TO: Mayor and Assembly

DATE: March 18, 1996

FROM: David R. Palmer City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 96-10


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SPECIAL ORDERS OF BUSINESS:

1. Recognition of Juneau-Douglas High School Girls’ Championship Basketball Team and Meagan Gleason, All-State Girl’s Basketball Team

Special recognition will be given to the JDHS High School Girls’ Basketball Team and to Meagan Gleason, JDHS All-State Player, at tonight’s meeting.

2. Proclamation Honoring Retiring CBJ Treasurer Vickie Williams

Ms. Vickie Williams has recently retired from CBJ service; Mayor Egan has asked that she be honored for that service at tonight’s meeting. I would like to express my appreciation, and on behalf of the entire staff, thank her for her dedicated service to the city.

3. Appreciation for Benjamin Haight for His Service on the Building Code Advisory Committee

Benjamin Haight served on the Building Code Advisory Committee for ten years from November, 1985 to November, 1995. The Building Code Advisory Committee reviews the technical codes that are adopted by reference in Title 19 of the CBJ Code. The process for review of the codes is long and tedious. He served several terms as Chair of the Committee. A plaque will be presented to Mr. Haight in appreciation for his years of service to the builders and the community. Thank you, Ben, for your dedication.

4. Presentation by the Alaska Committee’s Subcommittee on Housing

Members of the Alaska Committee’s Subcommittee on Housing will be present at tonight’s meeting to make a presentation to the Assembly.

5. Ordinance 96-06

This ordinance creates LID No. 81 for the purpose of improving certain streets and installing a water distribution system serving Wickersham Avenue, Dimond Drive, Bartlett Avenue, and Sutherland Drive in the White Subdivision.

Since the introduction of this ordinance on February 12, 1996, notices were published in the newspaper and sent to residents in the LID area to advise them of this hearing. Funds come from sales tax, water extension, sewer extension, and LID funds.

The Clerk's Office has received two written objections to this LID; the letters and a response are included in your packet.

I recommend that the Assembly adopt Ordinance No. 96-06.

6. Ordinance No. 96-07

This ordinance creates LID No. 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.

Since the introduction of this ordinance on February 12, 1996, notices were published in the newspaper and sent to residents in the LID area so that they would be aware that they now have the opportunity to make their views known to the Assembly. Funds are provided by a State grant, LID revenues, and a DEC loan.

The Clerk's Office has not received any objections to this LID.

I recommend that the Assembly adopt Ordinance No. 96-07.

CONSENT AGENDA:

A. Ordinances for Introduction:

1. Ordinance No. 95-11 (AK)
This action will appropriate $600,000 from the Unappropriated Water Fund to replace water lines on Aspen Avenue and Pinewood Drive. This appropriation was approved by the Public Works & Facilities Committee at its March 13 meeting.

This water line serves approximately 75 residences. It is cement-asbestos pipe installed by the subdivision developer in 1960. The line is only buried 3 to 5 feet deep. This winter 40% of the customers on this line had frozen water pipes and several fire hydrants were frozen. Replacement of this line is included in the Water/Sewer Master Plan.

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

2. Ordinance No. 95-11 (AL)
The Assembly Strategic Policy Committee (ASPC) is moving ahead with the CBJ’s community visioning project. In a meeting on March 7, 1996 the Committee reviewed a number of contract and funding options. The Committee approved a plan to move ahead with a recommendation to fund the project at $70,000. This was previously reviewed and approved at this amount by the Assembly Finance Committee. The Mayor’s and Assembly Budget currently contains $30,000 for this project. The Committee approved a motion to present to the Assembly a $40,000 appropriation which would bring the approved budget up to the required $70,000. The Committee also recommended the unappropriated General Areawide Fund Balance as the source of funding for the appropriation.

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

3. Ordinance No. 96-10
This ordinance authorized the issuance of $300,000 of the $4,300,000 Riverbend School General Obligation (GO) Bond issue approved by voters in the October 1994 election. The issuance of these bonds have been timed to meet the DOE matching requirements and the cash flow needs of the project. This issue will be the CBJ’s first over the counter bond issue (OTC).

To date we have received about 400 individual responses from residents indicating they might be interested in purchasing over-the-counter bonds.

