ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, December 08, 2008, 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2008-36


I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

     A. Employee Recognition
          1. Kristi West
          2. Ben Lyman

B. Governor’s Arts Award Recipients – Cristine Crooks, Dan DeRoux

IV. APPROVAL OF MINUTES

A. November 17, 2008 – Regular Meeting 2008-34
B. November 25, 2008 – Special Assembly Meeting 2008-35

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 2008-37
An Ordinance Authorizing The Manager To Execute A Lease Of The Mayflower Building And Grounds To The Juneau Montessori Center, Inc., To Include Expansion Of The Playground And Use Of The Adjoining CBJ Parking Lot.

Exhibit A - Map

The Juneau Montessori School, a nonprofit organization, has submitted a proposal for an outdoor classroom extension and playground expansion at the Mayflower Building location. The on-site parking area, within the lease boundary, would be redeveloped as an expanded playground and learning area. Parking and drop-off circulation would be accommodated in the adjacent CBJ parking lot. The PRAC reviewed the proposed request and determined that the subject parking lot is under utilized during weekday hours and use would not conflict with Savikko park operations.

At the October 27, 2008 meeting the Lands Committee passed a motion of support for an ordinance that: 1) finds that the playground expansion and use of the adjoining CBJ parking lot is substantially equivalent to the current situation, continuing the preference privelege; 2) authorizes the manager to execute a lease of the Mayflower Building, incorporating the conditions and terms of Ordinance 99-23am, and current content and form requirements; and 3) maintains the current rental rate of $2,000 per month with provision for adjustment.

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

b. Ordinance 2008-38
An Ordinance Amending The Sales Tax Code To Exempt Transactions Between Related-Party Businesses.

This ordinance would exempt retail sales, rentals of real and tangible personal property, and services between entities having identical legal composition from sales tax. Identical legal composition is defined as:

• Entities that are owned by the same persons and each of which own at least five percent,
• Entities that are owned by the same persons in the same percentage,
• A wholly-owned subsidiary or a parent corporation, or
• A trust where the beneficiaries are the same.

The Finance Department lacks sufficient information at this time to determine the fiscal impact of expanding this exemption. The current related-party exemption, which includes only real property eases, exempts approximately $212,000 per year in lease payments.

The Assembly Finance Committee, at its meeting on November 19, 2008, recommended that this ordinance be forwarded to the Assembly for introduction.

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

c. Ordinance 2008-39
An Ordinance Amending The Purchasing Code Definitions Of “Bidder With Disabilities,” And “Juneau Bidder And Juneau Proposer.”

Law Memo

The Purchasing Code allows for a 5% local bidder preference for bids and proposals, and a 10% bidder with disabilities preference, not including bids for capital construction projects. To qualify for the preference, the bidder or proposer must meet the requirements set out in the definitions of Juneau bidder, Juneau proposer, and bidder with disabilities. A recent RFP protest over whether a proposer qualified as a Juneau proposer as defined in the code highlighted the need to update and improve these definitions. As a result, staff is recommending that the definitions be amended to be made more specific on the tax compliance requirements, and to be consistent with current operating practices. Ordinance 2008-39 would accomplish these goals and make the bidder preferences easier for both bidders and CBJ staff to understand and administer. A memo in your packet from the Law Department explains the amendments in more detail.

The Assembly Finance Committee, at its meeting on November 19, 2008, recommended this ordinance be forwarded to the Assembly for introduction.

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

d. Ordinance 2008-40
An Ordinance Amending The Sales Tax Code To Exempt Federally Recognized Tribes From Sales Tax With The Exception Of The Sales Of Pull-Tab Games.

Law Memo                            TH Memo                              IRS Memo

The Central Council of Tlingit-Haida Indian Tribes of Alaska (CCTHITA) has requested to be exempted from paying sales tax due to its status as a federally recognized Indian tribe. Section 69.05.040(13) of the Sales Tax Code exempts the state, municipalities, and Rural Education Attendance Areas from sales tax, with the exception of the sales of pull-tab games by municipalities. Ordinance 2008-40 would amend exemption (13) to include federally recognized tribes as exempt, with the exception of sales of pull-tab games. This change would treat tribes the same as the state and municipalities for sales tax purposes. It would also be consistent with how the federal government treats tribes, including CCHITA, for purposes of income tax. Under the Internal Revenue Code, tribal governments are treated like states and local governments for income tax purposes and are not subject to federal income tax. The reasoning for that treatment applies here as well: tribal governments, like state and local governments, provide much needed services to the public within their jurisdiction and should be permitted to devote their limited resources to that end. A memo in your packet from the Law Department discusses this ordinance in more detail.

The Assembly Finance Committee, at its meeting on November 19, 2008, recommended this ordinance be forwarded to the Assembly for introduction.

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

e. Ordinance 2008-15(AI)

An Ordinance Appropriating To The Manager The Sum Of $1,342,351 As Funding For The North Douglas Sewer Capital Improvement Project, Grant Funding Provided By Alaska Department of Environmental Conservation Municipal Matching Grant.

