AGENDA/MANAGER’S REPORT

THE CITY AND BOROUGH OF JUNEAU, ALASKA

Monday, July 20, 1998 - 7:00 PM

Assembly Chambers - Municipal Building

Meeting No. 98-26

Submitted by:

David R. Palmer

City & Borough Manager

 

I. FLAG SALUTE

II. INVOCATION

III. ROLL CALL

IV. APPROVAL OF MINUTES

SPECIAL ORDER OF BUSINESS

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. Resolution:

1. Resolution No. 1944

A Resolution Ratifying the Labor Agreement Between the City & Borough of Juneau and the Alaska Public Safety Employees Association. Presented by the Manager.

At the regular meeting on June 15, 1998, the Assembly voted to ratify the 1998-2001 labor agreement negotiated with the Public Safety Employees Association. This resolution formalizes that decision, as required by CBJ 44.10.120.

I recommend that this resolution be adopted.

B. Transfer Request:

1. Transfer No. T-652: Transfers $35,000 from School Project/Land Acquisition (CIP F453) to New High School/Dimond Park (CIP S454-66)

This transfer moves $35,000 in School Facility General Obligation Bonds from the School Project/Land Acquisition to the New High School/Dimond Park planning project.

These funds will increase the total project budget to $143,000. This transfer will allow the planning consultants to assist with preparing summary information from the Facility Plan, and will pay for staff time to respond to public inquiries and provide coordination and support to this project for the next three months. In addition, it provides funding for consultant time already expended to refine cost estimates. The cost of information brochure layout, printing and mailing is also included. In addition, this budget provides for staff time to prepare an RFP for design services. Preparing the RFP now will allow the project to stay on an aggressive schedule if approved by the voters in October.

After the transfer 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:
F453/
School Project/
Land Acquisition		$95,652		$60,652		$2,075,171	on-going

Transferred to:
S454-66/
New High School/
Dimond Park		$20,845		$55,845		$ 143,000	on-going

I recommend that this transfer be approved.

C. Bid Award:

1. Bid No. 98-511: 4 X 4 Industrial Tractor with Attachments

Bid No. 98-511 for one 4 x 4 industrial tractor with attachments, for the Public Works Street Division was opened on July 6, 1998 with the following results:

Encumbered: $100,000 Vehicles & Equipment
One			Less					Total 
Bidder			Tractor		Trade-In	 Award Price
Yukon Equipment*		$88,080.00		 -$4,000.00	$84,080.00

The request for bids was advertised in the Juneau Empire, Seattle Daily Journal of Commerce, and the Anchorage Daily News on June 12 and June 19, 1998. Request for bid documents were sent to twenty-two potential bidders. Yukon Equipment was the only bidder.

I recommend award to Yukon Equipment as having the lowest responsive bid price, for a total award of $84,080.00.

2. Contract No. E98-486: Twin Lakes Accessible Dock

Bids were opened on the subject project on July 7, 1998. The bid protest period expired at 4:30pm on July 8, 1998. Results of that bid opening are as follows:

Responsive					Base Bid
Goertz Construction, Inc.				71,747.00
Trucano Construction Co., Inc. 			75,200.00
Channel Construction, Inc.				85,797.00
Arete Construction Corporation			92,800.00
North Pacific Steel Erectors, Inc.			114,437.00
Clark Construction Company				131,111.00
Engineer’s Estimate				$78,000.00

The project consists of providing an accessible fishing dock, which meets the requirements of the American Disabilities Act, at Twin Lakes Park. Completion time is 90 calendar days after receiving Notice to Proceed, except for paving.

Funding source: grants (Administration and Fish & Game grants); CBJ FY95 General Sales Tax, with total project funds of $90,000. Contract administration/inspection and engineering department administration will both be done in-house.

I recommend award of this bid to Goertz Construction Company in the amount bid for the Base Bid, for a total award of $71,747.00.

VIII. ORDINANCES FOR PUBLIC HEARING:

1. Ordinance No. 98-27

An Ordinance Amending the Sales Tax Code to Cap the Tax Imposed on Sales of Fuel Oil in Excess of 50,000 Gallons Delivered by Marine Transportation to a Single Customer. Presented by the Manager.

