City and Borough of Juneau
155 S. Seward Street
Juneau, Alaska 99801
tel. 907-586-5240
fax 907-586-5385
http://www.juneau.org

Assembly of the City and Borough of Juneau

ASSEMBLY AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA
Monday, January 30, 2012, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2012-02

 

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

     A. Beatriz (Trixie) Aquino Abella Proclamation

IV. APPROVAL OF MINUTES

A. January 9, 2012 – Regular Assembly Meeting 2012-01

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 2012-03
An Ordinance Amending The Commercial Passenger Vehicle Code, And Providing For A Penalty.

This ordinance would make several changes to the Commercial Passenger Vehicle (CPV) Code as recommended by the Juneau Police Department. It would add a definition for “limousine” to the code; allow the Administrator to reject an application for a CPV permit from any business that has unpaid CPV fines or fees; allow the Administrator to suspend the permit of any CPV driver charged with “criminally offensive sexual behavior” as defined in the Code; and reduce the penalty for operating without a certificate of public convenience and necessity from a misdemeanor to an infraction, with a fine of $300 per day for each vehicle so operating.

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

b. Ordinance 2012-05
An Ordinance Amending The Building Code Relating To Temporary Structures And Uses.

This ordinance would require that applications for temporary structures intended to be used for commercial sales submit certification to the Finance Department that the applicant is not delinquent with respect to any taxes, fees, or assessments due to the City and Borough.

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

c. Ordinance 2012-06
An Ordinance Of The City And Borough Of Juneau, Alaska, Repealing Ordinance Serial No. 2011-31, Authorizing The Issuance Of A Nonrecourse Revenue And Refunding Bond (Wildflower Court, Inc. Project), Of The City And Borough In An Aggregate Principal Amount Not To Exceed $14,200,000; Authorizing The Execution And Delivery Of The Necessary Financing Documents In Connection Therewith; And Providing The Form And Terms Of The Bond.

This ordinance would repeal Ordinance 2011-31, which authorized the issuance of bonds for refinancing the Wildflower Court, Inc., Project. It is being introduced at the recommendation of the City Attorney because, after adoption of Ordinance 2011-31, it came to his attention that there is at least the appearance of a conflict of interest in the familial relationship between the CBJ Finance Director and the Administrator of Wildflower Court and, that this circumstance had not been explicitly disclosed to the Assembly. Accordingly, in an abundance of caution, and in light of the high standards expected of CBJ employees, introduction of this ordinance will give the Assembly the opportunity to cure that oversight, and, after an independent review of the merits, determine whether to go forward with the proposed bond refinance as adopted, or start anew.

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

d. Ordinance 2012-07
An Ordinance Of The City And Borough Of Juneau, Alaska, Reenacting And Authorizing The Issuance Of A Nonrecourse Revenue And Refunding Bond (Wildflower Court, Inc. Project), Of The City And Borough In An Aggregate Principal Amount Not To Exceed $14,200,000; Authorizing The Execution And Delivery Of The Necessary Financing Documents In Connection Therewith; And Providing The Form And Terms Of The Bond.

Request                           Support Letter

If Ordinance 2012-06 is adopted, repealing Ordinance 2011-31, this ordinance would authorize the same refinancing as was proposed in Ordinance 2011-31 as outlined below:

This ordinance would authorize the issuance of up to $14.2 million in non-recourse revenue refunding bonds for the benefit of Wildflower Court. These bonds would refund non-recourse revenue bonds issued by the CBJ on behalf of Wildflower Court in 1999. The original $18 million in CBJ conduit debt was issued by the CBJ on August 1, 1999, pursuant to Ordinance 99-13. The amount being refunded is $13.05 million. The new bonds will result in an estimated net present value savings of $4.2 million over the remaining life of the bonds. In addition, the new bonds will provide up to $1 million in additional funding to install a kitchen, carpeting, facility improvements, and software and hardware upgrades.

