Local Government

A new commercial curbside recycling program in Juneau is already changing the way residents dispose of re-usable materials.

As KTOO previously reported, Arrow Refuse says about 2,200 customers have signed up for the biweekly service, which started last Tuesday.

Beginning tomorrow (Tuesday), landfill operator Waste Management will cut the hours at its recycling center, which is funded in part by Juneau residents through their CBJ monthly utility fees. The city and Waste Management also have put off negotiations for a new recycling facility meant to accommodate both commercial and residential deliveries. KTOO’s Casey Kelly has more.

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The original plan was to keep the recycling center open Tuesday through Saturday. But late last week the City and Borough of Juneau and Waste Management agreed to close it Tuesdays and Wednesdays to allow Arrow Refuse to deliver curbside recyclables.

CBJ Public Works Director Kirk Duncan says it would have been too big a hassle to do both commercial and private deliveries at the same time.

“As people who’ve been out at the recycle center know there’s a bin for aluminum and two bins for plastic,” Duncan explains. “And those bins actually have to be moved, the truck backs into the facility, dumps its load on the tipping floor, pulls out, and then those three bins are put back in place. It’s just a safety issue. It’s a convenience issue. So, we’re going to try this.”

The city had been negotiating with Waste Management for a new recycling center that would combine disposal of household materials with hazardous waste and junk vehicles. The city was prepared to pay some of the upfront costs, as well as about $1-million a year to Waste Management. In exchange, the city would get a share of the company’s profits from selling the materials on the recyclables market. But Duncan says the negotiations started before Arrow launched its curbside program.

“I think this is one of those times when we have to let the dust clear, and see what happens,” says Duncan. “Because, it’s conceivable that everybody’s going to jump on the Arrow curbside program, and then we don’t need the recycling facility.”

The group Friends of Recycling has requested a meeting with Duncan and other city officials to talk about the change in hours.

“I hope that something will get worked out to be more accessible to the public,” says Friends of Recycling’s Linda Deakins. She says they’re concerned the recycling center will go away and everyone will be forced to sign up for Arrow’s curbside service.

“A lot of people mentioned to us that they are not interested in curbside,” says Deakins. “They live close by and they do want to continue with drop off service. And of course with the dropped off service, we still have separated recycling, which makes it more economically feasible.”

That’s because some separated materials are worth more than twice as much on the recyclables market as the comingled materials being collected in Arrow’s curbside program. The difference more than covers the cost of shipping the materials out of Juneau.

Landfill manager Eric Vance says it’s a legitimate concern, and part of the reason Waste Management plans to keep the recycling center open. He also would like to see talks with the city resume for a new facility that could handle commercial and private deliveries at the same time.

“I think it’s still the right thing to do, and I think giving people the option of source-separating or comingled is a unique, nice option for the citizens of Juneau,” says Vance.

He says it remains to be seen whether Arrow’s curbside program results in a drop in usage at the recycling center. The facility currently sees between 1,300 and 1,600 recyclers per week, and is still the only place in Juneau that recycles glass.

“Thursdays, Fridays and Saturdays have typically been the busiest public days,” Vance says. “There’s a handful of folks that do come in Tuesdays and Wednesdays. But I think that we’re going to see folks adjust their schedule and hopefully it’s not too inconvenient.”

For now, Waste Management is operating the recycling center on a month-to-month contract with the city. CBJ pays $13,500 a month minus half the profits earned from selling the materials. The two-sides are hoping to hammer out a year-long agreement to continue the current operation, after which they’ll revisit the idea of a new consolidated facility.

City departments and private groups are making their final push to the Juneau Assembly for projects to be included in a possible extension of the city’s temporary one-percent sales tax.

The so-called “project tax” – typically used to fund city construction and maintenance – is due to expire in September 2013. Voters will be asked to approve a continuation at this fall’s municipal election.

The city Finance Department estimates the tax will bring in $8-million to $9-million a year in revenue, for a total of nearly $45-million over five years. The Assembly Finance Committee heard requests for more than $32-million in projects last night (Wednesday) and will hear more next week.

