Sitka City & Borough Assembly Meeting Summary December 16, 2025

The regularly scheduled meeting of the Sitka City and Borough Assembly was called to order on December 16, 2025, with a full quorum present. The assembly began with departmental quarterly reports from Human Resources, IT, and the Clerk's Office, followed by public comment periods addressing tax payment issues and the role of the creator economy. The majority of the meeting focused on the approval of consent items, board appointments, tax exemptions, and supplemental appropriations for the airport terminal project and the Visit Sitka tourism contract.

Consent Calendar

• Motion to approve the minutes of the November 25, 2025, meeting passed 7-0.
• Motion to approve the acting administrator list for 2026 passed 7-0.
• Motion to authorize a grant application to the Alaska Department of Environmental Conservation for lead service line inventory passed 7-0.
• Motion to reappoint Lisa Moore (Tree and Landscape Committee), Robin Sherman (Planning Commission), and Rob Scott Wagner (Local Emergency Planning Committee) passed 7-0.

Public Comments & Testimony

• Peter John Karish Jr. expressed concern regarding a $40 late fee on his sales tax payment, stating he has a good payment record and sought a waiver; he requested further contact with the sales office.
• Kyle Larson, a content creator, expressed support for the city collaborating with content creators, arguing that the city should actively engage with the digital space and the "creator economy" to promote local businesses and lifestyle as a marketing necessity.

Discussion Items

• **Ordinance 2025-26 (Property Tax Exemption): The motion to approve the exemption for the Center for Community at 700 Catlion Avenue sparked debate. Assembly Member Pike expressed strong opposition to property tax exemptions, arguing that with the millage rate being the lowest in the state, the city cannot afford to reduce the tax base except in extreme circumstances. Conversely, Assembly Members JJ, Tor, and others expressed full support for the exemption, highlighting the organization's self-sustaining nature, their history of not requesting exemptions until absolutely necessary, and the significant unintended expenses the city would face without them. The motion passed 6-1.
• Ordinance 2025-29 (Airport Terminal Project): Public Works Director Mark Seavir introduced the request for supplemental appropriations to address ineligible FAA costs and construction changes. Assembly Member Katie raised concerns that the project adds significant square footage and maintenance costs that are not grant-eligible, questioning if the airport was built for expected usage levels. Assembly Member Tim expressed skepticism regarding the process, citing the lack of a full contract review, but retracted his initial no vote after Staff clarified that the scope of services was already negotiated and only boilerplate language required finalization. Assembly Member Kevin expressed support, framing the grant as a "once in a lifetime" opportunity to fund aging infrastructure. The motion passed 7-0.
• Ordinance 2025-30 (Visit Sitka Contract): Assembly Member Steven proposed dividing the question to vote on the supplemental appropriation separately from authorizing the Administrator to execute the contract, citing a lack of faith in approving an unseen contract. The division motion passed 6-1. Assembly Members Tor and Katie raised concerns regarding the use of Bed Tax funds, arguing that a disproportionate amount of the work appears aimed at cruise passengers rather than independent travelers. However, Staff clarified that data is currently insufficient to allocate more funds from the Cruise Passenger Visitation (CPV) fund, creating a risk management issue if allocated more aggressively without data. Assembly Member Tor originally moved to postpone the execution of the contract until the first meeting in January to review the final draft. After a brief recess and further discussion, the motion to postpone passed 7-0, with Assembly Members clarifying that the scope of services remains approved but the final contract language requires review.

Key Outcomes

• Ordinance 2025-26 (Center for Community Property Tax Exemption) approved on second and final reading (6-1).
• Ordinance 2025-27 (Harbor Outboards) approved on second and final reading (7-0).
• Ordinance 2025-28 (E911 Phone Consoles) approved on second and final reading (7-0).
• Ordinance 2025-29 (Airport Terminal Project) approved on first reading (7-0) for a supplemental appropriation of $650,000 and a grant ceiling increase of $800,000.
• Ordinance 2025-30 (Visit Sitka) approved on first reading for the supplemental appropriation of $303,000 (7-0). The authorization to execute the contract was postponed to the January 13, 2026, meeting (7-0) to review the full draft contract.
• Resolution 2025-15 (Sitka Strategic Plan 2025-2027 Third Annual Update) approved on first and final reading (7-0). An amendment proposed by Kevin to add a specific goal for seeking external funding for athletic and recreational infrastructure was defeated (2-5).