TO: Mayor and Assembly

DATE: April 15, 1996

FROM: David R. Palmer City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 96-12


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CONSENT AGENDA:

A. Ordinances for Introduction:

1. Ordinance No. 95-11 (AT)

This ordinance appropriates $30,000 for the construction of a floating dock at Twin Lakes. The source of funding is a grant from State Department of Fish and Game to the Parks and Recreation Department to provide accessible fishing at Twin Lakes. The proposed prefabricated dock is estimated to cost $40,000 in place; the CBJ Accessibility Committee has pledged the additional $10,000 needed from their annual accessibility CIP. This project is a high priority for the Americans with Disabilities Act Committee (ADA). The transfer request for $10,000 will be introduced at the meeting of May 6, 1996.

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

2. Ordinance No. 95-11 (AU)

Funds are needed for the Public Safety Building Planning Capital Project to pay for work requested by the Mayor’s Task Force. In the proposed FY97 Capital Project Listing, $25,000 has been identified for additional planning for the Public Safety Building. This ordinance would appropriate the $25,000 now, so that the planning work can continue; once the FY97 Capital Project listing is finalized, and if the Planning project is on the list, the funds will remain in the Budget Reserve.

After this ordinance is adopted, the estimated Budget Reserve balance at 6/30/96 will be $6,816,491.

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

3. Ordinance No. 95-11 (AV)

This ordinance would provide a grant of $20,000 from the Unappropriated General Fund Balance to the Gastineau Channel Little League for construction of grandstands at Melvin Park. The grandstands will be constructed with donated labor. This proposed appropriation was approved by the Finance Committee at their March 27, 1996 meeting.

After this ordinance is adopted, the Unappropriated General Fund Balance will be $4,089,300.

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

4. Ordinance No. 95-11 (AW)

This ordinance appropriates $15,000 to the Juneau Economic Development Council (JEDC) for the publication of “The Capital Profile”, the twice yearly report on the health of the Juneau economy. CBJ currently has reserved $15,000 in General Fund fund balance to off set a previous loan made to JEDC. When JEDC repays the loan, it will free up the $15,000 reserved. The request, in effect, offsets the increase to the General Fund fund balance, once the reserve is eliminated, which results in n

After the loan is repaid and this ordinance is adopted, the Unappropriated General Fund balance will be $4,089,300.

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

5. Ordinance No. 95-11 (AX)

This ordinance appropriates $51,125 for the Crimson Bears Fast Break Club (FBC) as a loan; an additional $15,000 will be granted to the FBC from a school district capital improvement project F453 School Projects/Land Acquisition. The loan and the grant together will provide $66,125 for the project.

The FBC intends to replace the existing wooden bleachers in the Juneau Douglas High School gymnasium. The bleachers need to be replaced for safety issues and ADA requirements amongst other reasons.

This will be a 0% interest loan to be repaid before June 30, 1999. The proposed appropriation was approved by the Finance Committee at their meeting of March 27, 1996.

After this ordinance is adopted, the Unappropriated General Fund Balance will be $4,036,175.

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

6. Ordinance No. 95-11 (AY)

This ordinance appropriates to the manager the sum of $15,000 for the Juneau Recovery Hospital. The State of Alaska Department of Health and Social Services has awarded the funding for a pilot project to detoxify individuals who are suicidal.

This project has received approval from the Social Services Advisory Board and the Bartlett Memorial Hospital Administrator.

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

7. Ordinance No. 96-16

This ordinance authorizes the negotiated sale of approximately 6.5 acres of land in the vicinity of Thunder Mountain to Tom Fallis to facilitate the expansion of his mobile home park, which is located on adjoining property. The negotiated sale is consistent with the recommendations of the recentlyadopted Land Management Plan. The plan recognized that there are no available trailer spaces in Juneau at this time. The expansion of Mr. Fallis' mobile home park would provide an opportunity for increasing affordable housing in the community.

