Monday, June 25, 2007 7:00 – 11:00 PM
Assembly Chambers – Municipal Building
Regular Meeting No. 2007-18

Submitted by: Rod Swope, City & Borough Manager




A. Employee Recognition (Bob Grochow, Joe Castillo, Art Morris)


A. June 4, 2007 – Regular Assembly Meeting 2007-17


(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 2007-44
An Ordinance Prohibiting Smoking in Bus Shelters.

This ordinance would prohibit smoking in bus shelters.

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

b. Ordinance 2007-45
An Ordinance Amending the Investment and Collateral Code.

2004 Investment Policy

This ordinance will modify the investment codes to implement a fourth Central Treasury investment portfolio structure. This new portfolio structure is targeted to long-term investments where the invested principle is not anticipated to be expended and the interest earned would be used to fund specific operating costs. The Treasury Division of Finance contracted with Callan Investment Services to develop suggestions for code and policy changes. The review included balancing long-term investment risks with anticipated investment returns. The resulting recommendation from this analysis includes expanding the investment portfolio to include equity investments. The proposed ordinance and policy would include the following asset and investment allocations for the fourth investment portfolio-

Ordinance Policy
Domestic Fixed 51% ± 5%
Broad Domestic Equity 35% ± 5%
International Equity 14% ± 5%

These asset and investment allocations will help balance returns and reduce total risk exposure. Included in the packet is a revised investment policy. The policy has been revised to match with the proposed investment ordinance revisions. The policy includes an additional restriction that restricts the maximum amount of Central Treasury funds that can be placed into the new portfolio at $5,000,000. This amount would be in addition to the restricted donations or foundation funds.

The Assembly Finance Committee reviewed and approved moving this recommended change forward to the Assembly on May 23, 2007.

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

c. Ordinance 2007-21(A)
An Ordinance Appropriating to the Manager the Sum of $115,460 as Funding for the Juneau International Airport Runway Safety Area Environmental Impact Statement Project, Funding Provided by the Federal Aviation Administration, and the Alaska Department of Transportation and Public Facilities.

Economic Impact Statement

This ordinance appropriates a federal grant amendment in the amount $112,500 and a State of Alaska matching grant amendment in the amount $2,960. Funds are provided by the Federal Aviation Administration, and the Alaska Department of Transportation.

This appropriation would fund additional work items identified by the FAA Project Manager for completion of the Juneau International Airport environmental impact statement.

The Airport Board approved this action at its June 13, 2007 meeting.

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

2. Resolutions

a. Resolution 2412
A Resolution Authorizing the Manager to Apply For, and Enter Into, Loan Agreements with the Alaska Department of Environmental Conservation, Alaska Clean Water Fund/State Revolving Fund, for Three Wastewater Utility Projects.

Backup Information

This resolution would authorize the City Manager to enter into loan agreements with the Alaska Department of Environmental Conservation, Clean Water Fund, to provide partial funding for the following projects:

 North Douglas Sewer Extension Project, for up to $4,570,000.
 West Mendenhall Valley Sewer Extension Project, for up to $2,000,000.
 Juneau-Douglas Treatment Plant Jet Truck & Septage Receiving Facility Improvement Project, for up to $250,000.

The terms of the low interest loans under the Alaskan Revolving Loan Fund program are typically 20-years at 1.5-percent interest. The sewer extension project loans will be paid with Local Improvement District (LID) revenues collected from the benefited property owners, and the JDTP improvement project will be paid with Wastewater Utility customer revenues.

The Public Works and Facilities Committee passed a motion of support for the resolution at its May 21, 2007, regular meeting.

I recommend this resolution be adopted.

b. Resolution 2413
A Resolution Authorizing the Manager to Negotiate and Enter Into a Revocable License for Use of the Armory Building Parking Lot.


The Mental Health Trust Land Office has a revocable license, for use of the Armory parking lot, with the State of Alaska, Department of Administration. The license is due to expire June 30, 2007, or upon sale of the property. It is anticipated that the property will be transferred into CBJ ownership on June 29, 2007. To accommodate continued State employee parking on the property, CBJ is prepared to execute a license for parking with the State, effective upon ownership.

The annual payment in FY07 for the Armory parking license was $62,000. Due to the timing of the land sale and license expiration, an appraisal will not be performed by CBJ for a FY08 value of the parking license. The State will be asked to compensate CBJ $62,000 for the FY08 annual payment. An appraisal, or similar valuation process, will be performed to determine the FY09 annual license payment (CBJ 59.20.050 (a)).

This resolution was reviewed and approved by the Lands Committee at its June 11, 2007 regular meeting.

