AGENDA/MANAGER'S REPORT

THE CITY AND BOROUGH OF JUNEAU, ALASKA

Monday, October 20, 1997 - 7:00 PM

Assembly Chambers - Municipal Building

Meeting No. 97-35

Submitted by:

David R. Palmer


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I. FLAG SALUTE

II. INVOCATION

III. ROLL CALL

IV. APPROVAL OF MINUTES

1. 09/15/97 - Regular Mtg. No. 97-33

SPECIAL ORDERS OF BUSINESS:

1. Swearing in of Mayor and Assemblymembers:

Dennis Egan - Mayor

Ken Koelsch - Assemblymember District No. 1

Dwight Perkins - Assemblymember District No. 2

2. Ordinance No. 97-33

An Ordinance Creating Local Improvement District No. 84 of the City and Borough; Finding That Such Local Improvement District is in the Public Interest; Setting the Boundaries of Such Local Improvement District; Providing for the Improvements to Be Acquired, Constructed and Installed Consisting of a Gravity Sewer Main and Laterals Serving the Property Owners Within the Trafalgar Avenue L.I.D. Boundary. This Project is Estimated to Cost $408,753.00 of Which Cost an Estimated $139,200.00 is to Be Borne by Properties Specially Benefitted and an Estimated $269,553.00 by the City and Borough; Directing That the Work Be Done; That Any Land Necessary or Useful Be Acquired and That Eminent Domain Including Use of Declaration of Taking is Authorized; Creating Special Assessment Fund No. 84; and Finding That Special Benefit to the Property Within the Described District Exists and That Each Lot or Tract Within the District Will Be Specially Benefitted in Proportion to the Amount Assessed. Presented by the Manager.

This ordinance creates LID No. 84 for the purpose of constructing and installing a gravity sewer main and laterals serving the property owners within the Trafalgar Avenue LID boundary. The proposed assessment per lot is $4,800.00. The CBJ pays $9,295 per lot.

An informal poll was conducted of the property owners in this LID area. Out of a total of 29, 18 responses were received. 11 responded in favor, with 7 opposed.

After the introduction of this ordinance on September 8, 1997, notices were published in the newspaper and sent to residents in the LID area so they would be aware that they would have this opportunity to make their views known to the Assembly.

At this hearing the Assembly shall hear objections from any owner affected by the formation of the district and may make changes in the proposed boundaries or in the plans for the proposed improvements. The Assembly may not change the boundaries of the district to include property not previously included without first giving new notice to owners in the manner and form and within the time provided for the original notice.

I recommend that this ordinance be adopted.

V. MANAGER'S REQUEST FOR AGENDA CHANGES

VI. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS. (Not to exceed a total of 20 minutes nor more than 5 minutes for any individual.)

VII. CONSENT AGENDA

The Consent Agenda includes routine items of business which may not require separate discussion. When the Mayor calls for public comment on the Consent Agenda, you may raise your hand and the Mayor will recognize you asking which item(s) you wish to have removed from the Consent Agenda for separate discussion and action. Following the removal of any item from the Consent Agenda, the Assembly votes on the remaining items in one motion. (Ordinances for introduction generally may not be removed from the Consent Agenda.)

All items that are removed from the Consent Agenda will follow the format of: Administrative or Committee Report, Public Hearing/Participation and Assembly Action.

A. Ordinances for Introduction:

B. Resolutions:

1. Resolution No. 1894

A Resolution Authorizing the Manager to Donate Rock to the Alaska Department of Transportation and Public Facilities for the Auke Bay Ferry Terminal Project. Presented by the Manager.

This resolution authorizes the donation of rock to the State of Alaska. The State presently has a contract for the expansion of the Auke Bay Ferry Terminal parking lot. The source of rock which was identified for this project and approved by the Planning Commission is a strip along the right of way of the existing rock cut at Stabler Point. However, removal of this rock in a narrow strip has proved to be difficult and poses problems for use of the Glacier Highway. As a result, the State asked the Planning Commission for a modification of the Conditional Use Permit for the rock removal which would allow a more compact rock cut area, located on CBJ land adjacent to the right of way. At its October 14 meeting, the Planning Commission granted approval. The State is asking that this rock be donated to the project by the CBJ. The estimated amount of rock is 110,000 cubic yards, with the value of the donation approximately $110,000.

