ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA

Monday, June 5, 2006 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2006-15

Submitted by: Rod Swope, City & Borough Manager

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

A. Employee Recognition

IV. APPROVAL OF MINUTES

A. May 15, 2006 – Regular Meeting 2006-13
B. May 24, 2006 – Special Meeting 2006-14

V. MANAGER’S REQUEST FOR AGENDA CHANGES

VI. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS.
(Not to exceed a total of 20 minutes nor more than 5 minutes for any individual).

VII. CONSENT AGENDA

A. Public Requests for Consent Agenda Changes, Other Than Ordinances for Introduction

B. Assembly Requests for Consent Agenda Changes

C. Assembly Action

1. Ordinances for Introduction

a. Ordinance 2006-20
An Ordinance Amending Non-Code Ordinance 99-11, The CBJ Land Management Plan, To Restate And Clarify The Assembly’s Intent Regarding The South Lena Subdivision.

This ordinance would amend Section 5(b) of Ordinance 99-11, the CBJ Land Management Plan, to state that the South Lena Subdivision lots may be offered for sale as authorized by Ordinance 2006-03, for development with on-site wastewater treatment and disposal systems.

Review of the public record of Planning Commission and Assembly actions on the Lena subdivision shows this intent and approval. The City Attorney has summarized portions of the record in the “Whereas” provisions of this ordinance. Given the possibility of litigation over whether the CBJ has complied with Ordinance 99-11 in authorizing the sale of the lots for development with on-site wastewater systems, it is in the public interest for the Assembly to restate and clarify its intent as set forth in this ordinance.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

b. Ordinance 2006-21
An Ordinance Increasing The Rates For Water And Wastewater Utility Services In The Water And Sewer Codes.

This ordinance would increase the customer service rates “across-the-board” by two percent for both the CBJ Water Utility and Wastewater Utility. The Financial Plans and Policies adopted for each utility in 2003 called for a biennial financial review of each utility beginning in FY07. The purpose of the review is to assess the revenue requirements for each utility and to determine the minimum level of customer service rate increase needed to ensure the fiscal stability of each enterprise operation.

Financial elements taken into consideration in the revenue requirement analysis include ongoing operation and maintenance costs; capital-related system replacement through depreciation funding less debt principal; debt service (repayment of existing bonds and loans), debt financing; revenue growth through increased customer base; inflation; operating and capital fund balances; and cash sufficiency and coverage testing for bonding health.

The FY07 two percent rate increases are dependent on the use of alternative funding sources (sources other than customer service fees) for each utility. The alternative funding sources have a large impact on reducing the FY07 rate increase. Alternative funding sources proposed include property tax for fire protection services within the Water Utility, Street Sales Tax support of sewer collection system replacement within streets, and a bond/loan for FY07 capital replacement work for the Wastewater Utility. Without alternative funding for FY07, the water rate increase would need to be approximately 10.5 percent and the wastewater rate increase would need to be 8.5 percent.

The Utility Advisory Board supports the rate increases and alternative funding plan for FY07/FY08.

The Public Works and Facilities Committee approved a motion of support for the proposed FY07 rate increases at its meeting on May 8, 2006.
I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

c. Ordinance 2006-23
An Ordinance Relating to the Operation of Vehicles on City and Borough Streets and Sidewalks; and Providing for a Penalty.

The Alaska State Legislature, in the session which ended in May, authorized use of a new type of vehicle on city streets, "low speed vehicles." The state legislation also provided an option for municipalities to prohibit them within their municipal jurisdiction. The City of Ketchikan has recently adopted an ordinance to prohibit these low speed vehicles. In light of the congestion on CBJ streets, particularly downtown in the summer, this ordinance would prohibit operation of the newly-authorized type of vehicles on CBJ streets and sidewalks.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

d. Ordinance 2006-24
An Ordinance Providing For The Issuance And Sale Of Two Series Of General Obligation School Bonds In The Principal Amount Of $50,055,000; Providing The Form And Terms Of The Bonds And For Unlimited Tax Levies To Pay The Bonds; Providing For The Appointment Of A Bond Registrar; And Authorizing A Preliminary Official Statement.

This ordinance would authorize the issuance of $50.055 million in General Obligation School Bonds. Of this amount, $44.06 million is part of the 15-year $54 million in school bonds approved by the voters on October 5, 2004 for the construction of a new high school in the Mendenhall Valley. The remaining amount is the 10-year $5.995 million school bond authorization approved by the voters on October 4, 2005 for the repair and renovation of the Glacier Valley Elementary School.

