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THE CITY AND BOROUGH OF JUNEAU, ALASKA

SEPTEMBER 20, 1999

MEETING NO. 99-30: 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, Muñoz, and Koelsch

    Assembly Absent: None

    A quorum was present.

    Staff Present: Marian Miller, Municipal Clerk; Dave Palmer, City Manager; John Corso, City Attorney; Donna Pierce, Deputy Manager; Joe Buck, Engineering Director; Al Heese, Airport Administrative Officer; Mike Doyle, Fire Chief; Mel Personett, Police Chief; Kim Kiefer, Director Parks and Recreation; Ernie Mueller, Public Works Director; Joan Wilkerson, Personnel Director; Craig Duncan, Finance Director; Cheryl Easterwood, Community Development Director.

  4. APPROVAL OF MINUTES

    1. 07/26/99 - Regular Meeting No. 99-22
    2. 08/17/99 – Special Meeting No. 99-25
    3. 08/19/99 – Special Meeting No. 99-26
    4. 08/23/99 – Special Meeting No. 99-27

MOTION - by Kibby, to approve the minutes of Regular Meeting No. 99-22, held July 26, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

MOTION - by Kibby, to approve the minutes of Special Meeting No. 99-25, held August 17, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

MOTION - by Kibby, to approve the minutes of Special Meeting No. 99-26, held August 19, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

MOTION - by Kibby, to approve the minutes of Special Meeting No. 99-27, held August 23, 1999, and he asked unanimous consent. There being no objection, it was so ordered.

SPECIAL ORDER OF BUSINESS

    1. SAGA Campground Crew Proclamations
    2. Mayor Egan read the proclamation into the record and presented a copy to each of the volunteers who worked on the Thane Road campground.

    3. Juneau Douglas High School Girls’ Fast Pitch Softball Team Proclamations
    4. Mayor Egan read the proclamation acknowledging their win over Service High School in the State Championship into the record and presented a copy to each of the coaches, the managers and the players.

    5. Swearing in of Mel Personett, Police Chief

Mr. Palmer read the oath with Mr. Personett, the new Police Chief. Mayor Egan congratulated him on his achievement.

  1. MANAGER’S REQUEST FOR AGENDA CHANGES
  2. Mr. Palmer asked that item D4, Bid Award No. E00-094: Juneau Library Carpet Replacement, be deleted from the agenda. There being no objection, it was removed.

  3. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS - None
  4. CONSENT AGENDA

Ms. Muñoz asked for the removal of item B1, Resolution No. 2003. Mr. Perkins asked for the removal of item D2, Bid Award No. E99-412.

MOTION - by Hagevig, to adopt the Consent Agenda as amended with the removal of items B-1, D-2 and D-4, and she asked unanimous consent. There being no objection, it was so ordered.

A. Ordinances for Introduction

1. Ordinance No. 99-17 (J)

AN ORDINANCE APPROPRIATING TO THE MANAGER THE SUM OF $39,895 FOR JUVENILE DELINQUENCY PREVENTION. SUCH FUNDS PROVIDED BY THE ALASKA DEPARTMENT OF HEALTH AND SOCIAL SERVICES.

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

B. Resolutions

C. Transfer Requests:

1. Transfer No. T-673: Transfers $35,000 from CIP R412-75/Street Reconstruction Reserve to CIP P396-31/Cope Park Slope Stabilization.

Administrative Report: Attached. The Manager recommended that the transfer be approved.

  1. Bid Awards:
  1. Bid Award No. 99-338: Term Contract for Urea Deicing Chemical.

Administrative Report: Attached. The Manager recommended award of this project to Wolfkill Feed & Fertilizer in the bid amount of $69,300.

  1. Bid Award No. B00-086: Fire Department High Pressure Breathing Air System.

Administrative Report: Attached. The Manager recommended award of this project, to Young’s Firehouse in the amount of the bid for a total award of $49,950.87.

B-1 Resolution No. 2003

AN RESOLUTION ENDORSING CERTAIN ELEMENTS OF THE LYNN CANAL TRANSPORTATION IMPROVEMENTS PROPOSAL BY GOLDBELT, INC. FOR FUNDING THROUGH THE ALASKA STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM.

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

Mr. Garrett requested to be excused as Goldbelt was a client of his, although he said he was not working on any projects associated with either of the two road projects. Mr. Corso agreed with the request and Mr. Garrett was allowed to step down.

Public Participation: None at this time

Assembly Action:

Ms. Muñoz did not feel it was necessary to include Egan Expressway improvements in the resolution and she asked that that be deleted. Several things had been proposed for Egan Expressway that had not been through the public process.

MOTION - by Hagevig, for the purpose of discussion.

Ms. Muñoz said the reason she proposed the amendment was that later in the packet there was input from the Transportation Steering Committee and the Public Works and Facilities (PW&F) on the STIP. One of the issues that was identified was an immediate need to get more public input regarding the Egan Expressway. She thought it would be better to delete that from this definition and she was not opposed to using Glacier Highway or Veteran’s Highway.

AMENDMENT – by Muñoz to replace "Egan Expressway" with "Glacier Highway". There being no objection, it was so ordered.

