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, August 13, 2012, 7 p.m.
Assembly Chambers – Municipal Building
Regular Meeting No. 2012-22


I. FLAG SALUTE

II. ROLL CALL

III. SPECIAL ORDER OF BUSINESS

A. Law Department Intern – Paul Peterson

IV. APPROVAL OF MINUTES

B. July 16, 2012 – Regular Assembly Meeting 2012-20
C. August 1, 2012 – Special Assembly Meeting 2012-21

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 2012-28
An Ordinance Providing For The Issuance And Sale Of A Port Revenue Bond In The Aggregate Principal Amount Of Not To Exceed $29,000,000; Providing For The Form And Terms Of The Bond; Providing A Method Of Payment Therefor; 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 and sale of up to $29 million in Port Revenue bonds. The bond funding is a portion of total revenues needed to complete the cruise ship berth enhancement project and related uplands improvements.
The bonds would be issued for a 19-year term. The terms of the bond require CBJ to pledge the local Port Development Fee (PDF) revenue to fund the debt service. Debt service would be paid from FY14 to FY33 revenues. The estimated total cost of the debt service, based on an average interest rate of 4.37%, is $42.37 million.

The Port Revenue Bonds will be classified as “private activity bonds” (PAB) under federal tax law, TEFRA. This is determined based on the primary user of the port facility being private cruise line corporations. PABs require a public hearing to permit the public to comment on the proposed bond issue. This hearing is currently schedule for August 24, 2012.

An update of the project costs and revenues was presented to the Finance Committee at its August 1, 2012 meeting. Total project cost is estimated at $88.1 million. The total grant, PDF, and State Marine Passenger Fee revenues allocated to the project are $59.1 million (plus bond funds). To date, including the FY13 budget, $42.6 million has been appropriated to the project.

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

b. Ordinance 2012-31(b)
An Ordinance Amending The Land Use Code Relating To Restrictions On Rezonings.

This ordinance would amend the Land Use Code to require that rezonings must be in substantial conformance with the land use maps of the Comprehensive Plan, but that rezonings need not exactly match the designations or the boundaries. The purpose of this ordinance is to improve the ability of Community Development, the Planning Commission, and the Assembly to consider the Comprehensive Plan land use maps in rezoning requests without requiring strict application of those maps to the zoning map set.

The Planning Commission reviewed a draft version of this ordinance at its June 12, 2012 meeting. The Lands Committee also reviewed the draft ordinance at its July 23, 2012. Both entities were supportive of the change to the code section.

Version b replaces the phrase “substantial conformance with the intent of the land use maps” with “substantial conformance with the land use maps” to narrow the scope of flexibility while retaining some degree of interpretative ability.

I recommend this ordinance be introduced, sent to the Committee of the Whole on August 20, 2012, and then set for public hearing at the next regular Assembly meeting.

c. Ordinance 2012-34
An Ordinance Amending The Building Regulations Code Relating To The Board Of Appeals.

This ordinance would help provide a greater applicant pool for the Building Code Board of Appeals, while still requiring specialized knowledge or expertise as to building code issues. It would delete the requirement that Board members be in specified professions (attorney, engineer, etc.), and make those into desirable characteristics for applicants. Additionally, it would remove the requirement that the Board appoint a secretary, as that role has been assumed by the Clerk’s office, and it would remove the citation to the CBJ Appellate Code, as much of 01.50 is not directly applicable to appeals before boards and the citation was causing confusion amongst appellants. Like other board appeal processes contained in the code, the ordinance would require the Building Code Board of Appeals to adopt Rules of Procedure applicable to appeals before it.

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

d. Ordinance 2012-35
An Ordinance Amending Ordinance Serial No. 2012-10 Regarding the Second Series of Bonds Authorized Thereunder.

This ordinance would amend Section 3 of Ordinance 2012-10, adopted March 5, 2012. The original ordinance authorized the issuance of $19 million in refunding bonds to call two prior bond issues: 1) $9.1 million of 2003A school bonds and 2) $9.3 million of 2003B General Obligation (GO) Bonds. It was subsequently determined by bond counsel that this refunding should be accomplished in two separate bond issues. The first refunding for the 2003A bonds was completed in May 2012. The second refunding for the 2003B bonds would be scheduled for late September or early October 2012.