Both of these bond issues qualify for 70% reimbursement under the State’s School Construction Bond Debt Reimbursement Program. However, the reimbursement under the State’s Debt Reimbursement Program is subject to annual appropriation by the Legislature.

The remaining debt service, after state reimbursement and assuming the State fully funds the debt reimbursement program, will be paid from property taxes. The estimated total cost of the debt service, including interest at an average rate of 4.7% for the 10-year bonds and 4.8% for the 15-year bonds, is $70.14 million. CBJ should receive reimbursement from the State of $49.1 million, assuming full state funding, leaving $21.04 million to be paid from local property tax. The maximum estimated property tax mill levy needed to fund the local share, assuming full state funding, will be 0.36 mills or $36 per $100,000 in assessed value.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

e. Ordinance 2005-11(BC)      
An Ordinance Transferring $50,800 To The Land Acquisition Capital Improvement Project, The Source Being Unexpended FY05 Marine Passenger Fees Budgeted To The General, Docks And Roaded Service Area Funds.

Economic Impact Statement

This ordinance would transfer $50,800 of unexpended Marine Passenger Fees (MPF) that are budgeted for specific purposes and not expended by year end to the Land Acquisition-Open Space Project. For FY05, we are returning $50,800 in unexpended Local Emergency Planning Committee, Crossing Guard, and Downtown Parking Improvement funds.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

f. Ordinance 2005-11(BD)
An Ordinance Appropriating To The Manager The Sum Of $5,000 As Partial Funding For An Historic Structures Report On The Merchant’s Wharf Building, Funding Provided By The Alaska Department Of Natural Resources.

Economic Impact Statement

This ordinance would appropriate a $5,000 Historic Preservation Fund grant from the Department of Natural Resources to document the history and architecture of the Merchant’s Wharf Building, as well as completing an historic structures report using National Park Service Guidelines. The total project cost is $8,333 and the grant requires $3,333 in local participation, which will be met with current Community Development Department (CDD) staff resources. The scope of work will be limited to the history and architecture of the building only, and will not include an engineering evaluation or those items typical of a building condition report.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

g. Ordinance 2005-11(BF)
An Ordinance Appropriating To The Manager The Sum Of $1,351,743 To Fund The City And Borough Of Juneau’s Fiscal Year 2006 Public Employee Retirement System Contribution, Funding Provided By The Alaska Department Of Administration.

Economic Impact Statement

This ordinance would appropriately reflect, for accounting purposes, the State’s 5% Public Employee Retirement System (PERS) contribution for FY06. The ordinance would increase the personnel benefits citywide by $1,351,743 to reflect costs paid directly by the State into the PERS on behalf of CBJ. The funding is by the Alaska Department of Administration’s general fund, as appropriated by SB 46.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

h. Ordinance 2005-11(BK)
An Ordinance Appropriating To The Manager The Sum Of $10,500 As Funding For The Maintenance Of Downtown Parking Facilities, Funding Provided By Downtown Parking Fund Balance.

Economic Impact Statement

The ordinance would increase the Commodities and Services due to the unforeseen increases for the snow removal contract at the downtown CBJ parking lots and for maintenance and repairs, including the emergency repair of a dry sprinkler standalone pipe at the Marine Parking Garage. The funding will be provided by the Downtown Parking Facility’s fund balance.

I recommend this ordinance be introduced and set for public hearing at the next regular Assembly meeting.

2. Resolutions

a. Resolution 2358
A Resolution Authorizing the Manager to Fund the Transfer of Lot 1, Block 18, Townsite of Juneau from the Juneau Scottish Rite Temple to the State of Alaska.

On May 5, 2006 the Legislative Affairs Agency notified the Manager that the Alaska Legislative Council voted to accept the offer of the CBJ to fund the purchase of the Scottish Rite Temple for the ownership and use of the Alaska Legislature. The CBJ proposes to fund the transaction, which will transfer title from the Scottish Rite Temple directly to the State of Alaska, Alaska Legislative Council. This resolution, which authorizes the Manager to take the steps necessary to complete the transaction, is a companion measure to appropriation Ordinance 2005-11(BE).

3. Transfers

a. Transfer T-835 – Transferring $606,043 from the School Major Repairs Capital Improvement Project to the New Valley High School Capital Improvement Project.

