2026-11-04 - Assembly Finance Committee

02:02Mhm.

04:05>> Mhm.

04:58>> Hello.

06:23>> We will bring the special assembly joint

06:25meeting with the Docks and Harbors board

06:27um to order for November November 4th,

06:302026.

06:32Um

06:34Mr. Steininger, would you read the land

06:35acknowledgement, please?

06:38>> We would like to acknowledge that city

06:40and borough of Juneau is on Tlingit land

06:42and wish to honor the indigenous people

06:44of this land. For more than 10,000

06:46years, Alaskan native people have been

06:48and continue to be integral to the

06:50well-being of our community.

06:52We're grateful to be in this place, a

06:53part of this community, and to honor the

06:55culture, traditions, and resilience of

06:57the Tlingit people. Gunalchéesh.

06:59>> Gunalchéesh.

07:01Madam Clerk, will you call roll of the

07:04assembly first and then the Docks and

07:05Harbors board.

07:06>> Thank you, Madam Mayor.

07:08Mr. Kelly.

07:09>> Here.

07:10>> Ms. Adkison.

07:11>> Here.

07:12>> Mr. Steininger.

07:14>> Here.

07:15>> Ms. Hall.

07:15>> Here.

07:17>> Mr. Brooks.

07:18>> Here.

07:18>> Ms. Cosgrove.

07:20>> Here.

07:20>> Madam Mayor.

07:21>> Here.

07:22>> And we have Ms. Niven is absent and I

07:24will look out for Deputy Mayor Smith.

07:28For Docks and Harbors, Mr. Leiter.

07:31>> Here.

07:34>> Mr. Emerson.

07:35>> Here.

07:36>> Mr. Brox.

07:38>> Here.

07:39>> Mr. Hor- Horchover.

07:45Mr. Suter.

07:46>> Here.

07:50>> And we have Mr. Ridgeway online, but we

07:52do have a mic issue, so I will look out

07:54for him joining us.

07:56And you have quorum.

07:57>> Thank you. Appreciate that. Any changes

07:59to the agenda?

08:01Seeing no changes, then we will consider

08:03the agenda approved.

08:05Go right into topics. So, introductions

08:08and all we're looking for is names and

08:10how much time you've been in your

08:12particular spot.

08:15Chair Suddock.

08:16>> Thank you, Madam Mayor. Um my name is

08:18Jim Suddock.

08:20I'm in the first year of my second term

08:23on the Docks and Harbors Board and um

08:27still having fun, so.

08:30>> Perfect. Thank you for your service and

08:32for a vet, too. You'll be busy tomorrow.

08:35Mr. Leiter.

08:36>> Uh my name is Matt Leiter and this is I

08:39think my sixth year. So, I'm coming to

08:42the end of my second term this summer.

08:46>> Mila Cosgrove, I'm an Assembly Member

08:48and I have 10 days in.

08:52>> Tyler Emerson, uh I think I'm in I'm in

08:55in my second term. Uh first term was I

08:58think a little short. I think I got here

08:59mid 24, something like that.

09:05>> Nano Brooks, I'm in or going on to my

09:08second year of my first term.

09:12>> Neil Steininger, just starting my third

09:15year of my first term.

09:17>> Maureen Hall, I'm third year of first

09:19term.

09:22>> Steve Box and I'm just on my third month

09:25of my first term.

09:29>> Uh Ella Adkison, technically second year

09:32of my first term, but actually fourth

09:33year on the Assembly.

09:35>> Thank you for that, Mr. Kelly.

09:38>> I'm Paul Kelly on the Assembly.

09:41Um 10 days into my second term.

09:46>> Thank you. And did we get Mr. Ridgeway's

09:48mic fixed?

09:49And do we see Mr. Horseover?

09:53All right, thank you for that.

09:54Um so, with that we'll jump into the uh

09:57agenda, but give me 2 seconds.

10:05Sorry about that. Um

10:08update on proposed passenger for hire

10:10increase process. Jim Souter.

10:14>> All right, thank you,

10:16Madam Mayor. Um

10:18So, we started a

10:22process to

10:24look at and reevaluate the passenger for

10:27hire

10:28fee that we charge basically lightering

10:30the tourists across the dock in Statter

10:32Harbor and came up with

10:35the fact that we need to do increase it

10:36in order to stay current with

10:40uh staff requirements, projects that

10:42need to be completed out there, um

10:45recapitalization,

10:46and um just basic general overall use by

10:50the tourism industry there at Statter

10:53Harbor. Um we've gone through our um

10:58public process. We've had a couple of

10:59different meetings. We've had numbers of

11:02different um

11:04emails back and forth pro and against.

11:08Um

11:09And I believe that we have sealed

11:12everything that we need to do and it

11:14will probably be coming in front of the

11:15assembly.

11:17Um I'm not sure exactly when, but maybe

11:19in a week or two. Um

11:23Uh

11:23and that's that's kind of my update

11:27on the passenger for hire process. If

11:30there's any questions, I'd be more than

11:31happy to try and answer them.

11:34>> Any questions on that or any member of

11:36the Docks and Harbors Board want to

11:37speak or Mr. Ukatish if you want to say

11:40anything on that topic? So.

11:43Comments, questions?

11:47Mr. Emerson, you look like

11:49>> I just wanted to comment. I think

11:51the rate that we came up with was

11:53somewhat

11:55uh we we hadn't really considered if you

11:58might consider giving us back the

12:01seafood tax. So,

12:04feel like maybe

12:06if there was something

12:08I don't know.

12:09It is what it is, I guess, as as it

12:10stands, but I guess that would be worth

12:12noting that I don't think we thought

12:14that money was on the table as far as

12:16perhaps coming back.

12:20>> I'm going to look at the port director

12:21because

12:23I thought this money was for capital

12:24improvement projects more than operating

12:26expenses, so

12:28but I could be wrong.

12:31>> Uh thank you, Mayor. So,

12:33it just to back up a little bit. So,

12:35currently that passenger for hire fee is

12:38$2.05. It's adjusted annually CPI, but

12:41that is what somebody pays

12:43um for fishing and whale watching

12:45charters that go across any of our

12:48facilities, but 98% of them are all at

12:51Statter Harbor.

12:52We were looking at that fee primarily

12:55because what now that we have Statter

12:57Harbor completely built out or at least

12:59the passenger hire um portions, which

13:03took four phases over several years. Um

13:07we actually thought that there would be

13:09less um

13:12uh staff oversight

13:15than um

13:17what really what is observed this year.

13:19So, we've got very nice facility, very

13:21efficient, but we have now 272,000

13:25passengers coming through there. So, we

13:27originally looked at this

13:29um

13:30a fee increase as a need to augment

13:33staff at that facility.

13:36As uh

13:37as the Dock Harbor's board started

13:39talking about this, then we started

13:41looking the question was, "What are our

13:43long-term needs out at Statter Harbor?"

13:45And so, then that then the question is,

13:47"Well, we know that we need additional

13:49staff to handle

13:51uh all the charter operators at

13:53Statter."

13:55Then the question is, "Well, how much

13:57what should the the What are the needs

14:00out there?" And that's where we landed

14:02on

14:03increasing it from $2.05 to $7.50.

14:08And um Mr. Emerson is correct that

14:10that's somewhat of an arbitrary number,

14:13but it's also based on

14:15um

14:17what we what we thought would be a loss

14:19of revenue due to the raw fish tax or

14:22the uh commercial the the fisheries

14:25business tax. So,

14:28we've went through all the process.

14:29We've heard concerns, pros and cons

14:32about the uh

14:34uh the the rate, but that that is the

14:36number that we were looking at. And

14:41you could throw in that raw fish tax if

14:44we are going to get it in the future,

14:46that could be adjusted, but we'd have we

14:48have tens of millions of dollars of uh

14:51new infrastructure that needs to be

14:54built out at Statter Harbor. Um so,

14:56that's

14:57um we're just trying to be proactive and

14:59being able to respond to uh the needs of

15:02the community.

15:05>> All right, any other questions from

15:06anybody?

15:08Um

15:09Sorry, Mr. Brooks. Thanks.

15:12>> Thank you, Madam Mayor.

15:14I know that we just had a meeting

15:16recently where we're ironing out, you

15:18know, the uses of that raw fish tax and

15:21the language we put in were like

15:23extraneous financial circumstances. So,

15:28the I guess the question is was this

15:30rate increase under the assumption that

15:33we'd be taking that raw fish tax every

15:36year or was it just based off of the one

15:38year?

15:42>> You can answer that.

15:43>> Sure. Thank you. Uh

15:46Mr. Brooks,

15:47the loss of

15:50the raw fish tax was definitely

15:52considered when we were um working

15:55through the process.

15:56Um I

15:59if it were to be

16:01which I think now it probably is

16:04returned, maybe moving forward in the

16:05future,

16:06we could take a look and say maybe we

16:08could

16:09chisel at that a little bit. Um

16:12the big pretense was

16:16the recapitalization of the breakwater

16:18at Sitka Harbor and recapitalizing the

16:21existing float system out there.

16:24That's That's the meat and potatoes of

16:25it.

16:27Yes, the the raw fish tax definitely did

16:30come up in the topic of conversation.

16:33So,

16:34I hope that answers your question.

16:36>> Yep.

16:38Um

16:39And one of my questions was is are we

16:42[clears throat] looking at increased uh

16:44fees for any other user group or is it

16:46just the whale watching boats because

16:49they have such use right there and it

16:51sound like you need more staff.

16:53>> Um No, we we're

16:55we're going to look at everything out

16:57there. Um the yachts, for instance, they

16:59tie up to the uh breakwater now. There's

17:02a reservation system.

17:04Uh Ms. Carina Buckland is working

17:07uh on overhauling that entire

17:09reservation system and how the the fees

17:13and the uh

17:15how the fees and the program all works.

17:17She's right in the middle of it and uh

17:20I've asked her when she gets it finished

17:22to bring it to the board and present it

17:23to us.

17:25>> Okay, that sounds good. Um go ahead, Ms.

17:28Hall.

17:31>> I I should probably know the answer to

17:33this, but our our commercial fishing

17:36fleet, is that spread out throughout all

17:38of our harbors or is it concentrated in

17:42um

17:43you know, I mean, do we have a fair

17:45number of commercial

17:48>> I'd say it's equally represented at all

17:50the harbors or I'd say actually probably

17:52more in the downtown

17:54basins just cuz it's a cheaper moorage

17:56and

17:58most folks There's not as many as

17:59seasonal spot or permanent spots at Auke

18:01Bay, so if you have a transient spot,

18:03it's hard to plan around working in and

18:05out of Auke Bay. I think Mr. Box has a

18:07permanent stall there, so that lets him

18:09work there pretty efficiently.