Mr. Powell asked the purpose of the resolution. Ms. Muñoz thought Goldbelt had requested it.

Mr. Koelsch said his objection to the resolution was that there had not been a lot of community discussion and this may signify a recommendation of the Assembly. There should be more discussion about a ferry terminal at Cascade Point and whether or not a person would want to get up at 3:00 a.m. to drive from town to Cascade Point to meet or catch a ferry.

Ms. Hagevig said no one from Goldbelt had been present to discuss the current proposal at PW&F. Those present understood from previous discussions with Goldbelt that this was simply a formality for the Assembly to do in order to move their proposal up in the STIP process. She did concur with Mr. Koelsch that there was a need for some rationale. She asked the Manager if there was a sense of urgency on this matter. Mr. Palmer said that the State Department of Transportation and Public Facilities (DOT/PF) was collecting comments. He added that he had spoken with Mr. Beadle who said he would be attending this meeting, but he was not present. Ms. Hagevig suggested postponing action on this matter until there could be the benefit of discussion with Goldbelt.

MOTION – by MacKinnon, to defer this item until October 4, 1999. There being no objection, it was so ordered.

Mr. Garrett returned to his seat on the panel.

D2 Bid Award No. E99-412: Hagevig Fire Training Center Fuel Tank Renovations.

Administrative Report: Attached. The Manager recommended award of this project to Channel Construction, Inc., in the amount bid for the Base Bid and Additive Alternate, for a total award of $93,250.00.

Public Testimony: None

Assembly Action:

MOTION – by Perkins, for the purpose of discussion.

Mr. Perkins referred to the requirement that each individual had to complete a 40-hour HAZWOPER course. He clarified that when the contractor submitted the application, he submitted those licenses or certifications. Mr. Palmer said that it was a requirement of the low bidder, but he did not think the licenses were checked before the work was started.

Mr. Perkins asked unanimous consent. There being no objection, it was so ordered.

  1. ORDINANCES FOR PUBLIC HEARING

1. Ordinance No. 99-31

AN ORDINANCE AMENDING THE COMMERCIAL PASSENGER VEHICLE CODE TO ALLOW COURTESY VEHICLES TO TRANSPORT PASSENGERS BETWEEN A COMMERCIAL LODGING FACILITY AND THE STATE CAPITAL BUILDING.

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

Public Participation:

Mayor Egan limited testimony to three minutes per individual.

Joyce Wiltshire, the General Manager of the Super 8 Motel. She did not understand how the city could tell them where they could go with their vans. They’re a customer service business and are not dependent on the tourism. They want the ability to run a business and without this service to customers, their business will drop drastically. It will also affect the economy, as they could not take customers to three grocery sites: Costco, Kmart and Fred Meyer. If it is raining, she could not even take them across the street to the Mall. People come from out-of-town, without a vehicle, and they expect common service for the price they pay for the room. She said they had already had about 20 customers walk out the door because she could not give them the service they wanted.

Mr. Perkins asked where the people who left went to stay. Ms. Wiltshire said they took a cab uptown so they would be closer to town and to the other stores. Mr. Perkins said in most places where he has stayed, they do not offer the service that she offers through the shuttle, other than to and from the airport. He understood a lot of the instances she stated about being a customer service or customer-oriented type of business and he agreed with the philosophy, but he wanted to be sure she had followed the issue and went to the meetings. He did not defend the cab industry, but stated that they felt there had been an infringement on them trying to make a livelihood in as much as picking passengers up and taking them to places around the community. He felt the Assembly was in a pickle, trying to make both sides happy. He referred to a letter received regarding three taxi drivers, two from one company and one from another, who refused to take a passenger from the Airport to the Mall and back because they were waiting on a plane for a better volume of passengers. He would not tolerate that and was very upset by it.

Glen Kramer, representing the Travel Lodge Hotel. He represented the courtesy vans at all the meetings, except for the last four meetings with the Human Resource Committee (HRC). At the meetings he attended, they went on and on about the for-hires and after four meetings, he asked why he, as a courtesy van, was there. A courtesy van does not charge and does not collect any money. There had been some confusion as to what was considered a shuttle and courtesy van and he presented a lot of information at those meetings as to what a courtesy van does. At that point, the committee was together on what a courtesy van does. He distributed a number of letters from customers and said the one on top was from a lady at the airport who was in a wheelchair. She could not get onto the courtesy van so she asked the cabdriver to give her a ride. The cabdriver refused and stated that the hotel had their own van and could come and get her themselves. Mr. Kramer came back for a second trip and was informed that the women was crying and was very upset. He talked with her and she said the cabdriver would not give her a ride, although he gave a ride to the next person who came up to him wanting to go to town. Mr. Kramer said he would come back for her in their smaller van. He did that and then explained to her about the meetings and offered to bring in a letter from her if she would care to write one about her experience. She would not only sign it but would put her title on the letter and said she was appointed by Governor Tony Knowles as the head of Living with Disabilities. After six or seven meetings, he was not called for a couple meetings as they were delayed or cancelled. At the last meeting he attended, he was told by the committee that there would not be anymore things brought up about the courtesy vans; he had brought in enough information and that topic would be dropped. Now the regulation comes out and has been changed from just Commercial Passenger Vehicles (CPV), to Commercial Passenger Vehicles and For-Hire.

