Well, welcome everybody.

Thank you for joining us on a sunny Tuesday.

We really should pass an ordinance that uh shifts meetings due to sun.

If any yeah, if anybody wants to uh co-sponsor one of those.

Uh, but thank you.

I'll call to order the regularly scheduled meeting of Tuesday, May 12th, 2026.

Please join me for a flag.

Salute.

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

One nation under God, indivisible with liberty and justice for all.

The Assembly of the City and Borough of Sitka would like to respectfully acknowledge the traditional first people of Sheetka.

With gratitude, we proceed on Clinkitani.

Sarah O'Call, please.

Mayor Eisenbais.

Present.

Mr.

Pike?

Here.

Ms.

Carlson.

Here.

Ms.

Riley.

Here.

Mr.

Christensen.

Here.

Mr.

Mosher.

Here.

And Mr.

Selene.

Here.

Thank you.

Any uh correspondence or agenda changes this evening.

Seeing none, that'll bring us to special reports.

We do have a couple scheduled special reports this evening.

We will start with our Sitka Childcare Needs Analysis Report.

Blue, I understand you're on Zoom here.

Hey, there we go.

We gotcha.

The floor is yours.

Thank you.

Okay.

Let me um share my screen so that my face isn't on your giant screen.

Second.

Well, I'm not seeing that screen.

Hmm.

I am not seeing an option to share.

It's not pulling up my screen.

I wish I could help you, but I am not of the IT type.

It was working fine a minute ago.

One moment, please.

Can you um maybe log out and then go back in?

Yeah.

Oh, there it is.

Can you see that?

Uh, we do, yeah.

We see um blanks.

Yeah, there we go.

Okay.

I'm not sure if you're seeing it's in presentation mode, so we can see your ad nodes next slide.

Yeah, I don't okay.

Well, I'm gonna leave it at that because I don't want to mess it up.

Um so my name is Blue Scheibler.

I'm the executive director of the Southeast Childhood Collective.

We didn't used to be known as AEYC.

Um, we're a 40-year-old nonprofit serving families and children with a variety of supports, um, including a large focus on child care as a system throughout the region.

Um, and I I come to this work with uh 20 years of child care experience.

I owned child care programs for many years before I came to the nonprofit world.

And so when I do this work, it's my passion and it's largely a passion because of that lived experience.

Um, just for a quick overview, earlier this year, the City Ambro of Sitka contracted with our agency to conduct a child care system analysis and develop practical strategies to address the emergent needs of um families in who need child care.

The goal was to report the findings and provide the city with some programming options to strengthen Sitka's child care system and support the long-term um sustainability of the sector.

Um, for this project, we examine child care supply in Sitka workforce conditions, family affordability of child care, and barriers to the current child care programs possibly expanding.

Um, for this work, I included um a lot of data review.

Um I regularly engaged with child care providers in Sitka um through all the time, but we did a little more um in-depth engagement for this report, and then I came to town and held three stakeholder listening sessions and then had an additional one via Zoom that was hosted by the chamber.

Some key findings from the data review, and this is using data from the Department of Labor.

They they use the data from I believe PFD applications, so it's believed to be probably the most accurate population data that we could find.

And so it shows a need of approximately 485 children needing child care with a supply of about 204 that are currently being served.

And you know, we use we use rough estimates based on sort of national recommendations that outline that of the approximate 777 kids in Sitka, we can just estimate that between 60 and 65% of those kids have all available parents in the workforce, and then therefore they need some type of child care.

So that's presents a gap of around 281 child care spaces.

And again, like that number seems really high.

It is an estimate.

We do know that what is not often captured in data reports and numbers is how many families are able to come up with creative ways to take care of their kids, including flying in grandparents and having sort of offsetting schedules so that there's always a parent at home and other family members.

There's also a lot of in every community, there's a lot of what we call family friend and neighbor care, which are like more of those informal child care settings that people have been using happily for decades.

They're just not easy to measure because when we look at supply and demand, we're really looking at publicly available data, which comes from like the State Department of Childcare Licensing and the Sitka tribes and Head Start and public school data.

Another key finding is when I talk to child care providers who are currently operating, and Sitka has some really amazing child care programs that have hung on throughout the pandemic and really difficult economic times.

They're very, very dedicated people in your community.

Many of them have technical spaces still that could be filled with children in need, but they can't fill those because they just can't hire enough staff to take care of them.

And in the supply and demand world, the greatest shortages exist for infant toddler and school age/slash summer care.

And the reason that childcare has become an issue for many city governments is because it's in child care is considered to be in market failure, and it's having a huge economic impact on communities because it affects all other workforce sectors.

We hear it from chambers across the state and across the country that the number one reason they have a hard time attracting employees and keeping employees because they can't find child care.

Housing is right up there too, but child care is a big one.

And just to go really quick into the market failure of child care, um, the the cost of providing that care, especially right now in a really competitive labor market, um cannot the cost of that cannot be passed on to families because they can't afford it.

The cost of everything else is up, the cost of living, everything's up.

So child care providers can't really increase their costs too much more, and they can't recoup their own expenses, especially if you are trying to pay a competitive wage, much less a living wage.

And that's not unique to Sitka, of course.

These same shortages are seen definitely all across the state and across the nation too.

Um the private market just cannot help increase the supply on its own.

And it's important to note that the impacts of that of supply shortages extend across the community in terms of reduced workforce participation, employer recruitment challenges, and ultimately population decline.

That has been talked about throughout the Southeast region quite a bit that we're losing families and the workforce age demographic in general because they can't find childcare.

And so what I was asked to do is come up with some possible solutions that could help bring about a better supply situation in Sitka and better working conditions for the sector.

And this work that I propose in here is largely based on what has been successful in Juneau.

If you've read the report, the Juno Childcare Grant Program looks a lot like option number two with a with a little bit of one mixed in.

And so not sure what in level of investment the city is considering.

I wanted to kind of give a broad range of basically a price tag to solutions.

And so the first one looks at workforce incentives, and it does have some language in there about operational cost relief in terms of giving some sort of waiver waiver to child care businesses to not have to pay city utilities.

And I know that might not even be possible.

I just had to throw it in there because when I was when I had my listening sessions and I was talking to child care providers, it was brought up quite a bit that utility costs are really high.

And anytime you can help eliminate any portion of an operating cost for a child care provider, those savings can then be directed to paying staff a better wage, which if we go back to earlier slides, we we definitely heard that that was the number one reason that current providers cannot expand or even operate at full capacity.

In a normal business market, um when supply is low and demand is high, you would see new entrants coming in to meet that need and create the supply.

That just can't happen in the child care business because they can't charge what they need to charge to recoup their costs.

So I can go into a little bit of detail about these different program options if you all want.

Okay.

So option one, you know, is primarily focused on workforce incentives.

This directly addresses the low wages that we heard about from all providers.

They have a hard time attracting employees because they can't compete with other wages.

The second option provides a per child operating grant.

And so providers would report how many kids they have, and they would get a certain subsidy.

There's two levels of subsidies that you could look at giving, and then they would get that in a direct grant.

In Juneau, we saw that do what option one did, which was increase wages.

Um, we didn't have to really spell it out for providers.

We we offered this grant, it was based on a per-child amount every month, and hands down every single child care business when they started receiving this grant, they raised wages.

And you know, once one center raises wages, the others kind of have to because you don't want to get into a situation where you're competing for other centers staff.

And so it had this ripple effect in Juneau when we first implemented the per child operating grants.

Um, starting wages were around $13 an hour, and they went up, they've gone up to 20 since then.

And then having option three blends all of that plus a little bit for affordability.

Um, we heard that in our listening sessions, and it's certainly known, you know, on a what in a broader context that child care is unaffordable for for many families.

And there are some statewide um tools that can help address that.

There's a statewide child care assistance subsidy program that is notoriously hard to access.

And I also heard from a lot of sitcan families that it doesn't meet the needs of seasonal workers.

It fails the fishing community pretty seriously, because it will only pay for child care when they're actually on the water.

So little examples like that make it not ideal for a lot of families.

And so option three added in an amount that could go to those families that either child care assistance from the state isn't enough, or it doesn't work for their work situation.

And then there were some, in addition to these like more formal options, there were some additional things to talk about, including startup grants.

We know in Juneau, many people who do want to start a child care program.

And we have, we've had a couple of at least home providers and a couple of centers open since we started this.

So startup grants have been a really important tool in Juno.

And then there's so there's some mention of seasonal programming.

You know, South Sitka is definitely has a tourist economy in the summer.

And so the need for child care theoretically goes up and really cannot be met by the year-round programs who are struggling to meet the need of just the people who are in the community working year-round.

And then I did address a variety of state policy advocacy opportunities.

So it doesn't make a huge difference in in a budget.

But that amount has been increasing.

So just to wrap up, um, Sitka's child care supply challenges cannot be solved with private market alone.

Um a sustained public investment is needed, and that public funding really in turn supports local businesses, increased workforce participation and economic resilience.

Strengthening child care is a long-term investment in Sitka's economy, families, and community sustainability.

And I'd like to just pull up if my computer will let me.

So this again, it just summarizes the supply and demand and the um different options that can be looked at to try to fix it.

Well, great.

Thank you, Blue.

Um, I thank you for all your work on that.

And uh, you know, letting I think the community and the assembly know kind of well, we already knew, but we needed some hard uh hard data on uh some of the figures there.

So I appreciate that.

And I understand that you'll be staying on for our item uh later this evening.

Yep, I'll be available um on the phone.

I'm gonna go watch a baseball game.

Great.

We uh we thank you for double duty and uh allowing us uh some questions if we do have them later.

Appreciate it.

Thanks.

I look forward to it.

Uh moving on with our scheduled special reports this evening, uh Department Quarterly Reports Harbors.

I think Brandon Harbormaster is here.

Brandon Calhoun, harbor master for the city of Sitka.

Um the Crescent Harbor High Load Dock and the work float are both officially wrapped up and back in use.

We are working towards our Elias and Harbor Electrical and Float Ugrade Project.

We're setting the scope and the specific items we're gonna be doing there, and then we're gonna do a bunch of upland maintenance this year, parking lots and other working areas.

Um we've been looking at our service levels and kind of increasing that where there's needs, mitigating some of the traffic and crescent with all the tourism boats coming in and out of there all the time.

And then other than that, we're gonna have a little bit of a short staff summer.

Tom retires into June, and uh our other maintenance FTE is out on leave for most of the summer.

Hopefully, he'll be back in August, and we've been able to get four of our six summer temps, so we have port security pretty well covered, but operations is gonna be a bit busy this year since we haven't been able to find the temp for that.

Um that's it.

Please I recall in the resource proposals that we've seen with this budget budget process, um, the awnings for this section of DockRat out here is to be replaced shortly.

Uh what's the schedule on that?

Because you know, that's gonna be CPV money going towards, and I wanted to, you know, the community's always been interested in in what that CPV money gets used for.

So can you tell us a little bit about that project and the timeline there?

Yeah, so once that um, you know, once the budget's approved, we move in to FY27.

We'll be able to order materials.

It's all been spec'd out.

Um it'll be the same roof upgrade that we did at the bridge and Eliason Harbor where we change it over to uh metal roofing rather than this canvas.

Obviously, we get a lot more life out of that, and then that's all covered by CPB funds.

Yeah, so will that be completed by you know June of next year?

Is that a winter project?

Is that a summer project?

Is that next summer?

Yeah, that'll be a fall winter project once the ports are closed.

Great, thank you.

So CPV money in action.

Anything else for our harbor master, Katie?

Yeah, thanks.

Can you um tell us a little bit more about the changes to Crescent Harbor, the mitigation strategies for tourism, uh, the new painting at the bottom of the blue ramp, I believe.

Um no parking or something.

Let the community know what's going on down there.

Yes, we painted where the pump out is down at the bottom of the main gangway in Crescent Harbor.

Uh we painted that yellow as a loading zone only because we were it was being used as an extension of the two-hour zone.

Um so you'd get boats in there blocking the pump out for a couple hours, and then we have boats jogging around waiting to get their turn in.

So we painted that to be a loading zone.

The lightering facilities are being used as reservation facilities this year and moving forward.

Um so our larger inspected cruise vessels are using this crescent harbor lighting facility on a reservation basis.

And that's it for our traffic modifications for now.

And with the um reservation system, uh, those being charged, is that available after hours?

Um I know that uh the science center is an entity that previously used those spots to offload marine debris and kind of just wondering how do we or if there's a way to balance um the community use of those facilities with uh reservations?

Can we keep them open when they're not reserved, or if you have any thoughts there?

Um yeah, so it's just gonna be during the summer season that we operate them as a reservation facility.

Um that has to do with our the way our port security plan set up, it benefits us there as well.

There's still obviously the two-hour load zone that everybody gets to use, and then as far as other loading zones, we have loading zones in Elias and Harbor with drive-down access and stuff like that as well.

Um so you know, come the end of the summer, it'll open back up to free public use.

And is the reservation um is that charged?

How much revenue is that generating?

Yeah, so we've added five operators that are paying to use that facility where previously it was mainly just one.

And we're also, you know, before it was a basically first come, first serve with some prior priority, but it was a little bit of a gray area.

