Oddly enough, the down and alive state are part of different logging levels.
In order to see the ALIVE in the log, you would need to increase the logging level to level-5. You probably have it at level-4 or lower at this point.
You should see this:
OCT 1 18:33:14 5/1 57 NETMAN-5: Enterprise:Service Transition:pete -> alive
Netman Level-5
Regards
Pete Knoops
Cisco Systems