I recommend this resolution be adopted.

c. Resolution 2414
A Resolution Fixing The Final Principal Amounts And Interest Rates Of The City And Borough’s Harbor Revenue Bonds, 2007 Authorized By Ordinance Serial No. 2007-32(b).

Approval of this resolution would accept the bond purchase bids for the issuance of Harbor Revenue Bonds in the aggregate principal amount of $10,620,000. Ordinance 2007-32(b) authorized the issuance and sale of the Revenue Bonds through the Alaska Municipal Bond Bank. The bond proceeds will be used to fund the following:

 $ 4,200,000 Old Douglas Boat Harbor construction project
 4,200,000 Auke Bay Loading Facility construction project
 1,345,380 DeHart’s Marina note refinancing
 * 720,205 for deposits to the reserve account
 154,415 for issuance costs, accrued interest and rounding
 $10,620,000 total bond issue

*The reserves would be held as additional security and applied to the final debt service payment.

Bond debt service will be repaid from Harbor Fund user fees. The Harbor Board presented a long-range plan to fund harbor improvements to the Assembly in 2005. This plan included issuing revenue bonds that would be repaid through an increase in harbor user fees. The CBJ is not pledging its full faith and credit to repay the debt. However, it is important to note that the CBJ is assuming an obligation to protect its property (referred to as a moral obligation) through a state revenue intercept provision. The revenue intercept provision allows the Alaska Municipal Bond Bank Authority to take any State funds coming to the CBJ if the Harbor defaults on paying the debt service.

Please note that the resolution contained in the packet is not complete and has been included for reference only. The resolution information cannot be completed until the bond bids are received. The bond bids are due on the morning of June 25, 2007. The actual resolution will be submitted as a “Red Folder” item.

The Docks and Harbor Board approved this revenue bonding request on December 7, 2006. The Assembly approved the authorizing Bond Ordinance 2007-32(b) on May 14, 2007.

I recommend this resolution be adopted.

d. Resolution 2415
A Resolution Relating to the Proposed North Douglas Crossing Project.

The CBJ initiated a public involvement project in August, 2006 to invite public comments on a North Douglas Crossing in the area between Yandukin Drive and Vanderbilt Hill intersection. The intent of the project was to gather existing information regarding past crossing studies, disseminate that information to the public, user groups, and neighborhood associations, and refine technical information regarding the crossing alternatives such as horizontal and vertical alignment, fill footprints, and intersection details.

The project team reviewed this information and recommended a crossing location at Vanderbilt Hill intersection. The project team agreed in February 2007 to complete a community survey to validate the evaluation criteria and gauge the public’s preferences for crossing alternatives. The project team used the following evaluation criteria for selection:

• Impacts to the Mendenhall State Game Refuge environment, resources,
and users;
• Project Costs;
• Potential for airport impacts; and
• Effects on neighborhoods and property owners.

The rationale for recommended Vanderbilt Hill Road as Juneau’s preferred location for the North Douglas Crossing include:

• Shortest crossing of the Refuge and smallest fill footprint in wetlands;
• Crosses the Refuge through primarily un-vegetated sea floor and open water, and crosses no wetlands on Douglas Island;
• Avoids areas near Sunny Point that are important for waterfowl, wildlife access to the Refuge, and several fish streams;
• Avoids areas used more intensively by waterfowl hunters;
• More likely to be permitted by environmental agencies due to the limited crossing length and fill footprint;
• Least estimated construction costs;
• Least impact to the airport, and;
• Supported by the community opinion survey and public comment process over the Sunny Point and Yandukin Drive alternatives.

This resolution expresses support for the project team’s recommendation of Vanderbilt Hill Road as the community’s preferred alternative. This resolution does not preclude a federal or state selection process for a crossing alternative.

This resolution was brought forward by the Assembly Committee of the Whole meeting from its June 11, 2007 meeting.

I recommend this resolution be adopted.

e. Resolution 2416
A Resolution Expressing Assembly Support for the Juneau Coordinated Transportation Coalition Plan 2007 Update, and Repealing Resolution 2395.

Public Transit/Human Services Community Coordination Plan

Transportation appropriation legislation passed by Congress in 2005, SAFETEA-LU, requires that in 2007 each community develop a Public Transit/Human Services Community Coordination Plan. The Assembly expressed support for the Juneau Coordinated Transportation Coalition (JCTC) Plan with the adoption of Resolution 2395 in March of this year. This Plan has been updated to identify needs and lay out strategies to address gaps in transportation services to qualify for the State Department of Transportation and Public Facilities Alaska Community Transportation grants. These grants require local government support for the Plan.