The donation of rock to the State is consistent with other recent projects where CBJ has participated through the donation of land for right of way or provided materials. The Auke Rec Bypass and the Thane Road projects are two recent examples.

The Lands Committee, at its October 8 meeting, recommended forwarding this resolution to the Assembly.

I recommend that this resolution be adopted.

2. Resolution No. 1895

A Resolution Authorizing the Manager to Accept the Conveyance of 8.2 Acres of Land at the Airport From the Federal Aviation Administration. Presented by the Manager.

This resolution authorizes the conveyance of 8.2 acres of federal land at the airport to the CBJ. This property is presently occupied by a portion of the airport terminal and the parking lot. The property has previously been under a lease from the FAA.

The deed will contain a number of restrictions which basically limit the use of this property for airport purposes, prohibits exclusive use of the airport, and allows federal government use in time of national emergency. The property will be conveyed to the CBJ at no cost.

An environmental audit of this property was performed by a consultant to the FAA. The report indicates that the property was formerly used by at least four different buildings since World War II. These include a VHF Transmitter Facility, an Emergency Generator Building, an ESSA Building, and a Pan Am Tug Building. Not much is known about these uses or buildings because the buildings were either removed or demolished before detailed environmental records were kept. The conclusion of the environmental audit is that overall environmental concerns at this site are low.

The Airport Board has determined it is in the public interest for the CBJ to own and control the land used for airport purposes and is recommending that the CBJ accept the deed of land from the FAA. The Lands Committee, at its October 8 meeting, recommended forwarding this resolution to the Assembly.

I recommend that this resolution be adopted.

3. Resolution No. 1896

A Resolution Setting Forth the Capital Improvement Projects Requested by the City and Borough of Juneau for Funding in Fiscal Year 1999 Under the Municipal Capital Project Matching Grant Program Administered by the State of Alaska Pursuant to AS 37.06. Presented by the Manager.

This resolution lists the City and Borough of Juneau's capital project priorities for funding in Fiscal Year 1999 through the State of Alaska's Municipal Capital Projects Matching Grant Program. Juneau expects to receive approximately $513,172 in state funding for capital projects from this grant program in FY99, subject to a 30 percent local match requirement. The city's application was submitted to the State Department of Administration, Division of Administrative Services by the October 1, 1997, deadline and has been accepted. A prioritized list of capital projects and the Assembly resolution must also be submitted. This list was reviewed and approved by the Public Works and Facilities Committee at its meeting of September 24, 1997.

I recommend that this resolution be adopted and submitted to the State of Alaska Department of Administration.

4. Resolution No. 1898

A Resolution Authorizing the Manager to Submit to the State of Alaska an Application for a Federal Grant to Develop a Historic Preservation Section on the City and Borough Website. Presented by the Manager.

The proposed project would develop an Internet Webpage to gather and disseminate historic preservation information. The Webpage would allow the public to reach historic information currently only available in limited hard copy volumes and to submit historic information, including "oral histories" for inclusion in the body of knowledge about Juneau's history. This would be the first such Webpage in the state further supporting Juneau's leading role in historic preservation.

The Historic Resources Advisory Committee identified this project as the number one priority for the upcoming round of historic preservation grants.

The work of the project will be done by Community Development Department staff with assistance from the Juneau Library, Geographic Information System, and Management Information System staffs. Each departments has budgeted amounts to assist with development of electronic media through the world wide web. The staff time from these departments will be used for grant match. The federal funds will be used to pay for the CDD staff involvement. CDD staff will manage and administer the grant.

This is a federally funded matching grant (60% Federal, 40% CBJ). CBJ's match will be the staff time devoted to the project from the Library, MIS, and GIS staffs.

Project Budget:

a.	Estimated Total Project Cost:	$ 17,487.00 
b.	Federal Share:(60%)	        $ 10,492.00 
c.	Applicant's Share:(40%)         	$ 6,995.00 

Source of Applicant's Share:

a.	Cash:	                        $ 0 
b.	Donated goods and services:	$ 0 
c.	CBJ In-Kind Services:	 $ 6,995.00 

I recommend that this resolution be adopted.

5. Resolution No. 1899

A Resolution Authorizing the Manager to Submit to the State of Alaska an Application for a Federal Grant to Perform Stabilization Work on Historic Mining Buildings of the Jualpa Mine Camp Historic District Located in Last Chance Basin. Presented by the Manager.

