Sitka Assembly Meeting Approves $4M Transfer to Infrastructure Fund and Hires Municipal Attorney on September 24, 2024

The City and Borough of Sitka Assembly held a regular meeting on September 24, 2024, at 6:00 PM in Assembly Chambers. Mayor Steven Eisenbeisz was absent, leaving six members present. The meeting covered a consent agenda, appointments, supplemental appropriations, a $4 million transfer to the Public Infrastructure Sinking Fund, and the approval of an employment agreement for the new Municipal Attorney. All votes were 6-0. The meeting adjourned at 6:32 PM.

Consent Calendar

• 24-142: Approved the minutes of the September 5, 10, and 13 assembly meetings.
• 24-141: Approved liquor license renewal applications for Sitka Golf Association, Inc. dba Sea Mountain Restaurant & 19 Hole at 301 Granite Creek Road and Alejandro Vasquez (non-operational restaurant eating place license).

Ceremonial Matters

• Deputy Mayor Kevin Mosher congratulated the Sitka Little League Softball majors team on their summer State Championship title and their trip to California to compete.

Special Reports

• Sitka Tribe of Alaska Council Chairman Lawrence Widmark reported on recent tribal council meetings, including:
  • Approval of a resolution authorizing the 2025 annual funding agreement and reprogramming requests with the Office of Self-Governance for the Bureau of Indian Affairs.
  • Approval of a resolution authorizing Baranof Island Housing Authority to submit the FY24 Indian Housing Block Grant application.
  • A work session with the Park Service regarding the Kixadi survival march project, with a resolution passed to continue that project.
  • Approval of the middle of the 2023 financial audit for the federal clearing house.
  • Appointment of an election supervisor and designation of the community house as the tribal election location for the upcoming tribal council election in November.

Board, Commission, Committee Appointments

• 24-143: Appointed Bruce Gazaway to a three-year term on the Library Commission and Robert B. Moelder to a three-year term on the Local Emergency Planning Committee under Category 2 (Law Enforcement, Civil Defense, Fire Fighting, First Aid, Local Environmental/Hospital, and Transportation). Approved 6-0.

Unfinished Business

• ORD 24-22: Approved on second and final reading a supplemental appropriation for fiscal year 2025 for Recycling and Municipal Fleet Electrification (EECGB). The motion passed 6-0. Assembly members praised the grant acquisition effort.

New Business

• ORD 24-23: Approved on first reading a supplemental appropriation for fiscal year 2025 for Emergency Response Vessel Electronics and Harbor Department Equipment. This is a net-zero appropriation reallocating funds from supplies to fixed assets. The Harbor Department also requested a new Trimble handheld device for vessel inventory and billing. Approved 6-0.
• 24-144: Discussion and decision on the Municipal Administrator's annual recommended transfer to the Public Infrastructure Sinking Fund.
  • Finance Director Melissa Haley explained that code requires a transfer recommendation 90 days after the fiscal year end. The recommended transfer for FY24 (retroactive to June 30, 2024) is $4 million. The general fund could support up to $7 million while maintaining a stable undesignated fund balance, but a lower amount was recommended due to potential needs for federally funded capital projects (e.g., seawall, airport) and a compensation study.
  • Assembly members expressed strong support, noting that the city only used 87% of the budget last year and that the unfunded project list (the "alligators") totals about $150 million. The transfer helps leverage federal and state funding.
  • A motion to transfer $4 million effective June 30, 2024, passed 6-0.
• 24-145: Approved the employment agreement between the City and Borough of Sitka and Rachel Jones as Municipal Attorney. HR Director Josh Branthover presented, noting a nationwide search found the best candidate locally. The agreement balances stewardship of community resources with the need for legal guidance. Rachel Jones is expected to start October 7, 2024. Approved 6-0.

Persons to Be Heard

• No public comments were made on or off the agenda during the meeting.

Reports

• Liaison Representatives:
  • Scott Saline reported issues with the Library HVAC system being shut down.
  • Chris Ystad reported on the Planning Commission meeting (September 18) praising the board's professionalism and discussion of a short-term rental case. He also reported on the Port and Harbors Commission meeting (September 17), where a port study was presented. Key findings: harbor rates will likely need to increase annually unless new revenue streams are found; recommendations include a singular tariff (GPIP already has one) and potentially creating a combined port commission. Vessel hull insurance was also a major topic.
• Clerk Sara Peterson reviewed upcoming municipal election details: early voting is ongoing at Harrigan Centennial Hall (M-F 8:30-4:30, Saturdays 9-noon); Election Day is October 1 with polls open 7 AM to 8 PM. Coordination with tour operators to move visitor activity to O'Connell Bridge lightering area to keep Harrigan Hall accessible for voting.

Key Outcomes

• Appointments: Bruce Gazaway (Library Commission, 3-year term) and Robert B. Moelder (LEPC, 3-year term) appointed unanimously.
• Ordinance approvals: Supplemental appropriations for recycling/fleet electrification (ORD 24-22) passed on second reading; emergency vessel electronics/harbor equipment (ORD 24-23) passed on first reading. Both 6-0.
• Transfer to Sinking Fund: $4 million transferred retroactive to June 30, 2024. Motion passed 6-0.
• Employment Agreement: Rachel Jones hired as Municipal Attorney, start date October 7, 2024. Approved 6-0.
• All votes were 6-0 with Mayor Eisenbeisz absent. The meeting adjourned at 6:32 PM.