CBJ Manager's Reports--July, 1995



TO: Mayor and Assembly DATE: July 10, 1995

FROM: David R. Palmer

City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 95-28

SPECIAL ORDER OF BUSINESS:

CONSENT AGENDA:

A. Ordinances for Introduction:

1. Ordinance No. 94-35am

This ordinance makes several changes to the forhire vehicle code. The changes accomplish several goals.

1. They tighten up the code by issuing certificates for no more than the number of vehicles actually operated by the certificate holder.

2. They make the code less burdensome by recognizing compliance with state and federal regulations.

3. They make the code less restrictive by authorizing advertising on public vehicles.

4. They update the code by correcting several minor inaccuracies and inconsistencies.

The Assembly Human Resources Committee recommended introduction of this ordinance at its meeting of June 26.

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

2. Ordinance No. 94-17 (BD)

This ordinance appropriates the sum of $47,338.34 for reimbursement of wages and benefits of Ira Winograd, acting as the ADEC Wetlands Coordinator. This is an amendment to the original contract amount of $222,000. The new total is $269,338.34. Such funds are provided by the Alaska Department of Environmental Conservation. This is the final payment on this contract. Period covered for this final payment is July 1, 1994 through January 30, 1995, when the contract was terminated.

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

3. Ordinance No. 95-11 (E)

This ordinance transfers $14,917 from donated Dover and Dovatron stock sales and $764 in cash dividends from Bartlett Memorial Hospital (BMH) to the BMH Foundation. The BMH Board approved the sale of 200 shares of Dover stock and 20 shares of Dovatron stock at its February 28, 1995 meeting. The proceeds are to be transferred to the BMH Foundation in the name of Myra Howe.

BMH received a donation of 100 shares of Dover Elevator stock in 1987. The stock has been carried as an investment by Central Treasury on behalf of BMH. Over the years, BMH has received cash dividends. In addition, there has been a stock split with an additional 100 shares of Dover Elevator stock received by BMH and a stock spin-off resulting in BMH owning 20 shares of Dovatron International, Inc.

BMH is also requesting to transfer $710 in unrestricted contributions to the BMH Foundation.

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

B. Resolutions:

1. Resolution No. 1772

This resolution authorizes the manager to convey 40 lots for a low-income housing project in the Thunder Mountain area in Mendenhall Valley. The project was approved by the Planning Commission at its meeting of June 13.

This resolution is the culmination of a four year effort between the City and Borough and the Tlingit-Haida Regional Housing Authority to construct a 50 unit low income housing project in Juneau. On May 6, 1991 the Assembly adopted Resolution 1512 which authorized the manager to enter into a cooperative agreement with Tlingit-Haida for the development of the project. Part of the agreement was for the project to be exempt from taxes as long as the houses were owned by Tlingit-Haida.

On June 6, 1993 the Assembly adopted Resolution 1647 which authorized the donation of 20 acres of land near the new middle school in Lemon Creek for the development of the 50 unit project. However, subsequent design work resulted in the conclusion that the site was too expensive to develop because of the topography. As a result, a decision was made to investigate the development of land near Thunder Mountain. On September 12, 1994 the Assembly adopted Resolution 1724 which authorized the donation of land near Thunder Mountain off Threadneedle Street. On June 13, 1995 the Planning Commission approved the preliminary plat for the subdivision with various conditions to address offsite impacts. These include the appropriation of funds by the Assembly to construct pedestrian improvements along Threadneedle Street. The Assembly is also asked by the Planning Commission to consider speed bumps or other suitable methods to positively control speed of traffic on Threadneedle Street.

Tlingit-Haida intends to bid the construction of the subdivision development and houses as a single project this July. If there are not sufficient funds to pay for the entire project, one of the streets will be shortened and fewer housing units will be constructed.

Low income housing and the disposal of land are a priority of the Assembly. This project will play a part in providing additional housing opportunities for local residents.

I recommend that this resolution be adopted.

2. Resolution No. 1773

This resolution will authorize the manager to convey a 5,346 sq. ft. easement to the State of Alaska for improvements to Shell Simmons Drive and Glacier Highway. The State will pay $49,000 for the easement.

The improvements will include repaving from the Glacier Highway to the Airport terminal, providing street lights along the route, and adding sidewalks to tie in with existing airport facilities. Additionally, Shell Simmons Drive will be realigned with the centerline of Lee Smith Drive. Presently there is a jog in the alignment which is considered substandard. Turn lanes will also be provided as part of this project.