The new bonds would be issued through the Alaska Municipal Bond Bank Authority (AMBBA) to gain the maximum refunding benefit. The term of the new issue will not change. Wildflower Court is pledging its revenues to the repayment of the (conduit) revenue bond debt. Wildflower Court has met its debt service obligations for the past 11 years, and the new bond debt schedule will mesh better with Wildflower’s projected future revenues (State Medicaid funding). However, using the Bond Bank does increase CBJ’s risk exposure, in that the AMBBA will require the standard revenue intercept provision. If Wildflower Court fails to meet the debt service requirements, the State could enact the revenue intercept provisions to withhold state payments to the CBJ. To protect the CBJ’s interest, there will be an indenture agreement that would secure the debt by a pledge of the facility.

When issuing tax-exempt bonds for nonprofit third parties, there is a requirement that the public have an opportunity to comment on the use of tax-exempt conduit debt. The CBJ held the required Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) hearing. (TEFRA hearing was conducted on December 28, 2011). There were no public comments received.

Included in the packet is a letter from Shawn Morrow, Bartlett Regional Hospital’s Chief Executive Officer, in support of the bond-refinancing proposal. Wildflower Court works in collaboration with Bartlett Regional Hospital to provide services for individuals being discharged from the hospital. Wildflower Court is a facility that provides services for adults who require constant skilled nursing services following an injury or acute illness and for individuals who have significant physical or mental disabilities that cannot be managed in a home care setting. Approximately 63.3% of Wildflower Court’s admissions come from Bartlett Regional Hospital.

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

e. Ordinance 2011-11(AA)
An Ordinance Appropriating To The Manager The Sum Of $41,156.26 As Additional Grant Funding To The Juneau Police Department For Upgrades To The Radio Dispatch Consoles. Grant Funding Provided By The Alaska Department Of Military Affairs, Division Of Homeland Security.

This ordinance would appropriate an additional $41,156.26 from the Alaska Department of Military Affairs, Division of Homeland Security, for the purpose of upgrading the Radio Dispatch Consoles, located at the Juneau Police Department. This funding is in addition to the original $600,000 grant appropriated in FY11.

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

2. Resolutions

a. Resolution 2598
A Resolution Certifying That In 2010 The City And Borough Suffered Significant Effects From Fisheries Business Activities, Such Certification Being For The Purpose Of Participating In The Fiscal Year 2012 Alaska Shared Fisheries Business Tax Program.

This resolution would authorize the acceptance of CBJ’s share of the FY2012 State Shared Fisheries Business Tax. This distribution represents CBJ’s share of state fishery revenues generated in the Northern Southeast Fisheries Management Area (NSFMA), but outside of the organized communities. The funds are allocated to each community in the NSFMA (Angoon, Gustavus, Haines Borough, Hoonah, Skagway, Tenakee Springs, and Juneau). Because the NSFMA’s FY2012 allocation falls below the long-form threshold value, the short-form method of allocation, as approved by the State of Alaska’s Department of Commerce, Community and Economic Development, is used this year. Using this short-form allocation method, it is anticipated that the CBJ will receive approximately $13,100 in FY2012.

I recommend this resolution be adopted.

b. Resolution 2599
A Resolution Expressing Assembly Support For House Bill 184 Relating To The Sharing Of Tax Revenues From The Fisheries Business Tax, And Fishery Resource Landing Tax, With Municipalities.

This resolution expresses Assembly support for House Bill 184, which would reallocate the way that revenue funds are distributed from the raw fish tax. Currently, the raw fish tax is divided between the State and the municipality in a 50-50 split. HB 184 would change that to 25% to the State and 75% to the municipality.

The Docks and Harbors Board recommended this action at its December 1, 2012 meeting.

I recommend this resolution be adopted.

c. Resolution 2600
A Resolution Expressing Assembly Support for Full Funding for the State of Alaska Municipal Harbor Facility Grant Program in the FY 2013 State Capital Budget.