This resolution will authorize a grant which will leverage $680 of CBJ staff time into a $19,750 grant. The project continues stabilization work on the historic buildings of the Alaska Juneau Gold Mining Company located in Last Chance Basin. The buildings are listed on the National Register of Historic Places. Phase I, II and III performed stabilization work to the Compressor Building, Transformer House, and Locomotive Repair Shop. The work is being phased to coincide with available funding sources and the ability of volunteer forces to perform the work.

The proposed project (Phase IV) will include further stabilization work of the Locomotive Repair Shop through repairing or replacing wood siding and trim. In addition, work will be undertaken to stabilize wooden trestles, railroad ties, and track of the Rail System.

The work will be coordinated and performed by volunteers of the Gastineau Channel Historical Society (GCHS). GCHS has performed similar work on the Compressor Building, Transformer House, and Locomotive Repair Shop during Phases I, II, and III of the stabilization efforts. GCHS will arrange for the people, materials and equipment needed for the project. Community Development Department staff will administer the grant but will not perform work on the project.

This project is consistent with the goals and policies of the Juneau Comprehensive Plan, the Last Chance Basin Land Management Plan and the Parks and Recreation Comprehensive Plan. The Historic Resources Advisory Committee has identified this project as the number two priority for this next round of historic preservation grants.

This is a federally funded matching grant (60% Federal, 40% CBJ). CBJ's match will be the volunteer and staff time devoted to the project. Volunteer time is allowed as match based upon the going hourly rate for the type of services performed. The federal monies will be used to purchase materials, supplies, and rent equipment.

Project Budget:

a. Estimated Total Project Cost: $ 19,750.00 
b. Federal Share:(60%)           $ 11,850.00 
c. Applicant's Share:(40%)        $ 7,900.00 

Source of Applicant's Share:

a. Cash:	                                     $ 
b. Donated goods and services (volunteers' time)$ 7,220.00 
c. CBJ In-Kind Services:	                   $ 680.00 

I recommend that this resolution be adopted.

C. Transfer Requests:

1. Transfer No. T-633: Transfers $33,000 from ADA Compliance Fund (CIP D 374-34) to Twin Lakes Fishing Dock (CIP P396-13)

This $33,000 transfer request moves funds from the ADA Fund to the Twin Lakes Dock Project and is a companion to Ordinance 97-17(U). Ordinance 97-17(U) which provides $27,000 in grant funds, is scheduled for public hearing at tonight's meeting. The project, which was approved by the ADA Committee, will construct an accessible fishing dock at Twin Lakes. These additional funds will bring the total project budget to $90,000, which is the estimated cost of the project. The Engineering Department indicated that these additional funds are needed.

After this Transfer Request 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: 
D374-34/
ADA Compliance 
Fund 	                $191,573	  $168,573	$215,000	on-going 
Transferred to: 
P396-13/ 
Twin Lakes Fishing 
Dock	                $ 58,708	  $ 81,708	$ 90,000	on-going 

I recommend that this transfer be approved.

2. Transfer Request No. T-634: Transfers $60,000 from Nancy Street/Tongass Boulevard Reconstruction (CIP R412-53) to Wire Street Flood Damage (CIP R412-56)

The Wire Street project is near completion. Several issues resulted in cost increases, including utility conflicts not depicted on the plans and higher than anticipated cost repairs to Twin Lakes Park have resulted in budget shortfalls. In addition, the change order to add a bus parking lane near the Health & Social Services Building will cost approximately $35,000. This turnout will be used by buses parking to permit riders to safely disembark and view the salmon migrating in Salmon Creek. Currently buses block the bicycle/shoulder lane causing a traffic hazard by forcing bicyclists to veer into the motor vehicle lanes. This project was recommended by the Tourism Working Group.

After this Transfer Request 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: 
R412-53/ 
Nancy Street/Tongass Blvd.
Reconstruction	        $732,600	$672,600	$2,943,500  	on-going 
Transferred to: 
R412-56/Wire Street Flood
Damage	                 $131,952	$191,952	 $619,977	on-going 

I recommend that this transfer be approved.

