MEMORANDUM

Members, Kenai Peninsula Borough Assembly

FROM: Dale Bagley, Mayor

Ron Long, Assembly Member

DATE: January 23, 2003

SUBJECT: Ordinance 2003-03, establishing the Lowell Point Emergency Service Area

On December 9, 2002, the assembly considered a report submitted by the mayor regarding potential formation of an emergency service area in the Lowell Point area. As shown in the report, the Lowell Point Community Council has been actively working toward providing fire protection for several years. They conducted a mail-out survey to all property owners indicating strong support for creation of a borough service area. The proposed service area would include the Lowell Point area on the eastern Kenai Peninsula just south of the city of Seward. The primary reason for establishing this service area would be to provide fire protection services in the Lowell Point area. The Lowell Point Volunteer Fire Rescue Department is currently registered with the State Fire marshal's office and is starting up operations with plans to be fully operational in May 2003. The assembly scheduled a meeting which was held in Seward City Council chambers to consider formation of the service area on January 11, 2003. Public comment supported formation of the service area.

While several individuals testified in support of imposing both a sales tax and a property tax to fund the service area, due to significant legal and administration issues associated with imposing a sales tax within a service, we do not support imposing a sales tax at this time. Also, although the initial intent of the parties supporting forming the service is to provide only fire service, the ordinance would adopt the power to provide both fire and emergency medical services within the service area if it is approved by the voters. All other fire service areas in the Kenai Peninsula Borough have both powers and exercise them to the extent they are able. Injuries may be associated with fires, so it seemed appropriate to adopt the power to provide emergency medical services. The board is not required to immediately exercise those powers.

This ordinance provides for a five-member board. The first board members would be appointed to serve one-year terms. At the end of those one-year terms, the board would be elected to staggered terms.

The Alaska Constitution and Alaska Statutes provide that a service area may not be established if the service can be provided by annexation to a city, by an existing service area, or by incorporation as a city. Title 3 of the Alaska Administrative Code provides standards used by the Local Boundary Commission in determining whether an area qualifies for annexation to a city.

The first standard, needs of the territory, requires that the territory exhibit a reasonable need for city government. In reaching this conclusion, the commission considers whether there are existing or reasonably anticipated social or economic problems, health safety and general welfare problems, anticipated economic development, the adequacy of existing services, and extraterritorial powers of adjacent municipalities. There are no known anticipated significant social or economic problems, and the community council has applied for a Village Safe Water Matching Grant for Residential Sewer and Water Systems which is ranked favorably due to local match and effort. Economic activity is primarily seasonal and the existing services would be adequate if the service area is formed. Accordingly, the first criterion for annexation does not appear to be met.

Secondly, the boundary commission considers the character of the territory to be annexed and whether it is compatible with the city. The Lowell Point area land use is primarily residential and not compatible for commercial or industrial development. The population density is sparse compared to that of the city. Accordingly, the character does not warrant annexation to the city.

The next factor is whether the economy within the proposed city boundaries would include the human and financial resources necessary to provide essential city services on an efficient cost effective level. The Lowell Point area, while adjacent to the city boundaries, is connected by a single road that is not conducive to the extension of police, fire, and emergency services, water and sewer, and parks and recreation services provided by the city. Additionally, the income and revenue from the proposed new territory would undoubtedly not justify including this in the city.

Finally, the population of the Lowell Point area would only increase the city of Seward's population by about 4 percent. The standards require that the population must be sufficiently large and stable to support the extension of city government. The Lowell Point area includes many seasonal property owners as well as year-round residents and is not sufficiently large or stable to support the extension of city government. Accordingly, this service would appropriately be provided through the formation of a service area rather than annexation to a city or by incorporation as a city.