ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, August 23, 2010, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2010-21

 

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

A. Employee Recognition – Sandra Strandtmann, Library

IV. APPROVAL OF MINUTES

A. August 9, 2010 – Regular Assembly Meeting 2010-20

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 2010-23(b)
An Ordinance Amending The Second-Hand Smoke Control Code Regarding Smoking In Commercial Passenger Vehicles, And Providing For A Penalty.

At the public hearing on this matter, the Assembly asked the City Attorney to revise this ordinance in light of new information that had been received. This has been completed; however, the revisions changed the ordinance substantially. Charter Section 5.3(a) states: “If the ordinance is amended after the hearing as to any matter of major substance, the ordinance shall be treated as a newly introduced ordinance.” Accordingly, it is before the Assembly for introduction as a new ordinance.

This ordinance will require the owner, manager, operator, or person having control of a commercial passenger vehicle to have and enforce a “non-smoking” policy in the commercial passenger vehicle owned, operated, managed, or controlled by that person. It is presently illegal to smoke in taxis and other commercial passenger vehicles; however, according to JPD, this fine, which can be imposed only on the person actually smoking, is not effectively deterring such actions. With this ordinance change, failure to have and enforce a non-smoking policy in a commercial passenger vehicle will subject the person owning, operating, managing or controlling the commercial passenger vehicle in question to a fine of $200 for a first offense, a $250 fine for a second offense occurring within 2 years, and a $300 fine for a third (and subsequent) offense occurring within two years.

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

b. Ordinance 2010-29
An Ordinance Amending The Water Code Regarding Metered Water Service.

Revisions to the Water Code in 2003 in response to the rate study included language in the definition “metered residential service” intended to meter residential structures containing two or more dwelling units. An administrative oversight at that time allowed language in the “Meters” section of the code to remain unchanged. That section contains an exclusion from metering for “residential service to two or fewer units.” The proposed Water Code change would bring the language in the “Meters” section into alignment with the definition and clarify the intent to meter all multiple-unit residential services while maintaining the exclusion from metering for single-family residences.

The Utility Advisory Board recommended this action at its July 29, 2010 meeting. The Public Works and Facilities Committee received an update on this issue at its August 23, 2010.

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

c. Ordinance 2009-08(AR)
An Ordinance Appropriating To The Manager The Sum Of $1,884,230 To Fund The City And Borough Of Juneau’s Fiscal Year 2010 Public Employee Retirement System Contribution, Funding Provided By The Alaska Department Of Administration.

Under current State law, our required annual contribution to the Public Employee Retirement System (PERS) is fixed at 22%. The State pays the difference between what we contribute and what their actuarial determines to be the total amount that should be paid into PERS. For FY 2010 that amount is an additional 5.65%. Since the State is paying into PERS on behalf of CBJ, for accounting purposes, we are required to show it as revenue.

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

d. Ordinance 2010-11(P)
An Ordinance Appropriating To The Manager The Sum Of $600,000 As Partial Funding For The Planning, Preliminary Design, And Permitting Of An Extension To The North Douglas Highway, Funding Provided Through A Transfer Of Responsibility Agreement Entered Into With The State Of Alaska Department Of Transportation And Public Facilities
.

This ordinance would appropriate $600,000 received through a Transfer of Responsibility Agreement between the City and Borough of Juneau and the Alaska Department of Transportation and Public Facilities (DOT/PF).

DOT/PF has agreed to transfer $600,000 into a Capital Improvement Project for the planning, preliminary design, and permitting of an extension to the North Douglas Highway. In conformance with the terms of the Transfer of Responsibility Agreement, interest accrued by these advanced project funds will be returned to the State upon project completion. The Assembly, at its June 28, 2010 meeting, adopted Resolution 2537, formally requesting that the Municipality be allowed to assume these project responsibilities.

The Public Works and Facilities Committee will receive an update on this issue at its August 23, 2010 meeting. The Assembly Lands Committee will review this item at its August 30, 2010 meeting.

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

2. Bid Award

a. E10-221 - BRH Medical Surgical East Wing Renovation.

Bids were opened on the subject project on August 10, 2010. The bid protest period expired at 4:30 p.m. on August 11, 2010. The Executive Committee of the Bartlett Regional Hospital Board will meet on August 19, 2010 to evaluate results and forward its recommendation for award to the Assembly.

