ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday August 24, 2009, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2009-18

Submitted by: Kimberly A. Kiefer, City Manager

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

A. Proclamation – National Drug and Alcohol Recovery Month

IV. APPROVAL OF MINUTES

A. August 10 – Regular Assembly Meeting 2009-17

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 2009-16
An Ordinance Repealing and Reenacting the Building Regulations, and Amending the Fire Code Fine Schedule and the Building Code Fine Schedule.

This ordinance would repeal CBJ Title 19, the Building Regulations Code, and reenact Title 19 based on the 2006 model codes, with modifications recommended by the Building Code Advisory Committee (BCAC). The model codes include the 2006 International Building Code, Fire Code, Fuel Gas Code, Property Maintenance Code, Existing Building Code, Residential Code, and Mechanical Code, the 2006 Uniform Plumbing Code, and the 2008 National Electrical Code. The ordinance would also modify the Building Code Fine Schedule and the Fire Code Fine Schedule.

The BCAC, CBJ Building Code Official, and the CBJ Fire Marshall met over the past 2.5 years and carefully reviewed each of the codes. They incorporated the State Fire Marshal’s modifications and the local modifications, and they recommend approval.

At its meeting on June 22, 2009, the Public Works and Facilities Committee recommended an ordinance be prepared for the Assembly’s consideration. With this ordinance, the CBJ would be on the same edition of the codes as currently adopted by the State of Alaska, which would greatly assist designers, contractors, and CBJ staff.

Staff is still reviewing this ordinance. Thus, it is likely there will be a version b when it comes before the Assembly for public hearing.

This ordinance is 288 pages, so for viewing on the website, we have separated it into chapters:

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

b. Ordinance 2009-08(J)
An Ordinance Appropriating To The Manager The Sum Of $7,500 As Partial Funding For The Local Emergency Planning Committee Program, Grant Funding Provided By The State Of Alaska, Department Of Military And Veterans Affairs.

Economic Impact Note

This ordinance would appropriate $7,500 for the Local Emergency Planning Committee (LEPC) program. The funding is provided by a grant from the State of Alaska, Department of Military and Veterans Affairs.

These funds are slated to support the goals activities of the Local Emergency Planning Commission, such as:

• LEPC support services
• Office supplies and expenses
• Equipment
• Outreach projects
• Promotional materials

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

c. Ordinance 2009-08(K)
An Ordinance Appropriating To The Manager The Sum Of $9,600 As Funding For The Purchase Of Equipment To Be Used In Oil And Hazardous Materials Response Activities, Grant Funding Provided By The State Of Alaska, Department Of Environmental Conservation.

Economic Impact Note

This ordinance would appropriate $9,600 in grant funding from the Alaska Department of Environmental Conservation for equipment purchases for oil and hazardous materials response activities.

The funding will be used for the purchase of specific items used for response to hazardous materials incidents by the Capital City Fire/Rescue Haz-Mat response team.

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

d. Ordinance 2009-08(L)
An Ordinance Appropriating To The Manager The Sum Of $800,000 As Funding For The Purchase Of Two Buses For Capital Transit And Two Paratransit Vans For Care-A-Van, Grant Funding Provided By The State Of Alaska, Department Of Transportation And Public Facilities.

Economic Impact Note

This ordinance would appropriate $800,000 in grant funding provided by the Alaska Department of Transportation and Public Facilities (DOT/PF) for the purchase of two buses for Capital Transit, and two paratransit vans for Care-A-Van.

This grant is provided under the American Recovery and Reinvestment Act (ARRA) and the Transportation Investment Generating Economic Recovery (TIGER) Program. The funds will be used to purchase two 35-foot buses for the Capital Transit fleet and two paratransit vans for the Care-A-Van fleet. The grant will cover the entire cost of these purchases. There is no matching requirement.

