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THE CITY AND BOROUGH OF JUNEAU, ALASKA

March 15, 1999

MEETING NO. 99-09: The Regular meeting of the City and Borough of Juneau Assembly, held in the Assembly Chambers of the Municipal Building, was called to order at 7:00 p.m. by Mayor Dennis Egan.

  1. FLAG SALUTE was led by Mayor Egan.
  2. ROLL CALL
  3. Assembly Present: Garrett, Kibby, MacKinnon, Perkins, Powell, Egan, Hagevig, Muņoz, and Koelsch

    Assembly Absent: None

    A quorum was present.

    Staff Present: Kelly Grant, Acting Deputy Clerk; Dave Palmer, City Manager; John Corso, City Attorney; Dave Miller, Airport Manager; Allan Heese, Airport Administrative Officer; Joe Buck, Engineering Director; Ernie Mueller, Public Works Director; roger Healy, Chief Projects Engineer; Kim Keifer, Director Parks and Rec.

  4. APPROVAL OF MINUTES
    1. 01/11/99 - Special Meeting No. 99-02
    2. 01/12/99 – Special Meeting No. 99-02
    3. 01/27/99 – Special Meeting No. 99-02
    4. 01/11/99 – Regular Meeting No. 99-03
    5. 02/01/99 – Regular Meeting No. 99-04

MOTION - by Kibby, to approve the minutes of Special Meeting No. 99-02, held January 11, January 12 and January 27, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

MOTION – by Kibby, to approve the minutes of Regular Meeting No. 99-03, held January 11, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

MOTION – by Kibby, to approve the minutes of Regular Meeting No. 99-04, held February 1, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

SPECIAL ORDER OF BUSINESS - None

  1. MANAGER’S REQUEST FOR AGENDA CHANGES
  2. Mr. Palmer requested pulling the Manager’s Info Item: Parks and Rec. Vending Regulation, from this agenda, to be rescheduled for the next meeting. There being no objection, it was so ordered.

  3. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
  4. Ethan Billings, P.O. Box 21877, Juneau, presented a hand out to the Assemblymembers. He testified as co-owner of Hoochi’s Sports Pub, regarding their request submitted to the city on March 4th regarding daylight savings hours. He represented over 25 businesses that would be effected by the time change. Currently, the clocks are moved back at 2:00 a.m. instead of 3:00 a.m. Because it was Gold Medal Saturday night, his business alone would lose between $1-2,000 because of that hour and a lot of other business would also lose revenue. There is an ordinance that the bar must close at 3:00 a.m., but he was not aware of an ordinance dictating when a daylight savings time happens. This sector of the community would be effected by one hour because normally the B Championship games do not get out until midnight; that would be a lost hour for partying, food sales, taxicab rides and other businesses. Past history shows this is the third largest party day of the year, beyond New Years Eve and Halloween. His request was turned in a month in advance, but he realized there would not be time to get an ordinance done. He requested moving the clock back at 3 instead of 2, to provide more revenues for their businesses and more tax revenue for the city. Mr. Palmer’s response to him regarding springing forward or falling back was not a fair trade, a random Saturday in October would not offset the losses incurred during a Gold Medal Saturday night championship night.

    Mr. Garrett asked Mr. Corso if there was a law stating a specific hour to adjust the clock. Mr. Corso said the time was ruled by the DOT, it is not a law. DOT sets the time of day for certain variable purposes, notably interstate commerce. It is largely custom and tradition that the CBJ follows that lead in view of the Charter amendment that expressly prohibits the Assembly from taking any action with respect to the time zone within which the CBJ operates. This bodies discretion is fairly limited. Mr. Garrett clarified that meant the city could not move into the Pacific Time Zone its our own decision. Mr. Corso said there was an election about 15 years ago on the time zone that amended the Charter and the Assembly was precluded from messing with the time zone.

    Mayor Egan postponed testimony on the DBE ordinance until that subject came up on the agenda.

    Susan Moreland, 9011 Long Run Drive, testified on behalf of the Juneau International Relations Committee. They received a request from the City of Vladivostok that two people represent the CBJ at the end of June for their sister city celebration. This year they invited two delegates from all their sister cities: China, Japan and the USA, to participate in a round table discussion to work on building stronger relationships for resolving problems. At the JIR meeting, they proposed one of the delegates come from the Assembly itself. She asked that the Assembly make a decision and appoint someone to travel to Vladivostok to work on this round table. Ms. Moreland said they had recommended two dates, either June 30th to July 7th or June 29th to July 6th. They have not made that decision yet. They have requested the names of those persons going as they are putting together an extensive agenda and they wanted to plan for it. They also wanted the two representatives to write a 5-7 minutes speech presentation that would be given to the group. They wanted enough lead-time to get all of the speeches and have them translated.

    Mayor Egan postponed testimony on ordinance 99-04 until that item came up on the agenda.

  5. CONSENT AGENDA

MOTION - by Garrett, to adopt the Consent Agenda as presented, and he asked unanimous consent. There being no objection, it was so ordered.

A. Ordinances for Introduction

1. Ordinance No. 99-11

AN ORDINANCE REPEALING AND READOPTING THE CITY AND BOROUGH OF JUNEAU LAND MANAGEMENT PLAN, AUTHORIZING THE SALE OF CERTAIN CITY AND BOROUGH LAND IN ACCORDANCE WITH THE PLAN AND SETTING FORTH THE TERMS AND CONDITIONS RELATED TO THE SALE.

