Monday, June 26, 2006 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2006-18

Submitted by: Rod Swope, City & Borough Manager




A. Employee Recognition


A. June 14, 2006 – Special Meeting 2006-16
B. June 14, 2006 – Special Meeting 2006-17


(Not to exceed a total of 20 minutes nor more than 5 minutes for any individual).


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 2006-25
An Ordinance Expanding The No-Wake Zone In Gastineau Channel.

This ordinance would expand CBJ’s reduced speed and no-wake zone in Gastineau Channel from the Douglas Bridge southward to Mayflower Island. A reduced speed and no-wake zone currently exists for Gastineau Channel under CBJ Ordinance Title 85. This zone extends from the Douglas Bridge northward to the Mendenhall Bar Marker in front of the old Channel Marina site. Boats may not go faster than five nautical miles per hour or cause more than a six-inch wake in this zone. While expanding the no wake zone, this ordinance increases the speed limit from five to eight nautical miles per hour and increases the allowable wake from six inches to one foot. The ordinance also exempts boats responding to emergencies.

The Docks and Harbors Board recommended the Assembly adopt this ordinance at its May 25, 2006 meeting. The Board recommended this action to reduce damage caused by excessive boat wake to vessels and docks at the New Douglas Boat Harbor, the National Guard Dock, the Intermediate Vessel Float, the Marine Park Lightering Float, the Seadrome Dock, and the NOAA dock.

The Board intends to educate the boating public about the reduced speed and no-wake zone and to place signage at Mayflower Island and other strategic locations. In addition, the Board will work with problem operators to make them aware of the ordnance and the consequences of non-compliance. Finally, as a last resort, the Board will take official enforcement action.

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

b. Ordinance 2006-26    
An Ordinance Amending The Official Zoning Map To Change The Zoning Of Lot 2, Hospital Subdivision, And USS 3824 FR, From General Commercial To Rural Reserve


This ordinance would amend the official zoning map of the City and Borough of Juneau, to change the zoning of two lots situated just south of the Bartlett Memorial Hospital complex, and adjacent to Egan Drive. These six acres, composed of a fraction of USS 3824 and Lot 2 of Hospital Subdivision, contain the Salmon Creek water treatment facilities, owned and operated by CBJ, and an electrical substation and power plant, owned by AEL&P.

The current zoning for these two parcels is General Commercial. This proposed change would down zone them to Rural Reserve. This change would recognize the need to preserve the institutional uses built on this land, and the potential for traffic conflicts if this land was developed for commercial purposes.

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

c. Ordinance 2006-12(B)
An Ordinance Appropriating Money Out Of The Treasury For FY07 School District Operations

This ordinance will appropriate $84,000 for Juneau School District Operations. This action is the result of the CBJ providing additional funding to the School District for transportation of homeless students and after school activity buses.

The Assembly Finance Committee, at its meeting of May 31, 2006, recommended this action.

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

2. Resolutions

a. Resolution 2359
A Resolution Extending the Sunset Date of the Americans with Disabilities Act Committee.

The Assembly originally established the Americans with Disabilities Act Committee through Resolution 1585 on July 20, 1992 in response to the Federal Americans with Disabilities Act of 1990.

The purpose of the committee is to advise and assist the Assembly and the Manager in implementing and carrying out the goals and provisions of the Americans with Disabilities Act (ADA). The committee was tasked with reviewing the interim plan setting forth the city and borough’s efforts for compliance with the ADA; review of the policies, procedures and practices, including employment practices, for compliance with the ADA; promote public awareness of the ADA requirements; and undertake other tasks and assignments relating to the ADA as requested by the Assembly or the Manager.

The original sunset date of the ADA Committee was to be July 1, 1995. Extensions to that date have been made through Resolutions 1769, 1928, and 2204. On June 5, 2006, the Assembly Human Resources Committee (HRC) discussed the ADA Committee’s annual report with the ADA Committee chair and members and the committee’s request to extend the sunset date. The HRC recommended the Assembly adopt this resolution extending the sunset date to July 1, 2009.

I recommend this resolution be adopted.

b. Resolution 2360
A Resolution Authorizing The Manager To Accept A Grant For $10,000 From The Southeast Conference In The Name Of The Mendenhall Watershed Partnership.