Project Description: This Project consists of abatement, demolition, and renovation of architectural, structural, mechanical, plumbing, and electrical components in the existing Level 3 East Wing of the Medical Surgical Unit, and related work in the ceilings of Level 2, as described in the Contract Documents. Additive Alternates include Level 3 Solarium work and renovation of portions of Level 2.

I recommend award of this project to McGraw Custom Construction for the Base Bid plus Additive Alternates 1 – 5, for a total award of $3,420,500.

VIII. PUBLIC HEARING

A. Ordinance 2010-24
An Ordinance Authorizing The Port Director To Negotiate And Execute A Lease Of A Portion Of Lot 3, Block 51, Of The Alaska Tidelands Addition To The City Of Juneau, Located Near The Douglas Bridge Along Harbor Way, For An Existing Building Housing Retail Businesses And Marine Related Businesses And Uses.

Exhibit A

This ordinance would authorize the Port Director to negotiate the renewal of a tidelands lease with Harbor Lights Enterprises, LLC. This is next to Harris Harbor and the current location of Juneau Electronics and the Marine Exchange of Alaska.

Harbor Lights Enterprises, LLC requested this renewal to procure long-term financing for building improvements. The terms and conditions will be the standard CBJ tidelands lease, (i.e., 35-year term with an option for another 35 years, no improvements without prior approval of the Port Director, etc.). An appraisal was done two years ago establishing the rate at $0.30 per square foot. The Docks and Harbors Board has approved keeping this rate for the next three years before re-appraisal.

The Docks and Harbors Board conducted two public hearings on the request for renewal and approved the request at its May 27, 2010 meeting.

The Lands Committee reviewed this item at its July 19, 2010 meeting and recommended the Assembly introduce this ordinance.

I recommend this ordinance be adopted.

B. Ordinance 2010-26
An Ordinance Authorizing The Issuance Of General Obligation Bonds In The Principal Amount Of Not To Exceed $18,700,000, To Finance Renovations To Auke Bay Elementary School, And Submitting A Proposition To The Voters At The Election To Be Held On October 5, 2010.

This ordinance would authorize placing on the October 5, 2010 general election ballot the question of issuing $18.7 million in 10-year General Obligation bonds for the purpose of renovating the Auke Bay Elementary School for physical and programmatic upgrades.

The 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 2.8%, will be $651,000. This amount of debt service would require an annual property tax levy of approximately $16.00 (0.16 mills) per $100,000 of assessed value or approximately $53 for the average single-family detached home (estimated 2010 value $329,800 per CBJ Assessor).

This bonding proposal was approved by the Assembly Finance Committee at an August 4, 2010 meeting and forwarded to the Assembly for action.

I recommend this ordinance be adopted.

C. Ordinance 2010-27
An Ordinance Placing On The Next Regular Municipal Election Ballot The Question Of Whether To Extend The Existing Levy And Collection Of A Temporary 1% Areawide Sales Tax On The Sales Price Of Retail Sales, Rentals, And Services Performed Within The City And Borough, Such Tax Extension To Be Effective On October 1, 2013, For A Period Of Ten Years, The Proceeds Of Which Are Intended To Be Appropriated By The Assembly For The Purpose Of Design, Permitting, And Construction Of A North Douglas Transportation Crossing; And Calling For An Election On Whether Such Sales Tax Shall Be So Levied.

Rorie Watt Memo

This ordinance would place on the October 5, 2010, ballot the question of whether the temporary 1% areawide sales tax should be extended for an additional ten years with the intent that the proceeds of the tax, if the voters approve the extension, would be appropriated by the Assembly for the purpose of design, permitting, and construction of a North Douglas transportation crossing between the Glacier Highway Interchange and Hendrickson Point. CBJ’s sales tax has three components: a permanent 1% tax, a temporary 3% tax, and a temporary 1% tax. The temporary 1% tax is presently scheduled to expire on September 30, 2013. This measure would place the question before the voters of whether to extend that tax until September 30, 2023.

I recommend this ordinance be adopted.