The original Maturity Schedule (required by the CBJ Charter) in ordinance 2012-10 requires that the 2003B refunding bonds have principal maturities in 2012 and 2013. Given the delay in issuing the bonds, there will be no principal maturity in those years. Ordinance 2012-35 includes a revised bond maturity schedule, detailing principal payments from 2014 to 2023. The original ordinance (Section 2 – Savings Target) required a minimum savings to be realized from issuing refunded bonds of $370,000. The current estimated savings is $874,000.

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

e. Ordinance 2011-11(AQ)
An Ordinance Appropriating To The Manager The Sum Of $4,057,161 To Fund The City And Borough Of Juneau’s Fiscal Year 2012 Public Employee Retirement System Contribution, Funding Provided By The Alaska Department Of Administration.

This is a housekeeping ordinance that would appropriately reflect, for accounting purposes, the State’s 11.49% Public Employee Retirement System (PERS) contribution for FY12. This ordinance would increase the personnel benefits citywide by $4,057,161 to reflect the costs paid directly by the State into PERS on behalf of the CBJ. The Alaska Department of Administration’s general fund will be

funding the appropriated amount set by HB 108, passed during the 2011 legislative session. Adoption of this ordinance will not impact the CBJ’s net budget.

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

f. Ordinance 2012-20(I)
An Ordinance Appropriating To The Manager The Sum Of $4,408 As Partial Funding For Two City Employees To Attend An Historic Preservation Conference, Grant Funding Provided By The Alaska Department Of Natural Resources.

This ordinance would appropriate $4,408 as partial funding to send two CBJ employees to an historic preservation conference in October 2012. Grant funding is provided by the Alaska Department of Natural Resources. This travel and training grant is a 60/40 match. The State of Alaska would reimburse CBJ for conference registration fees, per diem, airfare, lodging, and transportation costs. CBJ would provide the 40% match through staff time. The estimated total cost of the project is $7,347.

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

g. Ordinance 2012-20(J)
An Ordinance Appropriating To The Manager The Sum Of $6,720 As Funding For Commercial Motor Vehicle Inspections, Grant Funding Provided By The Alaska Department Of Transportation And Public Facilities.

This ordinance would appropriate a $6,720 grant from the Alaska Department of Transportation and Public Facilities to provide commercial motor vehicle inspections.

These inspections are intended to determine the appropriateness of driver credentials, as well as the roadworthiness of commercial vehicles, with the ultimate goal of improving commercial vehicle safety in Juneau.

There is no match requirement for this grant.

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

h. Ordinance 2012-20(K)
An Ordinance Appropriating To The Manager The Sum Of $7,550 As Partial Funding For Historic Preservation Planning, Grant Funding Provided By The Alaska Department Of Natural Resources.

This ordinance would appropriate $7,550 in Federal pass-through funds for historic preservation planning. Funding would be provided by the Alaska Department of Natural Resources.

These funds would be used for the development of a five-year strategic and operational plan for the adaptive re-use of the Juneau Memorial Building as a working museum. This plan would address the need for improving and increasing space for collections, exhibits, archives, curatorial work, and visitor access within the parameters of the building’s interior and exterior envelope. Strategic goals would work on connecting collections, exhibits, and public outreach to historic preservation.

The total project cost is $12,583.33 and requires a 40% CBJ match, which would be provided through staff time.

The Historic Resources Advisory Committee (HRAC) listed Finishing the City Museum’s Long Range Plan as a number one goal for 2012 at its November 2, 2011 goal-setting meeting. The HRAC recommended submission of this grant at its November 30, 2011 meeting.

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

i. Ordinance 2012-20(L)
An Ordinance Appropriating To The Manager The Sum Of $1,150,000 To Purchase The Leasehold Interest In The Juneau Medical Center Building, Funding Provided By The Bartlett Regional Hospital Enterprise Fund Balance.

This ordinance would appropriate $1.15 million to purchase the leasehold interest for the Juneau Medical Center (JMC) building.

