TO: Mayor and Assembly DATE: February 12, 1996

FROM: David R. Palmer City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 96-04


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SPECIAL ORDER OF BUSINESS:

CONSENT AGENDA:

A. Ordinances for Introduction:

1. Ordinance No. 96-06
This ordinance establishes LID 81 for improving certain streets and installing a water distribution system serving Wickersham Avenue, Dimond Drive, Bartlett Avenue, and Sutherland Drive in the White Subdivision. The estimated project cost is $780,000. The property benefitted will bear approximately $193,000 of the cost of the improvement, and the city and borough will bear the remainder, or $587,000.

Funding for the project is as follows:  

       

				FY97 Street Sales Tax	$427,000  

				Water Extension Fund	160,000  

				Sewer Extension Fund	0  

				LID Contribution	193,000  

              

				Estimated Project Cost:	$780,000  

       
The appropriate step at this time is for the Assembly to introduce this ordinance and schedule it for public hearing at its regular meeting of March 18, 1996. In the interim, notices will be published in the newspaper and sent to residents in the proposed LID so that they will have the opportunity to make their views known to the Assembly.

The Public Works & Facilities Committee at its meeting of October 4, 1995, reviewed and recommended forwarding LID 81 to the Assembly.

Your packet includes the legal description for LID No. 81, a project map, a sample of the letter to be sent to the property owners in the proposed LID, a copy of the public notice, the proposed assessments, the results of an informal ballot answered by most property owners in the proposed LID, and a tentative schedule of events for LID No. 81.

I recommend that this ordinance be introduced and set for public hearing at the March 18, 1996, regular meeting.

2. Ordinance No. 96-07
This ordinance establishes LID 82 for constructing a sewer system serving Mendenhall Loop Road, from Jo Anne Way to Lee Street, and serving Windfall Avenue, Auke Street, Lake Shore Drive, Auke Lane, Auke Kwaan Way and Jo Anne Way. The estimated project cost is $1,580,000. The property benefitted will bear approximately $350,000 of the cost of the improvement, and the city and borough will bear the remainder, or $1,230,000.

Funding for the project is as follows:  

       

            	FY96 Alaska Administrative Grant    $600,000  

            	Remaining Goat Hill Sewer Funds	     122,000  

            	FY97 State grant or an ADEC Loan     580,000  

            	LID Contribution	             350,000  

              

            	Estimated Project Cost:	          $1,580,000  

An ADEC loan will be requested for the $580,000 should the FY97 State grant request not come through.

The appropriate step at this time is for the Assembly to introduce this ordinance and schedule it for public hearing at its regular meeting of March 18, 1996. In the interim, notices will be published in the newspaper and sent to residents in the proposed LID so that they will have the opportunity to make their views known to the Assembly. The Public Works & Facilities Committee at its meeting of December 13, 1995, reviewed and recommended forwarding LID 82 to the Assembly.

Your packet includes the legal description for LID No. 82, a project map, a sample of the letter to be sent to the property owners in the proposed LID, a copy of the public notice, the proposed assessments, the results of an informal ballot answered by most property owners in the LID, and a tentative schedule of events for LID No. 82.

I recommend that this ordinance be introduced and set for public hearing at the March 18, 1996, regular meeting.

3. Ordinance No. 95-11 (AB)
At its March 29, 1995 meeting the Assembly Finance Committee approved the budget for the expenditure of waterfront vendor permit fees for FY96. The amount, $35,000, was in excess of the original estimate already contained in the FY96 budget. The extra revenues and expenditures should have been added to the budget, but were inadvertently omitted. This ordinance corrects that oversight.

This appropriation provides for the following expenditures and transfers previously approved by the Finance Committee. These figures reflect additional revenue from the permit auction held a few weeks ago.

Total revenue available above original  

			FY96 estimates already in the budget:	$36,400  

  

			Expenditures previously approved:  

			Weekend Park Ranger		       $  9,900  

			Restore FY94 reduction to flowers         5,000  

			Total expenditures			$14,900	  

  

			Transfer the FY96 source of funding for  

			flowers from hotel tax to permit fees	$10,000	  

	  

                        Total amount of appropriation:		$24,900  

  

			Amount to General Fund balance:	        $11,500  

  

Staff expects additional expenses in the FY97/98 budget, due to the increasing length of the tour season, so the amount of fees available to the General Fund will decrease next year.

