Sitka City and Borough Assembly Meeting - May 14, 2024

The Sitka City and Borough Assembly met on May 14, 2024, at 6:00 PM in Assembly Chambers. The meeting included a special report on the Sitka Housing Summit, approval of multiple ordinances, and public comments addressing childcare, budget concerns, and an alleged $60,000 fraud incident. The meeting adjourned at 7:34 PM.

Consent Calendar

• RES 24-11: Authorized a 50/50 matching grant application to the Office of Justice Programs – Bulletproof Vest Partnership. Approved unanimously on consent.

Public Comments & Testimony

• Loren Wild (Childcare Now coalition) reported on a career pathways summit and new early childhood education classes in high schools, and noted the opening of a therapeutic preschool by Sitka Counseling.
• Richard Wein commented on several items: supported the childcare initiative, suggested quarterly department head reports be given verbally, discussed the Katleann Street project (unfunded, cost $8.7M), and noted the Producer Price Index increase.
• Austin Cranford thanked presenters for the housing summit, raised concerns about high interest rates (prime rate 8.5%, loan rates ~11.5-12%), and alleged that the city was defrauded of $60,000 via an email scheme, questioning transparency and requesting a response.
• Richard Wein also spoke on board appointments (supporting Trish White and Shauna Thornton), the tax exemption for Youth Advocates of Sitka (questioning valuation and process), and the FY2025 budget (noting 181 FTEs, rising costs, and reliance on tourism).
• Rachel Roy (Visit Sitka) noted that the visitor enhancement fund in the budget was missing the contract amount for Visit Sitka.
• Keith Nyitray and Bruce Gazaway (Sitka Maritime Heritage Society) spoke in support of the historic preservation covenant for Japonski Island Boathouse, highlighting grant funding and community benefits.
• Richard Wein also spoke on the enterprise fund budget (rate increases) and the Clean Energy to Communities project (criticizing buzzwords and suggesting funds be used for workforce incentives).

Special Report: Sitka Housing Summit

• Amy Ainslie (Planning Director) and Robin Sherman (STA Communications) presented findings from the March housing summit and April community meeting.
• Key statistics: Over half of Sitka renters pay more than 30% of income on housing; 58% of Native households are cost-burdened; median household income $95,261; average home price $500,000; affordable monthly housing cost for median income is ~$2,400.
• Discussed challenges: limited developable land, high construction costs, lack of backbone infrastructure, market forces, and low density.
• Identified priorities: higher density housing, stronger incentives for year-round housing, preserving mobile home parks, tiny home neighborhoods, and a wet climate research center.
• Next steps: Tribal Council work session in June, first meeting of the Sitka Housing Network.

Discussion Items

• Board Appointments (B 24-070): Reappointed Trish White to the Local Emergency Planning Committee and Shauna Thornton to the Port and Harbors Commission. Approved 5-0.
• Unfinished Business – ORD 24-09A: Authorized a property tax exemption for Youth Advocates of Sitka, Inc. for property at 3411 Halibut Point Road. Approved on third and final reading 5-0.
• New Business – ORD 24-10: Supplemental appropriation for FY2024 to replace a Harbor 300HP outboard motor. Approved on first reading 5-0.
• New Business – ORD 24-11: Adopted budgets and capital improvement plan for General Fund, Internal Service Funds, and Special Revenue Funds for FY2025. Approved on first reading 5-0. Discussion noted a 14.6% budget increase, $18 million deficit, and reliance on tourism revenue.
• New Business – ORD 24-12: Adopted enterprise fund budgets for FY2025, including rate increases: water 4%, wastewater 8.25%, solid waste 4%, moorage 4%, and electric customer charges. Approved on first reading 5-0.
• New Business – ORD 24-13: Supplemental appropriation for FY2024 for the Clean Energy to Communities (C2C) project ($500,000 from NREL). Approved on first reading 4-1 (Saline opposed).
• New Business – 24-071: Approved a 20-year historic preservation covenant with the State of Alaska Historic Preservation Office for the Japonski Island Boathouse. Approved 5-0.

Key Outcomes

• All consent and appointment items passed unanimously.
• ORD 24-09A (tax exemption) passed 5-0.
• ORD 24-10, 24-11, 24-12 passed on first reading 5-0.
• ORD 24-13 passed 4-1 (Saline dissenting).
• The 20-year historic preservation covenant was approved 5-0.
• The assembly will hold a special meeting on May 16, 2024, to discuss tourism task force recommendations.
• No action was taken on the fraud allegation; the public was advised to await a city response.