In 1977, the CBJ entered into a 55-year ground lease with Juneau Medical Center Partnership to facilitate the development of a privately owned outpatient building on the hospital campus. In April 2012, the Bartlett Regional Hospital (BRH) Board recommended that the Assembly purchase the leasehold for the JMC building for $1.15 million. This purchase would provide BRH with space needed for outpatient care; maintain positive cash flow as a medical office building; return control of a valuable piece of the campus to the hospital; provide the opportunity for future facility improvements with redevelopment of the JMC site; and is a unique opportunity for acquisition that may not arise again for many years.

Funding would be provided by the BRH Fund balance, which, before this appropriation, was projected to be $16 million at the end of FY13.

At its July 23, 2012 meeting, the Assembly Lands Committee recommended this action.

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

j. Ordinance 2012-20(M)
An Ordinance Appropriating To The Manager The Sum Of $47,808 As Funding For A Mobility Manager, Grant Funding Provided By The Alaska Department of Transportation and Public Facilities.

This ordinance would re-appropriate $47,808 in unexpended FY12 funds from the Mobility Management grant. The original FY12 appropriation was $50,000 and the Public Works and Facilities Committee recommended appropriation of the original grant at its September 19, 2011 meeting.

The State has amended the grant to allow for an extension through June 30, 2013.

The Mobility Manager grant provides funds to coordinate resources and increase support of Coordinated Human Services Transportation providers.

A local match of $8,220 is required, of which $360 was expended in FY12. The match will be provided in-kind by CBJ staff time dedicated to Mobility Management activities.

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

k. Ordinance 2012-20(N)
An Ordinance Appropriating To The Manager The Sum Of $14,343 As Funding For The Local Emergency Planning Committee, Grant Funding Provided By The State Of Alaska, Department Of Military And Veterans Affairs.

This ordinance would appropriate a $14,343 grant from the Alaska Department of Military and Veterans Affairs for the Juneau Local Emergency Planning Committee (LEPC).

These funds would be used to support the goals and activities of the City and Borough of Juneau LEPC:

• Public Education and Outreach
• Training Program Development
• Marketing of LEPC Events
• Printing/ Copying of LEPC Materials
• Personnel services to help manage the LEPC.

There is no match requirement for this grant.

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

 

2. Resolutions

a. Resolution 2617
A Resolution Ratifying The Labor Agreement Between The City And Borough Of Juneau And The Marine Engineers Beneficial Association, AFL-CIO.

Change Summary

This resolution would ratify the Marine Engineers Beneficial Association (MEBA) contract, if it receives an affirmative ratification vote by the MEBA membership. The final vote will be tallied on Monday, August 13. If ratified, this 11-month contract would become effective upon the date of signing, and expire on June 30, 2013.

The economic terms of the contract include a 1% general increase, adding three additional steps to the existing salary schedule, and increasing the rate of standby pay $0.50 an hour. These economic terms are effective July 2, 2012. The fiscal impact for FY13 is $231,700. The fiscal impact for FY14 is $246,250. There is no change in either the employer or the employee contributions for health insurance coverage.

Minor housekeeping changes were made throughout the contract, and a labor management committee for training and certification issues would be created for the Wastewater and Water Utilities.

I recommend this resolution be adopted.

b. Resolution 2622
A Resolution Adopting Revisions To The Personnel Rules.

Exhibit A

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 revised rules are set forth in the attachment to the resolution.

These revisions are proposed to align the Personnel Rules with the changes recently made in the General Government bargaining unit agreement with MEBA.

Changes include a 1% general increase to the wage scale, increasing standby pay by $0.50 an hour, and the addition of steps "N", "O", and "P" to the wage schedule. The total cost impact of these changes is $260,600 for FY 13 and $262,400 for FY 14.

There are other minor housekeeping changes included in the revisions to clarify furlough language, the calculation of holiday pay for part-time employees, and how the Health Rewards Program is administered. These changes are consistent with current practice.

I recommend this resolution be adopted.

