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, April 23, 2012, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2012-11

 

 

I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

IV. APPROVAL OF MINUTES

A. April 2, 2012 – Regular Assembly Meeting 2012-07
B. April 4, 2012 – Special Assembly Meeting 2012-08
C. April 11, 2012 - Special Assembly Meeting 2012-09

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 2012-23
An Ordinance Providing For The Issuance And Sale Of A Hospital Revenue Refunding Bond In The Aggregate Principal Amount Of Not To Exceed $28,200,000; Providing For The Form And Terms Of The Bond; Providing A Method Of Payment Therefore; And Reserving The Right To Issue Revenue Bonds On A Parity With The Bond Upon Compliance With Certain Conditions
.

This ordinance would authorize the issuance of up to $28.2 million in bonds to refund a Bartlett Regional Hospital 2004 revenue bond issue. The original $28.845 million CBJ revenue bond was approved for issuance on June 28, 2004 pursuant to ordinance 2004-24. The amount being refunded is $25.57 million. If CBJ issues the refunding bonds in August 2012, the refunding will result in an estimated total savings of $829,000 over the remaining life of the bonds. However, it is our intention to delay the issuance of these bonds as long as practical to maximize the savings. Obtaining the authorization now allows CBJ to hold the refunding transaction until it is most advantageous.

The new bonds will be issued through the Alaska Municipal Bond Bank Authority (AMBBA) to gain maximum benefit. The term of the new issue will not change. BRH will pledge its revenues to the repayment of the revenue bond debt. BRH has been meeting its debt service obligations for the past 7 years.

The BRH Board requested moving forward with this refunding proposal at its meeting of February 13, 2012.

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

b. Ordinance 2012-24
An Ordinance Amending The Land Use Code Regarding Zoning Districts.

This ordinance would increase residential density limits and height limits in the Light Commercial, General Commercial, and Mixed Use 2 zoning districts, as well as reducing the minimum lot sizes in the Mixed Use and Mixed Use 2 zoning districts to reflect the minimum lot dimensions in those zones.

The proposed ordinance addresses the easiest regulatory bottlenecks to developing market-rate affordable housing in Juneau. Additional changes to the Land Use Code will be proposed following the completion of the Comprehensive Plan Update process.

The Lands Committee heard and recommended this ordinance at its April 9, 2012 meeting.

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

c. Ordinance 2011-10(A)(b)
An Ordinance Appropriating And De-Appropriating Funds For FY12 School District Operations

This ordinance would make the following FY12 School District budget changes:

General Operations $ 2,712,800
Special Revenue (193,300)
Total Budget Changes $ 2,518,500

Funding for the changes is provided from the following:

State Foundation Funding $ (92,700)
State Contribution to PERS/TRS 2,292,500
State Grants 140,000
Federal Grants (12,900)
User Fees (186,600)
CBJ Support To School District General Operations (21,400)
Support From Other Funds 64,200
School District General Operation Fund Balance Usage 549,400
School District Special Revenue Fund Usage (149,800)
School District – Other Fund Balance Usage (64,200)
Funding Sources for Changes $ 2 ,518,500

These adjustments are requested by the School District due to student enrollment falling short of projections, which reduces both the State Foundation Funding and CBJ allowable support to Education for operations, to an increase in the State contribution for PRS/TRS and other changes in user fees and State and Federal grants.

This ordinance would appropriate additional expenditures for General operations, and de-appropriates expenditures in Special Revenue operations.

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

2. Resolutions

a. Resolution 2608
A Resolution Authorizing the Manager to Convey Lot 8, Block A, Glacierview Subdivision, to the Juneau Housing Trust, Inc., At Less Than Market Value, In Support of the Juneau-Douglas High School Home Building Program.

Exhibit A

This resolution would authorize the disposal of Lot 8, Block A, Glacierview Subdivision to Juneau Housing Trust at less than fair market value. The property would be sold to Juneau Housing Trust, a partner to the JDHS Home Building Program, for the amount necessary to satisfy delinquent property taxes, plus any other expenses or demolition costs incurred by the CBJ to convey the property for redevelopment. These costs are anticipated to be less than market rate for the property, resulting in a cost savings to the project. The Juneau Housing Trust will retain ownership of the land and sell the residential structure to income-qualified owners in perpetuity.