Many of the presentations followed a similar script. For example, at one point Mayor Bruce Botelho asked Docks and Harbors Board Chair Kevin Jardell, “What do you get if you only get half that amount?”

“We’ll take it,” replied Jardell, sparking laughter in the audience.

Docks and Harbors is seeking $7-million for a rebuild of Aurora Harbor and another $2.3 million for Auke Bay boat haul out improvements.

The Parks and Recreation Department has a list of 20 parks and trails projects that it would like to see funded, totaling about $4.7-million.

Parks and Rec also manages several buildings that need maintenance and repairs, including Centennial Hall. Juneau’s convention center needs about $3.7-million for a new roof, plumbing improvements and electrical upgrades. A Centennial Hall Users Group has formed to advocate for the fixes. They were represented by Peter Metcalfe of the Juneau Public Market at last night’s meeting.

“As producers of events, we’re basically masters of deception,” said Metcalfe. “You can walk into that building and say, ‘Well, this looks pretty good,’ because there’s been a lot of cosmetic upgrades. But those of who produce events know what sort of drama goes on behind the scenes.”

Other proposed projects discussed last night included: $6.2-million dollars for renovation of Capital Transit’s bus barn and $6.6-million for a new “Learning Center” and lodge renovations at Eaglecrest Ski Area.

Next week the Finance Committee will hear presentations from the Juneau Airport, Bartlett Regional Hospital, Juneau Public Libraries, Sealaska Heritage Institute, and Juneau Arts and Culture Center.

Finance Committee Chair Karen Crane plans to hold another meeting after next week to decide which projects to include on the municipal election ballot. That meeting will likely be held at the end of this month or in early July, so the city manager’s office has time to prepare and ordinance to go to the full Assembly.

The temporary one-percent tax is part of the CBJ’s five-percent sales tax, which also includes a one-percent permanent tax and a three-percent temporary tax.

The man who best knows the details of CBJ budgets has retired.

City Manager Kim Kiefer appropriately used numbers to recognize Craig Duncan’s 30 years with the city and borough:

“Craig worked for the city for 938-million, 768-thousand-400 seconds. Or 260 thousand-769 hours, or 10-thousand-865 days. Of those, 7,443 were served as CBJ Finance Director,” Kiefer said.

Kiefer recognized Duncan for his work at Monday night’s Assembly meeting.

He joined the CBJ in 1982 as treasurer. He was promoted to finance director in 1992, serving under seven city managers until his retirement. He was known for his conservative revenue projections, which Kiefer said served the city well.

“Craig has seen us through the financial good times and the rough times. He’s been involved in creating close to 5-billion dollars in CBJ budgets over the last 20 years,” she said.

Duncan noted major changes in city government since he started working for it three decades ago. He said CBJ has a much more capable staff, the city provides more services and is much more responsive.

Duncan’s last day was May 31. His successor, former Alaska Permanent Fund Dividend Chief Operating Officer Bob Bartholomew, has been on the job for several weeks to ensure a smooth transition.

It will cost $231,796,800 to run the City and Borough of Juneau in the next fiscal year.

The Assembly Monday night appropriated the funds for the FY 2013 budget, which begins July 1. The budget total includes debt service and capital projects.

City code requires it be adopted and funds appropriated by June 15. The Assembly Finance Committee – comprised of all nine Assembly members – approved the spending plan two weeks ago.

Property tax mills fund the budget. The Assembly formally established the rate last night – the same as recommended by the Finance Committee.

City manager Kim Kiefer said the operating mill rate will be 9.26, and debt service 1.29, for a total of 10.55 mills.

“This rate is the same total operating and debt service mill rates as levied in 2011,” Kiefer said.

CBJ property tax rates will stay the same: $1,055 dollars for every $100,000 of assessed property value.

The Assembly also adopted the list of capital improvement projects to be undertaken in the next fiscal year. The money will come from city sales tax and marine passenger fees. Click here for the list of projects and funding sources.

Nine-hundred 30-thousand cruise ship passengers are expected to visit Juneau this summer, leaving behind an estimated $4.7 million in revenue that can be used for capital city projects and operations.