18:12>> But but it kind of depends if you're

18:14just looking at the gillnet fleet, they

18:15do you have a little bit of a seasonal

18:16thing as they head up

18:18>> Yeah, that's true.

18:19>> to Auke Bay in the later parts of the

18:21summer, but

18:22it's pretty stable all around I think.

18:25So follow up so be safe to say this is

18:28mainly tourism related impacts that

18:32we're looking at. Yeah.

18:35>> Mhm.

18:36>> Okay. [cough and clears throat]

18:37Um

18:38So my question and I've already told the

18:42park director this question and this is

18:43just a discussion with the bodies

18:46if we know there's congestion and we

18:48know we have to increase fees

18:51and we know that the visitor industry

18:52task force is looking at whale watching

18:55should we be putting a moratorium on

18:57permits there while we're dealing with

19:01the congestion?

19:03So that's my question. You guys can

19:05think about that. I'll go to you Mr.

19:07Chair cuz you have the

19:08you make the big bucks.

19:10>> Thank you Madam Mayor.

19:12>> [laughter]

19:12>> I think

19:13um

19:15Yeah, I've definitely been thinking

19:17about this not only

19:20at the harbor department level but more

19:22so on the visitor industry task force

19:25we've discussed it quite a bit.

19:28Haven't put it towards the body. We

19:29haven't had it as a topic so much on our

19:32agenda at the docks and harbors level.

19:35It's something that we could definitely

19:37do.

19:41I guess I would say that I was kind of

19:43waiting to see how the that have rolled

19:46out their recommendations before we move

19:47forward with that.

19:49Does anybody else have anything?

19:52>> I I

19:53I would probably be not inclined I I'd

19:56prefer larger fee increase so

20:00kind of capture some of that revenue for

20:01docks and harbor and and instead of

20:04just artificially cutting it off and

20:07granting an essential monopoly to the

20:10current operators.

20:11I think

20:13that fee increase is going to serve as a

20:16slow slowly in the growth by itself so I

20:19mean that that kind of achieves the same

20:21goal and the same effect.

20:25>> Any other comments?

20:29Mr. Leiter.

20:31>> Um thank you. Um

20:35one of the things that I've tried to

20:37keep in my brain um

20:40throughout this process is the number

20:42we're asking for is the number we feel

20:44like we need to

20:46um have for the future and to have to

20:48function.

20:50And so

20:51um

20:53this is you hear about it at every

20:55meeting that you go to with me, but

20:57title 85 is hard to wrap my brain

20:59around. Um

21:01And so in my mind, policy is policy. If

21:03you guys want to

21:04put a moratorium or not, that's that's

21:06totally different than than this number

21:08we're asking for, which is

21:10what we feel like we need to function

21:12regardless of what the policy is.

21:13>> [snorts]

21:14>> That's my my opinion, not necessarily

21:16the board's opinion.

21:18>> Yep. And just to make clear, that is

21:19just my question. The assembly has not

21:21even discussed it yet. So, it is not in

21:23the opinion of the assembly at all. I

21:25just why we were talking about fees and

21:27everything and we know that the visitor

21:29industry task force is working on it,

21:31but I have no problem waiting to see

21:33what the results of the visitor industry

21:35task force. I just thought it'd be a

21:37food for thought for everybody. So, but

21:39I don't see anybody raising their hand,

21:41so we'll go to item

21:43um three, status of the Sitka home

21:45property.

21:46Mr. Chair.

21:48Oh, Mr. Brooks.

21:50>> Thank you, Madam Mayor. I I just had one

21:52uh one more thing to mention on there. I

21:55uh

21:56it's just food for thought and

21:57perspective when we're going into these

21:58kind of discussions and I talked with

22:01some of the uh you know, tour company

22:04operators and you know, their

22:08their perspective on this is that, you

22:11know, it's they they feel like it is

22:15very targeted at them, but also

22:17their ability um

22:21their ability to adjust with these rates

22:25um

22:26and their

22:28for some of the operators I've spoke

22:29with, they're expressing to me that it's

22:31like, you know, with the um ship cap and

22:35the passenger cap, that has already

22:37limited the, you know, their ability to

22:39leverage that industry of visitors to

22:44uh ramp up their businesses. And so, the

22:48And then, some of their tours are sold

22:50on a flat rate for multiple years. So, a

22:54lot of these rate increases will, you

22:57know, they'll

22:59be a direct impact on their

23:02uh bottom line. And they don't have a

23:04way to, you know, raise uh

23:08raise it based off of the number of

23:10visitors, you know? It just goes to

23:12higher costs across the board. So, it's

23:14just something

23:15worth considering as we go into these

23:17discussions that we're going to be

23:19collecting more from this group, but we

23:22kind of limited the amount of uh people

23:25that they can capture money from, in a

23:26sense.

23:30>> Thank you for that, Mr. Brooks. Um

23:33We are trying to be sensitive to the

23:34whale watching fleet, but um

23:37remember why we have limited the number

23:38of tourists.

23:40They haven't They don't take every

23:42tourist out, so they have to figure out

23:43better what more ways to get the

23:45tourists to go with them.

23:46But uh we are remain sensitive to that.

23:49I I chat with the whale watching

23:51community often. Um

23:53So,

23:55status of Sea Drone property.

23:57>> Thank you, Madam Mayor.

23:59Um so, the Sea Drone property, we were

24:01approached by Gold Belt Well,

24:03I think the Docks and Harbors Board

24:05um randomly throughout

24:08maybe the last

24:097, 10 years has been approached and

24:15by

24:15>> Could you give a little explanation of

24:17this for our newer members?

24:18>> Oh, yeah, got you. I'm sorry.

24:20So, the Sea Drone property is

24:23just over here. It's the port director's

24:25office. Gold Belt owns it. It's I'm sure

24:27you everyone knows where it's at.

24:29Um

24:30It's a hodgepodge of

24:33cut-up parcels

24:34and due to code

24:37no one can really build setbacks and and

24:39and such anything other than what's

24:42already there.

24:43So, Goldbelt

24:45proposed buying the city's portions. I

24:47think there's three pieces there. They

24:49total about a third of an acre.

24:51Um and then they would probably most

24:53likely vacate all those property lines

24:54and they've got a

24:56a really nice rendering of a building

24:57and a dock they'd like to build there.

25:02So, recently they came recently a a year

25:05ago, I think. They came to us and

25:08we went back and forth and some of the

25:10board members

25:12were for and the majority of them were

25:15against selling for market value, which

25:18is about 610,000,

25:21I think.

25:22630 630,000, thank you.

25:25And ultimately

25:27the board made a

25:29Do you remember what it was? Was it a

25:30million two offer?

25:33And Goldbelt

25:34>> Yeah, it was either 1.2 or 1.5. I I

25:37don't recall.

25:38>> Goldbelt wasn't interested at that

25:39level.

25:40Um

25:41but

25:42they've been going back and forth

25:43between the Harbor Board

25:45and um

25:47for gosh

25:49like I say, seven or eight years, I

25:50think they've been trying to hash this

25:51out.

25:52So

25:55I know that they're still interested but

25:57they don't want to pay really more than

25:59market value.

26:01Um I don't know if they've approached

26:03the assembly at all.

26:06But that's

26:07pretty much what I know about that.

26:10>> Well, they have grumbled that the price

26:11was way above what they originally

26:13thought it was.

26:14So

26:19Mr. Lieder is raising his hand, too. He

26:20might save you. Call a friend. But

26:22that's okay. I I um

26:25it's a year ago and so my brain was

26:27fuzzy and so I I went back through some

26:29of the misfits minutes so I could try to

26:32remember

26:33uh why I was thinking what I was

26:36thinking and and I wish um

26:38we have some other board members who are

26:40really eloquent on this and and do this

26:43you know, in this realm for a living.

26:45That's not me. But one of the things

26:47that that was um

26:50I think in a lot of our minds at the

26:51time was

26:53the

26:54uh

26:56the appraisal was $630,000 and and we

26:59make around

27:0260K in in lease from that property. But

27:06you can

27:07again, as Mr. Suter said, there's

27:09different parcels that all are kind of

27:12act together and so it's not an exact

27:14replica that that's the 60K we'd make

27:16from this exact piece, but it's pretty

27:18darn close.

27:19And so

27:21there was this concern that we already

27:23make a lot of revenue from this property

27:25and um selling it, we're not going to

27:27have that revenue anymore.

27:29There was a concern that the appraisal

27:31didn't take into a fact um what we felt

27:35like Well, I shouldn't say we.

27:37I'm It's not my realm. What some of us

27:39felt like was um an accurate assessment

27:43just considering the

27:45um

27:45the subport dock that's going to come in

27:47and all the tourists who are going to

27:48walk by there and and one board member I

27:50remember said that this the way they

27:52appraised this made it

27:54worth less per square foot than his own

27:57home and residential property, which

27:59kind of struck a lot of us as

28:01um

28:02maybe not fair.

28:04Um and so I think that's

28:06where several of us were coming from at

28:08the time.

28:10We had offered to uh

28:12our thought to them initially was we

28:14don't feel like the appraised value is

28:16is fair been, but we asked them to make

28:18an offer. They ultimately uh opted not

28:21to make an offer and and so we

28:23threw out a number and that's what we

28:24came up with.

28:27>> Okay. Any questions or comments on this

28:29one? I just put it on here um

28:32with Chair Suter's permission.

28:35Just because I didn't

28:36I'm just trying to catch everybody up on

28:39the C drone property in case it was

28:40asked or something, so.

28:42Is Mr. Ridgeway, are you trying to say

28:43something?

28:45>> Yeah, Madam Mayor. Thank you very much.

28:47Uh just another

28:49uh point. It's got a long history. Um we

28:52had originally when we were originally

28:53approached by Goldbelt,

28:56um

28:57we had worked out spent at least a year

29:00working out a land exchange. And uh

29:04and they the folk we were dealing with

29:06agreed to it.

29:08And then unfortunately uh they took it

29:09to their board and the board decided

29:12against it. Just a a little bit more

29:13history on that.

29:17>> All right, thank you.

29:18Anything Mr. Brooks?

29:21>> Thank you, Madam Mayor. Um you were

29:23mentioning the types of revenues I get

29:25brought in from the property being

29:27around 60k. Is there uh is that kind of

29:29like the upper limit capacity of what

29:31revenues I could bring in or is there a

29:33way to maximize or increase those in any

29:35way?

29:39>> You know, there's there's nothing that

29:40can be built on those parcels as they

29:43are. The city can't do anything and

29:46Goldbelt can't do anything. So, if if

29:49there's going to be an improvement in

29:51the waterfront in that area,

29:53those need to be combined.

29:55And those

29:56property lines need to be vacated.

29:58So.

30:00>> Mr. Brooks.

30:01>> Well, it's just a follow up on it. Um uh

30:04more

30:05less along the lines of aspirational and

30:07more along the lines of like uh

30:09bolstering the current prac- you know,

30:11current revenue streams that are

30:13happening. Is there any way to increase

30:14those?

30:16>> I'm not sure if we're bound by

30:18code on what we can lease on the

30:22percentage versus fair market value.

30:26I think there might be I'm looking at

30:28Mr. Yukatel. He He might know.

30:32>> Mr. Yukatel.

30:33>> Not sure if I have an adequate answer,

30:35but uh

30:36really this the areas that Mr. uh Sidor

30:39spoke about that they're small parcels,

30:42and to do a development a real

30:44development you that's why you can't

30:47have

30:49buildings that cross property lines. So,

30:51that's the the issue at hand that one

30:54one entity probably can develop this

30:57area that's

30:59needs development.

31:01It It could be

31:03that you know, CPJA could buy the whole

31:05thing from

31:06from um

31:07buy the property owned by Gold Bell, and

31:10then lease it back to them to do it, but

31:11that's there just like everybody wants

31:14to be the property owner in the and so

31:15the proposal is for them to do it um for

31:18them to buy CPJA property and then

31:21develop um their vision. But as far as

31:24having other available land Everything

31:28um

31:29we've got a little bit of kind of I'll

31:31call it useless land that we own that

31:34doesn't help them

31:36in development of their property. It It

31:39just I I should have been prepared and

31:41showed a a picture of the the different

31:43parcels, but there isn't a lot There

31:45isn't available land that makes uh

31:49development um

31:51beneficial to Gold Bell at this point to

31:53lease them more land. Um

31:56if if the question was how we lease

31:58property, um we follow code and um

32:03it's assessed at uh

32:06it's it's appraised at uh fair market

32:09value. Um

32:11There's We've had other board

32:13discussions about whether fair market

32:14value should be the

32:17process that we use as opposed to

32:19There's There's various various other

32:22um

32:23appraisal techniques that are used

32:26commercially, but our code requires um

32:31fair market value of

32:33and there's more language to that, but

32:35fair market value of of a reasonable

32:38um purchase for its tenant users. I'm

32:42not speaking I'm not putting it

32:44correctly, but we are limited by the the

32:48means that we appraise

32:50CBJ owned property.

32:53>> Thank thanks. Just so just to summarize,

32:56the revenues that are being generated

32:57from that are all through leases and we

32:59can't really mess with the leases.

33:03>> That is correct.

33:05>> All right.

33:06Uh Mr. Emerson.

33:08>> Uh I would just say this this is kind of

33:09a

33:10tough one for me and like waffling back

33:12and forth.

33:13I feel like like I think the perceived

33:15kind of or the differences between the

33:17board is

33:18this kind of incongruency between the

33:21fair market value to

33:23you know, an uninterested third-party

33:25versus what we perceive it to be worth

33:28to Goldbelt and I think

33:30a lot of the board wants to capture some

33:31of that delta with with the purchase

33:34price and

33:36I guess I have a I'm not exactly sure

33:38what the right answer is, but I think

33:40that's like

33:41to me the main issue is like how do we

33:43just

33:44to some guy on the street maybe it's

33:46worth 600, but we know we know it has

33:47more value to Goldbelt, so it's like how

33:50much as a public entity do we want to

33:52try to capture from that but or or not

33:55and I don't know. It's it's kind of an

33:57interesting issue.

33:58>> Glad you're wrestling with it and not

34:00with us. Uh Mr. Chair.

34:02>> Uh thank you, Madam Mayor. It it's worth

34:04noting too that

34:06we also rent

34:08from Goldbelt for the Port Director's

34:10office.

34:11Um

34:12that rent is about $60,000 a year and

34:16the revenue that we generate from these

34:18properties is about $63,000 a year.

34:22Leave it at that.

34:25>> [laughter]

34:28>> All right, I don't know if there's any

34:29more questions on this topic, so

34:32item number four potential impacts to

34:33Docks and Harbors from West Douglas

34:35Goldbelt project. Uh so the reason this

34:37is on here is uh um some of us were

34:40surprised at the

34:42conditional use permit for Goldbelt that

34:44there was no comment from Dockside

34:46Harbor and

34:48I was just going to

34:49ask you guys why you didn't think you'd

34:52have any impact especially in Statter.

34:56>> Thank you Madam Mayor.

34:58We definitely remember this coming

35:01through

35:02and we put it to the body and there was

35:05no

35:06>> Mr. Ridgeway, you need to mute yourself.

35:07We're getting a lot of feedback from

35:09you. The uh clerk is muting you for you.

35:12>> [laughter]

35:15>> Thank you. So, we put it through the

35:16body. Um

35:18Carl brought it to us. We had it at at

35:19an ops meeting and the consensus was

35:22that we really didn't have much to say

35:25on the conditional use permit.

35:27I believe at that time we felt that

35:31if Goldbelt was going to I don't think

35:33we knew what their plan was as far as

35:37bringing people

35:38from their site on West Douglas into

35:40Statter Harbor. We know that's a

35:42potential now. We also know that they've

35:44been talking with um Allen Marine.

35:48So, we're not sure how those

35:50relationships are going to develop.

35:52We figured that

35:54if we were asked to accommodate them,

35:57you know, bringing passengers per se

35:59buses to go to the glacier if you will

36:01that we didn't think that that would

36:04be a huge issue.

36:05Um

36:07given that Goldbelt really hadn't said

36:09what their plans were.

36:11Um so, there was really no comment from

36:13the body.

36:18>> Anybody else comments, questions on

36:20that? Mr. Emerson.

36:22>> Yeah, I think that was kind of my

36:23thought of just the uncertainty of not

36:26knowing their plans. Are Are they going

36:28to have a full scale

36:31whale watching operation out there? Are

36:33they going to try to utilize the

36:35existing

36:36city infrastructure? I guess I wasn't

36:38quite sure.

36:39Or maybe that's just I haven't

36:41looked into it enough.

36:43>> All right now, their conditional use

36:44permit is for a dock and a receiving

36:46facility and that's it. So, those

36:48passengers have to go somewhere.

36:51So.

36:52You might consider commenting is all I

36:55would say. Anybody else from the

36:56assembly? Um

36:58Mr. Box, since he's a guest of the

36:59assembly.

37:03>> Yeah, I just think that um

37:06the development of that we need to be a

37:07little bit careful because

37:10um

37:11in Auke Bay what's happened is it's been

37:13overwhelmed.

37:15And a lot of users of Auke Bay now go

37:19out to

37:21North Douglas

37:23to get away from the chaos in

37:26Auke Bay. And just speaking for

37:28residents, you know, I think that it's

37:31mainly used right now the parking lot's

37:33full of

37:34residents.

37:36And there's a few vans and whatever with

37:39the

37:40um with the kayak operation that's out

37:43there now.

37:45But if that gets complete if if

37:47something is developed there

37:50I don't you know, we don't know how they

37:51want to use it.

37:53If something gets developed there and

37:55then becomes overwhelmed out there also,

37:57which does have potential because right

38:00now there is no restriction. I mean, the

38:02whale watching thing is open-ended.

38:05And it seems like every year there's a

38:07boat or two or three more boats or

38:09whatever brand new.

38:12So, I just think that the push back from

38:15the public is going to be

38:17huge on that myself. Uh as far as what

38:22the full intention of that is for.

38:27Thank you.

38:28>> Um before I get to you, Mr. Atkinson,

38:29unfortunately the push back is a

38:31conditional use permit. And if they get

38:33the conditional use permit with no

38:35nothing from docks and harbors, then

38:36they have the conditional use permit and

38:38the city has very little push back after

38:40that. So,

38:41I don't know if we've hit the deadline,

38:42but I would think that you guys should

38:44consider potentials like I didn't even

38:46think about the North Douglas.

38:48So, anyway, Ms. Atkinson.

38:51>> Uh thank you, Madam Mayor. Uh it's been

38:53a while since uh we had Goldbelt come to

38:55the Visitor Industry Task Force, but

38:57they did mention uh Auke Bay Harbor and

39:01um potential impacts there. And so,

39:04uh

39:05I would maybe consider looking into what

39:08they've said publicly um even if their

39:10plans are a little amorphous right now.

39:13I don't think it will involve no docks

39:15and harbor structures. So, uh

39:18comment if the deadline has not passed

39:20may be a good idea.

39:22>> And remember, it can be just potential

39:24impacts rather than just impact impacts.

39:27Anybody else on this one?

39:31You guys are quiet crowd tonight. This

39:33is our chance to chat with each other,

39:35folks.

39:36>> [laughter]

39:37>> Okay, you're just waiting to build

39:38things, I can see. So, um

39:41uh so, number five, proposed 1% sales

39:44tax initiative projects. And um I see

39:47you have uh three of them here. Well,

39:49you have a cetera, so you probably have

39:51more than that. And there's lots of

39:52pictures in the packet. So, um

39:57I would ask you to rank them tonight.

40:00If you can without having a meeting and

40:02if you need to have a meeting and rank

40:03them separately. I'm not making any

40:05promises, just saying, but uh

40:08you got lots of projects going on.

40:10And thank you, Mr. Ukatele, or your

40:13staff for all these pretty pictures.

40:17Do you want to do this, Mr. Ukatele?

40:20>> Thank you, Mayor. So, um

40:22on behalf of Docks and Harbors, we we we

40:24appreciate the opportunity to meet with

40:27uh the

40:28assembly

40:29once a year, but also, more importantly,

40:33once every 5 years for the opportunity

40:36for consideration for the 1% sales tax

40:38initiative. This is something that

40:40um is really drives our our program. Um

40:45Docks and Harbors board and staff is

40:47always always willing to talk about

40:50operations or

40:52um

40:53impacts to harbors.

40:55But,

40:57we also pride ourselves on planning and

40:59and constructing infrastructure. So, the

41:02ability to have a discussion and just

41:04tee up things as part of the 1% sales

41:07tax initiative is very important

41:10uh to docks and harbors. I will say that

41:13just to remind uh um or just to state

41:16that the 2027 1% sales tax docks and

41:19harbors was very grateful to get $6.5

41:21million

41:22uh as part of that process. We used that

41:26um to complete uh

41:30Aurora Harbor. So, that took us a dozen

41:32years, but we've always were leveraging

41:34that money with uh um lastly Department

41:38of Transportation Municipal Harbor Grant

41:40money. We also used that $6.5 million

41:43for

41:45um

41:46uh replacement of the approach boarding

41:50floats at Tak Harbor, which is now an

41:53elevated walkway, and that was a 75/25

41:57um percent match with Fish and Game

42:00Grant. And then, we also used that money

42:03for

42:04um

42:05dredging the Die Pack

42:08wayside park, but the Die Pack

42:11drive-down float. And so, that's

42:13something that it's a kind of a one-off

42:16that docks and harbors has management of

42:18that facility, the drive-down float.

42:21But, it's something that we would be

42:23hard-pressed to use harbor funds to do

42:26that dredging. So, we're very grateful

42:27for all of that. So, that money is still

42:30There's still money in that

42:32um to be used to leverage an um an

42:35upcoming

42:37um drive-down float at um Aurora Harbor.

42:42So, we're still using that money that

42:44was appropriated 5 years ago. So, that's

42:46just

42:47uh teeing things up for potential

42:50projects moving forward. And so,

42:52um what's shown here is the state of

42:56Harbor breakwater. So, this existing

42:58state of Harbor breakwater

43:01um is 40 years. It's um

43:05It's getting close to the end of its

43:07useful life. We're seeing more and more

43:10maintenance issues.

43:12Breakwaters, jetties, groins are a

43:15federal responsibility. So, we have the

43:17opportunity with the Army Corps of

43:19Engineers, and after many years of

43:21lobbying them,

43:22um

43:232 years ago they took on

43:26a feasibility cost analysis, which is

43:28the first phase in recapitalizing that

43:30breakwater. So,

43:32we will have a um

43:35draft report on December 7th of this

43:39year that will lay out um what

43:44uh the what what we think the Army Corps

43:48is proposing to do. And so, that's that

43:50um

43:53This will be the new breakwater.

43:56>> Uh Mr. Uccello, could you grab your mic

43:58and bring it over there? So,

44:00maybe Brecken can kind of use the So,

44:04that's this will be the new proposed

44:06breakwater. This is the existing

44:11Oh, I'm sorry. Um

44:13>> They're correct.

44:14>> Yeah, the the existing breakwater is

44:15there. And then what um

44:18the Army Corps [snorts] has just

44:20penciled in is an expansion.

44:24Don't pay attention to that. We probably

44:26won't put transient moors. We with

44:30stalls, we get a lot more boats in. But

44:32anyway, this

44:34proposed

44:36breakwater, floating breakwater,

44:39um

44:39it'll be anchor staged just like the

44:41existing. And we think the estimate's

44:45going to come in about $125 million. So,

44:48the federal government's responsible for

44:5190% of that. And we as the local sponsor

44:57are responsible for 10%

44:59and then we're responsible

45:02for another 10% of maintenance over the

45:05next 30 years. So for rough numbers, I

45:08always say it's an 80/20 match, but I

45:11just want to be precise in this group

45:13that it's

45:14really it So we're going to need $20

45:19for to recapitalize

45:22the the breakwater and then by extending

45:26out here, we'll have the opportunity to

45:29do more expand State Harbor more because

45:34we know we have a

45:35we right now we have a

45:37basically a 15 to 20 year wait list for

45:40the existing stalls in State Harbor. So

45:42we know we have a need out there. So um

45:46and then the first item that we talked

45:48about was increasing the passenger for

45:51hire fee

45:52and part of that discussion part of that

45:55algorithm was to say

45:59um we're going to need

46:01to

46:02to bond

46:03to bond for $10 million projects. We're

46:06going to need $1 of new revenue for 15

46:10years. So that's part of that um

46:13decision of needing $7 of of new money.

46:18So that's

46:20this is uh

46:21I want

46:23this is one of the highest priorities

46:24for the Dock and Harbor's board is to

46:27come up with that local match for the

46:30State Harbor breakwater

46:32um

46:33recapitalization.

46:34>> Okay, who has questions?

46:36Or comments from the board?

46:40>> Um for the old breakwater, are you

46:43planning on replacing that with

46:44somewhere that boats can

46:46uh tie to or what happens to the old

46:49breakwater?

46:50>> So Mayor what

46:52when the Army Corps builds a new

46:54breakwater, we'll just keep the existing

46:56breakwater, use it as we always have. Um

47:01and then we just know that we have the

47:02potential to expand the harbor and that

47:05expansion, rough numbers, is going to be

47:08another $100 million project. So, we

47:10have

47:11tens of millions of dollars of of uh

47:14future projects just in in Statter

47:16Harbor.

47:17One thing that uh I'll I'll say with the

47:20Army Corps, they are

47:23adamant about not allowing us to use

47:27that breakwater

47:28to tie up vessels. We're always So,

47:30we're always looking for

47:32uh more moorage and they

47:34they are

47:36they will not um entertain um

47:39that option.

47:41>> So, the new breakwater will just be a

47:42breakwater.

47:43>> Yes, sir.

47:44>> works.

47:46>> Thank you, Madam Mayor. What is the um

47:48Army Corps's timeline for the design and

47:51engineering work on this and uh what are

47:53the funds needed to complete that?

47:56>> So, we're right now we're in

47:58the the first 3 years of the

48:00feasibility. So, we're 2 years into a

48:023-year feasibility study. So, we'll have

48:05a a draft report in December 7th and

48:09then they will have the final report to

48:11us in September 2027.

48:14So, Docks and Harbors um

48:17this feasibility analysis is $3 million

48:21um split with the federal government and

48:24local sponsors. So, um Docks and Harbors

48:26has already committed $1.5 million to

48:29this.

48:30Um we will start There's another um

48:33milestone in January that we will be

48:35able to start petitioning or lobbying

48:39um

48:41through the WRDA um Water Resources

48:44Development Act, which funds the uh

48:47uh

48:48uh the Army Corps will start the process

48:51as early as uh January to say we want

48:55the federal government to consider the

48:58um

48:59construction funding for this project.

49:01But again, it's going to take lobbying

49:03effort and being persistent. So, there's

49:04no guarantee that we'll go right from

49:08um,

49:09the final report to construction, but

49:11we're optimistic.

49:18>> Mr. Ms. Cosgrove.

49:19>> Director Yukitol answered my question in

49:21his explanation, Mr. Brooks.

49:23>> Um, looking at your little chart there,

49:26how much of that are you trying to get

49:27from the 1%?

49:30>> That's probably a better board question

49:32than my question. I

49:38>> Uh, anything would be grateful.

49:41>> All right.

49:42Well, I I can see if we this is get to

49:44decide on it. We'll have to probably do

49:46a combination of a 1% and perhaps a

49:48bond.

49:49So,

49:49cuz I don't know that. I can't remember

49:51what the 1% is off the top of that head,

49:54but I think that's about half.

49:57>> [laughter]

49:57>> Mr. Mr. Barr.

50:02Or maybe it's more more than the 1%.

50:04>> Yeah, thank you, Madam Mayor. I'd want

50:06to do some math. The numbers have

50:08changed substantially since the last

50:09time we had the 1%.

50:11>> Yeah, okay. Mr. Kelly.

50:13>> Thank you. I was just kind of um,

50:16thinking about how uh, you were saying

50:18that there is a

50:21waiting list for

50:23people who would want to tie their

50:24vessels up. Would a bond then be the

50:28right mechanism that we would have in

50:30order to to to get those funds now and

50:33then kind of leverage that interest in

50:37tying up more vessels?

50:40>> Mr. Yukitol.

50:42>> Yeah, it's uh, through the uh, Mayor um,

50:45Mr. Kelly,

50:47I guess we we're not uh, we're still

50:49looking more short-term. We know

50:53we do collect like $50 a year for

50:58people to be on the wait list. So,

50:59that's not

51:01real money, but there's a requirement if

51:03you want to be on the wait list. Um it's

51:05about $50 to just a CPI, but really

51:08nobody wants We're not going to be able

51:10to collect real money

51:12awaiting recapitalization of

51:16the breakwater and then another

51:20We're probably looking at decade out at

51:22the earliest where we really can before

51:24we can really start seriously talking

51:26about expansion, but it's it's part of a

51:28long-term uh planning effort that the at

51:31the board is looking at uh

51:33meeting the needs of the community.

51:37>> Uh so just to follow up then

51:40uh it it sounds like

51:42I guess where where I was kind of going

51:44was if this was a little more certain

51:46then

51:48then you could

51:49basically, you know, put out a bond and

51:51then as people who are on the waiting

51:54list now tie up their few their vessels

51:56there, then they would

51:58uh end up helping to to pay that bond

52:00back, but if I'm understanding you

52:02correctly

52:04you guys haven't really had the

52:06opportunity to discuss uh about the

52:08expansion

52:10as of yet.

52:12>> Yeah, through the chair, Mr. Kelly.

52:13Yeah, we just first things first is just

52:16getting the breakwater um replaced, but

52:19knowing that we're going to do so

52:23to do no harm to our future plans out

52:25there.

52:28>> Thank you.

52:30>> Mayor,

52:31if I'm one of the thing that one

52:33we're also

52:36leaning hard on

52:38the Alaska Department of of

52:40Transportation Harbor Facility Grant.

52:42And so

52:44right now that is capped at five five

52:46million dollars.

52:47Harbormaster Creswell is the president

52:49of the Alaska Association of

52:50Harbormasters and Port Administrators.

52:52We're trying to get the legislature to

52:54increase the increase that to seven and

52:56a half million dollars. This floating

52:59breakwaters are an eligible expense

53:02under that grant. So, um

53:06ideally,

53:07that program would be fully funded

53:10year-to-year. It's not. But, if we had

53:13$7.5 million

53:14through 1% or bonding, we could leverage

53:18that to $15 million, which is basically

53:21would serve us very well in this

53:24particular project. That is our hope to

53:26increase that um eligible grant amount

53:29and uh be successful in a uh grant

53:32application.

53:34Thank you. Uh Mr. Barr, and then Mr.

53:35Emerson.

53:37>> Thank you, Madam Mayor. We will, of

53:38course, bring you um forecasts and and

53:41more accurate numbers for the Assembly's

53:43sort of big-picture thinking. You you

53:46could conceptualize the temporary 1% as

53:48bringing 15 million per year.

53:52>> Thank you. Uh Mr. Emerson.

53:54>> Through the chair, I think I'll just

53:56hazard a guess that the potential

53:58revenue from the

54:00additional stalls would not be anywhere

54:03close to servicing a bond for the

54:05capital cost

54:07to build that at Harbor expansion.

54:11>> Yeah, I would agree it's going to be a

54:13general obligation bond. It's not going

54:14to be a revenue bond. Mr. Ukotele, do

54:16you have anything to add to that?

54:18>> Uh only cuz it

54:20might answer another question. The The

54:22amount of revenue that we receive at

54:25Statter Harbor last year, just from

54:26moorage, is $1.3 million. And that

54:30includes what we get from yachts, as

54:32well, that are paying a premium of $7 a

54:36a linear foot per day. So, um

54:40there's a lot of infrastructure need

54:41here. We don't get a lot of revenue from

54:45moorage. So, to collect the same amount

54:48of moorage

54:50with that fee increase that's proposed

54:53for the passenger for hire, we'd have to

54:55double what our moorage

54:58uh

54:58fees are at in Statter Harbor. So,

55:01that's just kind of the

55:04the calculus there.

55:08>> [laughter]

55:09>> Nothing.

55:10>> Uh Miss um

55:12And it Miss Miss Hall, sorry. And I was

55:15just wondering, so this

55:16this project would not be eligible for

55:19any of the marine passenger fees given

55:21the

55:22tourism impact in off-pay

55:25or at Statter?

55:28>> Mi- Miss Hall, we will look for every

55:29opportunity to fund it.

55:31>> Yeah. Um at this time it would not

55:33unless we had an agreement with the plea

55:35about it, so just so you know.

55:38>> And it could play into the health and

55:40safety of the visitor experience.

55:43>> Yep.

55:44We look under every rock.

55:46Miss Cosgrove.

55:48>> Just a quick question and it's going

55:50back to what we talked about in the

55:51passenger for hire. Could you just

55:53clarify for me the additional funds that

55:55you intend to raise to that? Is that

55:56intended just strictly for operations or

55:59is it also intended for capital

56:00projects?

56:02>> Mr. Miss Cosgrove Dockton Harbors, we

56:05don't typically firewall our harbors

56:08revenue to

56:10to one facility or for one use. It just

56:13It goes into our revenue. What we don't

56:17expend in that uh

56:19fiscal year goes into our fund balance.

56:23>> And so the additional clarification

56:25[snorts]

56:25if if I may for

56:28I don't see anywhere in the white paper

56:29what you're anticipating is an I see the

56:32increase in the fee but not the increase

56:33projected increase in revenue and just

56:36wondering if any of that increase of

56:37revenue goes towards

56:39uh potentially funding this project,

56:41which I know you all have been working

56:42on for a very long time. It's exciting

56:44to see it moving forward.

56:46>> Mr. Ukedan.

56:47>> So the quick math through the chair,

56:49Miss Cosgrove, quick math on we collect

56:52I'll just use 250,000 passengers at $2,

56:55so $500,000 a year is what we get.

56:58Um we need a million dollars a year

57:02for to to um get a revenue bond and

57:06whether it's a revenue bond or not. Um

57:08so we'd have to triple that to $6

57:12for $1 million um

57:16of new money

57:18for a $10 million so

57:20and we're looking at

57:23750

57:24so that's just rough numbers what we

57:26would how we would be

57:28how we kind of look at that and we also

57:29know that, you know, we have tens of

57:31millions of dollars of other needs once

57:34the breakwater is completed.

57:36>> Thank you. Thank you, Mr. Emerson.

57:38>> Yeah, I I just clarification that I

57:40think built into that is servicing

57:44a bond to fund some of these capital

57:46projects.

57:50>> Anything further on this one?

57:52Okay, next. Your next wish list.

57:59>> So this uh we need to replace the Roeder

58:01Harbor office. It's uh it's a 1960s

58:04garage. Uh it's well past its useful

58:07life. Um,

58:09building maintenance doesn't even like

58:10to go in there. There's

58:12um it's rotted. We have sewage issues.

58:15Um, we've

58:17been very pa- I've been very patient

58:19with the staff. The staff rarely

58:22complains. We

58:23We're at a point now we've completed

58:26recapitalization of nearly all of our

58:28needed harbor

58:30harbor float facilities.

58:33Um, so it's just now it's it's time to

58:35be looking at replacing this um this

58:38facility.

58:40Um, we do have $2 million that we that

58:42the board generously moved into a CIP

58:45from a harbors enterprise.

58:48Um

58:49we would like to move the port um port

58:52director's office in there as well um to

58:55avoid the as was mentioned earlier

58:58$60,000 a year that we're paying for

59:01rent at um

59:03at the Sea Drone building. Um

59:07or

59:08This is something just for um

59:13morale and um uh

59:16climate for

59:18uh the folks that work in in Rural

59:20Harbor that we need to replace this

59:23aging old um garage building.

59:27>> So, the total amount you still need is

59:29the 3 million, so the whole project is

59:31going to take 5 million. Do I am I

59:33getting that right?

59:35>> You may Yeah, Mayor, that's

59:37it

59:38We'll talk about the the bathrooms

59:40downtown that we're working on and just

59:42things are crazy expensive and I

59:46we want to build things right and and

59:48proper and for the next 50 years and

59:52things are

59:53more expensive than they should be, but

59:56I don't I want to go in not

59:59shortchanging what what needs to be

1:00:01done.

1:00:02>> All right, any questions on this one?

1:00:05This works.

1:00:07>> Thank you, Madam Mayor. I was tuning in

1:00:09to the last meeting you guys had when

1:00:11you're talking about these projects and

1:00:13there was discussion brought up about

1:00:15the UAS Tech Center. And uh

1:00:18I know it doesn't have the most ideal

1:00:20office space, but I'm pretty familiar

1:00:21with the building and there are some

1:00:22pretty nice offices in there. Um I'm

1:00:25just wondering if there's ever been

1:00:27discussions in the past of trying to

1:00:29acquire it and what kind of numbers, if

1:00:32any, were given uh when those

1:00:34discussions were happening.

1:00:37>> I'll let you answer that, Mr. Ugatell,

1:00:39cuz some of us are very familiar on how

1:00:41you've tried to buy that building.

1:00:43>> So, well

1:00:45that would be a satisfactory solution to

1:00:47our um

1:00:49harbor needs to to buy the Vo-Tech

1:00:51building.

1:00:52We have um so history on that

1:00:57history on the leased property um

1:01:00back in 1988

1:01:01CBJ entered into a 33-year lease with uh

1:01:04UAS or actually UA Land's division, but

1:01:08um we were paying

1:01:10um because back in '88 the city uh

1:01:13gifted $500,000 to uh, UAS for the Egan

1:01:17Library. We had a sweetheart deal with

1:01:21the lease of um, what's called we call

1:01:24it Fisherman's Terminal. Terminal, so

1:01:26it's basically the uh,

1:01:29the crane docks and the the boat yard.

1:01:32We're paying about $10,000 a year for 33

1:01:36years. Uh, the lease read that upon um,

1:01:40termination we could renew the lease one

1:01:42time at fair market value.

1:01:45So in 2001 when it came due, fair market

1:01:48value for the lease area was a quarter

1:01:51million dollars.

1:01:52And so we pushed back and said it's a

1:01:55quarter million, you know, we're we're

1:01:56providing we're subsidizing a boat yard,

1:01:59we're subsidizing

1:02:00uh, the commercial fishing fleet with

1:02:02the crane docks and all this and um,

1:02:06after many discussions with or over a

1:02:09course of several years um,

1:02:12UA agreed to lease

1:02:15continue the lease which is 3.8 acres at

1:02:20$100,000 per year, so down from a

1:02:23quarter million, but we also provided

1:02:25concessions

1:02:26um, citywide, so that's when the city

1:02:29has offered to UAS students free use of

1:02:33uh, the pools and Treadwell and the um,

1:02:37field house, docks and harbors

1:02:40um, has supported with we

1:02:43>> [clears throat]

1:02:43>> we provide um,

1:02:45at least three paid internships a year,

1:02:49so that's another $30,000. We provide

1:02:51snow

1:02:52uh, removal, we provide a kayak ramp out

1:02:56etc. So we did all these things to have

1:02:58this

1:02:59this lease agreement. We always we went

1:03:02in saying we want to buy this property

1:03:05from

1:03:06UA.

1:03:07So the UA

1:03:09you know, they

1:03:10they need they have um,

1:03:13a nursing program in the VoTech

1:03:15building.

1:03:16Um, they have a diesel program, diesel

1:03:18mechanics program, they have a welding

1:03:20shop there. They would like to collocate

1:03:23their facilities out at the Oc Bay

1:03:25campus, but they're also subject to

1:03:27appropriations from um

1:03:30the legislature. So, the

1:03:33the the agreement was to extend that

1:03:36lease

1:03:37for 4 years

1:03:40until

1:03:41next June at that

1:03:44$100,000 lease $100,000 lease that we're

1:03:47paying for the lease now. I have had

1:03:50recent conversation with the UA lands

1:03:52management. They're in the same

1:03:54situation that they were 4 years ago.

1:03:57What most likely will happen is they

1:03:59will extend the existing lease for

1:04:02another 5 years.

1:04:03So, the the property that we lease is is

1:04:07about 3.8 acres

1:04:10and it's would sell if they were to sell

1:04:12that, it would be about $4 million. The

1:04:16entire property is like 6 acres which

1:04:19includes the parking lot, the votech

1:04:21building. That was appraised at about

1:04:24$10 million.

1:04:26So, that's kind of where we're at. Um,

1:04:29UAS

1:04:31we we've got a good relationship with

1:04:32the with with the university.

1:04:35We're willing to we we want that that

1:04:38we want that property that's adjoining

1:04:41um

1:04:42Harris Harbor and Aurora Harbor. We

1:04:44would never let them sell that to a

1:04:46third party or we would we'd fight tooth

1:04:50and nail that they can't sell it to a

1:04:52third party.

1:04:53Um,

1:04:54but that's where we're at. They they

1:04:55don't want to be there, they don't have

1:04:56the money to move out and we're stuck

1:04:58with the status quo. But, yes, if we

1:05:00ever we'd love to have that votech

1:05:03building either for our

1:05:05um

1:05:06use and the shops would be

1:05:10would be great for um

1:05:13uh ship built ship

1:05:14shipwright work um

1:05:18in the Juno community.

1:05:23>> Um just so everybody knows we have hit

1:05:25our hour, so we need to go quickly, Mr.

1:05:27You could tell.

1:05:32>> Hopefully not.

1:05:37>> So, what else do you have on your 1%?

1:05:39But we need to go a little quicker.

1:05:40>> Okay, I'll be quick. So, this is a North

1:05:43Douglas. We started a process for North

1:05:45Douglas launch ramp expansion. So, we've

1:05:48done um we really want to move forward

1:05:50with this. This has been a community

1:05:51need. It's very inadequate out there

1:05:54right now. There's only about a dozen

1:05:55truck and trailer parking spaces in the

1:05:57right-of-way. We've done a lot to uh

1:06:00work with uh DOT to get some concessions

1:06:04for some uh right-of-way property. We've

1:06:07um

1:06:08the

1:06:09uh the assembly will be asked to approve

1:06:11a

1:06:12um RFP contract with PND Engineers to

1:06:16expand this this particular um drawing

1:06:19shows about 100 truck and trailer

1:06:21parking spaces with a large fill. We've

1:06:25also contacted uh

1:06:28um we have an MOA with uh

1:06:31Kensington Mine. They have access rock

1:06:34uh waste rock. We would love to work out

1:06:36some um deal where

1:06:38mutually beneficial for us to expand

1:06:40North Douglas. So, I could talk more

1:06:42about this. But anyway, this would be a

1:06:44good use of a 1% sales tax. It's also

1:06:47eligible for DOT Harbor Facility grants.

1:06:50It's also eligible for fishing game

1:06:52grants. So, um

1:06:55this is just a a community need.

1:06:57>> Okay, I'm not going to ask for questions

1:06:59anymore. Just keep going.

1:07:03>> This next one is Douglas upland. So,

1:07:05again, we've recapitalized all of our

1:07:08floats.

1:07:09Um Docks and Harbors next priority is

1:07:12facility-wise would be the uh Aurora

1:07:15Harbor office. But

1:07:17um

1:07:18there has been interest from many uh

1:07:21Douglas uh community members to do

1:07:23something with the uplands. So, it's one

1:07:26of those things, yes, it should be done,

1:07:28it can be done, and there's uh,

1:07:31a lot of the the the lots of options of

1:07:34um,

1:07:35the rainbow there. You can go make it

1:07:38like Statter Harbor and very nice with a

1:07:40seawalk. You can just

1:07:42um,

1:07:43pave it. So, there's something that

1:07:46um,

1:07:47would be appreciated by the by the folks

1:07:50in Douglas.

1:07:51Next next slide, please.

1:07:55This is uh, Statter Harbor. So, again,

1:07:57we're very patient in what we do, and

1:07:59this is all the way uh, we're at Statter

1:08:01phase four. This is

1:08:04um,

1:08:04the top part of that is just um, cat

1:08:07zinc anodes to extend the life of our

1:08:11newly constructed um, piling out there.

1:08:14And the lower portion, we call it the

1:08:16horseshoe. That is 1960s

1:08:19um,

1:08:20infrastructure. Um, it needs a replace.

1:08:23It's uh, getting unsafe um,

1:08:27at that facility in the in the

1:08:29horseshoe. So, it's the last remaining

1:08:31That's not the

1:08:32It it's next uh, remaining need in in

1:08:35Statter Harbor. We have applied for a

1:08:37harbor facility grant.

1:08:39Um,

1:08:40and we'll see where that goes uh, this

1:08:42year. Next slide, please.

1:08:45And then this is for another discussion,

1:08:48it's just the dock electrification

1:08:49project. We have a 35% design that

1:08:52working through AELP. Um,

1:08:55but this is a costly uh, project and

1:08:58we'll need uh, to have more direction

1:09:00from the assembly at some point. Next

1:09:02slide, please.

1:09:04So, this is we were fortunate to get a

1:09:07um, a recent um, what's called a

1:09:09Pittman-Robertson Hunter Access Grant to

1:09:12install a um, boarding float at Echo

1:09:15Cove. We just got that a couple

1:09:18about a month ago we're notified, so we

1:09:20will be working on that. It's about a

1:09:22million-dollar project. We are on the

1:09:24hook for

1:09:25uh, 25% of that. We've also applied for

1:09:28a There's a Denali Commission grant that

1:09:30may pay for our local match for another

1:09:34federal grant. So, we're hopeful that

1:09:35maybe we we get this at no cost to

1:09:39Knox Enterprise. Next slide, please.

1:09:42>> So,

1:09:43this is cuz that's that's all your 1%

1:09:46list, right? This is the next

1:09:47>> are not 1%. These are just

1:09:49>> Okay, just a question on the 1%. Is the

1:09:52order that they're in Is that your order

1:09:54of preference for you as a board not

1:09:55rank them?

1:09:58I'm not going to ask you to rank them

1:09:59tonight. I'm just asking if that's

1:10:01>> We have We have not ranked them, but

1:10:04Madam Mayor, this is

1:10:07This is adequate.

1:10:09>> Okay.

1:10:12Cuz at some point we will ask you for

1:10:13and you know you don't get everything.

1:10:16>> [laughter]

1:10:17>> So, okay, and these are your current

1:10:18projects that you're working on. Is that

1:10:19correct?

1:10:20>> That's

1:10:21>> So, if you're paying attention, we have

1:10:22moved to our item six.

1:10:25>> [laughter]

1:10:27>> So, this is a the drive-down float at

1:10:29the rural harbor. This is a mirror grant

1:10:31that for 11.2 million. We also have

1:10:34augment money augmented money from the

1:10:37last Department of Transportation Harbor

1:10:39Facility grant. We are going to

1:10:43open bids in in December for a bid award

1:10:47through the assembly in

1:10:49at your December 14th meeting. I thought

1:10:52at one time it'd be next done on the

1:10:5516th of November, but we're

1:10:57manufacturing

1:10:59issues are going to delay

1:11:02bid openings on this. Next slide.

1:11:06Oh, then these are just

1:11:08This is the downtown bathrooms that

1:11:10we've been working as part of the

1:11:12downtown

1:11:13waterfront improvements. And it's We

1:11:17We will be advertising for this. This is

1:11:21Marine Pastor fee

1:11:23project. This is the phase two of the

1:11:25deck over

1:11:27for the bread in the area of the Pratt

1:11:29Trail Plaza area, but we will be

1:11:31advertising this

1:11:33in the next

1:11:35couple weeks and just maybe just slide

1:11:38through. It's just you give you it's

1:11:39going to be seven

1:11:41toilets, male and female, plus a family

1:11:44bathroom. We're doing that we are trying

1:11:46to be smart and um

1:11:48clever in keeping the um

1:11:51the bathroom the family bathroom open

1:11:54year-round. Um just some idea where it

1:11:57will be the 15 toilets and then we'll

1:11:59have

1:12:00a waiting area.

1:12:03Um

1:12:05open. We'll have these doors that open

1:12:08up. Uh just something for

1:12:10uh passing for cruise passengers to hang

1:12:13out awaiting their their tour

1:12:16or have a seat.

1:12:18And next Yeah, keep going. So, good.

1:12:22Fairly uh

1:12:25very um

1:12:26we're very conscious about making them

1:12:29graffiti proof and easily cleaned and so

1:12:32we're all all those things are part of

1:12:34the um our plan.

1:12:37And

1:12:38>> I know you're 90% design, but any way to

1:12:41make that waiting room smaller?

1:12:43Cut down on the costs?

1:12:44>> [laughter]

1:12:46>> Probably not not at this point.

1:12:48>> Okay. And my only other question is do

1:12:50you have staff to keep uh our friends

1:12:52without homes in away from there?

1:12:55>> Well, that's um in the winter we're

1:12:57looking at

1:12:59um social engineering and um maybe

1:13:03um

1:13:06um

1:13:08smartphone technology to

1:13:10have access so we don't we don't want to

1:13:13give up and and we we want we know

1:13:15people walk their dogs um

1:13:17and are are there all winter long and we

1:13:20want to

1:13:21want to try we are going to try to make

1:13:23that work.

1:13:25That's the last slide. Okay, so this

1:13:28this is what we're looking at for

1:13:31Um

1:13:32we're not going to have any We thought

1:13:34we were going to try and push this

1:13:36through so that they would be

1:13:38constructing to have it finished in July

1:13:41and it's just that we're we're going to

1:13:43wait. Going to give them another year so

1:13:46that they're working in the winter and

1:13:48not disrupting the downtown waterfront

1:13:51during the summer.

1:13:53And

1:13:55yeah, that's

1:13:58that's all I got.

1:14:00>> All righty.

1:14:01So

1:14:02All right, any questions

1:14:05on projects or anything else for Duxbury

1:14:08Harbors or vice versas from Duxbury

1:14:10Harbors to us?

1:14:16You guys are talking to each other.

1:14:18Yes.

1:14:21Seeing none, as Ms. Hall said, we

1:14:23appreciate all your work. Um

1:14:26uh

1:14:28We're very grateful that we don't have

1:14:29to deal with the Duxbury [laughter]

1:14:30Harbors.

1:14:32And uh appreciate Mr. Yukatel and all

1:14:35his projects

1:14:36and uh designing them and getting them

1:14:38moving cuz uh he does a good job of

1:14:40getting projects done, so. But thank you

1:14:42guys for your time and nothing further,

1:14:46we are adjourned.

1:14:48Finance coming up.

1:14:51Uh we could get

1:17:38>> Mhm.

1:19:41>> Mhm.

1:21:43>> Mhm.

1:23:46>> Mhm.

1:24:02>> I would like to call this meeting of the

1:24:06finance committee to order. It is 6:48

1:24:09p.m. And

1:24:12Ms. Wendel, would you please note the

1:24:13roll?

1:24:14>> Thank you, Chair Atkinson. We have all

1:24:16Assembly members present in chambers

1:24:18besides Assembly member Kelly who is

1:24:19present on June on Zoom, excuse me, and

1:24:22Assembly member Smith and Niven absent.

1:24:25>> Thank you very much. We're on to

1:24:27approval of minutes. We have the

1:24:28September 2nd, 2026 minutes before us.

1:24:31Are there any Are there any changes to

1:24:33those minutes?

1:24:35Seeing none, those are approved as

1:24:37presented. Agenda topics, Director

1:24:41Fleck.

1:24:42>> Thank you, Chair Atkinson.

1:24:44Um, welcome to your first finance

1:24:46committee meeting chairing. This is

1:24:49going to be a fun year for sure.

1:24:53Um, we are going to hopefully have three

1:24:55fairly quick topics tonight.

1:24:58The first one starts on page 12 of your

1:25:00packet and it's a resolution

1:25:04to just give direction from this body on

1:25:08how to round transactions when a

1:25:11customer is paying in cash.

1:25:14I won't read the memo to you. I don't

1:25:16think it's a super exciting memo, but it

1:25:19is important to get your direction as

1:25:21the body as like this is what we're

1:25:23going to do because that means we're

1:25:24going to have when a customer is paying

1:25:26in cash a little cash over cash short

1:25:29cuz whoever's

1:25:31being the cashier in the moment, whether

1:25:32it's in the cash office or at the pools

1:25:34or at Eagle Crest or wherever,

1:25:36will adopt these rounding standards.

1:25:38This being brought to you in the form of

1:25:40a resolution and if you all are

1:25:42comfortable with it, we would request

1:25:44that you forward it to the full Assembly

1:25:45for adoption.

1:25:47>> Thank you very much, Director Flick. Are

1:25:49there questions on the pennies

1:25:51resolution? Mr. Brooks.

1:25:54>> Thank you, Madam Chair. And I uh I know

1:25:57uh Deputy Manager Barr is burning to

1:26:01talk about this. And as a penny

1:26:02collector, I figured I'd preface this

1:26:04with a history of pennies. I'm just

1:26:06joking. Go ahead.

1:26:14>> Mr. Kelly.

1:26:17>> Thank you. I was wondering uh so would

1:26:20this completely

1:26:22uh get rid of our policy of collecting

1:26:24pennies at all? Like if somebody really

1:26:25wanted to pay in

1:26:27pennies instead of rounding up, that

1:26:29would no longer be an option under this

1:26:30current policy?

1:26:33>> Thank you, Assembly Member Kelly. Um you

1:26:35know what? Absolutely. If somebody has

1:26:37pennies and they can do exact change, if

1:26:39they want to

1:26:41uh pay a bill in pennies, they could. No

1:26:45different from today. Um we have been

1:26:47told by our bank that we will no longer

1:26:49be able to that we're not allowed to get

1:26:52rolled pennies. And so once we work

1:26:54through our supply,

1:26:57we don't anticipate being able to get

1:26:59any more unless a customer

1:27:01pays with them.

1:27:04>> Thank you, Madam Mayor.

1:27:06>> So could you further clarify that? So if

1:27:08I have pennies, I can pay to the cent.

1:27:13So let's just say it's a dollar three, I

1:27:15can give you three cents. But if I don't

1:27:18have pennies and it's a dollar three and

1:27:20I give you a

1:27:21a dollar five, I'm not going to get any

1:27:23change. Is that what you're saying?

1:27:26>> Madam Mayor, that is correct. So if

1:27:28somebody has exact change and they want

1:27:29to pay with exact change, beautiful. Um

1:27:32if they don't, we will round to give

1:27:35them change back.

1:27:38>> Other questions from the assembly?

1:27:42>> A A motion, Madam Mayor.

1:27:44>> Uh thank you. I move resolution

1:27:48uh

1:27:52>> I'm sorry, Madam Mayor. It doesn't have

1:27:53a number yet. You can call it just the

1:27:55resolution.

1:27:55>> I was I was just going to read the

1:27:56title. A resolution providing for the

1:27:58rounding of all cash transactions with

1:28:00the city and borough of Juno to the

1:28:01nearest 5 cents to the full assembly.

1:28:04>> Any objection?

1:28:07Seeing none, that is so moved. On to our

1:28:10next agenda topic, Seawalk revenue bond.

1:28:13Director Flick.

1:28:14>> Thank you, Chair Atkinson. Um

1:28:17So, you all had this ordinance

1:28:19introduced on the October 26th um

1:28:23meeting that you had. Um it is the

1:28:26legislation required for the city to

1:28:29enter into a revenue bond. And

1:28:32because it is a financial transaction,

1:28:35I'm sorry that the ordinance is like 24,

1:28:3825 pages. But, we have to define every

1:28:42everything.

1:28:43Um per our code, we have to have um this

1:28:46ordinance passed before we can

1:28:48officially apply with the bond bank to

1:28:50participate in a bond with them. The

1:28:53reason why we're going through the bond

1:28:55bank is because the pledge for this is a

1:28:57very, very narrow, precise revenue,

1:29:01which is the port development fee. It is

1:29:03a portion

1:29:05of what we kind of generally call the

1:29:07marine passenger fees, right? It's got

1:29:09the port development fee, the state

1:29:11marine passenger fee, and then our own

1:29:12marine passenger fee. So, for pledging

1:29:15purposes, it's just the port development

1:29:17fee, although we can use the generic

1:29:20marine passenger fees to pay it back.

1:29:22So, that's why we're going through the

1:29:23bond bank.

1:29:25Um I don't really want to get into um a

1:29:28project update because you all have

1:29:30heard from them um the project many

1:29:32times. It was recently a PWFC.

1:29:34Um we can answer some basic questions.

1:29:37The important part of this is the timing

1:29:40in that um

1:29:42the engineering group is wanting to

1:29:45uh do their solicitation for phase two

1:29:49of the project. Um and in order for them

1:29:52to um, do the solicitation and award a

1:29:54bid, we need to have the funding in

1:29:56place, which means the Bond Bank is

1:29:58going to look to issue for us in

1:29:59January.

1:30:00And um, that's necessary for planning

1:30:03purposes, but also for a lot of long

1:30:05lead items. And we know the project will

1:30:07take about two years, so that fits in

1:30:09with um, really kind of a a bond

1:30:12perspective, spending bond proceeds

1:30:14within um, two to three years maximum.

1:30:17So, um, really I'm happy to take

1:30:19questions about this. The bond issuance

1:30:22will cover

1:30:23the project cost, but also the bond

1:30:26reserve that we have to set aside for

1:30:29um, because it's a revenue bond, and

1:30:30that'll be held um, by the custodian

1:30:32bank. Um, it it is our our cash, it we

1:30:35put in our balance sheet, all of that

1:30:37good stuff, um, but it's held by them

1:30:39um, for purposes of the transaction.

1:30:43So, I'm happy to take questions if there

1:30:44are any.

1:30:45>> Thank you very much, um, Mr. Brooks.

1:30:48>> Thank you, Madam Chair. Uh,

1:30:50just for clarification, is the the

1:30:52timeline that um,

1:30:55the engineers are working with, uh,

1:30:57is that for for them to capitalize on

1:31:01phase two design, or actually putting

1:31:04out for phase two work?

1:31:07>> Thank you for the um, question, Assembly

1:31:08Member Brooks. It is for the actual

1:31:10work. The design will um,

1:31:13for for all of it, phase one and phase

1:31:15two is uh, to be 95% complete this

1:31:18month.

1:31:19Um, so really it is to go out for the

1:31:21construction part of phase two.

1:31:25>> Mr. Kelly.

1:31:28>> Thank you. Um, I guess this my question

1:31:30is kind of about the port development

1:31:33fees. Uh, it seems like um,

1:31:36I'm I'm not sure. Um, I think I might

1:31:38have read at some point the the length

1:31:39of the loan, but I don't recall it off

1:31:41the top of my head. So, I'm just kind of

1:31:42wondering

1:31:44um,

1:31:45will this impact us being able to use

1:31:47the port development fees for other

1:31:48things we had planned to do?

1:31:51Um, is there any uh, debt that the port

1:31:53development fees are currently being

1:31:55used to repay that any debt that's going

1:31:57to be expiring that this will kind of be

1:31:59replacing or

1:32:01if you could maybe tell me

1:32:02how the how this will impact our our

1:32:05debt and our projects.

1:32:08>> Thank you, Mr. Kelly. That's a great

1:32:09question.

1:32:10Um

1:32:11I'll answer it in pieces. So,

1:32:14um the port development fee is

1:32:16specifically being pledged. It is also

1:32:18the pledge

1:32:20for um

1:32:222021 bonds related to

1:32:25um

1:32:27building of docks and also

1:32:30um

1:32:31bonds that were refunded last year,

1:32:33refinanced last year. And so, now

1:32:35they're the 2025 um port bonds

1:32:38that I think go back to 2007. I don't

1:32:41have that off the top of my head, but um

1:32:43they've been refunded a couple of times.

1:32:45Um as far as pledging of this revenue

1:32:48and its impact to us in the future, um

1:32:51certainly we will be using the the

1:32:54global marine passenger fees

1:32:57um to make this debt payment. And

1:33:01um

1:33:03that will that will be a draw on the

1:33:05revenue that comes in from that um from

1:33:08that source. On um the page 24

1:33:13of your packet, um this is a 20 It is um

1:33:16being designed as a 20-year bond, and

1:33:18you can see how the principal amounts

1:33:21um increase over the years. Our first

1:33:23payment will be due in fiscal year '28.

1:33:25Um and there will be on top of this

1:33:27principal payment every 6 months an

1:33:30interest payment that's paid out to the

1:33:32to the bondholders.

1:33:33Um and we don't pay the bondholders

1:33:35directly. Again, we pay through a

1:33:36custodian bank that manages all that on

1:33:39our behalf.

1:33:40I think I got all the parts to your

1:33:42question. Did I miss any, Mr. Kelly?

1:33:45>> No, I I think that does that does kind

1:33:47of clear it up. So, it sounds like it it

1:33:49will be kind of

1:33:51reducing um the marine the passenger

1:33:55fees that we'll be able to use for other

1:33:57projects. It'll instead be being going

1:33:59towards

1:34:01paying off this project. Um and and

1:34:03thanks for that table. So, it looks like

1:34:05going on until 2047.

1:34:09>> Other questions on this ordinance?

1:34:13Madam Mayor, do you have a motion?

1:34:15>> Certainly, Madam Chair.

1:34:18I move ordinance 2026-44

1:34:21to the full assembly.

1:34:22>> Any objection?

1:34:24Seeing none, that is so moved.

1:34:27Our last agenda item, and I'm sure it

1:34:28will be quick. Uh Eaglecrest fund

1:34:30deficit, Director Flick.

1:34:33>> Thank you, Chair Atkinson. You guys are

1:34:34doing great tonight. Um I know you've

1:34:37already had a long week of meetings cuz

1:34:38I was with you on Monday. So, this takes

1:34:40you to page 40 in your packet. Um

1:34:43as

1:34:46I'm I apologize for the length of the

1:34:47packet material. I know we've got some

1:34:49new members. We also have a new general

1:34:51manager at Eaglecrest, and so I thought

1:34:53putting some of the history in the

1:34:54packet would be prudent. Um we don't

1:34:57always um go back and rehash the past,

1:34:59but I felt like in this case there was

1:35:00some some value there. Um in FY26 in

1:35:04building that budget, um the assembly

1:35:07uh

1:35:08made the determination that Eaglecrest

1:35:11the Eaglecrest fund could operate to a

1:35:13deficit. And with that, we um you held

1:35:16in reserve part of the restricted budget

1:35:18reserve to offset that, which is um

1:35:21required by code. So, as we worked

1:35:24through the 2027 budget process,

1:35:26um it was determined through your

1:35:28decisions that Eaglecrest would have a

1:35:30balanced budget. The revenue would equal

1:35:32their expenses. There was included in

1:35:34there a one-time additional subsidy from

1:35:36the general fund.

1:35:37Um but we we also just held in reserve

1:35:40that we'll call it two and a half

1:35:41million dollars in the restricted budget

1:35:44reserve, and and said we would come back

1:35:46and talk about this in November. And

1:35:48time has flown, and here we are.

1:35:51So, um there's a couple of things that

1:35:53you can do um with the um actual events

1:35:57of FY26, and again, they're not

1:35:59completely closed out, but we don't

1:36:01think it's going to change

1:36:02significantly. The deficit in the Eagle

1:36:04Crest fund will be

1:36:06$2.5 million. $2,499,400.

1:36:10And

1:36:12the budget reserve that we have is

1:36:14$2,505.

1:36:17I should have written that number or

1:36:18highlighted it. Thank you.

1:36:20It's right there. $2,505,400.

1:36:23So, the difference is about $6,000. Um

1:36:28you can decide to do take no action

1:36:31tonight.

1:36:32Um in which case that reserve is just

1:36:34going to hold for $6,000.

1:36:36I don't know that it's worth our time to

1:36:38do an ordinance to redo a resolution to

1:36:41change the amount. I would just

1:36:43say let it ride until we're ready to

1:36:44resolve the deficit. Um you could also

1:36:47request that we draft an ordinance to

1:36:50transfer funds to cover that deficit and

1:36:53basically absolve the FY '26 ending

1:36:57negative balance, and that would then

1:36:59free up your restricted budget reserve.

1:37:01You could do that multiple

1:37:02[clears throat] ways. One is to say just

1:37:04use the restricted budget reserve to pay

1:37:06off Eagle Crest fund, or you could say

1:37:09use unrestricted general funds,

1:37:11pay off Eagle Crest and then let the

1:37:13thing let the funds that are being held

1:37:15in the restricted budget reserve go. Um

1:37:17that kind of gets you to the same place,

1:37:19just two different ways.

1:37:21Um through the budget process,

1:37:24um there was a motion to get back

1:37:26together with the Eagle Crest board. Um

1:37:28I think the motion was to meet in

1:37:30November. Um there was work being done

1:37:32on a strategic plan. You all wanted to

1:37:33give the Eagle Crest board time to kind

1:37:35of figure out a path forward once the

1:37:37the gondola project um came to a halt.

1:37:40Um that is now projected to happen in

1:37:43January, although I don't think that

1:37:44date has been solidified yet. Um so, you

1:37:48certainly have more discussions you're

1:37:50going to have about Eagle Crest and its

1:37:53fund.

1:37:54And with that, I'm happy to answer your

1:37:57questions. We obviously have Um, Crest

1:38:00members and board members in the

1:38:03um, chambers if you have direct

1:38:04questions for them.

1:38:06>> Uh, thank you Director Flick. Actually,

1:38:08you reminded me with our new general

1:38:09manager, if you would like to come up

1:38:10and introduce yourself and everyone you

1:38:12have with you, that'd be really great.

1:38:26>> Forgot the button. Good evening. I am

1:38:28Julie Piper. I'd happy to say hello to

1:38:31the finance committee and the assembly.

1:38:32Thank you for having us on the agenda.

1:38:35Angie, feel like you gave a really great

1:38:37synopsis of what's going on.

1:38:38With me tonight is uh, Aaron Luber, who

1:38:41is interim general manager a number of

1:38:43times over the past couple of years.

1:38:45Uh, holding a strong position. Thank

1:38:47you. She is my teammate.

1:38:49Uh, and then Jim Calvin, who is a

1:38:51long-time board member, I think

1:38:52returning board member, and also Eagle

1:38:54Crest Foundation board member as well,

1:38:56who is integral in our planning efforts

1:38:58with SE Group, and we look forward to

1:39:00sharing that with you after the board

1:39:03retreat, which is tomorrow. Mr. Kelly,

1:39:06look forward to having him with us, and

1:39:08thank you for having us.

1:39:10>> Thank you. While she's up here, does

1:39:12anyone have any questions specifically

1:39:14for the general manager?

1:39:17I

1:39:18Oh, Mr. Brooks.

1:39:20>> Thank you, Madam Chair. Is it uh,

1:39:22everything you hoped and dreamed for so

1:39:24far?

1:39:25>> I will say I knew what I get I was

1:39:27getting myself into. Yes, and it is

1:39:29amazing to be back home in Juneau. Thank

1:39:32you.

1:39:33>> Um, Madam Mayor, and then Mr. Steiger.

1:39:37>> Thank you. Uh, thank you, Ms. Piper, for

1:39:39being here tonight. I'm wondering if all

1:39:41of our hopes and pleas uh, resulted in

1:39:44some strong sales of season passes.

1:39:46>> We did have a really strong uh, tier one

1:39:49pass sales this year. I think at the

1:39:51close of our tier one sales, which was

1:39:53the end of September, we were up about

1:39:5524% in pass sales with uh, pass pricing

1:39:59going up a little bit too, revenues were

1:40:00really strong. Um, so we're really

1:40:02hopeful for that. Uh, lots of positive

1:40:05energy and uh, commentary from anyone I

1:40:07interact with in the public, too. So,

1:40:09we're feeling good.

1:40:11And yes, there's a looming super El

1:40:12Nino, and you never can predict the one

1:40:14weather, but we're ready to adapt to it

1:40:16just like we've done in the past. We've

1:40:18been through some some bad snow years,

1:40:20but we're still hoping for good.

1:40:23>> Mr. Shininger.

1:40:24>> The mayor asked my question. I just

1:40:26wanted to give Ms. Piper an opportunity

1:40:28to brag about the good pass sales this

1:40:30year and welcome on board.

1:40:31>> Thank you so much.

1:40:33And for the softball questions, cuz I

1:40:35wasn't prepared to say hello.

1:40:38>> Good. I think you're off the hook.

1:40:39Thanks for being here tonight.

1:40:40>> Thank you.

1:40:41>> Questions for our staff.

1:40:47We can move on to discussion if folks

1:40:49don't have any questions.

1:40:50Mr. Shininger, you look like you have a

1:40:51question.

1:40:52>> I I'll ask a question. So, if we

1:40:57if we let it ride, the the do-nothing

1:41:00let it ride with the negative fund

1:41:01balance, are there kind of any, I guess,

1:41:05problems that creates for you other than

1:41:07just a number on a spreadsheet?

1:41:10>> Thank you for the question, Mr.

1:41:11Shininger. Um

1:41:13there are no real problems for me

1:41:15because we have cared for that negative

1:41:17balance by reserving the restricted

1:41:20budget reserve. Um the balanced budget

1:41:23position for FY 27

1:41:26um is important. Um and so,

1:41:30holding that

1:41:32um negative fund balance with the

1:41:34offsetting reserve,

1:41:36um it

1:41:37I don't know that it would hurt

1:41:38anything, and I know that there's a lot

1:41:40of conversation yet to be had. Um but I

1:41:42did just want to bring this back to the

1:41:43body at this time

1:41:45um in case somebody was feeling

1:41:46compelled to do something at this point.

1:41:51>> Other questions, Madam Mayor?

1:41:54Give me a motion. Go for it.

1:41:57>> Sure. Um thank you for that. Um

1:42:00Madam Finance Director, and thanks Ms.

1:42:03Piper, and

1:42:04um glad to hear that you have increased

1:42:06revenue, but I'm realistic and um

1:42:09So, this is just sending a draft an

1:42:11ordinance. Everybody can think about it,

1:42:13but I've already said with um

1:42:16a little bit extra revenue that I was

1:42:18going to look at protecting our

1:42:19restricted budget reserve. So, this is

1:42:21my motion has to do with that. So, I

1:42:23direct staff to draft an ordinance

1:42:26to transfer

1:42:28$2,499,400

1:42:31to the Eco Crest Fund from the

1:42:32unrestricted um general fund. Um and

1:42:35this would release the hold on the

1:42:36restricted budget reserve and introduce

1:42:39it to the assembly.

1:42:42>> Any objection to that motion?

1:42:46Without objections, so moved.

1:42:49All right.

1:42:50>> The record needs to

1:42:50>> Yeah. Thanks, guys. I'm getting

1:42:53softballs, too, for my first meeting.

1:42:57>> [laughter]

1:42:58>> Don't give Mr. Barr ideas.

1:43:00Um

1:43:01Before we go, are there anything else

1:43:02from staff?

1:43:05>> Uh nothing else at this point. We do

1:43:09um

1:43:10Thank you for your comments and

1:43:11questions. On Monday night, we'll work

1:43:12to get as many of those answered for the

1:43:14retreat as we can. We are scheduled to

1:43:16have our next meeting on December 2nd,

1:43:18which is

1:43:20shortly after that retreat. So, that

1:43:21also gives us some buffer if there's

1:43:23questions unanswered that you want to

1:43:25come back to. Um we have that

1:43:27opportunity, but I don't have anything

1:43:28else for tonight, Madam Chair.

1:43:30>> Thank you very much, Director Flick. I

1:43:32will just give everyone on the Finance

1:43:34Committee a heads-up that I am going to

1:43:36have staff uh draft a ordinance to make

1:43:39our restricted uh

1:43:40restricted budget reserve whole from

1:43:42fund balance um in addition to the

1:43:45uh reserved amount from Eco Crest, which

1:43:47we can talk about at our retreat and in

1:43:49the future, but I just want to give

1:43:50folks a heads-up that that's coming.

1:43:53Anything else before we adjourn?

1:43:55Seeing nothing.

1:43:58Uh December 2nd.

1:44:11>> Are are we adjourned?

1:44:15I did not hear us being adjourned.

1:44:22Okay.

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