ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, June 23, 2008, 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2008-20

 

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

A. Employee Recognition

IV. APPROVAL OF MINUTES

A. June 2, 2008 – Regular Meeting 2008-18
B. June 18, 2008 – Special Meeting 2008-19

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 2008-21
An Ordinance Establishing The Sustainability Fund.

This ordinance, prepared at the request of the Mayor and Assemblymember Stone, would create a fund within the CBJ general fund to receive donations for the purpose of meeting Juneau’s sustainability needs. This ordinance declares the intent of the Assembly that these funds be tracked separately and be available for appropriation by the Assembly for sustainability projects.

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


2. Resolutions

a. Resolution 2447 - Red Folder Item
A Resolution Of The Assembly Of The City And Borough Of Juneau, Alaska, Fixing The Final Principal Amounts And Interest Rates Of The General Obligation School Bonds, 2008A And General Obligation School Bonds, 2008B (Taxable) Authorized By Ordinance Serial No. 2008-16(B) And Accepting Bids For The Purchase Of Each Series Of Said Bonds.

This resolution accepts the competitive bids for the sale of $39.5 million in General Obligation School Bonds. The bonds consist of $17.1 million ($5 million for 10 years and $12.1 million for 15 years) approved by the voters on June 12, 2007 for the Thunder Mountain High School and $22.4 million (10 years) approved by the voters on October 2, 2007 for the Glacier Valley and Harborview Elementary Schools.

These projects 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 estimated total cost of the debt service, including interest at an average rate of 4.6% for the 10-year bonds and 4.8% for the 15-year bonds, is $52.01 million. The City should receive $36.4 million in reimbursement from the State assuming full state funding, leaving $15.61 million to be paid from local tax levies. We are anticipating that approximately $4.68 million of this amount will be paid from previously collected sales taxes. This will leave $10.96 million to be paid from property taxes. The maximum estimated property tax mill levy needed to fund the local share, assuming full state funding, will be 0.27 mills or $27 per $100,000 in assessed value.

Bids will be accepted on June 23, 2008. The actual resolution for action will be distributed as a red-folder item at the meeting.

I recommend this resolution be adopted.

3. Transfers

a. T-881

Impact of Budget Action

This request would authorize the transfer of $2,733 in Temporary Sales Tax funds from the Glacier Valley Sports Field Improvements Project to two Capital Improvement Projects (CIPs) as follows:

1) $93 to the Auke Lake Wayside Master Plan to close out the project; and
2) $2,640 to the Auke Lake Trail ADA Upgrade for expenditures through June 30, 2008. Additional funding for this project will become available July 1, 2008.

I recommend this transfer be approved.

4. Bid Awards

a. Bid E08-163 – North Douglas Sewer – Phase II, Area D, LID 95

Bids were opened on June 17, 2008. The bid protest period expired at 4:30 p.m. on June 18, 2008.

The work includes constructing a new sanitary sewer collection system along North Douglas Highway, including trench excavation, placement of gravity sewer main and sewer services, six bored encasements crossing underneath the roadway, core drilling holes through the concrete abutments of Kowee Creek Bridge for pipe penetrations and attachment of the sewer pipe to the underside of the bridge structure, new sewer pipe connection to the existing West Juneau Lift Station near the Juneau-Douglas Bridge, and miscellaneous work.

I recommend award of this project to Admiralty Construction, Inc., in the amount bid, for a total award of $1,547,356.

VIII. PUBLIC HEARING

A. Ordinance 2008-19
An Ordinance Adopting The Revised Juneau Coastal Management Pla
n.

Online Link for Juneau Coastal Management Plan

Memorandum

The State of Alaska requires approval of the Juneau Coastal Management Plan (JCMP) by ordinance for formal acceptance as part of the Alaska Coastal Management Program (ACMP). This ordinance would result in approval of the final revised JCMP, which includes the revised policies and maps of the Juneau Wetlands Management Plan (JWMP).

The final revised JCMP includes 5 coastal management policies that address Waterfront Development Areas in Volume One, and 11 wetland policies in Volume Two, the JCMP JWMP. The former JCMP had 99 policies. These 16 remaining policies are modified versions of the policies currently in the CBJ Land Use Code. No new habitat policies or special habitat areas have been added to the plan. In accordance with direction of the Assembly and Planning Commission, all policies of the former JCMP, which have not been accepted by the State, have been retained in the CBJ Code. This revision only addresses which policies we may utilize in our comments to the state for Alaska Coastal Management Program project reviews. Any changes to the program at this stage would
require sending the program back to both state and federal resource agencies for new review and approval.