The Lands Committee adopted a motion of support to the Assembly at its February 27, 2012 meeting, and the Planning Commission recommended this action at its March 27, 2012 meeting.

I recommend this resolution be adopted.

b. Resolution 2609
A Resolution Authorizing the Manager to Grant an Easement to the State of Alaska, Department of Transportation and Public Facilities, at Stephen Richards Memorial Drive.

The Alaska Department of Transportation and Public Facilities (ADOT/PF) has requested a permanent right-of-way easement for approximately 907 square feet of municipal property at no cost for a safety improvement project at the intersection of Stephen Richards Memorial Drive and Mendenhall Loop Road. The project includes construction of a right turn lane from southbound Mendenhall Loop Road to Stephen Richards Memorial Drive. The City and Borough received title to the property (Block A, Field Acres Subdivision) from a private donation. The Assembly designated the property as open space due to the encumbrances of Duck Creek, the adjoining flood plain, and existing right-of-way and power line easements along Mendenhall Loop Road.

The Lands Committee, at its January 23, 2012 meeting adopted a motion of support to the Assembly to adopt a resolution authorizing the requested easement at no cost. At its February 28, 2012 meeting, the Planning Commission recommended that the Assembly authorize the requested easement.

I recommend this resolution be adopted.

c. Resolution 2610
A Resolution Adopting The City And Borough Capital Improvement Program For Fiscal Years 2013 Through 2018, And Establishing The Capital Improvement Project Priorities For Fiscal Year 2013.

Attachment

This resolution would adopt the Capital Improvement Program for Fiscal Years 2013 through 2018, as required by Charter Section 9.4, and lists the capital projects that will be undertaken in FY 2013 using CBJ sales tax funds and Marine Passenger Fees.

The Capital Improvement Program and list of projects were reviewed and approved by the Public Works and Facilities Committee at its meeting of March 12, 2012.

The Charter requires that a public hearing be held on the FY13 capital improvements program by May 1, 2012, and adoption by June 15, 2012.

I recommend this resolution be referred to the Assembly Finance Committee for further review.

d. Resolution 2611
A Resolution Renaming The Douglas Boat Harbor To The “Mike Pusich Douglas Harbor.”

In October 2011, the Douglas Advisory Board recommended the Docks and Harbors Board rename the Douglas Harbor in recognition of a Douglas resident and Alaskan pioneer, Mike Pusich. The Port Director established a facility naming process, modeled after the Parks & Recreation Department policy, which was adopted by the Docks and Harbors Board in December 2011. The process calls for a 2/3 majority vote before the recommended facility name is referred to Assembly for a naming resolution. The Docks and Harbors Board heard public testimony at its regular Board meeting on March 29, 2012. All written and spoken testimony was in strong support to rename Douglas Harbor in honor of Mike Pusich. The Docks and Harbors Board voted to recommend to the full Assembly to rename Douglas Harbor, the “Mike Pusich Douglas Harbor.”

I recommend this resolution be adopted.

e. Resolution 2612
A Resolution De-Appropriating $11,225 From The Juneau Police Department’s Operating Budget.

This resolution would de-appropriate $11,225 in Alaska Department of Transportation and Public Facilities funding, from the Juneau Police Department’s FY12 operating budget.

The funding had been awarded for the purchase of and training on 3D crash reconstruction software. The JPD was subsequently informed that no money was available for the purchase of the software. Therefore, JPD is declining the grant for training on the software.

I recommend this resolution be adopted.

3. Liquor License

a. Liquor License Renewal

1. Restaurant/Eating Place License #4405: Tides Complex, Inc., d/b/a Dragon Inn location: 5000 Glacier Hwy.

The above-listed liquor license renewal is before the Assembly to either protest or waive its right to protest. The Finance, Police, Fire, and Community Development Departments have reviewed the above business and found it to be in compliance with CBJ Code. The one discrepancy staff discovered when reviewing this license was that the business license name did not match up with the State of Alaska Business Licensing Division registered name. When staff brought this to the attention of the Alcohol Beverage Control staff, the ABC staff acted to request the licensee to submit a transfer of ownership application to correctly reflect the current ownership and we should be received that application for local governing body review as soon as ABC has received the application. For now the license renewal is before the Assembly for action.

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 renewal.