Economic Impact Statement

This action transfers the remainder of the School Major Repairs Capital Improvement Project account to the New High School project in the Mendenhall Valley. The revenues in this CIP are largely interest earnings from closed school projects. The High School Project Team approved the transfer of this fund in October 2005. This transfer is contingent upon adoption of Ordinance 2005-11(BH).

I recommend this transfer be approved.

VIII. PUBLIC HEARING

A. Ordinance 2006-15
An Ordinance Amending Land Use Code Relating To Zoning Maps.

Packet Materials:

Staff Memo I        Staff Memo II          Example Maps     Example Overlay Maps

Example Outdated Maps

This ordinance would adopt a clear and easy-to-read set of maps to accompany the Land Use Code.

In reviewing the existing maps, four problem areas were identified:

• Outdated Zoning Maps
• Incorrect Code references to “the map”
• Outdated and unclear Zoning Overlay Maps
• Other Maps referenced in Title 49

There is a representative example of each mapping category listed above in your packet. A full set of maps is also available for review at this meeting. Maps can also be reviewed on the internet at:

http://www.juneau.org/cddftp/LandUseCodeUpdate.php

Staff reviewed these map items with the Title 49 Update Committee of the Planning Commission, and the full Planning Commission at its February 28, 2006 meeting.

The Planning Commission recommended that the Assembly adopt:

1. A proposed set of reformatted and updated zoning maps for the CBJ; and

2. All proposed amendments to the Title 49 text where references to “the map” are being replaced by reference to a specific geographic area of the CBJ as shown on the new Geographic Area Map; and

3. All recommended changes to the zoning overlay maps and other maps referred to in Title 49, including reformatting these maps and deleting outdated maps.

The Lands Committee, at its March 20, 2006 meeting, recommended that the Assembly adopt these revisions to Title 49.

I recommend this ordinance be adopted.

B. Ordinance 2006-18(b)
An Ordinance Amending the Disturbing the Peace Code.

This ordinance was requested by the Juneau Police Department. Ordinance 2006-18 would reduce the penalty for disturbing the peace from a Class B Misdemeanor to an infraction with a $300 fine. Reducing the penalty to an infraction will make the ordinance easier to enforce.

I recommend this ordinance be adopted.

C. Ordinance 2006-19
An Ordinance Amending The Fire Code Fine Schedule And Building Code Fine Schedule, And Amending The Building Code.

Summary of Changes Memo        Standard CBJ Foundation

Standard Floating Foundation       Title 19 Spreadsheet

This ordinance would amend Title 19 of the CBJ Building Code, and modify portions of the adopted International Building Codes. After a year and a half of experience working with the 2003 International Codes (previously it was the Uniform Codes), as adopted in October 2004, some issues needed to be addressed prior to the review of the 2006 Building Code adoption.

The categories of changes include: housekeeping corrections to reference numbers, insertion point, titles, etc., that have no substantive change to the code as previously adopted. Modifications to the Flood Zone regulations proposed would resolve conflicts and a duplicative process with the Flood Zone regulations in Title 49 of the Land Use Code. Changes would also address unintended consequences such as the plumbing fixture table, clarification of code as it is applied, new fee schedule to set permit fees for fire department inspections, and changes requested by staff and local contractors.

The Building Code Advisory Committee and the CBJ Fire Marshal have met over the past year to review the proposed changes and they recommend approval. The Public Works and Facility Committee recommended approval at its May 8, 2006 meeting.

I recommend this ordinance be adopted.

D. Ordinance 2005-11(AV)
An Ordinance Appropriating To The Manager The Sum Of $63,077 As Partial Funding For Capital Transit Operations, Funding Provided By The Alaska Department Of Transportation And Public Facilities.

Economic Impact Statement

CBJ receives this operating grant routinely and includes it in the annual operating budget. In FY06 CBJ budgeted $120,000 for this grant. However, the actual award for FY06 is $183,077. This ordinance appropriates the additional grant funds.

I recommend this ordinance be adopted.

E. Ordinance 2005-11(AW)
An Ordinance Appropriating To The Manager The Sum Of $2,370 To Adjust Fiscal Year 2006 Budgeted Library Grants To The Actual Grant Amounts Received, Funding Provided By The Alaska Department Of Education And Early Development.