Administrative Report: Attached. The Planning Commission held a public hearing on the Land Management Plan on March 9, 1999 and recommended adoption of the Plan with no changes. The Manager recommended this ordinance be introduced and set for public hearing at the regular meeting of April 5, 1999.

    1. Ordinance No. 99-12
    2. AN ORDINANCE CREATING LOCAL IMPROVEMENT DISTRICT NO. 85 OF THE CITY AND BOROUGH; FINDING THAT SUCH LOCAL IMPROVEMENT DISTRICT IS IN THE PUBLIC INTEREST; SETTING THE BOUNDARIES OF SUCH LOCAL IMPROVEMENT DISTRICT; PROVIDING FOR THE IMPROVEMENTS TO BE ACQUIRED, CONSTRUCTED AND INSTALLED CONSISTING OF RECONSTRUCTION OF EXISTING ROADBED AND SANITARY SEWER SYSTEM, AND NEW CONSTRUCTION OF PAVEMENT, CURB AND GUTTER, SIDEWALKS, UNDERGROUND STORM DRAINAGE, AND A HIGH PRESSURE WATER SYSTEM FOR PORTIONS OF JOHN STREET, DAVID STREET AND SIMPSON AVENUE AT AN ESTIMATED COST OF $1,725,000 OF WHICH AN ESTIMATED $280,429 IS TO BE BORNE BY PROPERTIES SPECIALLY BENEFITED AND AN ESTIMATED $1,444,571 BY THE CITY AND BOROUGH; DIRECTING THAT THE WORK BE DONE; THAT ANY LAND NECESSARY OR USEFUL BE ACQUIRED AND THAT EMINENT DOMAIN INCLUDING USE OF DECLARATION OF TAKING IS AUTHORIZED; CREATING SPECIAL ASSESSMENT FUND NO. 85; AND FINDING THAT SPECIAL BENEFIT TO THE PROPERTY WITHIN THE DESCRIBED DISTRICT EXISTS AND THAT EACH LOT OR TRACT WITHIN THE DESCRIBED DISTRICT WILL BE SPECIALLY BENEFITED IN PROPORTION TO THE AMOUNT ASSESSED.

      Administrative Report: Attached. The Manager recommended that this ordinance be introduced and set for public hearing at the April 19, 1999 regular meeting.

    3. Ordinance No. 98-17 (AF)
    4. AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $4,000 FOR PURCHASE OF A PAINTING FOR THE CITY MUSEUM’S PERMANENT COLLECTION. SUCH FUNDS PROVIDED BY THE MUSEUM ACQUISITION FUND.

      Administrative Report: Attached. The Manager recommended that this ordinance be introduced and set for public hearing at the next regular meeting.

    5. Ordinance No. 98-17 (AG)
    6. AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $139,839 FOR THE FOLLOWING AIRPORT CAPITAL PROJECTS: GUIDANCE SIGNS/LAYOUT PLAN, JUNEAU AIRPORT RUNWAY LIGHTS, AND ACQUISITION OF A REPLACEMENT UREA TRUCK. SUCH FUNDS, $135,376 PROVIDED BY THE FEDERAL AVIATION ADMINISTRATION AND $4,464 PROVIDED BY THE ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES.

      Administrative Report: Attached. The Manager recommended that this ordinance be introduced and set for public hearing at the next regular meeting.

    7. Ordinance No. 98-17 (AH)
    8. AN ORDINANCE AUTHORIZING THE MANAGER TO TRANSFER THE SUM OF $72,682.

      Administrative Report: Attached. The Manager recommended that this ordinance be introduced and set for public hearing at the next regular meeting.

    9. Ordinance 98-17 (AI)

AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $1,000,000 FOR MENDENHALL TREATMENT PLANT IMPROVEMENTS. SUCH FUNDS PROVIDED BY A LOAN FROM THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION.

Administrative Report: Attached. The Manager recommended that this ordinance be introduced and set for public hearing at the next regular meeting.

B. Resolutions

1. Resolution No. 1981

A RESOLUTION THANKING SENATOR MURKOWSKI AND CONGRESSMAN YOUNG FOR FEDERAL LEGISLATION SUPPORTING THE LAND AND WATER CONSERVATION FUND STATESIDE PROGRAM, AND URGING CONGRESS TO FULLY FUND THE LEGISLATION.

Administrative Report: Attached. The Manager recommended that this resolution be adopted.

    1. Resolution No. 1983

A RESOLUTION REQUESTING THE STATE OF ALASKA TO PROVIDE DIRECT GRANTS FOR CERTAIN CAPITAL IMPROVEMENT PROJECTS IN ORDER OF PRIORITY FOR FISCAL YEAR 2000.

Administrative Report: Attached. The Manager recommended that this resolution be adopted.

C. Bid Awards

    1. Bid Award No. E99-228:
    2. East End Improvements & Ramp at Aero Services.

      Administrative Report: Attached. The Manager recommended award of this project, contingent upon the adoption of Ordinance No. 98-17 (AD), to SECON, Inc. in the amount bid for the Base Bid and Additive Alternates 1, 2, and 3, for a total award of $502,237.30.

    3. Bid Award No. E99-190:

St. Ann’s Avenue Reconstruction.

Administrative Report: Attached. The Manger recommended award of this project to Arete Construction Corporation in the amount bid for the base Bid and Additive Alternate, for a total award of $1,196,214.00.

    1. Transfer Request:
    1. Transfer No. T659:
    2. Transfers $566,881, which closes twenty-seven Capital Improvement Projects and Provides Ongoing Funding for Thirteen Capital Improvement Projects.