The property to be sold is part of a larger city parcel that extends along the base of Thunder Mountain. Much of the city parcel is not suitable for development because of wetlands and avalanche paths. Mr. Fallis has worked with the U.S. Army Corps of Engineers to identify the location of wetlands in that area. The property he proposes to purchase consists of a wedge of land west of the Jordan Creek wetlands and the Thunder Mountain avalanche paths.

A purchase agreement, which incorporates the terms and conditions of sale as set forth in the ordinance, is included in your packets. Mr. Fallis has reviewed the terms and conditions and finds them acceptable.

In order for the property to be used for a mobile home park, Mr. Fallis will need to obtain a Conditional Use Permit and a rezoning of the parcel. Proposed revisions to the Comprehensive Plan reference the potential rezone to accommodate mobile home park use. Once the Assembly has adopted the updated Comprehensive Plan, Mr. Fallis intends to file applications for the rezone action and a Conditional Use Permit.

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

8. Ordinance 96-17

This ordinance will appropriate the FY97 operating budget for the City and Borough of Juneau. The Assembly Finance Committee is currently reviewing the budget as submitted by the City Manager. The Charter requires the Assembly to adopt the FY97 operating budget, by ordinance, no later than June 15, 1996. The Charter also requires at least one public hearing to be held on the budget and capital improvements program during the month of April 1996. The budget will be adopted in June, 1996 after the public hearing and Assembly review and revisions.

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

9. Ordinance 96-18

This ordinance appropriates the FY97 Operating Budget for the School District. The Assembly Finance Committee is currently reviewing the School District’s FY97 support request and their budget submission. The Assembly is required, by State Statute, to indicate the minimum amount of funding to be made available for School District operational support no later than 30 days after submission of the School District’s budget, for this year April 28, 1996. The Assembly must by ordinance adopt the amount of local support for School District operations no later than May 31, 1996.

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

B. Resolutions:

1. Resolution No. 1815

This resolution expresses Assembly support for creation of a state recreation area at Eagle Beach. The resolution was recommended for adoption by the Parks and Recreation Advisory Board at its meeting of March 19, 1996. The State Division of Parks and Outdoor Recreation has asked for Assembly support of the request, which will be sent to the Alaska Department of Transportation and Public Facilities for ISTEA funding. Proposed park facilities will include: an RV park and tent camping areas as well as a small boat launch and connections to area trails. A conceptual plan for the proposed facilities is included in our packet. The need for facilities for independent travelers in general and campgrounds in particular, was articulated in the community survey conducted for the Tourism Working Group by the McDowell Group.

I recommend that this resolution be adopted.

2. Resolution No. 1816

This resolution expresses Assembly support for a Forest Service project to improve the Mendenhall Glacier Visitors Center, including improvements to Photo Point trail and addition of 5800 square feet to the Visitor’s Center. Expansion of the Visitor's Center at the Mendenhall Glacier is essential for accommodation of the increasing number of tourists visiting Juneau each summer. This issue was considered by the Tourism Working Group, who met with Forest Service staff to discuss expansion plans. Local support for federal projects is often a key factor in funding decisions. The TWG urges to the Assembly to express to our Congressional Delegation. CBJ’s support for the visitor center project. This resolution supports the Juneau District Ranger's request for federal funding for the project in Fiscal Years 1997 and 1998.

I recommend that this resolution be adopted.

C. Bid Awards:

1. Contract No. E96-237: Nelson Street and Fifth Street Reconstruction

Bids were opened on the subject project on April 5, 1996. The bid protest period expired at 4:30pm on April 8, 1996. Results of the bid opening are as follows:




				BASE		   	ADDITIVE	TOTAL BID

RESPONSIVE			BID			ALTERNATE	(Base Bid & Alt.)



