Assembly finance committee backs Eagle Crest move to CBJ personnel rules, forwards related resolutions

The Assembly Finance Committee on Sept. 3 voted to recommend to the full Juneau City and Borough Assembly adoption of draft resolutions that would (1) amend CBJ personnel rules to incorporate Eagle Crest staff and (2) deappropriate part of Eagle Crest’s FY26 budget after the Eagle Crest board approved a conversion plan.

Committee staff said Eagle Crest’s board and its human resources committee reviewed a proposed conversion of Eagle Crest positions from the nonprofit’s existing pay plan to the CBJ pay plan and unanimously approved the conversion and personnel-rule changes at a special board meeting on Aug. 26.

The conversion plan presented to the committee described an employee-placement process intended to keep no one at a lower salary than they currently earn and to recognize employee longevity. Under the scenario labeled “Scenario 2,” staff said employees hired before Jan. 1, 2013, would receive three step increases; those hired between Jan. 2, 2013, and Dec. 31, 2013, would receive two step increases; all others would remain at their initial placement. Staff also said an analysis would ensure no employee would receive less than a 3% increase compared with recent negotiated increases for other bargaining units.

Staff reported that, after applying conversion placements to current positions and employees, the personnel-cost increase required was smaller than the amount the assembly had appropriated in the FY26 budget. The packet included a draft deappropriation resolution the committee was asked to forward; staff noted the deappropriation amount at roughly $540,000 (packet language provided an approximate figure).

Human Resources and Risk Management Director Thomas Hargrave told the committee the personnel-rule amendments largely align Eagle Crest rules with existing CBJ personnel rules and that other updates are “modernization” housekeeping items (for example, updating references to newspaper posting and pager response to reflect online postings and cell phones).

Assemblymember Smith moved that the AFC recommend draft resolutions 4028 and 4029 to the full assembly; the committee approved the recommendation by unanimous consent.

If adopted by the assembly, the personnel-rule amendments would (a) remove a standalone Eagle Crest personnel section and substitute applicable CBJ rules for Eagle Crest employees, (b) specify the employee-placement steps described above, and (c) implement other clarifying and modernization edits staff identified in the packet.

Committee members asked about the impact on Eagle Crest’s restricted budget reserve and whether a previously projected FY26 deficit — which staff had treated as a planned draw on a restricted reserve during the budget cycle — would be resolved. Staff said the realized FY25 deficit was approximately the same size as the identified FY26 deappropriation, and that the net effect would be roughly a wash; they recommended aligning any final reserve adjustments with the FY27 budget process.

The committee forwarded both resolutions to the full assembly for introduction and further consideration.