Economic Impact Statement

This ordinance would appropriate $2,370 to adjust the FY06 Library grant budgets to the actual amounts received. Three grants, as shown as follows, are involved in this adjustment.

A summary of the Library FY06 Grant budget as adjusted by this ordinance is shown in the table below.

ADJUSTMENTS TO LIBRARY GRANTS

Grant FY06 Budget                                  Increase     (Decrease)         Revised FY06 Budget
Public Library Assistance    $18,000           600                                               $18,600
Regional Mail Services         107,000       2,020                                               109,020
Net Lender                                   2,200                            (250)                                1,950
TOTAL                                    $127,200       2,370                                              $129,570

I recommend this ordinance be adopted.

F. Ordinance 2005-11(AX)
An Ordinance Appropriating To The Manager The Sum Of $3,900 As Funding For The Purchase Of Public Access Computers, Funding Provided By The Bill And Melinda Gates Foundation.

Economic Impact Statement

This ordinance would appropriate $3,900 for the purchase of public access computers for use at each of the three library branches. The Bill & Melinda Gates Foundation is providing this “Staying Connected” grant to public libraries that received or purchased computing equipment under the original Gates Foundation internet connectivity initiative in 2003. The intent of the present grant is to replace or upgrade equipment received in the first phase of the initiative.

I recommend this ordinance be adopted.

G. Ordinance 2005-11(AY)
An Ordinance Appropriating To The Manager The Sum Of $109,000 As Funding For The Juneau International Airport’s Fiscal Year 2006 Operating Budget, Funding Provided By Operating Revenues.

Economic Impact Statement

This ordinance would increase the commodities and services authority in the FY06 Airport Budget from $2,172,100 to $2,281,100. This increase is funded from user fee revenues and interest income. The need for additional funds resulted from an unanticipated increase in fuel prices and a larger order of chemicals in FY06.

The Airport’s retained earnings balance will be $2,670,400 after this appropriation.

The Airport Board, at its April 12, 2006 meeting, recommended this ordinance be forwarded to the Assembly.

I recommend this ordinance be adopted.

H. Ordinance 2005-11(AZ)
An Ordinance Transferring To The Manager The Sum Of $69,302 As Funding For The Replacement Of Eaglecrest Ski Area’s Ski Rental Equipment, Funding Provided By Sales Tax.

Economic Impact Statement

This ordinance would transfer $69,302 in sales tax from an existing capital improvement project, Eaglecrest Deferred Maintenance, to Eaglecrest’s operating budget to replace the existing ski rental equipment.

One of the missions of Eaglecrest is to increase the number of people who use the ski area. One of the most effective methods to increase usage is to bring new people to the sport. To that end, it is critical that these new people have a very positive first experience at Eaglecrest.

In addition, the new rental fleet will allow for greater sales with the increase to the size of the fleet and increase of the rental price for each unit. This request would allow 230 units to be purchased. Eaglecrest rents approximately 6,000 units per season (each unit being used an average of 26 times per season). A $2 increase in sales would result in an increase of $12,000 per season or a five-year return on investment for this request.

The Public Works and Facilities Committee approved this request at its April 17, 2006 meeting.

I recommend this ordinance be adopted.

I. Ordinance 2005-11(BA)
An Ordinance Appropriating To The Manager The Sum Of $90,000 As Funding For The Fleet Maintenance Equipment, Funding Provided By Fleet Maintenance Fund Balance.

Economic Impact Statement

This ordinance would appropriate $90,000 from the Fleet Maintenance Reserve for replacement of the computerized fuel control system and pumps at the Downtown Shop and Capital Transit ($65,000), and replacement of major repair equipment for Fleet Maintenance including the tire balancer, brake lathe, and emergency tools for the field truck ($25,000).

The existing fuel control system and pumps were installed in 1995 and have exceeded their operational life. The existing computerized fuel system is no longer compatible with current computer hardware technology. The existing fuel pumps have a history of operational failure and the mechanics can no longer purchase replacement parts. This fuel system is used by all departments within the CBJ.

The Fleet Maintenance reserve will have a remaining balance of $325,100 after this appropriation.

I recommend this ordinance be adopted.

J. Ordinance 2005-11(BB)
An Ordinance Appropriating To The Manager The Sum Of $2,800,500 As Partial Funding For Bartlett Regional Hospital’s Fiscal Year 2006 Operating Budget, Funding Provided By User Fees And Interest Income.