 

3. Liquor License

1. Liquor License Transfer of Ownership and DBA Name Change
Beverage Dispensary License #1081, location 11806 Glacier Highway, Juneau
Transfer From: Squires Rest, LLC, d/b/a Squires Rest
Transfer To: Auke Bay Inn, Inc., d/b/a Auke Bay Inn


2. Liquor License Transfer of Ownership, Location, DBA Name Change and application for Restaurant Designation Permit
Beverage Dispensary License #4349
Transfer From: Senate Partnership, Inc. (no dba and no premises)
Transfer To: Fishbone, LLC d/b/a Rockwell, location 117 Franklin Street, Juneau

The above-listed liquor license transfers are before the Assembly to either protest or waive its right to protest, and the application for a Restaurant Designation Permit is before the Assembly for approval or denial. 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 licenses, CBJ 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 actions.

VIII. PUBLIC HEARING

A. Ordinance 2012-27
An Ordinance Amending The Marine Passenger Fee Code.

The current CBJ Marine Passenger Fee (MPF) was enacted by initiative in 1999. This ordinance would make a number of housekeeping changes to the MPF code to update it and keep it in line with the Maritime Security Act of 2002. It would apply the fee to smaller vessels (those carrying more than 20 passengers), and adjust the uses to which the fee can be applied. This ordinance includes a delayed effective date of January 1, 2013, to allow the industry to adjust to the changes.

This ordinance was discussed at the July 23, 2012 Committee of the Whole meeting.

I recommend this ordinance be adopted.

B. Ordinance 2012-29
An Ordinance Authorizing The Manager To Execute A Lease Of A Fraction Of Lot 1, U.S. Survey 3853, Located At The West Juneau Reservoir Site On Douglas Island, To DCS Tower Sub, LLC, For The Operation, Maintenance, And Leasing Of An Existing Communications Tower/Facility.

Notice of Recommendation               Exhibit A

This ordinance would authorize the Manager to execute a lease with DCS Tower Sub, LLC, (DCS) for the purpose of maintaining, operating, and leasing an existing wireless communications tower/facility located at the West Juneau reservoir site on Douglas Island. The proposed terms and conditions of this lease are similar to those recently approved by the Assembly for the Atlas Tower and ACS leases, allowing DCS to sublease while sharing the revenues from subleasing with the CBJ. The lease would be executed for a term of five years, with three five-year renewals. The new lease document would update the rent and bring terms and conditions in line with current CBJ leasing practices.

The Planning Commission and the Assembly Lands Committee recommended approval of the lease at the meetings of June 12, 2012 and July 2, 2012, respectively. The Planning Commission, in its Notice of Recommendation (included in packet), suggested two conditions relating to color and review of electromagnetic frequency levels. The Assembly Lands Committee did not include those suggestions in its approval recommendation.

I recommend this ordinance be adopted.

C. Ordinance 2012-30
An Ordinance Authorizing The Port Director To Negotiate And Execute A Lease To Nowell Avenue Development, Of Alaska Tidelands Survey No. 123, Lot 2, Located At Gastineau Channel, Juneau, Alaska, ADL 1799 At Approximately "0 Douglas Highway."

Exhibit A

The Docks and Harbors Department advertised Alaska Tideland Survey 123, Lot 2, as available for lease. The Nowell Avenue Development, LLC, application was the only application received. The lease application was approved by the Docks and Harbors Board Operations Committee on November 15, 2011 and an appraisal was ordered at the expense of the applicant. On January 24, the Docks and Harbors Board Finance Committee recommended an annual rent of $2,271.65, based on the appraisal.

The Board approved the lease at its January 26, 2012 meeting and the lease was forwarded to the Law Department for an ordinance to be drafted. Law determined the application failed to acknowledge the reason for sub-leasing. Nowell Avenue Development was contacted, and on March 9, 2012, Doug Trucano indicated the purpose for leasing is general use and they do not intend to sublease. The Board approved the revised request on April 26.

The Lands Committee recommended this action at its June 11 meeting.

I recommend this ordinance be adopted.

D. Ordinance 2012-32
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 Sale 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 Five Years, The Proceeds Of Which Are Intended To Be Appropriated By The Assembly For Certain Purposes As Set Forth Herein; And Calling For An Election On Whether Such Sales Tax Shall Be So Levied.