After conducting a public hearing on April 22, 2008, the Planning Commission passed a motion recommending approval of an ordinance adopting the revised Juneau Coastal Management Plan.

I recommend this ordinance be adopted.

B. Ordinance 2007-21(BE)(b)
An Ordinance Appropriating To The Manager The Sum Of $1,896,540 As Partial Funding For Fiscal Year 2008 Unanticipated Electricity And Fuel Cost Increases, Funding Provided By The Department Fund Balances, General Fund Balance, User Fees, The Fire Service Area Fund Balance And The Roaded Service Area Fund Balance.

This ordinance would appropriate $1,896,540 for increases in electricity and fuel costs among several CBJ departments. This amount has been adjusted to reflect our best estimate of the new Cost of Power Adjustment (COPA). Funding is provided by departmental fund balances, the general fund balance, user fees, and the fire service area and roaded service area fund balances.

This ordinance has been decreased by $323,300 based on the new COPA rate of $.035 per KWH that was released by AEL&P on June 12, 2008.

The Assembly Finance Committee reviewed and approved increases at its meeting on May 16, 2008.

I recommend this ordinance be adopted.

C. Ordinance 2007-21(BF)
An Ordinance Appropriating to the Manager the Sum of $2,732,300 as Partial Funding for Various Departments’ Fiscal Year 2008 Operating Budget, Funding Provided by the Department Fund Balances, User Fees, and the Roaded Service Area Fund Balance.

This ordinance would appropriate $2,732,300 for increases in FY08 operational costs among several CBJ departments/divisions. Funding is provided by departmental fund balances, the general fund balance, user fees and the fire service area and roaded service area fund balances.

Streets
The Streets Division is anticipating a $352,000 shortfall in the current fiscal year operating budget due to increase unusually cold, wet weather and above average snowfalls resulting in increased costs in personnel, contractual services, fuel usage, equipment repairs, and road chemicals. Also, the addition of new infrastructure such as roads, sidewalks, streetlights, and storm drains continue to increase Streets operational costs. The funding source for this shortfall is the Roaded Service Area Fund Balance.

Eaglecrest
Eaglecrest is anticipating a $6,900 shortfall in the current fiscal year operating budget. Revenue received was $72,200 over the amount budgeted, which will be used to fund this shortfall.

Bartlett Regional Hospital
The Bartlett Regional Hospital current year operating budget requires an increase in spending authority of $2,101,100 for personnel services due to wage increases and recruitment expenses. This increase will be funded with user fees.

Airport
The Airport anticipates exceeding its budgeted FY08 spending authority by $81,800. Expense increases are due to an increase in the cost of de-icing chemical prices. This shortfall will be covered using the Airport Fund balance.

Docks and Harbors
The Docks and Harbors Department is anticipating a $96,800 shortfall in the current fiscal year operating budget due to unbudgeted overtime related to staff turnover, snow removal costs, and increased costs of materials and commodities. This increase will be funded with user fees.

Fleet
The Fleet Division is anticipating a $93,700 shortfall in the current fiscal year operating budget due to increased costs to repair and maintain existing equipment. The anticipated funding for this shortfall is the Roaded Service Area Fund Balance.

The Assembly Finance Committee reviewed and approved these increases at its meeting on May 28, 2008.

I recommend this ordinance be adopted.

D. Ordinance 2007-21(BG)
An Ordinance Transferring $542,918 To The Marine Passenger Fee And Downtown Parking Funds, The Source Being Unexpended Marine Passenger Fees And Downtown Parking Funds Budgeted To 11 Completed Capital Improvement Projects
.

Economic Impact Note

This ordinance would transfer $540,151 of unexpended Marine Passenger Fees Fund (MPF) and $2,767 of unexpended Downtown Parking Fund monies that were budgeted to 11 Capital Improvement Projects.