Economic Impact Statement

This ordinance would appropriate $2,800,500 from various funding sources to increase the spending authority of Bartlett Regional Hospital’s (BRH) fiscal year 2006 operating budget. The specific increases are:

• $984,300 for commodities and services, due to contract employees and physician recruitment.
• $1,600,000 for the reserve contribution, due to a greater than expected increase in operating cash.
• $300,000 for the replacement of critical equipment that broke during the fiscal year.

These increases are funded by an increase in user fees, interest income, and an anticipated $79,300 savings in personnel services and $4,500 in debt service.

BRH retained earnings balance will be $13,930,000 after this appropriation.

At its April 25, 2006 meeting, the Hospital Board requested the Assembly approve this increase.

I recommend this ordinance be adopted.

K. Ordinance 2005-11(BE)
An Ordinance Appropriating To The Manager The Sum Of $648,700 To Fund The Transfer Of Title To The Scottish Rite Temple To The State Of Alaska, Funding Provided By Sales Tax Budget Reserve.

Economic Impact Statement

On May 5, 2006 the Legislative Affairs Agency notified the Manager that the Alaska Legislative Council voted to accept the offer of the CBJ to purchase the Scottish Rite Temple for the ownership and use of the Alaska Legislature. City staff will assist Legislative Affairs with activities related to potential use and renovations of the property. Staff is actively working with the property owner to determine a purchase price that relates to fair market value. The CBJ will fund the transaction to transfer title from the Scottish Rite Temple to the State of Alaska, Alaska Legislative Council.

The Lands Committee recommended approval at its May 8, 2006 meeting.

I recommend that action on this ordinance be postponed and review of this matter continued at the June 26, 2006 regular Assembly meeting.

L. Ordinance 2005-11(BH)
An Ordinance Appropriating To The Manager The Sum Of $511,385 To The School Major Repairs Capital Improvement Project. Such Funds Provided By 1991 General Obligation School Bond Interest Income.

Economic Impact Statement

This ordinance would appropriate $511,385 of unappropriated 1991 GO Bond interest income to the School Major Repairs Capital Improvement Project. The goal is to transfer these funds to the New Valley High School Project through an accompanying transfer, T-835 presented on the agenda of tonight’s meeting.

I recommend this ordinance be adopted.

M. Ordinance 2005-11(BI)
An Ordinance Appropriating To The Manager The Sum Of $260,000 As Partial Funding For The New Valley High School Project. Such Funds Provided By 2005 General Obligation School Bond Interest Income.

Economic Impact Statement

This ordinance would appropriate $260,000 of 2005 General Obligation Bond Interest Income to the New Valley High School Project.

I recommend this ordinance be adopted.

N. Ordinance 2005-11(BJ)
An Ordinance Appropriating To The Manager The Sum Of $4,570,000 And Transferring These Funds To The New Valley High School Project, Funding Provided By The Sales Tax Budget Reserve.

Economic Development Committee

This ordinance would appropriate $4,570,000 from the Sales Tax Budget Reserve to the New Valley High School Project. These funds would supplement the budget to complete award and construction of this project.

I recommend this ordinance be adopted.

O. Ordinance 2006-12(A)
An Ordinance Appropriating Money Out Of The Treasury For FY07 School District Operations

This ordinance would appropriate $3,112,600 for Juneau School District Operations. This action is the result of an increase in the State Foundation Funding Formula, which increases the State Foundation funding by $1,495,900, adds other State funding of $456,600, allows the CBJ to increase its contribution to the Juneau School District by $344,000, and uses $747,600 of fund balance.

The Assembly Finance Committee, at its meeting of May 17, 2006, recommended this action.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. E05-283, New High School In The Mendenhall Valley.

Bids were opened on the subject project on May 4, 2006. The bid protest period expires at 4:30 p.m. on June 2, 2005. Results of the bid opening are as follows:

                     Architect’s Estimate         Coogan Construction     McGraw’s Custom Const
Base Bid            $38,130,000.00                   $46,970,000.00                       $57,989,000.00
Alternate No. 1        $424,027.00                         $435,000.00                            $410,000.00
Alternate No. 2        $182,208.00                         $386,000.00                            $340,000.00
Alternate No. 3        $258,700.00                         $600,000.00                            $490,000.00
Alternate No. 4        $570,000.00                         $260,000.00                            $540,000.00
Alternate No. 5        $173,000.00                         $385,000.00                            $616,000.00
Alternate No. 6                     $0.00                                 $700.00                      $ (1,210,000.00)
Total:                   $39,737,935.00                    $49,036,700.00                      $59,175,000.00