Mr. Garrett referred to letters in Mr. Kramer’s packet from the Bartlett Regional Hospital and from others who felt they could not take the service of a courtesy van to go to medical facilities even though that was one of the things included and allowed for people to go to. Mr. Kramer referred to the date of the letter from Bartlett Regional Hospital and stated it was given before the change. The letter from the state shows that people come in for rehabilitation from outlying communities, and do not have the money to be able to afford the taxi rides; the state was saving money with the courtesy vans taking them back and forth. Mr. Garrett said the reason for the definition of the courtesy vehicle is so that an enforcement office could identify a courtesy vehicle and know it was exempt. He asked if there was a way that people who want to offer a greater level of service beyond this could just get a shuttle permit. Mr. Kramer did not see why there should be any sort of fee on a vehicle that was doing a free service. They only provide this free service to their guests and are not picking up people at street corners and they do not collect money. There is a difference between a courtesy van and a shuttle.

Ted Bradley, General Manager of the Travel Lodge Hotel. Their main concern with these regulations is that they are given no time to implement them. This service is in their brochure and in their marketing plan and they have offered the service for 13 years, since 1986. There is a history of transporting people and customers rely on that. There are people who go to doctors, and welfare recipients who are taken to Job Service, who cannot afford a cab. He did not want to take people to everything because financially, to run a van is very expensive. They only wanted to keep the slice of the pie that they have. There was a new hotel open in the valley and that took a little bit of their business. Another hotel is coming out with 96 rooms on June 1st, which will also take some of their business. Now they can no longer do what they used to do and people are checking out early or calling to cancel their reservations so they can stay downtown or closer to where they need to be. Some people prefer not to stay downtown and the city will get its tax regardless of where the people stay. The industry was asking for a lead-time so they could take it out of their advertising. They are marketing not just for their hotel, but for Juneau. If he takes someone to Costco, that does not just help him, it helps Costco and the CBJ. All hotels in the valley have lost X amount of dollars because of the cut in this service which is unacceptable.

Ms. Hagevig asked if the language providing an additional stop at the State Capital Building helped his situation. Mr. Bradley said a lot of people who stay in the valley would like to go to the State Capital Building but the Federal Building and the State Office Building should also be included. He makes one trip in the morning and one in the evening and does not want to be running downtown all day long. He understood the desire for one stop but said it did not fit.

Mr. Perkins heard Mr. Bradley’s biggest concern was more lead-time. Mr. Bradley said any lead-time would have been better than what they got. The last he heard, they were not included in the package. They did not get anymore calls about coming to meetings and did not have the opportunity to stand before the Assembly or the committee. Next the new regulation came in the mail and then two officers showed up at the door with a complaint because he took someone over to the Broiler Restaurant. He asked when was the last time a cab company marketed for people to come to town. The hotels spend a lot more money to get people to come here. They are trying to stay competitive by offering to take people where they need to go and people from the surrounding communities count on them and have for the past 13 years.

Mr. Perkins asked if he saw the flip side with running people to the Mendenhall Glacier and other destinations where a cab service would traditionally go. Mr. Bradley said they do not want to go to the glacier. The regulation was good as far as allowing them to take people to the doctor, but if the person needs a prescription, can he take him to Fred Meyer? It would be nice if they could take people to the mall and then go back and pick them up later, but to totally regulate it and say we cannot do it anymore is not acceptable. They will lose business and it is getting too hard to keep business. People look at the valley as an overflow for downtown but that is not fair. They have to be as competitive as downtown but downtown has a built-in attraction in its own. There are a lot of people who would like to stay downtown in the summer but can’t because there is no room.

Mr. MacKinnon suggested amending the language to "government offices", which would take in a number of buildings. Mr. Bradley said that would definitely help. Mr. MacKinnon said a regularly scheduled mall stop might get into the realm of a shuttle. Mr. Bradley said yes and no, they were still trying to provide a service for people. There are times when people come to town without a lot of money and they spend it on the hotel room. They are going to go shopping and the cab ride is one additional thing that at that particular time they cannot afford. The people not only spend their money in the hotel, but they are spending at restaurants and other places. His hotel markets a room special around Permanent Fund Dividend (PFD) time and in the past they have offered a shopping special promising to take customers to the malls. New Years Eve they have, since 1988, their annual New Years Eve Dance and they have always offered rides home, one night of the year. They want to continue that good service. In the summertime the cabs don’t have the time to come over to his hotel and take someone to the Nugget Mall because it is only worth about $2.50 to them. Now that winter is coming, the cabdrivers are saying they want that fare. He wanted to be consistent and take care of their customers. He said he has been at the ferry terminal and has had to call a taxi to pick someone up at the airport, but the cab will not bring them over. The cabs are in line and if they lose their place in line they have to go to the back of the line. He would like to work with the cab industry but he wanted to be able to maintain his competitive edge. If everyone leaves the valley to stay downtown, he may have to look for another job.

