CBJ Manager's Reports February, 1996


  • February 5, 1996

  • February 12, 1996


    CBJ Manager's Report -- February 5, 1996

    TO: Mayor and Assembly
    DATE: February 5, 1996
    FROM: David R. Palmer, City and Borough Manager
    SUBJECT: Manager's Report - Regular Mtg. No. 96-03

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    SPECIAL ORDER OF BUSINESS:

    CONSENT AGENDA:

    A.Ordinances for Introduction:

    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 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.

    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 approved that the refund be transferred by the Assembly to the Energy efficiency CIP fund (374-30)

    . 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.

    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 square foot 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. A trans- fer of $472,000 will be considered at the February12, 1996 meeting, to complete the street maintenance share of the project.

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

    After this ordinance is adopted, the Water Utility unrestricted cash balance will be $2,577,600, and the Sewer Utility unrestricted cash balance will be $1,007,000. The Waste Management Utility fund balance will be $36,069. 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.

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

    B. Resolutions:

    1. Resolution No. 1803

    This resolution is a statement of the housing policy of the City and Borough of Juneau. Housing is one of the preeminent issues of the community and requires ongoing attention and solutions from local government to ensure that an adequate supply of all types of housing is available to Juneau citizens. The Assembly is herein establishing its continuing commitment to housing as a priority of the city and borough and is directing the city manager to develop a comprehensive housing strategy. This strategy will include market financing for multi-family projects, establishing a housing coordinator, a Planning Commission review of land use density and land availability, a review of building codes, fee waivers, bonding, and tax issues; creating a revolving housing loan fund, and providing comprehensive guidance and information to housing developers.

    This resolution was reviewed and recommended for adoption by the Lands Committee at its January 25, 1996 meeting.

    This resolution will have no economic impact at this time.

    I recommend that this resolution be adopted.

    2. Resolution No. 1804

    This resolution establishes a Youth Activities Board to disburse funds annually among local organizations providing activties to youth. Funding will be available from the temporary 3% sales tax, consistent with Ordinance 95-28. This ordinance describes the intent of the Assembly with regard to the use of the tax. That tax will be in effect July 1, 1997 (FY98). The Board will make recommendations to the Assembly Finance Committee each year as part of the budget process.

    The Finance Committee expressed the intent to fund the program at 50% in Fiscal Year 1997, at the amount of $225,000. The resolution sets out the composition and purposes of the Board, and describes the methods the Board will use in e- valuatiing proposals for funding. Recognizing basic differences between school and community based programs which preclude applying the same criteria to each, the resolution includes a stipulation that $100,000 be set aside for the school district. It is anticipated that amount will change when the program is fully funded.

    The Finance Committee expects that the Youth Activities Board will have recommendations for amendments to this resolution after a year’s experience with the program.

    Amendments made by the Finance Committee at its January 31 meeting are reflected on page 2, line 9; page 2, lines 11-12; page 4, lines 3-9; page 5, line 1; and page 5, lines 12-13.

    The Finance Committee has recommended that this resolution be forwarded to the Assembly for approval.

    I recommend that this resolution be adopted.

    C. Bid Awards:

    1. Contract No. E95-319: Cruiseship Dock Water System

    Bids were opened on the subject project on January 12, 1996. The bid protest period expired at 4:30pm on January 16, 1996. Results of that bid opening are as follows:

    		RESPONSIVE	                                        TOTAL BID 
    
    
     
    
    
    		Gastineau Contractors, Inc.				$123,650 
    
    
    		Trucano Construction					$142,800 
    
    
    		Sea Coast Construction					$157,942 
    
    
    		Arete Construction Corporation				$158,650 
    
    
     
    
    
    		Engineer’s Estimate	              			$ 99,000 

    The project consists of installation of approximately 1,050 linear feet of 6-inch restrained joint ductile iron water pipe and 210 linear feet of 3-inch galvanized steel water pipe to be suspended underneath the cruiseship dock, along with eight water services and appurtenant work required for a complete water system. The source of funds for this project is Port Bonds proceeds.

    I recommend award of this project to Gastineau Contractors, Inc. in the amount bid, for a total award of $123,650.00.

