ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, January 12, 2009, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2009-01

 

Submitted by:  Rod Swope, City and Borough Manager

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

IV. APPROVAL OF MINUTES

A. December 19, 2008 – Regular Meeting 2008-37

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 2009-02
An Ordinance Amending Ordinance 2008-35 To Increase The Amount Authorized For A Loan From The Central Treasury To The Airport Fund By $1,000,000.00, For A Total Loan Amount Not To Exceed $9,183,000.00, For The Purpose Of Providing Interim Financing For The Airport Terminal Expansion And Renovation Project.

This ordinance would allow the Airport to borrow from the Central Treasury up to an additional $1 million for the Airport Terminal Expansion and Renovation Project. The Assembly previously approved Ordinance 2008-35 that authorized a loan against the Central Treasury up to a maximum of $8,183,000. Approval of this ordinance would bring the total amount of the loan up to a maximum of $9,183,000. This additional loan is being submitted to the Assembly in companion with Resolution 2460 that de-appropriates a $1 million advance in 1% temporary sale tax funds previously approved for the Airport Terminal Project.

The Airport has projected that the actual amount of the loan would likely not exceed $6.7 million including this additional $1 million. The loans are proposed for FY10 ($5.7 million) and FY11 ($1 million). The loans would include interest estimated by the Finance Director at the average rate the City and Borough 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. These loans would be provided under code section 57.05.045, Central Treasury loans.

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

b. Ordinance 2008-15(AT)
An Ordinance Appropriating To The Manager The Sum Of $2,000,000 As Funding For The Sustainability Fund, Funding Provided By The Temporary 1% Capital Improvement Sales Tax Levies.

Economic Impact Statement

This ordinance would appropriate $2 million in sales tax funds to the CBJ Sustainability Fund. The funding is coming from the following 1% temporary capital improvement sales tax sources:

1% temporary sales tax expiring on January 1, 2006 $1 million
1% temporary sales tax expiring on October 1, 2008 $1 million

The Sustainability Fund would loan these funds under the provisions of CBJ code section 57.05.027. Under this section, loans may be made from the Sustainability Fund, for appropriate purposes, for a term of up to 10 years without interest. If this ordinance is approved, a companion ordinance, 2009-03, would authorize loaning the $2 million to the Dimond Park Swimming Pool Capital Improvement Project for construction of a ground source heat pump system. Energy studies and life cycle cost analysis performed during preliminary design phases demonstrated that significant operational savings could be generated by use of a ground source heat pump system rather than conventional oil or electric heating systems. The savings from installing the ground source heat pump system is estimated at approximately $200,000 per year. The operational savings from the ground source heat pump system will be used to repay this loan over a 10-year term.

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

c. Ordinance 2009-03
An Ordinance Authorizing A Loan In An Amount Not To Exceed $2,000,000 From The Sustainability Fund To The Dimond Park Swimming Pool Capital Improvement Project For The Purpose Of Funding The Design And Construction Of A Ground Source Heat Pump System.

This ordinance would provide a $2 million dollar loan from the CBJ Sustainability Fund to the Dimond Park Swimming Pool Capital Improvement Project for construction of a ground source heat pump system. The loan is to be made under the provisions of code section 57.05.027. Under this section, loans may be made from the Sustainability Fund, for appropriate purposes, for a term of up to 10 years without interest. Energy studies and life cycle cost analysis performed during preliminary design phases demonstrated that significant operational savings could be generated by use of a ground source heat pump system rather than conventional oil or electric heating systems. The savings from installing the ground source heat pump system is estimated at approximately $200,000 per year. The operational savings from the ground source heat pump system will be used to repay the loan over a 10-year term.

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

d. Ordinance 2008-15(AN)
An Ordinance Appropriating To The Manager The Sum Of $12,591 As Funding For The City And Borough Lands Fund, Funding Provided By Lands Fund Money Returned From JPD Impound Lot Capital Improvement Project.

Economic Impact Statement

This ordinance would appropriate $12,591 to the Lands Fund, funding provided by FY 07 Lands Fund money.

These moneys are currently part of the JPD Impound Lot Capital Improvement Project (CIP 375-29). This project is completed and is being closed; therefore, the leftover funds are to be returned to the Lands Fund.

The Public Works and Facilities Committee approved this request at its January 5, 2009 meeting.

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

e. Ordinance 2008-15(AP)
An Ordinance Appropriating To The Manager The Sum Of $225,000 As Partial Funding For The Purchase of a Tanker Unit for Capital City Fire and Rescue, Grant Funding Provided By The Federal Emergency Management Agency.

Economic Impact Statement

This ordinance would appropriate $225,000 from the Federal Emergency Management Agency’s Assistance to Firefighters grant.

This grant would be used to purchase a tanker unit to replace a 1979 tanker. The grant stipulates that the retired tanker cannot be sold or donated, so it will be salvaged for parts.

