Sitka City and Borough Assembly Regular Meeting – January 23, 2024

The Sitka City and Borough Assembly held a regular meeting on January 23, 2024, at 6:00 PM in the Assembly Chambers. Key actions included approval of the FY2023 audit with a clean opinion, amendments to all-purpose vehicle (APV) regulations removing overnight curfew, supplemental appropriations for the Fishermen's Work Float and Thomsen Harbor Lift Station replacement, adoption of legislative priorities, and discussions on municipal attorney recruitment, visitor services, and a downtown sidewalk closure linked to a structurally unsafe building. Two executive sessions were held concerning police department operations and labor relations.

Special Reports

• Sitka Tribe of Alaska Chairman Lawrence Widmark reported on the annual retreat and December business meeting, including election of officers and committee assignments.
• Joy Merriner of BDO presented the FY2023 audit results, announcing an unmodified (clean) opinion on financial statements and single audit. The city had $37 million in general fund revenues and $28 million in expenditures, with an ending fund balance of $21 million ($6.5 million unassigned). No material weaknesses or significant deficiencies were identified. The city implemented GASB 96 for IT subscription assets. Total federal awards of $1.5 million and state awards of $3.3 million were audited with no findings.

Public Comments & Testimony (First Session)

• Sam Pointer criticized municipal administration and the handling of a past administrator dismissal.
• Richard Wein commented on education standards and tourism impacts, urging preservation of Sitka's character.

Board, Commission, Committee Appointments

• Tourism Task Force At-Large Seat: Ian Dempster and Ryan Gluth were nominated. After public comments from Richard Wein, Klaudia Leccese, and Barb Bingham – who argued the task force needed a non-industry voice – the Assembly voted 6-1 to appoint Ryan Gluth.

Unfinished Business

• ORD 24-01 – APV Ordinance Amendment (Title 11): First reading. Public testimony from Mike Finn (Sitka Train Riders) and Richard Wein supported removing the midnight-to-5 AM curfew. Assembly member Ystad moved to strike Section G (hours of operation), which passed 7-0. The amended ordinance was approved on first reading 7-0, requiring a second reading on February 13.
• ORD 24-02 – Fishermen's Work Float Fortification: Second and final reading. Public comment from Richard Wein supported the project. Debate centered on revenue generation ($1,200/year) versus the float's role in supporting the fishing fleet (which generated $1.4 million in raw fish tax in FY2023). The ordinance passed 6-1 (Mayor Eisenbeisz opposed).

New Business

• ORD 24-03 – Mid-Year Supplemental Appropriations: First reading. Finance Director Melissa Haley explained net-zero transfers, grant appropriations, and a $15,000 allocation for employee housing. Public comments from Richard Wein and Austin Cranford questioned the housing costs and overall fiscal impact. Approved 7-0 on first reading.
• ORD 24-04 – Thomsen Harbor Lift Station Replacement: First reading. Public Works Director Ron Vinson detailed the 40-year-old lift station's imminent failure, a $1.7 million supplemental appropriation (bringing total to $4.5 million), and a risk analysis. Public comments noted the 37% cost increase since 2022. Approved 7-0 on first reading.
• 24-011 – Municipal Attorney Recruitment: Discussion. Assembly consensus to finalize the job description, advertise in Alaska and the Pacific Northwest, and conduct the first review of applications on April 1. Flexibility on remote work was considered.
• RES 24-04 – Alaska Energyshed Project Application: First and final reading. Sustainability Coordinator Bri Gable explained the grant would create an electric infrastructure inventory with minimal cash match (in-kind staff time). Public comment from Richard Wein raised concerns about proprietary data sharing with venture capitalists. Approved 7-0.
• RES 24-05 – FY2025 State Legislative Priorities: First and final reading. Government Relations Director Melissa Henshaw reviewed priorities including marine haul-out, Green Lake hydro rehab, police station, and harbor program inflation adjustments. An amendment to clarify visitor safety wording was adopted. Approved 7-0.
• 24-012 – Convention and Visitor Bureau Services: Discussion. Sponsors Carlson and Mosher noted the current contract (dated 2018) may not align with current needs. Assembly agreed to schedule a work session to reassess scope and consider a future RFP. Input from the Tourism Task Force (due April) will be incorporated.
• 24-013 – Katlian Street Sidewalk Closure: Discussion. Sponsors Saline and Christianson expressed concerns about pedestrian safety from a structurally compromised building on restricted trust land. Municipal Administrator Leach and STA Realty Officer Alexandra Schauer outlined BIA involvement and legal constraints. Assembly decided not to move barriers closer to the building, maintaining current closure, but will seek a report from BIA.

Public Comments & Testimony (Second Session)

• Peter Hagan strongly criticized tourism overcrowding, diesel exhaust, and lack of regulation.
• Robert Moelder requested an executive session to discuss police department issues.
• Richard Wein raised concerns about the Energyshed project's potential private equity ties and the Katlian risk.
• Austin Cranford defended APV riders, supported the work float, and cited Alaska law allowing condemnation of unsafe buildings.
• Gary Cranford commented on ATV issues and the presence of occupants in the restricted-deed homes.

Reports

• Mayor Eisenbeisz noted a strategic planning session.
• Administrator Leach announced upcoming travel (Pacific Northwest Cruise Symposium and Southeast Conference) and acting administrators.
• Liaison Reports: Carlson reported Tourism Task Force meeting; Ystad reported Port and Harbors Commission updates on the Marine Service Center RFP.
• Clerk Peterson listed board vacancies and announced the next regular meeting on February 13 and a budget meeting on February 8.
• Mosher provided an informal update on SEARHC home health services, noting continued provision.

Executive Session

• The Assembly entered executive session at 9:45 PM to receive a legal update from Police Chief Robert Baty on police department operations (reconvened at 10:25 PM).
• A second executive session was held from 10:30 PM to 10:56 PM to discuss labor relations issues with outside counsel Kimberly Geariety, including Police Chief Baty and Interim Utility Director Mike Schmetzer. Both sessions were approved 7-0.

Key Outcomes

• ORD 24-01 (APV amendments): Approved on first reading as amended (remove curfew). Second reading scheduled February 13.
• ORD 24-02 (Work Float): Approved on second and final reading (6-1).
• ORD 24-03 (Mid-Year Supplemental): Approved on first reading (7-0).
• ORD 24-04 (Lift Station): Approved on first reading (7-0).
• RES 24-04 (Energyshed): Approved on first and final reading (7-0).
• RES 24-05 (Legislative Priorities): Approved on first and final reading (7-0).
• Tourism Task Force Appointee: Ryan Gluth appointed (6-1).
• Municipal Attorney Recruitment: Consensus to advertise in Alaska/Pacific Northwest, first review April 1.
• Visitor Services: Work session to be scheduled.
• Katlian Street Closure: Maintained current barriers; Assembly will seek a BIA update.
• Executive Sessions: Held on police operations and labor relations; meeting adjourned at 10:58 PM.