportionment purposes than for borough incorporation. He also questioned how in this time of declining state revenues the state could afford to promulgate the government necessary to incorporate these areas. Number 330 DICK MALCHOW, a resident of Tok for 22 years testifying from Tok, stated his agreement with the previous speakers' comments. He referred to the findings section on page 1 and said he thought "the opportunity to participate in government on the local level and enjoy the benefits of representation in local government" was a subjective statement. He suggested eliminating the language "enjoy the benefits of representation in local government." He also suggested that the commission should hold public hearings in every community of an area that is being considered for incorporation. Number 380 MELLIE TERWILLIGER, a 65-year resident of the state testifying from Tok, stated she was originally opposed to statehood, but she sees now, in some instances, that was wrong and we should have statehood. However, she said in 1994 they are still in the black hole called the unorganized borough and they have no voice. She also expressed her frustration with the disappearance of the Mental Health Trust Lands. Number 414 PATRICK CLEARY, a resident of Tok testifying from Tok, said he lives in Tok because that's where he wants to live and he added, "You stay where you're at and I'll stay where I'm at and everything will be alright." Number 430 BILL MILLER, President of the Dot Lake Village Council, said, historically, the unincorporated communities in the unorganized boroughs have shown to be more organized and more incorporated than the cities. When they build a project, they have to support the project locally, unlike Anchorage where almost all of the "white elephants" they have built there have cost the state billions of dollars. He said they may not have an organized government, but most of their communities have a entity that represents them, an entity that they work within, be it a village council in the villages or a business organization in the more sophisticated communities. Right now they are independent and they want to stay that way, he stated. Number 478 MELLIE TERWILLIGER pointed out that practically every village in the North Slope Borough is a city with a mayor. She said they are very democratically controlled and very organized. She said in the Tok area they don't have a voice and that should be of concern to the Legislature. Number 492 PAUL SMITH said there is a misconception that the people in the unorganized boroughs don't pay their fair share, but he pointed out that people living in these rural communities go to the urban areas to buy their goods and services, making a big impact on those economies. Number 515 SENATOR RANDY PHILLIPS closed the public hearing on SB 291, and stated that because the committee had lost its quorum, it would be brought up on Tuesday, March 15. There being no further business to come before the committee, the meeting was adjourned at 9:47 a.m.