City and Borough of Juneau
Assembly Finance Committee Meeting
Wednesday, July 8, 2009 at 5:00 p.m.
Assembly Chambers

I. Call to Order

II. Roll Call

III. Approval of Minutes
May 6, 2009 (pp. 4-6)

IV. Juneau Commercial Fisherman’s Memorial Loan (pp. 7-24)
The Juneau Commercial Fishermen’s Memorial Board of Directors is requesting the CBJ forgive a portion of the loan provided to this organization for the construction of the Juneau Commercial Fishermen’s Memorial.

On June 7, 1996, the Juneau Commercial Fishermen’s Memorial Board of Directors requested the CBJ Assembly provide a $94,060 loan to complete the memorial. The request noted that the group would continue to raise funds and believed it reasonable that the funds could be repaid within two years.

On August 5, 1996, the Assembly approved Ordinance 96-17 (C), “An Ordinance Appropriating to the Manager the Sum of $94,060 for a Loan to the Juneau Commercial Fishermen’s Memorial. Such Funds Provided by the Unappropriated General Fund Balance.”

On September 20, 1996 the City and Borough entered into a zero interest loan in the amount of $94,060. The loan noted, “The Memorial agrees that it will continue in good faith to solicit funds from other sources in its efforts to pay for the construction and completion of the Juneau Commercial Fishermen’s Memorial in a timely and expeditious manner, and will pay back the CBJ loan on or before June 30, 1999.” The loan was signed by Bruce Weyhrauch on behalf of the Juneau Commercial Fishermen’s Memorial.

The Memorial paid back a total of $13,119.47 ($3,119.47 on August 4, 1997 and $10,000 on September 17, 1998) to the CBJ. No additional payments have been made, leaving a balance of $80,940.53.

V. National Council on Alcoholism and Drug Dependency (NCADD) (pp. 25-31)
Wendy Hamilton from the National Council on Alcoholism and Drug Dependency (NCADD) will present NCADD’s recommendations for increases in the Tobacco Excise Tax. Enclosed in the packet is Wendy’s presentation information.

Matt Felix from NCADD will present NCADD’s recommendations for increases in the CBJ liquor sales tax rate. Note: John Hartle, City Attorney, has indicated that he questions the CBJ’s ability to change the tax rate within the existing State Statutes.

VI. School General Obligation Bonding Proposals
The School District is bringing forward three potential general obligation school bond ballot questions for October. These questions were originally presented to the Public Works and Facilities Committee (PW&F) on June 1, 2009. PW&F forwarded the District’s request on to the Committee of the Whole (COW) for review on June 15, 2009. The COW has forwarded these fall ballot questions on to the Assembly Finance Committee for additional review. All three bonding proposals should qualify for 70% reimbursement under the State’s School Construction Bond Debt Reimbursement Program. Rorie Watt and Deb Morris will provide additional information on the three general obligation bonding proposals at the meeting. The three proposals are -

• $11,800,000 for Gastineau Elementary School

Description of Work: Gastineau Elementary School has significant renovation needs. The original school was built in 1957, a classroom wing was added in 1965, and a multipurpose room and covered play area were constructed in 1990. Although original roofing and exterior windows have been replaced, and the original multi-purpose room has been renovated into a library, the school building has not had a major renovation in over 50 years. This project would physically and programmatically upgrade the Gastineau Elementary School building in four primary deficiency areas:

1. General Renovations. Renewal and replacement, building code upgrades, and energy efficiency upgrades of architectural, site civil, structural, mechanical, and electrical systems and components that are deteriorated, no longer cost effective to operate, or in violation of current codes and standards.
2. ADA Upgrades. Although an ADA survey of Gastineau Elementary School was conducted in 1999, the School District has determined that it will be significantly more cost effective to address accessibility issues as part of a major renovation.
3. Hazardous Materials Abatement. Although some asbestos abatement has occurred over the last 20 years, it is possible that additional hazardous materials will be discovered during the proposed renovation.
4. Programmatic Improvements. Although it is not practical to realign the entire layout of Gastineau Elementary School, it is valid to renovate portions of the building to provide a larger capacity kitchen, small learning spaces, and other recommended programmatic improvements that may be identified during the design process.


• $17,300,000 for Auke Bay Elementary School

Description of Work: The Auke Bay Elementary School has significant renovation needs. The original school was built in 1968, and two kindergarten classrooms and a library were added in 1991. Although site utilities have been upgraded, original roofing replaced, and a major piling foundation upgrade constructed (1980), the school building has not had a major renovation in over 40 years. This project would physically and programmatically upgrade the Auke Bay Elementary School building in four primary deficiency areas:

1. General Renovations. Renewal and replacement, building code upgrades, and energy efficiency upgrades of architectural, site civil, structural, mechanical, and electrical systems and components that are deteriorated, no longer cost effective to operate, or in violation of current codes and standards.
2. ADA Upgrades. Although an ADA survey of Auke Bay Elementary School was conducted in 1999, the School District has determined that it will be significantly more cost effective to address accessibility issues as part of a major renovation.
3. Hazardous Materials Abatement. Although some asbestos abatement has occurred over the last 20 years, it is likely that additional hazardous materials will be discovered during the proposed renovation.
4. Programmatic Improvements. Although it is not practical to realign the entire layout of Auke Bay Elementary School, it is valid to renovate portions of the building to provide a central commons area, a larger capacity kitchen, small learning spaces, and other recommended programmatic improvements that may be identified during the design process. However, due to the small size of the existing building footprint, it is likely that additional space beyond the current exterior perimeter wall will be required to achieve some of these programmatic improvements.


• $13,900,000 Marie Drake School

Description of Work: Originally constructed as a junior high school in 1965, with a library added in 1984, use of the building as a middle school discontinued in 1994 when Dzantik’i Heeni Middle School opened. Since that time the building has housed a variety of temporary functions including high school, elementary school, and district-wide programs. Although a new single-ply membrane roofing system was installed in 2002 (and is expected to last up to 30 years), and the existing building is structurally sound, existing mechanical and electrical systems, exterior walls, exterior doors and window systems, interior finishes, and many other components and systems are old and deteriorated. Further, current plans to use the building to house a wide range of new programs could require some programmatic realignment. This project would therefore provide general renewal and replacement, building code upgrades, energy efficiency upgrades, ADA upgrades, hazardous materials abatement, and programmatic improvements of architectural, site civil, structural, mechanical, and electrical systems and components.

VII. Review of the CBJ Investment Codes and Policy (pp. 32-39)
In a prior meeting, the Assembly Finance Committee requested an update on CBJ’s investments and indicated an interest in reviewing the investment codes and policies. Staff will present an overview of the current investment portfolios and the investment codes and policies. The CBJ investment codes and policies were reviewed by Callan Associates in December 2006. Enclosed in the packet is the performance review summary from that report as well as the presentation on the current investment portfolio overview.

VIII. Sales Tax Delinquency (pp. 40-44)
In a prior meeting, the Assembly Finance Committee requested an update on CBJ’s sale tax collections. Joan Roomsburg, CBJ’s Sales Tax Administrator, will provide an overview of the collection process and the status of the current delinquencies. The presentation is included in your packet.

IX. Budget Status Update (p. 45)
Staff will provide an update on the FY10, FY11 and FY12 budget projections. Included in your packet is a spreadsheet similar to the one presented at the March 25, 2009 AFC meeting.

X. Information Items

XI. Adjournment