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

B. Resolution:

1. Resolution No. 1805
This resolution establishes the Assembly's commitment to the use of a project labor agreement (PLA) for the Riverbend School project. The resolution also makes it clear that the primary justification for use of a PLA is one that is acceptable to the courts: ensuring a steady supply of qualified labor. The language in the resolution requires the Manager and Attorney to look into the matter and return for Assembly approval of either a completed PLA document, or the minimum specifications for a PLA to be negotiated between the winning contractor and the labor unions

. As this represents a policy decision by the Assembly, I have no recommendation.

2. Resolution No. 1806
At its meeting of February 5, the Assembly directed preparation of a resolution supporting efforts to construct a pipeline to provide North Slope natural gas to serve Asian markets. This resolution is similar to, but somewhat less detailed than House Joint Resolution No. 54 now pending before the Alaska Legislature.

As this represents a policy decision by the Assembly, I have no recommendation.

C. Bid Modification Request:

1. State Contract No.SEF-410
In August, 1995 the CBJ attempted to renew the contract with Lewis Motors of Juneau for the purchase of police cars. Because Chevrolet is discontinuing production of full sized police cars, Lewis Motors was unable to provide the vehicles. In October, 1995 the Assembly approved the purchase of three police cars from the State’s contract.

The CBJ is planning to purchase an additional three patrol cars from the State contract. Because the closing date for certain manufacturer incentives was November, 1995, the purchase price of these vehicles will be slightly higher. The CBJ will still experience a savings as this cost is still less than the CBJ paid for police cars in October, 1994 under the Lewis Chevrolet contract.

The CBJ intends to purchase three 1996 Ford Crown Victoria police cars at $21,023.50 each, for a total of $63,070.50.

I recommend that the modification request for three police cars to be purchased from the State contract, for a total cost of $63,070.50, be approved.

C. Transfer Requests:

.
1. Transfer No. T-588:
This transfer, in the amount of $472,000, ($117,100 from Unallocated Areawide Street Projects/Sales Tax, and $354,900 from Glacier Willoughby Reconstruction) will complete the funding for the Street Maintenance share of the Lemon Creek Street Maintenance Warehouse. Appropriation Ordinance No. 95-11 (AG) is scheduled for public hearing at tonight’s meeting; this ordinance appropriates the Household Hazardous Waste and Water/Sewer shares. This transfer was forwarded to the Assembly for approval by the Assembly Committee of the Whole on January 18, 1996.

The Glacier Willoughby Reconstruction project has been delayed until at least FY97 as it is a joint State/CBJ project, and state funding is not available in FY96. It is planned that FY97 funds be used for this project. Meanwhile, there is sufficient funding in the project to pay for the on-going design work.

After the transfer is approved, status will be as follows:

Transferred from:


Project Number/      Total Project      Unobligated      Unobligated

Project Name         Funds Avail.       Funds Avail.     Budget

                     Prior to Transfer  After Transfer   After Transfer      Status


Z492-00/  

Unallocated A/W Street  

Projects Sales Tax	$117,100		$-0-		$-0-	on-going;  annual 

                                                                        CBJ Capital budget

                                                                        allocated from this

                                                                        project.  

R412-46/  

Glacier Willoughby  

Reconstruction		 524,916            170,016	     170,100 

	on hold  

   

  

Transferred to:  

  

D374-39/  

Lemon Creek Street   

Maintenance  

Warehouse		 847,472          1,319,472	   1,572,000	on-going  

  

  

I recommend that this transfer request be approved.

2. Transfer No. T-589:
This transfer is requested to move $675,000 from the Port Bond Proceeds to fund the refurbishment of the Cruiseship Terminal Transfer Bridge ($175,000) and to fund all dredging costs at the Municipal Wharf ($500,000). The funds for the dredging project pay back funds previously expended from the Docks Budget, including preliminary dredging work, $44,300, and the removal of the remaining “snow dump” debris pile and primary dredging of the north and south ends of the docking area, $455,700. The CBJ Docks & Harbors Board approved this action at its February 1, 1996 meeting.

After this transfer is approved, status will be as follows:

Transferred from:


Project Number/      Total Project      Unobligated      Unobligated

Project Name         Funds Avail.       Funds Avail.     Budget

                     Prior to Transfer  After Transfer   After Transfer      Status

  

H02-91/  

Port Facility               

Improvements	     $1,682,386	          $552,386	  $5,361,000	  to be   

                                                                          closed once

                                                                          Port Bonds spent 
Transferred to:
  

H354-62/  

Municipal Wharf   

Dredging and

Transfer Bridge  

Refurbishment		-0-		   675,000       675,000	    new project  

   

I recommend that this transfer be approved.

ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 96-05

This ordinance will add services performed by naturopaths and acupuncturists to the sales tax exemption for medical services. At its January 10, 1996 meeting, the Assembly Finance Committee passed a motion to direct staff to prepare this ordinance for introduction to the full Assembly.

