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City leaders opt for recess before deciding on third parties managing recreation facilities
- Mark Sabbatini
- 7 hours ago
- 3 min read
Assembly delays consideration of agreements for pools, other in-town facilities until after Oct. 6 municipal election; Eaglecrest changes on hold while strategic plan drafted
By Mark Sabbatini
Juneau Independent
Juneau Assembly members facing serious decisions about letting third-party partners operate city-owned recreation facilities to save costs opted on Monday to take a break from the issue until after the Oct. 6 municipal election.
Two tax-increase measures on the ballot — in particular a 1% seasonal sales tax from April to September — might generate enough revenue to significantly close an ongoing multimillion deficit in the city’s annual budget, according to members supporting the delay during a Committee of the Whole meeting.
Ballot language states "the intent of this additional seasonal sales tax revenue will help fund indoor and outdoor recreation in Juneau." Juneau Finance Director Angie Flick has estimated the tax could bring in $6.9 million during the six months it is active, which is roughly the shortfall projected in next year’s budget by some Assembly members.
Further concerns were raised Monday about whether qualified third-party entities to manage facilities such as the two public pools could be found, and what the city’s responsibility would be if untidiness, neglected maintenance or other problems occur.
City Manager Katie Koester told Assembly members short- and long-term maintenance accounts for a significant portion of ongoing costs, "and a third party is likely not incentivized to maintain those to the level we need." The other major factor to consider is "balancing the needs of diverse user groups."
"Parks and Recreation does a great job at making sure that the teams get ice time, and that the ice skaters get ice time, and that the public gets ice time, and just balancing all of those different interests," she said. "And sometimes those different interests aren't necessarily for the highest-paying customer."
Another difficulty that raised concern among some Assembly members was detailed in a memo by Marc Wheeler, parks and recreation director for the City and Borough of Juneau.
"We have found enforcing contract provisions with even minor contracts, such as janitorial services, to be difficult," he wrote. "Without a serious commitment to taking management authority back for deficiencies, it would be challenging to ensure adequate facility maintenance to protect the lifespan of these public assets."
Assembly Member Neil Steininger asked city administrators why enforcing such contracts is difficult and if the Assembly can take any actions to change that.
"I'm kind of concerned by the just general statement of ‘we're not able to enforce contract provisions,’ and (it’s) probably a way bigger topic than just what we're talking about here," he said.
A low-bidder process is typically used by the city for non-professional contacts "and that just presents a very real challenge," said Deputy City Manager Robert Barr.
"Sometimes when we are awarding to the lowest bidder, sometimes that lowest bidder is great and we don't have any problems," he said. "And sometimes it's not."
Barr said he has pondered for years if not having a low-bid requirement in the city’s charter for such contracts would result in less staff effort to enforce terms. He notes disputes currently escalate to higher levels within a specific department before being sent to the city manager or city attorney.
The complexity of that question, along with specifics about the prospects of a third-party manager for facilities such as the Dimond Park Field House and Jensen-Olson Arboretum, resulted in Assembly members unanimously deciding to postpone discussions about the issue until its budget retreat scheduled Nov. 21.
Also considered by Assembly members on Monday were options for one or more third-party partners to take on operations at Eaglecrest Ski Area, which has operated at a heavy loss in recent years and in recent months saw a long-planned gondola fall through due to costs being far higher than anticipated.
A proposal to demote Eaglecrest’s board to advisory status, thus putting the Assembly and city manager directly in charge, was scheduled to be considered by the Committee of the Whole. But Assembly members unanimously approved delaying consideration of that change until after ski area officials finish a comprehensive plan for long-term options scheduled to be completed this fall.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
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