Marine Passenger Fees:

CIP H354-75 Gold Creek Entrance Enhancement $ 72,167
CIP H354-76 Upgrade National Guard Dock 13,201
CIP H354-78 N Douglas Ramp/Access Improv. 112
CIP H354-86 Accessible Gangway 100,000
CIP H354-88 Steamship Wharf Lightering Facility 60,000
CIP H354-90 Port Security Improvements 93,011
CIP R422-23 Archipelago Sidewalk Property 141,868
CIP D375-04 Wayfinding Signage Plan 15,984
CIP D374-80 Construct JCVB Visitor Center 41,030
CIP P396-39 Commercial Trail Planning/Dev. 2,778
540,151

These projects are complete, and this ordinance would transfer the unexpended balances from the projects back to the Marine Passenger Fee Fund.

Downtown Parking Fund

CIP P396-51 Downtown Parking Major Maint. 2,767

This project is complete. This ordinance would transfer the unexpended fund balance back to the Downtown Parking Fund.

I recommend this ordinance be adopted.


E. Ordinance 2007-21(BI)
An Ordinance Appropriating To The Manager The Sum Of $1,020,280 As Partial Funding For The Renovation Of Harborview Elementary School, Funding Provided By General Obligation School Bond Interest Income.

Economic Impact Note

This ordinance would appropriate $1,020,280 of General Obligation School Bond interest income for the use of the Harborview School Renovation Capital Improvement Project (CIP).

This appropriation request will make available the accumulated bond interest ($20,280) in the Harborview Plumbing CIP and $1 million of the accumulated bond interest from the District Wide Major Maintenance Fund for the use of the Harborview Renovation CIP.

This appropriation is in addition to the $1,300,000 in bond proceed funds transferred from the Districtwide Major Maintenance Fund approved by Transfer T-880 at the May 27, 2008 Assembly meeting.

The base bid from McGraw Custom Construction exceeded the original estimate by $1,264,421.

The Juneau School Board recommended this appropriation at its May 20, 2008 meeting.

I recommend this ordinance be adopted.

F. Ordinance 2007-21(BJ)
An Ordinance Appropriating To The Manager The Sum Of $1,300,000 As Partial Funding For The Douglas Island FAA Monitoring Station Electrical Service Extension Capital Improvement Project, Grant Funding Provided By The Alaska Department Of Commerce, Community And Economic Development.

Economic Impact Note

This ordinance would appropriate a $1,300,000 grant from the Alaska Department of Commerce, Community and Economic Development (DCCED) for the Douglas Island Federal Aviation Administration (FAA) Monitoring Station Electrical Service Extension capital improvement project.

The CBJ maintains power to a weather monitoring station at the top of Eaglecrest Ski Area. These funds will be used to establish a reliable power source and transmission line to the monitoring station, as well as provide reliable access to the transmission line for repairs and maintenance.

Work began on this project with an earlier grant of $1,400,000 from DCCED.

I recommend this ordinance be adopted.

G. Ordinance 2007-22(A)
An Ordinance Appropriating To The School District The Sum Of $758,500 As Partial Funding For The District’s General Operations And $139,900 As Partial Funding For The District’s Special Revenue Operations And De-Appropriating State Foundation Funding And CBJ Support For School District General Operations, Funding Provided By The School District General Operations, Special Revenue Funds User Fees, State And Federal Grants, And Other.

This ordinance would make the following FY08 School District budget changes:
General Operations $ 758,500
Special Revenue 139,900
Total Budget Changes $ 898,400

Funding for the changes is provided from the following:
School District General Operations Fund Balance Usage $ 152,500
State Foundation Funding (129,000)
State Grants 664,700
Federal Grants 83,000
User Fees 38,000
CBJ Support To School District General Operations (29,700)
Support From Other Funds 118,900
Funding Sources for Changes $ 898,400

These adjustments are requested by the School District due to student enrollment falling short of projections, which reduces both the State Foundation Funding and CBJ allowable support to Education for operations, and to a net increase in State and Federal grants. The School District General Operations Fund fund balance replaces the majority of State Foundation funding and CBJ support for District general operations. In addition, State and Federal grant monies and user fees were received beyond the FY08 Assembly Adopted Budget.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. 1% Art Selection – Airport

Art Posting          Board Approval Memorandum           Mannix Memorandum

The Art Panel met on May 13, 2008 and reviewed 17 proposals from 9 artists. The panel recommends that the hanging sculpture concept presented by Criswell & Henrickson be accepted. In your packet is a memorandum depicting an example of the proposed artwork. The following description is from the artists’ proposal:

“The inspiration for this commissioned sculpture comes from the waves of migratory birds that transit through the Mendenhall Wetlands, adjacent to the airport. The sculpture would consist of several dozen metal birds (shorebirds, ducks, geese, and swans) hanging from the high ceiling near the car rental, visitor gathering area, lobby, and stair. Each bird would be rendered in traditional “formline” art style of the local Tlingit Indians. The designs would be cut out of sheet aluminum, copper, and/or other metals using water jet… The birds will hang from steel aircraft cable tied into fasteners set into the ceiling structure.”