      Administrative Report: The Manager recommended that this transfer be approved.

    3. Transfer Request No. T-660:

Transfers $2,715 from Airport Revolving Capital Reserve Account (CIP A345-33) to General Aviation and Air Cargo Area Improvements/Replacement of Snow Removal Equipment/Wildlife Study.

Administrative Report: The Manager recommended that this transfer be approved, contingent upon the adoption of Ordinance No. 98-17 (AD).

E. Liquor Licenses:

    1. Two-Year Renewals:

Restaurant/Eating Place: Jovany’s Italian Restaurant

General Wholesale: Alaska Distributors Co.

Package Stores: Costco

Administrative Report: The Manager recommended the Assembly adopt the Human Resources Committee recommendation and waive its right to protest the licenses as reported.

  1. ORDINANCES FOR PUBLIC HEARING

1. Ordinance No. 99-04

AN ORDINANCE REPEALING THE FOR-HIRE VEHICLE CODE, ENACTING THE COMMERCIAL PASSENGER VEHICLE CODE, AND ESTABLISHING PENALTIES FOR VIOLATIONS.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted. Mr. Corso gave a brief overview of the ordinance and the regulation included in the packet.

Mr. Garrett said the Task Force had a public hearing on Monday and then a meeting on Friday. The result of those meetings created the amended version of 99-04. He felt it was appropriate that if the Assembly were to hear testimony, it be on the amended version, 99-04 (am). It was his preference to postpone action on this ordinance until the first regular meeting in April so people would have time to read the amended version of the ordinance to see if their concerns had been addressed.

Mayor Egan said there was three people signed up to testify. Mr. Perkins supported Mr. Garrett’s motion in that it would not be fair for people to come forward to testify on the original ordinance 99-04 without seeing the amended version.

Mr. Powell was concerned that the industry was moving into their busy season. Mr. Garrett suggested adding this to the agenda of the special meeting of next week but that agenda was already pretty full with issues that would take a lot of time. Mr. MacKinnon said if the Assembly heard public testimony tonight, it would be closed for the amended ordinance. Mr. Corso said there was the option to continue public testimony.

Ms. Hagevig said the meeting on Friday was in response to the public testimony of Monday. Many of the same people have been present for all of the prior meetings. She supported not taking action on this ordinance tonight but she did feel the folks that were present tonight were due their opportunity to be heard. Ms. Muņoz agreed. Ms. Hagevig reiterated that most of the people present watched the committee amend 99-04 and the amended version is a product that represents the work of last Friday’s meeting.

Mr. Koelsch was in favor of allowing testimony tonight and he suggested adding this to the agenda of the special meeting on the 22nd. There was no objection to scheduling this for the meeting of the 22nd and Mayor Egan announced that public testimony would continue at that meeting.

Public Participation:

Ben Geonett, owner of the Airport Shuttle, 226 Seward Street. He testified that the ordinance did not mirror the regulations governing the ordinance. He referred to his letter and said he was concerned that the regulation stated the shuttle service endorsement shall authorize services which are limited to as a place and purpose of providing service to an identified market segment. The ordinance reads to him, that he would be okay to run his shuttle if he identifies the airport, the ferry and the cruise ships as his market place. Looking at the regulations designed to enforce the ordinance, it outlines airline passenger and tourship crewmembers, which does not open up the market and defines a closed market place. The conditions that the shuttle endorsement shall be subject to conditions specifying routes, schedules and stops reasonably necessary to serve the authorized market segment is okay but when you go to the route, the shuttle shall be limited to a line of travel which shall be described on the map identifying all streets to be traveled. He said last year they tried to stick to a route and a schedule and it was impossible to service the market place and left a lot of people out that they wanted to service because it created unnecessary traffic congestion, they were late for every stop and it made the airport shuttle service not viable or economically, cost prohibitive and inconvenient to their customers. He said the implementation of 20 CBJ AC40.530 would prohibit their ability to provide equality of service they were striving to develop in order to provide an enjoyable experience in this city. It was his hope that the Assembly agree the service which will provide reliable, safe, convenient, economical ground transportation be continued and allowed to develop in order to better service guests to the capital city. Their expanded service would be an added enhancement to the ground term station service while providing Juneau with additional amenities to make the capital city more attractive to meetings, conventions, and vacation planners which we all strive for here. He suggested identifying airplane passenger and crew members, tourship passengers and crewmember, Alaska Marine Highways passenger and crew members and to the conditions that a shuttle endorsement shall be subject to conditions classified market nitch to destinations and stops reasonably necessary to serve the authorized market segments. He proposed deleting the route since there was no way to stick to a route when running an airport shuttle. He also felt it was unnecessary and prejudicial for the CBJ to protect the cab industry and said may set a precedence. Citizens may ask why the CBJ Assembly did not protect the local shop owners who are being forced to go out of business due to the authorization of big industries into the community. He felt the Assembly should not interfere with free enterprise. As a business owner he would fight for better business practices including marketing, customer service and any other innovative way possible to survive, as should any other business when their industry is advanced upon by a competitor. He contended that the taxi industry was not in jeopardy and there would always be a cab industry in Juneau, it just may evolve to something different than what is seen today. He said if a resolution was not reached on this matter today, he would ask that the matter be tabled and the Assembly adopt a resolution that allows all parties involved to operate throughout the 1999 season and that the matter be brought up during the fall. Last season he and many operators were burdened with trying to defend their existing market, while trying to run their fast paced businesses in the summer which jeopardized many of their business. In addition to this delay, a resolution has already made it impossible for him to put together a plan so that he can be ready for the 1999 summer season. Without the ability to plan, it is very difficult for him to get a loan and be ready for the season. Mendenhall Auto has said it will take at least two months to get vans here in the right color scheme.