VIII. PUBLIC HEARING

A. Ordinance 2012-18
An Ordinance Authorizing The Port Director To Negotiate And Execute A Lease Of Alaska Tidelands Survey No. 893, Located At Approximately 3890 North Douglas Highway, To Juneau Alaska Communications, LLC.

Exhibit A                 

This ordinance would lease ATS 893, Plat 83-222, Juneau Recording District, First Judicial District, State of Alaska containing 0.3323 acres (14,461.92 square feet) to Juneau Alaska Communications, LLC (lessee). The tidelands property is located at approximately 3890 North Douglas Highway and has been used by the lessee to maintain a commercial radio antenna. The previous 25-year lease expired on February 27, 2011 and the current lease rent is $1,250 per year. The property has been appraised by Horan and Company, and the Docks and Harbors Board recommends accepting the appraised annual lease rent of $2,170.95 plus sales tax. The lessee requests a lease term of 35 years.

The Lands Committee heard and approved this ordinance at it’s April 9, 2012 meeting.

I recommend this ordinance be adopted.

B. Ordinance 2012-19
An Ordinance Amending The General Provisions Code Regarding Services Provided By Roaded Service Area Number 9.

This ordinance is housekeeping in nature and amends the description of the services provided by Roaded Service Area #9. There are two wording changes recommended:

• First, it would remove the word “subsidy” for public transportation services. In past years, the Transit activities were in a separate operating fund and the reference to subsidy was correct. This past year, in compliance with Governmental Accounting Standards Board pronouncement 54 and CBJ Resolution 2594, adopted on November 28, 2011, the Transit services are now included within the Roaded Service Area.

• Second, it would remove the reference to “fire capital acquisitions.” CBJ practice has been to have the fire apparatus provided by funding support from the Fire Service Area and EMS apparatus from the General Fund. The funding support is placed in CBJ’s Equipment Replacement Fund. Removing this reference in the Roaded Service Area deletes a funding reference conflict.

I recommend this ordinance be adopted.

C. Ordinance 2012-20
An Ordinance Appropriating Funds From The Treasury For FY13 City And Borough Operations.

This ordinance would appropriate $319,525,900 for the City and Borough of Juneau’s FY13 operating budget, excluding the School District. It is necessary to appropriate all transfers between funds that support operations, debt service, and capital projects as well as the associated expenditure within the funds themselves. These transfers account for $90,824,800 of the FY13 operating budget. Excluding the transfers and School District, the CBJ FY13 operating budget, debt service, and capital projects is $228,701,100.

The Charter requires that a public hearing be held on the FY13 operating budget by May 1, 2012, and adoption by June 15, 2012.

I recommend this ordinance be referred to the Assembly Finance Committee for further review.

D. Ordinance 2012-21
An Ordinance Appropriating Funds From The Treasury For FY13 School District Operations.

The ordinance before you, 2012-21, appropriating money for FY13 School District operations is incorrect as a result of actions taken by the State legislature on April 15, 2012. Passage of SB182 reduced the maximum amount of local funding allowed under the State’s Education Foundation Funding Formula from $25,693,000 to $23,676,500. The reduction in local funding is offset by an increase in the amount of State foundation funding the School District will receive.

The School District is meeting on April 24, 2012 to determine the full impact of these changes and will present their revised FY13 budget request to the Assembly Finance Committee on May 2, 2012.

State Statute requires the Assembly to determine the total amount of local educational funding support to be provided and provide notification of the support to the School Board within 30 days of the School District’s budget submission. To meet this timing provision, it is necessary for the Assembly to determine the amount of funding and provide notice in the month of April. This amount cannot subsequently be reduced, unless the amount exceeds the State funding CAP, but it can be increased. If the Assembly does not set the amount and furnish the School Board with notice within 30 days, the amount requested by the School District is automatically approved. By Charter, the Assembly is required to appropriate the School District’s budget no later than May 31, 2012.

I recommend that the Assembly state, by motion, the amount of local funding to be provided to the School District be set at $23,676,500, the maximum amount allowed under the State’s Education Foundation Funding Formula and that this ordinance be referred to the Assembly Finance Committee for further review.

E. Ordinance 2012-22(b)
An Ordinance Establishing The Rate Of Levy For Property Taxes For Calendar Year 2012 For The Budget For Fiscal Year 2013.