Arete Construction Corp		$400,961.00		$37,201.00	$438,162.00

Miller Construction Co., Ltd.	$404,001.25		$35,561.00	$439,562.25

Coogan Construction Company	$476,359.00		$43,475.00	$519,834.00



Engineer’s Estimate		$375,248.00		$41,227.50	$416,476.50

The Base Bid for the project consists of full road reconstruction, including replacing subbase; base course; asphalt pavement; sidewalk; curb and gutters; valley gutters; construction of a retaining wall and barrier curb; handrails; a concrete block wall; steel-grated walkway; new water, sewer and storm drain utilities on Nelson Street, Fifth Street, Fourth Street, Kennedy Street and East Street. The Additive Alternate work consists of repairs to the Dixon Avenue viaduct, including concrete deck repairs; applying waterproof membrane; replacing base course and asphalt paving. Completion time for the Additive Alternate work; July 1, 1996; Nelson Street paving work: August 15, 1996; all remaining work under the Contract: September 24, 1996.

Funding source: FY96 Areawide Street Sales Tax
Total Project Funds for Nelson Street and Fifth Street Reconstruction = $660,002.

I recommend award of this project to Arete Construction Corporation in the amount bid for the Base Bid and the Additive Alternate, for a total award of $438,162.00.

2. Contract No. E96-308: JIA Air Carrier Hardstands

Bids were opened on the subject project on March 28, 1996. The bid protest period expired at 4:30pm on April 3, 1996. Results of the bid opening are as follows:




						BASE		  	 ADDITIVE	TOTAL BID

		RESPONSIVE			BID			ALTERNATE	(Base Bid & Alt.)



		Coogan Construction Co.	        $281,375.00 		$26,000.00	$307,375.00

		Alaska Stone & Concrete		$284,125.00		$43,000.00	$327,125.00

		Gastineau Contractors, Inc.	$300,043.00		$52,050.00	$352,093.55

		Glacier State Contractors, Inc.	$321,500.00		$47,000.00	$368,500.00

		Arete Construction Corporation	$333,812.50		$42,000.00	$375,812.50

		Channel Construction, Inc.	$348,526.35		$41,250.00	$389,776.35

		John-Wayne Construction Co.	$492,500.00		$61,699.00	$554,199.00



		Engineer’s Estimate		$337,924.30		$51,645.00	$389,569.30

The project consists of rehabilitation of existing hardstands to the Juneau International Airport air carrier apron. The work will include furnishing all materials, labor and equipment for constructing one new concrete hardstand at air carrier Gate 2, and expanding three existing concrete hardstands at air carrier gates 3, 4, and 5. Completion time for the work: 45 calendar days after the date of Notice to Proceed.

Funding source: 6.25% FY95 General Sales Tax; 93.75% FAA Grant, AIP No. 3-02-0133-17

Total Project Funds for JIA Air Carrier Hardstands = $1,303,366

I recommend award of this project to Coogan Construction Company in the amount bid for the Base Bid and the Additive Alternate, for a total award of $307,375.00.

D. Transfer Request:

1. Transfer No. T-595 Ordinance 95-11 (AS) appropriates FAA and DOT/PF grant funds for the Acquisition of a Replacement Liquid Urea Truck And Mixing and Holding Tanks. This transfer will provide matching funds of $10,000 from an Alaska Department of Administration grant #8/94-014. After this transfer request is approved the funds available balances, total budgets and status for affected projects will be as follows:

              Transfer Status/		Unobligated Funds	Unobligated Funds   Total Project

		Project No./		Available		Available	    Budget after

		Project Name Status	Prior to Transfer	After Transfer	    After Transfer    Status

		

		Transferred from:



		A345-06/

		Airport Construction-

		State Match II ongoing	$13,767			   $3,767		  $3,767     ongoing



		Transferred to:



		A345-22/

		Acquisition of 

		Replacement 

		Urea Truck		$310,000		 $320,000		$320,000    new  project	

I recommend that this transfer be approved.

E. Liquor Licenses Renewals:




        1.      Armadillo Tex Mex Cafe	        8.	Pizza Verona

	2.	Baranof Bubble Room		9.	Pizzeria Roma

	3.	Budget Liquor			10.	Rick’s Cafe

	4.	City Cafe			11.	Valley Liquor Mart

	5.	Eagles Aerie #4200		12.	Vito N’ Nick’s

	6.	Taku Glacier Lodge				

	7.	Golden Dragon		

The Police, Fire, Community Development, and Finance Departments have reviewed the liquor licenses as listed and have no objections to the renewals. The Human Resources Committee met on Monday, April 2, 1996 and adopted a motion to recommend the Assembly waive its right to protest the renewals for the liquor licenses listed above.