D. Liquor License Transfers:

1. THE SANDBAR: Sandbar, Inc.; 2525 Industrial Blvd.; MAIL: 9465 Mendenhall Loop Road, Juneau, AK 99801 from: Same DBA, Location, MAIL

2. PIZZERIA ROMA.; R. Fincher, Inc.; #2 Marine Way, Ste #104; MAIL: #2 Marine Way, Ste #104, Juneau, AK 99801 from: Sorrento Restaurant corp.; same DBA & location; MAIL: same

3. ADLERSHIEM LODGE; Thomas Island & Heide Deditius-Island; 34 Mile Veterans Hwy.; MAIL: PO Box 35541 Juneau, AK 99803

The Finance, Fire, Police and Community Development Departments have reviewed the liquor license applications and have no objections to the two year renewals. The Finance Department had reported the Sandbar and Adlershiem Lodge had delinquent taxes due, however, these taxes have been paid in full. The Human Resources Committee met on Monday, October 13, 1997, and adopted motions to recommend the Assembly waive its right to protest the transfer of corporate stock for the Sandbar, the transfer of license to Pizzeria Roma, and the establishment of a new license for Adlershiem Lodge.

I recommend the Assembly adopt the Human Resources Committee recommendation and waive its right to protest the licenses as reported.

VIII. ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 97-40

An Ordinance Amending the Public Finance Code to Clarify the Duties of the External Portfolio Manager. Presented by the Manager.

Administrative or Staff Report

This ordinance will modify the external portfolio management section of the investment code to correct a clerical error; to remove a conflicting redundancy in the duration index;, and to provide flexibility in responding to market changes. The clerical error correction is to insert the word "not" that was inadvertently excluded from the original ordinance. The line being corrected should read as follows-"The external portfolio manager shall not intentionally cause the . . . "

A review of the structure of an externally managed portfolio it was noted that changing market conditions will most likely result in the index number used to control maximum investment risk and duration, changing slightly from the index itself. The Assembly approved in the original ordinance of using the Legman Intermediate Government/Corporate duration number, as the externally managed fund's target maximum risk number, index. In responding to this variation I recommend that we allow the external portfolio manager some management flexibility. Our investment consultants, Callan Associates, have agreed with this recommendation. The proposal also necessitates changes to the investment Policy. The following changes are proposed to the "External Management section 3. Duration":

Duration The external portfolio manager shall ensure that the external portfolio duration does not intentionally exceed the duration of the most recently published Lehman Intermediate Government/Corporate Index (1 to 10 years). It is understood that the Lehman Intermediate Government/Corporate index duration is subject to market fluctuations. The manager may not acquire investments which would knowingly place the portfolio duration greater than the index. If external market changes result in the external portfolio duration exceeding the most recently published index by-

110% or less, then the duration of all new investment acquisitions must be less than the most recently published Lehman Intermediate Government/Corporate Index. The manager will not be required to sell held investments to lower the portfolio duration.

More than 110%, then the manager must immediately take steps to lower the external portfolio duration to within limits of the last published Lehman Intermediate Government/Corporate Index. The manager must within 10 working days, unless written approved to extend this period is acquired from the City and Borough Finance Director, sell held investment sufficient to lower the total external portfolio duration equal to or less than the index.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

2. Ordinance No. 97-41

An Ordinance Amending the Sales Tax Code to Establish an Exemption for the Rental of Real Property Between a Lessor and Lessee Having Identical Legal Composition. Presented by the Manager.

Administrative or Staff Report

This ordinance establishes a sales tax exemption for people who lease real property to their own closed corporation or partnership: in other words, people who lease to themselves. Usually this is done for federal income tax or tort liability purposes.

The Finance Committee approved the concept of an exemption for "related party leasing" at its meeting of July 28, 1997. Staff had initially thought that the policy could best be implemented through regulations, but the Finance and Law Departments have arrived at some ordinance language that will be adequate to launch the program. Regulations may yet be necessary, but we will wait to see what issues arise as we implement the program.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

3. Ordinance No. 97-42

An Ordinance Amending the Official Zoning Map of the City and Borough to Change the Zoning of a 6.5 Acre Portion of Lot 2, U.S. Survey 5504, an Area East of Thunder Mountain Mobile Park. Presented by the Manager.