This ordinance would establish the mill rates for property taxes for 2012, which funds the City and Borough of Juneau’s FY13 operating budget. The Charter requires the assembly to adopt, by ordinance, the tax levies necessary to fund the budget before June 15.

The mill levies presented in this ordinance support the Manager’s FY13 Proposed Budget that is currently being reviewed by the Assembly Finance Committee. As part of the budget review process, the Assembly Finance Committee will review and recommend, to the Assembly, the final mill levies. The final mill levies must be adopted on or before June 15.

This ordinance proposes a total mill levy of 10.89; the components of which are:

Area Millage
Roaded Service Area 2.25
Fire Service Area 0.40
Areawide
Operational 6.95
Debt Service 1.29
Total 10.89

I recommend this ordinance be referred to the Assembly Finance Committee for further review.

F. Ordinance 2011-11(AG)
An Ordinance Transferring Of $21,877 To The Open Space Waterfront Land Acquisition Capital Improvement Project, From Unexpended FY 11 Marine Passenger Fees Budgeted To The General, Visitor Services, And Roaded Service Area Funds.

This ordinance would transfer $21,877 of unexpended Marine Passenger Fees (MPF) revenues budgeted for specific purposes in FY11 and not expended by the fiscal year end to the Open Space Waterfront Land Acquisition CIP. This transfer is consistent with the Assembly’s direction on the disposition of unexpended MPF funds.

The FY11 transfer consists of:

• Downtown Ambassador Program Funds $ 1,811
• AJ Dock Federal Security Grant Match $ 16
• Downtown Sidewalk Maintenance $ 9,425
• JCVB Crossing Guard Program $ 10,625

For accounting purposes, the funds will first be refunded to the Marine Passenger Fee Fund and then be transferred to the Open Space Waterfront Land Acquisition CIP.

I recommend this ordinance be adopted.

G. Ordinance 2011-11(AH)
An Ordinance Appropriating To The Manager The Sum Of $5,000,000 As Funding For Statter Harbor Improvements, Grant Funding Provided By The Alaska Department Of Transportation And Public Facilities.

This ordinance would appropriate a $5 million grant from the Alaska Department of Transportation/Public Facilities (ADOT/PF) under the Municipal Harbor Grant Program to fund improvements at Statter Harbor. The project would include deferred maintenance improvements at the existing moorage facility and the construction of a new boat launch ramp with associated uplands staging and parking.

The grant requires a 50/50 match, which would be provided by sales tax revenues obtained from 2005 and 2007 1% sales tax funds. ADOT/PF has issued a letter of award that will be followed up with a grant contract after bids are received for the project on April 10, 2012. The grant contract will be available prior to the hearing of this ordinance.

The CIP/Planning Committee of the Docks and Harbors Board reviewed this ordinance at its March 22, 2012 meeting and recommended approval. The Docks and Harbors Board heard and approved this item at its March 29, 2012 meeting.

The Public Works and Facilities Committee heard and approved this ordinance at its (insert date) meeting.

I recommend this ordinance be adopted.

H. Ordinance 2011-11(AI)
An Ordinance Appropriating To The Manager The Sum Of $280,000 As Funding For The State Homeland Security Program, Grant Funding Provided By The State Of Alaska Department Of Military And Veterans Affairs.

Award Letter             PBD Report

This ordinance would appropriate $280,000 from a reallocation of grant funds from the 2009 State Homeland Security Grant Program, 2009-SS-T9-0007. These grant funds require no local match.

The funds being appropriated will be used to purchase a trailer-mounted, diesel-fired generator with enclosures and accessories for the Centennial Hall Emergency/Standby Generator project.

This appropriation is for equipment that supports local and regional need for an emergency back-up generator to support emergency shelter operations during power outages. Funding this project supports Local, and State Preparedness Strategy, Homeland Security Strategy goals and objectives, Target Capabilities, and National Priorities through strengthening preparedness planning.

The funding source is reallocated funds that have a very short performance period and must be encumbered by June 30, 2012.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Export Manufacturing Exemption

Alaska Glacier Seafood                  Taku Smokeries                        AK Bev Group

The following three organizations have timely applied with the Assessor’s Office for 2012 Export Manufacturing property exemptions. The code places the authority for approving Export Manufacturing Exemption requests with the Assembly.