Ms. Muņoz said if the ordinance were discussed on March 22, when would it actually be implemented. Mayor Egan said it would be 30 days after being voted for, April 22nd. Ms. Muņoz said the Assembly should be willing to put the ordinance aside if there is no conclusion by the next two meetings. If that does happen, she would like to go with the existing ordinance as has been suggested.

Brad Gioletti, Taku Taxi, 102 North Franklin Street. He said a lot of the amendments that were made confronted the problems that the industry asked for. The sixteen months that the task force has been involved have made extreme headway pertaining to the local ground transportation industry. All over the United States, the cab industry is protected by their state. He did not think the issue needed to be shelved for another 16 months although there needed to be modifications and adjustments so this ordinance would run well. Shuttles, if you cannot operate a shuttle business, then you concentrate on the shuttle business and make that shuttle business run before expanding the shuttle business.

Kirby Day, Princess Tours, 76 Egan Drive. Testified that they did not want to be a taxi company. Concerning the proposed amendments 3 about courtesy vehicles, the detailed definition did not include hospital or medical care facilities. He said typically they, along with some of the other cruiseline companies in town, would take passengers who were ill to the Hospital, or dentist or doctor. That should be incorporated into the definition of a courtesy vehicle. They use their own vehicles to take their own employees out to the shopping mall or out to the Glacier and he questioned how that would be tied into the definition. Additionally, they may take a spouse who needs to go buy something at the store for that patient. On ADA vehicles, they currently have one five passenger van that they use exclusively to cater to those confined to a wheel chair. They advertise tours in their brochures that are wheel chair accessible so it is incumbent upon them to then provide that service. That is the only time that that vehicle is on the road. When conventions come to town, sometimes they are called and chartered to move a delegate confined to a wheel chair from one part of the city to the next. He asked that that vehicle alone be exempt from the ordinance and regulations so that they could continue to provide that service without incurring up to $2,000 in extra fees simply for that vehicle. They are not competing with the cabs because there are no wheel chair accessible cabs in town. He asked for an explanation of how anything heard at this meeting would be incorporated into what has already been written.

Mayor Egan said there would be additional public testimony at the meeting on the 22nd, and amendments would be discussed at that time.

Assembly Action:

MOTION - by Garrett to substitute Ordinance 99-04 with Ordinance 99-04 (AM). There being no objection, it was so ordered.

MOTION – by Garrett, to continue the public hearing on 99-04 (AM) to the special assembly meeting on March 22nd which will start at 5:00 p.m.

Mr. Kibby said he would be out of town from March 18 through April 3rd. He asked why the chauffeur’s license was still retained. Mr. Garrett said for a person to get a CDL, one must take the test in the vehicle that one is going to drive. A CDL test is for a vehicle that is 15 passengers and above so one would not be issued for a taxi driver. The chauffeur’s license exists really to plug the gap between those people who do have a CDL and those who do not. Mr. Kibby asked if it was ever discussed to eliminate that administrative level and to require they meet that level for the CDL permit. The companies could pull together and supply a van for someone to take that test. Mr. Garrett said there was one item in the chauffeur’s license that was not dealt with by the state and the CDL, the issue of criminal background checks on people. They heard from a number of individuals that the nature of riding in a cab, where you are frequently the only person in the vehicle with the driver, is potentially more risky to the traveler and the traveler deserves a higher level of assurance of the character of the person who is driving the vehicle. Being one of 50 people on a bus, it is less of an issue. They tired to avoid duplication of regulations, that was one of the purposes behind this code.

There being no objection to the motion, it was so ordered.

2. Ordinance No. 99-05

AN ORDINANCE AMENDING THE WATER UTILITY CODE TO ESTABLISH STANDARDS AND PROCEDURES FOR TERMINATION OF SERVICE.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted.

Public Testimony: None

Assembly Action:

MOTION – by Hagevig, to adopt Ordinance No. 99-05, and she asked unanimous consent. There being no objection, it was so ordered.

3. Ordinance No. 99-06

AN ORDINANCE AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ADOPT REGULATIONS GOVERNING PUBLIC USE OF THE MUNICIPAL TRANSIT SYSTEM.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted.

Public Testimony: None

Assembly Action:

MOTION – by Garrett, to adopt Ordinance No. 99-06, and he asked unanimous consent. There being no objection, it was so ordered.

4. Ordinance No. 99-09

AN ORDINANCE AMENDING THE PURCHASING CODE TO AUTHORIZE PARTICIPATION IN FEDERAL AND STATE DISADVANTAGED BUSINESS ENTERPRISE PROGRAMS AND TO REPEAL LOCAL ADMINISTRATIVE PROCEDURES.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted. Mr. Corso included a memorandum in the packet that gave a description of the history of the program.

Public Testimony:

Gerald Davis, 6742 Margarite, an Attorney representing Mr. Carl Niemi. He did not feel it would be any benefit to debate the benefits or costs of the DBE program as it exists now in Juneau. He said that legally, it is as close to a slam-dunk win as anything that has come through his office. Clearly, by the cases that have been decided by the US Supreme Courts, Supreme Courts of other states, and by the 9th Circuit Court of Appeal, there must be some justifiable basis for discriminating against people on the basis of their sex or the basis of the color of their skin. He said that justification was established for the DBE program that is in place. As such, he thought there was no way that the city would be able to legally support the continuation of that program if it were tested in court. If it was not repealed tonight, he was fairly confident it would be tested. He has done a lot of research and the complaint is done; it was going to be filed the day after the PW&F committee recommended that this ordinance be repealed. Mr. Niemi decided to wait and see the Assembly action. He suggested to Mr. Niemi that it might be in his financial interest for this body not to repeal this ordinance because under the federal law that this complaint would be brought, Mr. Niemi would be entitled to recover full attorney’s fees.