Mr. Powell said this was very frustrating and he asked if Mr. Bradley had any suggestions. Mr. Bradley asked how many hotels actually offered a shuttle. If he had to get a shuttle license for all of his drivers, he had three regular and two relief, that would be about $3,000 and then he would have to pay someone to inspect his vans, which he inspects on a daily basis. Mr. Powell agreed this put the industry in a bind as far as the implementation and time frame.

Michael Allen, General Manager of the Breakwater Inn and one of the executive officers to the Frontier Suites Hotel. Their position in this echoes the sentiments of early testimony. This was the same pickle that city government gets into whenever it steps into regulating private enterprise in areas that should not be regulated in the first place. What hoteliers need to be able to do is to have the flexibility to respond to changing and unique guest service situations. He was sure the bullet list would grow every session as people come in with very good reasons to drive guests to places. He told about guests that they had the last part of August, whose luggage had been lost. They had six and a half-hours to get to their cruise ship for a 14-day cruise and wanted us to take them to clothing stores so they could refurbish themselves for the trip. A perfectly good reason for a hotelier to say that was a guest service issue and not competition with cabdrivers. He questioned the need to have courtesy vans from hotels included under this umbrella that got put up due to this conflict between shuttles grabbing business away from cabdrivers and other tour vans. That was not their purpose. Their situation was completely regulated by cost, all the amenities that hotels offer to their guests are expensive and the level of amenities are regulated by that expense. He would control, very carefully, what uses that van and his drivers are going to say yes to. He would like to see courtesy vans taken out of the loop completely as they do not belong there and they are not the problem. He does not want a piece of the pie, only to be able to respond to guest service situations freely.

Mel Perkins, owner of Best Western Country Lane Inn and Grandma’s Featherbed. Since May of 1983, when the Best Western first opened its doors, they have provided courtesy van transportation to their guests. It has been an integral part of their customer service that they have always offered and taken pride in. They were the first hotel to open near the airport and were the first lodging facility to open in the Mendenhall Valley. They also proceeded Fred Meyer, Kmart, Costco and Carrs. Initially it was their desire to accommodate the traveling public arriving at the airport, however, many people told them that they would never survive because the government offices and the business centers were downtown. Juneau’s isolation makes it a unique destination. Some years ago a local folk singer wrote a ballad "No Roads to Juneau". Business or leisure travelers arrive in Juneau for the first time and often they have no concept of where to go, how to get around, or how far they are from downtown. For 16 years many state and federal employees and convention attendees have received courtesy van service from his property to their destinations. Each year the Juneau Convention and Visitors Bureau actively strives to build convention bookings for Juneau, particularly during the off-season. The van transportation they offer has always been the backbone of their customer service. On many occasions they have spoken with government and police officials about the service they offer and the legality of such. Each time they have approved the scope and nature of the van service. He suggested the service be grandfathered since they have been providing it continuously for 16 years. They have proceeded most of the cab companies and the commercial shuttle services. He referred to the proposed head tax, $5 for each cruise ship passenger coming to Juneau, and said hotel guests that come to Juneau pay significantly more than this tax. They pay 12% of their hotel room rate. If they stay five days in a hotel they pay $50-100 in sales tax. The valley properties alone collect almost $500,000 per year in sales and bed tax for the Juneau community. His van service has been drastically curtailed over the past several weeks and they have reacted to the unexpected notice from the police department about that service. The guests who have been staying with them have lodged complaints and have expressed frustration. He suggested giving approval for them to go to the state and government office and the Centennial Hall. He was also concerned about the people who come in to spend their PFDs who have been provided with privileges for many years.

Greg O’Claray, 5140 North Douglas. Here in his capacity as the Government Relations Director for the Marine Engineers Beneficial Association. They recently affiliated the Juneau Independent Drivers Association that encompasses all of the professional taxi drivers in Juneau. Listening to the managers of the various hotel properties in the valley, it was clear to him that the Assembly spent a lot of time and effort on adopting the Commercial Vehicle Code (CVC). He came before the Assembly a couple weeks ago suggesting amendments to that code and the response was that this was a work in progress and it would be dealt with over the interim, meaning the tourist season. Mr. Perkins was correct in that in other parts of the country, courtesy vans only haul you between the airport and their properties and back. They do not do what these folks say they have been doing all these years. He felt there was room to accommodate some of their concerns but in an Assembly meeting, when you are about to vote on an ordinance with one proposed amendment, is not the place to do it. He recommended that the body send this particular amendment and subject back to the drawing board. There were many other parts of the CVC that needed to be looked at. We do not want to adversely impact any out-of-town visitor that is going to choose between staying downtown and staying in the valley properties. Frankly, he did not make his travel decisions based on whether or not there was a courtesy van available to take him shopping everywhere he wants to go. Some people get in that habit. With respect to the other properties, this issue was not aired fully because of the dominant subject controversy between the shuttle, the crew shuttles and the taxi companies. He felt that these people got tired of listening to the subject so they stopped coming to the meetings, sometimes that happens, and if you don’t show up for the meeting, some rules are adopted that you are not happy with. This ordinance was ill-timed, this particular amendment. Where were the people from the better capital committee when you were debating the CVC? They weren’t anywhere to be found. Frankly, as a citizen of Juneau he was getting weary of suggestions that we do just about anything to keep the capital in Juneau; it is getting ridiculous. He suggested that this particular subject be referred back to the proper committee for more work and notice the folks that have testified tonight so that they can be there to defend themselves. The taxi drivers will be there and he was sure the company owners would also be there. Working together they should be able to come up with a solution that makes sense for everybody. He respects the businesses that have marketed their properties based on a time-honored practice of providing courtesy van service, however there was a reason for the code. The code establishes various safety concerns and safety standards, and driver standards that if you are in the commercial vehicle trade you must meet. Exempting courtesy vans is not the way to go. It has led to more and more controversy throughout the country with respect to taxi companies and others because of that deregulation. With respect to the taxi drivers who allegedly refused trips, he wanted to know what companies they were and the cab numbers and he said he would take care of that issue.