    2. Contract No. E96-152: Coleman Street - Judy Lane Reconstruction

    Bids were opened on the subject project on January 19, 1996. The bid protest period expired at 4:30pm on January 22, 1996. Results of that bid opening are as follows:

     
    
    
                            RESPONSIVE	         BASE BID 	ADD. ALT.	TOTAL BID 
    
    
     
    
    
    		Arete Construction Corp.        $312,596	$14,470	       $327,066 
    
    
    		Glacier State Contractors, Inc.	$327,346	$17,100        $344,446 
    
    
    		Gastineau Contractors, Inc.	$328,690	$25,325	       $354,015 
    
    
    		 
    
    
                    Engineer’s Estimate		$293,508	$14,325	       $307,833 

    The project consists of replacing water, sewer and storm drain utilities; service reconnects; concrete sidewalk; curb and gutter; two concrete retaining walls; asphalt and concrete removal; roadway subgrade improvements; paving; clearing and grubbing; relocation of electrical conductors and miscellaneous related work.

    I recommend award of this project to Arete Construction Corporation in the amount bid for the Base Bid and the Additive Alternate ( a retaining wall) for a total award of $327,066.00.

    D. Transfer Requests:

    1. Transfer No. T-586:

    This transfer request of $25,000 is to cover higher than anticipated bid costs for the Municipal Wharves Water System Upgrade. This action will assure completion of the more important water system upgrade; the Shore Power Upgrade will be put on hold until other funds can be found to complete, since the Engineer’s Estimate came in higher than expected.

    After this transfer request is approved, funds available balances will be as follows:

    
    
    Project Number/		Project Budget    Funds		 
    
    
    Name			After Transfer    Available	Status 
    
    
     
    
    
    H354-58/ 
    
    
    Intermediate Vessel Float 
    
    
    Shore Power Upgrade	     $ 25,000	 $ 4,635         on hold 
    
    
     
    
    
    H354-59/ 
    
    
    Municipal Wharves 
    
    
    Water Systems Upgrade	      150,026	  40,106	 on-going 
    I recommend that this transfer be approved.

    2. Transfer No. T-587:

    This new project funds improvements adjacent to the Columbia Lot and includes a covered staging area, sea walk improvements, a contribution to the Fishermen’s Memorial located in the vicinity, lighting and a deadman.

    The project has been approved by the Port Advisory Committee at its meeting of January 26; the Harbor Board will make a recommendation following its meeting of Thursday, February 1. This recommendation will be presented to you as a red folder item at Monday’s meeting.

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

     
    
    
    Project Number/		        Project Budget	         Funds 
    
    
    Name				After Transfer	         Available	Status 
    
    
     
    
    
    H02-91/ 
    
    
    Port Facility Improvements	$6,036,000		$1,227,386	to be closed once 
    
    
    Port Bonds 								spent 
    
    
     
    
    
     
    
    
     
    
    
    H354-61/ 
    
    
    Cruiseship Passenger 
    
    
    Pedestrian Improvements	          455,000	           455,000     new project 

    I recommend that this transfer be approved.

    E. Liquor License Renewals:

    
    
     
    
    
    		1.	Alaska Cache Liquor			6.	George’s Ribeye 
    
    
    		2.	Alaskan Brewing& Bottling Co.	        7.	Gold Creek Salmon Bake 
    
    
    		3.	Alaskan Hotel				8.	Juneau Airport Travelodge 
    
    
    		4.	Breakwater				9.	The Penthouse 
    
    
    		5.	Duck Creek Market			10.	Triangle Club 

    The above mentioned liquor licenses have been reviewed by the Police, Fire, Com- munity Development, and Finance Departments and these departments have no objections to the renewal of the liquor licenses for 1996 and 1997. The Assembly Human Resources Committee met on January 22 and adopted a motion recommending the Assembly waive its right to protest the renewal requests.

    I recommend that the Assembly adopt the Human Resources Committee recommendation.

    F. Liquor License Transfer:

    1. THE NEW PENTHOUSE:

    The Penthouse Inc; Ophelia Pajinag/President; Ron Burns/Vice President; Gilles Mesdag/Sec'y-Treas.; 175 S. Franklin; Mail; POB 33426; Juneau. Transferred from; Senate Partnership Inc; The Penthouse; same location.

    The liquor license for the Penthouse, Inc. has been reviewed by the Police, Fire, Community Development, and Finance Departments and these departments have no objections to the transfer of ownership of the liquor licenses for 1996 and 1997.

    The Assembly Human Resources Committee met on January 22 and adopted a motion recommending the Assembly waive its right to protest the transfer of ownership.

    I recommend that the Assembly adopt the Human Resources Committee recommendation.