Project Manager: Sarah Lewis

This project consists of construction of an approximately 166,000 SF, new, steel-framed, metal, tile and CMU-clad, two-story high school with continuous and point concrete foundations, mechanical ventilation, emergency generator, main and auxiliary gymnasiums, locker and shower rooms, weight room, student commons with commercial kitchen, library, science labs, foods lab, computer labs, band and choir rooms, administration and counseling areas, and all general and specific classrooms as illustrated in the Construction Documents. This project also includes parking lots, landscaping, and other site improvements to the previously prepared site (prepared under separate contract). There are six Additive Alternates associated with the Work. Additive Alternate No. 1, Initial Theater Finishing; Additive Alternate No. 2, Secondary Theater Finishing’ Additive Alternate No. 3, Tertiary Theater Finishing; Additive Alternate No. 4, Theater Lighting; Additive Alternate No. 5 Theater Technology and Additive Alternate No. 6 extends Substantial Completion.

ARCHITECT'S ESTIMATE FOR CONSTRUCTION (Oct. 2005): Approximately $38,130,000.

Funding Source: ADF&G, USFWS, FY04 General Sales Tax, 2005A GO Bond Proceeds, 2006 GO Bond Proceeds, 2006 OTC Bond Proceeds, Budget Reserve, FY06 Sales Tax, FY07 Sales Tax.

Total Project Funds*:                                         $65,381,000.00
CIP No.: 454-83
Construction Encumbrance:                            $46,970,000.00
Construction Contingency (5%):                        $2,348,500.00
Consultant Design:                                               $2,158,100.00
Consultant Design – Construction Phase:          $750,000.00
Construction Inspection:                                          $750,000.00
In house Contract Administration/Inspection:      $912,000.00
CBJ Administrative Costs:                                        $235,000.00
Furniture, Fixtures, and Equipment:                     $3,243,900.00

*Funds dependent upon Assembly approval of Ordinances 2005-11 (BH), (BI), and (BJ), and Transfer T-835.

I recommend award of this project to Coogan Construction Company in the Base Bid amount for a total award of $46,970,000.

B. LENA v Planning Commission – Appeal of Final Plat

On April 25, 2006, the CBJ Planning Commission approved a final plat for the South Lena Subdivision, USS 3809 Lots 2,3, 4A and 6 TR A; Lena Marie LT 3. On May 19, 2006, the Lena Extended Neighborhood Association (LENA) filed an appeal of the decision to the Assembly. The Notice of Appeal and Notice of Decision is in your packet. The Assembly is the appeal agency for this appeal, and its actions throughout the appeal process are governed by CBJ 01.50, the Appellate Code. The Code requires that upon receiving an appeal, the Assembly must first decide whether to accept or reject it. The standards applicable to this decision are set out at CBJ 01.50.030(e):

(e) Action by Appeal Agency Upon Receipt of a Notice of Appeal.
(1) Within thirty days of receipt of a notice of appeal by the appeal agency, the appeal agency shall notify the appellant of the acceptance or rejection of the appeal and, if rejected, the reasons for the rejection.
(2) The notice of appeal shall be liberally construed in order to preserve the rights of the appellant. The appeal agency may reject the appeal for failure to comply with these rules or if the notice of appeal does not state grounds upon which any of the relief requested may be granted.

LENA and the Planning Commission were advised that this matter is before the Assembly.

The following procedural issues should be decided:
1. Will the Assembly accept the appeal?
2. Will the Assembly hear the appeal itself or assign to a hearing officer?
3. If the Assembly hears the appeal itself, will the Mayor preside, or will he designate another member as presiding officer?

This matter is before the Assembly sitting in its quasi-judicial capacity. Accordingly, members should avoid discussing the case outside the hearing process.

With respect to this issue, the Appellate Code provides as follows:

CBJ 01.50.230 IMPARTIALITY. The functions of hearing officers and those appeal agency members participating in decisions shall be conducted in an impartial manner with due regard for the rights of all parties and the facts and the law, and consistent with the orderly and prompt dispatch of proceedings. Hearing officers and appeal agency members, except to the extent required for the disposition of ex parte matters authorized by law, shall not engage in interviews concerning the appeal with, or receive evidence or argument on the appeal from, a party, directly or indirectly, except upon opportunity for all other parties to be present. Copies of all communications with a hearing officer or appeal agency member concerning the appeal shall be served upon all parties.

