Sitka Assembly Regular Meeting - May 29, 2025

The Sitka City and Borough Assembly met on Thursday, May 29, 2025, at 6:00 PM in the Assembly Chambers. The meeting was called to order by Mayor Steven Eisenbeisz and adjourned at 10:10 PM. Six members were present (Christianson, Mosher, Eisenbeisz, Pike, Carlson, Saline); one was absent (Ystad). The agenda included special reports, a consent agenda, a board appointment, three ordinances on second reading, the sale of city equipment, a cell tower appeal, a discussion on Lincoln Street closures, and a discussion on the new Visit Sitka contract. Key decisions included approving the consent agenda, reappointing Wendy Alderson to the Planning Commission, passing all three ordinances, authorizing equipment sales, directing the appeal to the State Office of Administrative Hearings, and referring the Visit Sitka contract to the Tourism Commission.

Special Reports

• Alaska Permanent Fund Corporation: Executive Director Deven Mitchell and Board Chair Jason Brune presented a proposed constitutional amendment (SJR5/HJR10) to merge the fund's two accounts into a single endowment, capping annual draws at 5% of market value. They emphasized the fund's importance as 60% of the state general fund now comes from the Permanent Fund. The presenters offered to assist the assembly in drafting a resolution of support.
• Sitka Tribe of Alaska: Council Member Alana Peterson provided updates on tribal council activities, including support for the Salmon Vision Collaboration Fund, a letter supporting the Southeast Alaska 2030 economic development strategy, and the SNEP 50th anniversary celebration. She also announced the annual picnic on July 12.
• Assessing Department: Director Larry Reeder reported that the tax roll would be certified that evening, over $100 million in taxable value was added this year (mainly from new construction and residential reappraisal), and approximately 100 reviews and inquiries were conducted during appeal season. The department is developing a trend model to capture Sitka's real estate market annually.
• Legislative Report: Representative Rebecca Himschoot provided a brief legislative update, noting the importance of addressing community needs with state spending.

Consent Calendar

• Items B and C (RES 25-07 setting millage rates for FY2025-2026 and liquor license renewal for Ernie's Bar) were approved on a single motion, 6-0.
• Item A (RES 25-08 supporting federal workers and agencies) was pulled from the consent agenda by Assembly Member Mosher and approved separately on first and final reading, 6-0.

Board, Commission, Committee Appointments

• Item D: Wendy Alderson was reappointed to a three-year term on the Planning Commission, 6-0.

Unfinished Business

• ORD 25-10 (Supplemental appropriations for FY2025: Homeland Security Grant for Alaska Travel and Fire Department Radios) was approved on second and final reading, 6-0.
• ORD 25-11 (Supplemental appropriations for FY2025: Procurement of EV Transit Van for Parks and Recreation) was approved on second and final reading, 6-0. The administrator confirmed no additional insurance requirements for the van.
• ORD 25-12 (Amending Title 10 and Title 22 to regulate onsite marijuana consumption facilities) was approved on second and final reading, 5-1. Deputy Mayor Pike voted no.

New Business

• Item H: Authorized the sale of two pieces of equipment (a 1992 CAT 140 grader and a Moore Bark 1000 tub grinder) valued at over $25,000 each, in accordance with Sitka General Code 18.10.020. The motion passed 6-0. The proceeds from the tub grinder ($51,000) will go to the solid waste enterprise fund, and the grader gain ($11,000) will go to the general fund.
• Item I: Consideration of an appeal by Central Council of the Tlingit & Haida Indian Tribes of Alaska dba Tidal Network for a height variance for a communications tower at 116 Nancy Court. The Assembly convened as the Board of Adjustment but could not proceed due to lack of quorum after multiple members recused themselves due to conflicts or ex-parte communications. The Assembly directed the Municipal Administrator to contract with the State of Alaska Office of Administrative Hearings to hear the appeal. The motion passed 6-0. The estimated cost is $273 per hour, with an expected total of about 20 hours, to be covered by the legal department's budget.
• Item J: Discussion on Lincoln Street closures for the remainder of the visitor season. Planning Director Amy Ainslie presented observational data from the trial period of keeping the street open in May. Assembly consensus was to keep the street open through June, place temporary restrooms on Maksoutoff Street, and receive a recommendation from the Tourism Commission. The assembly also agreed to explore traffic calming measures and pedestrian safety improvements.
• Item K: Discussion on terms for a new Visit Sitka contract. The only response to the RFP was from Orca Killer Creative, a firm based in Spokane. Assembly members expressed concerns about the firm's local presence, housing plans, and the cost increase from $575,000 to $653,750 annually. A motion to refer the matter back to the Tourism Commission for their recommendation passed 5-0 (Assembly Member Mosher was recused).

Key Outcomes

• Approved RES 25-08 (supporting federal workers) on first and final reading, 6-0.
• Approved RES 25-07 (millage rates) and liquor license renewal on consent, 6-0.
• Reappointed Wendy Alderson to Planning Commission, 6-0.
• Approved ORD 25-10, ORD 25-11, and ORD 25-12 (with one no vote on ORD 25-12).
• Authorized sale of two pieces of equipment, 6-0.
• Directed the Municipal Administrator to contract with the State Office of Administrative Hearings for the cell tower appeal, 6-0.
• Decided to keep Lincoln Street open through June, place restrooms on Maksoutoff Street, and seek Tourism Commission input.
• Referred the Visit Sitka contract to the Tourism Commission for recommendation, 5-0.

Public Comments & Testimony

• Multiple residents spoke on the cell tower issue, urging the Assembly to develop comprehensive ordinances for wireless communication facilities and expressing health and safety concerns.
• Several speakers commented on Lincoln Street, with mixed opinions. Some supported keeping the street open for a more authentic experience, while others noted safety concerns from crowding and traffic.
• Rachel Roy from the Chamber of Commerce urged earlier decision-making on street closures and recommended increasing the salary for the tourism manager position to attract qualified candidates.
• Austin Cranford supported the Lincoln Street remodel and noted the need for police presence downtown on busy days.
• Carol Voisin and Mary Todd Anderson advocated for stronger cell tower regulations and highlighted potential health effects of radiofrequency radiation.
• Hal Spackman, Paul Clements, and Jay Stelzenmuller also spoke on the cell tower appeal, praising the Planning Commission's work and requesting public participation in the process.

Reports

• Mayor Eisenbeisz reported that special election results would be certified on June 10 and reiterated his commitment to addressing tourism issues.
• Administrator Leach thanked the Clerk's Office and election volunteers for their work on the special election.
• Attorney Jones commended the Clerk's Office for handling the citizen initiative and election.
• Municipal Clerk Peterson thanked her team and election workers, noting the special election was the first in 21 years and the first to test the Home Rule Charter signature requirements.