We will be offering these bonds for sale at City Hall to local residents in $1,000 increments. The bonds will be issued in serial with maturities of 1 to 10 years. Orders for the bonds will be taken by Finance staff and forwarded on to our bond registrar for final management.

There are some caveats regarding this issuance. First, it is important that all of the bonds are sold to properly meet the match funding requirements. Since we do not know the amount of bonds which could be sold locally, we are taking a conservative position by electing to issue a fairly small amount of OTC bonds. Second, there is no secondary market for these bonds, investors may find it cumbersome to sell their bonds, if the need arises.

Using this week’s market rates as an example, we would issue these tax exempt bonds from a low of 4.5% for the 1 year maturities to a high of 5.5% for the 10 year maturities. The actual bond interest rate will be set by our financial advisor, Seattle Northwest Securities, the day before the bond sale. The interest earned from these bonds is exempt from federal income tax.

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

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

4. Ordinance No. 96-11
This ordinance authorized the issuance of $4,000,000 of the $4,300,000 Riverbend School General Obligation (GO) Bond issue approved by voters in the October 1994 election. The issuance of these bonds have been timed to meet the DOE matching requirements and the cash flow needs of the project. This issue will include refunding of $11,655,000 of existing callable debt.

This ordinance would allow a negotiated sale for both the $4,000,000 initial issue and the refunding bonds with Prudential Securities. The refunding issue, depending on the market at the time of issuance, is projected to reduce future debt service (in current dollars) by more than $300,000. In addition by combining the new issue with the refunding issue, our financial advisor, Seattle Northwest Securities, is projecting a net benefit of approximately $40,000.

It should be noted that the final determination to proceed with the issuance of the refunding bonds will be dependent on the market conditions at the time of the sale.

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

B. Resolutions:

1. Resolution No. 1808

This resolution supports state legislation that would reform procedures for involuntary alcohol commitments. Current procedures are complicated and time-consuming. In Juneau, involuntary commitments are prosecuted by the Law Department. Other Alaskan communities just avoid the process.

Your packet includes a copy of the pending legislation, which was drafted with the assistance of the CBJ Law Department. The new procedures are intended to make commitments less burdensome for alcohol and drug agencies, while still preserving the rights of the person to be committed. The changes include new definitions of "alcoholic," "drug abuser," and "incapacitated" more in line with modern clinical usage of these terms. New procedures would eliminate the requirement for a jury trial for the initial 30-day commitment.

Approval is recommended by the Social Services Advisory Board.

2. Resolution No. 1811

This resolution authorizes negotiations with Totem Creek Development Corporation for the disposal of CBJ land on North Douglas for a golf course. The terms and conditions of the negotiations are identical to the authorization previously granted to the first proposer, Waterfront Park Development Corp. Before the disposal is concluded, both the Planning Commission and the Assembly will review the proposal.

I recommend that this resolution be adopted.

C. Bid Awards:

1. Contract No. E96-272: Craig Street and Mountainside Drive Reconstruction

Bids were opened on the subject project on March 5, 1996. The bid protest period expired at 4:30pm on March 7, 1996. Results of the bid opening are as follows:

          RESPONSIVE			        TOTAL BID 


 


	SECON, Inc.  			        $914,392.00 


	Arete Construction Corporation	       1,187,813.00 


        Miller Construction Company, Ltd.      1,229,916.85 


 


		Engineer’s Estimate	      $1,012,419.00  

The project consists of the reconstruction of Craig Street and Mountainside Drive, including installation of underground storm drainage and underdrains; embankment subcut and replacement; asphalt street paving; construction of an asphalt pavement sidewalk, curb and gutter and miscellaneous related work.

I recommend award of this project to SECON, Inc. in the amount bid, for a total award of $914,392.00.

2. Contract No. SD96-264

Bids were opened on the subject project on February 7, 1996. The protest period for this bid was completed at 4:30pm on February 9, 1996. Two bids were received, but one was deemed to be non-responsive. The School District Facilities Committee recommended Engel Mechanical, Inc. for award of the base bid on February 15, 1996. The School Board recommended Engel Mechanical, Inc. for award of base bid on February 20, 1996.