I recommend the Assembly adopt the Human Resources Committee recommendation.

ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 95-11 (AM)

This ordinance appropriates $125,000 to the Senior Citizen Support Services Inc. to meet necessary expenses in the construction of the Fireweed Place Senior Housing Project. The monies supplement a $620,000 grant made in November, 1992 for construction of the project.

The Assembly Committee of the Whole directed staff to negotiate an additional grant agreement with SCSSI, Inc. at its July 31, 1995 meeting, with funding to come from the Lands Fund.

The amendment acknowledges that the cost of land acquisition and the removal of existing structures (the Russell and Knight apartments) cost more than initially anticipated by either party. Additionally, the grant amendment will settle all outstanding disputes between the parties. Your packet also contains information about expected occupancy rates.

After this ordinance is adopted, the Land Fund Balance will be $669,393.

I recommend that this ordinance be adopted.

2. Ordinance No. 95-11 (AN)

This ordinance will appropriate $40,000 for a revegetation project at Twin Lakes. The funds come from The State Department of Transportation & Public Facilities which has offered to underwrite a Parks & Recreation Department attempt to get the plants to grow. No additional expenditure of CBJ funds is needed. A breakdown of the work to be done is included in your packet.

I recommend that this ordinance be adopted.

3. Ordinance No. 95-11 (AO)

This ordinance will appropriate $3,200 to provide for Columbia Lot parking enforcement; to be recovered from parking citation fees. 19 spaces will be available for 30-minute parking for commercial and non-commercial vehicle. Longer term parking will be available 1/10th of a mile away on the lot provide by the Mt. Roberts Development Corporation. Enforcement of the time restriction will be provided at times when a ship is at the Cruiseship Terminal or litering at the Intermediate Vessel Float. The cost of enforcement will be included in the FY97 budget through October; it is anticipated that this area will be under the management of the Docks & Harbors Department beginning in November, 1996.

I recommend that this ordinance be adopted.

4. Ordinance No. 95-11 (AP)

This appropriation request of $2,200 is to support a fee increase for admission to the City Museum. The increase is from $1.00 to $2.00 per person, effective May 1, 1996. The additional revenues will extend current hours at the museum, to match the State museum hours. The new hours would be 9:00am-6:00pm, Monday through Friday, and 10:00am to 6:00pm on Saturday and Sunday (hours were 9:00am to 5:00pm last year, Monday through Friday, and 10:00am to 5:00pm Saturday and Sunday). This change has been incorporated into the FY97 budget; this request is to increase the FY96 budget so that fees charged and staff support provided are consistent through the tour season. Revenues are expected to increase by $2,200 between May 1 and June 30, 1996 through this appropriation, with offsetting costs for staff support.

I recommend that this ordinance be adopted.

5. Ordinance No. 95-11 (AQ)

This ordinance would appropriate $39,500 to provide increased support to CDD staff during the building season. This increase will: extend a seasonal inspector through the end of this fiscal year; add a temporary inspector through the end of this fiscal year; add one additional intern; increase contractual services for consulting engineers/inspectors, and offer code training to allow private individuals to review plans. The funding source is permit revenues.

I recommend that this ordinance be adopted.

6. Ordinance No. 95-11 (AR)

This appropriation would increase the FY96 Mental Health Division budget by $60,000 to provide services to seriously emotionally disturbed youth. Funding for this increase will be provided from State Medicaid revenues; no City general funds are requested. The increase will be used for contracts with foster care homes, summer RALLY costs, individualized assistance workers, and other summer activities.

These summer activities will be an extension of the ACCESS program which provided services to youth during the school year. The school district, teachers, and parents supported this program as it provided support to seriously emotionally disturbed youth in the school and after school settings. This increase will allow services to continue beyond the end of the school year in June. I recommend that this ordinance be adopted.