Naturopaths and acupuncturists provide alternative health care services compared to the traditional medical doctor. Naturopathic services are now reimbursed under city, state and federal insurance plans; acupuncture is reimbursed on a case-by- case basis. The financial impact of this exemption change is about $10,000 annually. In addition, this ordinance amends the code to more narrowly define the products that qualify for exemption. The current wording, which uses the term “goods”, allows non prescription medicine prescribed in writing by a doctor to be exempted. This ordinance substitutes the term “prescription drugs”, which means that only prescription medication administered by a registered pharmacist will be included in the exemption.

This ordinance will have impacts as indicated in the Economic Impact Note included in your packet.

I recommend that this ordinance be adopted.

2. Ordinance No. 95-11 (AE)

The City and Borough of Juneau has received $6,780 from the U.S. Department of Energy. This is the second and final payment due to CBJ from a lawsuit settlement known as the “crude oil overcharge refund proceeding”. The first refund check of $7,341, was transferred to the Centennial Hall energy efficiency fund.

At the November 7, 1995 Energy Advisory Committee meeting, it was unanimously recommended that the refund be transferred by the Assembly to the Energy Efficiency CIP fund (374-30). This ordinance will have impacts as indicated in the Economic Impact Note included in your packet.

I recommend that this ordinance be adopted.

3. Ordinance No. 95-11 (AF)

This ordinance appropriates $430,000 as part of the funding for the construction of a Street Maintenance Warehouse/Hazardous Materials Collection Center to be located on Commercial Blvd. in Lemon Creek. The project consists of construction of a 7,900 sq. ft. building which will hold the salt storage for the CBJ Public Works street maintenance function, a household hazardous waste collection center, and a number of associated storage and handling areas. A 1550 sq. ft. loading dock is shared between the main two functions. This facility will adjoin the existing CBJ Water Utility Building.

Ordinance No. 95-11 (W) appropriated $170,000 for the acquisition of the two lots needed to be purchased for the facility. The lots were purchased on December 29, 1995. As part of the transaction, the CBJ also received the right of first refusal to purchase two adjacent lots which could be used for expansion of other programs such as recycling. Further, Resolution No. 1767 allocated $300,000 in FY 1996 Street Sales Tax, and Transfer T-548 transferred $200,000 in FY 1994 Street Sales Tax, for this project.

The total cost of this project is $1,572,000. Of the $430,000 appropriated with this ordinance, $300,000 will come from the Waste Utility Fund, $65,000 from the sewer fund balance, and $65,000 from the water fund balance. Other sources of funds include the $170,000 already appropriated from the Lands Fund, and Transfer No. 588, in the amount of $472,000 from street projects is on the Consent Agenda at tonight’s meeting.

This project was unanimously approved at the Assembly Committee of the Whole meeting of January 17, 1996. It is anticipated that this project will go to bid in March with a completion date of October 1, 1996.

I recommend that this ordinance be adopted.

4. Ordinance No. 95-11 (AG)

This ordinance appropriates $500,000 for an affordable multi-family housing loan program. The intent of this program is to provide loans to private developers and non-profit organizations to stimulate the construction of multi-family rental units for low and moderate income households. The Assembly Lands Committee approved of this program at its January 18, 1996 meeting. The program was also developed in cooperation with the Alaska Committee.

Under this loan program, 0% interest loans will be made to developers based on a maximum CBJ contribution of $15/ sq. ft.. Payments on the loans are deferred for the first 10 years and the loan would be paid off the following 10 years. The minimum size of a project is 8 units. At least 20 percent of the units in a project will have to be set aside for low income persons at reduced rents. Other units can be rented at market rents as determined by the developer. Developers will be required to contribute a minimum of 10% equity into the project except for non- profit housing organizations. Other details of the program guidelines are attached.

This program is anticipated to stimulate the development of approximately 40 to 50 units of multi-family rental housing depending on the size of the units. The additional rental housing is needed because vacancy rates still continue to be about 1 percent.

The source of funds for this appropriation is from the Housing Fund which is made up from payments of previous CBJ housing loan programs. The Housing Fund will have a zero balance after this appropriation.

After this ordinance is adopted, the fund balances will be as follows: Community Development Block Grant Fund - $2,460; the Lands Fund - $774,872; and, the Low Income Housing Fund - $2,980. This ordinance will have economic impacts as indicated by the Economic Impact Note included in your packet.

I recommend that this ordinance be adopted.