The Juneau Coordinated Transportation Coalition Plan, 2007 Update and Appendix has been provided to you. It addresses the gaps in services and strategies to meet the needs of the citizens of the City and Borough of Juneau. The CBJ Americans with Disabilities Act Advisory Committee has reviewed this Plan and recommends the Southeast Alaska Independent Living (SAIL) Taxi Token program as the number one priority project for Coordinated Transportation funding. Your support for the Plan and this recommendation is requested and provided by Resolution Serial No. 2416.

I recommend this resolution be adopted.

3. Transfers

a. Transfer T-856
Transferring $79,000 from the Montana Creek Trail Abutment project and the Dimond Park Restroom project to the Dimond Park Southwest Sewer Extension – 2007.

Budget Impact

This request would authorize the transfer of $79,000 in General Sales Tax and Areawide Street Sales Tax monies from the Montana Creek Trail Abutment project and the Dimond Park Restroom project to a new project: Dimond Park Southwest Sewer Extension – 2007. This request recognizes that sewer infrastructure is needed on the west side of the park to support future development and restroom construction in this area. The Montana Creek Trail Bridge has been repaired and the remaining funds are not needed for that project.

The Public Works and Facilities Committee approved this request at its June 11, 2007 meeting.

I recommend this transfer be approved.

4. Bid Awards

a. Bid Award # 07-234
Contract for the Purchase and Delivery of 3 New, Current Model Year, Ford Super Duty F-550 4x4 Conventional Cab Trucks with Dual Rear Wheels

Bids were opened on the subject project on May 30, 2007. The bid protest period expired at 4:30 p.m. on June 1, 2007. Results of the bid opening are as follows:

Bidder Name
3 Trucks Additive Alternate #1
Premium Care, 50,000 Mile Extended Service Plan ( 3 Trucks) Additive Alternate #2
Power Train Care, 50,000 Mile Extended Service Plan ( 3 Trucks)
Seekins Ford $179,673.00 $7,500.00 $0.00
Seekins Ford $198,644.00 $7,500.00 $0.00
Nye Ford No Bid

Buyer: Bob Brooks

Approximately 50% of the miles/hours usage of the vehicles with plows involve the plowing of wet, heavy snow off of City streets with hills up to 20% in grade. These trucks will carry stainless steel chemical spreaders hauling up to 2,400 pounds of materials. The remainder of miles/hours are general purpose use with varying load weights on terrain up to 22% in grade.

With the concurrence of Mike Scott, PW/Streets Superintendent, the Purchasing Division recommends award to Seekins Ford for the Total Bid and Additive Alternate #1 and #2, on the basis of having the lowest responsive bid price. Grand Total Award is $187,173.00.

Funding Source: 602-67-5-02-03-510 Vehicles & Equipment
Encumbrance: $ 153,000.00 Additional funds are available in the same fund to cover bid price.

I recommend award of this contract to Seekins Ford for the Total Bid and Additive Alternate #1 and #2, on the basis of having the lowest responsive bid price, for a total award of $187,173.00.


A. Ordinance 2007-35
An Ordinance Amending The Health And Sanitation Fine Schedule For Unauthorized Use Of Garbage Containers.

This ordinance amends the fine schedule for unauthorized use of garbage containers. CBJ allows for certain offenses to be disposed of without court appearance upon payment of a fine. This amendment would increase the fine for unauthorized use of garbage containers from $50 to $75.

The Docks and Harbors Board, at its April meeting, requested the Assembly consider raising the fine. The CBJ health and sanitation ordinance prohibits the disposal of refuse in harbor dumpsters that is not generated from vessels within a municipal harbor. As part of an effort to control operating costs, the Docks and Harbors Board is trying reduce the use of harbor dumpsters by non-harbor patrons. The Board estimates that up to half of its solid waste disposal expense is attributable to unauthorized use of harbor dumpsters. The current fine was established several years ago and is apparently no longer a sufficient deterrent to stop illegal use of harbor dumpsters.

I recommend this ordinance be adopted.

B. Ordinance 2007-39
An Ordinance Creating The D-10 SF Zoning District In Which Single Family Residences May Be Constructed At A Density Of Ten Units Per Acre.


Table of Permissible Uses

Table of Dimensional Standards

This ordinance would create a new zoning district which is modeled on the type of development in the Casey-Shattuck neighborhood (also known as the "Federal Flats"). In the proposed zoning district, residential development would be permitted at a density of 10 units per acre, but duplexes and multi-family residences would not be permitted except through the Planned Unit Development process. The proposed zoning district is intended to foster the development of detached single-family residences on smaller lots than are allowed in other single-family residential zoning districts.