D. Ordinance 2010-28
An Ordinance Increasing The Rates For Water And Wastewater Utility Services.

This ordinance would increase the customers’ service rates by seven percent, effective immediately for the remainder of Fiscal Year 2011, and again in Fiscal Year 2012, for both the CBJ Water Utility and Wastewater Utility. The Financial Plans and Policies adopted for each utility call for biennial financial reviews of each utility as part of the CBJ’s budget cycle. The purpose of the reviews are to assess the revenue requirements for each utility and to determine the minimum level of customer service rate increase needed to ensure the fiscal stability of each enterprise operation.

Financial elements taken into consideration in the revenue requirement analysis include ongoing operations and maintenance expenses; capital-related system replacement through depreciation funding less debt principal; debt service (repayment of existing bonds and loans); debt financing; revenue growth through increased customer base; inflation; operating and capital reserve fund balances; and cash sufficiency and coverage testing for bond health.

The Utility Advisory Board recommended the proposed rate increases to the Assembly in the FY 2010 Annual Report of the Utility Advisory Board. At a joint meeting of the Public Works and Facilities Committee and the Utility Advisory Board, the rate increase recommendation was forwarded to the Finance Committee for its consideration. At the August 4, 2010 meeting of the Finance Committee, the recommendation was accepted by motion and forwarded to the Assembly for introduction.

I recommend this ordinance be adopted.

E. Ordinance 2009-08(AQ)
An Ordinance Appropriating To The Manager The Sum Of $1,654,200 As Partial Funding For Bartlett Regional Hospital Fiscal Year 2010 Operating Budget, Funding Provided By Bartlett Regional Hospital FY10 User Fees.

Economic Impact Note

This ordinance would appropriate an additional $1,654,200 to Bartlett Regional Hospital for FY10 operations and would be funded from FY10 user fees. This appropriation is necessary to fund unanticipated operating costs that occurred late in the fiscal year.

On July 20, 2010, the Hospital Board Finance Committee was informed of the year-end operating shortfall and the need to obtain Assembly budget authorization.

I recommend this ordinance be adopted.

F. Ordinance 2010-11(C)
An Ordinance Appropriating To The Manager The Sum Of $10,000 As Funding To Purchase Hazardous Material Response Equipment, Grant Funding Provided By The Alaska Department Of Environmental Conservation.

Economic Impact Note

This ordinance would appropriate a $10,000 grant from the Alaska Department of Environmental Conservation (DEC) to purchase equipment that will allow emergency response to hazardous materials incidents. There are no requirements for matching funds.

I recommend this ordinance be adopted.


G. Ordinance 2010-11(O)
An Ordinance Appropriating To The Manager The Sum Of $500,000 As Additional Funding For An Environmental Assessment Of Statter Harbor Loading Facility Capital Improvement Project, Funding Provided By The State Of Alaska Department Of Fish And Game.

Economic Impact Note

This ordinance would appropriate a grant of $500,000, administered through the Alaska Department of Fish and Game, into the Statter Harbor Loading Facility CIP. The grant would allow CBJ to continue planning and environmental work for the new launch ramp at Statter Harbor.

The Federal Aid in Sportfish Restoration Act is providing funding for this grant. CBJ is required to provide a 25% match. Such funds will come from previously budgeted sales tax appropriated for this project. The federal grant is $500,000.

The grant is being amended so that CBJ can do additional work to complete an environmental assessment on the project in accordance with the National Environmental Policy Act. The work will include additional studies of inner Auke Bay as requested by state and federal environmental agencies.

The Docks and Harbors Board approved this action at a special meeting on August 17, 2010. The Assembly Public Works and Facilities Committee will consider the appropriating ordinance at its regular meeting on August 23, 2010.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Docks and Harbors – Art Selection Panel for Port Customs and Visitors Center Project

The Port Customs and Visitors Center Project will include 1% for art as provided by CBJ Code. Section 62.65 of the Code stipulates that an Art Selection Panel be approved by the Assembly. At its July 26, 2010 meeting the Docks and Harbors Board recommended that the Assembly approve a Panel to be comprised of two members appointed by the Juneau Arts and Humanities Council, two members of the Docks and Harbors Board, one member representing the Juneau Convention and Visitors Bureau, and one member representing the U.S. Customs and Border Patrol. The Art Selection Panel would solicit and review artwork for the project and make a recommendation for final approval by the Assembly.

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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