	        Contractor			Base Bid	 Alternate #1 


 


		Engel Mechanical, Inc.		  $117,600	 $42,400 


		Gert Construction (non-responsive)$118,179	  30,000 


 


		Engineer’s Estimate		  $108,000 

This project will repair the existing boiler at the high school.

I recommend award of this bid to Engel Mechanical, Inc. for the amount bid for the Base Bid only, for a total award of $117,600.

D. Transfer Requests:

1. Transfer No. T-590:

This transfer of $18,711 will pay for improvements for the Mountainside Estates Pump Station Reconstruction project. These improvements are being done via change order to meet flow demands out of the pump system and for unanticipated landscaping and drainage improvements. This project is nearly complete except for the punch list, landscaping and drainage items.

After the transfer is approved the funds available balances, budgets, and status for the projects will be as follows:

Transfer Status/		Unobligated		Unobligated		Total Project 


Project Number/		        Funds Available	       Funds Available		Budget 


Project Name		        Prior to Transfer      After Transfer		After Transfer


	Status 


 


 


Transferred from: 


 


W005-91/ 


Last Chance Basin 


Salmon Creek		        $6,181			$   -0-			$    53,819/


	closed 


 


U141-85/ 


Area-wide Telemetry 


System			        $5,731			$   -0-			$1,783,649/


	closed 


 


U180-89/ 


Waydelich Creek to 


Indian Pt. Water		$6,799			$   -0-			$1,773,101/


	closed 


 


 


Transferred to: 


W494-03/ 


Mountainside  


Estates Pump Station 


Reconstruction		        $5,460			$24,171			$  453,627/

on going I recommend that this transfer be approved.

2. Transfer No. T-591:

The Judy Lane/Coleman Street Reconstruction project bids came in somewhat higher than the Engineer’s Estimate. This transfer of $50,522 will allow the project to proceed with an adequate, but tight, contingency and funds for project administration and inspection.

After the transfer is approved the funds available balances, budgets, and status for the projects will be as follows:

Transfer Status/        Unobligated		Unobligated		Total Project 


Project Number/		Funds Available		Funds Available		Budget 


Project Name		Prior to Transfer	After Transfer		After Transfer


	Status 


 


 


Transferred from: 


D374-33/ 


Willoughby Parking 


Lot Paving		$ 4,522			$   -0-			$ 45,903/closed 


 


R412-49/ 


Sidewalk Construction 


and Repairs		$53,664			$47,664			$106,810/on going 


 


R412-51/ 


Dixon Street 


Viaduct Repairs		$40,000			$   -0-			$  -0-/closed 


 


Transferred to: 


R412-44/ 


Judy Lane/Coleman 


Dr. Reconstruction	$49,548			$100,070		$479,422/on going  

I recommend that this transfer be approved.

3. Transfer No. T-592:

The Engineer’s Estimate for the Julep Street Drainage Project, Phase V, is considerably higher than funds available. The original project budget did not include the extensive subexcavation and reconstruction work necessary; it was based on the major drainage work. This transfer of $102,000 would permit reconstruction of the entire roadway on South Julep Street as well as completing the drainage work.

The projects from which the transfers would be made are complete except for minor punch list items. This project will complete the implementation of the Julep Street Drainage Plan which was prepared in 1991. This plan has gone a long way toward elimination of the many drainage problems in this area of the Mendenhall Valley.

After the transfer is approved the funds available balances, budgets, and status for the projects will be as follows:

Transfer Status/	Unobligated		Unobligated		Total Project 


Project Number/		Funds Available		Funds Available		Budget 


Project Name		Prior to Transfer	After Transfer	        After Transfer


	Status 
Transferred from: 


R412-35/ 


Julep St. Drainage 


Phase IV		$117,500		$ 85,500		$ 878,000/	on going 


 


R412-37/ 


James Blvd. 


Reconstruction		$ 89,460		$ 19,460		$1,230,000/	on going 


 


 


Transferred to: 


R412-43/ 


Julep St. Drainage 


Phase V			$745,939		$847,939		$ 852,000/


	on going  

I recommend that this transfer be approved.

4. Transfer No. T-593:

As the attached memorandum explains, there were unforseen site conditions and technical problems that required extra time and materials from both the contractor and staff. This transfer request will cover the unanticipated expenditures and allow the project to be closed.

