AGENDA/MANAGER'S REPORT

THE CITY AND BOROUGH OF JUNEAU, ALASKA

Monday, August 17, 1998 - 7:00 PM

Assembly Chambers - Municipal Building

Meeting No. 98-30

Submitted by:

David R. Palmer

City & Borough Manager


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I. FLAG SALUTE

II. INVOCATION

III. ROLL CALL

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. Ordinance:

    1. Ordinance No. 98-17 (F)

An Ordinance Appropriating to the Manager the Sum of $200,000 for the Design of Improvements to the Juneau-Douglas and Mendenhall Wastewater Treatment Plants. Such Funds Provided by the Sewer Fund Retained Earnings. Presented by the Manager.

This ordinance appropriates $200,000 from the Sewer Fund’s retained earnings for design of improvements to the Juneau-Douglas and Mendenhall Wastewater Treatment Plants as follows:

a) Juneau-Douglas Treatment Plant Improvements: $100,000

This project will design replacement of the existing gaseous chlorine disinfection process, with one that uses ultraviolet light. This change is mandated by the plant’s discharge permit, which requires the discharge of chlorine be eliminated by the end of calendar year 1999. Disinfection using ultraviolet light is a proven technology and as effective as chlorine. The project will also address improvements in solids handling for better storage and disposal.

Once an engineer’s estimate is available, funding for the project will come from a loan from the Alaska Clean Water Fund. The preliminary cost estimate for the total project is $1.7 million. Debt service will be paid from user fees.

b) Mendenhall Wastewater Treatment Plant Improvements: $100,000

This project will accomplish a number of improvements to the Mendenhall Plant: 1) replacement of the original and custom-built treated wastewater decanter with new off-the-shelf equipment; 2) replace existing superview control and data acquisition system with new personal computer and programmable logic controller based off-the-shelf software/hardware; 3) evaluation and reconfiguration of the plant’s solids handling process to make it more efficient and significantly reduce odors from that source; and, 4) major repairs to the old metal plant building which has deteriorated due to corrosion.

Improvements in solids handling should result in efficiencies and significant odor reduction. The metal plant building is in need of major repairs due to corrosion deterioration.

Once an engineer’s estimate is available, funding for the project will come from a loan from the Alaska Clean Water Fund. Preliminary estimate of the total project is $1.0 million. Debt service will be paid from user fees.

After this ordinance is adopted, the Sewer Fund Retained Earnings will be $1,508,484.

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

B. Resolutions:

1. Resolution No. 1947

A Resolution Supporting Local Land Use Management of the Taku River Area. Presented by the Assembly Lands Committee.

This resolution is presented by the Lands Committee for the purpose of stating the Assemblys support of local land use management of the Taku River Valley. The intent is to ensure that land management of the Taku River area is regulated by local land use powers. Further the resolution states that the Assembly does not support any further federal restrictions over multiple-use land management in the area. The Lands Committee recommended that this resolution be forwarded to the Assembly for consideration.

As this represents a policy decision by the Assembly, I have no recommendation.

2. Resolution No. 1949

A Resolution Accepting the Fiscal Year 1999 Municipal Capital Matching Grants. Presented by the Manager.

This resolution complies with an Alaska Department of Administration requirement that Municipal Capital Matching recipients officially state their intent to contribute a local share to the project. The CBJ has been awarded six grants under this program in the amount of $512,048, with the CBJ providing a match of $219,449.

Ordinance No. 98-17 (B), introduced at the August 3, 1998 meeting, and scheduled for public hearing on tonight’s agenda, will appropriate the grant funds. The manager’s report for that ordinance described the projects funded by the grants.

This resolution, although a companion of Ordinance No. 98-17 (B), does not require an Economic Impact note; please refer to the EI attached to the ordinance for financial information.

I recommend that this resolution be adopted.

C. Bid Awards:

  1. Contract No. E98-488: Douglas Boat Harbor "C" Float Addition

Bids were opened on the subject project on July 15, 1998. The bid protest period expired at 4:30pm on July 16,1998. Results of the bid opening are as follows:

Responsive Base Bid

North Pacific Steel Erectors, Inc. $155,967.00

Trucano Construction Company $162,125.00

Tamico, Inc. $181,000.03

Western Marine Construction, Inc. $199,250.00

Engineer’s Estimate $115,000.00

The project consists of construction of seven 4’ x 40’ concrete moorage floats (14 slips for 42’-54’ boats), plus attached hardware, to be installed on the north side of the existing "C" float in the Douglas Boat Harbor. Also included is furnishing and driving seven steel anchor piling; modification of the face of the existing "C" float to accommodate mounting of the new floats; and the addition of flotation as necessary under the existing "C" float to replace damaged flotation and to level the dock. Completion time: 60 calendar days after Notice to Proceed.