The US Geological Survey (USGS) has requested that the CBJ enter into a cooperative agreement to fund one year’s operation of a streamflow gaging station on the Mendenhall River. The annual costs to operate the streamflow gage are $23,000. After negotiations, the CBJ agreed to fund $1,500 of the annual operational cost. The Mendenhall Watershed Partnership (MWP) secured a $10,000 grant that the MWP wishes to provide to the CBJ. The $11,500 of CBJ and MWP grant monies will constitute one-half of the required funds for the annual operation. The USGS will provide the other half ($11,500) necessary to fund another year of streamflow monitoring. If the CBJ accepts the $10,000 grant, the City Manager will sign the cooperative agreement. The CBJ Engineering staff has told the USGS that we will not recommend ongoing CBJ appropriations for this effort.

I recommend this resolution be adopted.

3. Bid Award

a. Bid 06-195 - Purchase of Roadway Deicing Chemicals

Bids were opened on the subject project on May 19, 2006. The bid protest period expired at 4:30 p.m. on May 23, 2006. Results of the bid opening are as follows:

BIDDERS CG90 or Approved Equivalent (300 tons)
Univar $102,000
Brenntag Pacific $115,200
Cascade Columbia Distribution No Bid
United Rentals No Bid

This contract is to provide roadway deicing chemicals that will be used for winter street maintenance. Cost per ton is $340, compared to last year’s bid at $227 per ton. Any fuel surcharges from Seattle to Juneau will be extra.
• Funding Source: 209-18-5-01-00-493 Chemical
• Encumbrances: $ 102,000.00
With the concurrence of Mike Scott, Streets Superintendent, Public Works Division, the Purchasing Division recommends award of CG90 to Univar on the basis of having the lowest responsive bid price in the amount of $102,000.00 based on Total Bid.

I recommend this bid be awarded, in the amount of $102,000, to Univar.


A. Ordinance 2006-20
An Ordinance Amending Non-Code Ordinance 99-11, The CBJ Land Management Plan, To Restate And Clarify The Assembly’s Intent Regarding The South Lena Subdivision.

This ordinance would amend Section 5(b) of Ordinance 99-11, the CBJ Land Management Plan, to state that the South Lena Subdivision lots may be offered for sale as authorized by Ordinance 2006-03, for development with on-site wastewater treatment and disposal systems.

Review of the public record of Planning Commission and Assembly actions on the Lena subdivision shows this intent and approval. The City Attorney has summarized portions of the record in the “Whereas” provisions of this ordinance. Given the possibility of litigation over whether the CBJ has complied with Ordinance 99-11 in authorizing the sale of the lots for development with on-site wastewater systems, it is in the public interest for the Assembly to restate and clarify its intent as set forth in this ordinance.

I recommend this ordinance be adopted.

B. Ordinance 2006-21
An Ordinance Increasing The Rates For Water And Wastewater Utility Services In The Water And Sewer Codes.

This ordinance would increase the customer service rates “across-the-board” by two percent for both the CBJ Water Utility and Wastewater Utility. The Financial Plans and Policies adopted for each utility in 2003 called for a biennial financial review of each utility beginning in FY07. The purpose of the review is to assess the revenue requirements for each utility and to determine the minimum level of customer service rate increase needed to ensure the fiscal stability of each enterprise operation.

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

The Utility Advisory Board supports the rate increases and funding plan for FY07/FY08.

The Public Works and Facilities Committee approved a motion of support for the proposed FY07 rate increases at its meeting on May 8, 2006.

I recommend this ordinance be adopted.

C. Ordinance 2006-23
An Ordinance Relating to the Operation of Vehicles on City and Borough Streets and Sidewalks; and Providing for a Penalty.

The Alaska State Legislature, in the session which ended in May, authorized use of a new type of vehicle on city streets, "low speed vehicles." The state legislation also provided an option for municipalities to prohibit them within their municipal jurisdiction. The City of Ketchikan has recently adopted an ordinance to prohibit these low speed vehicles. In light of the congestion on CBJ streets, particularly downtown in the summer, this ordinance would prohibit operation of the newly-authorized type of vehicles on CBJ streets and sidewalks.

I recommend this ordinance be adopted.

D. Ordinance 2006-24
An Ordinance Providing For The Issuance And Sale Of Two Series Of General Obligation School Bonds In The Principal Amount Of $50,055,000; Providing The Form And Terms Of The Bonds And For Unlimited Tax Levies To Pay The Bonds; Providing For The Appointment Of A Bond Registrar; And Authorizing A Preliminary Official Statement.