Karl Niemi, P.O. Box 34446, Juneau, Manager of Douglas Electric. Currently the DBE program is receiving a 10% bidder's preference over the rest of the general and sub contractors. This is unconstitutional, just as it would be unconstitutional to keep them from bidding on projects. They bid the same jobs, pay the same wages, and draw their work force from the same pool of people so he asked why they should be given a 10% preference. He asked how a company could bid large jobs and call themselves a disadvantaged business enterprise. He said the program had outlived its usefulness and needed to be stopped now.

John Walsh, 209 St. Ann’s Avenue, co-owner with his father of Douglas Electric. He said on the last bid he felt up against the wall. He spent a lot of time and money to put a good price together to benefit the city. Then numbers were so close that when this went through, he felt he was the one being discriminated against. He urged the Assembly to amend it or to do away with it completely.

Robert Jewell, Auke Bay, owner, Alaska Electric and Control , Inc. Currently, there is an extreme amount of competition and a 10% DBE puts the rest of the contractors out of the game. He turned down bidding a couple of jobs because they had DBE and it was not worth his time. A lot of jobs are handed to DBEs just to meet the requirements, making it completely unfair to the others. When he called about getting a line of credit with suppliers, he was told that it was against the law to discriminate, it was based solely upon the credit references and had nothing to do with minorities. He thought it would be better to use the money to do something useful in society instead of just giving it to a few people making them extremely wealthy.

Carla Meeks, P.O. Box 33881, Juneau. She presented each Assemblymember with an item she received in the mail from the State of Alaska DBE DOT/PF, about the DBE. Despite previous testimony, the DBE is not dead; it is out there. The ordinance was brought to the Assembly as if it was no big deal, as if it was just a pass through type of thing. It was read at the last meeting and there was no public outcry. There was no one here to defend it because no one here that would have had an interest on the other side knew about that meeting. They did not know about the PW&F meeting and no one knew what happened. None of the minorities were invited to the meeting, either officially or unofficially. The information that has been presented by CBJ Engineering, the City Manager and the City Attorney, plus the testimony that has been presented is full of errors, half-truths, misinterpretations and innuendo. It is only one sided and it is discriminatory against the people in this community that they claim they are not discriminating against. The DOT handout deals with the new rules for the DBE, it does not abolish the DBE and none of the federal stuff has abolished the DBE. It is a new DBE. She had documentation showing that other organizations, national, state and even city, support things that are being done to help minority contractors because they believe the minority contractors still need to be helped. In order for the Assembly to approve or disapprove the DBE, it is necessary that the Assembly have the information to make an informed and intelligent decision. The decision needs to be based on whole truths and all the facts. The correspondence that she faxed to each Assemblymember this weekend listed a small portion of the many instances where all the information was not presented. She said she could show for each of those that the Assembly did not get all of the information or all of the facts. This is not an issue of personal experiences or of who lost which bid to whom. This is an issue concerning the process that we arrived at the decision tonight to have this ordinance. The Assembly is not the place to debate the DBE; the place to debate the DBE is in a sub-committee meeting where every one has a clear shot on it. She asked that the Assembly remand this item back to its proper place in a sub-committee.

Mr. Kibby referred to the bottom paragraph of her letter. He asked about the actual dollar cost to the city. Ms. Meeks said there were two numbers kicked around a lot, the $55,000 DBE bonus and the 10%. She said there was a 2% difference between her number and Mr. Niemi’s number. It was not 10% and there is not a 10% bonus. The 10% is a cap, not an actual amount. Her bid on the Police Station was $1.277M, the bonus was $55,000 and she said there was no way to get to the 10% on that. 10% of a $6M job would be $600,000 not $55,000. She said her bid contained $20,000 worth of additional work that Mr. Niemi’s did not, so the actual difference between those two bids was only really $20,000. In the paper Mr. Niemi was quoted as saying $42,000, but the actual dollar difference between their bids was only $36,000. When this bid was out there in the beginning, they had no qualms about awarding it to Tripplett over Nuna and that was $140,000. There are times when you have to do the right thing.

Mr. Garrett asked what exactly does the document she handed out mean. Ms. Meeks said it was a letter, attached to a number of forms that she would have to complete, that she received from the DOT, as did any other DBE registered contractor, that has to be completed immediately in order to continue to qualify. The DBE regulations and qualifications are being changed so that exactly what these gentlemen are saying, does not happen. Jobs will not go to someone because of their gender or color but because they truly are economically socially or otherwise disadvantaged. The new watchword in DBE is "narrowly tailored". The CBJ laws are not narrowly tailored and they need to be, not just thrown out. That was why she was asking that it go back to committee, so that could happen.

Mr. Powell said if this ordinance were passed, doing away with the CBJ’s participation in some ways in the program, how would that affect her business. Ms. Meeks was not sure because they have had exactly 10 days to deal with this and to try to respond; she had not figured that out. She would not want to go so far as to say it would put her out of business. As a matter of fact, she was not so positive that she would qualify under the new DBE program. She said this seemed to be a bigger petition from the IBEW than any other place, there are more people here than they usually have at a meeting. She was sorry to see that the City would not give any consideration to those that would still qualify.