The grant has a 10% matching funds requirement that would be provided by the Capital City Fire and Rescue’s fleet replacement fund.

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

f. Ordinance 2008-15(AQ)
An Ordinance Appropriating To The Manager The Sum Of $443,200 As Partial Funding For The Auke Bay Loading Facility Capital Improvement Project, Funding Provided By 2003B General Obligation Bond Interest Income and Harbors Fund Balance.

Economic Impact Statement

This ordinance would appropriate $443,200 of various bond interest income into the Auke Bay Loading Facility capital improvement project (354-74). Approximately $150,686 comes from accrued interest income from 2003 Capital Improvement Projects General Obligation Bonds. The balance, $292,514 comes from Docks and Harbor’s fund balance, which is the result of accrued interest on the unspent revenue bond proceeds during FY08.

The balance of the harbors fund after the appropriation will be $2,023,886.

The Docks and Harbors Board approved this ordinance at its January 8, 2008 meeting. The Board expects this appropriation will provide the necessary funding to complete the Auke Bay Loading Facility project.

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

g. Ordinance 2008-15(AR)
An Ordinance Appropriating To The Manager The Sum Of $300,000 As Partial Funding For The Thunder Mountain High School Capital Improvement Project, Funding Provided By 2006 General Obligation Bond Interest Income.

Economic Impact Statement

This ordinance would appropriate $300,000 to the Thunder Mountain High School Capital Improvement Project (CIP) (454-83), funding provided by unbudgeted 2006 G.O. School Bond interest income.

As of December 18, 2008, the Thunder Mountain High School CIP fund had accrued $568,995 in unbudgeted general obligation bond interest income, of which staff recommends appropriating $300,000 to fund the completion of the Auditorium (alternates 4 and 5).

The High School Project Team approved this appropriation at its December 18, 2008 meeting.

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

h. Ordinance 2008-15(AS)
An Ordinance Appropriating To The Manager The Sum Of $5,000 As Funding For The Jensen-Olson Arboretum, Grant Funding Provided By The Stanley Smith Horticultural Trust.

Economic Impact Statement

This ordinance appropriates a $5,000 grant from the Stanley Smith Horticultural Trust to fund the purchase of engraved aluminum plant labels for the Jensen-Olson Arboretum.

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

2. Resolutions

a. Resolution 2458
A Resolution Urging The Alaska State Legislature To Modify The Standards Governing The Discharge Of Wastewater From Cruise Ships.

This resolution is based on a resolution adopted by the Alaska Municipal League, the Juneau Chamber of Commerce, and the Ketchikan Gateway Borough, with minor modifications, asking the Alaska State Legislature to re-examine the standards governing the discharge of wastewater from cruise ships.

I recommend this resolution be adopted.

b. Resolution 2459
A Resolution Making Revisions To The Personnel Rules.

Draft changes to Personnel Rules

This resolution would approve changes to the Personnel Rules, which, along with the various collective bargaining agreements, govern the rights and responsibilities of CBJ employees, supervisors, and managers. The rule changes are set forth in the attachment to the resolution. Most of the changes would be considered "housekeeping" and arose during contract negotiations with MEBA.

I recommend this resolution be adopted.

c. Resolution 2460
A Resolution De-Appropriating $1,000,000 From The Airport Terminal Expansion Capital Improvement Project.

Economic Impact Statement

This resolution will de-appropriate $1 million of $2 million previously advanced to the Airport for the Airport’s Terminal Expansion Capital Improvement Project. The amount advanced came from sales tax revenues remaining from the 1% temporary sales tax levy that expired on January 1, 2006. The $1 million dollars being de-appropriated is proposed to be replaced through a $1 million Central Treasury loan increase to the Airport, Ordinance 2009-02. The amount to be loaned from the Central Treasury is an advance against future 1% temporary capital improvement sales tax allocations for the Airport Terminal Expansion Project as approved by the voters in October 2007.

The $1 million being de-appropriated is proposed to be used along with an additional $1 million in 1% temporary capital improvement sales tax funds to provide funding for the CBJ Sustainability Fund.

I recommend this resolution be adopted.

3. Transfers

a. Transfer T-888
Authorizing The Transfer of $450,000 From The Downtown Sidestreets Phase III Capital Improvement Project To The Jordan Creek Bridge Replacement CIP, Funding Provided By Areawide Street Sales Tax.

Impact of Budget Action Statement

The Jordan Avenue Bridge was determined by Alaska Department of Transportation to be restricted to load ratings of 5000 pounds per axle shortly after the Trout Street bridge was closed due to structural failure. A temporary access was constructed and opened in late October. Engineering has completed the site survey, geotechnical investigations, and evaluated the potential structures for the Jordan Creek Bridge replacement. Precast hollow planks were chosen as the least expensive, best fit for site constraints, least amount of maintenance, and for ease of construction.

This would transfer $450,000 from the Downtown Sidestreets Phase III CIP to complete this project.