This ordinance would authorize the issuance of $50.055 million in General Obligation School Bonds. Of this amount, $44.06 million is part of the 15-year $54 million in school bonds approved by the voters on October 5, 2004 for the construction of a new high school in the Mendenhall Valley. The remaining amount is the 10-year $5.995 million school bond authorization approved by the voters on October 4, 2005 for the repair and renovation of the Glacier Valley Elementary School.

Both of these bond issues qualify for 70% reimbursement under the State’s School Construction Bond Debt Reimbursement Program. However, the reimbursement under the State’s Debt Reimbursement Program is subject to annual appropriation by the Legislature.

The remaining debt service, after state reimbursement and assuming the State fully funds the debt reimbursement program, will be paid from property taxes. The estimated total cost of the debt service, including interest at an average rate of 4.7% for the 10-year bonds and 4.8% for the 15-year bonds, is $70.14 million. CBJ should receive reimbursement from the State of $49.1 million, assuming full state funding, leaving $21.04 million to be paid from local property tax. The maximum estimated property tax mill levy needed to fund the local share, assuming full state funding, will be 0.36 mills or $36 per $100,000 in assessed value.

I recommend this ordinance be adopted.

E. Ordinance 2005-11(BC)
An Ordinance Transferring $50,800 To The Land Acquisition Capital Improvement Project, The Source Being Unexpended FY05 Marine Passenger Fees Budgeted To The General, Docks And Roaded Service Area Funds.

Economic Impact Statement

This ordinance would transfer $50,800 of unexpended Marine Passenger Fees (MPF) that are budgeted for specific purposes and not expended by year end to the Land Acquisition-Open Space Project. For FY05, we are returning $50,800 in unexpended Local Emergency Planning Committee, Crossing Guard, and Downtown Parking Improvement funds.

I recommend this ordinance be adopted.

F. Ordinance 2005-11(BD)
An Ordinance Appropriating To The Manager The Sum Of $5,000 As Partial Funding For An Historic Structures Report On The Merchant’s Wharf Building, Funding Provided By The Alaska Department Of Natural Resources.

Economic Impact Statement

This ordinance would appropriate a $5,000 Historic Preservation Fund grant from the Department of Natural Resources to document the history and architecture of the Merchant’s Wharf Building, as well as completing an historic structures report using National Park Service Guidelines. The total project cost is $8,333 and the grant requires $3,333 in local participation, which will be met with current Community Development Department (CDD) staff resources. The scope of work will be limited to the history and architecture of the building only, and will not include an engineering evaluation or those items typical of a building condition report. The building owner does not object to this survey.

I recommend this ordinance be adopted.

G. Ordinance 2005-11(BF)
An Ordinance Appropriating To The Manager The Sum Of $1,351,743 To Fund The City And Borough Of Juneau’s Fiscal Year 2006 Public Employee Retirement System Contribution, Funding Provided By The Alaska Department Of Administration.

Economic Impact Statement

This ordinance reflects, for accounting purposes, the State’s 5% Public Employee Retirement System (PERS) contribution for FY06. The ordinance would increase the personnel benefits citywide by $1,351,743 to reflect costs paid directly by the State into the PERS on behalf of CBJ. The funding is by the Alaska Department of Administration’s general fund, as appropriated by SB 46.

I recommend this ordinance be adopted.

H. Ordinance 2005-11(BK)
An Ordinance Appropriating To The Manager The Sum Of $10,500 As Funding For The Maintenance Of Downtown Parking Facilities, Funding Provided By Downtown Parking Fund Balance.

Economic Impact Statement

The ordinance would increase the Commodities and Services due to the unforeseen increases for the snow removal contract at the downtown CBJ parking lots and for maintenance and repairs, including the emergency repair of a dry sprinkler standalone pipe at the Marine Parking Garage. The funding will be provided by the Downtown Parking Facility’s fund balance.

I recommend this ordinance be adopted.


a. Ordinance 2005-11(BB)
An Ordinance Appropriating To The Manager The Sum Of $2,800,500 As Partial Funding For Bartlett Regional Hospital’s Fiscal Year 2006 Operating Budget, Funding Provided By User Fees And Interest Income.