Mr. MacKinnon apologized for not bringing this up to Ms. Meeks but he said he did not consider her a disadvantaged contractor; she has no disadvantage over any other male contractor. Ms. Meeks added that she has advantages over them, not withstanding the DBE. But, in this case, the electrical contractor has become a very visual part of the Police Station bid. Mr. MacKinnon asked how many minority-owned subcontractors were in Juneau. Ms. Meeks said seven – two electrical DBE contractors. She said they pulled the bid list and over the past fours years, there had been about the appropriate percentage of electrical work going to non-DBE contracts. Mr. MacKinnon said that DOT had a mandatory goal and Mr. Meeks said that that was another misconception, she could not find that anyplace in a spec book.

Ms. Hagevig asked under the personal net worth requirement that is anticipated in state regs, what that might look like. Ms. Meeks said $750,000.00 of net worth, period, between you and your spouse. That includes the value of your company, your vehicles, and your personal items. She was not sure if they would consider award of a contract an asset. Ms. Hagevig asked if she knew when the regs would be approved and implemented. Ms. Meeks said it became effective March 4th. The federal DBE said that they were going to cause the states to enforce this at the time of their yearly renewal. She said that if the city expects to participate in grant monies from the feds or the state, they would be required to comply with the new federal DBE regulations. One section says that eligibility to participate in the DBE program would have to be determined at the regional level – city. Then it says it is up to the entity to prove that discrimination does not occur in order for the city to collect those funds. She said she would not dispute he city’s contention that doing the study will cost big buck, but the city will have to any ways if they feel they want to continue to participate in receiving those funds.

Ms. Hagevig asked for a response from staff and she asked if they had a copy of the letter Ms. Meek presented to everyone and she asked specifically about the first paragraph. Mr. Palmer had not seen the letter. Ms. Meeks said that represented all the work that was city funded in Juneau. Mr. Palmer said what was issue was whether or not there was a desire to have DBE applied to city funded projects, not federally funded projects. If the feds have a requirement, that’s what the city will do. Most of the federal money is coming through the Airport. Ms. Hagevig asked if that included the city part of the matching or just the federal side of it. Mr. Palmer said the project would have to qualify.

Mr. Powell clarified under the ordinance being considered, that the city would still participate in the state and federal law programs. He asked what percentage of the projects would not be covered. Mr. Palmer said that there was typically $5-6M in sales taxes money per year, used for city projects and firms would have to compete on a low bid basis, as opposed to low bid plus a bonus. The lowest qualified responsive bidder would get the job.

Mr. Perkins referred to the Manager’s Report and he asked Mr. Palmer to review his math and if in deed Ms. Meek was right, he instructed Mr. Palmer to respond to her how he came up with $50,000. Further, he asked the Manager to apologize to Ms. Meek for stating what has been stated, when in actuality it was wrong. Mr. Palmer said with regard to the $50,000 amount, it was his fault as he accepted the number he got from the folks who analyzed it. He did not doubt Ms. Meeks’ comment that it was a cap and represents an amount that was the maximum. He also agreed the point was not to debate the actual amount for specific projects. What brought this to staff’s attention was the letter of December 14 from Mr. Walker that pointed out the fact that the laws had changed and this program, as presently constituted, is most likely illegal. The issue did not come up because of the Police Station bid. The City Attorney researched it and found the program, right now, probably would not sustain a legal challenge. He apologized for having the number wrong, if in fact it was.

Ms. Meeks said when the bid was out on the street and everyone was bidding it, her company made a statement of how much the DBE could effectively reduce the bid. When we did that, we calculated it at $55,000 and Engineering came back and said that could not be right. We had to go back and prove that the original calculation had been done right. No one was disputing the $55,000 DBE; the question was who was paying it. The city is only paying roughly $20,000 extra, not $55,000. The money is reduced by the general contractor in terms of what he bids. If he knows the city is going to pay $55,000, he will take $55,000 of his bid because if he does not, the other general contractor will. The difference is the difference between her and Mr. Niemi’s number.

Mr. Powell said he was a bit uncomfortable with the testimony but he did not want to send it back to a committee.

Assembly Action:

MOTION – by Powell, that this ordinance be postponed until the next meeting. The ordinance would still be open for public hearing.

Mr. Koelsch said both sides should be represented in the discussion and the proper committee would be the COW. Mr. MacKinnon suggested adding it to the agenda of the 29th.

Mayor Egan asked if Douglas Electric filed suit tomorrow, would it be handled in house. Mr. Corso said the ordinance has problems, and if it was challenged in court, the experience might wind up costing the CBJ money, but it would not be for outside council fees, it would be handled in house.

Mr. Powell agreed to the 29th for a COW. There being no objection to the motion to defer, it was so ordered.

R E C E S S

8:37p.m. – 8:50 p.m.

    1. Ordinance No. 98-17 (AD)

AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $1,001,217 FOR GENERAL AVIATION AND AIR CARGO AREA IMPROVEMENTS, REPLACEMENT OF SNOW REMOVAL EQUIPMENT AND A WILDLIFE MANAGEMENT STUDY AT THE JUNEAU INTERNATIONAL AIRPORT. SUCH FUNDS, $968,920 PROVIDED BY THE FEDERAL AVIATION ADMINISTRATION, AND $32,297, PROVIDED BY THE ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted.

