ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, May 14, 2007 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2007-14

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 7, 2007 - Special Assembly Meeting 2007-13

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 2007-33
An Ordinance Amending The Sales Tax Code Regarding Tuition Charged by Non-Profit Corporations.

This ordinance will expand the sales tax exemption code to include tuition payments received by non-profit corporations that provide education as an alternative to the public school system. In addition, the ordinance also includes a retroactive application. The Sales Tax Office will determine who qualifies for the exemption.

On March 14, 2007, the Assembly Finance Committee reviewed and moved to recommend to the Assembly the expansion of the sales tax exemption code to include tuition payments received by non-profit corporations that provide education as an alternative to the public school system. In addition, they also recommended a non-code ordinance section be included to retroactively apply the exemption.

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

b. Ordinance 2007-34
An Ordinance Amending The Sales Tax Code Regarding Sales Of Goods Delivered Outside The City And Borough.

This ordinance will expand the sales tax exemption for goods ordered from outside the CBJ and delivered outside CBJ to include electronic delivery. The verification of electronic delivery will be determined by the buyer’s billed-to address.

On March 14, 2007, the Assembly Finance Committee reviewed and moved to recommend to the Assembly the expansion of the sales tax exemption code to include the delivery of product by electronic means.

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

c. Ordinance 2007-36
An Ordinance Establishing An Annual Fee For Commercial Business Participation In The CBJ Recycling Program.

Joe Buck Memorandum

This ordinance establishes a $100 fee for business/commercial participation in the CBJ Recycling Program. The ordinance expands the current scope of the City’s Recycling Program consistent with the program goal of increasing the total volume of materials recycled in Juneau, and thus minimizing the volume of waste material going into the landfill.

The current recycling program is funded through a portion of the $4.00 per month Waste Management Fee included in all residential utility bills, or billed annually to those property owners not receiving utility services. Commercial businesses have been required to pay to recycle at the “across-the-scale” rates and many have not participated due to the added expense of separating recyclable materials. This new commercial recycling program is aimed at providing a financial incentive to businesses by making recycling less expensive than landfilling, and less time consuming.

The new fee will be based upon a calendar year to accommodate typical local business financial cycles. It is estimated that the sale of the increased volume of recyclable materials will cover the increased shipping costs resulting from the business participation.

This new business/commercial recycling program has received support from the Friends for Recycling and local businesses including the tour industry.

The Public Works and Facilities Committee passed a motion of support for the ordinance at its April 19, 2007 regular meeting.

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

d. Ordinance 2006-11(AQ)
An Ordinance Appropriating To The Manager’s Office The Sum Of $24,823 As Partial Funding For The Development Of Stormwater Policies, Funding Provided By The United States Fish And Wildlife Service.

Economic Impact Statement

This Ordinance appropriates a $25,000 United States Fish & Wildlife Service grant for the research and writing of a Manual of Best Management Practices (BMP’s) for Storm Water.

The manual will provide the Engineering, Planning, and Public Works Departments with a broader range of strategies to better manage storm water for water quality and flooding. The Municipality of Anchorage has developed a drainage manual that includes these storm water BMP’s to guide land managers and developers as part of NPDES requirements. It is likely that in the coming years Juneau will also be required to develop a comprehensive manual.

This grant requires a match of approximately 18% which will be met using the areawide sales tax to be transferred into the project at the next meeting.

This issue was approved by the Public Works and Facilities Committee at its April 30, 2007 meeting.

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

e. Ordinance 2006-11(AV)
Appropriate $135,000 for the Eaglecrest Mid-Mountain Chairlift CIP, funding provided by contributions raised by Eaglecrest Board of Directors.

Economic Impact Statement

This Ordinance appropriates $135,000 raised in private donations for the Eaglecrest Mid-Mountain Chairlift CIP. The funds are being placed in the Eaglecrest Deferred Maintenance CIP to repay a portion of the $168,000 advanced from this fund to the Eaglecrest Mid-Mountain Chairlift CIP. The $168,000 is being advanced by Transfer T-853 which is included on this agenda. It was necessary to advance the $168,000 to meet the project bidding schedule and take advantage of this construction season.