UNFINISHED BUSINESS:

NEW BUSINESS

:

1. Messerschmidt Appeal of Planning Commission Denial of Application for Variance (VR-51-95)

At its regular meeting on January 9, 1996, the Planning Commission reconsidered and confirmed its decision denying an application by Steven and Lisa Messerschmidt for a variance (VR-51-95) to accommodate a deck which is presently encroaching four feet into the five-foot side yard setback at 15745 Glacier Highway. On January 29, 1996, the applicants appealed the Commission's decision to the Assembly.

The Statement of Appeal, the Notice of Decision on the VR-51-95, the staff reports for both the original application for a variance at the Planning Commission meeting of November 14, 1995, and the reconsideration of application on January 9, 1996, with pertinent Commission meeting minutes, are in your packet.

The Assembly is the appeal agency for this appeal, and its actions throughout the appeal process are governed by CBJ 01.50, the Appellate Code. The Code requires that upon receiving an appeal, the Assembly, must first decide whether to accept or reject it. The standards applicable to this decision are set out at CBJ 01.50.030(e):

(e) Action by Appeal Agency Upon Receipt of a Notice of Appeal.

(l) Within thirty days of receipt of a notice of appeal by theappeal agency, the appeal agency shall notify the appellant of the acceptance or rejection of the appeal and, if rejected, the reasons for the rejection.

(2) The notice of appeal shall be liberally construed in order to preserve the rights of the appelant. The appeal agency may reject the appeal for failure to comply with these rules or if the notice of appeal does not state grounds upon which any of the relief requested may be granted.

The Messerschmidts, the Community Development Department, and the Planning Commission have been advised that this matter is before the Assembly. In general, the Department and the Commission, have no objection to acceptance of the appeal, although they reserve the right to object to argument by the Appellant on some of the issues included in the notice of appeal.

The Law Department has not been significantly involved in this case, and we have been advised that neither the Appellant nor the Commission currently plan to be represented by counsel. Accordingly, the City Attorney is free to act as the Assembly's legal advisor.

The following procedural issues should be decided:

1. Will the Assembly accept the appeal?

2. Will the Assembly hear the appeals itself or assign to a hearing officer?

3. If the Assembly hears the appeal itself, will the Mayor preside, or will he designate a member as presiding officer?

This matter is before the Assembly sitting in its quasi-judicial capacity. Accordingly, members should avoid discussing the case outside the hearing process. With respect to this issue, the appellate Code provides as follows:

CBJ 01.50.230 IMPARTIALITY. The functions of hearing officers and those appeal agency members participating in decisions shall be conducted in an impartial manner with due regard for the rights of all parties and the facts and the law, and consistent with the orderly and prompt dispatch of proceedings. Hearing officers and appeal agency members, except to the extent required for the disposition of ex parte matters authorized by law, shall not engage in interviews concerning the appeal with, or receive evidence or argument on the appeal from, a party, directly or indirectly, except upon opportunity for all other parties to be present. Copies of all communications with a hearing officer or appeal agency member concerning the appeal shall be served upon all parties.

Because this is an appeal, I have no recommendation on whether or how the Assembly should hear the appeal. After the Assembly has made its decisions on these issues, the Clerk will contact the parties and the presiding or hearing officer to notify them of the Assembly's decision and to arrange for a pre-hearing conference or other proceedings.

ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

1. Forgiveness of Upaid Sales Tax for Naturopaths and Acupuncturists per CBJ Code 69.05.105.
At the January 10, 1996 Finance Committee meeting, the Committee approved staff’s recommendation to amend the sales tax code 69.05.040 (7) to add naturopaths and acupuncturists to the definition of medical services qualifying for exemption to sales tax. The total dollar impact of the change in 69.05.040 (7) for medical services has been estimated at $10,000. Currently we have four naturopaths and six acupuncturists licensed to practice in Juneau. Of the ten, three are registered and current in remitting sales tax on a quarterly basis. The Sales Tax Administrator has determined that the remaining seven have never collected the sales tax on any of their transactions or services. Per the CBJ code section 69.05.105, the Manager, with the consent of the Assembly, may forgive the payment of taxes, interest and penalty that have never been collected on a substantial portion of a clearly definable class of sellers or a substantial portion of clearly defined class or type of transaction or service

. At its January 10 meeting, the Finance Committee recommended that the Assembly consent to the Manager’s proposal to forgive the uncollected taxes, interest, and penalty for the acupuncturists and naturopaths in question, consistent with section 69.05.105.

B. Manager's Report - Information Item:

C. Attorney's Report:

DRP:dmh Manager's Report - Regular Mtg. No. 96-04 February 12, 1996


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