CBJ Manager's Report--January 22, 1996

TO: Mayor and Assembly DATE: January 22, 1996

FROM: David R. Palmer, City and Borough Manager

SUBJECT: Manager's Report - Regular Mtg. No. 96-02


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SPECIAL ORDER OF BUSINESS: CONSENT AGENDA:

A. Ordinances for Introduction:

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.

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

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.

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

B. Resolutions:

1. Resolution No. 1801 It is necessary that the Assembly adopt an update for the plan for the implementation of the complementary paratransit service requirements of the Americans with Disabilities Act (ADA). The City and Borough of Juneau is currently in compliance with the requirements of the ADA. A one-page update has been prepared as directed by the Federal Transit Administration and is included in your packet. Also included in your packet is a letter from Mr. Dean as Chair of the City and Borough of Juneau ADA Committee indicating that the committee reviewed and recommended adoption of the plan update. I recommend that this resolution be adopted.

2. Resolution No. 1802

This resolution expresses the Assembly's support for the Alaska Children's Trust. Your packet includes a letter concerning the resolution from Nila Rinehart, Special Assistant for the Alaska Children's Cabinet.

At the time this packet was prepared, this resolution was scheduled for consideration by the Assembly Human Resources Committee at its noon meeting on Monday, January 22.

Assuming that the Human Resources Committee recommendation is in favor, I recommend that this resolution be adopted.

C. Transfer Requests:

1. Transfer No. T-583 This transfer of $150,000 is necessary to meet increased construction costs due to additional subexcavation needed to meet base requirements for the Mountainside Estates street reconstruction project. This will delay the Tournure Street Sidewalk/Drainage project. There will be sufficient funds available to do the project design.

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

Project Number/	Project Budget	Funds 

Name			After Transfer		Available			Status 

 

R412-38/ 

Tournure Street 

Sidewalk/Drainage	$  105,000		$  100,351			on-

going 

 

R412-42/ 

Mountainside 

Estates Recon. 	1,400,000		 1,284,453			on-

going

I recommend that this transfer be approved.

2. Transfer No. T-584

The Alder, Spruce, Hemlock CIP was closed out before the Contractor turned in the DBE Bonus claim paperwork. This transfer of $6,900 will cover that bonus; the project will then be closed out.

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

Project Number/	Project Budget	Funds 

Name			After Transfer		Available			Status 

 

R412-47/ 

Retaining Wall 

Reconstruction	$   76,800		$ 54,360			on-

going 

 

R412-30/ 





		Alder, Hemlock, 

Spruce, Seater  

Recon.		   727,121		     6,900			complete

I recommend that this transfer be approved.

3. Transfer No. T-585

This transfer of $10,000 will be used to cover award contract for the energy efficient upgrades at Centennial Hall. The use of these funds has been reviewed and approved by the Energy Advisory Committee and the Parks and Recreation Department. After this transfer request is approved, funds available balance will be as follows:
Project Number/	Project Budget	Funds 

Name			After Transfer		Available			Status 

 

D374-30/ 

Energy Efficiency 

Improvements	$128,590		$84,124			on-going 

 

E486-33/ 

Centennial Hall 

Energy Efficient 

Control System	  118,800		  89,390			on-

going

I recommend that this transfer be approved.

D. Assembly Contingency Report:

1. October - December, 1995 The report included in your packet shows the quarterly expenditures from the Assembly's budget, contingency accounts, for the period October through December, 1995. ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 96-01

This ordinance authorizes an equal-value land exchange between the City and Ms. Vivian Kirkevold. The parcels of land are located in the vicinity of Auke Bay Fire Station. The exchange will benefit Ms. Kirkevold by providing her a second access route into her RV park and allow her to expand the park. The exchange will benefit the City by providing additional space to accommodate future expansion of the fire station.

The negotiation of the land trade has been completed pursuant to Assembly direction of November 6, 1995. The Planning Commission approved the concept of the land trade at its meeting of November 13, 1995.

The land exchange is considered equal value, despite the slight difference in square footage between the two parcels. This is due to the fact that the land the City is conveying to Ms. Kirkevold has a higher unit value because of its adjacency to Glacier Highway.

In addition to taking action on this ordinance, the Assembly is requested to review the "Agreement for the Trade of Land" document included in your packets. The ordinance and motion are separate but related actions. The ordinance authorizes the broader terms of the land exchange. The motion will approve the specific terms and conditions of the exchange agreement.

This ordinance will have no economic impact.

I recommend that this ordinance adopted. Upon adoption of the ordinance, I recommend that the Assembly approve, by motion, the "Agreement for Trade of Land".

2. Ordinance No. 96-02

This ordinance provides that voting on introduction of an ordinance is exempt from the conflict of interest code. This change will end the inefficient practice of removing items from the consent agenda so that a member with a conflict can step down. The ordinance will also adopt the state practice of granting waivers in appropriate cases to former municipal officers who wish to seek post-CBJ employment involving matters they worked on while in municipal service.

A conservative reading of the Conflict of Interest Code requires Assemblymembers with a personal or financial interest to avoid voting on introduction of an ordinance. Introduction of an ordinance is usually a part of the consent agenda, so the business of avoiding a conflict requires that that item be removed from the consent agenda so that the member can step down while the ordinance is introduced. This takes several minutes and accomplishes little of significance: introduction of an ordinance is largely a ministerial matter that usually poses no serious ethical issues.

The Conflict of Interest Code prohibits former CBJ officers, from advising any person regarding a matter that the officer worked on while in municipal service. The term "officer" includes employees, board members, and elected officials. This code provision can make it difficult for former officers, especially those in senior positions, to find employment after leaving the city. This hardship is often necessary in order to protect the public from abuses of trust by municipal officers. In some cases, however, the hardship serves no useful purpose.

