Sitka Assembly Meeting – April 8, 2025

The City and Borough of Sitka Assembly held a regular meeting on Tuesday, April 8, 2025, at 6:00 PM in the Assembly Chambers. The meeting was called to order by Deputy Mayor Timothy Pike (Mayor Steven Eisenbeisz and Assemblymember Thor Christianson were absent). The agenda included a special report on downtown street closures, quarterly department reports, discussion on the Commercial Passenger Vessel (CPV) tax fund balance, first readings of the FY2026 budgets (General Fund and Enterprise Funds), amendments to the parks code, acceptance of a donated AirFloor, and rescheduling of the May 27 meeting. The meeting adjourned at 7:54 PM.

Consent Calendar

• Item A (25-056): Approved liquor license renewal applications for Pioneer Liquor, Inc. dba Pioneer Bar and Pioneer Liquor Store at 216 Katlian Street.
• Item B (25-057): Approved the Health Needs and Human Services Commission 2025 goals.
• Both items were approved unanimously on a 5-0 vote (Mosher, Ystad, Pike, Carlson, Saline).

Special Reports

• Planning and Community Development Director Amy Ainslie reported on downtown street closures for 2025: Lincoln Street will remain open through May as a trial, with the Tourism Commission and downtown merchants involved. The decision will be reassessed at the end of May for the remainder of the visitor season. The city will focus on managing jaywalking and pedestrian safety, including recruiting crossing guards. Public comment was not taken on this report, but the mayor noted that public input could be directed to the planning department or Tourism Commission meetings.
• Quarterly Reports:
  • Interim Public Works Director Mark Seavey reported that the department is 87% staffed (40 of 46 billeted positions, with potential to reach 93%). Key projects: Crescent Harbor restroom replacement (on schedule, prefab install), GPIP vessel hall (substantial completion by May 18-19), and the Lake-Hurst Monastery and Kincaid Road utility project (bids came in at $11.2-11.4 million vs. a $7 million estimate; options being explored).
  • Harrigan Centennial Hall Manager Tony Rosas reported 100% full-time staffing, six seasonal applicants, and 376 port calls expected. The building is at 68% of its FY25 operating budget. Future projects include audio-visual upgrades and deployment of pedestrian safety attendants.

Public Comments & Testimony

• Public Comments on the Enterprise Fund Budget (Item F):
  • Valorie Nelson opposed the budget, citing unsustainable increases in user fees (water, sewer, garbage) and a lack of transparency in the budget’s omission of pay rates per position. She noted municipal staff increased from 152.87 FTEs in FY20 to 182.37 in the upcoming year, estimating an approximate $2.28 million annual increase in personnel costs.
  • Austin Cranford agreed, stating that community members on fixed incomes are struggling, with some paying $400-500/month for electricity while barely using it. He urged the assembly to reevaluate rates and noted that tax-exempt entities reduce city revenue.
• Public Comment on CPV Fund (Item C):
  • Austin Cranford suggested using CPV funds for the haul-out facility, noting it supports interstate commerce and could benefit fishing and passenger vessels.

Discussion Items

• Item C: Commercial Passenger Vessel (CPV) Tax Fund Balance (25-053)

  • The city reported a projected balance of $2,794,834.90 in the CPV excise tax fund. The assembly was asked to provide direction: pursue special projects, retain the balance for future initiatives, or initiate a call for public proposals.
  • Assemblymember Carlson proposed using up to $100,000 for a Crescent Harbor restroom exterior plaza and picnic shelter re-roofing, and retaining the remaining balance for large-scale projects or unanticipated needs (e.g., sea walk, Centennial Hall, lightering facilities).
  • Vote: Motion to direct the administrator to pursue those special projects with $100,000 and retain the rest passed 5-0.

• Item E: First Reading – FY2026 General Fund Budget (ORD 25-07)

  • The ordinance adopts budgets and a capital improvement plan for the General Fund, Internal Service Funds, and Special Revenue Funds for FY2026 (July 1, 2025 – June 30, 2026).
  • Assemblymember Carlson expressed concern that the capital improvement plan omitted the school district’s $30 million in scoped needs. She moved to strike the “and capital improvement plan” language from the motion, but the amendment failed (no second).
  • Debate: Others argued the capital improvement plan is a long-term planning document and does not commit funds; the FY26 budget includes $1.9 million for school capital projects. The motion passed 4-1 (Carlson opposed).

• Item F: First Reading – FY2026 Enterprise Fund Budget (ORD 25-08)

  • The ordinance adopts budgets and capital improvement plans for Enterprise Funds, amends utility rates in Title 15, and adopts moorage and harbor fees.
  • Assemblymembers acknowledged the difficulty of rate increases but stressed they are necessary to maintain aging infrastructure and meet unfunded mandates (e.g., wastewater sterilization). Rates are rising less than inflation, except for wastewater due to a capital project.
  • Vote: Passed 5-0 on first reading.

• Item G: First Reading – Parks Code Amendment (ORD 25-06)

  • Parks and Recreation Coordinator Kevin Knox explained the update to Chapter 14.05 addresses outdated practices, adds a policy section, clarifies definitions, formalizes the school district partnership, enables online reservations, and establishes clear guidelines for public use cabins (including a residency requirement for Tom Young cabin).
  • The ordinance passed 5-0 on first reading.

• Item H: Accept Donation of AirFloor (25-060)

  • The Sitka Recreation Foundation donated a 40x25-foot multi-chamber air floor for gymnastics programs. The floor is already in use at Keet Elementary. The donation included shipping costs covered by AML and Aerohead Transfer.
  • Motion to accept passed 5-0.

• Item I: Reschedule May 27 Regular Meeting to May 29

  • Municipal Clerk Sara Peterson requested the change because the Assembly Chambers will be used as an election precinct for the May 28 special election. The assembly agreed, no formal vote needed.

Key Outcomes

• Consent Calendar: Approved items A and B (5-0).
• CPV Fund Balance: Directed $100,000 toward Crescent Harbor restroom plaza and picnic shelter re-roofing; retained the remaining balance for future large-scale projects or unanticipated needs (5-0).
• First Reading – FY2026 General Fund Budget (ORD 25-07): Approved 4-1 (Carlson opposed).
• First Reading – FY2026 Enterprise Fund Budget (ORD 25-08): Approved 5-0.
• First Reading – Parks Code Amendment (ORD 25-06): Approved 5-0.
• Donation Acceptance: Accepted AirFloor from Sitka Recreation Foundation (5-0).
• Rescheduling: The May 27 regular meeting will be moved to May 29, 2025.
• Next Steps: The administration will proceed with the CPV fund projects, budgets will go to second reading, and the parks code update will be finalized. Pedestrian safety crossing guards will be recruited. The next regular meeting is scheduled for April 22, 2025 (Item D on non-profits was pulled to that date).