Assembly Action:

MOTION - by Muñoz, for the purpose of discussion.

Ms. Muñoz liked the suggestion of referring this issue back to a working committee. That would give the industry representatives on both sides an opportunity to voice their thoughts on this issue and other issues.

Mr. Koelsch said this was one of the things that was discussed at a Committee of the Whole (COW). He disagreed that this was unusual and said when he went to Denver recently, the hotel courtesy van took him to his workplace. When he went to Anchorage recently, same thing. He thought referring it to committee would be fine, but in the meantime the courtesy vans were getting hammered and he did not think that was right. Something needed to be done tonight and he liked Mr. MacKinnon's suggestion about government offices. That would take care of part of the problem, but he also liked the idea of commercial areas. He said when he deals with people who fly into town, they will ask if there is any available space and most of the available space is in the valley. Usually, the next question is whether there is a courtesy van.

AMENDMENT – by MacKinnon, to change, on line 15, the four words "the State Capital Building" to "Government Offices."

Mr. Corso asked if it was the intention to include other government facilities, for example Centennial Hall. Mr. MacKinnon said it was his intent and it would also include UAS.

Mr. MacKinnon changed his motion to read "Government Facilities." There being no objection, it was so ordered.

Mr. MacKinnon did agree that in the months ahead there would be a need for tweaking the code. He suggested that all of the people affected: the shuttles, courtesy vans, cabdriver, and that, in the next month or so get a shopping list of things they are concerned about with regard to the CVC. These things should be addressed and worked on in November so they can be taken care of and underway for the next season.

Mr. Perkins clarified what Ms. Muñoz had suggested. Ms. Muñoz said she supported Mr. MacKinnon’s suggestion. Mr. Perkins said the concern that Mr. Koelsch was addressing was partially addressed by Mr. MacKinnon, but between now and when the groups get together, there was a little bit of movement but they still would not be allowed to provide service to malls and to the commercial businesses. Mr. MacKinnon said he had a new Section E that might address some of the concerns: "local transportation as a part of an advertised event or promotion." That would be a step in the direction that they would like to see and would not make it wide-open. He could understand both sides of the coin and agreed that in the summertime when the cabs are busy with visitors, they do not want to do the short little trips; in the wintertime, they don’t mind having those short little trips.

Mr. Garrett thought this committee would become a standing committee of the Assembly and said it was easy to view this issue in isolation and determine what makes the most sense. But he could guarantee that the same presentation by the taxi drivers, the shuttle drivers and the bus drivers would lead you to the same logical conclusion if all you heard from was them. The reason there was a definition of courtesy vehicle was so they could be exempted from the safety requirements of this code. They are not subject to vehicle inspections the way the other vehicles are and their drivers are not subject to certification. By allowing this service to be provided, basically to anywhere in the community at any given time, there is a commensurate price to pay and that is coming into the regulations so that we can make sure that your vehicle is safe and that the drivers are safe. They have put very tough requirements on people who transport passengers. Whether you transport customers for money or for free, you still have a duty of care to those passengers and that is part of what the code is attempting to represent. If this is to be examined again, then it should go back to the fundamental premise of whether or not to exempt courtesy vans or bring them into the code.

Mayor Egan wished that the hotels, motels and cabs would get together, as an industry, and come to the Assembly with recommendations that they agree on. He did not feel that the two groups were that far-off and there were a lot of valid concerns by each industry.

Ms. Hagevig asked Mr. Corso if there were any legal constraints with regard to past practice and the fact that they were not previously regulated. Would they have to show that real harm was done. She asked Mr. Corso to provide that kind of summary when the committee met.

Mr. MacKinnon shared the same concerns as Mr. Garrett so he was hesitant to introduce his amendment. Mr. Koelsch recalled that this had started in the HRC and that the industry was always present. Suddenly it went to the COW, the courtesy van folks were not present and changes were made. Now the regulations come out and that industry is being hammered and he did not think they should be in trouble for doing something that they have traditionally done without having the opportunity to work it through. He thought Mr. MacKinnon’s suggestion had been a good one in the interim.

Ms. Hagevig reminded everyone that when this was moved from the HRC to the special CPV committee, they thought they could get it done in ten days. She understood that the valley lodging facilities were not so concerned with the tourism industry, as many of the downtown hotels were. They were looking at some of their most important customers coming into town soon from outlying areas for holiday shopping and such. She would be in favor of advancing this language, but at the same time she encouraged all the players to get together as suggested. She suggested a sunset date.