The project has been reviewed and approved by the Planning Commission at its April 11, 1995 meeting.

I recommend that this resolution be adopted.

C. Transfer Requests:

1. Transfer No. T-569

The Juneau Wetlands Management Plan, adopted by the Assembly in 1991, and approved by the State of Alaska and the U.S. Department of Commerce in 1993, states that Juneau will operate a "Wetlands Mitigation Bank" to assist permit applicants in mitigating impacts to wetlands caused by their development. The Bank will be administered by the CBJ Wetlands Review Board. The CBJ will spend funds from the Bank to conduct wetland enhancement and restoration projects, thereby accruing " wetland mitigation credits." Funding will be used to accomplish a variety of capital projects that will improve wetland and stream habitat values, such as replacing culverts that are currently blocking fish passage and reducing the habitat available for spawning and rearing fish in Juneau's streams.

Private developers impacting wetlands as a result of their development project can purchase "mitigation credits" from the Bank to offset project impacts. The fees that they pay to the Bank will, in turn, be used by the CBJ to conduct additional mitigation projects and restock the credits in the Bank. To begin, the Bank needs to be funded so that the initial mitigation projects can be accomplished and a credit balance can be established.

This request is to close two existing capital improvement project accounts and transfer the balances (a total of $61,627) into the newly-established Wetlands Mitigation CIP account. There will be no fiscal impacts as a result of this transfer.

The source of funding for the Wetlands Mitigation CIP account are two inactive CIPs which were originally established to accomplish coastal management and wetlands management projects. Transfer of these unexpended funds to a new wetlands project is in keeping with the intents and purposes of the original CIP appropriations. There is no other available funding with which to capitalize the Juneau Wetlands Mitigation Bank.

The CIP funds to be transferred include:

Juneau Coastal Management Program CIP: this inactive CIP was established by Ordinance No. 82-17 to fund the completion of the Juneau Coastal Management Programs, including 1) Juneau Coastal Management Program document separate from the Comprehensive Plan, 2) necessary revisions to the Land Use Code, and 3) Juneau Downtown Waterfront AMSA. A total of $116,000 was appropriated for these projects ($90,000 from State coastal management funding; $26,000 from CBJ General Funds). The projects were completed in 1986 and 1987. All State grant requirements have been met. The full balance of this CIP ($27,281) is now available for transfer to another project.

Mendenhall Valley Drainage EIS: this inactive CIP was established by Ordinance No. 85-30, which appropriated a total of $1,030,900 for all CIPs to be undertaken in 1985-1986. Included in this sum was $250,000 for "Mendenhall Valley Drainage Environmental Impact Statement". This was the account that was used to fund the CBJ's contribution to the environmental investigations leading to the Juneau Wetlands Management Plan (contract with Dr. Paul Adamus). That project was completed in 1987. The full balance of this CIP ($34,346) is now available for transfer to another project.

I recommend that this transfer be approved.

2. Transfer No. T-570

The Glacier Valley Floor Coil Heating Project is now complete. There is a small fund balance ($1,986) remaining which will be transferred to a capital reserve for school district capital projects, S454-59.

After this transfer is approved, the fund balances will be: $0 in the Glacier Valley Floor Coil Heating project, and $38,190 in the Capital Reserve-School District CIP.

I recommend that this transfer be approved.

D. Transfer of Liquor License:

1. K-Mart

K-Mart Corporation has requested a transfer of license holder from ILJ, Inc., to K-Mart Corporation. The Police, Finance, Fire and Community Development Departments have no objections to the transfer of license holder. The Human Resources Committee at its meeting on Monday, June 26, 1995, reviewed the request and recommended to the Assembly that it waive its rights to objection to the transfer of license holder.

I recommend adoption of the Human Resources Committee report.

ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 94-17 (BB)

The State of Alaska acts as a clearinghouse for federal drug investigation/interdiction pass through monies. Eleven communities in Southeast Alaska pooled their pass through monies to allow for the placement of one grant funded drug investigator position to work with the Drug Enforcement Administration (DEA) narcotics task force.

This ordinance appropriates $64,635 of grant funds to reimburse the CBJ for personnel expenses from October, 1994 through June, 1995 for the SEACAD program.

I recommend that this ordinance be adopted.