Administrative or Staff Report

This ordinance allows Juneau fuel vendors to compete on an equal basis with out of town suppliers for bulk sales to customers who take delivery of large quantities by barge.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

2. Ordinance No. 98-28

An Ordinance Proposing an Amendment to the Charter of the City and Borough to Provide for Noncompetitive Purchases of Services to be Provided by Officers and Employees of the State of Alaska and the Federal Government; Faculty and Students of Accredited High Schools, Colleges, and Universities; and Members, Shareholders, and Employees of Nonprofit Associations; and Calling for an Election on the Question of Whether the Charter Should be so Amended. Presented by the Manager.

Administrative or Staff Report

This ordinance directs the clerk to prepare a ballot proposition for an amendment to Section 9.14 of the Charter relating to Competitive Bidding Requirements.

The proposed amendment would establish three new exceptions to the requirement for competitive bidding by allowing directly negotiated contracts with 1) state and federal government; 2) schools; and, 3) non-profit corporations.

Exception 1: This exception would apply to work performed by state and federal employees on joint projects, maintenance agreements, and other cooperative agreements between governments. An example is reciprocal street maintenance agreements between CBJ and State of Alaska DOT/PF.

Exception 2: The second exception would allow the municipality to negotiate with high schools and accredited colleges and universities for the services of their faculty and students. This exception would apply to work performed by interns, vocational classes, and other academic programs. An example is work performed by university or high school classes to build a house for educational purposes.

Exception 3: The third exception would allow the municipality to negotiate with nonprofit corporations for services. This exception would apply to work performed by clubs, service organizations, community groups, and other noncommercial organizations registered with the State of Alaska as nonprofit corporations. This exception is limited by a requirement that the amount paid for the services does not exceed an average per hour of double the minimum wage established by state law.

Parks and Recreation projects represent an example of how we anticipate using the education and nonprofit exception. Parks and Recreation typically tries to work with groups like Trail Mix, Saga, and Rotary Clubs to lower the cost of projects that have not been competitive for standard CIP funding. By creating partnerships with nonprofit organizations, the city can accomplish community projects such as neighborhood parks and trail improvements, using volunteers and/or students working for a moderate hourly rate.

If the charter amendment is approved by the voters, an amendment to the purchasing code that defines and implements the charter provision will be brought forward for the Assembly's consideration.

The proposed amendment would not affect the way the city purchases supplies: purchases of supplies would remain subject to the requirement for a competitive bid whenever practicable.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

3. Ordinance No. 98-29

An Ordinance of the City and Borough of Juneau, Alaska, Authorizing the Issuance of a Revenue Bond (Bartlett Regional Hospital Foundation Project), of the City and Borough in an Aggregate Principal Amount Not to Exceed $450,000; Authorizing the Execution and Delivery of a Loan Agreement in Connection Therewith; Authorizing the Proper Officials of the City and Borough to Do All Things Necessary or Advisable to Consummate the Issuance, Sale and Delivery of Such Bonds; Providing the Form of Bond and Manner of Sale of Said Bond; and Providing That the Bond Be Placed with Keybank National Association. Presented by the Manager.

Administrative or Staff Report

This ordinance authorizes (1) the issuance and sale of a City and Borough of Juneau ("CBJ") Nonrecourse Revenue Bond in an amount not to exceed $450,000 to the Bartlett Regional Hospital Foundation ("BRHF") to finance the construction of a short-stay patient family housing project to KeyBank National Association ("Bank"), and (2) the execution and delivery of a Loan Agreement between the CBJ and BRHF concurrent with the issuance of the bond.

The Bond shall be a special, limited obligation of the City and Borough. Repayment of the bond principal will be solely limited to the revenue received under the agreement between CBJ and BRHF. The agreement calls for all payments to be made directly by BRHF to Key bank. The CBJ assumes no liability or responsibility for payment or future management of this issue. As such this debt does not constitute a debt or indebtedness or loan of the credit of the City and Borough. It will not impact our debt capacity, bond ratings or financial operations, thus it is termed a "nonrecourse revenue bond."

The CBJ, under the terms of the Loan Agreement, agrees to lend the proceeds of the Bond to the BRHF. The BRHF agrees to repay to the CBJ all out of pocket costs associated with Bond issuance and to pay directly to the Bank all Bond debt service. The Loan Agreement between the CBJ and the Foundation will be assigned by the CBJ to the Bank as security for the Bond.

Key Bank National Association will, in accordance with its financing commitment dated June 16, 1998, provide a commercial loan document that will affix the Bartlett Regional Hospital Foundation as "Borrower", the CBJ as "Issuer" and the Bank as "Lender".

It will be necessary to amend the ordinance to include some specific interest adjustment provisions required by Key Bank. The original ordinance, as drafted by Bond Council, excluded these provisions. The sentence on page 3 line 20, which currently reads,

The Bond shall bear interest on unpaid principal from the date of issuance thereof at the rate of %, payable monthly commencing and on each day of the month thereafter.

Should be amended to read,

The Bond shall bear interest on unpaid principal from the date of issuance thereof at the rate of 74.3% of the KeyBank Prime Rate, until [completion] and thereafter at the rate equal to % [5-year Constant Maturity Treasury plus 1.25] until , 2003 payable monthly commencing and on each day of the month thereafter and thereafter interest will be calculated at a rate equal to the 5-year Constant Maturity Treasury rate plus 1.25% per annum until , 2008 and thereafter at a rate equal to the 5-year Constant Maturity Treasury rate plus 1.25% per annum until maturity and shall be amortized over a -year period, with the final principal payment nevertheless due years following the date of issuance.

I recommend that this ordinance be adopted with recommended amendments from staff and Bond Council.

Public Hearing

Assembly Action

4. Ordinance No. 98-17 (A)

An Ordinance Appropriating to the Manager the Sum of $65,000 For Installation of a Culvert on Cessna Drive And Construction of a Fish Weir on Duck Creek. Such Funds, $20,000 Each, Provided by the U. S. Fish And Wildlife Service And the National Marine Fisheries Service; $5,000, Provided by Trout Unlimited, Inc.; and $20,000, Provided by Partners for Fish and Wildlife. Presented by the Manager.

Administrative or Staff Report

This ordinance appropriates $65,000 to complete funding for the installation of a culvert on Cessna Drive where it crosses Duck Creek and for construction of a fish weir in the vicinity of the culvert. The $65,000 represents grant from two federal agencies and two non profit organizations as follows:

U. S. Fish and Wildlife Service	$20,000
National Marine Fisheries Service	 20,000
Trout Unlimited, Inc.		  5,000
Partners for Fish and Wildlife	 20,000
				$65,000

 

After this ordinance is adopted, the total project budget will be $195,000. Other funding totaling $130,000 has been provided by the Alaska Department of Administration ($40,000), the Alaska Department of Transportation and Public Facilities ($30,000), the U. S. Fish and Wildlife Service ($30,000), and the CBJ Wetlands Mitigation Bank ($30,000). This is part of an on-going effort by the City to improve fish passage up Duck Creek. It is expected that the bid will go out within the next couple of weeks, and the bid award on the August 3 Assembly meeting agenda.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

IX. UNFINISHED BUSINESS:

X. NEW BUSINESS:

XI. ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:

A. Manager's Report - Action Items:

1. KTOO Request for Funding to Cover 2nd Special Session of Legislature

KTOO is planning Gavel to Gavel coverage of the second special legislative session, beginning Monday, July 20 and is requesting CBJ contribute half the costs, or $2,000/day for a total of $10,000 for the session, which is expected to last no more than five days.

In addition, KTOO is asking for assistance from the CBJ in covering a portion of the costs for the first special session held in June. KTOO provided seven days of coverage for the session; prior to the start of that session, the Assembly provided funding from the Better Capital City budget for up to five days for an amount not to exceed $10,000. KTOO is asking the CBJ to approve funding for the additional two days at the same rate, or $4,000.

Since this is a policy decision by the Assembly, I have no recommendation.

B. Manager’s Report - Information Items:

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:

1. Committee of the Whole

2. Finance Committee

3. Committee on Committees

a) Commission on Aging

b) Docks and Harbors board

c) Juneau Women’s Council

d) Youth Activities Board

4. Human Resources Committee

5 . Lands and Resources Committee

6. Public Works and Facilities Committee

7. Assembly Strategic Policy Committee

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 586-5351.