The Public Works and Facilities Committee approved this request at its January 5, 2009 meeting.

I recommend approval of this transfer.

b. Transfer T-890
Authorizing The Transfer Of $892,362 From Thirteen Capital Improvement Projects To Eight On-Going CIPs.

Impact of Budget Action Statement

This request would authorize the transfer of $892,362 from thirteen Capital Improvement Projects to eight on-going CIPs; this action will close thirteen CIPs. The capital project transfers are listed in detail in the attached Impact of Budget Action (IBA) worksheet. The worksheet details the effect of the transfer on the projects’ budgets and the available funds within each project.

The Public Works and Facilities Committee approved this request at its January 5, 2009 meeting.

I recommend approval of these transfers.

VIII. PUBLIC HEARING

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

ADA Committee Comments on Ordinance.

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.

This ordinance was reviewed by the Assembly Finance Committee at its meeting on November 19, 2008. The committee recommended that it be forwarded to the Assembly introduction. At the December 8th Assembly meeting, Ordinance 2008-39 was introduced and set for public hearing at the first meeting following review by the ADA Committee. The ADA Committee reviewed and approved the ordinance at its meeting on January 7, 2009. Finance Director Craig Duncan and Purchasing Officer Anne Stadnychenko attended the meeting to present the ordinance and answer questions. The packet contains an e-mail from staff liaison to the ADA Committee, Jonathan Mollick, expressing appreciation for their presentation.

I recommend this ordinance be adopted.

B. Ordinance 2008-15 (AL)
An Ordinance Appropriating To The Manager The Sum Of $2,314,944 As Partial Funding For The Bartlett 2005 Capital Improvement Project, Funding Provided By Bartlett Regional Hospital Fund Balance.

Economic Impact Statement

This ordinance would appropriate $2,314,944 for the Bartlett 2005 Capital Improvement Project. Funding is provided by Bartlett Regional Hospital’s (BRH) Fund Balance.

This appropriation would provide the necessary funding for completion of the Bartlett 2005 capital improvement project. After this appropriation, BRH’s estimated fund balance at the end of FY09 will be $11,218,436.

The BRH board recommended this appropriation at its October 28, 2008 meeting.

I recommend this ordinance be adopted.

C. Ordinance 2008-15(AM)
An Ordinance Appropriating To The Manager The Sum Of $1,000 As Partial Funding For The Purchase Of Artworks For The Juneau-Douglas City Museum, Grant Funding Provided By Museums Alaska, Incorporated.

Economic Impact Statement

This ordinance would appropriate $1,000 toward the purchase of artwork for the Juneau-Douglas City Museum. Funding is provided by a grant from Museum Artworks, Incorporated.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

A. Ordinance 2008-15(X)(b)
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 Statement

Letter From Jensen-Olson Arboretum Board

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 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. The Finance Director is anticipating that over the long-term the investments in this portfolio will be able repay these amounts. As such, the funding provided by this ordinance is considered a loan from the General Fund that will be paid back as earnings permit.

This ordinance was introduced on November 17, 2008 and a public hearing was held at the regular Assembly meeting on December 8, 2008. Action on the ordinance was deferred, pending review by the Jensen-Olson Arboretum Advisory Board. The Board met on December 12, 2008 and requested the Finance Director meet with the Board’s endowment subcommittee at least once a year so they can make recommendations regarding the Endowment Fund. The Jensen-Olson Arboretum Advisory Board submitted a letter, contained in the packet, objecting to the transfer of funds in the form of a loan to the Endowment. The letter requests that the transfer be made as an appropriation to cover FY 2007-2009 actual and anticipated budget shortfalls.

The Assembly created the Jensen-Olson Arboretum board December 2006. The first meeting of the board was held on August 1, 2007. The Jensen- Olson Arboretum Board has an endowment subcommittee, however, that committee was not involved in the decisions that lead to the need for this ordinance. In the future the endowment subcommittee will provide recommendations to the Parks and Recreation Director, as outlined in the resolution establishing the board and defining the purpose of the endowment subcommittee.

I recommend this ordinance be adopted.

X. NEW BUSINESS

A. Liquor License
Ownership Transfer of Restaurant Eating Place License #1384
D.B.A: Jovany’s Italian Restaurant
Transfer FROM: Alfonso O. & Nenita S. Soriano
Transfer TO: Alfonso Soriano (100% Owner)
Location: 9121 Glacier Hwy., Juneau, AK 99801

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

The Finance, Police, Fire, and Community Development Departments have reviewed this business for compliance with CBJ Code. Enclosed in your Human Resources Committee packets are copies of the notice received from the Alcohol Beverage Control (ABC) staff.

The Human Resources Committee met earlier this evening, Monday, January 12, 2009 and will report on its recommendation about this liquor license.

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

XI. STAFF REPORTS

A. MEBA Contract
B. Recycling efforts

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 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
 
home
community
visitors
images
business
jobs
calendar
IMAGE-City and Borough of Juneau