City and Borough of Sitka Assembly Regular Meeting - April 23, 2024
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City and Borough of Sitka Assembly Regular Meeting - April 23, 2024
The Sitka Assembly met on April 23, 2024, at 6:00 PM in Assembly Chambers. The meeting included a school board budget update, public comment on various issues, approval of consent items, a failed board appointment, approval of an increased driver facility charge, approval (with a one-year sunset) of a property tax exemption for Youth Advocates of Sitka, and authorization to apply for an energy efficiency block grant. Assembly Member Christianson left at 7:00 PM and missed later votes.
Consent Calendar
- Approved minutes of the April 4, 9, and 16 Assembly meetings (Item A).
- Approved a package store sampling endorsement application for Triple C Ventures, Inc. dba Watson Point Liquors at 1867 Halibut Point Road (Item B). The motion passed 7-0. One public commenter opposed the endorsement, citing alcohol problems in Sitka and insufficient controls.
Public Comments & Testimony
- Valorie Nelson (during Persons to be Heard and on several items) criticized city administration, the electric department, and police department operations, alleging lack of transparency.
- Richard Wein commented on multiple agenda items: he opposed the alcohol sampling endorsement, questioned the driver facility charge increase, supported the energy block grant but questioned plastic recycling, and called for a review of all optional property tax exemptions.
- School Board President Tristan Guevin provided a special report on the district's budget. He outlined deficit scenarios depending on state Base Student Allocation (BSA): at $340 BSA – $2.3M deficit, equivalent to 22-23 positions; at $500 BSA – $1.9M deficit, 18-19 positions; at $680 BSA – $1.4M deficit, 14-15 positions. He noted the BSA has only increased $30 since 2016; if pegged to inflation it would be $1,413 higher.
- Heather Meuriet (Executive Director, Youth Advocates of Sitka) and Keith Brady (YAS board) spoke in support of the property tax exemption.
- Austin Cranford spoke regarding his failed commission appointment, stating he has no personal conflicts and wants the city to operate legally and ethically.
Discussion Items
School Board Report (Special Report)
- Tristan Guevin reported that state education funding remains uncertain due to the governor's veto of a BSA increase. The district is budgeting based on a $340 one-time equivalent but is also preparing for other scenarios. The district will finalize its budget by May 1, 2024, and may need revisions later. He emphasized the need for the state to adequately fund education.
Board, Commission, Committee Appointments
- Katherine Prussian was reappointed to a three-year term on the Parks and Recreation Committee (motion passed 7-0).
- Austin Cranford was considered for an unexpired term on the Police and Fire Commission. After public comment and assembly deliberation, the motion failed 2-5 (Yes: Saline, Eisenbeisz; No: Christianson, Carlson, Pike, Ystad, Mosher). Some members expressed concerns about his perceived adversarial stance toward the police department.
ORD 24-07S – Driver Facility Charge Increase (Second Reading)
- The ordinance amends Title 4, Chapter 4.85 to increase the driver facility charge from 4% to 8% (resulting in total taxes on rentals estimated at 24% as noted by a commenter). The ordinance passed 6-1, with Assembly Member Carlson voting no. Public comments: Richard Wein opposed, suggesting taxing cruise passengers instead; Valorie Nelson opposed any new fee; Austin Cranford suggested exempting rentals not using the airport. Assembly discussion noted the increase aligns with other airports and helps fund the airport master lease; a future exemption for non-airport rentals was discussed.
ORD 24-09 – Property Tax Exemption for Youth Advocates of Sitka (YAS) (Second Reading)
- The ordinance authorizes an optional property tax exemption for the YAS property at 3411 Halibut Point Road. The application met code criteria; assembly was reminded they have discretion. After debate, Assembly Member Pike proposed an amendment to sunset the exemption after one year. The amendment passed 5-1 (Mosher opposed, Christianson absent). The amended ordinance then passed 6-0, requiring a third reading (scheduled for May 2 or May 14). Public comment: Valorie Nelson opposed; Richard Wein asked for a review of all optional exemptions; Heather Meuriet and Keith Brady supported. Assembly discussion focused on the need for performance review and broader policy changes.