This resolution would express Assembly support for funding the State of Alaska Department of Transportation Municipal Harbor Facility Grant Program in FY13. This $90 million grant program funds backlogs of harbor projects throughout Alaska. For FY13 the backlog projects list submitted to the State was about $23 million. In the past, the grant has provided somewhere between $5 and $7 million on an annual basis. This resolution encourages the Legislature to fund fully the $23 million submittal for FY13. The Governor included the full $23 million in his FY13 budget, which includes $2 million for Aurora Harbor projects.

The Docks and Harbors Board recommended this action at its December 1, 2012 meeting.

I recommend this resolution be adopted.

3. Transfers

a. T-932, Transferring $75,000 From Pavement Management Capital Improvement Project To The Hughes Way Improvements Fund.

Impact to Budget Action

This Transfer is a companion to Ordinance 2012-02 set for Public Hearing. Under the terms of the settlement agreement of the USE2011-0010 appeal, CBJ would agree to fund a portion of a Hughes Way construction project.

This transfer would move $75,000 from the existing Pavement Management Capital Improvement Project (CIP) into a new Hughes Way Improvements Fund.

Approval of this transfer is contingent upon Assembly adoption of Ordinance 2012-02.

The Public Works and Facilities Committee recommended this action at its January 23, 2012 meeting.

I recommend this transfer be approved.

4. Liquor Licenses

A. Liquor License Renewals

1. Beverage Dispensary - Tourism License #175: Q Enterprise Inc. d/b/a Breakwater Inn Restaurant & Lounge, location: 1711 Glacier Ave.

2. Package Store License #661: Thibodeau’s Market Inc. d/b/a Kenny’s Liquor Market, location: 619 Willoughby Ave.

3. Package Store License #521: Thibodeau’s Market Inc. d/b/a Home Liquor, location: 241 Front Street

4. Package Store License #1129: Thibodeau’s Market Inc. d/b/a Liquor Barrel, location: 5238 Glacier Hwy.

5. Package Store License #4422: Thibodeau’s Market Inc. d/b/a Thibodeau’s Valley Liquor, location: 9106 Mendenhall Mall Road

6. Restaurant/Eating Place License #3049: Valley Restaurant LLC d/b/a The Valley Restaurant, location: 9320 Glacier Hwy.

7. Restaurant/Eating Place License #848: Olivia Castaneda d/b/a Olivia’s De Mexico, location: 222 Seward Street

8. Restaurant/Eating Place – Public Convenience License #3643: Clay Kent & Cisco Ramos d/b/a Douglas Café, location: 916 3rd Street, Douglas

The above-listed liquor license renewals are before the Assembly to either protest or waive its right to protest these renewals. The Finance, Police, Fire, and Community Development Departments have reviewed the above businesses and found them to be in compliance with CBJ Code. In the event the Assembly does protest one or more of the above-mentioned liquor license renewals, CBJ Code 20.25 requires notice, with specificity regarding the nature and basis of the protest, to be sent to the licensee and provides the licensee an opportunity to exercise their right to an informal hearing before the Assembly.

I recommend the Assembly waive its right to protest the above liquor license renewals.

VIII. PUBLIC HEARING

A. Ordinance 2012-01
An Ordinance Amending The Land Use Code Relating To Development Near Eagle Nests.

Notice of Decision                                  Staff Report

This ordinance would repeal the Land Use Code restriction on development of property in the vicinity of eagle nests. Consistent with past practice, the CBJ has deferred to the U.S. Fish and Wildlife Service (USFWS) regarding conditions necessary to provide protection of bald eagles. Bald eagles were de-listed as an endangered species in 2007 and the prescriptive conditions previously required by the USFWS have been relaxed. This revision acknowledges the change in status and our past practice of deferring to the federal agency responsible for the protection of bald eagles. The Planning Commission recommended against adoption of this ordinance.