Eaglecrest staff is continuing to work on raising the additional donations to repay the remaining $33,000 advanced from the Deferred Maintenance CIP. The balance has been pledged, but not received and will be appropriated when collected.

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

f. Ordinance 2006-11(AW)
An Ordinance Appropriating to the Manager the Sum of $800,000 as Partial Funding for the Streets Department’s Fiscal Year 2007 Operating Budget, Funding Provided by the Roaded Service Are
a.

Economic Impact Statement

Mike Scot Memorandum

The Public Works Streets Department is anticipating a $800,000 shortfall in the current fiscal year operating budget due to record snowfalls resulting in dramatically increased costs in personnel, contractual services, fuel usage, equipment repairs, and road chemicals. This shortfall requires a supplement appropriation of $800,000 for fiscal year 2007.

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

2. Resolutions

a. Resolution 2401
A Resolution Creating the Juneau Commission on Sustainability, and Repealing Resolution 2376 Relating to the Juneau Energy Advisory Committee.

This resolution creates a 9-member Commission on Sustainability, the mission of which will be to promote the economic, social, and environmental well-being of Juneau and all its inhabitants, now and into the future. The Commission will gather and disseminate information; promote practical initiatives; and measure, monitor, and report on Juneau’s progress toward sustainability. This resolution also disbands the Juneau Energy Advisory Committee, as the Sustainability Commission’s work will encompass energy issues.

I recommend this resolution be adopted.

3. Transfers

a. Transfer T-853
Transfer $168,000 from Eaglecrest Deferred Maintenance CIP to Eaglecrest Mid-Mountain Chairlift CIP

Economic Impact Statement

This request authorizes the transfer of $168,000 in General Sales Tax funds from the Eaglecrest Deferred Maintenance CIP to the Eaglecrest Mid-Mountain Chairlift CIP.

This request will serve as temporary funding to facilitate bidding the project as soon as possible in order to make the work happen during this summer’s construction season. Eaglecrest management has been raising funds to supplement the CIP and will be requesting an appropriation soon to pay back the funds being borrowed from the Deferred Maintenance CIP.

The Public Works and Facilities Committee heard and approved this request at its April 30, 2007 meeting.

I recommend this transfer be approved.

4. Bid Awards

a. Valley Boulevard Sidewalk
CBJ Contract No. E07-123

Bids were opened on the subject project on May 8, 2007. The bid protest period expires at 4:30 p.m. on May 9, 2007. Results of the bid opening are as follows:

RESPONSIVE BIDDERS TOTAL BID
Low Bidder. Amount
Miller Construction Co. LTD $1,039,475.00
Arete Construction Corporation $1,091,135.00
Engineer's Estimate $817,335.00

Project Manager: Joe Castillo

Project Description:
The work covered in the contract documents generally includes clearing, grubbing, excavation, selected borrow placement, storm drain pipe, storm drain structures, fire hydrants, construction surveying, base course grading D-1, asphalt pavement placement, concrete curb and gutter, asphalt pavement sidewalk, erosion control devices, and miscellaneous related work.

Funding Source: FY06 AW Street Sales Tax, FY06 Water Fund, FY06 Sewer Fund and FY07 AW Street Sales Tax.

Total Project Funds:                  $1,600,000.00
CIP No. 422-19
Construction Encumbrance:   $1,040,000.00
Construction Contingency:      $266,000.00
Consultant Design:                   $84,000.00
Consultant Contract Administration/Inspection: $105,000.00
CBJ Administrative costs:       $105,000.00

Staff recommends award of this project to Miller Construction Co. LTD in the Base Bid amount for a total award of $1,039,475.00.

I recommend award of this project to Miller Construction Co. LTD in the Base Bid amount for a total award of $1,039,475.00.

VIII. PUBLIC HEARING

A. Ordinance 2007-29
An Ordinance Amending the Building Code Provisions Regarding Sprinkler Protection.

This ordinance modifies the existing requirements of Ordinance 19.03.903 of the Building Code by decreasing the maximum area and height of buildings allowed without the installation of sprinkler systems.

Under this ordinance, the threshold before a single story building will be required to have an approved sprinkler system will be reduced from 12,000 square feet to 4,000 square feet. The threshold for a multiple story building will be reduced from 24,000 square feet to 8,000 square feet. The threshold height of a building for requiring a sprinkler system will be reduced from 45 feet to 35 feet.