CBJ 69.10.020(10) provides for a phased property assessment exemption for qualifying manufacturing properties. If approved by the Assembly, the property would receive a declining five-year percentage exemption from the property’s market value. The amount of the exemptions would be 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

1. Alaska Glacier Seafoods

Property Assessed Value-
2012 assessed value machinery/equip. exemption request $651,723.00
Assessed value from previous year exemptions $229,532.00
Total exemptions on 2012 Assessment $881,255.00

Property Tax -
2012 property tax exemption request $6,875.68
Property tax on previous year exemptions $2,421.56
Total tax exempted $9,297.24

2. Taku Smokeries

Property Assessed Value-
2012 assessed value machinery/equip. exemption request $44.920.00
Assessed value from previous year exemptions $403,046.00
Total exemptions on 2012 Assessment $447,966.00

Property Tax -
2012 property tax exemption request $476.91
Property tax on previous year exemptions $4252.13
Total tax exempted $4726.04

3. Alaska Brewing Company, LLC

Property Assessed Value-
2012 assessed value machinery/equip. exemption request $1,651,404.00
Assessed value from previous year exemptions $1,382,669.00
Total exemptions on 2012 Assessment $3,034,073.00

Property Tax -
2012 property tax exemption request $17,422.31
Property tax on previous year exemptions $14,587.16
Total tax exempted $32,009.47

The Assessor’s Office has reviewed the Export Manufacturing Exemptions being requested and determined that the properties meet the code requirements for the exemption.
I recommend approval of these exemption requests.

B. Docks and Harbors Bid Award
Statter Harbor Moorage Improvements Bid #DH11-177

Bids were opened on April 17, 2012. The bid protest period expired at 4:30 p.m. on April 19, 2012. Results of the bid opening are as follows:

RESPONSIVE BIDDERS TOTAL BID
Pacific Pile and Marine, LP $8,258,600.00
Western Marine Construction, Inc. $8,432,200.00
Advanced American Construction, Inc. $9,870,900.00
Manson Construction Co. $11,264,335.00
Engineer’s Estimate $8,813,000.00

Project Manager: Gary Gillette, Port Engineer

Project Description: This Project consists of deferred maintenance improvements at the existing float system and breakwater; demolition and removal of DeHart’s Marina; installation of new floats to replace moorage at DeHart’s; and other related work.

Funding Source: CBJ Sales Tax Proceeds, ADOT Municipal Harbor Grant, Legislative Appropriation

Total Project Funds: Approximately: $11,000,000.00

Construction: $8,813,000.00

Construction Contingency: Approximately $615,423.00

Design, Permitting, Construction Administration, Inspection, and D&H Project Administration: Approximately $1,500,000.00

The Docks and Harbor Board recommended this bid award at a special public meeting on April 17, 2012.

I recommend award of this project to Pacific Pile and Marine, LP in the total bid amount, for a total award of $8,258,600.00.

C. Airport Rates and Fees Regulation Title 7, Chapter 10

In response to a projected budgeted deficit for FY13, the Airport has adjusted its rates and fees to help offset the shortfall. Rates and fees are established through the Airport’s financial model. The model determines which revenues (rates) in various cost centers require adjustment to balance the budget; in this case the Airfield revenues needed to be adjusted to cover Airfield expenses.
Rate increases are proposed for aircraft Fuel Flowage Fees and Landing Fees for large aircraft. The anticipated increase to annual revenues for FY 13 is $263,100. A detailed description of the rates and fees regulation changes is addressed in the fiscal note accompanying the regulation.
The Airport received no comments during the public comment period from March 16, 2012, through April 6, 2012. The Airport Board approved the proposed Rates and Fees Regulation (as presented) at its April 11, 2012 meeting. The Airport Rates and Fees Regulation changes are budgeted to take effect July 1, 2012.
CBJ Ordinance 01.60.260 provides the Assembly with three courses of action:

1. The Assembly may take up consideration of the regulation and approve it;
2. The Assembly may choose not to take up consideration of the regulation, in which case the regulation shall be deemed approved; or
3. The Assembly may disapprove the regulation. If the Assembly disapproves the regulation, it shall return the regulation to the Airport Board or direct the regulation be considered as an ordinance or resolution.

If the Assembly returns the regulation, it may state the reasons for disapproval but shall not establish explicit conditions for subsequent approval or direct particular amendment to the regulation.

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. Waterfront Land Acquisition Update

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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