AGENDA/MANAGER’S REPORT

THE CITYAND BOROUGH OF JUNEAU, ALASKA

Monday, November 15, 1999 – 7:00 PM

Assembly Chambers – Municipal Building

Meeting No. 99-34

Submitted by: _____________________________

David R. Palmer

City & Borough Manager


  1. FLAG SALUTE
  2. ROLL CALL
  3. APPROVAL OF MINUTES

1. 8/26/99 - Regular Meeting. No. 99-28

2. 9/13/99 - Regular Meeting. No. 99-29

3. 9/20/99 - Regular Meeting. No. 99-30

SPECIAL ORDER OF BUSINESS

SPECIAL ORDER OF BUSINESS

    1. Swearing In of Newly Elected Assembly Members

Don Etheridge, Jr.

Tom Garrett

Frankie Pillifant

  1. MANAGER’S REPORT FOR AGENDA CHANGES
  2. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS. (Not to exceed a total of 20 minutes nor more than 5 minutes for any individual).
  3. 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.

    1. Ordinances for Introduction:
    1. Ordinance No. 99-33
    2. An Ordinance Amending the Purchasing Code to Provide for the Debarment of Vendors. Presented by the Manager.

      This ordinance provides authority to the city manager to bar city bid awards for goods or services to contractors for up to three years. The penalty could be invoked for certain criminal convictions, contract violations, unsatisfactory performance, or pending bankruptcy.

      This ordinance is modeled after the state debarment statute, AS 36.30.365. It provides a procedure for disqualifying problem contractors from CBJ bids and Requests for Proposals. A hearing process is available in case the contractor disagrees with a proposed debarment.

      This ordinance was prepared at the request of the Assembly and has been reviewed and recommended by the Public Works and Facilities Committee at its October 6, 1999 meeting.

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

    3. Ordinance No. 99-36

An Ordinance Electing to Impose a Motor Vehicle Registration Tax. Presented by the Manager.

This ordinance imposes a motor vehicle registration tax that is added to the motor vehicle registration tax charged by the State of Alaska. The ordinance was proposed to build a fund to allow disposal of junked vehicles that are accumulating in Juneau. The imposition of a $10.00 charge is estimated to raise $245,000. A detailed explanation of the proposed junk car program is included in your packet.

CBJ presently collects a personal property tax on certain commercial vehicles. This ordinance would repeal the existing personal property tax and replace it with a new registration tax for commercial. In all scenarios presented, the fee for commercial vehicles is intended only to replace the existing tax, not generate new revenues from vehicles now taxed as personal property. The Finance Committee considered and recommended a flat $10.00 tax for passenger vehicles and non-commercial trucks as the source to fund the junked vehicle program.

Given projected budget shortfalls, this revenue source offers an opportunity to generate new revenue beyond that necessary to clean up junked cars. It is reasonable to use motor vehicle registration taxes to reduce the $1.8 million subsidy to Capital Transit, or to contribute to street maintenance expenses.

A new motor vehicle registration tax of $25.00 (instead of the $10.00 proposed by the Finance Committee), and increases in motorcycle and dealer plate rates, could raise $620,000, or about $375,000 that could be used for general fund relief.

Tables are included to show the impact of a $10, $20, or $25 fee. Also included is a table showing fees in place in other jurisdictions.

Timing is of the essence. This ordinance must be adopted by the end of December to meet notice requirement for the Alaska Department of Motor Vehicles (DMV). The DMV imposes these fees once every two years. The first revenue from an ordinance adopted by the end of December would be seen in January 2001. Changes to the fees can occur only on the two-year cycle. For that reason, it is impractical to incrementally increase the fees in cycles shorter than two years.

I recommend that this ordinance be introduced with Table 3 rates proposed. If, at the public hearing, the Assembly decides to reduce the fees, it is free to do so without reintroduction of the ordinance.