The Public Works and Facilities Committee forwarded this ordinance for consideration by the Assembly at its meeting on December 11, 2006.

I recommend this ordinance be adopted.

B. Ordinance 2007-30
An Ordinance Authorizing the Manager to Negotiate and Execute a Lease of Approximately Two Acres of City and Borough Land Located in Dimond Park, Within Lakeside Subdivision Tract II, U.S. Survey 4598, to the Juneau Community Foundation, a Nonprofit Corporation, for the Construction and Operation of an Indoor Field House.

The Juneau Community Foundation desires to lease approximately two acres of CBJ land located in Dimond Park for the construction and operation of an indoor field house. The site plan for the facility is shown on the exhibits to the ordinance.

In 2006, the Legislature appropriated a $4 million grant for the Juneau Community Foundation to design and construct an indoor sports facility. After construction, the Foundation will assign the lease to Dimond Park Field House, Inc., a nonprofit group organized to support and provide facilities for youth and adult sports. Dimond Park will operate and maintain the facility, and operations will be supported by user fees. The School District and Parks & Recreation will also utilize the facility for sports programs and classes, for which these agencies will pay a share of the costs for utilities and insurance.

Under the CBJ Code, the Assembly may waive the normal minimum acceptable annual rental rate when leasing to a nonprofit for a public or quasi-public health function. This lease qualifies for a waiver, and the lease rate will be $1.00 per year. Both the Foundation and Dimond Park are nonprofit corporations, and this much needed indoor sports facility will significantly enhance the health and welfare of our community. The waiver is addressed in Section 3 of the ordinance.

The Lands Committee reviewed the project on February 5th and March 19th, and recommended that the Assembly authorize the lease. The Planning Commission approved the conditional use permit for the project at its April 10th meeting, with the condition that construction not begin until after July 5th to accommodate this year’s Gold Rush Days. Parks & Recreation has been in discussions with Gold Rush Days regarding potential future plans.

I recommend this ordinance be adopted.

C. Ordinance 2007-32 (b)
An Ordinance Authorizing Certain Harbor Improvements To Douglas Harbor, Auke Bay Loading Facility And Dehart’s Marina; Authorizing The Sale And Issuance Of Revenue Bonds Of The City And Borough In The Principal Amount Of Not To Exceed $10,620,000, For The Purpose Of Providing Permanent Financing For Said Improvements; And Providing For The Repayment Of Such Bonds Over A Term Of Years; Fixing The Date, Form, Terms, Maturities And Covenants Of The Bonds; Providing A Method Of Payment Therefor; And Reserving The Right To Issue Revenue Bonds On A Parity With The Bonds Upon Compliance With Certain Conditions.

This ordinance will authorize the issuance of $10.62 million in revenue bonds for Harbors. The bond proceeds will be used to fund the following:

 $ 4,200,000 Old Douglas Boat Harbor construction project
 4,200,000 Auke Bay Loading Facility construction project
 1,345,380 DeHart’s Marina note refinancing
 * 720,205 for deposits to the reserve account
 154,415 for issuance costs, accrued interest and rounding
 $10,620,000 total bond issue

*The reserves would be held as additional security and applied to the final debt service payment.

The current estimated all inclusive interest rate for the bonds is 4.67%. The revenue bonds would be issued through the Alaska Bond Bank for a term of 25 years. Annual debt service is estimated at approximately $718,000. The actual amount of annual debt service and the interest rate will be set at closing.

Bond debt service will be repaid from Harbor user fees. The Harbor Department presented a long range plan to fund harbor improvements to the Assembly in 2005. This plan included issuing revenues bonds which would be repaid through the increase in harbor user fees. The CBJ is not pledging the full faith and credit to repay the debt. However, it is important to note that the CBJ is assuming an obligation to protect its property (referred to as a moral obligation) and through a state revenue intercept provision. The revenue intercept provision allows the Alaska Municipal Bond Bank Authority to take any State funds coming to the CBJ if the Harbor defaults on paying the debt.

The Docks and Harbor Board approved this revenue bonding request on December 7, 2006.