I recommend this ordinance be adopted.

 

B. Ordinance 2012-02(d)
An Ordinance Authorizing Hughes Way To Be Replatted And Developed In A Manner That Does Not Meet The Current Minimum Subdivision Standards Required By The Land Use Code And Authorizing Settlement Of The Keikkala Living Trust Appeal.

Attachment A

This non-code ordinance would allow the plat of Hughes Way to be processed as a minor subdivision, and exempt it from certain requirements of the Land Use Code, e.g., dimensional standards. The Planning Commission recommended approval of a non-code ordinance for Hughes Way in 2009. Adoption of this ordinance would resolve the pending Keikkla Living Trust appeal. Version (d) reflects minor changes made in response to negotiations with and among the parties to the settlement agreement.

I recommend this ordinance be adopted.

C. Ordinance 2011-11(Y)
An Ordinance Appropriating To The Manager The Sum Of $10,300 As Additional Funding To The Juneau Public Libraries For The Public Library Assistance, Regional Mail Services, And Continuing Education Grants. Grant Funding Provided By The Alaska Department Of Education.

Economic Impact Note

This ordinance is a housekeeping measure that would appropriate $10,300 to increase the FY12 adopted budget for three Library grants. At the time the FY12 budget was adopted, the exact amount of the grants was unknown and the amounts adopted were based on the best information available at that time. The actual grant awards have been received and are higher than originally estimated. Funding is provided by the Alaska Department of Education.

The adjustments are as follows:

1. The Public Library Assistance grant will be adjusted upward from a budgeted $19,000 to the amount received of $19,500, an increase of $500; and,

2. The Regional Mail Services grant will be adjusted upward from a budgeted $90,900 to the amount received of $96,200 an increase of $5,300; and,

3. The Continuing Education grant will be adjusted upward from a budgeted $3,000 to the amount received of $7,500, an increase of $4,500.

I recommend this ordinance be adopted.

D. Ordinance 2011-11(Z)
An Ordinance Appropriating To The Manager The Sum Of $50,000 As Grant Funding For Lighting Upgrades At The Juneau Arts And Culture Center. Grant Funding Provided By The Alaska Department Of Commerce, Community And Economic Development.

This ordinance would appropriate a $50,000 grant from the Alaska Department of Commerce, Community and Economic Development for lighting upgrades at the Juneau Arts and Culture Center.
These funds would be used to remove and replace existing house lights with energy efficient fluorescent lights for the high bay spaces, and install conduit and cable extensions that allow for future installation of a modest theatrical lighting system.

The Public Works and Facilities Committee recommended this action at its November 7, 2011 meeting.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Marine Passenger Fee Reappropriation Request

B. Annexation Funding Request

C. Liquor License Protest Recommendation

1. Beverage Dispensary License #2844: Sandbar Inc. d/b/a The Sandbar location: 2525 Industrial Boulevard, Juneau

CBJ staff is in the process of reviewing liquor licenses for the 2012 renewal cycle and any licenses that are beginning the second year of its two-year period for compliance. Alaska Statute 04.11.480 provides for the local governing body to protest the continued operation of a liquor license if there are grounds for a protest by the local governing body. A copy of the associated CBJ Code sections and Alaska Statutes are enclosed in your packet for your information.

The Finance Department has indicated that the above licensed business owes an outstanding sales tax delinquency of $261.85 as of January 18, 2012 and is delinquent in filing sales tax returns for the months of August, September, October, and November 2011. Due to these delinquencies, the Finance Department is recommending the Assembly protest the continued operation of this liquor license until these returns and the associated taxes, interest, and penalties are brought current.

The required certified notice was sent to the business and a copy is provided in your packets. Should the business request it, an informal hearing before the Assembly should be conducted at this time.

I recommend the Assembly protest the continued operation of this liquor license until the outstanding sales tax delinquencies are brought current and these returns and associated taxes, interest, and penalties are brought current.

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



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