2. Ordinance No. 94-17 (BC)

This request is for $35,000 to supplement existing funds for the one time payment of $78,792 to PTI; for the purchase and use of their customer database and associated hardware/software; and, to close out the CIP project. Future maintenance payments of $4,696 a year will be funded from the E911 surcharge funds.

After this ordinance is adopted, the balance in the 911 surcharge account will be $68,683.49.

I recommend that this ordinance be adopted.

3. Ordinance No. 95-11 (A)

This ordinance appropriates $66,000 from the Lands Fund to apply towards completion of a joint master plan to address the development potential of Goldbelt, Inc. and CBJ-owned lands on the west side of Douglas Island. These lands are located within a New Growth Area as defined by the Comprehensive Plan. Owners of land within new growth areas are required to examine long term needs such as schools, water, sewer, waste disposal, roads, and other public facilities when evaluating the suitability of their land for development. A joint planning effort by the CBJ and Goldbelt provides an opportunity to evaluate land development options in a comprehensive manner.

An April 5, 1995 memorandum of understanding between the CBJ and Goldbelt outlines the process for preparing a joint master plan. The Assembly reviewed and approved the memorandum of understanding at its meeting April 3, 1995.

Based on inquiries made by Goldbelt, it appears the master plan will cost approximately $120,000. The CBJ and Goldbelt have each agreed to pay half of the total cost of the project. The CBJ recognizes that Goldbelt has previously completed $12,000 worth of work which is mutually beneficial and pertinent to this project. The CBJ has agreed to credit Goldbelt, according to the formula outlined in the memorandum of understanding (a copy is included in your packet) for one half the cost of the pertinent data it previously compiled. Therefore, the total cost of this project to the CBJ is estimated to be $66,000.

Once the appropriation is approved, and Goldbelt has secured its funding, CBJ staff will work with Goldbelt to prepare a Request for Proposals. It is anticipated the project will take six months to complete, once the contract is issued.

After this ordinance is adopted, the Lands Fund balance will be $1,732,390.

I recommend that this ordinance be adopted.

4. Ordinance No. 95-11 (B)

This ordinance appropriates $50,000 from the Lands Fund to complete the following projects:

Feasibility study of CBJ lands located at Lena Point and preparation of sketch plats; and

Survey of the perimeter of the CBJ land selection at Lena Point.

These projects will be accomplished as part of a newly created CIP.

The perimeter survey is required by the Alaska Department of Natural Resources in order to patent the CBJ's land selection at Lena Point. The survey will cost an estimated $12,000 of the $50,000 appropriation.

The feasibility study will cost an estimated $38,000 of the $50,000 appropriation. The feasibility study is a first step in preparation for subdividing and selling that portion of the property determined suitable for residential development. This property was identified for disposal in the recently-adopted City and Borough of Juneau Land Management Plan. The feasibility study will include the following components: topographic mapping and survey control; economic analysis of sanitary sewer options; wetlands determination; access study; agency review; and preparation of three sketch plat options.

The Lands Committee has suggested that upon completion of the feasibility study and sketch plats, a policy decision be made to determine whether the CBJ should proceed to develop the subdivision itself or sell the Lena property as large tracts to private developers. If the Assembly decides at that time that the CBJ should subdivide and develop the property itself, then additional funds will need to be appropriated to complete the subdivision survey and construct water and sewer services.

It is envisioned that land sales at Lena Point will occur in phases over the next few years. Surveying could be similarly done in phases. Revenues derived from land sales in one phase could be applied toward development costs of a later phase of land sales.

After this ordinance is adopted, the Lands Fund balance will be $1,682,390.

I recommend that this ordinance be adopted.

5. Ordinance No. 95-11 (C)

This ordinance appropriates $140,000 from the Lands Fund to a new CIP for the construction of a sidewalk along Threadneedle Street. This sidewalk project has been recommended by the Assembly Lands Committee as mitigation to address neighborhood concerns regarding impacts from the Tlingit-Haida subdivision to be located at the end of Threadneedle Street.

The preliminary plat design for the subdivision includes forty lots for the Tlingit-Haida low income housing project and eighteen lots for the CBJ to sell as part of our land disposal program. This subdivision project will address two of the Assembly's highest priorities: increased housing opportunities and disposal of CBJ land. The construction of the sidewalk will offset impacts and be an added amenity for the entire neighborhood.

After this ordinance is adopted, the Lands Fund balance will be $1,542,390.