Administrative or Staff Report

The Planning Commission, at their August 26, regular meeting unanimously recommended that the zoning be changed for an approximate 6.5 acre portion of Lot 2, U.S. Survey 5504, east of Thunder Mountain Mobile Park, from D-5, single-family/duplex residential to D-18, multifamily residential. This 6.5 acre parcel is a portion of a much larger tract of land that was selected by the CBJ from the State of Alaska for community expansion.

The Land Management Plan, adopted in 1994, has designated this parcel for disposal. This land disposal is viewed as an opportunity to assist in the expansion of the housing supply in the CBJ. Based on the direction in the Land Management Plan, a purchase agreement has been made with the owners of the Thunder Mountain Trailer Park for sale of the property. The purchase agreement is dependant on the developers receiving a zone change and conditional use permit for mobile home park expansion.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

4. Ordinance No. 97-17 (U)

An Ordinance Appropriating to the Manager the Sum of $27,000 to Construct an Accessible Fishing Dock on Twin Lakes. Such Funds Provided by the Alaska Department of Fish and Game. Presented by the Manager.

Administrative or Staff Report

This ordinance appropriates an additional $27,000 in Alaska Department of Fish and Game grant funds for the construction of an accessible fishing dock at Twin Lakes, bringing the total amount granted from the State Department of Fish and Game to $57,000. The estimated total project cost is $90,000.

With funding secured, staff will pursue dock installation in the spring of 1998.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

5. Ordinance No. 97-17 (V)

An Ordinance Appropriating to the Manager the Sum of $219,000 as Partial Funding for the Purchase of Property for the New Police Station. Such Funds Provided by the Lands Fund Unreserved Fund Balance. Presented by the Manager.

Administrative or Staff Report

This ordinance appropriates $219,000 from the Lands Fund Unreserved Fund Balance for the purchase of additional property for the new Police Station. When the sales tax proposition was presented to the voters in 1996, the CBJ had an option to purchase a minimum of 3 acres of land from S&S Development for the police station at $4.75/ sq. ft. Since that time, considerable work has been done investigating the property and determining the configuration of the property needed for an efficient site plan. This effort identified that 3.37 acres is the minimum footprint which would work. The decision was based on the specific restraints of the site such as access, wetlands, Corps of Engineers permits, shape of the property, etc.

The shape of the 3.37 acres is not acceptable to S&S because it leaves a small portion of permitted land that could be developed without access other than through the police site. This of course is not acceptable to the CBJ. The CBJ and S&S agreed to appraise the value of additional lands adjacent to the 3.37 acres so that the sale of additional land for future CBJ expansion, buffers from adjacent gravel extraction activities and the resolution of the leaving a parcel of land with no access could be considered. The result of these considerations is that S&S has agreed to sell the CBJ an additional 3.21 acres of land for a price of $219,000. Approximately one acre of the 3.21 acres is permitted by the Corps of Engineers for development of a police station. The remaining portion contains a small pond and land which would eventually be restored as wetland habitat. S&S Development will be responsible for the cost of any restoration.

The appropriation of $219,000 for the purchase of this additional land allows for future expansion of the police station and resolves the disagreement over the configuration of the property needed for the present project. Considerable flexibility in site planning is a benefit achieved and the $9 million project is protected from potential adjacent incompatible uses.

This project was reviewed by the Police Station Project Committee and approved. The Lands Committee, on August 27, 1997, recommended this land acquisition and forwarded the matter to the Assembly.

After this ordinance is adopted, the Lands Fund Unreserved Fund Balance will be $362,591.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

6. Ordinance No. 97-17 (W)

An Ordinance Adjusting the Original FY98 Budget Due to an Employee General Wage Increase. Presented by the Manager.

Administrative or Staff Report

This ordinance will appropriate the budget to fund the general pay increases approved in July 1997 applicable to FY98 operations. The Assembly approved wage increases of 2.50% for bargaining members and 1.40% for non-bargaining members for FY98 when the 3 year contract was ratified.

The FY98 budget was prepared with funding being set aside in anticipation of these increases. The amounts set aside, in each affected fund's balances and/or retained earnings, will be sufficient to cover the cost of this increase.