Public Testimony: None

Assembly Action:

MOTION – by Garrett, to adopt Ordinance No. 98-17 (AD), and he asked unanimous consent. There being no objection, it was so ordered.

    1. Ordinance No. 98-17 (AE)

AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $2,800,000 FOR CONTINUATION OF PHASE II OF BARTLETT REGIONAL HOSPITAL’S PROJECT 98. SUCH FUNDS PROVIDED BY BARTLETT REGIONAL HOSPITAL RETAINED EARNINGS.

Administrative Report: Attached. The Manager recommended that this ordinance be adopted.

Public Testimony: None

Assembly Action:

MOTION – by Hagevig, to adopt Ordinance No. 98-17 (AE), and she asked unanimous consent. There being no objection, it was so ordered.

  1. UNFINISHED BUSINESS - None
  2. NEW BUSINESS - None
  3. ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS
    1. Manager’s Report - Action Items - None

B. Manager’s Report - Information Items

    1. Parks and Recreation Vending Regulations
    2. This item was postponed.

    3. Mr. Palmer noted that on Wednesday the 17th, at 2:00 there would be the ground breaking ceremony for the Police Station on Alloway Street.

C. Attorney’s Report

Mr. Corso noted he would be going out of town and would miss the next meeting.

  1. MAYOR AND COMMITTEE REPORTS ON NON-AGENDA ITEMS
    1. Revised Pending Items
    2. Unappropriated General Fund Unreserved Fund Balance
    3. Assembly Contingency Fund Balance
    4. Committee Reports
    1. Standing Committees:
    1. Committee of the Whole – Mr. MacKinnon said there would be a COW on Monday the 22nd, following the special meeting which would be dealing with the discussion of a special election this spring and the CPV ordinance. The COW would include discussion on the Tee Harbor water line extension and Pt. Stephens. There would also be a COW at 5:00 on the 29th to discuss ordinance 99-09.
    2. Finance Committee – Mr. Perkins said Mr. Palmer and staff had been working hard on the budget and they were coming along tremendously. He was hoping for good news about the proposed budget shortfalls. He and Ms. Hagevig would be meeting with staff about formulating the finance deliberations coming up.
    3. Human Resources Committee – Nothing to report.
    4. Lands and Resources Committee – Mr. Kibby reported that the Lands committee approved a one-acre parcel past Nine-Mile creek on the North Douglas Highway for a community garden; the recommendation would be presented at a future Assembly meeting. They also heard from a group promoting the sale of the CBJ Lemon Creek Gravel Pit. Lands requested the Manager evaluate the data presented and provide and analysis with options ranging from CBJ ownership to an outright sale for discussion at the following meetings. Lands voted unanimously to designate the land identified for a future school site be identified as educational in the DZ master plan. Lands requested the Manager present existing ordinances and options in regards to addressing squatter issues at the next meeting. They also requested the Manager to review and present options in regards to commercial and non-commercial harvesting of timber at the next meetings. They, at the Assembly’s direction, reviewed the Harbor Board’s request for tideland lease revenues and denied Harbors request for existing tideland lease revenues. The committee agreed for Harbor’s to pursue an additional state tideland leases and reviewing the lease revenues at a future date. In January, Goldbelt's CEO, Joe Beadle, appeared before the committee and requested CBJ support for bid or RFP release for West Douglas Trees for Roads concept with CBJ administrating the project. Mr. Beadle explained that Congress approved $2M for the road extension and assured more funds would be available if progress was made on the project. The Lands Committee requested that the Manager identify CBJ requirements needed to enable the development to proceed and then draft an RFP which would not be implemented until the CBJ and Goldbelt have identified and agreed to the outcome of the development such as utility easements, public access etc. At the last Lands meeting, Mr. Palmer and Mr. Beadle presented a Memorandum of Agreement pertaining to the extension of the North Douglas Highway. The committee requested that the Manager negotiate definite, binding terms in the MOA. The negotiation will go beyond any conceptual terms and specifically identify pieces of land for public access, utility easements and recreation. Mr. Beadle requested CBJ take a parallel approach to the development of the North Douglas Highway extension, the approach to proceed with issues that can be initiated concurrently was unanimous. The next Land meeting would be April 14th, room 211 at noon.
    5. Public Works and Facilities Committee – Mr. Garrett said there would be a meeting at noon on Wednesday for updates on the Mendenhall Wastewater treatment plant, the downtown parking study and a Jenkins Drive LID. There had been a meeting scheduled at 5 p.m. on the building code review but that meeting would be rescheduled to the following Wednesday, the 24th at 5:00 p.m.
    1. Board Liaison Reports

Mr. Powell, in reference to the Airport Board, thanked Mr. Corso for getting an opinion to the board on sales tax and other items.

Mr. Koelsch said tomorrow, at noon in the chambers, there would be a meeting of the Transportation Steering Committee including a discussion of the Areawide Transportation Plan Scope of Work and a review of the proposed Parking Supply and Management Policy.

Mayor Egan said the Alaska Committee would meet on Wednesday at 7:00 at the JEDC conference room.

  1. ASSEMBLY COMMENTS AND QUESTIONS
  2. Mr. Koelsch asked Mr. Corso if the time zone issue was in the Charter. Mr. Corso said that the DOT regulations about time zones are binding on the city due to extraordinary circumstances. The city code is a local law on the books that cannot be changed because it takes 30 days before an ordinance amendment can become effective. The issue came up less than 30 days from the date in question. Mayor Egan said there would be another request from the Hanger that the bar closing hours be extended at the end of the Legislative Session.