I recommend that this ordinance be adopted.

6. Ordinance No. 95-11 (D)

This appropriation of $25,000 will replace the water-lubricated bearing systems at two downtown Juneau wastewater lift stations with dry bearing systems. It also will replace deteriorating metal emergency generator air intake louvers at these lift stations and install cathodic protection for the wet wells at two lift stations in the Lemon Creek area and one in the Back Loop area.

Replacing the water-lubricated pump systems with dry seals will eliminate the possibility of cross-connections and reduce maintenance for relatively complex existing seals. Replacing metal louvers with fiberglass will reduce maintenance costs, as fiberglass has an indefinite life span (compared with metal) and does not need frequent refinishing. Cathodic protection for the wet wells will protect them from future failure due to corrosion and the resultant very expensive cost of replacement.

After this ordinance is adopted, the Sewer Replacement Reserve balance will be $457,100.

I recommend that this ordinance be adopted.

7. Ordinance No. 95-20

Delays in the protest procedure make it difficult for contractors to maintain prices and tend to disrupt project schedules. This ordinance simplifies and shortens the bid protest process. It allows a protester to appeal directly to the Manager, without an initial review by the purchasing officer. It shortens the time limit for issuance of findings by the manager and the board, but allows for extending the limit when necessary.

I recommend that this ordinance be adopted.

8. Ordinance No. 95-21

This ordinance authorizes a sealedbid sale of 2.8 acres of borough land near Indian Cove.

The property is a fraction of Lot 1, U.S. Survey 3810, located between Otter Way and Glacier Highway. TonerNordling conducted an engineering assessment of the property. Soils were examined for their suitability to support onlot sewer systems. The topography was evaluated to determine potential driveway access points off Otter Way. Based on the engineering report, staff recommends the parcel be subdivided into four lots. All lots will be larger than the minimum required by city and borough zoning regulations.

Due to its small size, the subdivision will be accomplished using the shortplat method. Therefore, the subdivision will be completed administratively and will not include a public hearing before the Planning Commission. Staff sent letters to neighboring property owners along Otter Way and invited comments on the sale. Only one letter has been received to date; it is included in your packet materials.

I recommend that this ordinance be adopted.

9. Ordinance No. 95-22

This ordinance establishes a fine of $25 for a first citation for unlawful camping on borough land. The fine for a second citation would be $50, and after that a court appearance would be required.

I recommend that this ordinance be adopted.

10. Ordinance No. 95-24

This ordinance will authorize the disposal of seventeen lots in the TlingitHaida Subdivision located on municipal land near Thunder Mountain in the Mendenhall Valley. The 17 lots are part of a 58 lot subdivision approved by the Planning Commission at its meeting of June 13, 1995. Forty lots will be conveyed to the TlingitHaida Regional Housing Authority for a low income housing project. One lot will be retained for development of a neighborhood park.

TlingitHaida has been working with the Community Development Department for the past year to design a subdivision which addressed issues such as drainage, pedestrian traffic, buffers, and recreational uses. The preliminary plat approved by the Planning Commission included a number of conditions intended to ensure that these issues were adequately addressed. An issue of particular concern is the speed of traffic in the subdivision. One condition requests that the Assembly consider posting a 15 mile per hour speed limit within the subdivision and along Threadneedle Street. Additionally, the Planning Commission suggested installing speed bumps or dips to control vehicle speed.

The recently adopted Land Management Plan supported the sale of land in this location. CBJ lots which could be sold to the general public were included in the subdivision design to integrate market rate houses into the low income development.

The TlingitHaida Housing Authority intends to bid the construction of the subdivision development and houses as a single project this July. If there are not sufficient funds to pay for the entire project, one of the subdivision streets will be shortened and fewer housing units will be constructed. This will also reduce the number of CBJ lots created depending on the amount of shortfall.

Low income housing and the disposal of land has been a priority of the Assembly. This project will play a part in providing additional housing opportunities for local residents.

I recommend that this ordinance be adopted.

UNFINISHED BUSINESS:

NEW BUSINESS:

ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

1. Authorization to Negotiate Land Sale to Don and Marjorie Schmiege

Pursuant to CBJ 53.09.260(b), the Assembly is requested to pass a motion which authorizes staff to negotiate the sale of approximately 10,350 square feet of CBJ land located in the Highlands to Don and Marjorie Schmiege. The CBJ Assessors Office has determined the value of the property to be $31,050.