This ordinance would place on the October 2, 2012 municipal election ballot the question of extending the temporary 1% sales tax levy. The current temporary 1% sales tax levy will expire on September 30, 2013. If approved, the temporary 1% sale tax levy would be extended by five years, until September 30, 2018. It is estimated that the temporary 1% tax will generate a total of $44.8 million in sales tax revenue over the five years.

The funding is intended to be used for a variety of capital projects. The identified projects include:

• Airport Snow Removal Equipment Facility
• Statter Harbor Haul Out
• Capital Transit Maintenance Shop Renovations
• Bartlett Regional Hospital Child and Adolescent Mental Health Facility
• Dimond Park Library
• Water Filtration
• Sales Tax Budget Reserve
• Juneau Arts and Culture Center Expansion
• Deferred Maintenance to CBJ Buildings and Facilities
• Parks and Recreation Maintenance, Improvements, and Upgrades
• Walter Soboleff Center

The Assembly Finance Committee, at its July 2, 2012 meeting, recommended this ordinance be forwarded to the Assembly.

I recommend this ordinance be adopted.

E. Ordinance 2012-33(b)
An Ordinance Authorizing The Issuance Of General Obligation Bonds In The Principal Amount Of Not To Exceed $25,000,000 To Finance Capital Improvements To The Facilities Of The City And Borough, And Submitting A Proposition To The Voters At The Election To Be Held Therein On October 2, 2012.

This ordinance would authorize placing on the October 2, 2012 municipal election ballot the question of issuing $25 million in 20-year General Obligation bonds for the purpose of funding a variety of capital projects. The identified projects include:

• Airport Terminal Phased Remodel
• Aurora Harbor Phase II
• Capital Transit Bus Storage, Administration Renovation, Electronic Fare Boxes
• Eaglecrest Learning Center Construction
• Centennial Hall Major Maintenance and Remodel
• Parks and Recreation Restroom and Concessions Replacement and Paving

If the temporary 1% sales tax is approved by voters during the October municipal election, the first five years of debt service will be paid by sales tax. Beginning in FY19, the debt service would increase by .39 mills. This amount of debt service would require an annual property tax levy of approximately $39 per $100,000 of assessed value, or approximately $136 for the average single-family home (estimated 2018 value $349,000 per CBJ Assessor).

If the temporary 1% sales tax were not approved by voters during the October municipal election, the FY14 debt service would increase by .42 mills. This amount of debt service would require an annual property tax levy of approximately $42 per $100,000 of assessed value, or approximately $139 for the average single-family home (estimated 2012 value $332,000 per CBJ Assessor).

The Assembly Finance Committee, at its July 2, 2012 meeting, recommended this ordinance be forwarded to the Assembly.

Version b expands the “Explanation” in Section 6 to describe what the mill rate, necessary to pay off the bond debt, would be under two scenarios: 1) if the first five years of debt service are paid with proceeds from the 1% sales tax, and 2) if the 1% temporary sales tax extension was not approved and all debt service was paid via an increase in the property tax mill rate.

I recommend this ordinance be adopted.

F. Ordinance 2012-20(B)
An Ordinance Appropriating To The Manager The Sum Of $71,040 As Funding For The Parks And Recreation Department To Design, Manufacture, And Install Kiosks And Interpretive Signs In The Auke Bay Area, Funding Provided By The Alaska Department Of Transportation And Public Facilities National Scenic Byways Grant Program.

This ordinance would appropriate a $71,040 grant from the Alaska Department of Transportation and Public Facilities to design, manufacture, and install kiosks and interpretive signs at the Auke Bay Ferry Terminal, Auke Lake Wayside, and Auke Lake Trail. These kiosks would provide information on cultural and recreational resources accessible from the Alaska Marine Highway, which has been designated a National Scenic Byway. This project would also design and produce 5,000 tri-fold color brochures, which would include a map of area trails.

The required grant match has been met by construction of the Auke Lake Trail.

I recommend this ordinance be adopted.

G. Ordinance 2012-20(C)
An Ordinance Appropriating To The Manager The Sum Of $16,500 As Funding For Planning, Development, And Installation Of Historical Interpretive Signs And Planning And Design Of An Interpretive Shelter For The 5-Stamp Mill At The Treadwell Mine Historic Park, Grant Funding Provided By The Alaska Department Of Natural Resources, Office Of History And Archaeology.