It was when we could help mitigate traffic by actually being down there and keeping it available.

Um where the way we're doing it now, you have a reservation, and that is your dock when you have that reservation.

And is it reserved um well in advance?

Is there uh like days that it's open to the public or no?

It's gonna be reservation doc all summer.

Um the operators are providing me a schedule for the summer, and then everybody has to modify to make sure that they fit.

Okay, thank you.

Thank you, Brandon.

Appreciate your time.

I'm moving on in uh department department quarterly reports, uh, public and government relations.

Welcome, thank you.

Thanks.

Um Melissa Lunis, public and government relations director, here to give you the quarterly report, which covers for me February through April.

So the citywide communications plan.

Um the purpose of that is to help communicate clearly consistently and proactively with residents, businesses, and community partners.

The first draft's content of the plan includes the purpose, how the plan uh how to use the plan, what we've heard from the community, goals and actions, core communication channels, standards and guidelines, and a playbook.

And the playbook will include an implementation guide, tone roles and responsibilities, best practices, and templates.

So this quarter we received feedback from about a dozen staff across the organization in the initial draft that was developed through the public outreach um targeted engagement in the internal staff report or input.

So there's a meeting next week with the consultants and John and Josh and myself for um hopefully like a second round of a of a draft, and then we'll see where it goes from there.

Eventually, it'll be coming to y'all.

Um the ADA Title II administrative policy has been completed, so um I'll be working with staff awareness on that over the next few weeks, and then trying to come up with like a continual basis in order to do that.

And then we launched the new website on March 19th without too many hiccups.

Um while some pages still need some reofinement feedback feedback has generally been positive, and staff continue to work on content updates and accessibility improvements and overall site improvements, and in the communications plan, there is uh you know, room for that to grow as well.

Like we'll probably be doing a um audit of some sort, so that will improve that as well.

The um FY27 uh CPF and CDS requests, Congressman Begage recently posted the CPF requests and that he submitted to their appropriations committee, and unfortunately, our our haul out was not included in the requests.

He only gets 15 to input.

Um, but it was just announced yesterday that we have five million in for the Marine Service Central Center Seawall, and it's been included in um Senator Murkowski's request.

So uh it's going to be in the appropriations bill, and then the next step is for to see if the Senate appropriations committee um funds the project.

So we had originally a crest requested over 14 million, however, um their office came back to us and asked if we could scale it back.

So we presented five million to be used to stabilize existing infrastructure and advanced design on the project, and that's what I have.

Questions for Melissa?

Katie.

I'm wondering if you can coordinate with Harbors to distribute some communications about the new modifications to Crescent Harbor.

I would love to, thank you.

When does that seawall money become available potentially?

Oh gosh, I mean, it takes another year.

You know, we we received that 10 million for the wastewater effluent system and still haven't quite heard back.

Um, so we're still waiting on that.

So again, it takes takes a little bit of time.

But it's here in the budget for what we're passing here.

So I don't that's a million.

Okay.

So fiscal year 28, most likely.

Likely if it goes through all the channels.

Okay.

Thank you, Melissa.

I don't really have a question per se.

I did notice that the website is definitely easier on the eyes when you're using your phone, which I really appreciate.

I think a lot of people really appreciate that.

Um, that was good news about the five million dollars.

That's really exciting.

Hopefully, it'll go through.

And I just wanted to say thank you for your work on the communications plan.

I think that's really, really crucial to improve the synergies within the uh organization of the city of Sitka and as well within the community.

I think that's something that we really have needed improvement on in a long time, and I'm really excited about it.

And thank you for your work.

Me too.

Thanks.

Katie.

And just one more thing.

I do appreciate the new website.

Um, very exciting.

I have tried to look up a couple things, and I'm getting like a 404 uh, you know, page not found notice.

Um, LegisTar is not uh accessible on here.

It's it's not 404, it just says leads to a page that says Let's star, but not the actual um data for how to access the meetings, the minutes agenda and stuff.

So is there a transfer plan?

We actually had um a little crash today and yesterday, so they're working on it.

Okay.

And the other pages are they gonna be migrated over at some point, or is there an effort to go through and find out which pages are leading to links that don't work?

I think the ADU rules aren't available on the planning website anymore.

Oh, I didn't know that there's like a page on like a easily like how do you build an ADU that's a good thing.

Oh, right, that's under the building department now, I think.

Um yeah, that's more on the technical side of things, so I can relay to grant and we can try to work through that.

Um, but I know that there was something to do with Google where not everything had migrated over on their end as well, and so I think that that takes several weeks to do, they were saying so.

But that's more of a like technical side of things.

Okay.

Well, maybe you can communicate that to the technical team for sure.

Thank you.

We'll look at things.

Thanks, Melissa, appreciate it.

Uh moving on in special reports this evening.

Is there anyone here for government to government, municipal boards, commissions, committees, municipal departments, school district.

Uh great.

That'll bring us two persons to be heard.

This is public participation for any item off of tonight's agenda, not to exceed three minutes for any individual.

Hello, my name's Carrie Sagel.

I'm here on behalf of Rachel Roy, who, as a chamber director had intended to be here but has a family emergency, and knowing that I would be here, she asked me to extend this invitation and make this announcement.

Um, good evening, assembly members.

We wanted to provide a brief overview of the Rasmussen Foundation tending the future fund grant that has been awarded to fund the Sitka Child Care Funding Summit.

The grant was awarded to the Center for Community Early Learning Program as fiscal sponsors in partnership with the Sitka Chamber of Commerce as co-chairs.

The Early Childhood Coalition is meeting Mondays at 1 p.m.

to participate in the planning for the summit.

We invite you and the city staff to participate in both the development of the summit and by attending.

The $15,000 grant supports a community convening focused on identifying sustainable funding strategies for child care in Sitka.

The summit would bring together business leaders, tribal partners, educators, child care providers, parents, local government, and community organizations to discuss practical solutions and next steps.

We also have guests who work on child care on a national scale attending.

We're very encouraged that the assembly is continuing to prioritize this issue and explore sustainable funding option.

The chamber consistently hears from employers that housing and child care are the top barriers to workforce recruitment and retention.

We believe child care is essential infrastructure for families, businesses, and the long-term health of our community.

One of the goals of the SICA Child Care Funding Summit is to support a strong public process around these discussions.

We see the summit as an opportunity for the assembly and community partners to engage directly with residents, employers, and stakeholders to better understand priorities, evaluate funding options, and access the assess the best steps moving forward.

The summit would not be intended to predetermine a specific funding outcome.

Instead, it would create a structured community conversation focused on identifying practical locally supported solutions that can improve access to child care and sick.

We appreciate the assembly's leadership on this issue and look forward to continuing to work collaboratively collaboratively with community partners as these conversations move forward.

So their next the first meeting is on Monday at 1 o'clock, and we extend this invitation.

Thank you.

Anyone else under persons to be heard this evening?

Any item off of tonight's agenda.

Uh seeing none further, we'll move on to consent agenda, please.

I move to approve the consent agenda consisting of item A, approve the minutes of the April 12th, 22nd, 23rd, 24th, and 28th meetings.

Second.

It's been moved and seconded to approve the consent agenda.

Is there any public comment?

Sarah all right on the motion to approve the consent agenda.

Mayor Eisenbais.

Yes.

Mr.

Christensen?

Yes.

Ms.

Riley?

Yes.

Mr.

Mosier.

Yes.

Mr.

Celine?

Yes.

Ms.

Carlson?

Yes.

And Mr.

Pike.

Yes.

The motion passes seven zero.

Uh, thank you.

Item B, please.

I move to appoint Michael Hall and Brian McLaughlin to permanent terms on the local emergency planning committee under category two, law enforcement, civil defense, firefighting, first aid, local environment slash hospital, and transportation personnel.

Second.

It's been moved and seconded to appoint those two individuals to the LEPC.

Is there any public comment?

Assembly deliberation.

Thank you very much for serving.

Appreciate it very much.

I don't know that they have a choice.

Yeah, I'm just saying they neither one of them has a choice.

I was about to say the same thing.

Katie?

Oh, I thought sorry, I thought I saw your mic.

Sarah.

All right.

Um, on the motion to appoint Michael Hall and Brian McLaughlin to permanent terms on the local emergency planning committee.

Ms.

Riley.

Yes.

Mayor Eisenbaiss?

Yes.

Ms.

Carlson.

Yes.

Mr.

Mosier?

Yes.

Mr.

Pike?

Yes.

Mr.

Christensen?

Yes.

And Mr.

Celine.

Yes.

The motion passes.

70 on item B.

Uh, thank you.

Item C, please.

I move to approve ordinance 202609 on second and final reading.

And then you title one, general provisions of the SICCA General Code by adding chapter 1.36, acceptance of donations to the city.

Second.

That's been moved and seconded to approve ordinance 26-09.

Is there any public comment?

Assembly deliberation.

Sarah?

All right.

On the motion to approve ordinance 2026-09 on second and final reading.

Mr.

Christensen?

Yes.

Ms.

Carlson?

Yes.

Mr.

Selene?

Yes.

Mr.

Pike?

Yes.

Ms.

Riley?

Yes.

Mr.

Mosier?

Yes.

And Mayor Eisenbais.

Yes.

The motion passes 70 on item C.

Item D, please.

I move to approve ordinance 2026-10 on second and final reading, amending Title 14, Streets, Sidewalks, and Public Places of the SICA General Code by adding chapter 14.35 naming of public places.

Second.

That's been moved and seconded to approve ordinance 26-10.

Is there any public comment?

Assembly deliberation.

John.

Thanks, Mayor.

I just want to point out on line 142 of this.

The changes were the administrative changes were made as we discussed at the last meeting, so it now says for public places administered by the parks and rec division instead of department.

Thank you.

Anything further?

All right.

On the motion to approve ordinance 2026-10 on second and final reading.

Ms.

Carlson?

Yes.

Ms.

Riley?

Yes.

Mr.

were made as we discussed at the last meeting so it now says for public places administered by the parks and rec division instead of department uh those those minor changes were made just for your notification thank you anything further all right on the motion to approve ordinance 2026 10 on second and final reading miss carlson yes riley yes mr saline yes mr mojer yes mayor eisenbys yes mr pike yes and mr christenson yes the motion passes 7 zero on item d bring us to new business this evening item e I move to approve ordinance 2026 11 on first reading adopting budgets and capital improvement plan for the general fundernal services fund and special revenue funds for the fiscal year July 1 2026 through June 30th 2027 second it's been moved and segmented to approve ordinance 26 1 would you please introduce this thank you mayor um I was just gonna read the entire budget letter but it's about six pages long so I'll save you all from that but thank you mayor and assembly um before we dive into the budget I just want to take a moment to recognize some folks um first the assembly thank you um you put in a lot of time and effort this year I think the deliberations were very thorough throughout this uh what four or five month long process questions were good the decisions weren't easy in some cases uh and I genuinely appreciate the uh care and thought you brought into this process I especially want to thank our finance director Brooke she was exceptional um she was sharp always prepared kept us all honest on the numbers from the earliest planning sessions right up through adoption hopefully um quality of this budget document is a as a direct reflection of her work and I'm very uh I'm very grateful for that um on the budget itself the uh FY27 consolidated operating budget is fully balanced and that took some work from all of us um we got there through some targeted adjustments uh just to summarize some of them there was a revised health insurance assumption that was better than the information or the information came in and better than we expected um a police sergeant position uh will be held vacant uh for this next year and we kind of recalibrated the public infrastructure sinking fund and how some of those funds were being used um our expenditure growth in this year's budget is driven almost entirely by the cost of just maintaining our existing services and that's isn't that's in wages and in benefits and in infrastructure so we are not adding new services this year.

Sales tax remains our foundation uh but we're watching the tourism season closely and federal funding uncertainty continues to create planning challenges for all of us um fuel costs for me are a particular concern this year and those hit us on both sides of the ledger so it it raises our own operating costs while it also potentially uh dampens visitor activity and sales tax revenue that comes with it our enterprise funds are managing significant capital needs across water wastewater electric harbor and airport operations so this budget doesn't resolve every long-term pressure that we're facing but it's responsible it's clear eyed response to where we are right now and tonight we're taking action to hopefully approve both the operating budget and the capital improvement plan uh and again I'm just really proud of what this team has put together thank you john uh is there any public comment on ordinance 26-1 assembly deliberation Tor yeah before we I don't know if anybody wants to really get into it but I just wanted to amplify what John said about the staff and especially Bree this was her first time on her own going through this um and it was it was very well done and and flowed well and and I really can't say enough nice things about how the staff was responsive as usual you know the finance department is provides is pessimistic on how much they think things they're gonna spend and or and or pessimistic on both ends actually um which is appropriate and so I'm very confident in that at the this time next year or you know when when the final numbers come out we'll probably have a bit of a surplus because that's the way it's as it should be um so uh I just wanted to say nice things uh about the process and the staff and that uh it makes our job a lot easier uh and we were given plenty of information to be able to make the uh and uh the our decisions and I can't express how much easier this is has been the last few years than the way it used to be so again thank you guys and thank and hopefully you'll get a little bit less uh less late nights now so Katie yeah big thanks to Brooke and the staff for putting this together um a lot of hard work went into it and uh really appreciate the uh presentations as well that you put together um those made it very accessible not only for us but the rest of the community to understand what was going on and um you know the the things that we were having to balance and deliberate through so thank you for all that hard work my question is in regards to the unexpected um costs that we're facing due to mainly um you know the Iran war essentially um and and increasing fuel costs that was started like later in our budget process

Um those made it very accessible not only for us but the rest of the community to understand what was going on and um you know the the things that we were having to balance and deliberate through.