    Mr. Garrett asked Mr. Corso if there was anything that prevented the Assembly, by motion, from adopting a resolution that says on April 4th, for official time keeping purposes of the CBJ, the transfer of time from standard to daylight savings time would occur at 3:00 a.m. Mr. Corso would need to check the Charter.

    Mr. Kibby suggested extending the bar hours for specific days requested, or at least starting the ordinance to be ready for the following year. Mr. Perkins suggested asking the police chief about what he thought about the idea. Mr. Corso said that Charter, section 3.19 provides that "the Assembly may not sponsor, petition, propose, recommend, refer, or otherwise act in anyway to provide for a change of the pacific time zone applying to the area of a municipality". What Mr. Garrett had suggested would be a different way of calculating a time for the zone we are in. This language is very strict and he thought the Assembly would be sticking its neck out to manipulate the time applicable to the CBJ and he recommended against it. Mr. Koelsch said he was looking at this more from the perspective of hospitality. There were times when you get out of a place and you want to go and gather. The hospitality of having some place open would provide that place to gather. He would like to try to accommodate the hospitality of Juneau. Mr. MacKinnon said there was nothing in the ordinance that says they cannot stay open, it just says no one can consume, sell, offer for sale, furnish or deliver alcoholic beverage after that time. He said he would like to see flexibility for special events. Mr. Koelsch asked for research to see how this could work so it could be considered in the future. Mr. Corso said the Assembly could identify particular dates or particular occasions. He said it might be possible to delegate authority to the Manager to provide for different hours with limits on his discretion. He would look at the statutes for that. Mayor Egan asked him to consider delegating authority to the chief of police and the manager.

    Ms. Hagevig clarified that the bar hours in Juneau were set as a result of an election action. Mr. Corso said this would be a different class of ordinance than for a dry community. Mayor Egan clarified to Mr. Billings that there would be no way to grant his request this year. Mr. Garrett requested Mr. Corso research the legal interpretation of the applicability of section 319 of the Charter, since the CBJ was not in the Pacific Time Zone right now.

    Mr. Koelsch referred to the request to send two people to Vladivostok. He asked if the Assembly normally appropriated money to sent two people. Mr. Powell said for this particular location and trip, accommodations were taken care of and all that would be required would be the airfare from Anchorage. Mayor Egan suggested the Clerk be directed to research the cost and report back at the first meeting in April.

    Mayor Egan said the Whitehorse Contingency would be here Friday and an agenda was prepared today that would be delivered in the morning. There will be a Saturday meeting starting at 9 and ending at 3 in the Treadwell Room at the Baranof.

    Ms. Muņoz requested discussion of the full body on the issue of Perseverance Trail to receive a status report on the issues of maintenance, funding, and ownership. It was agreed that discussion would occur on the 19th of March, at noon, during the delegation meeting.

    Mr. Kibby asked Mr. Corso if there was anything within the Charter requiring review of the Charter. Mr. Corso believed there was a provision for a Charter Convention. He would need to verify if it was required to be on the ballot every ten years. Mr. Kibby asked for a report at the next regular meeting in April. Ms. Hagevig added that the League of Women voters schedules a study of the local Charter every ten years.

    Ms. Hagevig congratulated the Capital City Quilters for a magnificent quilting show at Centennial Hall. She also announced that the SE Conference, winter board meeting would be held in Juneau beginning at 1:30 p.m. at the Baranof starting Monday the 22nd until mid-day on March 24th.

    Mr. Powell said the path between the Fireweed Place and the parking lot for the SOB was flooded and had been flooding a lot. He asked if the drain could be checked.

    Mr. MacKinnon congratulated the JDHS boys and girls basketball teams for their great performance over the weekend. Mayor Egan added that the state tournament starts on Thursday in Fairbanks.

    Mayor Egan said that he was very impressed with Mr. Roots at their meeting with Senator Stevens. He was working very well with Mr. Smith on the NOAA Facility, and the agreement was that Mr. Smith would handle the administration and Mr. Roots would handle the hill and everything would be coordinated through Mr. Roots. They discussed the urgency of the city’s priorities and decided to do three major issues: the second channel crossing study, Douglas Harbor, and the snow removal equipment building. They had favorable response from Senator Stevens, Senator Murkowski, and Congressman Young. There would be a NOAA scoping meeting with people from Washington DC coming to Juneau, April 6 - 9 at the Federal Building to decide how to move forward on the design and hopefully ultimate construction of the facility. He said there was an opening for two individuals from the city and Mayor Egan and Mr. Palmer would attend. There was also an opening for one person from the University.

    Mayor Egan added that they did meet with John Katz, the Governor’s person in Washington DC, and also Anna Kurtulla who attended those meetings. Both Mr. Katz and Ms. Kurtulla have been very helpful in the NOAA discussions. The Governor would be writing another letter to the Secretary of Congress on behalf of the NOAA facility at Lena Point.

  3. CONTINUATION OF PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
  4. Ethan Billings, asked where it says the clocks have to be moved back at 2:00 a.m. instead of 3:00 a.m. Mr. Corso suspected it was a function of the time zone language as set by DOT. Mr. Corso would report back to Mr. Billings in the morning. Mr. Billings agreed with adding a footnote to the Charter for hospitality events as suggested by Mr. Koelsch.

  5. ADJOURNMENT - There being no further business to come before the Assembly, and no objection, the meeting adjourned at 9:30 p.m.

 

Signed: ________________________________

Mayor Egan

 

Countersigned: ________________________________

Kelly Grant, Acting Municipal Clerk