Juneau Assembly Committee of the Whole Meeting - February 24, 2026

The Assembly Committee of the Whole met on February 24, 2026 (the meeting began on February 23 and continued past midnight) to discuss several critical community issues. Topics included an update on the GLOF (glacial lake outburst flood) enduring solution and phase two flood fighting, the NRCS buyout program for View Drive, input on the Telephone Hill request for qualifications, a financing update for the Seawalk project, budget reduction strategies, and the results of the Community Compass survey. The assembly took several votes and provided direction to staff.

Consent Calendar

• The agenda was approved without changes.
• The January 26, 2026 Committee of the Whole minutes were approved by unanimous consent.

Discussion Items

GLOF Enduring Solution & Phase 2 Flood Fighting

• Director Koch presented an update on the Army Corps of Engineers’ Charrette, which identified a lake tap as the preferred long-term solution to mitigate GLOF risks. The lake tap would be a gravity-fed tunnel to drain Suicide Basin, with an estimated cost of approximately $118 million (including 50% contingency) and a timeline of 5–6 years from design to completion. By contrast, a dam or levee could cost $200–$300 million and require relocation of up to 2,855 properties.
• Deputy Director Rumsey reported on Phase 1 and Phase 2 HESCO barrier installations. Phase 2 is expected to be twice the size of Phase 1, with construction beginning mid-March 2026. The Army Corps of Engineers has awarded a contract to Sea Alaska Construction Solutions.
• City Manager Kester announced that the Army Corps had unexpectedly rescinded direction to pursue the lake tap as a selected alternative, stating they would instead support continued flood fighting for an undetermined period. The Corps indicated that an enduring solution might be “decades, not years” away. Manager Kester expressed deep frustration and said the city would aggressively advocate for the lake tap through its congressional delegation. A meeting with the Assistant Secretary of the Army is scheduled for February 26, 2026.
• Assembly members expressed shock and concern over the Corps’ pivot. Some noted that community unity on the lake tap alternative would strengthen advocacy efforts. Staff confirmed that the Corps will still fully fund Phase 2 HESCO barriers, but repairs and reinforcements to Phase 1 may cost three to four times more than anticipated.

NRCS Emergency Watershed Program & View Drive Buyout

• Director Koch presented the results of an informal poll of 18 View Drive property owners regarding participation in the NRCS buyout program. Of 14 respondents, only two expressed interest, and one was unclear. Most cited inability or unwillingness to pay the required 25% non-federal cost share.
• The program would purchase and demolish repetitively flooded homes, restoring the land to natural state. Total project cost is estimated at $25 million. The city would also incur non-reimbursable costs of $50,000–$100,000 per property beyond the 25% share.
• Assembly members discussed the viability of a single-property buyout, potential in-kind contributions (e.g., land swaps), and alternative mechanisms such as city loans or grants. Many expressed sympathy for residents facing difficult decisions.
• Staff was directed to host a neighborhood meeting (with no more than three assembly members) to further explain the program and gather feedback.

Telephone Hill RFQ Input

• City Manager Kester summarized the progress on Telephone Hill redevelopment. One occupied property remains until February 28, after which demolition design can be finalized. A preliminary developer outreach report identified key themes: flexible RFQ process, clear incentives (land at nominal cost, tax abatement, affordable housing funds), and mixed-use potential.
• Assembly members discussed priorities: housing density (100–150 units), 20% affordability, mixed-use allowed, and incentives such as nominal land sale or deferred payment, affordable housing loans, and tax abatement. Some debated whether to proceed with demolition before issuing an RFQ.
• A motion to halt demolition and redirect staff to investigate incremental infill development failed 2-5. An amendment to delay demolition until after the RFQ is issued also failed 2-5. The assembly reaffirmed the current direction: proceed with demolition and RFQ development, with flexibility for mixed-use and a range of incentives.

Seawalk Procurement & Financing Update

• Manager Kester reported that the Seawalk project (estimated $28 million) must be accelerated due to Petromarine’s construction schedule. The city will issue a revenue bond backed by marine passenger fees to finance the project. A best-interest finding is planned to work directly with contractor Western Marine for the portion concurrent with Petromarine’s work.
• Assembly members expressed support. Some requested details on bond terms and debt service. The assembly directed staff to draft an ordinance for $28 million in revenue bonds, funded by passenger fees. Motion passed without objection.

Budget Process: How Members Propose Reductions

• Finance Chair Walls presented a framework for proposing budget reductions, emphasizing that members should consider operational impacts and coordinate with the city manager before bringing reductions to the finance committee. No formal vote was taken.

Community Compass Survey Results

• Communications Director Heimbigner and survey consultant Maylani Shivens presented findings from the Community Compass survey, which received 4,400 responses (99% confidence level). Key priorities for protection: streets/roads/bridges, schools, public safety, water/wastewater. Top areas considered for cuts: tourism management, climate change/energy efficiency, economic development. Revenue generation options: property tax reform (51% support) and underperforming property fees (48%). Community value statements: making Juneau a place for working-age residents and young families was the top priority.
• Assembly members noted the survey’s design and representation challenges, including underrepresentation of lower-income residents. The survey will inform upcoming budget decisions.

Key Outcomes

• Approved the January 26, 2026 minutes.
• Directed staff to host a neighborhood meeting for View Drive residents regarding the NRCS buyout program.
• Reaffirmed direction to proceed with Telephone Hill demolition and RFQ development, with flexible incentives.
• Directed staff to draft an ordinance for $28 million in revenue bonds for the Seawalk project.
• Received the Community Compass survey report for use in budget deliberations.
• The meeting extended approximately 10 minutes beyond the scheduled time, adjourning around 12:13 AM on February 24, 2026.