So thank you for all that hard work.

My question is in regards to the unexpected um costs that we're facing due to mainly um you know the Iran war essentially um and and increasing fuel costs that was started like later in our budget process, and so I am wondering if we are you know if if there's any kind of educated guess about whether or not we're going to be um facing increased requests for supplementals or we've got a great balanced budget now, but there were some things that were unanticipated at the time that we were making a lot of these um decisions and uh putting those figures together.

So any educated guesses about how that's gonna impact us.

I don't know if it's gonna be an equated guess, uh, but I would just reiterate that um that we budget extremely conservatively.

Um and I I hate to say that we always have the mid-year supplemental that we can uh depend upon.

Um we're gonna have a lot to learn, I think, in this in the first quarter.

Um we still have some um still want to see where we where we land at the end of the FI26 budget.

I think we're gonna have a bit of a surplus there, mainly due to some personnel vacancies, so we'll have a little more flexibility uh if we have to do a mid-year supplemental, but I think um over the next few months we'll learn more on how potentially increasing fuel costs are going to affect us and how they affect our capital projects.

Um, and then we'll have to uh to regroup and see if we need to bring a supplemental adjustment forward.

Great, thank you.

And then is it um common practice to report on sales tax income after Q2 and the end of Q3 and like whether or not that is as expected or lower than expected?

Uh yes, what it'll either be in the quarterly report, quarterly financial statements, or I'll I can bring that forward.

Okay, fantastic.

Thank you.

Yeah, I would just love to stay up to date to that so that we can be um the most judicious as possible going forward with those unexpected costs.

But thanks to the whole team uh for all the hard work that you put in.

Kevin Okay, uh yeah, same thing, just thanking everyone.

Uh thank you for your hard work.

I was just gonna encourage people in the public who uh are listening.

I really would encourage you to read those first couple pages, uh the John's um kind of summary.

I know he did that with the help of his team.

I could you know clearly see that.

Thank you so much.

I really appreciate that.

Uh it's very well written, and it kind of gives a uh whole picture kind of painting of where we are, and uh it's very educational and uh it's a good read.

So encourage people to do that, it's really helpful.

Uh thank you, and again, thank you for all your hard work.

JJ.

Yes, our budget here, just for us all for references 153 pages.

And that's effortful and takes a lot of appreciation.

Um from just the you know, me as a one of seven up here to see you know the six-month process that we're a part of, and then all that time in advance of that uh that staff goes through to get us to this point to have you know conversations about you know, last year it was a thermostat, this year it was sand, and there's something to get us there at the end.

Um just thank you for for helping us along and guiding us through this process.

Um the budget is a very important guiding document, but it's always alive, so we'll we'll see it change um throughout the year.

And the code says or charter says we do this in conjunction with that capital improvement program that that's that five-year look ahead, and it culminates into this one year budget.

Um so as we you know continue to balance how we document that five-year kind of look ahead.

Um, this is gonna get to be even a stronger and stronger process in in planning for our for our future here in Sitka in alignment with our strategic plan that really focuses on you know doing this in a sustainable way through interest infrastructure and service, and we can get a couple more check marks off of this one pager here through that dedicated work of our of our staff.

So thank you.

Thank you, Brooke.

Jim, thank you.

in in planning for our for our future here in Sitka in alignment with our strategic plan um that really focuses on you know doing this in a sustainable way um through inter infrastructure and service and we can get a couple more check marks off of of this this one pager here um through that dedicated work of our of our staff so thank you thank you broke thank you yeah I mean I think uh this is I mean you talk about the number of pages but uh entirely accessible information and very transparent and very clear and I mean I'll refresh uh I refresh my memory with we brooke finished up an audit right clean audit came through that and then we said okay let's do the budget so I mean there hasn't really been a break since since explaining what the last one was and then starting on the next one so fantastic um and I and I kind of gauge it by the conversations I have about the budget so people as this process went along you know were able to ask you know questions about different bits and pieces of what we were talking about um because they actually understood the budget and it was making sense it was it was it was penetrating out to people in the community in terms of what their community was doing and why they were doing it and so um I think that speaks very highly of Brooke and John's um process and making sure that we all have a very accessible and and transparent look at it because it's you know we're explaining to the people what we're doing and for them and how we're um spending their money so I think this has been fantastic and can't say enough good things about what I see this time a very professional budget.

Katie Yeah um I just wanted to note that uh we have 2600 budgeted for the utility subsidization fund.

This was something that came up during our government to government meeting with the tribe that I think we're expecting uh some pretty hard winters for folks um as we uh you know just have these cost adjustments with fuel and inflation and the rest of that so um if that program experiences a large growth in funding uh I would like to know about it early on and to figure out what we can do um to address that because I I think that's gonna be one of the things that certainly the rest of Alaska is facing and I don't expect us to be immune for as well so please please do keep us apprised of that tour yeah I I I just wanted to apologize brook at least they didn't call you what might like I could call my daughter the dog's name so uh and I've definitely been known to do that I run through all everybody in my family before I get it right so I apologize I got your name wrong I do it all the time so it's not you're not alone so sorry about that anything further from the assembly Sarah all right on the motion to approve ordinance 2026 dash eleven on first reading Mr.

Pike yes Mr.

Mosher yes Mayor Eisenby yes Mr Selene yes Ms Carlson yes Mr Christensen yes Ms Riley yes motion passes seven zero on first reading on item E.

Thank you item F I move to approve ordinance 2026 one twelve on first reading adopting budget and capital improvement plan for enterprise funds for the fiscal year July 1st 2026 through June 30th 2027 amending rates in title 15 public utilities of the SICA general code and adopting mortgage rates than other harbor fees.

Second it's been moved and segmented to approve ordinance 2612 on first reading is there any public or John I'm sorry you have an introduction for this as well it's same introduction as the last one okay next there any public comment on 26 one two back to the assembly for deliberation Katie I will just comment that I really appreciate the staff's uh willingness to well and acceptance of taking in the assembly's comments about the electrical rate increases and punting those I know that we are going to be um not not doing some projects that were desired uh as a result of that but um you know all the more important giving the pressures that we're facing um juno is just announced that a ELMP is facing a 20% rate increase so just want to reiterate and that's over two years um how lucky we are here to have a municipally owned utility where we can balance those considerations and look out for um you know current sitkins future sitkins uh but we do have to plan for those things as well so happy to see this this year and really grateful for the work went into it um and also just wanted to remind all of us how lucky we are to have the utility department under municipal control with the enterprise funds you know it's the the ratepayers that provide that base um for it and we as assembly just help find that that right number that keeps everything balanced um and that's through looking ahead at operations and those those cattle projects that are coming down the line so this you know ordinance tonight approves the budget and that capital improvement plan for that that next five years and you can you know look back in the past meetings um to see that that full five year outlay but it's it's really we're doing the work um to keep things in line for for

Um, and that's through looking ahead at operations and those those cattle projects that are coming down the line.

So this you know, ordinance tonight approves the budget and that capital improvement plan for that that next five years, and you can look back in the past meetings um to see that that full five-year outlay.

But it's it's really we're doing the work um to keep things in line for for what we see coming, and it's because we do that we're not seeing like 20% increases.

So thank you to the leadership uh here at the city that's really dedicated tirelessly to to the work of outlining what we have, what we need in the gaps that are that are in between.

So thank you.

Anything further on this item, Sarah.

All right, on the motion to approve ordinance 2026-12 on first reading, Mr.

Mosher.

Yes, Mr.

Pike?

Yes, Ms.

Riley, yes, Mr.

Christianson, yes, Mr.

Selene?

Yes, Mayor Eisenbeis, yes, and Ms.

Carlson.

Yes, motion passes 7-0 on first reading.

Great, thank you.

As we are at the top of the hour, we'll take a recess.

Assembly, please be seated when you're ready to continue.

Our agenda this evening.

Uh that'll bring us to item G tonight.

I move to uh um approve ordinance 2026-13 on first reading proposing to amend section 6.01 initiative and referendum of the home rule charter and submitting the question of such an amendment to the qualified voters at the regular election on October 6, 2026.

Sorry.

Sarah, I understand you have an introduction for this one for us.

I do.

Thank you, Mayor.

So I have brought this item forward this evening, um, kind of to close a loop on some questions that were raised by assembly members last year and then members of the public um with regards to the special election that we had last year and the um mandatory requirement in our charter for such, um, and then associated uh election costs.

So our charter currently states that when a citizen initiative or referendum petition is signed by at least one third of the total number of voters who voted in the last regular election, that a special election must be scheduled within 40 to 90 days after the filing of the petition.

So the ordinance before you this evening would um it proposes an amendment to remove that mandatory requirement and it replaces it with a discretionary provision that allows the assembly by ordinate ordinance to order a special election if it determines that it's in the best interest of the municipality, otherwise the certified petition, it would go to the fall election, or if there was another special election that was already scheduled, it would fall to that.

Um because this is an amendment to the charter, um, it does require it to go before a vote of the people.

Um I also wanted to note that under Alaska statute uh municipalities may decide whether to call a special election in uh similar situations, and in talking with clerks, um this is a very common practice um and met and one that many use.

They were actually surprised that we do have that provision in our charter for uh mandatory uh special election.

Um and then finally the cost of the special election um for the one last year was a little over um 18,200.

Uh great thank you for that introduction.

Is there any public comment on ordinance 26-13 back to the assembly for deliberation?

I mean, I I think this is makes common sense.

Um I just the the one thing I would like to add is the $18,000 plus not the only cost.

The our staff, especially the clerk's office has plenty to do, and adding this on top um made it harder.

And uh I it's amazing that more things didn't get dropped because when you get over tax like that, things get dropped.

And if we had a we were just lucky to have a staff, uh a clerk's office that could handle it, but I don't think we can count on that forever.

And to me, this just makes sense.

Go to the next election.

If it's something worth a special election, it can I don't see why it can't wait till the next regular election.

Katie Yeah, I don't um have particularly strong feelings about this.

Um, but I have heard some concerns that this gets rid of special elections, and I just wanted to reiterate that that is not true.

What it does is gives the assembly uh more ability to weigh in on whether or not a special election is warranted or whether it should go to uh the regular election.

So just wanted to say that you know, citizen input, citizen initiatives, it's very important.

Um I think we have great uh citizen access to the government process here.

I want to maintain that, but I do appreciate um the ability to give the assembly a little bit more uh discretion over when that is scheduled so that we can fit that in with everything else uh that you do and everything else that we uh need to accomplish as elected representatives.

So thank you for bringing this forward.

Kevin Thank you, Mr.

Mayor.

Um yeah, I uh ditto what what was said.

Um I believe this is uh probably uh probably a good thing, and thank you for bringing it forward.

I I do yeah, want to reiterate what Katie said.

It doesn't mean we can't have special elections, you someone can choose to have a special election uh and it retains that uh ability.

Um I see this uh and after discussing with you further too as well is that that 30 to or that 90 day the window to try to have a turnaround is very can be problematic on because not just the money, but because um like I think around the time that that special election was happening, there was a lot going on.

You were understaffed.

Uh there's a ton of public records requests these days.

There's a lot going on.

So logistically being able to do it uh was very very difficult.

And if we're ever in a situation where there's something you know dire or urgent that has to be done, trying to have that meet that time frame uh would be very difficult.

So that just offers some flexibility.

Tim?

Thank you.

Yeah, I think this is uh you know, I think this is something that we uh have kind of probably needed for a while.

It it maintains uh you know citizen access to the process.

I mean, it allows still allows for a special election as needed, and I think it meets the needs of that process without overburdening and kind of making it a you know, more and more special uh elections would be a challenge.

So I think I think the money is a little less important than the process, and I think the process in this case um in terms of an initiative.

I mean, any any assembly would see the importance of of getting the answer to a uh question that was super very important uh sooner rather than later.

So I think this is a good compromise on how to make this a better process.

Uh for me, I see nothing in this ordinance that is uh preventative of it going to the voters, and really that's what we're being asked to do tonight is submit it to the voters.

Um so I will be voting in favor of this all right.

On the motion to approve ordinance 2026-13 on first reading, Mr.

Selene.

Yes, Mayor Eisenbais, yes, Mr.

Christensen, yes, Ms.

Carlson, yes, Mr.

Pike, yes, Ms.

Riley, yes, and Mr.

Moser.

Yes.

The motion passes 70 first reading on item G.

Item H, please I move to accept the child sick of child care needs analysis report.

Second.

As we moved and seconded to accept the SICK child care needs analysis report.

Uh co-sponsors, do you have an introduction for us on this?

Yes, sir.

Um yeah, I we kind of went back and forth on whether to have a motion to accept it because we're just basically talking about it.

So uh but so I don't know that that's needed per se, but we can of course vote on it.