The General Fund unrestricted fund balance, after this ordinance and after allowing for the $31,300 first year RIP payment, will be $57,700. See the Unappropriated General Fund Unreserved Fund Balance Schedule contained in the Mayor's Report on Non-Agenda Items section of this agenda.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

7. Ordinance No. 97-17 (X)

An Ordinance Appropriating to the Manager the Sum of $3,285,050 for Phase I of Bartlett Regional Hospital's Project 98. Such Funds, $3,200,000, Provided by Bartlett Regional Hospital Retained Earnings And, $85,050 from Contributions. Presented by the Manager. Presented by the Manager.

Administrative or Staff Report

This ordinance will appropriate $3,285,050 for phase I of Bartlett Regional Hospital's project "98". This amount is being added to the $550,000 previously appropriated, 96-17 (AA), for project design. Current projections indicated that an additional $500,000 to $600,000 may be needed to complete Phase I. The Hospital Board has indicated that BRH will provide these additional funds as necessary.

Phase I of Project "98" will construct a 12,000 square foot administration/business office facility adjacent to the hospital. Also, included in the project are some road and parking enhancements. The road improvements have been coordinated with the Public Works Department. Public Works Street Division has included in their FY99 CIP project listing a request for $200,000 to pay for and/or reimburse the Hospital for the road enhancements included as part of the Phase I budget. This $200,000 would reduce the possible funding shortfall noted above.

Phase II, estimated at approximately $2.6 million, will expand the existing short stay, procedure, recovery, patient waiting and emergency rooms into the vacated administration/business office areas. BRH has indicated that approximately $2,000,000 of the Phase II cost will be funding through the issuance of debt (most likely revenue bonds)

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

IX. UNFINISHED BUSINESS:

1. Proposed Decision in Hayes Appeals (SUB 97-00012 & SUB 97-00039)

On September 15, 1997, the Assembly sitting in its quasi-judicial capacity, heard oral argument in the Hayes appeals, which concerned the approval of a preliminary and final subdivision plat for AJ Associates. At the conclusion of oral argument, the Assembly announced its findings, voted to deny the appeal, and directed the attorney advisor to draft a proposed decision in accord with the findings. The draft was completed and on September 25, 1997, was circulated to the parties for comment as required by CBJ 01.50.140(b)(4). The proposed decision was amended by the attorney advisor in response to some of the objections filed by the parties and is now before the body for action. The attorney advisor, Mr. Gross will be available to answer questions this evening. The Assembly may adopt, amend, or reject the proposed decision.

X. NEW BUSINESS:

XI. ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Items:

1. SAGA Lease

The recent purchase of the Joe Smith property at Amalga Harbor included a 5,000 square foot lodge building which has been leased to SAGA for their programs since 1992. Now that the CBJ is the owner of the property, new lease terms need to be negotiated with SAGA.

SAGA is proposing an exchange of services in lieu of rent, offering to make improvements to the facility they occupy. In need of repair are the water, heating and, septic system, and the driveway needs filling and grading.

The Lands Committee on October 8th recommended that a lease be negotiated to include an exchange of services as compensation for the lease, either in part or in whole.

Concern was also expressed that the Assembly has not adopted a uniform policy governing this issue.

For example, CBJ leases the Mayflower building to Montessori School for $2000 a month. The tenants have requested that in lieu of money, they be allowed credit against improvements to the heating system. CBJ provides outright financial support as well as maintenance to the Children's Community Center program operating in a CBJ facility. When discussing the possibility of renting Capital School to private/public interests, the Assembly established a "no cost to the city" policy.

Where tenant improvements serve to extend the life of a CBJ asset and where the asset provides a public benefit, accepting improvements may offset CBJ expenses. Where tenant improvements decrease tenant operational costs or provide a benefit to the tenant that is not connected to a public benefit, it may be more appropriate that CBJ get money instead of improvements.

The absence of an overall policy makes case by case negotiations inconsistent with previous ones. My recommendation is that the Assembly authorize negotiations with SAGA (this presupposes that SAGA, and no one else, is offered the facility) to allow improvements in lieu of rent as one component of the compensation package. During the negotiations, staff will determine the extent and value of improvements that will provide a public benefit.

Final terms of the agreement will be presented to the Assembly.

The Lands Committee will continue to work on an overall leasing policy.

B. Manager's Report - Information Items:

1. Closure of AJ Mine

We have been working with various State and Federal agencies as well as Kvaerner Environmental on the closure of the AJ Mine. Our goal is to make sure the mine is closed in an environmentally safe manner and to reduce any future maintenance costs to the CBJ.

