Sitka Assembly Meeting Summary: Haul Out Bid, Cruise Vote, Fees, and More (2025-03-25)

This regular meeting of the Sitka City and Borough Assembly, held on March 25, 2025, at 6:00 PM in Assembly Chambers, covered a wide range of issues, including a special election for a cruise visitor limit, a controversial bid for the Gary Paxton Industrial Park (GPIP) haul out, adoption of the 2025 Parks and Recreation fee schedule, and support for a climate initiative grant. The meeting extended past 10:30 PM, and the assembly voted not to extend further, leading to the adjournment with several agenda items left unconsidered.

Consent Calendar

• Liquor License Renewal (Item A): Unanimous approval (7-0) to forward a liquor license renewal application for Allen Marine Tours, Inc. at Lot 6, Finn Island to the Alcohol Beverage Control Board.
• Board/Commission Appointments (Item B): Unanimous approval (7-0) of appointments: Steve Johnson to the Historic Preservation Commission, Sandra Fontaine to the Library Commission, and Tamy Stevenson to the Port and Harbors Commission, each for three-year terms.

Public Comments & Testimony

• Healthcare Concerns: Valerie Nelson, a 70-year resident, shared that she was denied care at the local hospital after voting against the 2018/2019 takeover. She stated she was told she was denied because she is not Native and because she voted against the takeover. Claudia Losses echoed similar concerns, noting that some services are only available to beneficiaries.
• Childcare Crisis: A representative from Betty Eliason Childcare Center urged the assembly to prioritize solutions for the childcare crisis, citing struggles to recruit and retain staff due to low wages and benefits, leading to temporary closures and reduced access. A former board member emphasized that childcare is essential to the community and economy.
• Haul Out Operation (Item D): Numerous public comments were made during the discussion on the GPIP haul out. Most commenters, including representatives of the Alaska Longline Fishermen's Association, Sitka Community Boatyard, and many local fishermen, opposed the HighMark bid, citing high rates, lack of competitive bidding, and a preference for a city-run yard. A few expressed conditional support or provided personal anecdotes, such as one fisherman ready to haul out and another who provided detailed cost comparisons.
• Parks and Recreation Fees (Item F): Representatives from Sitka Little League and other youth sports organizations opposed the proposed hourly field fee structure, stating it would drastically increase their costs, potentially by $6,000 or more, and could force them to raise registration fees. They requested a delay or adjustments. Sitka U Soccer supported the hourly structure, noting it would prevent field-hoarding and promote equitable access.

Discussion Items

• Special Election for Cruise Visitation Limit (Item C): The assembly approved Ordinance 2025-05 on second and final reading, setting a special election for May 28, 2025, to ask voters whether to limit cruise visitation in Sitka and add Title 25 "Tourism" to the municipal code. The ordinance incorporated a revision to count scheduled passengers ashore, rather than lower berth capacity. Assembly member Kevin Mosher noted that the ordinance was a required formality given the certified petition.
• GPIP Haul Out and Shipyard Operations (Item D): The assembly discussed the bid from HighMark Marine Fabrication to operate the haul out. Key points included: HighMark's bid was the only response to the ITB; the GPIP board recommended accepting the bid but excluding the Northline Building warehouse, while the assembly ultimately voted to accept the bid as presented, including the building. Concerns about rates ($27-$100 per foot for haul out, $1.80 per foot for storage), lack of competitiveness, and the city's analysis of operation costs were raised. Staff clarified that a city-run operation would likely be more expensive due to employee benefits (e.g., 22% PERS contributions) and union obligations. HighMark representatives stated they were open to negotiation and annual reviews. The motion to accept the bid as presented passed 6-1, with Assembly member Scott Saline dissenting. The next step is final negotiation of the operating agreement, which will return to the assembly for final approval.
• 2025 Parks and Recreation Fee Schedule (Item F): The proposed fee schedule introduced new membership options, changed outdoor field fees from per-player to hourly rates, and increased the Tom Young Cabin rate (though staff clarified the current rate is $50/night, not $40 as in the memo). Public testimony from Little League highlighted a potential cost increase from $1,025 to around $8,000 due to the hourly rate. The assembly voted 6-0 to adopt the fee schedule but amended it to delay implementation of field fees until August 1, 2025, to give organizations time to adjust.
• ALFA Climate Smart Grant (Item G): The assembly considered a letter of support and in-kind staff support for the Alaska Longline Fishermen's Association (ALFA) Climate Smart Community Initiative Grant application. The grant requires municipal support, but not direct funding. The motion passed 6-1, with Kevin Mosher dissenting, citing concerns about staff time and the need for a more deliberate plan. The motion included a cap of 5 hours per month for staff involvement.

Key Outcomes

• Ordinance 2025-05 Approved (6-0): Set special election for May 28, 2025, on cruise visitor limit initiative.
• HighMark Bid Accepted (6-1): Assembly accepted the HighMark Marine bid as presented. The final operating agreement will be negotiated and return to the assembly for approval.
• 2025 Parks and Recreation Fee Schedule Adopted (6-0): Amended to delay field fee implementation until August 1, 2025.
• Letter of Support for ALFA Grant Approved (6-1): The city will provide a letter and in-kind staff support up to 5 hours per month.
• Adjournment: The assembly voted not to extend the meeting past 10:30 PM, leaving several agenda items unaddressed, including the appeal for the subdivision at 305 Islander Drive (Item E, previously pulled) and the CPV Tax Fund balance discussion (Item H).