Mayor Egan asked Mr. O’Claray and Mr. Bradley if they would be willing to get together to discuss getting the two groups together and presenting a solution to the Assembly. Both nodded yes.

Mr. Kibby was reminded of Design Review Board and said this had all the characteristics. He said he protested right up to the last year whether or not the Design Review Board should be done away with. He understands where Mr. Koelsch wants to go, but he leaned toward what Mr. Garrett was speaking towards and the whole reason for the need to regulate this industry. Rather than implement something that may or may not be changed, he would rather repeal the courtesy vehicle from the code completely until everyone can get together and work through the process.

Mr. MacKinnon thought that if it were repealed, there would be no incentive for those people to get together and talk about it. He asked Mr. Corso if there was any way to suspend the courtesy vehicle aspect for a set period of time. Mr. Corso said the title of the ordinance, giving notice to the people of Juneau, was limited to the State Capital Building. Government facilities was not much of a change, but removing courtesy vehicles from the CPV code all together would be beyond the scope of this ordinance.

Mr. Kibby added that incentive was the same rational used with Design Review.

AMENDMENT – by MacKinnon, that a new Section E, effective for 120 days, would say something to the effect that "local transportation as part of an advertised event or promotion."

Mr. Corso clarified what local meant and said it would be difficult to take a CPV out-of-town. He said "as part of an advertised event or promotion" would do it. He noted that all of the other sections of the ordinance started off describing a destination of some sort. He suggested stating in Section E "to any location". He than clarified when Section E would expire. Mr. MacKinnon thought 90 days would take care of the Christmas season.

Mr. Corso restated the amendment: to add a new Section E saying "To any location as part of an advertised event or promotion." and to add a sentence to Section 3 saying: Section E shall expire 90 days after adoption."

Mr. Garrett said if it was adopted today, it would expire after the effective date. Mr. Corso said, then it should read 120 days after adoption.

There being no objection, the amendment was so ordered.

There being no objection, the ordinance was approved as amended.

B R E A K

8:35p.m. – 8:45 p.m.

    1. Ordinance No. 99-32

AN ORDINANCE AMENDING THE PUBLIC FINANCE CODE TO SPECIFY THE STANDARDS FOR CERTAIN INVESTMENT INSTRUMENTS HELD IN THE EXTERNAL PORTFOLIO.

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

Public Participation: None

Assembly Action:

MOTION - by Kibby, to adopt Ordinance 99-32, and he asked unanimous consent.

Mr. MacKinnon asked for an explanation from Mr. Duncan. Mr. Duncan said there were three modification: one was housekeeping, removing some specific language and putting in some generic references to rating agencies. Second, when dealing with corporate bonds, there is a requirement that the corporation be a US corporation and be rated. This would be expanded to allow foreign corporations, who invest in the US using the US Securities and Exchange Commission (SEC) requirements and everything else that a US corporation would use, to buy their bonds as well and to not rate the corporation because it is really the bonds we are buying, not the rating of the corporation. Third, it would be expanded to include any kind of mortgage-backed issues and not just US government issues.

There being no objection, it was so ordered.

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

    1. Authorizing Letter Transmitting STIP Recommendations.

    Administrative Report: Mr. Palmer said that included in the packet was an amended letter addressed to DOT which staff was asking for authorization for Mayor Egan’s signature. The PW&F committee heard the issue on Wednesday. Ms. Easterwood and Mr. Buck worked with DOT and looked at the projects that were scored last year. Ms. Easterwood tried to rewrite the letter to take advantage of what she learned about how DOT scores the projects. There was also attached an additional nomination packet for Douglas Highway safety improvements at Cordova Street.

    Assembly Action:

    MOTION - by Garrett, that the revised letter and the project nomination packet attached, be forwarded on to the DOT, along with the comments. There being no objection, it was so ordered.

    Mr. Garrett found it interesting that Phases 2 and 3 of the Douglas Highway Traffic Safety Project cost less than the light at Stephen Richards and Haloff.

    B. Manager’s Report - Information Items

    1. Status report on the NOAA Land Exchange Agreement

    Administrative Report: Mr. Palmer said that he and Mr. Corso had been working on what might be the final draft of the land exchange agreement with NOAA. There was an agreement, NOAA’s lawyers made some changes, then CBJ lawyers made some additional changes and now it is going back to NOAA. The purpose of the agreement was to assure NOAA that once the city acquires Lena Point, the land will be turned over to them. Staff was concerned that if the land was turned over and for some reason the project did not get built, the property should not stay federal land. The discussion started with a revision clause and it may be that this agreement provides that CBJ will buy the property before the end of the year, when the option expires, and then either provide a license to NOAA to work or have a lease. He hoped to be able to bring the agreement to the full Assembly the first part of November.