The Assembly Finance Committee has agreed to spend the money to mitigate the effects of Juneau’s cruise ship traffic. The first “port dues” fee was enacted in 1990, based on vessel tonnage, with revenue to be used for dock improvements.

Juneau voters in 1999 approved the Marine Passenger Fee at $5 per cruise ship passenger. It’s to be used to address impacts caused by the cruise ship industry.

The Finance Committee has adopted the city manager’s long list of recommended expenditures at both Juneau’s city owned and privately owned docks.

“This is not money coming out of my pocket your pocket or anybody else. It’s the people who are getting off of the ships that pay the fee. And they pay it whether they get off at a public dock or a private dock,” says Karen Crane, committee chairwoman.

In a memo to assembly members on the passenger fee, Mayor Bruce Botelho says the revenue collected has been essential in building and maintaining the infrastructure needed to support the cruise industry. Funds are also used for city operations affected by cruise ships, for example, Juneau police foot and bike patrols downtown.

Meanwhile, Juneau’s mill levy may stay the same next year. The Finance Committee has agreed to maintain the current level for both operational and debt.

“This year the operational mill levy is 9 point 2-6, the debt service is 1 point 2-9, so the total is 10 point 5-5,” says City Manager Kim Kiefer.

Operational mills provide the revenue for every day city and borough spending.

“The operational mill levy makes up the roaded service area, the fire service and then the area wide, so it covers everything,” she explains. “That 9-point 2-6 is what funds government.”

The debt mill levy funds the principal and interest on bonds issued by the CBJ for such projects as school renovation.

In tax terms, it means property owners will be taxed $1,055 for every $100,000 of assessed property value.

The Finance committee-approved package of marine spending, the operating and capital budgets and mill levy now go to the Assembly for a final vote. All must be approved by June 15th.

Additional state funding will allow Juneau to cover the needs of local non-profits, increase child care options, and promote the town as a research center and great place to relocate.

The Assembly Finance Committee on Wednesday added $447,000 dollars to the budget for fiscal years 2013 / 14. Among other things, the money will go to social service organizations, a school district auditorium manager, and special programs for the Juneau Economic Development Council.

Finance Committee Chair Karen Crane says the city has an additional $2.8 million to spend, thanks to a change in the state law that sets the amount local governments can spend on schools.

“We were contributing 4 mills which was the highest level that you could put money into the school district. The legislature made a change at the last where you can only put in 2.65 (mills), so that means that we have 2 million dollars that would have gone into the school district that doesn’t at the moment,” she explained. “Now the school district isn’t losing that 2 million dollars; the state now puts that money in.”

Along with an increase in municipal revenue sharing, Juneau ended up with more than two-point 8 million dollars not planned for when city officials began building the two-year budget.

It means four social service programs not funded through the Social Services Advisory Board process will get grants after all, including Hospice and Homecare.

The Finance Committee approved $143,000 for the HEARTS Initiative, aimed at increasing child care options in the capital city.

HEARTS stands for Hiring, Educating and Retaining Teaching Staff. It will offer monetary incentives to providers who earn early childhood credentials, also reimburse them for certain training required for state licensing, and waive some CBJ taxes and fees for licensed child care businesses.

The Juneau Economic Development Council will get an additional $75,000 dollars for several special programs.

One will help develop the capital city as a research and education center. That’s also a priority of the Assembly for this year.

The funds will promote downtown revitalization, target marketing materials toward businesses that might relocate here, and promote Juneau as a mining center.

All nine members of the Assembly sit on the Finance Committee. Crane says they will meet next week to determine what to do with the rest of the additional funds.

But she says it’s important to remember the effort the city has put into balancing the new budget.

“Everybody thinks ‘oh you’ve got 2 million dollars more,’ but they forget that we cut 4 point 5 million out of this year’s budget, had to raise the property tax a bit, too, and use some one time money — we had some money in sewer accounts that don’t have projects waiting for them,” she said. “So we used that million dollars, we increased property tax and we cut 4 point 5 million. So it’s not like we have two million extra floating out there for everybody’s wish list.

Crane says some of the additional funds should go into the city’s reserve account.