    G. Certificates of Public Convenience & Necessity:

    1. New Application: Crew International Tours

    Raul & Mireya Cordero, dba Crew International Tours, has applied for a Certificate of Public Convenience & Necessity Permit for one for-hire vehicle. The Finance Department has reviewed the application and has no objections to the issuance of this certificate.

    I recommend that the Assembly approve the Certificate of Public Convenience & Necessity Permit for one for-hire vehicle for Crew International Tours.

    2. Transfer of Ownership: Capital Cab, Inc.

    Hugh Dilbeck, dba Capital Cab, Inc., has filed a transfer of ownership application for a Certificate of Public Convenience & Necessity Permit for 35 taxicabs. The Finance Department has reviewed the application and has not objections to the transfer of ownership for capital cab.

    I recommend that the Assembly approve the transfer of ownership application for a Certificate of Public Convenience & Necessity for Capital Cab, Inc.

    ORDINANCES FOR PUBLIC HEARING:

    1. Ordinance No. 95-11 (AC)

    This ordinance will appropriate $500,000 for the purpose of funding a Legislative/Seasonal Housing Program which was approved by the Assembly by motion at its meeting of January 8, 1996. The program is intended to encourage private developers to construct housing in the downtown area which can be rented to legislators and legislative staff from January to May each year. The housing units could be rented the remainder of the year to serve the needs of other seasonal workers. The basic concept of the program is to provide loans up to $10,000 per unit of housing with payments deferred the first 10 years and the loan paid back over the second 10 years. The loans are at zero interest. During this time, the developers will be required to make the units available to legislators and legislative staff on a priority basis. This is a housing stimulation program for a specific need where the CBJ funds will be leveraged along with other financing to fund a project or perhaps several projects. It is expected that the CBJ will enter into a lending participation agreement with the bank or whatever financial entity is providing the primary financing. Developers will also be required to put in at least 10 percent equity in the form of cash or land.

    A RFP process will be used to solicit proposals from private developers. The selection of projects will be based on the maximum number of housing units created per dollar of CBJ contribution. Staff will also work closely with the banks or other financial institutions providing the primary financing to ensure that the projects are financially sound. Developers will be given 120 days from the notice of selection to demonstrate a commitment of permanent financing.

    A description of the program guidelines is attached for your information. After this ordinance is adopted, the Lands Fund balance will be $1,200,000.

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

    I recommend that this ordinance be adopted.

    2. Ordinance No. 95-11 (AD)

    The Alaska State Department of Transportation and Public Facilities has awarded the City & Borough of Juneau a grant to execute a traffic/transportation study of Douglas Highway Corridor (a draft project scope is included in your packet). The grant amount is $40,000 with a CBJ match of $3,612. The net grant is $36,388. Community Development staff time is budgeted in the FY96 and FY97 budget and will satisfy the CBJ match requirements. The grant period of performance ends on September 30, 1996.

    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. Proposed Decision in BBS Enterprises Appeal (CU-50-95)

    On November 20, 1995, the Assembly sitting in its quasi-judicial capacity, heard oral argument in the BBS Enterprises appeal, which concerned joint use parking between Carr’s and a proposed restaurant near the supermarket. At the conclusion of oral argument, the Assembly announced its findings, voted unanimously to deny the appeal, and directed the Attorney to draft a proposed decision in accord with the findings. The draft was completed and on January 22, 1996, was circulated to the parties for comment as required by CBJ 01.50.140 (b) (3). The proposed decision, incorporating amendments suggested by the parties, is now before the body for action. The Assembly may adopt, amend, or reject the proposed decision.

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

    2. Proposed Decision in Clarke Damon Appeal (SV-05-05)

    On December 18, 1995, the Assembly sitting in its quasi-judicial capacity, heard oral argument in the Clarke Damon appeal, which concerned vacation of a portion of E Street in Douglas to Mr. and Mrs. Ammon McDole. At the conclusion of oral argument, the Assembly announced its findings, voted to deny the appeal, and directed the Attorney to draft a proposed decision in accord with the findings. The draft was completed and on January 30, 1996, was circulated to the parties for comment as required by CBJ 01.50.140(b)(3). The proposed decision, together with any comments received to date, is now before the body for action. The Assembly may adopt, amend, or reject the proposed decision.

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

    NEW BUSINESS:

    ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

    A. Manager's Report - Action Item:

    B. Manager's Report - Information Item:

    1. Status of Community Development Director Assessment Process Included in your packet is information concerning the five finalists selected for the Community Development Department Director position.

    C. Attorney's Report:

    DRP:dmh

    Manager's Report - Regular Mtg. No. 96-03
    February 5, 1996

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