City and Borough of Juneau, Alaska

Manager's Reports

March, 1996



TO: Mayor and Assembly

DATE: March 4, 1996

FROM: David R. Palmer, City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 96-08


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SPECIAL ORDER OF BUSINESS:

CONSENT AGENDA:

A. Ordinances for Introduction:

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 introduced and set for public hearing at the next regular meeting.

2. 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).

From time to time we receive inquiries about the availability of local bonds. Our usual practice of bond issuances results in our bonds being purchased by institutional investors with little, if any, being available to the general public. In reviewing this issue we sent out inquiries to the general public inquiring as to their interest in acquiring the CBJ bonds. To date we have received about 400 individual responses indicating they might be or would be interested. In pursuing this issue we have moved ahead with plans issuing a small portion of the GO bonds locally. There is no financial gain associated with selling these bonds locally. We are proposing to issue these bonds OTC as a service to local residents.

We will be offering these bonds for sale at City Hall to local residents in $1,000 increments. Orders for the bonds will be taken by Finance staff and forwarded on to our bond registrar for final management. Since we do not know the amount of bonds which could be sold locally, we are proposing a relatively small amount. There are three concerns regarding this particular issuance. First, it is important that all of the bonds are sold to properly meet the matching requirements. Second, we do not know the time requirements or staff efforts it may take to properly administer the sale. Third, there is no secondary market for these bonds as such investors may find it difficult to market them if they decide to sell their bonds.

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.

3. Ordinance No. 96-11

This ordinance authorizes 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 for the 1989 Pool, 1989 A School/Playground, 1991 School and the 1991 A Port bond issues.

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. If it is determined that the refunding transaction will not result in a net benefit to the CBJ we will not proceed with this combined method of issuance.

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. 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 introduced and set for public hearing at the next regular meeting.

5. 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'sbudget, approved by the Assembly last spring, totaled $41,212,350. This total represents the operating fund and all of the district's Special Revenue Funds. 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.

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 introduced and set for public hearing at the next regular meeting.

6. 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 introduced and set for public hearing at the next regular meeting.

B. Resolution:

1. Resolution No. 1807

This resolution says that the Assembly opposes the "Fairness in Salmon Harvesting" initiative, which would direct the Board of Fisheries to give sport and personaluse fishing a priority over commercial harvesting. A bill with similar requirements has been introduced in the Legislature.

United Fishermen of Alaska opposes the initiative and the legislation. Your packet includes UFA materials explaining how these measures would adversely affect commercial fishing.

I recommend that this resolution be adopted.

C. Bid Award:

1. Bid No. 96-244: Two (2) Fifteen Passenger Window Vans with Wheelchair Lifts Bid for two fifteen passenger window vans with wheelchair lifts for the CBJ Capital Transit was opened on February 9, 1996 with the following results:

Encumbered:		$80,000 (source of funds - Federal Transit Administration)
			BIDDER			TOTAL BID







		Western Bus Sales		$74,900.00



		A-Z Bus Sales			$80,480.00



		Emmett Koelsch Coaches, Inc.	$82,132.00



		Peninsula Trust			$83,550.00



		New Era				    No Bid

I recommend award to Western Bus Sales as having the lowest responsive bid price, for a total bid award of $74,900 for two vans.

D. Card Room License Renewal:

1. The Triangle Club

The Triangle Club has applied to renew it's card table license authorizing one table for pinochle. The Police, Finance, and Community Development departments have reviewed the application and have no objections to the issuance of said license.

I recommend the Assembly approve The Triangle Club's application for a card table license.

E. Liquor Licenses Renewals & Transfer:

1996 -1997 Renewals







		1.	The Broiler			8.	Mike's Place



		2.	Chinese Palace			9.	Odom Co.



		3.	Fiddlehead			10.	Rendezvous



		4.	Home Liquor			11.	Olivia's de Mexico



		5.	Imperial Bar			12.	Thibodeau's Liquor Barrel



		6.	Kenny's Liquor Mart		13.	Valley Restaurant



		7.	Louie's Douglas Inn		14.	West Coast Distributors

The Police, Fire, Community Development, and Finance Departments have reviewed the liquor licenses as listed and have no objections to the renewals as listed. The Human Resources Committee met on Monday, February 26, 1996 and adopted a motion to recommend the Assembly waive its right to protest the 1996 and 1997 renewals for the liquor licenses listed above.

I recommend the Assembly adopt the Human Resources Committee recommendation.

Transfer of Ownership 1. Valentine's Coffee House: Steven J. Pfister; 111 Seward St.; Mail same. Transferred from: John Farnan & Richard M. Levitt; PO Box 275; Juneau, 99801; F & L.

The Police, Fire, Community Development, and Finance Departments have reviewed the transfer of ownership as listed and have no objections to the transfer. The Human Resources Committee met on Monday, February 26, 1996 and adopted a motion to recommend the Assembly waive its right to protest the 1996 and 1997 transfer of ownership for the liquor license listed above.

I recommend the Assembly adopt the Human Resources Committee recommendation.

ORDINANCES FOR PUBLIC HEARING:

1. 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

Note: at its January 24, 1996 meeting, the Public Works & Facilities Committee approved a reimbursement to Skip Wallin for repairs to the bear sculpture on Main Street. If the Assembly adopts a motion approving the PW&F Comm. recommendation, the additional amount $5,750, will be funded from the permit fee increase.

Amount to General Fund balance after amendment for bear sculpture repair: $ 5,750

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 adopted.

UNFINISHED BUSINESS:

1. 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.

NEW BUSINESS:

ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

1. Tideland Lease Agreement with Goldbelt, Inc.

Goldbelt Inc. has applied for a lease of a 40,613 sq. ft. ( 0.93 acre) parcel of CBJ tidelands located adjacent to the Seadrome Building. The purpose of the lease is to accommodate the construction of a float to moor Goldbelt's tour vessels. The first phase of development will include rehabilitation of the Seadrome Building for tour use, creating a motor coach pull-off area, landscaping and construction of the float. Future plans could include replacement of the Seadrome Building with a hotel. A description of the project is attached.

The subject tidelands were leased to Robert Giersdorf on August 12, 1982 for a similar project. However, Giersdorf did not go ahead with the project and relinquished the submerged portion of the leased property on March 27, 1992. Giersdorf did retain a 3,198 sq. ft. upland portion of the property which is presently used for parking. On November 21, 1995 the lease was assigned to Goldbelt Inc. who has purchased the Seadrome property from Giersdorf. Goldbelt also has an option to purchase the adjacent Knudson property to be included in their development plans.

As the owner of the uplands, Goldbelt has rights of access across CBJ tidelands. In order to build any structure on the tidelands, a lease is required. Because of the rights of access of the upland owner, the CBJ cannot lease the tidelands to another party. However, CBJ Code 53.09.260 requires the Assembly to make a motion to enter into lease negotiations on a negotiated or competitive basis.

I recommend that the Assembly adopt a motion for the manager to enter into lease negotiations with Goldbelt Inc. for the lease of tidelands. The specific terms and conditions of such negotiations would be brought back to the Assembly in the form of an ordinance for review and approval. The Planning Commission will also be involved in the review process.

2. Naming of Greenbelt

Included in your packet is information from the Parks and Recreation Advisory Board, recommending the name for the Greenbelt Trail.

I recommend that the Assembly adopt the Parks & Recreation Advisory Board recommendation.

B. Manager's Report - Information Item:

1. Status Report - Golf Course

A current status of the golf course project will be provided at Monday's meeting. A letter dated February 29 from Mr. Holden's attorney is included in your packet

C. Attorney's Report:

DRP:dmh 
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