This ordinance would appropriate $16,500 from the State of Alaska Office of History and Archaeology (DNR) for planning, developing, and installing historical interpretive signs, and planning and design of an interpretive shelter for the 5-Stamp Mill at the Treadwell Mine Historic Park located on CBJ-owned property.

The product of the project will be at least two interpretive signs similar to those recently installed throughout the Treadwell Mine Historic Park. The signs would assist locals and visitors in understanding the history of the Treadwell Gold Mine and specifically the role of the 5-Stamp Mill. In addition, a design for a protective shelter for the mill would be done, the shelter designed to be constructed as a later phase of the project.

The work of the project would be performed through the combined efforts of a graphic designer, writer/editor, and sign manufacturer. Volunteers of the Treadwell Historic Preservation and Restoration Society would assist with planning, developing, and installing the signage and planning and designing the shelter. The Historic Resources Advisory Committee would review the draft and final products. The total project costs are estimated to be $27,500. Sixty percent ($16,500) will be funded from a federal Historic Preservation Fund grant administered by the Alaska Office of History and Archaeology. The remaining 40% ($11,000) of the project budget will be funded by in-kind services of volunteers of the Treadwell Historic Preservation and Restoration Society.

The Historic Resources Advisory Committee recommended this action at its February 1, 2012 meeting. The Assembly Lands Committee recommended this action at its July 23, 2012 meeting. The Parks and Recreation Advisory Committee reviewed this as an information item at its August 7, 2012 meeting.

I recommend this ordinance be adopted.

H. Ordinance 2012-20(D)
An Ordinance Appropriating To The Manager The Sum Of $5,000 As Additional Funding For Review Of The Safe Routes To Schools Plan, Grant Funding Provided By The Alaska Department Of Transportation And Public Facilities.

CBJ was awarded a $45,000 Safe Routes to Schools (SRTS) Grant from the Alaska Department of Transportation (DOT). Grant funds were used to hire a consultant to conduct a public process, create a Safe Routes to Schools plan, and make program and infrastructure recommendations to implement the plan.

Public review of the SRTS plan has been completed and Sheinberg and Associates is finishing the updated version.

DOT, Safe Routes to Schools Program, is granting the CBJ an additional $5,000 in SRTS funds to cover the cost of review of the draft plan by DOT staff.

I recommend this ordinance be adopted.

I. Ordinance 2012-20(E)
An Ordinance Appropriating To The Manager The Sum Of $3,500,000 As Funding For Construction Of The Aurora Small Boat Harbor Re-Build Project, Grant Funding Provided By The Alaska Department of Transportation and Public Facilities, Municipal Harbor Facility Grant Program, And From The Harbors Enterprise Fund Balance
.

This ordinance would appropriate a $2 million state grant for Phase I of the Aurora Small Boat Harbor rebuild project and $1.5 million as the local match. The total cost estimate for this phase of the project is $4 million. The grant requires a $2 million match which will comprise $1.5 million from the Harbors Enterprise Fund Balance and $500,000 from a yet to be determined Harbors fund.
The Docks and Harbors Department received notice of award of a $2 million Municipal Harbor Facility Grant for Phase I of the reconstruction of Aurora Harbor. The funding would be used to replace failing infrastructure of the current facility, including new piling, floats, electrical wiring, pedestals, water lines, and hydrants. Phase I would complete the main transfer bridge, gangway, main float, and head float A and B including mooring finger floats.

The Docks and Harbors Board recommended approval of the $2 million grant award at its June 28, 2012 meeting and approved the $1.5 million appropriation from the Harbor Enterprise Fund Balance to the Aurora Small Boat Harbor CIP at its July 12, 2012 Special Meeting. The Public Works and Facilities Committee reviewed this ordinance at its July 23, 2012 meeting.

I recommend this ordinance be adopted.

J. Ordinance 2012-20(F)
An Ordinance Appropriating To The Manager The Sum Of $1,855,000 As Funding For The State Of Alaska’s Designated Legislative Grant Projects, Grant Funding Provided By Alaska Department Of Commerce, Community And Economic Development.