    Mr. Kibby asked if, in the discussions, the road was part of the considerations. Mr. Palmer said yes, there was a separate agreement, a joint project agreement. NOAA was offering $1.7M for mitigation to be applied toward the road. It is set up as a reimbursable expense so the city would spend the money and NOAA would pay it back. Mr. Kibby asked if that money would go toward a new road and Mr. Palmer said yes. Mr. Kibby clarified there would be a new road if NOAA were built. Mr. Palmer said NOAA would give $1.7M toward the construction and the city would put another $2M into the project. Mr. Kibby asked if it would cost $3.7M to build the road for one mile. Mr. Palmer was reminded that the city offered up $1M making the total $2.7M.

    C. Attorney’s Report - None

  5. 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 was a COW advertised for next Monday, the 27th, which would not occur because many people would be attending the Southeast Conference. The next meeting was scheduled for October 11th and would include a presentation by DOT on the Haloff Way/Stephen Richards intersection. Ms. Miller indicated there would be an Assembly meeting that evening and Mr. MacKinnon said he would get with DOT to see what other date would work for them in October.
    2. Finance Committee – Mr. Perkins said there was no meeting scheduled. He reported that the Mayor’s Fiscal Task Force would be meeting on Wednesday evening on fiscal matters, from 5-7 in room 211. He referred to the four-page survey from the task force and asked everyone to review it, complete it and return it to Bonnie Chaney in Finance by September 30th.
    3. Human Resources Committee – Ms. Muñoz had nothing to report and there was no meeting scheduled.
    4. Lands and Resources Committee – Mr. Kibby noted they would be meeting on Wednesday the 22nd at noon in room 211. There would be one action item, the Savikko Park Treadwell area and an information item presented by Mr. Felix on the North Douglas flooding.
    5. Public Works and Facilities Committee – Mr. Garrett said their next meeting would be on October 6th. There was a meeting last week in which they dealt with a variety of issues, including the STIP amendment. At the meeting on the 6th, the first item on the agenda would be the ordinance relating to contractor debarment.

    1. Board Liaison Reports

Ms. Hagevig said the Tourism Advisory Committee would be meeting September 21st at Centennial Hall from 7-9 p.m. The purpose of the meeting would be to hear from the public with regards to fixed-wing aircraft and helicopter noise in the summertime. This would be the beginning of a multi-meeting process that they plan to engage in this fall.

  1. ASSEMBLY COMMENTS AND QUESTIONS
  2. Mr. Koelsch thought Mr. MacKinnon’s comment in Sunday’s paper was excellent food for thought. He then questioned the Ward Air hangar and the Loken Air hangar septic tanks and asked if they were on city sewer and if not, why. Mr. Palmer said that the code provides that if a facility is within 150 feet of the sewer line, they are required to connect. Mr. Heese, Airport Administrative Officer, came forward and said the facilities mentioned were not on the sewer line and he was not sure of the history. There had never been money at the airport to connect and there were a lot of other facilities in the same situation, mostly private hangars. They would like to extend a lot of the infrastructure to other places on the airport but it has not been done. Mr. Koelsch asked someone to follow up on that as it did not make sense that some of it was hooked up and not others.

    Mr. Perkins, Commissioner of DOT/PF, said Mr. Heese had provided a list of what the Passenger Facility Fee (PFF) would be used for and he asked if the sewer would fall within that scope. Mr. Heese said that typically infrastructure for the sake of infrastructure has not participated in with FAA dollars. Although the PFF was not FAA dollars, a lot of the same criteria applied. This was a gray area and if it could be done in conjunction with a FAA funded project, and then it could be done. If it was just that project by itself, chances are it would not be. Mr. Perkins asked Mr. Palmer to meet with Mr. Heese and Mr. Miller or Mr. Mueller (CBJ Public Works Director) and provide an explanation. Mr. Palmer said that Mr. Corso had looked up the code and if a property is within 200 feet of the property, the property is required to connect. If they are not within 200 feet, they cannot be forced to connect. Typically this would be a sewer connection to a business, which would fall under the business’s responsibility to connect and probably not the airport’s responsibility. He would check on that and see if there was a sewer in the road or not. Mr. Perkins thought the whole footprint was the airport. Mr. Palmer said the Ward Air building was leased and it was on airport property. The Loken hangar is private land.

    Mr. Perkins asked what the lost revenue in sales tax receipts would be for the store that has closed down and moved to the Internet. Ms. Pierce said that even if they are operating over the Internet for local sales to local residents, sales are taxable. Anything sold outside of Juneau would be exempt. Mr. Perkins wanted to be sure that the business was aware of that. Mr. Duncan indicated yes. Mr. Perkins then requested a brief report about what was going on with the DC lobbyist. Mayor Egan said a report was just received and would be forwarded to the Assembly. Mr. Perkins then thanked Mr. Heese and Mr. Miller for their response to his inquiry about the PFF and the projects in the future. He commented it was a good chunk of change being brought in for the infrastructure of the airport.

    Mr. Garrett passed to the Mayor something he wanted copied for all Assemblymembers and the Fiscal Task Force. There is a movement in Congress by several representatives in the West to come up with a method of stabilizing Forest Service receipts and payments to Forest Service communities. Petersburg passed a resolution in support of one particular proposal, but he knew there were several proposals floating around. He suggested possibly putting together a resolution in support. Mayor Egan said that the Alaska Municipal League (AML) and the Southeast Mayors had passed it and he thought it would be coming before the Assembly. Ms. Hagevig thought the Assembly had dealt with it on the consent agenda months ago; the National Public Schools Coalition version. Mayor Egan and Mr. Garrett thought both resolutions would be coming up at Southeast Conference of Mayors. Ms. Hagevig added that the two were very different philosophically from each other and Mayor Egan added that they both benefited the West.