This provision of our Conflict of Interest Code is based on AS 32.52.180, which is part of The Alaska Executive Ethics Act. The language establishing the limitation on former officers is substantially similar in the statute and the ordinance, but the statute includes a waiver provision which is not found in the ordinance. The waiver language is found at AS 32.52.180(c) and reads as follows:

(c) The head of an agency may waive application of (a) of this section after determining that representation by a former public officer is not adverse to the public interest. The waiver must be in writing and a copy of the waiver must be provided to the attorney general for approval or disapproval.

This ordinance would establish a similar waiver procedure in the CBJ code, and would add several criteria for deciding when a waiver is "not adverse to the public interest."

This ordinance will have no economic impact.

I recommend that this ordinance be adopted.

3. Ordinance No. 96-04

This ordinance authorizes the manager to convey a 0.46 acre portion of CBJ land located in North Tee Harbor to Tom Kocyba for inclusion in a subdivision development which Mr. Kocyba has been working on for many years.

Mr. Kocyba intends to subdivide a 5 acre portion of U.S.S. 377 which he owns into six lots. As part of this development, 0.46 acres of CBJ land within Lot 2, U.S.S. 3764 is needed. Additionally, a new right-of-way from Cohen Drive needs to be dedicated to provide for access which better conforms to the topography. The existing right-of-way was part of a paper plat which is too steep to construct.

The sale price of the property is $13,800 which is the fair market value of the land as determined by the Assessor based on a unit value of $30,000 per acre. Payment would be in a lump sum at the time of closing.

The Planning Commission approved the preliminary plat for the subdivision and the sale of land at its June 13, 1995 meeting. The Assembly Lands Committee approved the sale of land at its June 28, 1995 meeting.

This land sale will culminate many years of effort to allow the Kocyba property to be subdivided. The background and history of the project is contained in the attached report to the Planning Commission regarding the subdivision.

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

I recommend that this ordinance be adopted.

UNFINISHED BUSINESS: NEW BUSINESS: ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Item:

B. Manager's Report - Information Items:

1. Status Report - Golf Course The Assembly authorized negotiations with Waterfront Park Hotel Corporation (now called Waterfront Park Corporation (WPC) by Ordinance No. 95-14 on May 1, 1995. WPC was selected via competitive proposals to develop an 18 hole golf course and 75 units of housing on approximately 470 acres of CBJ land on North Douglas Island.

Since authorizing negotiations, CBJ and Goldbelt, Inc. have entered into a joint agreement for a master planning effort on lands including the area proposed for the golf course. Planning efforts will be undertaken which assumes development of the golf course and housing consistent with the proposal submitted by WPHC in February, 1995.

Negotiations to develop a purchase agreement have been ongoing, but no conclusion has been reached. WPC insists on maintaining anonymity of its lenders. CBJ proposed the use of confidential intermediaries, WPC proposed to disclose "cash in the bank" as a practical method of proving availability of funds. WPC's latest proposal is to show a "deposit" of $500,000 as a draw against a line of credit sufficient to complete the project.

The schedule initially proposed by WPC for project development has not been followed. Contrary to the statement of the initial proposal that WPHC had "funding of $8,536,000 for an 18 hole course and 4000 square foot clubhouse", WPC has not proceeded with the field work necessary to develop final plans, layout, or design. WPC is presently awaiting its first draw of funds which will be used to pay for the field work necessary to initiate design. We have agreed that if the initial funding is not available by the end of February, we will terminate discussions and WPC will conclude that the project will not go forward.

WPC states that initial wetlands inventory has precipitated substantial changes in the scope of the project. WPC concludes that a 27 hole course and 160 units of housing are required to make the project feasible. This represents a substantial change from the initial 18 hold course and 75 housing units. Rather than deal with the impact of such a change of scope, I have elected to focus on WPC's ability to prove up on financing. If they have financing, then they will have a preliminary design to present to the Planning Commission and Assembly, which can address the scope of the project. Fairly specific property boundaries should be established at that time.

As of January 16, 1996, there is little demonstrable progress to report to the Assembly. WPC appears to be engaged in negotiations with a source of funding, however, nothing has been presented that can be considered a commitment for funding. It is clear that the initial financing referenced in February, 1995 was not available.

If the $500,000 draw against project funding is available before the end of February (it was promised for the first week in January), then WPC will be able to proceed with field work. Without the draw, it seems clear that the project will not move ahead.

My recommendation is to set February 29, 1996 as the drop dead date for the project. If consultants are not under contract by that date to complete field work, design, and layout, WPC should be advised that the property is no longer available. If field work is commenced, WPC should be allowed to continue with preliminary work, but conceptual design should be reviewed by the Planning Commission and Assembly even before field work is completed to determine whether the size and scope of the project as now envisioned is acceptable.

If WPC is allowed to proceed (that is, if the $500,000 draw is available), it should be required to provide unequivocal proof of funding for the project.

2. Eaglecrest - Refund Policy

Your packet includes an update regarding the Eaglecrest Ski Pass Credit/Refund policy approved by the Eaglecrest Board Finance Committee.

3. City Manager's Fourth Quarter Report to the Assembly Your packet contains the manager's fourth quarter report to the Assembly, for the period October - December, 1995.

C. Attorney's Report:

1, Law Department's Fourth Quarter Report to the Assembly

Your packet contains the Law Department's fourth quarter report to the Assembly, for the period October - December, 1995.

DRP:dmh Manager's Report - Regular Mtg. No. 96-02
January 22, 1996


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