Funding source: FY98 Harbor F530; Transfer from Harbor Board Contingency Fund ($60,000); total project funds: $210,000; construction: $155,967; construction contingency: $10,003; consultant design: $14,000; consultant contract admin/inspection: $10,000; engineering dept. administrative costs: $20,000.

I recommend award of this project, with concurrence by the Docks & Harbors Board, to North Pacific Steel Erectors, Inc. in the amount bid for the Base Bid, for a total award of $155,967.00.

D. Liquor Licenses:

    1. Two Year Renewals:
    2. Restaurant/Eating Place:

      City Café

      Armadillo Tex-Mex Café

      Pizzeria Roma

      Fernando’s

      Olivia’s De Mexico

      Taku Glacier Lodge, Inc.

      Taku Eateries

      Beverage Dispensary – Tourism

      Fiddlehead Restaurant

      Breakwater Inn Restaurant & Lounge

      General Wholesale:

      West Coast Distributors

      Beverage Dispensary

      Mike’s

      Hangar on the Wharf

      Package Store License:

      Duck Creek Market

      Budget Liquor

      Thibodeau’s Home Liquor & Deli

      Kenny’s Liquor

      Thibodeau’s Liquor Barrel

    3. Transfer:

Alaska Distributors; Alaska Distributors Co.; 2266 Industrial Way; Alex Shulman, Chairman; Mail: 4201 Sixth Ave. S, Seattle, WA 98108; change of location from 1759 Anka St.

The Finance, Fire, Police and Community Development departments have reviewed the applications and indicated no objections. The Human Resources Committee met on Monday, August 3, 1998, and Monday, August 10, and adopted motions to recommend the Assembly waive its right to protest the two-year liquor license renewals and the transfer for the above-listed businesses.

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. 98-30

An Ordinance of the City and Borough of Juneau, Alaska, Authorizing the City and Borough to Issue General Obligation Bonds in the Principal Amount of Not to Exceed $55,500,000 to Finance the Construction of a New High School, to Partially Design Related Community Facilities, and Providing for the Submission to the Qualified Voters of the City and Borough at the Election to Be Held Therein on October 6, 1998, of Propositions as to Whether or Not the City and Borough Should Incur Such Indebtedness and Issue Such Bonds for Such Purposes, as to Whether the City and Borough Should Levy a Temporary One Percent Sales Tax to Pay Part of the Debt Service on the Bonds and, as to Whether the City and Borough Should Extend Such Sales Tax to Pay the Cost of Parks and Harbors Improvements. Presented by the Manager.

Administrative or Staff Report

Approval of this ordinance will authorize a general obligation bond issue for construction of a new high school and partial design of related community facilities and provides for three propositions to be submitted to the voters at the October 6, 1998 municipal election.

For ease of explaining these three ballot propositions, the proposition numbers have been pre-assigned by the election official prior to adoption of the ordinance. The proposition numbers are not considered final until after adoption of the ordinance.

Proposition 1 is a bond issue for a principal amount of $55,500,000 to construct a new senior high school and partially design related community facilities (a library, a recreation center/gymnasium and a swimming pool). A planning process undertaken recently by the CBJ and the School District resulted in the recommendation that a 1,500 student school for grades 10-12 be constructed at Dimond Park supported by integrated community facilities.

Issuance of a 20-year bond will require an estimated annual property tax of 1.92 mils. If the Legislature fully funds the 70% debt reimbursement program, 50% of the school construction (or 35% of the total cost) would qualify for reimbursement as currently authorized by the Department of Education. The mil levy required to pay the debt service on the bonds in that case would be 1.25 mils. The school district estimates maintenance and operating costs to be $1,600,000 annually for the new high school (exclusive of any instructional expenditures B see memo from Gary Bader).

Proposition 2 is a temporary sales tax of 1% for 7 years to partially pay the debt service if the bond issue in Proposition 1 is approved by the voters. The tax would begin January 1, 1999, and end December 31, 2005. Passage of Proposition 2 would result in the issuance of 10-year bonds and would reduce the mil levy from 1.92 mils to 1 mil. Issuance of 10-year bonds would reduce total interest on the debt by $21,400,000. If the state reimburses the project as described in Proposition 1, the mil levy would be reduced to zero. In addition, the ordinance specifies that if the combination of state reimbursement and sales tax revenues exceed the amount required to pay the debt service, any surplus sales tax funds will be applied to other school capital improvement projects.

Proposition 3 is a temporary sales tax of 1% for two years to fund a variety of substantial improvements and repairs to a variety of parks and harbors facilities. The list of proposed projects is included in your packet, and addresses the needs of existing facilities. If both Proposition 2 and Proposition 3 are approved, the additional two-year tax will be added to the 7-year term described in Proposition 2 for a total taxing period of 9 years. The tax authorized by Proposition 3 would begin January 1, 2006, and end December 31, 2007. If Proposition 3 is approved and Proposition 2 is not approved, the temporary two-year tax will begin January 1, 1999, and end December 31, 2000. Parks and harbors improvements and repairs would start in 1999, regardless of the date the tax begins. For calendar years 1999 and 2000, it is estimated that a 1% sales tax would generate $11,600,000 in revenue.

This is an exceptionally complex ballot. Staff has worked extensively with bond counsel to craft language for the propositions that is both accurate and complete. In accordance with Assembly direction at the August 10 Special Meeting, staff has drafted additional language (memo is included in your packet with the ordinance) that would appear on the ballot as an explanation of each proposition. This will be in addition to a separate voter information pamphlet published by the CBJ prior to the election.

The Assembly Committee of the Whole reviewed the proposed projects and financing methods at its meeting of July 8, 1998, and requested that the Assembly draft this ordinance for consideration.

I recommend that this ordinance be adopted as amended.

Public Hearing

Assembly Action

2. Ordinance No.98-17 (B)

An Ordinance Appropriating to the Manager the Sum of $512,048 for the Following Capital Projects: Essential Building Repairs, Fire Station Repairs Phase III, American Disabilities Act Compliance, Underground Fuel Storage Tanks, and Sports Field Safety Repairs And Major Maintenance. Such Funds Provided by the Alaska Department of Administration. Presented by the Manager.

Administrative or Staff Report

Note: an amendment is necessary to the title of Ordinance No. 98-17 (B) as one of the projects was inadvertently omitted from the title at introduction. Project Title is Parks and Playground Safety Repairs. A copy of the ordinance with the amended title is included in your packet.

This ordinance appropriates $512,048 for the six grants awarded under the FY99 Alaska Department of Administration (DOA) Municipal Capital Project Matching Grants Program. The local share for all projects was provided for in the FY99 Budget Ordinance, No. 98-17, as prioritized by Resolution Serial No. 1932. Ordinance No. 98-17 provides matching funds at levels equal to or greater than the State=s requirement.

1. PROJECT TITLE: Essential Building Repairs

Funding will be used to continue with essential building repairs of city owned facilities. The primary purpose of these building repairs is to avoid more serious problems that could occur if current situations are not immediately addressed.

STATE FUNDING REQUEST: $ 126,000

LOCAL MATCH: $ 54,000

TOTAL PROJECT COST: $ 180,000

2. PROJECT TITLE: Juneau Fire Station Repairs, Phase III

Funding will be used to address the failure of the exterior waterproofing system and resultant deterioration of masonry block at the Juneau Fire Station. The funding will address continuing roof leaks and problems with the horizontal siding.

STATE FUNDING REQUEST: $ 130,548

LOCAL MATCH: $ 118,300

TOTAL PROJECT COST: $ 248,848

3. PROJECT TITLE: American Disabilities Act Compliance

Funding will be used to bring City and Borough of Juneau (CBJ) facilities, buildings, and transit vehicles into compliance with the Americans with Disabilities Act. The CBJ Accessibility Task Force annually recommends specific projects.

STATE FUNDING REQUEST: $ 35,000

LOCAL MATCH: $ 15,000

TOTAL PROJECT COST: $ 50,000

4. PROJECT TITLE: Underground Fuel Storage Tanks

Funding will be used to continue the CBJ on-going effort to repair or replace underground fuel storage tanks at CBJ facilities and buildings. The work is necessary to bring CBJ facilities and buildings into compliance with Alaska Department of Environmental Conservation and U.S. Environmental Protection Agency regulations.

STATE FUNDING REQUEST: $ 140,000

LOCAL MATCH: $ 60,000

TOTAL PROJECT COST: $ 200,000

5. PROJECT TITLE: Sports Field Safety Repairs/Maintenance

Funding will be used for safety-related repairs and major maintenance to CBJ sports field facilities. The purpose of the projects is to assure that sports fields and related equipment are available for safe activities.

STATE FUNDING REQUEST: $ 52,500

LOCAL MATCH: $ 22,500

TOTAL PROJECT COST: $ 75,000

6. PROJECT TITLE: Parks and Playground Safety Repairs

Funding will be used for safety-related repairs and maintenance at various parks and playgrounds in the community. Specific park safety repairs for FY99 will take place a Chicken Yard Park, Twin Lakes Park, Sigoowu Ye Park, and Riverside Rotary Park.

STATE FUNDING REQUEST: $ 28,000

LOCAL MATCH: $ 12,000

TOTAL PROJECT COST: $ 40,000

I recommend that this ordinance be adopted as amended.