Because this is an appeal, I have no recommendation on whether or how the Assembly should hear the appeal.

C. JEDC Revolving Loan Fund

The motion is to approve a $492,400 loan to KTOO from the Southeast Alaska Revolving Loan Fund (SA-RLF) Program. Under a Memorandum of Agreement with JEDC, signed on January 23, 1997, the CBJ provided funding for the revolving loan fund program. Under the provisions of this agreement certain loans require prior Assembly approval. Lending provisions are as follows -

• If loans are provided in participation with a financial institution chartered federally or by the State of Alaska; another governmental funding source; or a private institutional funding source independent of the borrower and where the cumulative total of the participating lending is not less [than] 50% of that of the SA-RLF loan. The terms and conditions established for loans not requiring Assembly approval will be at the discretion of the SA-RLF and within the limitations established in this agreement.

• Primary lending by the JEDC which requires authorization of the CBJ Assembly. The JEDC will submit to the Assembly for final approval SA-RLF recommended loans which do not meet the “participation lending” provisions noted above.

The loan request by KTOO does not include any lending participation. As such, it is being brought before the Assembly for approval. The SA-RLF (JEDC) is recommending approval of the loan request. Staff have reviewed the financial information presented by the SA-RLF. There appears to be adequate funding and security for the loan. Ms. O’Neal has indicated that she does not feel that providing this loan will impact the SA-RLF’s ability to provide other business development loans. A letter from Margaret K. O’Neal, Director of the Southeast Revolving Loan Fund outlining additional information on this lending request is contained in the packet.

I recommend approval of the SA-RLF request.

D. Export Manufacturing Exemption

The CBJ code includes provisions, 69.10.020(10) for exempting qualifying manufacturing property from assessment and taxation. Qualifying property will receive a declining 5-year percentage exemption from the property’s market value.

• 100% exemption in year 1
• 80% exemption in year 2
• 60% exemption in year 3
• 40% exemption in year 4
• 20% exemption in year 5

Property owners seeking an exemption must file a request with the CBJ Assessor’s Office on or before January 31 of each year. The code places the authority for approving the manufacturing exemption requests with the Assembly.

The Assessor’s Office has received the following property manufacturing exemption requests for the 2006 tax year (FY07 budget year).

An Export Manufacturing Exemption Application for Alaska Glacier Seafood Inc. business personal property and Glacier Holdings LLC (1st year) real property. Owner for both accounts is Mike J. Erickson. Attached are copies of the export exemption applications.

The Assessor’s Office has reviewed the applications and determined they meet the exemption provisions. The Assessor recommends approval of these export exemption applications.

I recommend approval of these export exemption applications.

E. Active Fishing Vessel Discount Fee Change

This regulation amends the small boat harbors fee schedule to include an Active Fishing Vessel time limit of 20 days per calendar year which was omitted in the original regulation.

The Docks and Harbors Board proposed the amendment on May 16, 2006 and held two public hearings during May. Notice of the amended regulation was sent to the public libraries, the Port Office and the harbor offices. The Board adopted the regulations at its May 25, 2006 meeting.

The regulations will not require an increased appropriation of general funds by the municipality.

I recommend the Assembly allow the regulations to take effect.

F. West Douglas Working Group Annual Report

XI. STAFF REPORTS

XII. ASSEMBLY REPORTS

A. Mayor’s Report
B. Committee Reports
C. Liaison Reports
D. Presiding Officer Reports

XIII. ASSEMBLY COMMENTS AND QUESTIONS

XIV. CONTINUATION OF PUBLIC PARTICIPATION ON NON-AGENDA ITEMS

XV. EXECUTIVE SESSION

XVI. ADJOURNMENT

Note: Agenda packets are available for review at the Juneau Municipal Libraries and online at www.juneau.org.

ADA Accommodations Available Upon Request: Please contact the Clerk’s office 72 hours prior to any meeting so arrangements can be made to have a sign language interpreter present or an audiotape containing the Assembly’s agenda made available. The Clerk’s office telephone number is 586-5278, TDD 586-5351, e-mail: city_clerk@ci.juneau.ak.us.


Office of the City Clerk, 155 South Seward Street, Juneau, Alaska 99801
 
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