The Art Panel asked that the artists work with the architects and members of the Art Panel to refine the concept so that it integrates with the architecture in the new two-story area of the expanded baggage claim space. The cost of the art is approximately $100,000. CBJ 62.65.040 stipulates that all art selected by the Panel is subject to final approval by the Assembly.

B. Regulation – Docks and Harbors - Change to Speed Limit Boundary

Chart               Aerial Photo                     Markup Version                    Final Version

This regulation amends CBJ’s speed limit regulation for marine vessels in Juneau Harbor. The amendment was requested by the Alaska Canopy Adventures. They transport passengers from the Intermediate Vessel Float downtown to the Zipline Tour on Douglas Island. The operator requested that the Docks and Harbors Board eliminate the speed limit zone in front of Douglas Harbor and move the Juneau Harbor boundary closer to the mainland shore. The Board declined to eliminate the Douglas Harbor limit until a breakwater is built, but agreed to move the Juneau harbor limit closer to shore.

The Docks and Harbors Board proposed the regulation for public comment on May 1 and adopted the regulation at its May 29 regular meeting. There were no public comments on the regulation.

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

CBJ 01.60.260 provides the Assembly with three courses of action:

1. The Assembly may take up consideration of the regulation and approve it;
2. The Assembly may chose not to take up consideration of the regulation in which case the regulation shall be deemed approved; or
3. The Assembly may disapprove the regulation. If the Assembly disapproves the regulation, it shall return the regulation to the Docks and Harbors Board or direct the regulation be considered as an ordinance or resolution.

If the Assembly returns the regulation, it may state the reasons for disapproval but shall not establish explicit conditions for subsequent approval or direct particular amendment to the regulation.

C. Export Manufacturing

Applications                                 Export Manufacturing Memorandum

CBJ 69.10.020(10) includes provisions for exempting qualifying manufacturing property from assessment and taxation. Qualifying property will receive a declining five-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 three property manufacturing exemption requests for the 2007 tax year (FY08 budget year).

1. Alaska Glacier Seafood, Inc., filed a manufacturing exemption for machinery, equipment, and vehicles totaling $425,390.95 ($4,411.30 in property tax).

In addition, Alaska Glacier Seafood, Inc., has $295,659.78 in property qualifying from prior years, for a total 2008 assessment exemption of $721,050.73 or $7,477.30 in property taxes.

The Assessor’s Office has determined that the property being requested for exemption meet the code requirements. The Assessor’s Office recommends approval of this exemption request.

2. Taku Smokeries filed a manufacturing exemption for machinery and equipment, furniture and fixtures, and a vehicle totaling $47,950.00 ($497.24 in property tax).

In addition, Taku Smokeries has $104,185.00 in property qualifying from prior years for a total 2008 assessment exemption of $152,135.00 or $1,577.64 in property taxes.

The Assessor’s Office has determined that the property being requested for exemption meets the code requirements. The Assessor’s Office is recommends approval of this exemption request.

3. Alaskan Brewing Company (AKBEV, LLC) filed a manufacturing exemption for machinery and equipment and vehicles totaling $407,666.00 ($4,227.50 in property tax).

In addition, AKBEV LLC, has $654,505.90 in property qualifying from prior years for a total 2008 assessment exemption of $1,062,171.90 or $11,014.72 in property taxes.

The Assessor’s Office has determined that the property being requested for exemption meets the code requirements. The Assessor’s Office recommends approval of this exemption request.

XI. STAFF REPORTS

A. Energy Loans/Grants Update
B. DZ Covered Play Area
C. Solid Waste Program Update

XII. ASSEMBLY REPORTS

A. Mayor’s Report
B. Committee Reports
C. Liaison Reports
D. Presiding Officer Reports
     1. Corrigan-Pusich vs. CBJ Board of Adjustment - Adoption of Draft Decision

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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