After the transfer is approved the funds available balances, budgets, and status for the projects will be as follows:

Transfer Status/        Unobligated		Unobligated		Total Project 


Project Number/		Funds Available		Funds Available		Budget 


Project Name		Prior to Transfer	After Transfer		After Transfer


	Status 
Transferred from: 


D104-90/ 


Douglas Shop Roof 


Replacement		$  2,146		$ -0-			$109,809/


	closed 


 


P59-85/ 


Marine Park Ph. II	$  2,193		$ -0-			$602,042/


	closed 


 


 


P396-02/ 


Park Repairs/Safety 


Improvements		$ 52,454		$41,454			$104,569/	on going 


 


 


Transferred to: 


P396-04/ 


Savikko Park 


Restroom Renovation	$(11,571)		$ 3,768			$218,945/


	on going 

I recommend that this transfer be approved.

ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 96-09

This ordinance consolidates the procedures set out in a series of resolutions and ordinances enacted over the past several years. It provides for an annual evaluation, and establishes procedures for setting the amount of compensation.

This ordinance was prepared according to the directions of the Ad Hoc Executive Compensation Committee at its meeting of February 7.

I recommend that this ordinance be adopted.

2. Ordinance No. 95-11 (AH)

In 1993 the voters approved the sale of general obligation bonds to fund the expansion of the use of technology within the Juneau School District. The bonds were issued and sold in 1994. The proceeds have been used to expand the communications infrastructure within the School District to allow data communications not only between schools but globally via the Internet.

To date the bonds have earned $62,200 in interest. The district would like to obtain authorization to expend the interest earned on the following technology projects in the School District: additional infrastructure, e.g., add network drops to various offices; the purchase of a limited amount of hardware and software for increased student access; adding a second INTERNET server for increased performance and redundancy; and, completing a technology and network review for strategic planning of Phase II.

This ordinance will have economic impacts as indicated in the Economic Impact Note included in your packet. After this ordinance is adopted, the available fund balance will be as follows:

	        Project Budget		Funds		 


		After Ordinance		Available	Status 


 


                S454-46/District 


		Wide Technology	      $1,972,000	$67,605 on-going 

I recommend that this ordinance be adopted.

3. Ordinance No. 95-11 (AI)

The Juneau School District is requesting the appropriation to the district be increased by $1,239,500 for a total appropriation of $42,451,850, for the following reasons:

The Juneau School District’s budget, approved by the Assembly last spring, totaled $41,212,350. At the time the original budget is prepared the district has limited information to forecast grant funds available for the coming fiscal year. School enrollments are also estimates based on a consultant’s study. As a result the final enrollment and grant dollars received vary from the original budget projections. The following summarizes the changes:

Special Revenue Funds (grants, etc.) net increase is 	$530,000 


			Operating Fund increase is	$709,500 

The change to the Special Revenue Funds included combinations of increases and decreases that net to an increase of $530,000. Some increases were due to larger carry-over balances so the granting agencies are able to redistribute. Other increases were unanticipated funding of certain grants and applying for and receiving grants that the district was unaware of at budget preparation time.

The change to the Operating Fund resulted from increased enrollment. The increase was largely in secondary students attributable to the district starting an Alternative High School Program. Increased enrollment boosted Alaska Foundation Program revenue by $687,500. Operating Fund Balance usage of $22,000 brings the total Operating Fund increase to $709,500.

Last year’s collective bargaining agreement with the Teacher’s Union, while only providing half of what teachers traditionally receive for longevity increases, did include a provision that if the district had revenues exceeding a certain amount, the district would add teaching staff to the district. Because revenues exceeded the threshold amount, the district recently hired additional teachers to address the high pupil teacher ratios.

This ordinance will have economic impacts as indicated by the Economic Impact Note included in your packet. After this ordinance is adopted, the fund balance for the school district operating and special revenue funds will be at zero at fiscal year end.

I recommend that this ordinance be adopted.

4. Ordinance No. 95-11 (AJ)

The State of Alaska, Department of Health & Social Services, has awarded the sum of $35,000 to the CBJ Mental Health Division. These funds are to be used for seriously mentally ill clients for dental work, optical care, and job support. These are one-time monies and are 100% State funds. This grant will become part of the original Mental Health Grant #6-2210.