Economic Impact Note

This ordinance would appropriate $1,342,351 for the North Douglas Sewer Capital Improvement Program (CIP), funding provided by an Alaska Department of Environmental Conservation Municipal Matching Grant.

This grant provides important funding for the continued expansion of CBJ’s wastewater collection infrastructure. The North Douglas Sewer CIP currently has two phases under construction and a third phase approaching the 95% design phase.

The Public Works and Facilities Committee recommended this action at its November 10, 2008 noon meeting.

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

f. Ordinance 2008-15(AJ)
An Ordinance Appropriating To The Manager The Sum Of $1,196,755 As Funding For The West Mendenhall Valley Sewer Expansion Capital Improvement Project, Grant Funding Provided By Alaska Department of Environmental Conservation Municipal Matching Grant.

Economic Impact Note

This ordinance would appropriate $1,196,755 for the West Mendenhall Valley Sewer Expansion Capital Improvement Program (CIP), funding provided by an Alaska Department of Environmental Conservation Municipal Matching Grant.

This grant provides important funding for continued expansion of CBJ’s wastewater collection infrastructure. Construction is in progress on the trunk line on the West Mendenhall Valley Sewer expansion. The survey is in progress on the Pedersen Hill phase of this project, and these funds will be placed in that CIP.

The Public Works and Facilities Committee recommended approval of this request at their November 10, 2008 meeting.

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

g. Ordinance 2008-15(AK)
An Ordinance Appropriating To The Manager The Sum Of $1,000,000 As Partial Funding For The Replacement Of The City And Borough Of Juneau’s Core Financial System, Funding Provided By Lease Proceeds.

Economic Impact Note

This ordinance would provide an additional $1 million in funding for the core software replacement CIP, PRISM (Providing Reliable Information Systems
Management) project. The seven-year lease for the additional $1 million will result in annual lease payments of approximately $170,000. The actual interest cost and total lease amount will be determined at the time of leasing.

This funding recommendation was reviewed and approved by the Assembly Finance Committee at its November 19, 2008 meeting.

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

2. Resolutions

a. Resolution 2457
A Resolution Adopting An Alternative Allocation Method For The Fiscal Year 2009 Shared Fisheries Business Tax Program.

This resolution would authorize the acceptance of CBJ’s share of the FY 2009 State Shared Fisheries Business Tax. This distribution represents the sharing of state fishery revenues generated in the Northern Southeast Fisheries Management Area (NSFMA), but outside of the organized communities. The funds will be allocated to each community in the NSFMA (Angoon, Gustavus, Haines Borough, Hoonah, Skagway, Tenakee Springs and Juneau) based on an agreed upon allocation method, as approved by the State of Alaska’s Department of Commerce, Community and Economic Development. It is anticipated that the CBJ will receive approximately $16,850 in FY 2009 from this State shared revenue program.

I recommend this resolution be adopted.

3. Transfers

a. Transfer T-889
Transferring $25,000 From The Waterfront Seawalk Capital Improvement Project (CIP) To A New CIP For Preliminary Land Planning, Funds Provided by Marine Passenger Fees.

Impact of Budget Action

In the Long Range Waterfront Plan, the property under the Juneau-Douglas Bridge is shown as the site of a possible park and the commencement of the Seawalk. A wide variety of other uses are possible. This CIP includes surveying the property, identifying a Seawalk easement, possible upland uses for the property, and cost estimates.

The Public Works and Facilities Committee recommended this action at its October 27, 2008 meeting.

I recommend this transfer be approved.

VIII. PUBLIC HEARING

A. Ordinance 2008-35
An Ordinance Authorizing A Loan In An Amount Not To Exceed $8,183,000.00 From The Central Treasury To The Airport Fund For The Purpose Of Providing Interim Financing For The Airport Terminal Expansion And Renovation Project.

This ordinance would allow the Airport to borrow up to $8,183,000 from the Central Treasury for the Airport Terminal Expansion and Renovation Project. The project is scheduled to run for approximately 30 months. Project cash disbursements will occur over time, and the actual loan amount will be determined based on the cash flow needs of the project.

(a) The Airport has projected that the actual amount of the loan will likely not exceed $5.7 million. These loans will occur in FY10 ($4.7 million) and FY11 ($1 million). The loans would include interest estimated by the Finance Director at the average rate the CBJ earned or would earn on Central Treasury investments over the applicable loan period. The principal and interest on the balance would be repaid to the Central Treasury from future 1% temporary sales taxes and Passenger Facility Charges revenues allocated and appropriated to the project.

The Airport Board approved this action at its November 12, 2008 meeting. The Assembly Finance Committee recommended this action at its November 19, 2008 meeting.

As this is a policy decision, I have no recommendation.

B. Ordinance 2008-15(X)
An Ordinance Appropriating To The Manager The Sum Of $170,900 As Funding For The Fiscal Year 2007, Fiscal Year 2008 And Projected Fiscal Year 2009 Shortfall In The Permanent Principal Balance Of The Jensen-Olson Arboretum Endowment Fund, And De-Appropriating $72,000 In Funding From The Jensen-Olson Arboretum Endowment Fund, Funding Provided By The General Fund Balance.