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    1. Liquor Licenses:
  1. Location Transfer of Liquor License for: Moose Lodge #700

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

    1. Bid Award:
  1. Bid Award E00-179 Augustus Brown Pool HVAC:

The bid was opened on November 8, 1999. The bid protest period expired on November 9, 1999. Results of the bid opening are as follows:

 

Responsive

Base Bid

Alt 1

Alt 2

Alt 3

Total Bid

           

RMC, Inc.

$ 276,000

$ 6,300

$ 7,500

$24,000

$313,000

North Pacific Steel Erectors, Inc.

$ 292,264

8,596

3,768

17,283

$321.911

           

This project consists of removal and disposal of a rooftop air handling unit and installation of a new air handling unit, patching membrane roof, interior painting and miscellaneous related work. Alternate No. 1 is installation of new hollow metal doors and frames at two locations; Alternate No. 2 is replacing hollow metal door frames; Alternate No. 3 is constructing a canopy over the new air handling unit.

Funding source is the State of Alaska Administration Grant and FY/99 General Sales Tax. Total project funds $364,000.

I recommend award of this project to RMC, Inc. in the amount of $313,000.

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  1. ORDINANCES FOR PUBLIC HEARING
  2. UNFINISHED BUSINESS
  1. Last Chance Co-op, Multiple Charities Association Co-op, and Alaska Native Brotherhood Camp 2, Inc. 
    Consideration of Hearing Officer’s Proposed Decision

On September 23rd and 24th oral argument was presented to Jon Tillinghast, Hearing Officer in the Last Chance Co-op, et al. vs. CBJ Sales Tax Office appeal. Mr. Tillinghast drafted the proposed decision affirming the June 1, 1998 Sales Tax Board of Appeals decision which rejected the appellants challenge to the method by which the CBJ applies the sales tax to pull-tab permittees licensed under AS 05.15.100. On October 21st, the proposed decision was circulated to the parties for comment as required by CBJ 01.50.140(b)(3). The proposed decision is now before the body for action. The Assembly may adopt, amend, or reject the proposed decision.

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

  1. NEW BUSINESS
  2. ADMINISTRATIVE REPORTS ON NON-AGENDA ITEMS
    1. Manager’s Report – Action Items:
    1. Haloff Way Maintenance Agreement
    2. Alaska Department of Transportation and Public Facilities(DOT/PF) proposes to widen, extend, and improve Haloff Way. The existing dead-end street is a city maintained street. DOT/PF has acquired new right-of-way and will widen the road. They are requesting that CBJ sign an agreement accepting maintenance of the new road. Because Haloff Way is already a CBJ street, the increased cost of maintenance will primarily be the addition of four streetlights, at the cost of $30.00 per light per month.

      I recommend the Assembly adopt a motion authorizing this agreement.

    3. Parks & Recreation Property Trade USS Ø
    4. The owners of USS Ø, north of Amalga Harbor, have approached the City and Borough with a proposal to exchange their property for two CBJ Park parcels. Rocky Point Beach Access (parcel #0131) located at Lena Point, and Huffman Harbor (parcel #004), south of Amalga Harbor are two parcels of land that they would like included in the exchange.

      The Parks and Recreation Advisory Committee, Assembly Lands Committee and the Planning Commission have all recommended approval to negotiate the land exchange. Any reached agreement will be ratified by the Assembly before final action.

      I am requesting approval from the Assembly to negotiate a land exchange to acquire USS Ø.

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    1. Bartlett Regional Hospital - MRI Funding

Bartlett Regional Hospital is requesting the Assembly’s approval to use the CBJ’s master leasing agreement with Key Bank Alaska to finance $1.67 million in magnetic resonance imaging equipment to replace a seven-year-old unit. The master lease provisions require the Assembly’s approval for all lease purchase transactions.

BRH is requesting to lease the $1.67 million in MRI equipment for a period of 5 years. The master lease agreement sets the tax-exempt interest rate at 80% (bank qualified) of the equivalent Treasury Note market rate. The actual rate will be determined at the time of leasing. The current tax-exempt Treasury Note market rates would result in an interest rate of approximately 4.90%. Using a rate of 4.90% for a period of 5 years would result in monthly debt services payments of $31,500 or $378,000 per year.

The Bartlett Regional Hospital Board reviewed and approved the replacement of the existing equipment on March 19, 1999. The hospital has acquired the new MRI equipment and the lease will be used for financing purposes. Payment of the lease is from hospital reserves.

I recommend the Assembly adopt a motion authorizing use of CBJ’s Key Bank lease for the MRI financing.

    1. NOAA - Lena Point Purchase Authorization
    2. Mayor Egan and I recently visited with NOAA representatives in Washington, DC, including Paul Roberts, NOAA’s Chief Financial Officer/Chief Administrative Officer. It is our opinion that we have sufficient assurances that the Lena Point -NOAA project is moving ahead and that CBJ should exercise its option and proceed with the purchase of the Lena Point property from Point Lena Investments, L.L.C.

      A separate land transfer agreement is being drafted by CBJ and NOAA to address the specifics of the exchange of the Lena Point property to NOAA for the Auke Cape property. That agreement will be back before the Assembly before CBJ trades land to NOAA.

      Funds have been appropriated, no further action is required of the Assembly other than a motion to direct the City Manager to exercise the option and proceed with the acquisition.

    3. D&M Rentals, L.L.C.

A parcel of property owned by D & M Rentals, L.L.C. was inadvertently assigned two parcel numbers in 1997. This resulted in a single parcel of property being assessed and taxed two times during 1998 and 1999. State Statutes include provisions which allow for administrative error corrections up to one year after the payment due date. The 1999 double assessment has been corrected. The 1998 double assessment, which resulted in an overpayment of $2,404.00 in property tax, cannot be corrected without Assembly action. State statute, section 29.45.500(c), allows the governing body to correct manifest clerical errors at any time.

I am requesting the Assembly move to abate the incorrect assessment and direct staff to refund to D & M Rentals their duplicate 1998 property tax payment of $2,404.00.

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    1. Manager’s Report – Information Items:
    1. Departmental Quarterly Reports
    2. Eaglecrest – Constituent Fare Promotion
    3. Collections of CBJ debts
    4. Some PFD recipients received less than the full $1,769.84 issued by the State because CBJ had attached amounts due for some unpaid debts. CBJ collected $81,953.85 for unpaid court-ordered incarceration costs, public defender expenses, and ignored parking tickets. We expect to receive another $80,000 from PFD attachments this year. (An ignored $20.00 parking ticket ends up costing $70.00 after penalties and interest are added).

    5. Calhoun Street Pedestrian Bridge

The Calhoun Street pedestrian bridge, damaged by a local truck, will be repaired by the company that caused the damage by November 16th.

    1. Attorney’s Report:
    1. Quarterly Report

  1. MAYOR’S REPORT ON NON-AGENDA ITEMS
    1. Revised Pending Items
    2. Unappropriated General Fund Unreserved Fund Balance
    3. Assembly Contingency Fund Balance

  1. COMMITTEE REPORTS ON NON-AGENDA ITEMS
    1. Committee Reports:
    1. Committee of the Whole
    2. Finance Committee
    3. Human Resources Committee
    4. Lands and Resources Committee
    5. Public Works and Facilities Committee
    1. Board Liaison Reports
  1. ASSEMBLY COMMENTS AND QUESTIONS
    1. Assembly Organization - Committee Assignments; Deputy Mayor Appointment
  1. CONTINUATION OF PUBLIC PARTICIPATION ON NON-AGENDA ITEMS. (Not to exceed 5 minutes per person or 20 minutes total, whichever is less).
  2. ADJOURNMENT

Agenda packets are available for review at the Juneau Municipal Libraries.

ADA Accommodations Available Upon Request: Please contact the Clerk’s Office 48 hours prior to any meeting so arrangements can be made to have a sign language interpreter present or an audiotape containing the Assembly’s agenda made available. The Clerk’s Office telephone number is 586-5278, TDD 586-5351, e-mail: Marian_Miller@mail.ci.juneau.ak.us.

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