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

e. Ordinance 2009-08(M)
An Ordinance Appropriating To The Manager The Sum Of $4,546,000 As Partial Funding For The Downtown Transportation Center Capital Improvement Project, Grant Funding Provided By The State Of Alaska, Department Of Transportation And Public Facilities And The United States Department Of Transportation, Federal Transit Administration.

Economic Impact Note

This ordinance would appropriate three grants totaling $4,546,000 for the Downtown Transportation Center Capital Improvement Project (CIP). This grant funding is provided by the State of Alaska, Department of Transportation and Public Facilities (DOT/PF), and the United States Department of Transportation, Federal Transit Administration (FTA).

The three grants are:

• 2009 FTA grant: These funds are the final installment of the four-year FTA grant (04-0015-01). The amount is for an additional $796,000 for construction of the Downtown Transportation Center. This installment brings this grant total to $2,993,110. There is a 20 percent match required for the grant, in the amount of $748,277.50, which will be covered by the DOT/PF grant below.
• DOT/PF grant: This funding was made available to serve as the required local match for the FTA 04-0015-01 grant. The amount is $750,000.
• DOT/PF grant: Through DOT/PF, a total of $3,000,000 of federal economic stimulus funds is available for the Downtown Transportation Center under the American Recovery and Reinvestment Act. No match is required for these funds.

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

2. Resolutions

a. Resolution 2493
A Resolution Establishing a Fee For Processing and Handling Dishonored Checks and Repealing Resolution Serial No. 1156.

This resolution would increase the CBJ fee for dishonored checks from $15 to $30 per occurrence. The existing fee has not been increased since 1986. Processing of dishonored or NSF checks requires significant staff time and effort. Staff has estimated that the time to process an NSF check can be as much as 30 to 45 minutes per item. This includes:

• identification of the dishonored check
• correction of our cash balances
• entry into our billing systems
• billing the balance due
• collection efforts

Combining staff costs with the costs of mailings, letters, and banking service charges supports a dishonored check fee in the range of $30.

The resolution would have an effective date of October 1, 2009. This will provide sufficient time to notify customers of this fee change.

I recommend this resolution be adopted.

VIII. PUBLIC HEARING

A. Ordinance 2009-17(b)
An Ordinance Proposing An Increase In The Excise Tax On Tobacco Products, To Become Effective Only If Approved By The Voters At The Next Regular Election.

This ordinance would place before the voters on October 6, 2009, the question of whether to increase the tobacco excise tax from the current $0.30 per pack of cigarettes and 12% for other tobacco products (OTP) to $1.00 per pack of cigarettes and 45% for OTP. If voters approve the higher excise tax rate, the revenue collected will increase from $517,000 (calendar 2008 collections) to an estimated $1,690,000, for an increase of $1,173,000.

The Assembly Finance Committee reviewed this ordinance on July 8 and July 23, 2009. The Finance Committee recommended the ordinance be presented to the Assembly for action in time to meet the 2009 election requirements. The Committee also indicated its intent that the increase in excise tax revenues, if approved by the voters, be used for social service programs. The effective date for the proposed tax change, if approved, is January 1, 2010.

A special assembly subcommittee was appointed to review the intent language. The subcommittee met on August 6. At that meeting, the subcommittee revised the intent language (Section 2) and the ordinance was introduced on August 10 with the intent language recommended by the subcommittee.

The Committee of the Whole met on August 17, 2009 to review the ordinance. The COW recommended that the Assembly adopt the ordinance, with the changes incorporated in this Version (b). Adoption of the ordinance will place the issue on the October 6, 2009 Regular Municipal Election ballot. Version (b) notes that Section 2 is a non-code section and corrects a grammatical error in Section 2.

I recommend this ordinance be adopted.

B. Ordinance 2009-18
An Ordinance Amending the Excise Tax on Tobacco Products Code.

This ordinance would modify the tobacco excise tax code to better define the terms “cigarette” and “tobacco product.” These changes are proposed in response to the continued evolution of tobacco products offered to the public by the tobacco industry. The revised definitions include:

• Cigarette as distinguished from cigar-type tobacco products;
• Products that contain a combination of tobacco and other substances; and
• Products that contain nicotine intended for human consumption unless that product has been approved by the FDA for tobacco cessation, harm reduction, or medical purposes.