No land would be zoned as D-10 SF under this ordinance, but the zoning district would be created for use in future rezonings.

The Planning Commission, at its February 27, 2007 meeting, recommended that the Assembly create this zoning district.

I recommend this ordinance be adopted.

C. Ordinance 2007-40
An Ordinance Amending The Setback Requirements In The MU And MU2 Zoning Districts.


Article IV

This ordinance would eliminate the front yard setback requirement in the downtown core area, which is zoned MU. Most of the historical buildings in this area have been constructed to the front property line, which does not comply with current setback requirements. In the Downtown Historic District, the front setback is currently determined by the location of buildings on adjacent properties in order to maintain a continuous streetscape. Outside the Historic District, however, new construction must be set back 5' under current setback requirements. This results in a discontinuous streetscape, and makes it difficult for new construction to include canopies to protect adjacent sidewalks.

This ordinance would also modify two exceptions to the setback requirements in the MU-2 zoning district, which encompasses the Willoughby Avenue area. The first of these modifications would clarify existing language in the Land Use Code regarding sight triangles on corner lots. The second of these modifications would allow canopies and roof eaves to encroach into the required front yard setback farther than is currently permitted, facilitating the installation of canopies over sidewalks.

The Planning Commission, at its April 25, 2007 meeting, recommended that the Assembly adopt these changes.

I recommend this ordinance be adopted.

D. Ordinance 2006-11(AZ)
An Ordinance Appropriating To The Manager The Sum Of $4,011 As Partial Funding For The Acquisition Of Alcohol Breath Testing Equipment, Funding Provided By The State Of Alaska Department Of Transportation And Public Facilities, Alaska Highway Safety Office.

Economic Impact Note

This ordinance would appropriate a $4,011 Alaska Department of Transportation and Public Facilities, Alaska Highway Safety office grant for the acquisition of alcohol breath testing equipment. This grant has no match requirements. This equipment will enhance officer effectiveness and ensure quality service by giving the police the ability to test alcohol breath content in the field.

I recommend this ordinance be adopted.

E. Ordinance 2006-11(BA)
An Ordinance Appropriating To The Manager The Sum Of $252,200 As Partial Funding For The Airport’s Fiscal Year 2007 Operating Budget, Funding Provided By Interest Income And Airport’s Retained Earnings.

Economic Impact Note

This ordinance would increase the FY07 Airport Budget from $4,120,800 to $4,373,000 (net increase of $252,200). This increase results from increases in commodities and services and personnel services costs related to the unusually snowy 2006/2007 winter the City experienced. This increase is funded from interest income and fund balance.

Airport’s retained earnings balance will be $2,747,900 after this appropriation.

The Airport Board approved this action at its meeting May 9, 2007.

I recommend this ordinance be adopted.

F. Ordinance 2006-11(BB)
An Ordinance Appropriating To The Manager The Sum Of $41,274 As Partial Funding For The Lakeside Culvert Replacement Capital Improvement Project, Funding Provided By The United States Department Of Agriculture.

Economic Impact Note

The CBJ has received a grant from the USDA’s Natural Resources Conservation Service for $41,274 to reconstruct a culvert crossing of Duck Creek at Lakeside Condominiums in the Mendenhall Valley. The existing culvert was in poor condition and was permanently damaged during attempts to clean it.

The terms of the grant are that the CBJ will be reimbursed for 75% or $41,274 of construction costs. The project is anticipated to cost approximately $117,000. The scope of the work is to remove old creosote timber retaining structures and replace with natural slopes, remove two smaller culverts and install a single larger culvert, and reconstruct the existing driving surface.

The Public Works and Facilities reviewed and recommended approval of this ordinance at its May 21, 2007 meeting.

I recommend this ordinance be adopted.

G. Ordinance 2006-11(BD)
An Ordinance Transferring $60,900 To The Land Acquisition Capital Improvement Project, The Source Being Unexpended FY06 Marine Passenger Fees Budgeted To The General, Docks And Roaded Service Area Funds.

Economic Impact Note

This ordinance would transfer $60,900 of unexpended Marine Passenger Fees (MPF) that are budgeted for specific purposes and not expended by year end to the Land Acquisition Capital Improvement Project. For FY06, CBJ is returning $60,900 in unexpended Local Emergency Planning Committee, Collaboration Juneau, Crossing Guard, and Downtown Sidewalk Maintenance funds.

I recommend this ordinance be adopted.