A memo in your packet from Steve Gilbertson, Lands & Resources Manager outlines the closure process in the months ahead.

2. Status of NOAA/SECON/CBJ Land Trade

NOAA's supplemental draft environmental impact statement is out, declaring the Lena Point site as the preferred alternative.

The Assembly has authorized an equal value land trade between NOAA's Auke Cape site, SECON's Lena Point site, and CBJ lands suitable for a rock quarry. SECON and CBJ are investigating a city owned site at Stabler Point. The site is presently being developed as a rock source for the expansion of the Alaska Marine Highway System parking area in Auke Bay. The Planning Commission has approved a rock quarry plan for the site for the limited purpose of providing rock for the project. Because of the benefit to DOT/PF for the ongoing project, DOT/PF is assisting in development of the quarry plan. Overburden estimates are being conducted and rock samples are being taken. SECON has indicated a willingness to consider Stabler Point as a site that may be suitable for a trade for the Lena Point site. CBJ will contract with R&M Engineering to bore three test holes to determine rock quality.

NOAA has ordered appraisals for the Lena Point site and for Auke Cape. The Lena appraisal should be available by the time of the Assembly meeting. The Auke Cape appraisal will be completed in a month.

We conduct weekly status meetings by teleconference, including SECON, NOAA, and CBJ representatives. NOAA officials met in Juneau last week to coordinate the project efforts, and comments on the DEIS are being accepted until November 25th.

3. Contest of Election re Proposition No. 1--Findings

Included in your packet this evening is a copy of the Municipal Clerk & Election Official's Findings and Recommendations in response to the Contest of Election regarding Proposition No. 1. This item is included as an information item as it is not within the purview of the Assembly to investigate contests of election. The Assembly has no official role in the election certification process. If you have any questions regarding the Findings, the Election Official and City & Borough Attorney are available to answer them.

4. Annual Ombudsman's Report, Fiscal Years 1996 and 1997

The annual report from the State of Alaska Ombudsman's office, on contract with CBJ to investigate, mediate, and resolve citizens' complaints of CBJ issues, was received this month. The report shows a very positive trend and specifically highlights significant improvements in some departments.

The number of complaints submitted to the Ombudsman's office on CBJ issues declined this year to a ten year low. 37 complaints were filed, down from a high in 1994 of 79, a reduction by half. No complaint warranted a full investigation, a task undertaken when the Ombudsman concludes there is a valid, significant complaint that cannot be otherwise resolved.

The report states:

...this apparent downward trend in Ombudsman Office contacts may reflect CBJ residents' satisfaction with services from their local government. It also reflects, we believe, a willingness of CBJ management and department heads to try to resolve problems or concerns Juneau residents may have with CBJ services thus precluding the necessity of their ringing complaints to the Ombudsman's attention first.

Singling out the police department for special commentary, the report reads:

We believe that the significant reduction in CBJ Police Department-related complaints, especially in FY '97, reflects Chief Richard Gummow's commitment to community policing and his and his senior staff's (Captains Mel Personett, administration; and Mike DeCapua, patrol/operations) sensitivity to citizen concerns. In short, we are impressed that this substantial professional effort on the part of the CBJ Police Department, particularly its willingness to address and resolve these problems at the department level, reduced the number of citizen complaints to the Ombudsman concerning the Police Department. It speaks well for Chief Gummow's leadership that during this two-year period none of the 28 FY'96 complaints or 13 FY'97 complaints returned to the Ombudsman's Office or required a full, formal ombudsman investigation. (Indeed, there has been no full, formal ombudsman investigation of a Police Department-related complaint since FY'94.)

Regarding tourism, the Ombudsman wrote:

We noted in our FY'95 report to you that, for the first time, the expanding impact of tourism in the Juneau area prompted several complaints to the Ombudsman. We summarized four such complaints. Surprisingly, given the continuing public dialogue on the subject, during FY'96 and FY'97, the Ombudsman's Office received no complaints concerning tourism-related issues or problems. It well may be that the availability of the tourism "hotline," by which one can voice concerns about tourism's impact, as well as the tourism task force, both provided an effective, meaningful vehicle for resolution of these citizen concerns.