Economic Impact Statement

This ordinance appropriates $2,800,500 in various funding sources to increase the spending authority of Bartlett Regional Hospital’s fiscal year 2006 operating budget. The specific increases are:

1. $984,300 for commodities and services due to contract employees and physician recruitment.
2. $1,600,000 for the reserve contribution due to a greater than expected increase in operating cash.
3. $300,000 for the replacement of critical equipment that broke during the fiscal year.

These increases are funded by an increase in user fees, interest income, and an anticipated $79,300 savings in personnel services and $4,500 in debt service.

BRH retained earnings balance will be $13,930,000 after this appropriation.

At its April 25, 2006 meeting, the Bartlett Regional Hospital Board requested the Assembly approve this increase.

I recommend this ordinance be adopted.


A. 1% For Art       Dorinda Skains Drawing   Letter

CBJ Code (Chapter 62.65) requires 1% of project construction cost be set aside for art. Previously the JDHS Art Selection Panel (Panel) selected and Assembly approved the commission of "Berner's Bay Ballet" by Janice Criswell and Steve Henrikson. This piece is currently under construction and is expected to be installed by the end of the year. The purchase price was $100,000 leaving $60,000 in the JDHS art budget.

On April 25, 2006 five artists responded to a second round of art solicitations. The Panel (Tom Manning, JDHS Art Teacher; Jan Neimeyer, JDHS Art Teacher; Heidi Reifenstein, Artist; David Woodie, Artist; Leigh Miller, JDHS Student; and Sue Sloss, JDHS Parent) reviewed the proposals and selected D.K. Skains to produce a second piece for JDHS.

The specific proposal is a series of six wall murals to be installed in the Commons. The murals feature bears along with other animal and plant images. From the artist's design statement; "Bears will be shown to conquer, investigate, learn and explore the various disciplines of math, biology, chemistry, music, art, sports, business, technology, voc-ed, etc." A copy of her design statement and conceptual sketch is attached. Upon approval the artist will complete the design, construct the piece, and install it by the end of the year. The cost of this piece is approximately $55,000.

The Panel also determined that a portion of the 1% for Art funds should be used to restore, frame, and tag existing student art that suffered some damage when moved during the JDHS Renovation. The cost of this work is approximately $5,000.

On June 15, 2006 the High Schools Project Team concurred with the Panel's selection of D.K. Skains as artist and the budgeting for restoration, framing, and tagging of existing student art at JDHS.

I recommend the Assembly approve the Panel's artist selection and proposed work related to existing student art at JDHS.

B. Regulation Amending Taxi Service Rates

The public comment period for these regulations closed on Friday, June 23, 2006, at 4:30. At the time of this writing, comments were still being solicited and reviewed. The final proposed regulations will be in your red folders for Monday’s meeting.

I recommend the Assembly allow the regulations to take effect.

C. Liquor License

1. Type: Package Store
License: Alaska Cache Liquor – 06/07 - #271
Location: 156 S Franklin Street
Owner: Alaska Cache Liquor Inc.
Agent: Paul J. Thomas
Phone: 7907-586-2232
Mailing Address: P.O. Box 20977 Juneau, AK 99802-0977

The Police, Fire, Finance and Community Development Departments have forwarded their recommendations to the Assembly Human Resources Committee (HRC) for its meeting on June 26, 2006 regarding this license renewal. Based on the information provided at its meeting, the HRC will forward recommendations to the Assembly for action.

In the event of a protest recommendation, the code provides for the following informal appeal process before the Assembly:
CBJ Code 20.25.025(c):
(c) If the assembly or committee or a subcommittee thereof recommends protest of the issuance, renewal, transfer, relocation, or continued operation of a license it shall state the basis of the protest and the applicant shall be afforded notice and an opportunity to be heard at an abbreviated informal hearing before the assembly to defend the application. For the purposes of this subsection, notice shall be sufficient if sent at least ten days prior to the hearing by certified first class mail to the address last provided by the applicant to the municipal sales tax examiner. At the conclusion of the hearing, the assembly decision to protest the application shall stand unless the majority of the assembly votes to withdraw the protest.

I recommend the Assembly adopt the Human Resources Committee's recommendations for Assembly action on the liquor licenses as contained in the report.



A. Mayor’s Report
B. Committee Reports
C. Liaison Reports
D. Presiding Officer Reports





Note: Agenda packets are available for review at the Juneau Municipal Libraries and online at

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: