City and Borough Assembly Regular Meeting – August 27, 2024

The Sitka City and Borough Assembly held a regular meeting on Tuesday, August 27, 2024, at 6:00 PM in the Assembly Chambers. The meeting included ceremonial recognition of outgoing Municipal Attorney Brian Hanson, approval of consent agenda items, appointment of a Historic Preservation Commission member, passage of a Tourism Commission ordinance, and decisions on street vacation, airport lease, and planning for a new convention and visitors bureau contract. All votes were 6-0, with Mayor Steven Eisenbeisz absent. The meeting adjourned at 7:42 PM.

Consent Calendar

• Approved minutes of the August 8 and 13, 2024 Assembly meetings.
• Approved a new retail marijuana store license application for Island Girl Cannabis, LLC at 224 Smith Street Suite A.
• Approved liquor license renewals for Talon Charters, Inc. dba Talon Lodge on Apple Island and Harbor Mountain Brewing Company, LLC at 1209 A Sawmill Creek Road.

Public Comments & Testimony

• Matt Donohoe (Alaska Trollers Association) thanked the Assembly for their support during a recent lawsuit against WFC, noting the city’s early financial contribution helped save the small-boat fishery. He reported that a fundraising dinner raised $23,000 and the total lawsuit cost approached $300,000.
• Lauren Wild (Early Childhood Coalition) described a meeting with Senator Dan Sullivan’s aide on August 19, attended by 32 community members. Key topics included federal block grants, childcare worker wages, and regulatory reform. She thanked Assembly members and city staff for attending.
• Holly Meyer (General Manager, Aspen Suites Hotel) urged the Assembly to seek broad industry input for the new Tourism Commission and for the upcoming CVB contract RFP, emphasizing that the contract is funded by visitor enhancement taxes paid by hotel guests.
• Tim Fulton (Chamber of Commerce board member) defended Visit Sitka’s performance and encouraged the city to invest in his company, Ramper Innovations, following examples from Anchorage and Juneau.
• Robert Hattle humorously suggested that visitors use crosswalks by telling them bears do not use them.
• Austin Cranford addressed a media article that he claimed misrepresented his earlier statements about a candidate for municipal attorney. He provided documentation from the Alaska Bar showing the candidate was suspended from September 10, 2018, to July 31, 2024, and criticized the lack of correction by the media.

Discussion Items

• Tourism Commission (Ordinance 24-21) – Second and final reading. The ordinance amends Title 2 of the Sitka General Code to add Chapter 2.32, creating a seven-member Tourism Commission with at-large seats. Assembly members discussed the importance of balanced representation; some preferred specific industry seats but the consensus was to start with at-large flexibility. The ordinance passed 6-0. Applications for the commission will be accepted until the first meeting in October.
• Neva Street Vacation (Item F) – Planning Director Amy Ainslie presented the proposal to vacate an undeveloped 340-foot by 60-foot right-of-way between Edgecumbe Drive and Davidoff Street. A 20-foot utility easement would be reserved. The Planning Commission had unanimously recommended approval. The Assembly reached consensus to proceed with the vacation and to use the increase in assessed value ($28,520 total) as the sale price, with the applicant covering survey costs.
• Sitka Airport Lease Update (Item G) – Public Works Director Ron Vinson and Administrator John Leach explained that the State DOT required an amendment to the lease due to a new FAA regulation (FRN 2023-27017) mandating separate rates for aeronautical and non-aeronautical space. The annual lease cost will increase by $636 (from 22¢/sq ft aeronautical to 38¢/sq ft non-aeronautical). The Assembly approved the update 6-0.
• Convention & Visitors Bureau Services Contract (Item H) – Sponsors Mosher and Carlson outlined the need to issue a new RFP to align the contract with the fiscal year, update services, and coordinate with the new Tourism Manager and Commission. The Assembly reached consensus to proceed with the RFP, agreed on the timeline (work session Sept 19, RFP opening mid-October, closing mid-December, selection in January, Assembly approval in April 2025), and agreed to incorporate the draft list of potential updates (including itemized billing, metrics, change order procedures, and possible tourism management services like crossing guards) into the RFP.

Key Outcomes

• Service Award – Outgoing Municipal Attorney Brian Hanson was recognized for over seven years of service.
• Consent Agenda – Approved 6-0.
• Historic Preservation Commission Reappointment – James Poulson reappointed to a three-year term (6-0).
• Tourism Commission Ordinance – Passed on second and final reading (6-0).
• Neva Street Vacation – Consensus to proceed with the sale at the increase in assessed value ($28,520).
• Airport Lease Update – Approved (6-0).
• CVB Contract RFP – Consensus to issue an RFP, adhere to the proposed timeline, and use the draft list of service updates.
• Next Steps: The September 19 work session will focus on refining the CVB RFP. The municipal election is October 1, 2024, with early voting starting September 16.