So this is uh for those who are listening, yeah, the discussion about the report that the assembly, the entire assembly agreed to pay for, uh, spend $20,000, $25,000 out of general fund to do this.

Um so tonight is to basically discuss the report, any thoughts on it and uh future action uh ahead.

Um my mind there's a couple things to address is exactly if we're interested in and moving forward is what um we want to do uh as far as some of the options in the report and then how to fund it.

Um I um I am very cognizant of the fact uh the things uh that Katie mentioned about the the fuel oyster uh fuel prices increasing and that uh the extra cost that that will have on community on the community so um I'll get more into the discussion as I as I share my thoughts on it but I want to be cognizant of that and make sure we involve the community and because this is going to be something that we would have to have community buy-in to do and I believe this community is desirous of it we just need to make sure we do it uh in an open and public way that the community is excited about thank you anything else from either the co-sponsors yeah I mean uh this uh this is has been an interesting process I mean we uh and Blue's report uh I think really uh kind of laid out the issues really clearly that we were kind of floundering we all knew it but it laid it out in a way that's concise and allows us to look at it uh with uh you know we can't really start to tackle the problem until we know what the problem is and I think we we have a better idea of it and what what's going on now and I know that others will want to talk about various aspects of it for for me personally you know we started talking about this well years ago when they early child care coalition came in and saying what they need and I wrote down dollar signs in my notepad saying this is this is gonna cost money there's just no way around that and I know other people have different aspects of it but I was like okay if if we're gonna do this how on earth would we come up with the money because we know that the budget doesn't begin to have any kind of movement for this.

And so and it was it it's in the letter talking about some of the ideas of raising the money that would need to come and of course anything would have to come before go before the voters I just wanted to say that we did talk about a lot of different possible funding sources not just sale the ta the ones that we put out um and for various reasons none of them worked um you know things like taking the cap off the sales tax well that pro we it's extremely we don't know how much that would produce and probably not enough um things about other more targeted taxes like Fed taxes and and head taxes on the cruiser passengers would probably be illegal um you know the there was a lot of blue skying going on and but either the everything we thought of either didn't produce enough money was way too hard to administer or um would I say be illegal um the I think you know I I I know Kevin was thinking I think uh we're probably heading towards the work session if we want to keep forward on this um and we'll be talking about a lot of different aspects of it but I'd say for me it was like all right how are we going to pay for this if we're gonna do it um and you know one of the sales tax way uh you know we that are in there either you know going six percent year round or seven percent in the summer probably are the ones that would would work with it may not be what eventually we do but they're the ones would be the most stable funding and the most you'd be able to have a pretty good idea what you got coming.

But regardless of what we do in order to raise the amount of money to move the needle we're gonna have to go to the voters.

So and I'll be very interested in hearing what everybody else has to say and like I said I don't think we're gonna solve it tonight and maybe we just start scheduling a work session because this is gonna we but we do have a little bit of a clicking talk clock that we need to get if we're gonna put it on the ballot this year how long do we have Sarah um an ordinance would need to be um introduced by the second meeting in July so I so we have a little bit of yeah but anyway um I it I will say that it's it's been a pleasure with everybody that we've had we had meetings with child care providers obviously with blue with a lot of people uh with the tribe um getting input and suggestions and there's a lot of interest in this and so you know I guess I hope that we have a good discussion tonight and a and a work session because I think it's up to us to at least put something before the voters to give people a choice.

But anyway, um I it I will say that it's it's been a pleasure with everybody that we've had we had meetings with child care providers, obviously with Blue, with a lot of people uh with the tribe um getting input and suggestions and there's a lot of interest in this.

Um so you know, I guess I hope that we have a good discussion tonight and uh and a work session because I think it's up to us to at least put something before the voters to give people a choice.

And then it's uh you know, once we put it on the ballot, then it's okay, you know, and it's it's up to the people of SICA to decide if they really want to try and uh tackle this.

So uh thank you for that introduction.

Uh as we go to public comment, I want to remind uh everyone that the motion on the floor is to accept the needs analysis report, uh discussion direction on next steps will follow after.

So is there any public comment on accepting the needs analysis report uh back to the assembly for del deliberation?

And again, we will move on to the discussion direction after we've accepted this report.

JJ.

I have questions for Blue if she's on the phone.

Yeah, she is.

Okay.

Hi, Blue, Mrs.

JJ.

Somebody had it all over here.

Yeah, yeah, there's too much background noise of cheers and celebration.

We can move on if anyone else wants to talk.

Oh, okay.

Uh Katie, please, while we're getting um.

Oh, I just have questions for her about the report.

Seems like we'll stand by.

We'll go back to JJ when ready.

Please.

I'm on now.

Hi, Blue.

It's JJ.

Hi.

Uh great report.

Thank you so much.

I appreciate all um of your decades of ad c advocacy for for children in Southeast.

And I'm you're just so well suited um to help us out on this.

So I appreciate uh that that application of your skills and talent.

Um I'm thank you.

Yes, I am comparing this report for us and the Southeast Alaska 2030 economic plan from Southeast Conference.

Um there's a very great priority in there uh about objective number three, increase child care capacity in Southeast Alaska.

So a nice regional approach um that you've contributed to and the funding um model here is like a three-part uh one-third communities municipality, one-third corporations, and one third state government.

Um is that what we're seeing?

That kind of one-third contribution in this report that you've prepared specifically for us.

Um to some extent, yes, it can be looked at that way.

You know, the feds um reauthorize the child care block grant every two years, and then that trickles into the state.

Um, and and then the state can add to that.

And then but what we're seeing, and that has been happening for decades, but what we're seeing is that's not quite enough to really make a difference at the community level, which is where the biggest pinch of a child care shortage is felt.

And so, yeah, that's sort of like the tri-share model is that communities um have to invest in their own system while also taking advantage of what is out there um from the state and feds.

Okay, okay, thank you.

Um we heard in uh after your report in persons to be heard that our local chamber of conference com conference, yeah.

Commerce is gonna have a conference, uh a summit for early childhood funding.

Uh they receive 15,000 from Asmussen Foundation.

Is that an opportunity um to kind of meld these?

What can the feds help with?

What can the states help the state help with, local contributions, and then local corporations?

Um is that are you participating in that or do you know of this?

And is that part of the plan?

Yes, I am going to participate in that, and um I look forward to working with the SICA chamber on all of that.

And I think it's a great opportunity to be doing a deeper dive.

I don't know when they plan to host it.

They just recently all the grant awards were just recently announced.

So I don't know when it's gonna be hosted.

So that's that's one of the things we've we've been seeing.

We've been looking at child care and sick of for several years, and there's always something new happening.

So when does you know the city step up, step in to do something because the the balls keep changing, you know, the the landscape keeps keeps adapting?

There's more kids, there's fewer kids, um, and that uh is is a kind of a blessing that we're we're being flexible or adapting to things, but then also um it's it's hard for you know your your slow government uh to really know where it can fit in.

Um is there anything else like that coming forward that you can help us understand at as we start this discussion tonight?

Anything else in terms of child care policy?

Oh, yep, or or new things that are gonna hit us uh before October when this may go to the voters that we should know about that could um you know either join our ground swell or throw a curveball since you're at a baseball game.

Yeah, um I mean the the curve ball is gonna be the sort of fiscal cliff that child care programs are potentially going over now that all of the pandemic era relief dollars have been spent.

Um I think Sitca and and largely helped by the SICA tribes of Alaska.

I think Sitka child care programs raised their pay with those funds and did some other quality measures that they're gonna have a really hard time sustaining now that those are gone.

So you're either gonna see program closers or you're gonna see rates go way up to stay open.

Um the the positive things could be so the we got 7.5 million dollars added into the base state operating budget last year for child care, and that increase that statewide per child subsidy program that I talked about.

Um they just now implemented that rate increase, even though they had the funds July 1, they just now implemented it, and they did a great thing where they are giving uh larger amounts for infants and toddlers, so that that's great recognition that that care costs more to provide.

So we're gonna see programs getting larger grants from the state.

It's hard to say what impact that's gonna make right now because it's still very new.

And then this year we got an additional 7.5 million dollars added into the budget on the house side, but the Senate took it out, and so now it will go um to be debated about in the conference committee.

That 7.5 million dollars was added with intent language for it to go directly to child care workforce, and so if it does somehow come out of the conference committee in the final version of the budget, and also not get vetoed by the governor.

Um that could be a big help in terms of providing child care businesses with a little bit of extra money to pay better wages.

Yeah, um, I think that if it does stay in, it will be used for um retention awards.

The people in the sector know these words as roots awards, uh, which is a one-time financial award to people working in the field, and so it will be great if it passes, and that's what they do with it, but I don't think it helps businesses with sustaining budgets and having revenue that they can count on and forecast and confidently just bring up wages knowing that they're gonna have this revenue every month, and that's really where a city funding mechanism is um plays such an important role.

It it's it's programs trust it, they rely on it.

And do you know when when people think about opening a child care program and they do the quick uh back of the napkin math, and they get to that deficit, and I say, Oh, but wait, add this grant money in, and then all of a sudden they're breaking even or even profitable, it changes things.

And that is the city being in the the sole help or part of this tri-funding model that I've learned about yeah, it adds to what the state and feds have contributed.

Okay, so it's in addition, yeah.

Kind of what I had envisioned with the pooled funding model is actually more like a pooled fund that would grow over time, sort of like a permanent fund, a trust fund, um, that every municipality in Southeast Alaska would contribute to it at determined levels based on their population.

And then that would then be used and it would grow over time and it would pay dividends, and then the dividends on that would be used to pay out these grants.

And so it would be sort of a grant program that's in every community in the region.

That was my vision.

I think it would it's a big lift to get there, but when I was asked to write that, I was told to dream big by Maylani.

So I did.

Okay.

Okay, thank you.

That that helps me understand that we're working on things kind of at two different levels here.

You know, the SICA sole approach and then maybe a regional strategy at the same time, but maybe separately.

Okay, thank thank you.

I was trying to kind of merge those two um ideas, and I do it it needed some clarification.

Um can you tell me more about the Alaska Rural Health Transformation Program?

That seems promising.

Yeah, um, so this is part of the one big beautiful bill signed into law by Congress, and Alaska's share of this um health care funding is 270,000 or 70 million dollars a year for five years.

And the framers of the state plan for how those funds would be spent, um, were very wise to weave in some child care initiatives, you know, with the recognition that if we're going to grow our health care workforce capacity, child care needs to be robust and in good supply.

Um, and also that child care, maternal and child health overall contribute to um the the overall health of the state and the and communities.

So um my understanding is that the state has until October to obligate 270 million dollars through a variety of initiatives that it chooses.

It so far it put out um a letter of interest process where you could submit a project idea and you kind of give a budget range, but you didn't ask for a specific amount.

And the so they accepted all the LOIs, they closed that opportunity, and now they're pouring through those, and when they decide they want to fund one of the ideas, they will invite um the interested parties to submit a full grant application with a more detailed budget.

I did uh on behalf of my agency, I did submit several letters of interest, and one of them is really to get that pooled pooled funding model started.

Excellent.

Um so that's promising, although I have heard that they got more in requests than they can fulfill, though I I find that um comment to be strange because the the projects really just proposed a range of funding, not anything exact.

So unfortunately, um we haven't had any feedback for the past six weeks since those were submitted.

We have no idea um when we'll know.

So we're all just kind of waiting.

Yeah, yeah.

It says the process apologies from being a part of a government that does that to people to some degree as well.

So you're understood here.

Thank you.

I appreciate um your your interest in my questions and your diligence in responding to them.

So thanks.

We'll go, Katie and then Scotty.

Yeah, hi Blue, thanks so much for the report.

I found it to be very helpful to put some figures to what we're talking about as well as the ideas.

Um my questions were primarily around uh Juno's program and also workforce development.

Um in my conversations with community members, uh, not just uh the contributions towards supporting people who have education, but I know that the SICA tribe of Alaska has also supported workforce development efforts to um create a pipeline of folks who are able to go into the child care field, and I kind of uh I didn't see reference to those efforts like the curriculum that has been created, the um I believe there's like a dual enrollment at UAS um class, you know, how how we're getting the next generation into child care jobs and training and certifications.

Do you have any comment on that or what that might cost?

Uh especially considering that the tribe, you know, might not won't be able to make the contributions that they have previously.

I believe they bought a bunch of textbooks.

Um any thoughts on that?

Was that something that you heard from uh the folks that you did community outreach with as well?

Yes, I did.

I heard that from providers, especially.

They want more opportunities for professional development and um and especially paid professional development.

I mean, in it's not uncommon in the child care sector to expect people to get um training on their own time and on their own dime.

Um we our agency one has a child care apprenticeship program that we we do operate in Sitka.

We just had somebody graduate from it in Sitka.

Um she works at Sheldon Jackson.

She just graduated this fall and walked.

Um and so we have that going on, and then I would just say generally, like the work that's being done with CTE and dual enrollment between the high school and the university is all super fabulous, but where we really need to ramp up that work is by making child care work pay a living wage.

And and until that part is addressed, you're just not gonna see too much interest in the field or investment in the professional development.

Um, and and we heard this from the CTE teacher a few years ago when there was a symposium in Sitka really looking at how to get those that younger generation into it.