Economic Impact Note

This ordinance would appropriate $170,900 as a transfer from the General Fund to cover the fiscal year 2007, fiscal year 2008, and projected fiscal year 2009 shortfall in the permanent principal balance of the Jensen-Olson Arboretum Endowment Fund. The shortfall in the principal balance resulted from the following:

• In 2007, major maintenance work on the arboretum was required. At the time, it was not clear whether the principal balance of the Endowment Fund could be used for this type of maintenance. The major maintenance costs exceeded the interest earnings of the fund by $10,400. It was later determined by CBJ’s Law Department that the principal balance could not be used for these costs; therefore, it is necessary to return this amount to the principal balance.

• In 2008, the fund did not earn interest due to the market conditions at yearend. The total operating costs exceeded the income of the fund by $88,500. Again, to comply with the terms of the Endowment, it is necessary that the fund be repaid.

• In 2009, current projections indicate that there will be no interest earnings available to make the contribution necessary to cover expenditures. The estimated amount required is $72,000. Again, to comply with the terms of the Endowment, it is necessary that the fund be repaid.

The earnings from the Endowment Fund are used to support the operations of the Arboretum. The proceeds of the Endowment fund are invested in a separate portfolio from our operating funds and it includes some equity investments. We anticipate that over the long-term the investments in this portfolio will be able repay these amounts as markets rebound. As such, the funding provided by this ordinance is considered a loan from the General Fund that will be paid back as earnings permit.

I recommend this ordinance be adopted.

C. Ordinance 2008-15(Z)
An Ordinance Appropriating To The Manager The Sum Of $311,584 As Funding For The Metropolitan Medical Response System, Grant Funding Provided By The State Of Alaska, Department Of Military And Veterans Affairs.

Economic Impact Note

This ordinance would appropriate $311,584 from the 2008 Metropolitan Medical Response System (MMRS) Grant Program. This grant is provided by the Alaska Department of Military and Veterans Affairs.

This funding will be used for planning, training, and equipment purchases for the MMRS program in Southeast Alaska. These funds will be spent among the various Southeast communities active in the program.

I recommend this ordinance be adopted.

D. Ordinance 2008-15(AA)
An Ordinance Appropriating To The Manager The Sum Of $80,000 As Funding For Emergency Operations Planning And Notification System, Grant Funding Provided By The State Of Alaska, Department Of Military And Veterans Affairs.

Economic Impact Note

This ordinance would appropriate $80,000 from the 2008 State Homeland Security Grant Program. This grant is provided by the Alaska Department of Military and Veterans Affairs.

Approximately $70,000 will be used to purchase and install the software and hardware for a system that will provide outbound calling to citizens during an emergency. The remaining $10,000 will be used to contract for revisions to the CBJ Emergency Operations Plan.

I recommend this ordinance be adopted.

E. Ordinance 2008-15(AD)
An Ordinance Appropriating To The Manager The Sum Of $513,000 As Partial Funding For The Airport Terminal Renovation Project, Funding Provided By An Alaska Energy Authority Grant.

Letter

Economic Impact Note

This ordinance would appropriate $513,000 to the Airport Passenger Terminal Renovation Capital Improvement Program (CIP), funding provided by an Alaska Energy Authority grant.

This grant was awarded to assist in the installation of a ground source heat system. It has been determined that this alternative energy source will save a considerable amount of Airport operating costs.

The Airport Board approved this request at its October 8, 2008 meeting and the Public Works and Facilities Committee approved this request at its October 13, 2008 meeting.

I recommend this ordinance be adopted.

F. Ordinance 2008-15(AH)
An Ordinance Appropriating to the Manager the Sum of $446,918 as Funding for The Jordan Creek Sediment Analysis Capital Improvement Project, Grant Funding Provided by an Alaska Department of Environmental Conservation Municipal Grant.

Economic Impact Note

This ordinance would appropriate $446,918 to the Jordan Creek Sediment Analysis Capital Improvement Project (CIP), funding provided by an Alaska Department of Environmental Conservation municipal matching grant.

This grant was awarded to assist in the construction of sediment traps along the tributary by the East Valley Reservoir tank and to realign the channel of Jordan Creek by Jennifer Drive. The Assembly approved $405,000 from the water fund this summer to provide CBJ’s matching funds for this grant. This project is planned for the 2009 construction season.

The Public Works and Facilities Committee approved this request at its October 27, 2008 meeting.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Liquor License

1) Recreational Site Renewal of License #4700
Owner: Alaska Zipline Adventures, LLC d/b/a Alaska Zipline Adventures
Location: 3000 Fish Creek Road, Juneau, AK 99801

The above listed liquor license action is before the Assembly to either protest or waive its right to protest the renewal of this license.

The Finance, Police, Fire, and Community Development Departments have reviewed this business for compliance with CBJ Code and have no issues with the renewal of this license.

Typically, the Human Resources Committee reviews liquor license matters. The HRC meeting of this evening, Monday, December 8, 2008 was cancelled, and this matter is directly before the Assembly for action.

Based on staff review, I recommend the Assembly waive the right to protest the renewal of Recreational Site License #4700 for Alaska Zipline Adventures.

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

A. Lobbyist Contracts

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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