Sitka Assembly Meeting Summary - June 24, 2025

The Sitka City and Borough Assembly met on Tuesday, June 24, 2025, at 6:00 PM in the Assembly Chambers. The meeting lasted until 9:15 PM and covered a wide range of topics, including a quarterly financial report, the sale of a city right-of-way, supplemental funding for the marine vessel haul-out, a charter amendment for athletic facilities, and the allocation of Fisheries Enhancement funds.

Consent Calendar

• Ordinance 25-17 (1st Reading): Authorizing the Administrator to contract with the State of Alaska Office of Administrative Hearings for an appeal of the Planning and Zoning Commission’s decision on a cell tower variance (P&Z No. Var 25-01). Approved 7-0.

Special Reports

• Sitka Tribe of Alaska Tribal Council: Yeidikook’áa Dionne Brady-Howard was scheduled but did not appear.
• Finance Quarterly Report: Finance Director Brooke Volschenk reported that the city remains financially stable at the midpoint of FY25, with nearly all funds performing better than expected. However, significant challenges remain, including rising infrastructure costs, uncertain federal and state funding, and the impact of proposed changes to school funding. The Finance Department has 17 full-time positions, three of which are currently vacant. The department has used about 82% of its FY25 budget and is expected to be on budget by year-end.

Discussion Items

• Ordinance 25-16 (2nd/Final Reading) – Neva Street Right-of-Way Vacation and Sale: Authorizes the sale of a 14,847 square foot portion of the Neva Street right-of-way. Assembly member Eisenbeisz raised concerns about the sale price, citing city-assessed values of nearby lots ranging from $6.51 to $11.69 per square foot, while the proposed price was $1.92 per square foot. Planning Director Amy Ainslie explained the price was based on the incremental value added to adjacent lots and the burden of a utility easement. Deputy Mayor Pike argued the land had zero commercial value as a street and supported the assessed price. Approved 6-1, with Mayor Eisenbeisz voting no.

• Ordinance 25-15 (2nd/Final Reading) – Marine Vessel Haul-Out and Shipyard Supplemental Appropriations: Provides $715,000 for the Gary Paxton Industrial Park haul-out facility, including three power pedestals ($50,000), a heated washdown pad, and other equipment. Assembly members expressed support for completing the project, noting it would provide local boat-hauling capability, lower costs, and keep economic activity in Sitka. Concerns were raised about the GPIP board not formally reviewing the request, but Administrator Leach noted that the funds were general fund money and that the negotiations with the contractor were intended to lower haul-out rates. The operator is expected to require about 30 days for legal review of the operating agreement, with operations potentially beginning in late August or early September. Approved 6-1, with Assembly member Saline voting no.

• Ordinance 25-13 (2nd/Final Reading) – Personnel Policies Handbook Update: Approves amendments to the City and Borough of Sitka Personnel Policies Handbook. Approved 7-0.

• Ordinance 25-14 (2nd/Final Reading) – Administration Department Supplemental Appropriations: Provides funding for a reorganization that includes the creation of a new Assistant Municipal Administrator position. The job description was discussed; the role is to assist with administrative functions and serve as a policy liaison, not as a department head. Approved 7-0.

• Ordinance 25-18 (1st Reading) – Charter Amendment for Sitka Community Hospital Dedicated Fund: Proposes amending the Home Rule Charter to allow the use of the Sitka Community Hospital Dedicated Fund (supported by tobacco tax revenues) for bond debt associated with athletic facilities. The fund currently can only be used for hospital-related expenses. The fund currently generates about $800,000 annually, but the obligation to retirees must be paid first, meaning no surplus is expected for several years. Assembly members discussed concerns that the charter language was too broad, that the community had not been fully consulted, and that there were no plans for maintenance or operations of future facilities. An amendment to change the word "athletic" to "recreational" was defeated 3-4 (Saline, Carlson, Mosher in favor; Eisenbeisz, Christianson, Pike, Ystad opposed). The main motion to approve on first reading passed 7-0. A second reading is scheduled for July 8, 2025.

• Resolution 25-10 (1st/Final Reading) – Opposing Expansion of “Local Contributions” Definition: Opposes the State of Alaska’s proposed expansion of the definition of “local contributions,” which could restrict local supplemental support for schools. The resolution mirrors one passed by the Sitka School Board. Assembly members expressed strong opposition to the state’s proposal, noting it would undermine local control and hurt school funding. Approved 7-0.

Key Outcomes

• Neva Street Right-of-Way Sale: Ordinance 25-16 approved 6-1.
• Marine Vessel Haul-Out Funding: Ordinance 25-15 approved 6-1.
• Personnel Policies Handbook: Ordinance 25-13 approved 7-0.
• Administration Reorganization: Ordinance 25-14 approved 7-0.
• Fisheries Enhancement Fund Allocation: The $47,883 in available funds was split equally among three applicants: $15,961 to the Alaska Longline Fishermen’s Association, $15,961 to the Sitka Sound Science Center, and $15,961 to the Sitka Tribe of Alaska. Motion passed 7-0.
• Charter Amendment for Athletic Facilities: Ordinance 25-18 approved on first reading 7-0. Second reading set for July 8, 2025.
• School Funding Resolution: Resolution 25-10 approved 7-0.
• Other Reports: Administrator Leach announced that Senator Murkowski’s office had included $10 million for the secondary wastewater treatment plant design and construction in an appropriation bill. The police chief hiring panel will meet June 25 to select a candidate; Chad Goeden will serve as interim police chief beginning July 1 to assist with the transition. Clerk Peterson noted upcoming vacancies for the October 7 regular election, with candidate filing opening July 21 and closing August 8.