SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE February 14, 1997 1:30 p.m. MEMBERS PRESENT Senator Jerry Mackie, Chairman Senator Randy Phillips MEMBERS ABSENT Senator Gary Wilken, Vice Chairman Senator Dave Donley Senator Lyman Hoffman COMMITTEE CALENDAR -- PRESENTATION BY THE LOCAL BOUNDARY COMMISSION WITNESS REGISTER Local Boundary Commission Members: Darroll Hargraves, Chairperson-at-large Nancy Cannington, Commissioner William Walters, Commissioner Kevin Waring, Commissioner Kathleen Wassserman, Commissioner ACTION NARRATIVE TAPE 97-6, SIDE A Number 001 CHAIRMAN MACKIE called the meeting of the Senate Community & Regional Affairs Committee to order at 1:30 p.m. He noted that several of the committee members were out of town and that the meeting was being teleconferenced to Cordova, Yakutat, Petersburg and Tok. After welcoming members of the Local Boundary Commission to Juneau, CHAIRMAN MACKIE invited Chairperson Darroll Hargraves to the table to report on the Commissions' activities during the past year. DARROLL HARGRAVES , Chairperson, at-large, Local Boundary Commission, explained the Commission was established to ensure that proposals to create and alter cities, boroughs and unified municipalities would be considered objectively and from a broad perspective. Of the approximately 130 state boards and commissions today, only the Local Boundary Commission and four others have their origins in Alaska's Constitution. Areas of involvement by the LBC include municipal incorporations, annexations, detachments, dissolutions, mergers, consolidations and reclassifications. Reclassification is done for cities only while all others are for cities, boroughs and unified municipalities. Mr. Hargraves said the Local Boundary Commission consists of five members. One is appointed from each of Alaska's four judicial districts and the fifth is appointed at-large. LBC members serve at the pleasure of the governor, they are appointed for overlapping five-year terms, and they serve without compensation. The Commission met 17 times during 1996 and in those meetings addressed the following proposals: - a petition by the City & Borough of Yakutat for annexation of the Gulf Alaska coastal region from the 141st meridian to Cape Suckling was approved; - a petition for detachment of 5,400 square miles from the Fairbanks North Star Borough was rejected; - a petition for incorporation of a 10,000 square mile home rule North Pole Borough was rejected; - a petition by the Fairbanks North Star Borough for detachment of 13 acres from the City of Fairbanks was approved; and - a petition for dissolution of the City of Akiak was approved. The two actions that have been sent to the Legislature for its review include detachment of territory from the City of Fairbanks and the Yakutat annexation. The Legislature has 45 days to review these actions. Under the constitution, the legislative approval is automatic unless the House and Senate adopt a joint resolution rejecting the actions by March 8. Mr. Hargraves informed the committee that the detachment of territory from the City of Fairbanks was relatively straightforward, and he has not heard a single person speak against that action. The detachment was proposed to allow the Fairbanks North Star Borough to use bond funds for the construction of a solid waste transfer site. However, in contrast, the Yakutat annexation proposal was complex and involved a number of fundamental public policy matters. The City & Borough of Yakutat seeks annexation of territory extending the western boundary of the city and borough further west to Cape Suckling. In February 1996, the City & Borough of Yakutat petitioned the Local Boundary Commission for annexation of that territory. There is a history of significant land use and resource management conflicts which require greater government planning, as well as a need for other local government services. Throughout the LBC proceeding various Prince William Sound community bodies, organizations and individuals vigorously opposed the annexation proposal. The Commission received over 15 hours of testimony concerning the annexation proposal as well as a tremendous volume of documentation received either in support or opposition to that action. Following two hours of deliberation the Commission amended the Yakutat annexation petition to exclude approximately 184 square miles lying the model borough boundaries of the Copper River region. The Commission then unanimously approved the amended petition. Mr. Hargraves noted the LBC adopted an 18-page decisional statement explaining the basis for their decision to amend and approve the Yakutat annexation petition, and that document has been provided to the committee. Four parties filed requests that the LBC reconsider its decision to approve the amended petition, but the requests for reconsideration were denied. Number 212 CHAIRMAN MACKIE asked if the decisions to approve the annexation by Yakutat and to reject the requests for reconsideration were unanimous in both cases, and MR. HARGRAVES acknowledged that they were. Number 230 SENATOR PHILLIPS referred to page 66 of the LBC Report and asked for and explanation the issue relating to Pilot Point and their tax resources. DAN BOCKHORST , Department of Community & Regional Affairs staff to the Local Boundary Commission, said the issue represented on page 66 of the report concerns a lack of limitations on the authority of municipal governments to levy sales taxes. At one point, the Legislature did have limitations and those were removed. The Commission is going to be dealing with reconsideration of the incorporation of Pilot Point, but this issue was raised in the context, not of the reconsideration part, but in the context that here's a particular municipal government that does have a considerable tax resource base. Number 280 CHAIRMAN MACKIE asked Mr. Hargraves if, from a citizen's standpoint, the way that the system operates now with the public members is conducive to the job the Commission has to do, and are the resources provided to the LBC adequate. MR. HARGRAVES explained the Commission works as a volunteer lay group of people from the community that are trying to just simply give a public service. He added that he doesn't think political influences have been that tremendous on the Commission and that they sit as impartially as anyone could on the cases before them. He said their staff support is outstanding, but if the Legislature were to enact certain pieces of legislation that have been under discussion, he calculates that the Commission's schedule could almost double. Number 385 CHAIRMAN MACKIE asked if the Commission's workload was to double, would that make if feasible for the members of the LBC to actually be able to serve the state in this capacity. NANCY CANNINGTON , Administrator for the City of Unalakleet, representing the Second Judicial District, said Commission members get tremendous amounts of information to read and digest, and she thinks if the workload was to double, she could not do it and continue with a full-time job. KATHY WASSERMAN of Sitka, representing the First Judicial District, pointed out that besides all of the material they have to read, they also have teleconferences to participate in, which means leaving work to do so. Also, when she travels to meetings in other parts of the state, she is usually gone at least four days, and she does not think her employer would allow the additional time away from her job that would be necessary if the workload increased. WILLIAM WALTERS of Fairbanks, representing the Fourth Judicial District, commended the staff support being provided by DC&RA, and he requested that, as much as possible, the Senate take efforts to protect that staff force, especially if the workload is going to increase. KEVIN WARING of Anchorage, representing the Third Judicial District, agreed with Mr. Walters' comments, and he added his first concern would be for the support staff, and, although he is self employed, he would have to have second thoughts for his family if the workload was substantially increased. CHAIRMAN MACKIE expressed appreciation to the members of the Local Boundary Commission for taking the time to appear before the committee. He then adjourned the meeting at 2:01 p.m.