This ordinance was presented to the Assembly Finance Committee on July 23, 2009 as an information item and companion to Ordinance 2009-17. This ordinance, if approved, would become effective on January 1, 2010.

I recommend this ordinance be adopted.

C. Ordinance 2009-19
An Ordinance Authorizing The City And Borough To Issue General Obligation Bonds In The Principal Amount Of Not To Exceed $11,800,000 To Finance Physical And Programmatic Upgrades To Gastineau Elementary School, And Submitting A Proposition To The Voters At The Election To Be Held Therein On October 6, 2009.

This ordinance would authorize placing on the October 6, 2009 general election ballot the question of issuing $11.8 million in 10-year general obligation (G.O.) bonds for the purpose of renovating the Gastineau Elementary School with physical and programmatic upgrades.

The Gastineau Elementary School project qualifies for 70% State reimbursement under the State’s School Construction Bond Debt Reimbursement Program. The funding for the State’s reimbursement program is subject to annual appropriation. If the State fully funds the reimbursement program, the estimated annual debt service costs after State reimbursement, assuming an interest rate of 5.0 percent, will be $458,000. This debt service would require an annual property tax levy of approximately $12.00 (0.12 mills) per $100,000 of assessed value or approximately $42 for the average single family home (estimated 2009 value $349,700 per CBJ Assessor).

This bonding proposal was reviewed by the Assembly Finance Committee on July 8 and July 23, 2009, and forwarded on to the Assembly for action.

I recommend this ordinance be adopted.

D. Ordinance 2009-08(F)
An Ordinance Appropriating To The Manager The Sum Of $3,300,000 As Funding For Auke Bay Seawalk Construction And Cruise Ship Dock Improvements, Grant Funding Provided By Alaska Department Of Commerce, Community And Economic Development.

Economic Impact Note

Economic Impact Note

This ordinance would appropriate $3,300,000 in two Alaska Department of Commerce, Community and Economic Development grants for two existing Capital Improvement Projects (CIP).

The Auke Bay Seawalk Construction grant, totaling $800,000, would be appropriated into the Statter Harbor Launch Ramp CIP to replace the recreational boat launch at Statter Harbor. The funding will be used to provide a pedestrian corridor along the waterfront from the existing launch ramp to the Auke Bay Elementary School crossing on Glacier Highway.

The Cruise Ship Dock Improvement grant, totaling $2,500,000, will be part of the Downtown Cruise Ship Berth Enhancement CIP. The funds would be used to construct new decking behind the current Visitor Center-Customs Building and behind and adjacent to the Tram Building. In addition, a new Visitor Center Building and Port-Customs Building would be constructed atop the new, decked area. The project would also include covered staging areas and other pedestrian amenities.

The Docks and Harbors Board approved this action at its June 25, 2009 meeting. The Public Works and Facilities Committee recommended approval of this ordinance at its July 27, 2009 meeting.

I recommend this ordinance be adopted.

E. Ordinance 2009-08(I)
An Ordinance Appropriating To The Manager The Sum Of $10,291 As Partial Funding For The Development Of An Historic Building And Site Survey Report For The Treadwell Mining Complex, Grant Funding Provided By The State Of Alaska, Department Of Natural Resources.

Economic Impact Note

This ordinance would appropriate $10,291 for the development of an historic building and site survey report for the Treadwell Mining Complex. The funding is provided by a grant from the State of Alaska, Department of Natural Resources.

The project would be performed through the combined efforts of contracted consultants, volunteers from the Treadwell Historic Preservation and Restoration Society, and the Project Manager. Total project costs are estimated to be $17,152.10. Using Historic Preservation Funds, the City and Borough is required to provide a 40 percent match, which will be fulfilled through staff wages from the Community Development Department operating budget and Treadwell Historic Preservation and Restoration Society volunteer hours. Total project costs include a 10 percent State administrative surcharge.