Last year's budget cuts at the State level further reduced funding for the Ombudsman's office, and in protest, Ombudsman Stu Hall resigned. He told me he felt the office could not afford to lose another investigator, so he chose to leave instead. He explained he felt CBJ would continue to get full service under our contractual arrangement (we pay $25,000 a year for this service).

I believe the Ombudsman's Office provides a valuable service for CBJ citizens. We do not always agree with the findings, and on occasion, we have frank discussions with investigators. Nevertheless, having a neutral third party often helps citizens work through problems and it keeps us, the CBJ staff, vigilant to our duties in the public service.

The complete report is contained in your packet.

5. Record-Breaking Household Hazardous Waste Event

On September 27, over 640 participants came to the hazardous waste collection center in Lemon Creek to drop off their used oil, old paints, antifreeze and hazardous waste products. This record-breaking turnout far exceeded our previous impressive record of 402 participants, set in September, 1996. In response to a public suggestion, we are looking into expanding the program to include freon collection.

A memo in your packet from Cynthia Johnson, Lands & Resources Officer offers more detail.

6. National Council of State Legislators Survey

Your packet contains a survey conducted by NCSL released this summer, which contains some relevant and interesting information.

While we continue to endure reductions in state funding for schools, municipal government, transportation, public safety, and virtually most state programs, and while the stated goal of the current Legislative leadership is to continue the trend of state budget cuts, the NCSL survey provides interesting insight into the condition of the state treasury.

The NCSL (Alaska is a member) survey looks at state budget trends and tax information taken from adopted state budgets. The conclusions are, in my opinion, revealing.

The national aggregate state general fund ending balance for FY97 is 8.7% of general fund spending. Alaska stands out from the 8.7% average with a 132.4% fund balance to general fund expenditure ratio!

Funding for K-12 education is projected across all states, to receive the largest increase of major state spending, growing by a nationwide average of 6.2%. Alaska's increase is significantly lower than the national average at 1.3% with a commentary attached citing the state's five year spending reduction plan that does not exempt K-12 education.

Nationally, higher education general fund support is expected to increase on an average of 5.8% for FY98, the second straight year that higher education appropriations have grown more than 5%. Alaska, on the other hand, reduced higher education funding by 2%, the largest reduction of any state in the nation.

Only eight states reported significant net tax increases, Alaska was one with an increase in cigarette and tobacco taxes from 29 cents to $1.00 per pack and an increase in motor fuel tax.

The amount of money in budget reserves is particularly noteworthy. Not counting the permanent fund (which is over $21 billion), the survey shows that Alaska has a BUDGET SURPLUS of 3.2 billion dollars, by far, the highest surplus of any state in the nation. The next closest is Texas with a $1.9 billion surplus, 60% below Alaska. From there, the surplus of other states drop significantly. For example, nearby Washington State has a $406 million dollar reserve.

The trend in Alaska is contrary to national trends. While the rest of the country is increasing support for education, Alaska is cutting support for schools. While we hear of the need for cuts in state programs (I had two state agencies in my office this week asking the CBJ to assume State programs for want of funding), Alaska sits on the largest budget surplus in the country (not even counting the Permanent Fund).

These issues will be addressed in greater detail at the Alaska Municipal League meeting in Ketchikan November 12-14, 1997.

C. Attorney's Report:

XII. MAYOR'S REPORT ON NON-AGENDA ITEMS

A. Revised Pending Items

B. Unappropriated General Fund Unreserved Fund Balance

C. Assembly Contingency Fund Balance

XIII. COMMITTEE REPORTS ON NON-AGENDA ITEMS

A. Committee Reports:

B. Board Liaison Reports

XIV. ASSEMBLY COMMENTS AND QUESTIONS

XV. CONTINUATION OF PUBLIC PARTICIPATION ON NON-AGENDA ITEMS. (Not to exceed 5 minutes per person or 20 minutes total, whichever is less).

XVI. ADJOURNMENT

NOTE: Agenda packets are available for review at the Juneau Public Library, the Mendenhall Valley Library, and the Douglas Public Library. An audio tape containing the Assembly's agenda is available for review at all CBJ Libraries each Friday prior to the Assembly's Monday meeting.

ADA Accommodations Available Upon Request: Please telephone the Clerk's Office 48 hours prior to any meeting so arrangements can be made to have a sign language interpreter present. The Clerk's Office telephone number is 586-5278, TDD 586-5135.

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Last revised on 10/21/97 - bgb