    Mr. Garrett said he had a constituent today who raised the issue of the new Duck Creek culvert. A culvert was put in to help the fish get through to help restore Duck Creek but then there was an Airport Security issue so grates were put on the culvert so no one could crawl through the culvert, now the fish can’t get through. Mr. Kibby commented that the water seems to flow just as well around the culvert as it does through it so he was sure there was plenty of room for the fish. Mr. Garrett went on to say that he was concerned that conditional use permits were being passed out to developers. A lot is done at the front end of a project, but then there is very little, if any, enforcement of the conditions on people who received them. Then they are issued another permit on yet another project, and another permit on another project, and yet they don’t follow up on the initial permit and conditions that were required of them for their developments. He thought it was an issue that the Assembly needed to deal with because it was reprehensible behavior and the Assembly had an obligation and duty of care to the citizens to see there is some method of enforcement. He did not have a solution, but urged the CDD and the Planning Commission to provide some advice. Ms. Easterwood took note.

    Mr. Powell said the Sunday’s paper had an article on the Thunder Mountain Trailer Park expansion and that was land that the city sold with a conditional use permit. It appeared that the city is doing things on land that it sells and then not holding up its end of the bargain. He too would be interested in CDD coming up with some solution for that and he asked why we go through the process if there is no enforcement. He went on to say that at a prior meeting Mr. Garrett brought up the idea of coming up with air quality regulations or laws that would help in monitoring and watching air quality in downtown. He asked if that could be put into a committee so work could begin on that. He suggested Lands or Human Resources. Mr. Kibby wanted to know if the city would then be taking over enforcement, which would then negate state and federal enforcement. Mr. Powell said that since there was no federal enforcement, that was why he thought the city should take over. Mr. Kibby warned the city to be very cautious about taking over everyone else’s roles. He thought the state and federal governments would hope that the city would take over all the functions, so he cautioned that discussion of this would be around the enforcement issue and the cost that would be involved; don’t think about how to provide it but think about how it can be provided. Mr. Kibby did not want to take the issue in the Lands Committee so Mr. Powell suggested that it go to the HRC.

    Mr. Powell went on to ask for a report on the sewer back-up problem involving residents in the airport area. Mr. Palmer updated last weeks report and said that Mr. Mueller had completed his investigation of the events that occurred. Mr. Palmer received the report today but had not read it yet. A combination of operator error, mechanical error, and then a power outage shut the plant down. They have hired Carson Dorn, Engineering, to review the entire procedure and to make recommendations. Once the city receives that report and those recommendations, they would have a neighborhood meeting. Mr. Mueller had been directed to get a schedule from Mr. Dorn so the neighborhood could be told where and when. A letter will be sent to everyone affected tomorrow. Mr. Powell was concerned with the damage that has been done so far and he asked how the people who were injured by the backup were being treated. Mr. Palmer said that one or two families were still in hotels and should be out this week. Mr. Palmer met with the insurance adjuster and told him to help the people out and not to give then any problems. If there was any problem with coverage, they should talk to the Manager’s Office. Mr. Palmer called each one of the families that were affected and made sure the adjuster had spoken with them. One family said that they had three rooms for their kids so they rented three hotel rooms. They have tried to do all they can do to help the folks out and to minimize the impacts of being moved out of their homes while contractors go in and replace carpet and do repairs. Mr. Powell asked for continued reports until this was all settled and the damage had been rectified in the homes. He wanted to know when everyone was moved back in again and happy. Ms. Hagevig thought the other important thing that was discussed at the meeting last week was that people in the neighborhood asked to be part of working on the solution. Mr. Dorn and CBJ indicated that that was a very appropriate thing to do. Mr. Perkins thanked Mr. Palmer and staff for being on top of this issue. They are going above and beyond to make sure that needs are being met as they come up.

    Mr. Powell said that when the carpet is put in at the library, he wanted to be sure that it was put in correctly. He said he had already received two calls about it.

    Mayor Egan asked for everyone to respond to the Clerk in regards to the memo from AML and he advised everyone to get their travel plans in very early for Soldotna. They would be meeting at the ice rink again but there would be no ice at the rink this time. SE Conference would be in Sitka next Tuesday and Wednesday and there would be a value-added conference on Monday. There was another meeting planned for Thursday in Sitka. He suggested to Mr. Palmer that someone be brought in to clean the filthy chairs. He also suggested trading 100 chairs with Centennial Hall because the hall’s chairs were much more comfortable. The carpet could really use a cleaning also and the seams should be covered.

  3. CONTINUATION OF PUBLIC PARTICIPATION ON NON-AGENDA ITEMS - None
  4. ADJOURNMENT - There being no further business to come before the Assembly, and no objection, the meeting adjourned at 9:20 p.m.

 

Countersigned: ________________________________

Marian Miller, Clerk

 

Signed: ________________________________

Mayor Egan