This ordinance would appropriate $1,855,000 in five Alaska Department of Commerce, Community and Economic Development legislative grants to the below new or existing programs or Capital Improvement Projects:

Montessori Borealis Program Computer Replacement, $55,000
Project Description: Replace outdated static computer lab with mobile technology - iMacs computers, MacBook Pros computers, laptop computers, computer cart, wireless switches, printer, PA system, related supplies.

Floyd Dryden Middle School Computer Replacement, $100,000
Project Description: Replace obsolete computers - PC laptop computers, MacBook Pros computers, computer carts, related supplies.

Juneau Douglas High School Computer Replacement, $100,000
Project Description: Replace obsolete computers - MacBook Pros computers, iMacs computers, related supplies.

Mendenhall River Community School Computer Replacement, $100,000
Project Description: Replace obsolete computers - MacBook Pros computers, iPads, PC laptops, computer carts, related supplies.

Statter Harbor Improvements, $1,500,000
Project Description: The Statter Harbor Improvements project would construct new boat ramp facilities, adjacent parking area, and other improvements consistent with the Statter Harbor Master Plan.

The Docks and Harbors Board recommended acceptance of the $1.5 million grant for Statter Harbor from the State at its June 28, 2012 meeting.

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

I recommend this ordinance be adopted.

K. Ordinance 2012-20(G)
An Ordinance Appropriating To The Manager The Sum Of $400,000 As Funding For The Replacement Of A Bus Lift And Wash Equipment At The Capital Transit Facility, Grant Funding Provided By Alaska Department Of Transportation And Public Facilities.

This ordinance would appropriate $400,000 in grant funds provided by the Federal Transit Administration, State of Good Repair Program, for the replacement of a bus lift and wash equipment at the Capital Transit facility. The funds would be provided through the State of Alaska Department of Transportation and Public Facilities. There is a 20% match requirement, which would be met with the Capital Transit Equipment Replacement Reserve.

I recommend this ordinance be adopted.

L. Ordinance 2012-20(H)
An Ordinance Appropriating To The Manager The Sum Of $2,972,785.02 As Funding To Develop The West Douglas Highway Extension, Grant Funding Provided By Alaska Department Of Commerce, Community And Economic Development.

Reappropriation                                    COW Minutes

This ordinance would appropriate $2,972,785.02 in grant funds provided by the Department of Commerce, Community and Economic Development (DCCED) to support development related to West Douglas Highway.

The State Legislature recently approved a transfer of $2,972,785.02 for this project from the Alaska Department of Transportation and Public Facilities (DOT) to the DCCED. The purpose of this transfer was to allow for a DCCED grant to the CBJ. The grant will simplify the expenditure process and remove DOT overhead and oversight of the project.

The Assembly Committee of the Whole recommended this action at its June 11, 2012 meeting.

I recommend this ordinance be adopted.

IX. UNFINISHED BUSINESS

X. NEW BUSINESS

A. Supplemental Agreement – 2nd Street Douglas Reconstruction Phase II – Water System Replacement.

Engineering Department staff recommends execution of a Supplemental Agreement, for approximately $375,000, to allow the current contractor, Admiralty Construction, to replace the water system within the Phase II portion of the 2nd Street Douglas

Reconstruction Project (H Street to Capital View Court). This will provide significant cost and time savings for the project. Per CBJ Charter and policy, Supplemental Agreements greater than $250,000 require a public interest finding and Assembly approval.

Phase II of the 2nd Street Douglas Reconstruction Project was to resurface the roadway and make minor repairs to the utility infrastructure, i.e., replace fire hydrants, damaged culverts, a sewer manhole from H Street to Capital View Court. The project was not intended to replace the water system, as the research and consultation with Public Works during the design of the project showed the system to be of adequate materials and condition to last through the design life of the resurfacing. The final work items, prior to paving, within the project were being completed last week. While replacing a fire hydrant, the water main material was found to be severely corroded, a different material than as-built records indicated, and in poor condition. Further investigation of the water system, by excavating different areas along the water main, showed the entire system to be corroded and in the same poor condition. The poor water main condition was not anticipated during the design of the project, or it would have been included in the original bid solicitation.