7. Ordinance No. 95-11 (AS)

This ordinance would appropriate $310,000 in grants from the Federal Aviation Administration (FAA) and the Alaska Department of Transportation and Public Facilities (DOT/PF) for acquisition of a replacement urea truck and mixing and holding tanks.

The total project cost is $320,000. FAA is funding the project at $300,000 (93.75% of total project cost); DOT/PF is funding the project at $10,000 (3.125% of total project cost); and the CBJ is providing a match of $10,000 (3.125% of total project cost). This ordinance appropriates the FAA and DOT/PF funds.

The CBJ match is Alaska Department of Administration (DOA) Grant No. 8/94-014. A transfer request will be prepared for the meeting of April 15, 1996 to transfer the DOA funds into the project.

I recommend that this ordinance be adopted.

8. Ordinance No. 96-12

Ordinance No. 9612 makes minor changes to Title 19, Building Regulations. Several of the changes are at the suggestion of the Alaska Committee's subcommittee dealing with housing availability and the Juneau Homebuilders' Association. All the changes are in the spirit of making the permitting process less burdensome for the applicant. These changes include:

require building permit applicants to declare whether they are an ownerbuilder or to provide the name of a licensed contractor who will be doing the work. This is intended to help discourage unlicensed contractors. allow the building official to waive some of the requirements for early start permit authorizations when there is good cause to do so.

extend the length of time that a permit may be inactive, from 180 days to one year.

allow a reduced plan review fee for duplicate designs of identical buildings and for projects which have been reviewed at the applicant's expense by a private plan reviewer.

These changes were reviewed by the Building Code Advisory Committee on April 2, 1996 and recommended for approval.

I recommend that this ordinance be adopted.

9. Ordinance No. 96-14

This ordinance authorizes the execution of the lease of approximately 23,925 square feet of CBJ tidelands adjacent to the Seadrome Building to Cultural Preservation Inc. It is added to an existing lease to make one lease encompassing a total of approximately 27,123 square feet.

The purpose of the proposed 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 pulloff area, landscaping and construction of the dock. Future plans could include replacement of the Seadrome Building with a hotel. A description of the project is included in your packets.

As owner of the uplands, Goldbelt has certain rights of access across CBJ tidelands. However, in order to construct improvements on the tidelands, Cultural Preservation Inc. must first obtain a lease from the CBJ. The Attorney has advised that he will inquire into any Public Trust Doctrine implications of this lease, and will report to the Assembly at the public hearing.

I recommend that this ordinance be adopted.

10. Ordinance No. 96-15

The senior citizen rebate program concept was originally approved by the Assembly Finance Committee in the spring of 1994, as consistent with the philosophy of tax equity upon which our sales tax ordinance is built. While public policy supports tax breaks for senior citizens, it is important to realize that when current senior exemptions for property and sales tax and waivers of transit fees are totaled, that it is equal to 1.08 mils of property tax for all other city and borough residents. Under the current system, taxes on all purchases, including luxury items, are exempted. In 1994 the Finance Committee endorsed the rebate approach as a fair and equitable means of compensating seniors for tax on purchases of necessities only. The Commission on Aging also endorsed the rebate concept. The discussion paper from the Commission is included in your packet.

This proposal was put on hold pending the outcome of a ballot proposition in October 1994. The issue was brought back up in the spring of 1995 as part of the FY96 budget process. The direction from the Assembly Finance Committee was to develop a program which would rebate to seniors an amount equivalent to the sales taxes paid on necessities, plus an amount for income taxes which would be incurred on the distribution. The rebate payment would be in lieu of the current senior sales tax exemption. In addition, the rebate would only apply to residents living in the community. Thus, the rebate program would narrow the current exemption, which is available to all state residents.

As proposed, the senior citizen exemption card would no longer be valid after June 30, 1996. Starting July 1, 1996, qualifying senior citizens would receive a rebate equivalent to the amount of sales taxes paid on necessities plus income tax impacts. The rebates would be paid annually starting in January. The filing and payment dates were chosen as the best logistical periods for the sales tax office. In addition, the payment date of January was chosen as a halfway point in the year to balance the senior sales tax collections with remittances.