H. Ordinance 2006-11(BE)
An Ordinance Appropriating To The Manager The Sum Of $2,936,500 As Funding For The Purchase Of The National Guard Armory, Funding Provided By The Lands And Sales Tax Budget Reserve Funds.

Economic Impact Note

On April 20, 1999 the Alaska Mental Health Trust Land Office (TLO) and CBJ entered into a memorandum of agreement for acquisition of the Armory property. The property is located on the northeast corner of the Egan Drive and Whittier Street intersection. At the January 23, 2006 Lands Committee meeting, staff was directed to perform an appraisal to determine a purchase value for negotiations. The appraised value of the property is $2,930,000. Estimated closing costs and title insurance for the transaction are $6,500. The current assessed value of the property is $3,668,800. As interim uses, the Armory structure may be leased to Juneau Arts and Humanities Council and the parking lot area will be leased to the State of Alaska for employee parking. The Assembly has not determined a long term use for the property. The Comprehensive Plan, Parks and Recreation Plan and Subport Redevelopment Plan all reinforce the idea of obtaining the property for the expansion of Centennial Hall, performing arts, or a similar civic center type of use.

This was reviewed and approved by the Lands Committee at its June 11, 2007 regular meeting.

I recommend this ordinance be adopted.

I. Ordinance 2006-12(C)
An Ordinance Appropriating To The School District The Sum Of $590,600 As Partial Funding For The District’s General Operations, $93,500 As Partial Funding For The District’s Special Revenue Operations And $662,700 As Partial Funding For The District’s Other Operations And De-Appropriating State Foundation Funding And CBJ Support For School District General Operations, Funding Provided By The School District General Operations, Special Revenue Funds, State And Federal Grants, And Other.

Economic Impact Note

This ordinance will make the following FY07 School District budget changes –

General Operations $ 590,600
Special Revenue 93,500
Other 622,700
Total Budget Changes $1,306,800

Funding for the changes is provided from the following –

School District Operating Fund Balance Usage $1,178,600
School District Special Revenue Fund Balance Contribution (51,200)
State Foundation Funding Reduction (519,100)
State Grants 413,100
Federal Grants 166,700
Other 68,900
CBJ support to School District General Operations (119,400)

Funding Sources for Changes $1,306,800

These adjustments are requested by the School District due to enrollment for intensive needs students falling short of projections and to an increase in State and Federal grants. The School District General Operations Fund fund balance will replace the State Foundation funding and CBJ support for District general operations. In addition, State and Federal grant monies were received beyond the FY07 Assembly Adopted Budget.

This ordinance would appropriate additional expenditures for general operations, pupil transportation, food service, and grant-related expenditures.

I recommend this ordinance be adopted.


A. Liquor Licenses

Beverage Dispensary, Liquor License Renewal: Viking Restaurant & Lounge
Request for Informal Hearing

Due to an incorrect mailing of the initial notice of a potential protest to the Viking Restaurant & Lounge, Mr. Jack Tripp has requested that the Assembly reconsider its decision to protest the renewal of the Viking’s liquor license.

The Assembly, at its meeting of May 14, 2007, approved a motion to protest the renewal of the Beverage Dispensary license #2533, issued to the Viking Restaurant and Lounge at 216 Front St., based on non-compliance with the Building Code, and delinquent sales taxes. The Assembly’s motion included a provision that the protest would be withdrawn if the business comes into compliance with all CBJ codes, including payment of delinquent accounts, prior to action by the State of Alaska Alcohol Beverage and Control Board. The ABC Board meets July 11, 2007.

I recommend the Assembly reconsider its previous decision based on the incorrect mailing of the initial notice, and provide an opportunity for an informal hearing at this meeting.


A. New School Bonds, Proposed Contracting Methods and Schedules

B. Hood vs. CBJ Board of Adjustment – Notice of Appeal VAR2007-00010

On May 22, 2007, the CBJ Board of Adjustment approved a variance application for VAR2007-00010 for Mendota Park Parcel 2: A variance request reducing the 50 foot habitat setback from an anadromous stream to 28 feet for a truck scale. On June 12, 2007, Dixie Hood filed a timely Notice of Appeal of the decision to the Assembly. The Notice of Appeal is in your packet along with a copy of the Board of Adjustment’s Notice of Decision. 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.

Ms. Hood and the CBJ Board of Adjustment were 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 it to a hearing officer?
3. If the Assembly hears the appeal itself, will the Mayor preside, or will it 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.



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

Faith Community Schools Appeal
Enclosed in your packet is a letter from Faith Community Schools formally withdrawing its appeal, and requesting a refund of the appeal fee based on the adoption of Ordinance 2007-33 and in accordance with CBJ Code 01.50.030.





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: