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The AJ Mine Capital Project Fund now holds $250,000 for a water system study and other issues to be resolved before city officials decide if they’ll promote the city-owned gold mine. The Assembly Monday night appropriated the money from the sales tax budget reserve.

The ordinance says nothing about what the funds would be used for, and that caught the attention of most of the public who testified.

“I’m opposed to allocating any money for anything without first knowing what exactly the money would be used for and what results CBJ would expect to receive,” said Juneau resident Tina Brown.

City Engineering Director Rorie Watt told the Assembly several weeks ago that a fund would be needed to explore AJ issues, particularly Juneau’s water supply.

The city and borough owns two-thirds of the AJ property and Alaska Electric Light and Power owns the rest. Juneau’s main water source is Last Chance Basin, which sits atop, adjacent to and beneath the ore body.

Protecting Last Chance Basin was the AJ Mine Advisory Committee’s top priority. The Assembly formed the task force to determine circumstances under which the city might promote the AJ. The group worked for three months last spring, presenting its report in May.

Assembly member Ruth Danner tried to amend the ordinance to specifically state a water study would be done.

“I believe this ordinance should be redirected to say an ordinance appropriating to the (city) manager $250,000 for a safe drinking water supply study, and staff and legal time necessary to provide for research into the costs and benefits of reopening the AJ Mine,” she said.

Danner lost her argument as well as one to add intent language calling for a public vote on the AJ before the Assembly would solicit or select a junior mining company to advance the mine.

“When we have public testimony we hear from people on both extremes,” she said. “We don’t hear from people in the middle,” which she believes a survey would reach.

Assembly member Merrill Sanford said it’s too early to call for a public vote.

“There’s no reason to do this right now,” Sanford said. “We’re just trying to deal with whether or not it is feasible, whether or not it is safe for our water system, to even begin to look at the AJ Mine.”

Both of Danner’s amendments failed. Then seven of the nine-member Assembly voted to seed the AJ Mine Capital Project account with the $250,000 appropriation. David Stone and Malcolm Menzies recused themselves from the discussion and vote, due to a financial interest with A-E-L & P.

Engineering Director Watt will direct the studies. He said he plans a public process.

“Starting out with advising the public of a draft outline of what issues ought to be studied and look for comment and input on whether we’re missing topics,” Watt said.

He said the public also would be asked to comment on the final report.

The AJ study would include legal issues, Watt said. Juneau is one of the few municipalities in the country that regulates mining.

Watt said the study also would look for municipal land that could be used as a mine portal.

Recent heavy rains likely mean Juneau will have plenty of water to produce hydroelectric power this winter.

“Our fuel is rain and snow, so even though we all like sunshine and nice weather, we need the rain,” says Alaska Electric Light and Power generation engineer Scott Willis.

He watches water levels in the lakes that produce electricity for Snettisham, Lake Dorothy and Salmon Creek hydro projects. He says it’s been a dry two years.

“Prior to this weekend, our lakes were lower this year than last year at this time. And last year we didn’t fill any of our lakes,” Willis says. “But just this three-day storm put us ahead of last year.”

The Snettisham area got nine inches of rain between Friday and Monday. Crater and Long lakes provide the energy for the turbines. Crater Lake rose 21 feet and Long Lake rose 15 feet over the weekend. Prior to the rain storm, Long Lake had been rising only six to eight inches a day.

“Snettisham gets about three times more precipitation than we do in town. So if we get an inch and a half in town that’s four or five inches out at Snettisham,” Willis says.

Snettisham is the workhorse of A-E-L & P’s generation system, and provides most of Juneau’s electricity. The rest comes from Lake Dorothy and Salmon Creek hydro projects. Lake Dorothy grew seven feet, and Salmon Creek rose 10 feet over the weekend.

While none of the lakes have filled, Willis says he expects there’ll be plenty of water to run Juneau’s hydro this fall and winter, especially since September and October are usually wet months. When lake levels are low, the company has to supplement hydro with expensive diesel fuel.

A graph of lake levels is at www.aelp.com.

Juneau voters will be asked to approve two bond issues this fall to pay for school projects.

The CBJ Assembly Monday night agreed to use bonds for a ground source heat system at Auke Bay Elementary School and new artificial turf at Adair Kennedy Park. The questions will be on the October 4th municipal election ballot.

Auke Bay School is being renovated. While a ground source heat pump would initially cost more than the proposed heating oil system, it would save the school district money in the long run, as well as reduce carbon emissions.

To minimize the cost of the $1.4 million general obligation bond to taxpayers, the district plans to apply interest earned on completed elementary school renovation projects to the debt service. That means a small property tax reduction for 2012, according to city manager Rod Swope.

As for the impact on taxpayers over the life of the bond:

“Assuming an interest rate of 3.5 percent, the amount of debt service for this proposal would require an annual property tax levy of $1.21 per $100,000 of property tax value for a 10-year period,” Swope said.

The second ballot question is for a $1.9 million general obligation bond for new turf at Adair Kennedy Park. The school district also plans to put interest earnings toward the debt service.

Swope says it would cost property taxpayers $1.04 per $100,000 of assessed value for the 10-year life of the bond.

The Adair Kennedy field was the first artificial turf installed in Juneau. Swope says the city was told it would last about 20 years, but it’s reached the end of its useful life at 10. In addition, vandals burned the field in several spots earlier this summer.

Both school projects qualify for 70 percent reimbursement by the state’s School Construction Bond Debt Reimbursement Program.

Stories include an update on flooding to Mendenhall Lake and Mendenhall River.

No decision from Bartlett Regional Hospital’s Board of Directors on a new management contract.

The board met yesterday (Monday) for more than eight hours – the last three in executive session – without reaching consensus. It’ll take the issue up for further discussion tonight (Tuesday) at its regular monthly meeting.

The first five hours of last night’s special meeting were dedicated to presentations from the three finalists for the hospital’s management contract – current manager Quorum Health Resources, along with Alliant Management Services and PeaceHealth.

It’s the first time in several years that the board has solicited bids for the contract. Quorum’s current deal expires at the end of the year.

Board Chair Kristen Bomengen declined to say whether a decision is close. Tonight’s meeting starts at 5:15 p.m. in the hospital boardroom.

Click here to read our story from yesterday.

The U.S. Postal Service says 25 rural Alaska post offices will remain open after all.

Douglas is not on that list, according to Senator Mark Begich’s office.

USPS Alaska District Manager Diane Horbuchuk says 25 post offices off the road system are in the clear. The agency last month targeted 3,700 post offices nationwide for possible closure, as a way to reduce costs and expenses. Thirty-six were in Alaska.

Begich arranged a meeting Monday so rural health care providers and other community groups could give postal service officials more information on the impact to rural communities. Horbuchuk announced the agency had already made the decision to spare Alaska’s most remote post offices.

Horbuchuk said those communities will receive letters to that effect this week.

She said the review of the remaining 11 sites, including Douglas, should be completed by the end of the week.