We heard them say it's really hard to encourage a young student to go into a field that that the compensation is so poor in.

And so that in my mind, the the local funding piece starts there, which is addressing the the low compensation.

Thank you.

Did you get any idea of costs associated with supporting CTE efforts?

I did not.

I don't know a lot about that side of it.

Um and there is a lot of work done in the statewide level on this.

There's um funding from the child care program office that goes directly to the university system that um pays for tuition and books for um people who take at least I mean for at least one early childhood class a year, maybe two if they have funding.

Um there's some of that, and then our child care apprenticeship program is free for people to enroll in, and they actually get paid while they're um taking classes, they get paid for their homework.

There's coaching and mentoring built into that as well, and that's free for participants.

And that's in Juno.

Um it, I mean, our office is in Juno, but we work with um students throughout the region.

This year we had two in Juno, one in Sitka, one in Yakutat.

Oh, okay, great.

Um yeah, that would be fantastic.

I don't know if something that can come out of the uh summit that the Chamber of Commerce is doing um is like a an appendix or something on the CTE efforts and and ideas like that.

Like one of the things that I found most helpful about your report was those uh specific incentives and funding ideas, and so um that workforce development is a particular focus that I'm interested in as well and would love to have that uh information collated if possible.

Yeah, my other question was around um so you're based in Juno, and does Juno contribute like how do they fund child care and how is that going to be impacted by uh the budget cuts that are happening?

Um great question.

Um right now we receive an assembly grant.

My agency receives an assembly grant um around 1.5 million dollars, and it's funded largely from the general fund through tax revenue.

A portion of it is from a temporary one percent sales tax that gets um renewed by voters ideally every five years, and that money is typically dedicated toward community improvement projects.

Um we believe that child care is a community improvement project.

So it's sort of a blend of funds, and just looking at the proposed cuts this year, um, child care was not on the list anywhere of the 40 items being proposed to be evaluated.

Um, in fact, we're looking at um hopefully getting an increase to include more support for school age care.

Um that that ordinance will be voted on on next Monday.

So I I think um Juno has seen the value of these funds and what it has done for the child care sector and the community, and I I just don't see them cutting it.

Thanks.

That's uh very helpful information.

Appreciate it.

Scotty had a question from Luke.

Well, what I was hoping to learn from this is Scotty Celine Blue.

Um, I was hoping to learn from this is you know, you've you've mentioned workforce and they're up to 20 bucks an hour or whatnot, but when when you have the insurance and you've had the education, then you're the person that runs the child care, like, and if there's no money to go down to the workers, um, you know, what are those costs and what is the education you have to have, and what did you pay for that education to run a child care?

And you know, and then if your workforce is just people that are working there and they they get incremental child care education, but where do those costs come from?

I'm you know, where do the where does the money go uh when you are paying for insurance to have so many kids, or you know, does it go down to each kid?

Um a set costs where it's the same for insurance in Juneau, the same in Sitka, and then you know what's left you try to pay the people who are actually taking care of the kids.

Am I making any sense to you of what I'm not learning about uh you know the costs of child care?

I can understand that there's no money for the people that are changing diapers or whatever and taking kids for the walk, but who's paying for the insurance with the education that they have, and then where does the money go?

And is it the same in every town uh to have coverage to have somebody else's kids under your care during the day?

Um I'm not exactly sure what you're asking.

Um, child care businesses are required to have liability insurance, so that's part of the operational costs.

And we when we look at the cost of care and sort of the gap in what it costs a business to provide care and um what it what parents can afford to pay for it, all of those operational costs are factored in.

And you're right that right now most well, many child care workers, especially entry level when you're hiring new people because there's a lot of turnover, um, they don't have a lot of formal education in the field uh because it we don't pay it doesn't pay a wage that garners that kind of um credential teacher.

Um so insurance, overhead, you know, personnel usually makes up about 85 to 90 percent of operational costs.

Um those are all a big part of the puzzle.

And I don't know if I addressed your question or not.

Well, kind of it's getting me on the right track that you know, if 85 to 90 percent of the whole costs are going to the people doing it, you know, then I'm on the wrong track when I read about it and I try to learn that the the bar of education that you have to have in order to run a daycare, um, and then to get that money back by what you're charging people and then not being able to pay the people that are actually doing the work.

That's what I'm trying to figure out because nothing's changed in this from 22 years ago and we did two years of collaboration here in town, not one thing has changed.

It's the same thing you said now as was before, you know.

And uh I'm just you know, all the subsidy talk, it's just something basic is wrong, and I'm just trying to get a grip on it.

My kids all got to go to Mount Edgecombe.

I you know, I just I don't I don't know.

I'm trying to get there, and I I'm not seeing the whole picture, and I thought I was gonna get more information from this report, and I'm still clueless.

Okay, I'm yeah, I I understand it is it's a very complex issue, it really is because what we're talking about is public subsidy of a private business, but I guess the the big picture, the story behind it is that it is a private business that has failed to succeed in a free market economy, and that has been true for actually like four or five decades, and it's because you cannot at like other businesses where you charge what you need to charge to recoup your costs.

If you're if you open a business, you can say, I'm providing this service or this good, and this is how much I need to charge for it so that I can pay myself a living wage and and all of my overhead costs.

You can't do that in child care because that number would be far more than what most families could pay.

And it's already twice what the feds, like the Treasury recommends.

They recommend that child care costs no more than 7% of families' household income.

Well, in Southeast Alaska, it's more like 20, 25%.

And so that's where it just is, it doesn't make sense to a lot of people, to be honest with you.

It takes people a really long time to wrap their brain around it because it's kind of a conundrum.

But in my mind, that's what it really comes down to is it's it's it's in market failure.

Thank you.

Can I have a question for Blue?

No, uh, I was just logistically, I was wondering if if maybe we maybe we could because it's awkward making a motion to accept, maybe we could vote and then uh then we'd be free to add more thoughts that necessarily aren't on the report.

That makes sense.

Uh it does, but we do have a motion on the floor right now.

Uh Blue, I do have one question for you.

Um just because I'm familiar with this style of program as my my kid is involved in it, and I didn't see it specifically called out in the report.

So as I as I look at it and try and make sense of it.

Um so did you look at a school-based system?

Uh in Sitka, we call that program ventures, and does that raise the overall cost of child care or lower it?

Um, I'm wondering that because of potential economies of scale and potential reduced operating costs of such a system.

Yeah, I think it depends on how that program is structured.

For example, if ventures is using um state certified teachers and they're being paid a wage that is much higher than your average um child care center employee, like in a private program, then the costs might end up kind of evening out.

Yes, they don't have the overhead costs of a facility, but they have higher personnel costs, especially if you factor in um benefits as compensation and in Juneau, those programs um, along with like Head Start and any other program that already is subsidized to a large extent of its budget, they are excluded from participating in this grant program under our MOA.

And so details like that, I think do need to be looked at, like sort of a deeper dive.

And if you all decide to fund um one of these options, those little details would need to be worked out.

And did uh did that particular style of program make it into this report?

Um, the numbers of children that attend ventures, they're they're counted.

Um I don't think I dove into the economic model of the subsidized nature of it, no.

Okay, thank you.

Katie, you had one more question for Blue.

Yeah, just kind of um maybe riffing off Scotty here on page um nine, you have the Alaska true cost of child care tool that kind of lays out this is the cost per child, and then this is where the money goes um for personnel, wages, benefits, occupancy, um, insurance, food, etc.

Uh you said that this problem, this market failure has been happening for you know four to five decades, but this shows operating at a loss um of like eight hundred and sixteen thousand dollars, if I'm reading this table correctly.

Um you know, how have centers been able to stay open for that long, if that is the kind of revenue gap they're facing?

Yeah, great question.

So that report commissioned by the state of Alaska, um, comes with this tool, which is a spreadsheet where you can toggle for different um conditions, and so the figure that you're referencing on page nine assumes a living wage in sitcat, and so we know that that's not actually what sit and child care providers are being paid.

So this is an example of what a deficit a program would have if they were to pay living wages, and not yeah, that that makes sense.

Um do you it doesn't have the detail of like what the living wage is or you know the differential that that we know exists.

Do you know what assumption is being made there for the living wage?

Um I I thought I pointed to it.

It um used the MIT um calculator for a living wage standard.

I feel like it was around $25 an hour or a little bit less.

Okay.

I do think it might be in here somewhere.

Page eight, middle paragraph 25 confirmed.

Okay, thank you.

Yeah.

Um and again, that you know, that's an uh a non-city specific data point um that I had to use because I I had worked extensively with the Department of Labor to try to narrow that down more specifically, and they they really didn't have that data.

And so it was the Department of Labor that suggested that um I use this MIT living wage calculator.

Okay, thanks.

Yeah, I think that those two pages are helpful to understand um the gaps there.

So thanks for that.

Yep.

JJ.

One more question.

Hi, Blue.

Uh I I heard in your presentation, but didn't really see it um in the report much, um, but I also have in front of me the report that came in January 2025 from our health needs and human services commission that talked about utilities.

You mentioned that um in your an introduction.

Uh, is that you think of viable avenue for I mean, it's not gonna you know get the one million, two million dollars and in subsidies needed, but is is that you think of successful strategy to look at if we're trying to find some long-term solutions here?

Yeah, and that was mentioned in option one, you know, sort of like the but I I wasn't able because I don't know those costs, I really wasn't able to pencil it out like what that would look like for programs or what it would cost the city.

Um but in general, any time you're reducing operational costs for providers, you're freeing or for business owners, you're freeing up money that they can use for better wages.

And it has been my experience in working with child care providers in the entire region.

Every child care provider, every child care business owner you talk to or man at program manager, that's the number one thing they want.

They want to pay better wages, they deeply care about the the health and welfare of their employees, and they want them to be compensated better.

Um, so anytime there is operating revenue freed up, that's you know where it's going to be directed.

Okay, yes, and I think with our communications for the school district too during a budget cycle, we see that in the higher levels of education uh as compared to early childhood.

So thank you.

Uh Blue, thank you for your time this evening.

Wanted to make sure we got uh some robust questions out of the way as our uh conversation develops this evening.

Um so I do appreciate you taking the time to jump on the phone with us um as we develop the next uh as we accept your report and then develop the next steps.

Great.

It was my pleasure, and I'm happy to come to future work sessions or be available on Zoom for um other questions any time.

Um we did our agency did get a Rasmussen grant also to do this work in Southeast communities, and so please just look to us as a resource um anytime you feel like you need more information or want to chat.

Uh thank you.

We'll continue to utilize you and your agency as a resource.

Great.

All right, uh anything further from the assembly on accepting um the child care needs analysis report, Sarah.

Okay, Mayor Eisenbeis, yes, Mr.

Christianson, yes, Ms.

Riley, yes, Mr.

Mosher?

Yes, Mr.

Selene?

Yes, Miss Carlson, yes, Mr.

Pike.

Yes, motion passes 7-0.

All right, and then uh sure there's a kind of a two-step process tonight on this, um, so we can continue our discussion direction uh after a recess.

All right, the uh second step of our process tonight, a discussion direction decision on some next steps.

Uh Tim, you want to start this one?

Sure.

You know, I think I don't think there's any question that there's an issue with child care in our community and actually across the country, to be honest with you, and it comes into a couple of different areas.

And so when I approach this process, um I was you know, I was quite kind of skeptical about what the city's responsibilities or uh role was in this, to be honest with you.

Um, because like JJ talked about, there's this optimistic three-legged stool, right?

So there's industry, the people who are actually benefiting from the child care so that people can come to work for them.

There's the federal and state government, and then there's the local responsibility.

And I say it's an optimistic three-legged stool because um I was imagining that the city would become a facilitator of this process a little bit and would pull together the major employers or all the employers in the community and say, okay, what what can you do here?

Like, how can you help this process along so that we can make sure this works?

Because you're the main beneficiary of this, right?

You're the people who are benefiting from this.

Um, but you know, that's really complicated.

And it's gonna take a long time and it's gonna take a lot of staff, and it's gonna cost the city to do that anyway.

And I think that's the same problem that everybody else has run into too when they look at this thing.

So the industries are struggling to make be profitable in some cases, and they're not interested in participating necessarily directly.

And the state and feds, as we now know, especially in our state in this current environment, are becoming a very weak stool leg to that stool.

And so, like many other things, the remaining responsibility has ended up here, right?

Like we've how many different issues have we looked at from this table where we've picked up the responsibility because the state or the feds have dropped it.

Um and so I that was where I started.

I started with a process where I re I know there's a big problem, but the real question is who's responsible and who's gonna be funding this thing.

And so as we start looking around and talking with the different groups about this thing, the model that Juno puts forward about the city except accepting responsibility and funding it is one that works.

And I think that's the main point that Blue was getting at, and that's the main thing that we're gonna end up discussing here.

We need to decide as a group what level of service we want to provide our community in terms of those different options that you laid out.

And I to be clear, those are some options.

There are other ways of looking at that, but I think we're gonna have to figure out a sustainable way to fund this going forward because whether we like it or not, we are this we are the one-legged stool that's gonna make this process work because I don't think that we can count on the feds and the state to come through.

Yeah, fifty bucks a kid a month sounds like a really good thing until you realize that how much does it cost to send your kid for one month?

Twelve, four to thirteen hundred dollars.

Fifty bucks is great, but it's not not super, it's not gonna work necessarily.

So I think that's where it started, and I think that's what we're here to con that's what this conversation I hope will come to is what do we want to do.

I'm I don't know that we're gonna come to that realization tonight.

Because I think there's a lot of new information that everybody got, and I hope we'll be able to process a little bit.

But we need to recognize our responsibility on this issue and decide how we want to do it.

And that's where that whole funding thing comes to into play, right?

Like once we decide kind of what we want to do, that gives us a sense of what we need to find in terms of revenue, and that gives us the options that we can look at in terms of how do we do that.

I think Tor spoke uh already a little bit about the general fund.

Well, Juno has that um opportunity to to do that.

Um, information trickling out of June who indicates they may or may not be able to continue that level of funding over there, right?

They were handed a pretty dire set of circumstances by their voters.

Their their general fund is in free fall, they're gonna have to make some hard decisions over there.

I want to see us go down a different path where we make sure that we have a sustainable uh uh process.

And I also want to ask the community what they want to do.

I want us as we go through this process to discover what we want to do.

I want us to ask enough questions that we understand where the community wants to go, but in the end I want them to vote.

I want them to pick a dispick something.

I want them to say this is important to us as a community, and if they say no, that gives us an answer that we're gonna then have to work with after that.

But I don't actually think Sitka's gonna do that, especially if everybody does their the background for everyone, it helps them understand where we're at, as well as where it's gonna go and how it's gonna play out.

So I think we our goal here is to figure out what services we want to offer, and then we can work on what that sustainable funding source is.

I am not gonna suggest that the general fund is that because there are we all sit sat here, we have to make hard decisions about the general fund.

We cut the sand, you know.

So, you know, I I these are you know, it doesn't sound like much.

Hey, let's cut that by 10%, right?

Sounds like a little bit of a thing, but it's a big deal down the road.

So that's where I'm at.

That's what I want to see us do.

I'm one of the co-sponsors for this for a reason.

I think it's a very important issue.

I think it probably trumps housing to a certain extent in terms of that.

I'm disappointed that we're not gonna have the resources and time to help the the main beneficiaries, and that in that being the the businesses be able to come up with their where they fit into this process.

Maybe over time they can start to help with that.

But I don't, you know, again, we are the we are the one-legged stool that's gonna make this work.

So, like you're saying with Juno eliminating the food tax and getting 10 million out of the general fund, this program that they developed is going away.

No, no, not yet, not gone away.

But I think it's gonna be under stress for sure.

Uh thank you, Ms.

Mayor.

Uh well said uh Tim.

So yeah, I agree 100%.

Um there's there's a couple things going on.

There's the what we want to do, and then of course a future discussion will be how we want to fund it.

And from my perspective, since we've started all this, um uh in my mind, this is what I would like to see.

Just my personal opinion is say we decide something, say we decide something around the version of say version something around version two, which is a little like 1.4 million or something like that.

Um then I I do not envision the city running a program.

I see I envision us deciding on something that we want to do, then figuring out a funding mechanism that voters would have to choose, um, and then we would collect that revenue for say a year or what have you, and then we would outsource that the services or the administration of that to an outside entity.

Uh blues organization could be one that could apply.

We'd have to do an RFP for that, or another organization could apply.

But this way the city would not, I just want to clarify it's not my personal desire to have the city running this.

It is to somehow get the funds uh you know approved by the voters and then have an outside entity administer that, and the purpose would be to shore up the uh child care industry.

Um I mentioned before uh you know, concerns about uh the the uh you know expensive living since we initiated this uh or sanctioned this study, you know, we did not know a war was gonna start and oil prices would increase, and there's you know um, you know, we haven't even fully realized the increase in cost of livings uh yet.

That being said, um I still believe the community desires to for this to be addressed.

I believe it should be addressed and needs to be addressed, and will benefit the community long term and will save us money in in a certain way in the end, and that needs to be shared and explained.

That being said, I want to make sure, you know.

I in my mind, I was pushing that, you know, we were gonna do, and I we've not talked to several people, you know, in public and in private, you know.

I was pushing in my mind, I think we all were thinking the one percent additional sales tax in the winter, but and then trying to get that on the October ballot.

But since thinking about it, I I think that um I want to do this right, I don't want to uh rush it, and I'm not saying I want to put it off.

I'm saying, like Tor suggested a work session, we could talk tonight about what we want to do, and then um we might need another works a work session to discuss that even more.

And at some point we need to um talk about the funding mechanisms, and so uh my point is I think we'll we're probably inevitably gonna need a work session and we're gonna need to outreach the community.

That could be uh something along the lines of the chamber, what the chamber's got going on.

Um, but also another idea would be I'm just throwing out an idea.

Uh say we come up with a list of funding mechanisms.

Um this is going a little farther.

Uh we could put out a survey, a survey that is uh done in a way that reaches uh a large share of the community, get their ideas.

And my point is if we don't, because I'm looking at the timeline.

What I'm trying to say is I I don't want to rush this to just to get on the October ballot because we want to do that.

I want to make sure the public uh is heard and we hear them loud and clear because if we're doing this, we gotta do it right, and we gotta make sure the public has buy-in and that they're on on board.

We can do a special election if necessary, um, as we discussed tonight.

So that all being said, um, you know, kind of dovetailing off of what Tim said as far as tonight's discussion.

Um, I believe this is absolutely crucial.

I believe the community um needs it and does desire it.

Uh and it like I said, I do believe it will help us with the cost of living in the long run.

Um, but I my idea or my thoughts on how to address it would be something on the line of version or idea number two, uh, or a mix thereof, around basically around one million dollars give or take.

That's my thought on what we should do, and like I said, uh to clarify, I don't want the city to run it.

I want us to choose something like that where we're um supporting the child care industry.

We figure figure out a funding mechanism, we raise the funds, uh, and then we outsource that to an outside entity.

I just want to make sure that's clear.

I don't want the city running this.

Uh we raise the money and then we outsource it.

That's my personal thoughts on it for now.

Yeah, um I in a lot of ways very similar to what Kevin is saying, although I'm not sure.

I mean, uh to be up front, when it's uh option two uh much better articulated than we were initially thinking is what we were is you know, um I think is also probably the most workable and doable that'll actually move the needle.

Because when I was when I got into this, I mean is will it move the needle?

I'm not interested in doing anything that's nibbling around the edges that doesn't actually help.

I mean, and so I do think we need to talk about which option we want and the funding source at the same time because they they go hand in hand and they can't really be separated because if we by figuring out the funding source that to a certain extent dictates which of these models or hybrids of it we would pick.

Um I mean so uh I think like I said, our work session is is also a good idea, although I'm not I think we should be talking about what funding source and what model at the same time because the the they can't be separated.

Um the a couple of thoughts about the timeline.

Um I think that that cliff blue was talking about is very real, and that I'm if we spend too much time, we might not have as many child care providers to keep running at that point, and and it's a lot harder to start something up than it is to keep something running.

Um the other thing to think about with this is that this is a long-term issue, and I know we've got some stresses right now, uh, but they're uh that outside of this issue, but it it's there this issue is not gonna go away, and the we we need to um you know, whatever we do will be affecting things for a very long time, and the situations may improve worse and whatever.

Uh, and and thinking in terms of what's the economic situation this second is probably might not be a good idea, um because it's gonna be a long-term thing.

Um, you know, there's one of the things I'm a little afraid of is the well, what about?

Well, what if we did this we could get money?

Well, what if we could do that?

And we never do anything.

Um I know that we brought up RHTP earlier.

My company, first of all, it's a short-term program.

Um, from what I was told that about two billion dollars have been asked for in the first round for a 270 million, and that's only supposed to be an incubate a startup thing, and we were too late for it this year anyway.

Um way too late.

So if we get up and running and we say we need money to ramp it up, then we would have a very good chance next year.

But I don't think we'd have a very good chance to say we want to do this and subsidize health care because it that one of the first things they say is they want sustainability.

This is supposed to be to the seed money to get something rolling, and it's honestly a very small amount of money compared to how much they took out of the health care system.

Uh so well, we might be able to access some of this for again for the ramp up process.

I don't think at least when I went through working with RHTP, um they were not interested in you know having something go for a few years and then die as soon as the funding stops.

So I fully support a work session.

This is for the people who are actually doing this job and providing care and figuring this out, it's very complex.

Honestly, for us, it's not because we need to come up.

If we want to move the needle, we've got to come up, at least when I read this, in the neighborhood of a million dollars a year.

And then how we do that, there's not a whole lot of options for that either.

So you know, we Kevin's right, we need to do a lot of outreach and things, but we've also got a group of people, some of them sitting here, who will help us with that outreach.

And they're gonna be way better at it than we are.

Um so um, and if you know we need I think we need to get something before the voters, and you know, we've been for as long as I've been on the assembly, this has been come before us, and this is the first time we've had to say, okay, now this is what we came up with.

Now it's time to you know put up or shut up a little bit.

It's you know, uh, and I think it's good that you know we all recognize it.

I mean, my kids are out of daycare.

Um and it was a huge lift to get them through that.

But I don't want to say, well, mine are done.

I don't want to, I don't that's not my problem anymore.

And I don't think the most of SICA will either.

So Thor, you're you're thinking about a million dollars, and then for the 485 kids, then like $2,000 per kid, or what what was that where is that going to the workforce or yeah, that's the direct operating grants to the child care uh facilities, option two in the in the report.

And it it may be slightly tweaked with a little bit, but roughly option two.

Um if we came up with a way to raise more money and we wanted to go with option three, I wouldn't fight that.

But looking at this um option two is roughly uh right around a million dollars, and and the thing about it is that it would depend on how much it raises, because if we said that that whatever mechanism we raise the money for, however much it raises, this is vastly oversimplifying.

So uh, but we basically say, okay, how many kids we have and divide it, and it's it would be um so but it's gonna have to be constrained by however much money, whatever funding source we come up with.

So it's not gonna say it's it's gonna be 400 or 600, it's gonna depend on how much we raise from the comments tonight.

I'm gathering that uh another meeting will have to happen on this one.

Um I don't want the assembly to not talk about their thoughts right now, but I also want to like if we expend all of our ideas now, are we not bringing that synergy back into this next meeting?

Um so being cognizant of that too when we when we move on here.

JJ?

Yes.

Um this is a little overview for those who are listening, or you know, for the record.

Um the revenue sources that are being considered are two percent alcohol tax that's estimated to earn about 500,000 every year, or a one percent seasonal sales tax for the winter months, October through March, and that's estimated at potentially a million dollars every year, or an additional summer season one percent tax, um, which could um earn double that about two million a year.

So those are the the three kind of revenue sources that sponsors brought forward just to help with this discussion.

Uh and the other side uh is those operating models or those options that are being considered uh the operating grant um that's been kind of supported by the sponsor so far is to look at uh doing 250 dollars per child per month, um which would equate to about that that million dollars if we are able to also add some capacity to our existing system or the million dollars could also be you know with the numbers we have right now, 400 per child per month in that in that subsidy.

Uh so that's just a frame for anyone listening for anyone that you know doesn't want to look through papers in the future when you come back this meeting and listen to this recording.

I think it's helpful to kind of mark moments in time um and give a little bit of that backstory for for accuracy.

Yeah, thanks for the discussion tonight.

Um I agree with you uh that an additional um discussions are needed.

Uh another session.

Um, but just one thought on something that we could do tonight, and then some thoughts about um what has been discussed.

I appreciated that blue flagged um the budget discussions that are happening right now at the state level, and the budget is going to conference committee, and I'm wondering uh if the body would be willing to consider asking the administrator to write a letter saying that we support this 7.5 million that was in the House budget making it to the final budget.

Uh that is not um insignificant, obviously not gonna solve all our problems, but I do think that kind of anything can help here, and that is something coming out of the state level that we could consider advocating for.

Um in terms of what we bring to the voters and whatnot funding mechanisms.

I won't you know go ad nauseum or anything, but I do think it matters what is on the ballot, and I don't think that it should be taken as an indication that the community doesn't support funding this initiative if they don't pass what we put on there, what we put on there very much matters.

And I am extremely uncomfortable with putting on a winter sales tax increase because I think that that is a burden that the working families of this community right now simply cannot afford.

And that doesn't mean that they're not thinking long term, that doesn't mean that we don't know the importance of this.

That means that right now uh cost pressures are insane, and people do need to look out for their short-term um costs in addition to thinking about that long-term picture.

So I wouldn't want a no vote on that to be an indication that this isn't a priority for our community.

And I think that a survey or something looking at some of those different options um before we put that to a vote uh would be really helpful, right?

To get some more feedback.

We certainly got some feedback in emails about um funding ideas, and you know, from what I've heard in the community, that one is is really hard to swallow right now and also in general.

So I do want to explore those a little more.

I would like for that to be a part of the conversation that happens at the Chamber of Commerce um convenings, and you know, look forward to hearing what comes out of those.

But I you know, maybe it's best if we come up with a set of like short mid and long-term fixes, you know, um, like short, some advocacy on the state budget, mid uh what can we figure out to do ahead of the October ballot or a special election, and then long term is like you know, is there a way that we could measure the success of whatever we do and scale it?