I recommend this ordinance be adopted.

D. Ordinance 2006-11(AM)
An Ordinance Transferring The Sum Of $15,000 To The General Fund, Funding Provided By The Juneau International Airport.

Economic Impact Statement

This ordinances transfers $15,000 from the Juneau International Airport back to the General Fund.

On Oct 30th, 2006, the Assembly granted the Airport’s request for $15,000 in assistance to fund an air carrier market analysis, with a transfer from Better Capital City per Ordinance 2006-11(M). It was determined that a market analysis was not needed.

I recommend this ordinance be adopted.

E. Ordinance 2006-11(AR)
An Ordinance Appropriating To The Manager The Sum Of $37,598 As Funding For Storm Damage Repairs, Funding Provided By Alaska Department Of Military And Veteran’s Affairs.

Economic Impact Statement

This action will appropriate $37,598 from the State of Alaska Department of Military and Veteran’s Affairs Disaster Assistance Program as reimbursement for expenses incurred during the 2005 Fall storm. Expenses incurred were for the following work:

• Remove and haul mud, rock and debris from Wickersham roadway and right of way;
• Repair roads, clean culverts and culvert grates, pump water and perform other emergency protective measures city wide; and
• Replace bridge embankments supporting Montana Creek Trail Bridge.

Expenditures initially paid for by:
Streets Department - $17,598
Montana Creek Trail Abutt & Repair Capital Improvement Project - $20,000

I recommend this ordinance be adopted.

F. Ordinance 2006-11(AS)
An Ordinance Appropriating to the Manager the Sum of $731,974 as Partial Funding for the Thunder Mountain High School, Funding Provided by General Obligation Bond Interest Income.

Economic Impact Statement

This ordinance appropriates $731,974 of accrued interest income to be used as partial funding for the Thunder Mountain High School.

The High School Project Team, JSD School Board, and JSD School Facilities Committee agreed to a transfer of monies from Floyd Dryden I and II and JDHS Renovation I and II to Thunder Mountain High School in 2006. CBJ staff has withheld the actual transfer of monies to allow for a complete review and accounting of remaining project items. That process is complete, and CBJ/JSD is now ready to proceed with completing Floyd Dryden I and II and JDHS Renovation I and II and transferring monies to the new high school.

The Public Works and Facilities Committee recommended this appropriation during its March 19, 2007 meeting.

I recommend this ordinance be adopted.

G. Ordinance 2006-11(AT)
An Ordinance Appropriating to the Manager the Sum of $2,400 as Funding for the Purchase of Artworks for the Juneau-Douglas City Museum, Funding Provided by Museums Alaska, Incorporated.

Economic Impact Statement

This ordinance appropriates a $2,400 Museums Alaska, Inc. Art Initiative grant for the purchase of artworks for the Juneau-Douglas City Museum’s permanent collection.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Liquor Licenses

