Sitka Assembly Meeting July 23, 2024

The City and Borough of Sitka Assembly held its regular meeting on July 23, 2024, at 6:00 PM in Assembly Chambers. The meeting included ceremonial recognition of U.S. Coast Guard Day, a legislative update from Representative Rebecca Himschoot, unanimous approval of four charter amendment ordinances to be placed on the October 1 ballot, approval of a renewal option for the Convention and Visitors Bureau contract, discussion on a draft RFP for the Jarvis Street Horticulture Site, hiring of a new Human Resources Director, and direction to schedule a municipal attorney candidate interview. All votes were 7-0 except for one 6-1 vote on a supplemental appropriation.

Ceremonial Matters

• Mayor Eisenbeisz presented a citation honoring U.S. Coast Guard Day (August 4th) to Commander Rand Semke. Commander Semke thanked the assembly and community, noting that Sitka is one of 34 designated Coast Guard cities and that Coast Guard personnel have been stationed in Sitka for 47 years. He called Sitka one of the most welcoming communities he has served in over 19 years.

Special Reports: Legislative Update

• Representative Rebecca Himschoot (House District 2) provided an update on the 2024 legislative session. Key points:
  • A balanced state operating budget of $11.2 billion was passed for the second consecutive year, including a $1,360 PFD and $295 energy relief payment per Alaskan (tax status uncertain).
  • $175 million in one-time school funding (approx. $680 per student) was not vetoed; $5.2 million for the Alaska Reads Act was vetoed.
  • The capital budget ($4 billion, 80% federal) included funding for school major maintenance (critical projects funded), University of Alaska maintenance ($28 million, some for UAS Sitka), renewable energy fund ($14.5 million, vetoed to $3.8 million, removing a Pelican project), Alaska Housing Finance Corporation ($76 million), harbor matching grants ($7 million), and a replacement vessel for the state troopers (critical after the Wrangell landslide).
  • Community assistance funding for Sitka is okay for 2025, but $20 million was removed, impacting 2026.
  • Key policy bills passed: HB 244 (broad-based SNAP eligibility), SB 189 (child care tax credits), Alaska Performance Scholarship upgrades (including CTE pathway), funding for opioid reversal drugs in schools, HB 66 (stiffer drug penalties and a study on overrepresentation of Alaska Natives in corrections), 10 additional VPSOs, and funds for missing and murdered Indigenous people investigations.
  • Fisheries legislation: HB 19 (simplified registration for commercial fishing vessels), increased Fishermen’s Fund payout from $10,000 to $15,000, interest rate cap at 5.25% for three years on commercial fishing loans and loan cap raised from $200,000 to $400,000, and creation of a seafood task force.

Consent Calendar

• A motion to approve the consent agenda (Item A) passed 7-0. The item approved three liquor license documents: renewal for American Legion Post #13, renewal for Westmark Sitka Hotel, and transfer of ownership/restaurant endorsement from The Longliner Lodge & Suites to The Galley Restaurant, all at their respective addresses.

Board, Commission, Committee Appointments

• A motion to appoint Dusty Kidd to a three-year term on the Animal Hearing Board and reappoint Scott Wagner to a two-year term on the Gary Paxton Industrial Park Board passed 7-0.

Unfinished Business (Ordinances on Second and Final Reading)

• ORD 24-16 (Charter Amendment – Budget Administration): Unanimously passed 7-0 to amend Section 11.13 of the Home Rule Charter. The question will be submitted to voters on October 1, 2024.
• ORD 24-18 (Charter Amendment – Recall): Unanimously passed 7-0 to amend Section 6.02. The question will be submitted to voters on October 1, 2024.
• ORD 24-19 (Zoning Map Amendment – 201 Price Street): Unanimously passed 7-0 to rezone the property from Industrial (I) to General Commercial Mobile Home (C-2). Deputy Mayor Mosher noted that the item had been thoroughly discussed at the prior assembly meeting and by the Planning Commission.
• ORD 24-20 (Supplemental Appropriations FY2025 – Chamber/Visit Sitka): Passed 6-1 (Christianson opposed) on second reading. This ordinance provides supplemental funding for the Chamber/Visit Sitka contract and base funding.

New Business

• Item G – Renewal Option 4 of 5 with Greater Sitka Chamber of Commerce for CVB Services: Approved 7-0 to authorize renewal through December 2025. Several assembly members expressed interest in issuing a Request for Proposals (RFP) before the next renewal (Option 5) due to changes in the visitor industry. Administrator Leach noted that if the assembly desires an RFP, a future agenda item providing general direction would be needed. The contract termination clause requires six months’ notice.
• Item H – Discussion/Direction on Draft RFP for Jarvis Street Horticulture Site: Planning Director Amy Ainslie presented the draft RFP. The property is zoned Public Lands and would be leased with a milestone-based structure: initial 3-year term (development planning, permitting, remediation), then 2-year construction term, then 5-year renewal terms up to 30 years total. Five equally weighted scoring criteria (20 points each): experience/qualifications, development plan, operating plan, financial viability, and community benefit. Assembly members supported the structure and equal weighting. They requested adding a reporting requirement at the time of renewals (e.g., metrics on community benefit and production, such as pounds of vegetables) to ensure the site meets its mission. The RFP will be amended accordingly and released.
• Item I – Hire of Josh Branthoover as Human Resources Director: Approved 7-0. Administrator Leach reported that the position had been vacant since summer 2023. A nationwide search through a recruiting firm yielded 16 applications; after interviews, the panel unanimously recommended Branthoover. He starts August 1, 2024.
• Item J – Discussion/Direction/Decision to Schedule Municipal Attorney Candidate Interviews: The assembly discussed two applicants. After deliberation, they directed staff to set up an interview with Rachel Jones on Thursday, August 8, 2024, and to send a letter to the other candidate declining further consideration. The assembly also agreed to keep the position listing open throughout the process.

Persons to Be Heard

• Austin Cranford: Congratulated new HR Director Branthoover and raised a concern about a tour bus failing to yield to an emergency vehicle (fire truck) on Sawmill Creek Road, citing Alaska law (13 AAC 02.140). He asked what the city is doing to address this issue.
• Joel Hanson (speaking on behalf of SICA Local Foods Network and Transition Sitka): Commented on the Draft RFP for the Jarvis Street Horticulture Site. He requested more flexibility in utility requirements (e.g., allowing a porta-potty initially instead of a plumbed facility) and appreciated the milestone-based lease structure. He noted that the proposers would address these in their proposal.

Reports

• Mayor Eisenbeisz: Reported a meeting with Disney Cruise Line representatives; indicated Sitka is unlikely to become a mainstay for Disney due to a lack of curated services. He also attended a Sitka Tribe of Alaska meeting and announced he will be absent for the August 13 and 27 meetings.
• Administrator Leach: Announced 42 city staffing vacancies, noting nationwide challenges in recruiting for specialized positions (planning, engineering, police). He will participate in an Alaska Municipal League panel on managing large vacancies.
• Attorney Gatti: Provided a brief update on ongoing legal matters, contracts, and easements.
• Liaison Representatives: Christianson reported on the Gary Paxton Industrial Park Board meeting, including progress on the haul-out project. Boats will be pulled out in spring 2025; funding challenges exist but the project is staying within budget. There may be a future proposal to allocate interest earnings from the permanent fund to offset inflation costs.
• Clerk Peterson: Reviewed board/commission vacancies (Animal Hearing Board, Health Needs, Historic Preservation, Investment Committee, Local Emergency Planning, Police and Fire Commission, Sustainability Commission) and election details: candidate filing open until August 2, 5 PM for October 1 regular election (seats: mayor, two assembly, two school board).
• Carlson: Reported ongoing work on tourism task force recommendations, including e-bike dynamics and economic impact studies.

Key Outcomes

• Unanimously approved consent agenda (liquor licenses) 7-0.
• Appointed Dusty Kidd and reappointed Scott Wagner to boards 7-0.
• Approved three charter amendment ordinances (budget, recall) on second reading to appear on October 1 ballot (both 7-0).
• Approved zoning map amendment for 201 Price Street 7-0.
• Approved supplemental appropriations FY2025 6-1.
• Authorized CVB contract renewal option 4 of 5 through December 2025 7-0.
• Endorsed the draft RFP for Jarvis Street Horticulture Site with addition of renewal reporting requirements; staff to finalize and release.
• Approved hire of Josh Branthoover as HR Director 7-0.
• Directed staff to schedule interview with Rachel Jones for Municipal Attorney on August 8, 2024; other candidate notified.
• The meeting adjourned at 7:15 PM.