The Schmieges are owners of three lots along Evergreen Avenue in the Highlands. Two houses are constructed on the three lots. Evergreen Avenue right-of-way abuts the southerly portion of the Schmieges' lots; that portion of the right-of-way is not constructed. The CBJ owns the land south of the right-of-way (Tract 3, resubdivision of a fraction of the Irwin Addition). A service road bisects the CBJ property. The road is used to service the nearby AEL&P flume; it is also a popular hiking trail.

The new right-of-way location better conforms to the topography of the site. AEL&P supports the right-of-way relocation. The Schmieges have sought and received Planning Commission approval to relocate an undeveloped portion of the Evergreen Avenue right-of-way from its present position to the existing service road.

The Schmieges have also requested to purchase the remnant CBJ land north of the new right-of-way and attach it to their existing lots. The land sale is needed in order to provide continued legal access to the Schmieges' property.

The Planning Commission, at its meetings January 25, 1994 and September 13, 1994, approved the vacation of the subject portion of the Evergreen Avenue right-of-way and the relocation of the right-of-way; the Planning Commission also recommended approval of the land sale to the Schmieges.

The land sale must be approved in order to proceed with the right-of-way relocation. Therefore, the vacation and relocation of the right-of-way are dependent upon the Assembly granting approval to sell the subject CBJ property to the Schmieges.

A map and additional background information are included in your packets.

I recommend the Assembly pass a motion authorizing staff to negotiate the sale of approximately 10,350 square feet of CBJ property, located within Tract 3 of the resubdivision of a fraction of the Irwin Addition, to Don and Marjorie Schmiege, at fair market value.

B. Manager's Report - Information Items:

1. Eaglecrest: Commercial Use Regulations

At its meeting of June 6, 1995, the Eaglecrest Board adopted regulations governing commercial activities at Eaglecrest, effective June 22, 1995. These regulations were in response to a request from Gray Line of Alaska to stage mountain bike tours from the Eaglecrest Ski Area parking lot. These regulations are based on the recently adopted regulations on the commercial use of trails under the authority of the Parks and Recreation Department. The cost of the tours will be negotiated, depending on the specific type of tour being proposed. For example, the cost of the Gray Line mountain bike tour has been set at $.50 per head.

The public notice and comment period ended on Wednesday, June 21, without comment. The regulations became effective immediately thereafter. The permit application deadline was June 28, 1995. These regulations are governed by CBJ 67.05.030 which requires that "the regulations be submitted immediately to the Assembly. The Assembly may, by motion or resolution, modify any rules or regulations adopted by the board." In addition to public notice in the Juneau Empire, specific letters regarding these regulations were sent to all tour companies that are currently under permit with the Parks and Recreation Department. A copy of the regulations are included in your packet.

2. Request for Proposal Awards: March-May, 1995

As requested by the Assembly, your packet includes the Request for Proposal Awards for March, April and May, 1995.

C. Attorney's Report:

1. Draft Findings in West Mendenhall Valley Neighborhood Association, Inc. Consolidated Appeal of Planning Commission Grant of Conditional Use Permit (CU5594), Zoning Upgrade (ZU0194), Preliminary Plat (PP0594) and Wetlands Review Board Grant of Wetlands Permit (WP0394) to Bicknell, Inc.

As directed by the Assembly, counsel for the Planning Commission has prepared draft findings in the appeal of the Bicknell, Inc., subdivision and gravel extraction operation permits. The proposed findings are now before the Assembly for review and adoption.

On May 6, the Assembly, sitting in its quasijudicial capacity, heard the appeal brought by the West Mendenhall Valley Neighborhood Association, Inc., of the Planning Commission grant of Conditional Use Permit CU-55-94, Zoning Upgrade ZU-01-94, and Preliminary Plat PP-05-94, as well as the Wetlands Review Board grant of Wetlands Permit WP-03-94 to Bicknell, Inc. At the conclusion of oral argument, the Assembly announced its findings, voted to deny the appeal, and directed counsel for the prevailing party to draft proposed findings.

On June 16, 1995, the draft findings and order were completed and circulated to the parties for comment as required by CBJ 01.50.140(b)(3). Comments were due no later than the close of business on June 23. Neither comment, nor a request for an extension of time have been received as of June 26, 1995. The Assembly may adopt, amend, or reject the proposed decision draft findings.

As this is an adjudicatory matter, I have no recommendation.


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