2007-2008 Renewals:
Lic. # Name Location Owner Type

2844 Sandbar,
The 2525 Industrial Blvd Sandbar Inc Beverage Dispensary

2533 Viking Restaurant & Lounge
216 Front Street Jack D and Arlene D Tripp Beverage Dispensary

3956 Barcar's
230 Seward Street Barry & Carlene Shaw Restaurant/Eating Place

1384 Jovany's Italian Restaurant
9121 Glacier Hwy Alfonso O & Nenita S Soriano Restaurant/Eating Place

4584 Zephyr
200 Seward St Zephyr LLC Restaurant/Eating Place

1081 Squires Rest
11806 Glacier Hwy Squires Rest LLC Beverage Dispensary

4034 Loyal Order of Moose #700
8335 Airport Blvd Juneau Moose Lodge #700 Club

816 El Sombrero Mexican & American Food
157 S Franklin St El Sombrero Inc Restaurant/Eating Place

313 Prospector Hotel/TK Maguires
375 Whittier Street Juneau Hospitality Beverage Dispensary-Tourism
AS 04.11.400(d)

4543 Breeze-In
5730 Concrete Way Breeze In Corporation Package Store

2728 G. W. Teal
9105 Mendenhall Mall Rd Los Arcos Inc Beverage Dispensary

644 Marlintini's Lounge
9121 Glacier Hwy 2nd Floor BCM Inc Beverage Dispensary

3720 Timberline Bar & Grill
1800 Foot Level Mt Roberts Tramway Ltd Partnership Beverage Dispensary-Seasonal

355 BPO Elks Lodge #420
109 S Franklin St BPO Elks Lodge #420 Club

176 Breeze-In Liquor
8 Mile Old Glacier Hwy [2200 Trout Street] Allan Ahlgren & Michael Corcoran Package Store

3352 Costco Wholesale #107
5225 Commecial Way Costco Wholesale Corporation Package Store

300 DeHarts
11735 Glacier Hwy Lilypen Enterprises LLC Package Store

662 Douglas Island Breeze-In
3370 Douglas Hwy Breeze In Corporation Package Store

828 Papadrew's
11957 Glacier Hwy Papadrew Inc Package Store

3409 Gold Creek Salmon Bake
1061 Salmon Creek Lane Alaska Travel Adventures Inc Recreational Site-Seasonal

188 Bullwinkle's Pizza
318 Willoughby Ave Bullwinkle's Inc Restaurant/Eating Place

2185 Canton House
8585 Old Dairy Rd Ri D Kuag Restaurant/Eating Place

2641 F&M Oriental Express Restaurant
210 Seward St Fernando & Marissa Abad Restaurant/Eating Place

2175 Silverbow Inn,
The 120 Second Street Jilneth LLC Restaurant/Eating Place

1915 Thane Ore House
4400 Thane Road George Jefferson Restaurant/Eating Place

3568 Alaska Distributors Company
2266 Industrial Blvd Alaska Distributors Company Wholesale-Malt Beverage & Wine

4081 K & L Distributors
8420 Airport Blvd K & L Distributors Inc Wholesale-Malt Beverage & Wine

4080 K&L Beverage Company LLC
8420 Airport Blvd K & L Beverage Co LLC Wholesale-Malt Beverage & Wine

The above listed liquor licenses are before the Assembly to either protest or waive its right to protest the two-year renewal of these licenses.

The Finance, Police, Fire, and Community Development Departments have reviewed the above businesses for compliance with CBJ Code. The Human Resources Committee met earlier this evening, Monday, May 14, 2007, and will report on their action.

I recommend the Assembly adopt the Human Resources Committee's recommendations for action from tonight’s meeting.

B. Regulations
Dogs and Domesticated Animals in CBJ Parks and Recreation Areas

A Public Meeting was held September 20, 2006 to take public comment to propose an amendment to CBJ Administrative Code, Title 11: Parks & Recreation, Chapter 3: Dogs & Domesticated Animals in CBJ Parks & Recreation Areas. Additional Public Comment was solicited from March 27, 2007 through April 20, 2007. The proposed amended regulations have been posted and the public comment period closed. The Parks & Recreation Department received 15 written and 4 comments. Comments were considered by the Dog Task Force Committee and final recommendations were made.

The proposed changes include: 11 CBJAC 03.020 (g) Auke Lake Trail-is an on leash at all times trail. Auke Lake Trail was formerly a “No Dog Area”; two new additions: 11 CBJAC 03.030 No Dog Areas. Add: (a) CBJ parkland Jensen/Olson Arboretum-Tract 3, USS 1466 and USS 2516; and (d) Any artificial turf field.

If the Assembly has no objections to these regulations, no action is required. Unless the Assembly directs otherwise, the Parks & Recreation Department will issue the regulations to be effective seven days after filing with the Clerk.

I recommend no action.

C. Additional Funds for Engineering Design Services For the Auke Bay Commercial Loading Facility

The Docks and Harbors Board approved changes to the design of the Auke Bay Loading Facility at its March 29, 2007 meeting. The revised scope has increased the cost of construction and associated design. As a result, PND Engineers requires an additional $175,093 in funds for completion of the permitting and design of the Auke Bay Loading Facility.

The Docks and Harbors Board approved this request for additional funds for engineering design services at its April 26, 2007 meeting.

CBJ Ordinance 85.02.060(7)(c) requires that all contracts and purchases exceeding $100,000.00 requires prior assembly approval.

I recommend approval.

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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