I thought it was very illuminating that Blue said that Juneau is considering cutting 40 items from their budget, including like a series of you know, well-beloved recreation facilities, closing pools, closing Eagle Crest, things like that, and the child care funding is not on that list.

And that to me uh indicates that the community is like this is like one of the most important things that we can do because they are you know considering making some really drastic cuts to things that the community really cares about.

So those are just a couple of my thoughts, but yeah, in terms of how we get to what we want to do and how we fund it.

Um I think some real thought needs to go into how we structure that conversation.

Tim?

Yeah, I just want to throw a different word in for um what we're talking about when we talk about the budget, right?

I mean, I've heard the word cost a lot.

I actually think the right word is investment, right?

We're investing in our children as a community, and I think it's important for us to keep that in front of us as we look at this uh funding process.

It's not a cost, it's an investment.

It will pay dividends for us down the road, and it helps our community go forward.

I just want to make sure we keep an eye on where we're headed with it.

And as the conversation with the community comes around, that's also the point.

The point is we as a group are deciding to do this.

So I understand about the winter sales tax thing.

I agree with Tor and you, right?

Like I don't this is a long-term thing, so we can't look at the short term and say it's not gonna work.

But on the other hand, it has to get over the line.

And so we have to figure out how we're gonna do that.

Um, but as an investment, that's a whole different thing.

And our you know, our community has come forward for investments for the schools and droves.

So I think the last one was north of 80% support.

So JJ and then Kevin.

So I'm thinking a bit about you know who pays sales tax in Sitka.

And there's an exemption for seniors that's 65 and older, aren't contributing to to this.

Um so you're in essence getting that those funds from you know working families.

We'll we'll just lump lump that as a as a word there, or or people of childbearing age.

And so you're kind of taking two dollars from their left pocket and then giving it back to them in the subsidy is two dollars into their right pocket.

Like that's we need to be finding a different base, especially if we're looking at that winter sales tax.

That is the people we're trying to help, but we're taking money from them to help them over on this side.

Um I think additional options for revenue sources um was is a good thing to think about over the next month before we convene in in that work session.

But I think um for the schedule of things needs to happen next month to be able to have something um ordinance-wise by by July to get it on the ballot for uh for October.

So that's what I'm gonna be spending the next couple of weeks on.

Like thinking about Petersburg senior show cause for sales tax.

Petersburg, you gotta show that you're broke in order to get the Hey, look at you, strategizing already.

Kevin.

I'm just trying to think of logistics of how we do this.

Um yeah, I I would be interested to know.

Um I've always thought the the one additional one percent in the uh winner would be simplest because then it would create a net uh a de facto year-round uh tax rate of six percent.

I understand what you're saying though, JJ about the the senior exemption.

Um but there's um so definitely we should be looking at all options, and I encourage everyone to be thinking about that um for when we do meet what I would hope would be in about a month.

Um yeah, I I think we should meet in about a month.

We'll have another discussion, um uh perhaps a work session, a little less formal.

Um I'll probably be attending uh the chamber thing because I want to find out more about that and find out what kind of time frame because I know they've got a grant, but I don't know exactly what kind of convening time that would be.

Um Mr.

Mayor, can we can I ask?

I think Miss Sagel has that information, and I didn't quite write it down.

Do you think I could ask her?

Uh she's willing to come up and speak, yes.

We can ask questions of anyone in attendance.

As the chamber originally wrote the grant, um there was gonna be a convening in August, but Rachel um expressed an ability to pull that um closer to this time, uh possibly in July, possibly even in June.

She had had it timed for um national and state chamber conversations regarding the the same topic, but thinks that it could be pulled sooner.

So I would say it's a bit flexible.

There's something they're gonna be like really soon where we're gonna be talking about that when when and where is that?

Um on Mondays, the the early childhood coalition is gonna uh agreed to help with the planning of it, and we typically meet on Mondays.

Okay, Mondays at one o'clock, and we may be meeting this next Monday will be uh beginning the planning of that summit.

Um, and then we may meet weekly or every other week regarding planning the summit.

Okay, thank you.

And then I figured just uh finish my thoughts.

Uh thank you, Mr.

Mayor.

Yeah, I point is um you know I've been fixated on the one percent, and and I I'm not married to the idea.

I'm open to suggestions.

Um in my mind that's the one that's the most solid uh for generating real revenue.

Um but I would be curious and open-minded to other thoughts when we either now or when we meet.

Um but as far as sorry if I want final thought.

Uh regarding Katie's suggestion about asking the administrator to write a letter.

I mean, I I think that's there's no harm in doing that.

Um, so I'd be okay with that.

John, uh resolution um or uh a note from yourself uh signed by yourself would be pretty easy to craft to the legislature.

I'll do some research into uh the exact topic and um I can put something together.

Accurate would be important as well.

Thank you.

Katie.

Yeah, I do just want to um say that JJ and I have been investigating the uh sales tax cap as a funding mechanism, um, just a revenue generation mechanism, and I know that it comes with uh trade-offs in terms of reliable generation of funding.

It fluctuates more um than sales tax, and uh is not as predictable.

It's harder to generate.

However, from our initial discussions with the finance department, it was very much not an insignificant amount of revenue that was estimated to be generated by either the removal or adjustment of that sales tax cap.

Um I think there are a number of considerations that uh the assembly needs to make um for that for construction and boat building, um, those are two things that generate uh you know lar large purchases that would be heavily impacted by the removal of the cap entirely.

Um but if we were to raise that uh to say 20,000 dollars, 25,000, um that is an additional 1,200 or 1,500 if you exceed um you know a purchase like that uh that would be generated and it adds up.

I mean, for cruise ships alone for the month of May, that's an extra $50,000.

So it's something I think that we should explore.

Um, and I believe that Brooke can help us do that.

Um again, not as uh reliable or or predictable as the other funding sources, but if we put in some sort of fund that is allowed to accumulate over time, that can also um manage some of the balance between years where that might increase substantially and years where it might not increase as much, you know, if there is like significant construction projects or purchases and and whatnot.

So I just do want to throw that out there as not an option to be um dismissed out of hand uh that that could require some more information.

Do you mind if I follow up with a question?

Do you did you ever get a ballpark number?

Or is that something that we're we're gonna need Brooke to get a question on the elimination of the cap completely?

Well, yeah, I understand doing that as a complex issue because you do have to make exemptions and things like that, and that can have unintended consequences which have to be thought uh out properly.

But I just didn't know if you had a vague ballpark.

Um elimination of the of the cap ballpark is about 2.1 to 2.2 million.

That's eliminating it entirely.

Eliminate entirely, and would we don't know if that would we don't want to have negative add-on effects to other industries and things like that.

So that would obviously have to be looked at in research.

But that's the main reason why nobody's bringing their boat here to SIPCA to do any work because of that cap.

And you know, the main thing to me of talking about that cap is a guy that pays for all his charters, like a corporate thing on one sales, he doesn't he doesn't pay tax on everybody that so like if you have 50 grand worth of charters, you're only paying tax on up to 15,000 or something like that.

12,000 because I've been here since it was you know way nothing, but that's uh my hackles are up talking about it, but then the one that's not being captured is that somebody that pays for an entire charter party and then missing that whole thing, but having the sales or that cap on boats at 12 or 15 or going to 20, that's the number one reason why this shipyard has issues.

Katie.

A slight correction.

We did talk to HIMARC.

No one has done 12,000 worth of work yet at a time.

And they're not gonna.

Well, I I'm like people haven't reached the sales tax cap yet.

Um, so like the transactions that they've been doing.

But I think before we get into the nitty-gritty of that, like what would be most helpful is getting a presentation from Brooke on how that cap works, how it's charged.

Sorry.

Uh but now you're done with the budget, so you get to teach us about other stuff.

Um it's it's pretty complex for like you know, day of service or goods.

Uh, we had a nice briefing on it, and I'm still missing some of the details.

So um I think an education component on that would be extremely helpful.

Um, but yeah, yeah, we we've been doing outreach talking to people, and there's there's been some surprises and some places I think we thought it would be an issue that it's not.

So we we can't know the full picture, uh, but certainly understanding how it should function and how it should be reported is a good first step in uh being able to make any kind of estimates like that.

Tor, yeah, that was definitely one of the things we looked at.

Um, and I know I talked to Brooke about it.

I couldn't get any numbers, so that's part of the reason I didn't push it.

Um the I don't know if anyone want to bring this up.

Uh the one thing about that is you know, it it actually doesn't need a vote.

Unlike, you know, but I think what if we're gonna do something like this child care initiative, we probably should put it to a vote.

But um I I just got very uncomfortable when I was when we were first talking about this with the really not knowing how much it it produced.

Um the uh and then how do you determine what is generated by removing the cap or moving the cap and what it because as I understand it, they don't break down their reporting by sale.

They put it by gross amount, is that correct, Brooke?

Like, I mean if if if if do they they don't report it if Joe's sales or Joe's whatever I don't think yes, you you're right.

People don't list all their individual transactions, they're just listing.

So we would have a very hard time saying, okay, this is this became we got this extra money because we moved the cap.

So um and and if we're comfortable with that saying we're gonna go ahead and do some sort of a child care initiative and confident that that extra that change made it, great.

But Steven's right.

I'm sorry, we we should be talking about this all at a work session, but uh I'll I'll shut up.

Oh, but it's it's good that it was brought up because that could give Brooke some time to get us more information.

So when we meet next month, we'll have more information to go on.

Um I do want to read, I mean, I like I'm like I said, I'm open the idea is any idea we do, whether it's uh one percent sales tax or something like this, you know, the considerations need to be investigated and thought of so that we're not having a negative impact on industry, uh things like that.

And you know, so whatever we do, I do think it needs to go to a vote, even if it doesn't require one technically.

Tim.

Yeah, I mean, we're like deep in the weeds here.

Um yeah, I the first question we have to answer is what are we doing, right?

Like what are what are we doing?

What is it our goal here?

What is the process we want to go through?

What are we trying to fund?

How are we what do I mean the b the community needs to understand what we're trying to accomplish first?

Um because they're not gonna vote yes for any kind of funding for us until they actually understand what it is we're talking about.

So I think that's the very first question.

And I I said that earlier, and I think that is the question, and that's what everybody that's sitting here and listening to this with wants to know what is the city gonna do, and then it's up to us to figure out it's not just up to us.

I mean, it's up to the city.

John can certainly help too figure out like how are we gonna do this so it's a sustainable thing.

Um John and Brooke can work on magic and figure this, help us understand what we can do.

But you know, if you want to get it across the line on a vote, people have to understand why you're doing it.

You know, the reason why school stuff passes and the other millage rate stuff doesn't, is because schools are people are like, yes, we support schools, or yes, we support activities, or yes, we support you know a performing arts center.

We think that's important for our kids.

And so then they say yes, even though it costs them money.

And I want to go back to that investment part, right?

Like, so I've seen a lot of through, you know, a lot of these ideas come down to someone else is gonna pay for this, right?

Like the visitor, and I think that's fine to a certain extent.

Um they they benefit from this to a certain extent, you know, the people work in the visitor industry, right?

But I also don't want to let everybody else off the hook, right?

I started with a conversation by saying I'm disappointed that we're not gonna be able to bring the third leg of the stool along, right?

Like the people who actually benefit from it, the employers, they should be participating in this process.

They're a third of this process, according to your your cool little thing.

I mean, but that's highly uh entirely optimistic.

That's not you know who's gonna set that up?

The chamber of commerce is gonna set that up.

I hope so.

Because you know, they should be part of this.

So what we're funding it, we need to figure out what we're gonna do first and take over that responsibility, and then we can figure out where we're gonna fund it from.

But if we get deep in the weeds with this funding thing, we're never gonna figure out we're gonna be stuck on that.

We get two million dollars, we get this, that, or the other thing.

First, let's figure out what we're doing.

Because that's what's gonna sell it to the voters.

That's what they're gonna vote on, and that's what they're gonna invest in.

Kevin.

I I do agree with you, Tim.

I think the temptation to go to the money right away is because that is what creates the realm of possibility in in our minds, you know what I mean?

Because we think, well, it's great, we want to do something, and then we immediately want to go to the money because we want to say, because we part of us doesn't want to put all energy into something unless we know we can we can do it.

But you are right, you're a hundred percent right.

Um, I mean my you know, maybe at our work session and possible agenda item as well.

Uh next month we could, you know, split it up into two things.

What are we doing?

And not possibly funding ideas.

I mean, I threw out the option two uh idea, no one shot it down.

Um for people who are listening to, and I'm glad you said something, JJ, about like because we've read this report, we're talking about it, not everybody has uh a lot of people listen to the meetings, and um a lot of people listen to these meetings.

It's it's it's impressive.

People are really buying.

Um but the trucks of these these ideas, uh, these grants and and such, say option two is to is direct operating grants.

Theoretically, we have money and to an outside source, we start uh per child have grants uh of a certain fund amount sent to these child care facilities or licensed care facilities to help them basically stabilize the market so they can use it to um basically increase the wages, train people, things like that to make sure that uh we have qualified uh workers that are there that want to be there and that stay there because you can't have a child care if there's no one working there, and then the additional part is stabilizing.