The water system is beyond its useful design life and needs to be replaced before repaving the project. Since Admiralty Construction is already mobilized on the site to do the resurfacing work, replacing the water lines through a Supplemental Agreement, rather than re-bidding the water lines as a stand-alone project, would save time and money.

I recommend this Supplemental Agreement be approved.

B. Property Tax - Senior Hardship Exemption Request

Mary Pusich and Catherine Allen applied late for the Senior Citizen Real Property Hardship Exemption. The code places the authority for approving late claims with the Assembly. Per 69.10.020 (1)(C):

The assembly, for good cause shown, may waive the claimant’s failure to make timely application for an exemption under subsection (A) or CBJ 69.10.021 and authorize the assessor to accept the application as if timely filed.

Ms. Pusich’s daughter has recently been placed in control of her mother’s finances and was not aware of the deadline for the exemption. Ms. Pusich has received the exemption in the past.

Ms. Allen recently turned 65. She applied for her sales tax exemption card, and claims that she was not made aware that she may also qualify for a real property hardship exemption, even though it is the policy of the Sales Tax Office to inquire if a new applicant has real property.

Approval of these late filings would result in a loss of $2,873.49 in revenue to the City.

The Assessor’s Office has reviewed the applications and has determined that both filers have an income ratio that would qualify them for the exemption had the application been filed in a timely manner.

I recommend approval of these exemptions.

C. Osborne Appeal Of Planning Commission Decision Regarding Conditional Use Permit USE2011-0030 For Construction Of Two Offshore Berths And Moorage Float Located At The Existing Downtown Cruise Ship Docks.

On June 26, 2012, the Planning Commission issued a final decision to approve the development of two offshore berths and moorage floats located at the existing downtown cruise ship docks, described as option 16B Reconfiguration Option B, subject to conditions. The appellants, Arthur and Linnea Osborne, filed a timely Notice of Appeal of this decision with the Municipal Clerk’s Office on Thursday, July 19, 2012.

The Notice of Appeal and the Notice of Decision are in your packet. The Assembly is the appeal agency for this appeal, and its actions throughout the appeal process are governed by CBJ 01.50, the Appellate Code. The Code requires that upon receiving an appeal, the Assembly must first decide whether to accept or reject it. The standards applicable to this decision are set out at CBJ 01.50.030(e):

(e) Action by Appeal Agency Upon Receipt of a Notice of Appeal.
(1) Within thirty days of receipt of a notice of appeal by the appeal agency, the appeal agency shall notify the appellant of the acceptance or rejection of the appeal and, if rejected, the reasons for the rejection.
(2) The notice of appeal shall be liberally construed in order to preserve the rights of the appellant. The appeal agency may reject the appeal for failure to comply with these rules or if the notice of appeal does not state grounds upon which any of the relief requested may be granted.

The appellants, the permit holder, and the Planning Commission have been advised that this matter is before the Assembly.

The following procedural issues should be decided:
1. Will the Assembly accept the appeal?
2. Will the Assembly hear the appeal itself or assign to a hearing officer?
3. If the Assembly hears the appeal itself, will the Mayor preside, or will he designate another member as presiding officer?

This matter is before the Assembly sitting in its quasi-judicial capacity. Accordingly, members should avoid discussing the case outside the hearing process.

With respect to this issue, the Appellate Code provides as follows:

CBJ 01.50.230 IMPARTIALITY. The functions of hearing officers and those appeal agency members participating in decisions shall be conducted in an impartial manner with due regard for the rights of all parties and the facts and the law, and consistent with the orderly and prompt dispatch of proceedings. Hearing officers and appeal agency members, except to the extent required for the disposition of ex parte matters authorized by law, shall not engage in interviews concerning the appeal with, or receive evidence or argument on the appeal from, a party, directly or indirectly, except upon opportunity for all other parties to be present. Copies of all communications with a hearing officer or appeal agency member concerning the appeal shall be served upon all parties.

Because this is an appeal, I have no recommendation on whether or how the Assembly should hear the appeal.

XI. STAFF REPORTS

a. Fire Department – Chief Rich Etheridge

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

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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