I recommend this ordinance be adopted.

F. Ordinance 2009-08(N)
An Ordinance Appropriating To The Manager The Sum Of $285,000As Funding For Eaglecrest To Purchase An Over Snow Vehicle, Funding Provided By Lease Financing.

Economic Impact Note

This ordinance would appropriate $285,000 in funding for the purchase of an over snow vehicle (snow grooming vehicle) for Eaglecrest. This vehicle replaces a 1995 Snow Cat that has over 10,000 hours of use and is unreliable. Seven thousand hours is considered an industry-accepted point where reliability and maintenance becomes an issue. The equipment is necessary to maintain the Eaglecrest ski area runs adequately. Maintaining the runs is critical for safety and skier enjoyment. The source of funding will be leasing financing through our master lease with Key Bank. The lease will be for a period of 5 years.

Eaglecrest will finance the lease payments through the CBJ equipment replacement fund which Eaglecrest contributions $100,000 annually. This snow cat acquisition will replace a 1995 snow cat. The new snow cat is much more fuel-efficient which will lower the operating costs at Eaglecrest.

The Eaglecrest Board approved this proposed appropriation at its May 7, 2009 meeting.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Export Manufacturing

CBJ 69.10.020(10) provides for exempting qualifying manufacturing property from assessment and taxation. Qualifying property may receive a declining five-year percentage exemption from the property’s market value as follows:

• 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 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 2009 tax year (FY10 budget year).

1. Alaska Glacier Seafoods, Inc. filed a manufacturing exemption for machinery, equipment and vehicles totaling $442,904.40 ($4,694.79 in property tax).

In addition, Alaska Glacier Seafoods has $483,630.25 in property qualifying from prior years, for a total 2009 assessment exemption of $926,534.65 or $9,821.27 in property taxes.

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

2. Taku Smokeries filed a manufacturing exemption for machinery, equipment, furniture, fixtures, and a vehicle totaling $30,014.00 ($318.15 in property tax).

In addition, Taku Smokeries has $90,029 in property qualifying from prior years for a total 2009 assessment exemption of $120,043 or $1,272.46 in property taxes.

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

3. Alaskan Brewing Company, LLC filed a manufacturing exemption for machinery, equipment and vehicles totaling $2,055,536 ($21,788.68 in property tax).

In addition, Alaskan Brewing has $602,060 in property qualifying from prior years, for a total 2009 assessment exemption of $2,657,596 or $28,170.52 in property taxes.

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

B. Docks and Harbors Contract Award – Visitor Center Design Services

The Docks and Harbors Board seeks Assembly approval to proceed with development of uplands facilities at the Cruise Terminal and Columbia Lot and amend the current design contract with Jensen, Yorba, Lott (JYL) Architects to complete design development and construction documents.

In June 2008, the Docks and Harbors Department issued a request for proposals for design services for cruise terminal improvements to include new decking, a new Visitor Center, and a new Port-Customs Building. JYL Architects was selected to perform the work. The work was to be accomplished in increments beginning with programming, planning, and conceptual design. An initial contract was issued for $19,900 to perform this work. In April 2009, the Assembly approved a contract amendment for $373,067 to continue the work through schematic design of the Visitor Center and through construction documents of the decking and Port-Customs Building. Now that the schematic design of the Visitor Center is complete, a contract amendment is sought for $182,610 to complete the construction documents for the Visitor Center.

This amendment will allow the Visitor Center to be on track with the rest of the project, which is scheduled to be completed by May of 2011.

The Docks and Harbors Board reviewed and approved this contract amendment at its meeting on August 13, 2009.

The Lands Committee reviewed this proposal at its August 17, 2009 meeting and recommended that the Assembly approve the contract amendment of $182,610 to complete construction documents for the Visitor Center and the uplands portions of the project.

I recommend approval of the contract amendment.

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 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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