So if you can pay your people more through this kind of incentive, then you the temptation or the pressure to raise your tuition lowers significantly.

So and I agree a hundred percent with what him saying this is an investment.

We're thinking money and cost, but yes, this is an investment.

Um but I wanted to clarify for people listening, that's the kind of thing that we're talking about.

Um so yeah, Katie.

I also support option two, the direct operating grants.

Just another you know, bit of information out there that I think is is helpful um to kind of bigger picture frame this conversation.

Uh child care centers in SECA don't pay sales tax, that's an exemption.

Um, it's been written down for a while.

Uh property tax, they don't pay as well through that community purpose exemption.

The last child care center that got in on that um was you know, two years ago, says that so that's that's good there.

Um trying that's currently what the municipality is is able to help or subsidize through our mechanisms that already exist.

Um so we're just trying to find that that next level of how um your your group here in local government um can help these important workers and families out because they're just so necessary on all things we have so much data now that tells us that that this is necessary.

Um and also if anyone's out there wanting to start up or expand a program, there's a small business guaranteed loan program that we run here at the city, uh second journal code 4.100.

You can look through that and see um because that was listed in the report as important to kind of help get that capacity need.

Um there is a mechanism to do that um through through an option with the municipality.

Tim.

Thank you.

Uh this is my last comment.

I think we run the very real risk of wrecking this process by heading to money before understanding what we're doing.

Um, I think if we aren't very aren't careful and make sure that we clarify and explain to the community what we're doing and why we're doing it before we tell them how to tax it, because I can think, I mean, it's been disappointing to see the emails all saying no, no, no, right?

No, don't do this to me with it without actually understanding what this is gonna do and what the investment is.

And so I don't want to do that.

I want to be real careful here.

I don't want this process to fall apart on the backs of people.

I would I was not on the assembly, but I certainly heard all about the last time we raised the sales uh cap, right?

Like you would it was a war, right?

Like every business under the sun was in here saying why this wasn't gonna work, and so um, you know, the that assembly was pretty under siege for a while, and uh, but that was because they just wanted the money for the city, right?

And the people are like, no, I don't want to do that.

This is a whole different thing, but we run a real risk of people saying no, I don't want to be taxed, legitimately so, without understanding what they're investing in.

And so I want I want us that's my final comment.

We need to be real clear.

What are we doing?

Why are we doing it?

So make sure the community understands that, and then we can start talking about how we get the money for it.

Okay, sorry, Mr.

Uh, so I mean, what you're saying is hitting home, right?

Because yeah, we're we're like I said, the human temptation is talk about money because you know you don't want to waste your time on something, spend your time on not waste, but spend your time on something if you don't know it, you can do it, you need money to do things.

Um, but you're right.

Uh you know, we've been thinking about this a while.

The public, you know, just had eyes on this report just recently.

Um are you suggesting that maybe we like if we do a work session or what have you next month, we just specifically zone in on what we want to do first and talk about that and kind of do let the public see that first, and then we do like another work session.

I'm just thinking out loud, like what are you thinking?

You know, I'm kind of a big believer in like you identify the need you have, you identify what it needs to happen, and then you figure out how you're gonna deal with that, right?

Like, I mean, I've throughout my career that's the same sort of thing.

If I want to move in a new direction with something, I identify what it is, I explain it to people, then I try and find the funding source after that.

The funding source is necessary to make it happen, but what's the essential is that I understand why I'm doing it and I can explain it to somebody else before I invest in that.

And so, you know, no, I'm not saying the funding is not important, the funding is essential, and sustainably is the key to this whole thing.

And I'm not saying that any of the conversation about the money was wrong, but I don't want it to be a conversation about money first.

I want everyone to understand what it is we're doing and why, and then we can talk about how we're gonna fund it because the community is gonna say, okay, that's important, let's do that.

Let's figure out how to spend, let's find the million dollars.

We're gonna tax ourselves in some way.

And we people out there have great ideas.

We might find someone we didn't even think of, but I think that's the most important piece.

Like go about it the wrong direction, and this one's not gonna go anywhere.

Interesting.

Uh so at this point, um, I will work with Sarah uh to get a work session or however we come up with uh the wording for this.

Uh I've wrote down a couple ideas from what I've heard assembly members talk about on what we need to get accomplished.

Uh a little very large part about this one for me will be relaxing the rules to allow for robust input because we need to get input on this.

Uh, this is a large section that we didn't talk about as much.

Um, but we want to hear from the community what they want us to do as well.

We want to hear from the community how they do want to invest into it.

So I will work with Sarah.

We'll find some time and I'll set a meeting.

Thank you.

Uh, do we have anything else in discussion, direction decision on the next steps of child care and the future of it in Sitka?

Uh great.

That would bring us to persons to be heard.

This is public participation for any item on or off tonight's agenda, not to exceed three minutes for any individual.

Annette Evans, I just want to say thank you to the sponsors, and then thank you to you all for your time that you dedicate to our community.

Um, I can talk all night about child care, but to our community in general.

Thank you so much for your volunteer time and your commitment and the energy it takes to do what you do.

So thank you.

Hello.

Assembly, thank you again.

I reiterate her words as well.

I'm Margaret Galennan, and um currently teaching those dual enrollment classes at Sitka High that was made reference to, so I put myself available to discuss that as well.

I had all kinds of things that I wanted to say, but I think it comes down to um it's it's gonna be a lengthy process, and I'm thankful that the community is going to be able to be a part of that process.

Um that um was clear to me is that several of you are definitely in favor of the model two, the option two, and yet I would encourage you to take a serious look at option three.

It's a blended model.

It looks at not only the operating grants, but the workforce incentives.

I think if you're looking at um some sort of staggered employment based on how many years experience they have, the credits that they have, etc.

And there is nothing in option two that really allows for um people in the field to actually get advancement.

Um there's a whole chart in here on page 18 that goes through how that can be.

So I would encourage you to look at that.

Um else was really important.

I think also to encourage, I don't want to lose track of the employers that are out there, the other business that are here.

There was a time when search held a child care center uh for at least 30 years or more from my time in being here.

And um I I would encourage businesses to take a serious look at their budgets and what they can do, even if it's a small number of them employees.

It's an it would be a nice benefit to offer.

Um, and without any more deliberation or taking up all of your times, I look forward to the input that we have, and I want to thank you, Tim, for your comments about the investment.

As an early childhood um professional for close to 50 years.

I can tell you that the research is clear that the first five years of a child's life is the most important.

You think of the first year and then the first three years, but it it is evidence that those first five years we need to be invested in, and we need the best.

We deserve the best that we can get here in Sitka.

So thank you for your time and energy on this.

It's been a long time coming.

Anyone else under persons to be heard?

Anything on or off the agenda.

Uh seeing none, that'll bring us to reports.

Uh quick and easy report for myself.

Uh had the opportunity to meet with a representative from Alaska Airlines.

I think that was yesterday.

Um, just kind of a social greeting.

Um, just coming in saying hi, making sure everything was going okay.

Uh, the good news is uh Alaska Airlines is preparing itself for higher fuel prices, but that does not mean at this point a reduction in service to Sitka.

Um they've committed to doing everything they can to continue flying into Sitka even through the the fall season when uh fuel is uh estimated to uh skyrocket from where it is now.

So I think it was all good news and just furthered our our relationship with Alaska Airlines as our air and cargo carrier here in Sitka.

John Thank you, Mayor.

Another uh quick report.

Uh meant uh Melissa already mentioned it in her quarterly report, but I'd like to reiterate it.

We just got the news today that uh Senator Murkowski submitted her uh CDS uh requests, uh specifically ours for the Marine Service Center Seawall and Crane replacement.

That was something we had um at the time funded through a I think it was called Ray's grant at the time.

Um cost escalation reasons.

We couldn't uh we couldn't get that project across the finish line, returned to the grant funding, and we've since um asked for this request.

She has uh I will say approved that with air quotes.

It's in it's in her list uh and it has been submitted to the appropriations committee for uh for consideration.

So we'll be standing by for news there.

Rachel underneath report.

Uh we've had two dismissals of court cases come in since our last meeting.

Uh one is the Maggie case that's won JU25648 CI.

The party stipulated to a joint um dismissal request, and that came through from the judge this morning, so that was dismissed with prejudice.

File is closed.

Um, I don't get to say that too often, so that's exciting.

Um, and then also in Austin Cranford versus CBS et al.

That's a federal court case, uh kind of an unwieldy number.

One colon 25-CV-010-SLG.

CBS's motion to dismiss the current complaint was granted, uh, but the court did give the plaintiff 28 days um leave to attempt to amend that complaint.

Great, thank you.

Uh liaison representatives.

Katie uh from the Planning Commission.

Um the planning commission and the tourism commission are still attempting to have a work session scheduled about cruise ship dock ordinance.

Um that was aiming for end of the month, early June TBD.

If that will be postponed, there's some capacity issues in the department right now.

Um, but that is on on the list to happen soon.

And then they also approved the zoning text change to uh Gary Paxton Industrial Park.

And so that will come in front of the assembly.

Um and it's very marine business focused.

Um they removed all marijuana uses from the table and um had a question in there about um petroleum refining, which is going to be allowed as a conditional use.

There's a community uh that recycles waste oil.

So um that will be coming in front of the assembly.

JJ.

Ports and Harbors Commission uh is meeting tomorrow night.

It is their last uh before they break for the summer.

So if anyone has any public comments they really just need to share with that commission, tomorrow evening is your last chance until September.

Um the agenda is gonna talk about some um opportunities for for increased revenues.

Um they I told them at the last meeting that you know the assembly declined their um this recommendation of a 3% rate increase with the you know promise to look for additional funds.

Um so they understand that but are still going to look for those additional funds.

Tim.

Thank you.

Yeah, sustainability met.

Um they meet right at the beginning of the month, and they had just reported to us, so it was uh, you know, they had they've been working really hard.

They the script, somebody else scress, yes.

Um I always mess that acronym up.

Um activity is in underway, and I think that's gonna be very powerful.

I will again encourage the community to take a look at all the information that that that the group has put together.

All that is well laid out, easy to access.

Fascinating.

I mean, I had no idea we threw away so many textiles, for example.

I mean, I was stunned that that was like 18% of our waste stream.

So, you know, I think those are all powerful pieces of information that people can use, and I they've they're kind of looking at some ways in which they can help the community understand how they can access this more in a you know on a daily basis or a little at a time sort of thing.

Because I think a lot of people think this is a massive problem.

Sustainability is a huge problem with big big solutions, and and I think a lot of it happens at the individual level, and that's what that group seems to be working towards.

So great group.

Any other liaison reports?

Sarah Clerk's report.

No report.

Thank you.

Any other reports this evening uh please.

Um biking and transportation.

Uh it's summer.

We have a lot more tourists in town.

Uh we have a lot more traffic happening, and I want to uh just reference the the accident that happened.

Um an individual in our community was uh severely injured, um, several broken bones uh and and almost died, right?

Like ended up on the roof of a vehicle and was observed by an entire fifth grade class in a school bus.

So really want to just reiterate to folks to please um slow down.

I know it takes longer to get places.

I was stuck behind the DOT truck that was painting today, so please factor that into your transportation um plans and let's all just keep uh a good eye out for each other.

JJ.

I was able to go to that Scress community meeting uh last night here in this room, and just some appreciation for the sustainability commission who put that on along with Brie and the electric department and um the uh technical uh assistance individuals that came up as fulfillment of that grant that we have to help us understand the ins and outs and answer uh you know community questions about you know details far beyond um what you know good diagrams we have in in all of their documentation.

I think it was a very successful workshop, and we'll continue to um to seek community input um when looking at that future of of energy uh use in sitca thank you.

Uh that'll bring us to our executive session tonight I move to enter into executive session to discuss matters that may tend to prejudice the reputation and character of municipal administrator candidates Jenny Elber and Stephen Dahl and to identify a path forward in the municipal administrator recruitment pursuant to the statutory exception for subjects that may tend to prejudice the reputation and character of an individual.

I further move to invite assistant municipal administrator Joshua Branth over to participate in the in the executive session and to exclude municipal administrator John to exclude the municipal administrator and municipal attorney.

Second let's move and seconded to go into executive session for the assembly's uh information.

Both of those uh individuals had an opportunity to object to a executive session and none was received.

Uh is there any public comment on entering executive session?

Sarah.

All right, on the motion to go into executive session, Ms.

Riley.

Yes, Mayor Eisenbais?

Yes, Ms.

Carlson.

Yes.

Mr.

Mosher?

Yes.

Mr.

Pike.

Yes.

Mr.

Christensen?

Yes.

Mr.

Staline.

Yes.

Motion passes 7-0 and we'll be meeting in room four.

Thank you.

Assembly, please take a break on your way in the motion to reconvene.

So moved.

Second.

All those in favor say aye.

Aye.

Aye.

Uh we are reconvened as the assembly in regular session.

Uh, we met in executive session to talk about our municipal candidates.

Uh, we identified some paths forward in the recruitment process, and we'll continue to work hard on our citizens' behalf to fill our municipal administrator position.

Uh that will bring us to adjournment.

Motion to adjourn.

All those in favor say aye.

Aye.

Any opposed?

Thank you.

Assembly, we are adjourned.