F 24-064 – Authorize Application for Energy Efficiency and Conservation Block Grant
- Sustainability Coordinator Bri Gabel presented the grant: $75,300 total, with $65,000 for recycling improvements (containers, education) and $10,300 for installation of two Level 2 EV chargers for the municipal fleet. The motion passed 6-0. Public comment: Richard Wein supported but expressed skepticism about plastic recycling. Assembly members thanked staff for aligning the grant with the strategic plan.
Key Outcomes
- Consent agenda (items A & B) approved 7-0.
- Katherine Prussian reappointed to Parks and Recreation Committee 7-0.
- Austin Cranford appointment to Police and Fire Commission failed 2-5.
- ORD 24-07S (driver facility charge increase) passed 6-1 on second and final reading.
- ORD 24-09 (YAS property tax exemption) was amended with a one-year sunset (5-1) and then passed 6-0 on second reading; a third reading is required.
- Authorization to apply for the EECBG grant passed 6-0.
- Meeting adjourned at 8:07 PM.
Reports
- Mayor Eisenbeisz reported on the DC lobbying trip, including discussions with the Forest Service about a potential land exchange for housing in the Indian River valley and a $250,000 state land study.
- Administrator Leach reported on meetings with federal agencies regarding grants, housing programs, and the Northwest Managers Conference. He noted he pitched hosting the 2026 conference in Sitka.
- Clerk Peterson listed upcoming meetings: special meeting April 25, budget meeting May 2, and government-to-government dinner April 30.
Meeting Transcript
The assembly of the city and borough of Sitka would like to respectfully acknowledge the traditional first people of Sheetka. With gratitude, we proceed on Clinkett Ani. Sarah Roll Call, please. Mayor Eisenbais. Present. Mr. Mosier. Here. Mr. Pike. Here. Mr. Yested? Here. Mr. Christensen. Here. Ms. Carlson. Here. And Mr. Selene. Here. Thank you. Any correspondence or agenda changes this evening? I do have one to notify the assembly and the public about. Is you'll notice the property tax exemption for Sheldon Jackson Child Care Center is not on the agenda tonight for a second reading. After further research, our assessor Larry Reeder in found uh found a word in state or wording in state code that uh they qualify for a mandatory education exemption, and so we don't need a second reading of that ordinance as they already um qualify. So that's that's why we don't see it on tonight's agenda. Any other correspondence? Thank you. Um ceremonial matters. We do have a scheduled special report this evening from the school district. Tristan, Mayor Eisenbeis Assembly. Uh thank you for having me here today. My name is Tristan Gavon. I'm the president of the SICA school board, and I'm here to provide a monthly report and really focused on an update uh on our budget process, where our budget is and the process moving forward. Um, you know, unfortunately, I don't have a lot of great news to share with you. As I reported last time, uh the Senate Bill 140 that had the $680 BSA increase that that passed in a historic 56 to 3 vote by the legislature was then vetoed by Governor Dunleavy, and unfortunately the veto override failed by by one vote. And so right now there's we're left kind of wondering what education funding is going to look like from the state. Um there's been a budget put forward by the House with a $680 one-time equivalent to the BSA. Um, but still we we don't really know what that's gonna be. Last year, that 680 uh one-time equivalent was passed by the legislature only to be vetoed or for half of that to be vetoed by Governor Dunleevy. And so I wanted to share where we are. Um, and so our our revenues are really unknown at this point. We're moving forward assessing multiple um scenarios, looking at um right now our assumption is based on a $340 one-time equivalent to the base student allocation. So that's the same that was passed that went through last year, the same amount we received from the state last year. Um so we're looking at that 340 amount, but also looking at 500, 680, and a worst-case scenario of zero, which we really haven't contemplated much because it would really be catastrophic to to the district and the kind of education we can provide. And so even exhausting basically our full fund balance where we are in terms of the reductions we're looking at at a zero, we're looking at a 3.15 million dollar deficit, and so that's the equivalent of about 33 positions being reduced. Um we're looking for other ways, ways to reduce expenses, but really at this point, you know, the last 10 years or so we've been cutting and cutting and cutting, and there's not much, there's not much to cut other than personnel.
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