During FY95, merchants reported exempting a total of $591,700 in seniors citizens sales taxes. In addition, the CBJ exempted another $24,000 in services provided directly to seniors (wastewater, water, harbors, etc). We estimate that there are between 1,700 and 1,900 local senior citizens using the exemption cards. This amount excludes an estimated 100 senior citizens who are not residents of the CBJ also holding and using the exemption cards.

The senior citizen sales tax exemption process continues to be a significant workload and operational issue for merchants. Merchants are required to obtain the exemption information from the senior at the point of sale, summarize the data and report it on their quarterly filings. Last year we estimated that there were 500,000 to 600,000 senior citizen exemption transactions each year. In addition, we continue to receive comments and questions regarding the use and what appears to be misuse of the exemption card. There is no question that some merchants monitor the application of the exemption closer than others.

We have calculated the rebate on necessities and recommend an amount of $230 plus an additional $40 to compensate for the federal income tax impacts. Depending on the number of seniors who apply for the program, we estimate the amount necessary to fully fund the rebate program is between $459,000 and $513,000. In your packet is a detailed explanation of how the rebate amount has been calculated. The methodology used by staff is supported by state and federal public assistance agencies, and will not jeopardize those sources of income for participating seniors. Please note that the rebate amount is not part of the ordinance; rather, it is a calculation which would be adopted annually by the Assembly as part of the budget.

The Assembly Finance Committee approved this ordinance and recommended that it be forwarded to the Assembly.

I recommend that this ordinance be adopted.

UNFINISHED BUSINESS:

NEW BUSINESS

: 1. Liquor License Renewal: American Legion Post #4 the Dugout

On April 2, 1996, the Assembly Human Resources Committee considered the 1996 liquor license renewal application for American Legion Post #4 Dugout. The Human Resources Committee recommended that the Assembly protest the renewal of this license application due solely to delinquent taxes and other fees and charges owed the CBJ. These are set out in the April 4 letter from the CBJ Clerk to Commander Neil Arnold of American Legion Post #4, owners of the "Dugout" beverage dispensary liquor license. (A copy of the letter is included in the packet). As of April 9, 1996, the total amount of delinquent taxes and other charges owed the CBJ is $9,931.85 plus the additional missing sales tax returns with appropriate taxes owed for the period of December 1994 through December 1995.

The CBJ code requires that the Assembly now hold an "abbreviated informal hearing" on the renewal application. At the conclusion of the hearing, the Assembly should make a decision on whether to protest the application. Your packet contains a memorandum from the Attorney describing these procedures.

I concur with the Assembly's Human Resources Committee's decision to protest American Legion Post #4, owners of the "Dugout," liquor license renewal application.

2. Capital School 1% For Art Committee

The 1% for Art for Capital School Park Committee was formed in July, 1995, for the selection of artwork for the Capital School Neighborhood. The members of the committee are: Bridget Smith, Jeff Wilson, Terry Cramer, Kristi West, Cheryl Eldemar, and Wendy Wolfe.

In January, the committee put out a Request for Proposal to assist in selecting an appropriate piece of artwork for the park.

The 1% for Art Committee for Capital School Park met on Thursday, April 11, 1996 and made a final decision for artwork at the park. The final proposal is included in this packet.

The committee requests approval from the Assembly on their recommendation for this project.

ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

1. Scheduling Hearing on Resolution 1813, the Confirmation of the Assessment Roll for Local Improvement District No. 72

The assessment roll for Local Improvement District No. 72 has been prepared and is ready for a hearing at which the Assembly, sitting as a Board of Equalization, may hear objections from the affected property owners and thereafter confirm, set aside, or modify the rolls by resolution. The Assembly should now set a date for hearing on the resolution so that notice may be mailed to the property owners.

I recommend that the Assembly by motion set a hearing for Monday, May 20, 1996.

B. Manager's Report - Information Item:

C. Attorney's Report:

DRP:dmh Manager’s Report - Regular Mtg. No. 96-12 April 15, 1996


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