Public Hearing

Assembly Action

3. Ordinance No. 98-17 (C)

An Ordinance Appropriating to the Manager the Sum of $100,000 to Design a Replacement High Pressure Water Line That Crosses Gold Creek on Calhoun Street. Such Funds Provided by the Water Fund Retained Earnings. Presented by the Manager.

Administrative or Staff Report

This ordinance appropriates $100,000 of the Water Fund Retained Earnings for design of a replacement high-pressure water line crossing Gold Creek on Calhoun Street. Recently, during the repair of a small leak, the Water maintenance crews inspected the existing welded steel high-pressure line and found that the line was in very poor condition and should be replaced. The line, which has been in service over 40 years, is suspended under the Calhoun Street Bridge, and is the only feed up to the Highlands area.

These funds will cover fieldwork and design, resulting in a construction cost estimate. Construction funds will be requested, if needed, when the design is complete. A copy of a Memorandum from the Water Utility Superintendent provides more information and is included in your packet.

After this ordinance is adopted, the Water Fund Retained Earnings balance will be $2,086,595.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

4. Ordinance No. 98-17 (D)

An Ordinance Deappropriating the Sum of $16,000; $15,000 from the New High School/Dimond Park Planning Project and $1,000 from the Managers Operating Budget. Such Funds, $15,000, Provided by the New High School/Dimond Park Project General Revenue, and $1,000, Provided by the Manager=s Operating Budget. Presented by the Manager.

This ordinance deappropriates $15,000 from the New High School/Dimond Park Planning project and $1,000 from the Manager=s FY99 operating budget, and restricts the funds for voter information pamphlets for the October 1998 ballot.

A companion ordinance, No. 98-17 (E) appropriates $16,000 to be used specifically for the voter information pamphlets. The deappropriation/appropriation process is necessary to comply with APOC requirements to specifically identify the source of funds.

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

5. Ordinance No. 98-17 (E)

An Ordinance Appropriating to the Manager the Sum of $16,000 for Publication of Voter Information Pamphlets. Such Funds, $15,000, Provided by the New High School/Dimond Park Planning Project General Revenue, and $1,000, Provided by the Manager=s FY99 Operating Budget. Presented by the Manager.

This ordinance appropriates $16,000 for the preparation of voter information pamphlets for the October 1998 ballot. This ordinance is a companion to Ordinance No. 98-17 (D).

I recommend that this ordinance be adopted.

Public Hearing

Assembly Action

  1. UNFINISHED BUSINESS:
  2. NEW BUSINESS:
  3. 1. Howard Hayes= Appeal of Planning Commission Approval of the Final Plat for Alaska Juneau Subdivision IV-II (SUB98-00035)

    At its regular meeting on July 14, 1998, the Planning Commission granted final plat approval for the Alaska Juneau Subdivision Phase IV-II creating eight lots for commercial/industrial development. On August 6, 1998, Howard Hayes appealed the Commission=s decision to the Assembly.

    The Notice of Appeal and the Notice of Decision on SUB98-00035 are in your packet.

    The Assembly is the appeal agency for this appeal, and its actions throughout the appeal process are governed by CBJ 01.50, the Appellate Code. The Code requires that upon receiving an appeal, the Assembly must first decide whether to accept or reject it. The standards applicable to this decision are set out at CBJ 01.50.030(e):

    (e) Action by Appeal Agency Upon Receipt of a Notice of Appeal.

    (1) Within thirty days of receipt of a notice of appeal by the appeal agency, the appeal agency shall notify the appellant of the acceptance or rejection of the appeal and, if rejected, the reasons for the rejection.

    (2) The notice of appeal shall be liberally construed in order to preserve the rights of the appellant. The appeal agency may reject the appeal for failure to comply with these rules or if the notice of appeal does not state grounds upon which any of the relief requested may be granted.

    Howard Hayes, R&M Engineering, the Community Development Department, and the Planning Commission have been advised that this matter is before the Assembly. In general, the Department and the Commission, have no objection to acceptance of the appeal, although they reserve the right to object to argument by the Appellant on some of the issues included in the notice of appeal.

    The following procedural issues should be decided:

    1. Will the Assembly accept the appeal?

    2. Will the Assembly hear the appeal itself or assign to a hearing officer?

    3. If the Assembly hears the appeal itself, will the Mayor preside, or will he

    designate a member as presiding officer?

     

  4. ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS:
    1. Manager's Report - Action Items:

B. Managers 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

4. Human Resources Committee

5. Lands and Resources Committee

6. Public Works and Facilities Committee

7. Assembly Strategic Policy Committee

B. Board Liaison Reports

  1. ASSEMBLY COMMENTS AND QUESTIONS
  2. 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 audiotape 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.

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