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:

1. Petition for Reconsideration of Decision in Clarke Damon Appeal (SV-05-95) On February 5, 1996, the Assembly adopted Findings and issued its Order affirming the decision of the Planning Commission in the appeal of Clarke Damon. The appeal concerned the vacation of a portion of “E” Street in Douglas to Mr. and Mrs. Ammon McDole. The Decision was signed by Presiding Officer Dwight Perkins and distributed to the parties. On March 5, 1996, Mr. Damon filed a Petition for Reconsideration of the Assembly’s Decision.

The Appellate Code at CBJ 01.50.180 provides for reconsideration as follows:

01.50.180 RECONSIDERATION. (a) The appeal agency may, within thirty days after the delivery or mailing of a decision to the parties, order a reconsideration of all or part of the appeal on its own motion or on petition of a party. A petition for reconsideration filed by a party will be placed before the appeal agency at the first regular meeting at which the matter may be scheduled or at a special meeting called for that purpose. Unless granted by an affirmative vote of the appeal agency, the petition for reconsideration is deemed denied.

(b) An appeal may be reconsidered by the appeal agency on all the pertinent parts of the record and the additional evidence and argument that are permitted, or may be assigned to a hearing officer. A reconsideration assigned to a hearing officer is subject to the procedure provided in Section 01.50.140. If oral evidence is introduced before the appeal agency, an appeal agency member may participate in the decision only if the appeal agency member has heard the evidence in person at the initial hearing and the hearing on reconsideration.

The Decision and the Petition for Reconsideration is now before the body. The Assembly may vote to accept the Petition for Reconsideration or it may do nothing in which case the petition is deemed denied.

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

NEW BUSINESS:

1. Port Dues Increase Request

The Docks & Harbors Board, at its regular meeting of February 1, 1996, moved to request the Assembly set the Port Dues Rate for 1996 at 21 cents per net registered ton. This was based on an expected 5,288,101 net registered tons for the 1996 season.

This rate would be sufficient to pay the required 1006 debt service on the Port Bond ($983,900), plus add approximately $130,000 to the so-called “cushion”, or surplus in the Port Dues Fund. That “cushion” is approximately $330,000, at present, but it fluctuates dramatically based on revenue-stream and debt service payment schedules.

At its regular meeting on January 11, 1996, the Port Advisory Committee had recommended that the Port Dues Rate be set at 18.5 cents per net registered ton. This rate would have only paid the required 1996 debt service.

During the time since the Docks and Harbors Board meeting, two ships have canceled their scheduled port calls to Alaska, which has led to a reduction in expected net registered tonnage down to 4,983,920 n.r.t.

At this new level, 19.5 cents would generate $923,100 and the 21 cents, recommended by the Docks and Harbors Board, would generate $1,047,900. The 18.5 cent rate would be $60,000 short of paying the 1996 debt service. The 21 cent rate would generate $1,047,900 which would pay the required debt service and contribute $64,000 to the “cushion”.

It is important to note that the Docks and Harbors Board views the “cushion” as something that is required by the Port Dues Ordinance. The ordinance authorizes a rate up to 25.0 cents.

I recommend that the Assembly adopt the rate of 21.0 cents as proposed by the Docks & Harbors Board.

ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

B. Manager's Report - Information Item:

1. Automatic Payroll Deposit We are pleased to announce that after many months of preparing we can now offer the employees of the City & Borough of Juneau the ability to direct deposit their paychecks. This will be beneficial to both the employee and Finance department as well. The employee will receive there deposits the morning payroll is distributed without the hassle of going to the bank. This will result in the availability of that money from one to three days sooner. The employee will also be allowed to split the deposits to two separate banking institutions for added convenience.

The benefits to the City include time saved in printing, decollating, signing, distributing and reconciling checks. Logistically, this will also ease congestion on payday in the treasury area. Direct deposit enhances Treasury’s ability to manage and project cash needs more accurately and timely. Finally, the City benefits monetarily in processing costs per transaction, lost checks and stop payments.

C. Attorney's Report:

DRP:dmh
Manager’s Report - Regular Mtg. No. 96-10
March 18, 1996
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