Sitka Assembly Regular Meeting - September 22, 2026

The City and Borough of Sitka Assembly met on September 22, 2026, at 6:00 PM in the Assembly Chambers. All seven members were present. The meeting included special reports from the Sitka School Board and Police Department, approval of consent agenda items, discussion and votes on several liquor license applications, adoption of an ordinance promoting Accessory Dwelling Units (ADUs), approval of supplemental appropriations for the Lincoln Street project, action on lease amendments with Shee Atika, Inc., a determination of the annual transfer to the Public Infrastructure Sinking Fund, and authorization to negotiate an employment contract with a new Municipal Administrator candidate.

Special Reports

• Sitka School Board President Phil Burdick reported on one-time state funding projections: $324,860 for energy relief, $1,092,063 for a one-time BSA increase (based on an average daily membership of 1,019 students), and $504,920 for a 10% transportation increase (down from FY26). He noted a current headcount of 1,029 students as of mid-September. State testing results rank Sitka #3 in English Language Arts, #5 in math, and #8 in science among Alaska districts. He invited the community to the new learning shelter dedication at Pacific High School on September 25.
• Police Chief Mike Hall provided a quarterly report. Recruiting efforts: one recruit at the academy with a projected graduation of November 6, one lateral officer starting around October 15, another lateral interview at month's end, and two in background checks for dispatch. Dispatch staffing: six of seven positions filled, with one expected return. Year-to-date, approximately 72 abandoned vehicles have been removed. Statistics for the quarter: 6,251 calls for service, 824 emergency 911 calls, 60 booked into jail, 44 arrests, 56 agency assists, 455 business security checks, 94 animal calls, 10 bear calls, 365 traffic stops, and 12 DUI arrests. National Night Out drew about 1,500 participants.

Consent Calendar

• Item A (minutes of September 8 and 10), Item B (supplemental appropriations for transfer station compactor repairs, first reading), and Item D (marijuana license renewal applications for AKO Farms and High Tide Cannabis) were approved on consent as part of a motion that passed 7-0.
• Items C, E, F, and G were pulled for separate discussion.

Public Comments & Testimony

• On Item F (competing new restaurant/eating place liquor licenses):
  • Sherri Blankenship (owner, Highliner Coffee Co.) expressed frustration that Harbor Mountain Brewing Company had incomplete paperwork at the August AMCO meeting and urged the assembly to make a recommendation based on rules, noting that 70% of Highliner's sales are food and that a license would allow employees to earn more tips without needing a second job.
  • Emerald Hagy (Assistant General Manager, Harbor Mountain Brewing Company) argued that the state explicitly looks to the local governing body to weigh in on competing applications, citing an earlier instance where abstention led to a name drawn from a coffee mug. She requested that the assembly exercise its obligation to provide context on the criteria and not simply forward both without comment.
  • Justin Peeler (owner, Highliner Coffee Co.) asked for action after a 10-month process and highlighted that Harbor Mountain was missing paperwork at the prior meeting.
• On Item G (new theater liquor license for Campfire Kitchen):
  • Cambria Goodwin (co-owner) clarified that the theater license would not significantly change operations; alcohol service in the theater is from a separate concession, controlled zones, and does not affect youth access. The license is vital for the Coliseum Theater's long-term sustainability.
  • Luke Bruckert (co-owner) reiterated that the license would allow dinner-and-a-movie options and provide a revenue stream for upgrades while maintaining youth access with chaperones.
• On Item L (ADU ordinance):
  • Darrell Windsor (Planning Commission Chair) supported the ordinance, noting that 14 years of restrictive rules had hindered ADU construction. He thanked sponsor Riley for advancing the revisions.
  • Garry White (Sitka Economic Development Association) noted CETA's early work on ADUs and that pre-approved plans from a Rasmussen Foundation grant could not proceed under old rules; he urged passage.

Discussion Items

• Item C – AlaskaEx Disaster Response Training Ordinance: Chief Hall explained the training is a federal program for tsunami/seismic response, occurring in Sitka in March 2027. A $12,096 travel grant was awarded. The ordinance passed 7-0 on first reading.
• Item E – Liquor License Renewals: Clerk Peterson noted no department objections to renewing licenses for Halibut Point Crab and Chowder and Our Town Catering. Deputy Mayor Carlson explained these renewals were pulled for transparency per earlier commitments. Approved 7-0.
• Item F – Competing New REPL Licenses: After extensive discussion, Ystad recused himself due to potential bias. A motion to postpone to October 13 failed 2-4-1 (with Ystad recused). The assembly then voted 6-0 (Ystad recused) to approve both applications (Highliner Coffee Co. and Harbor Mountain Brewing Company) and forward them to the Alcohol Beverage Control Board without objection. The assembly did not express a preference, relying on the staff recommendation.
• Item G – Theater Liquor License for Campfire Kitchen: Clerk Peterson noted the ABC Board had already approved the license, and the city's review period was due to timing. After public testimony, the assembly approved 7-0.
• Item H – Board Reappointments: Gail Roderick (Police and Fire Commission) and Adam Horton (Local Emergency Planning Committee) were reappointed 7-0.
• Item I – Solid Waste Code Amendment (Second Reading): Passed 7-0.
• Item J – Supplemental Appropriations for FY26 and FY27 (Second Reading): Passed 7-0.
• Item K – Lincoln Street Project Supplemental Appropriation (First Reading): Finance Director Brook Volschenk introduced the $4.5 million state CPV grant funding for surface treatments and engineering. Members expressed concern about not increasing utility rates for locals. Passed 7-0.
• Item L – ADU Ordinance (First Reading): Sponsor Riley outlined reductions from 14 to 8 restrictive requirements, allowance for short-term rentals for the first three years, and pre-approved plan options. Discussion covered height (25-foot limit, with conditional use for taller), parking (two off-street spots required, can seek variance), and setbacks (unchanged). Passed 7-0.
• Item M – Lease Amendment No. 2 with Shee Atika, Inc.: Planning Director Amy Ainslie explained the amendment permits beer and wine service at the Sheet'ka Salmon Tales site, requiring compliance with AMCO and zoning, increased insurance to $5 million, and operational safety policies. Mosher recused himself. Passed 6-0.
• Item N – Seasonal Tourism REPL for Shee Atika, Inc.: Clerk Peterson stated the tourism license is under a separate population cap and does not affect the three REPLs from the city's petition. Mosher recused. Passed 6-0.
• Item O – Annual Transfer to Public Infrastructure Sinking Fund: Administrator Leach recommended a $3 million transfer, leaving $3 million in the general fund for flexibility on large projects. Riley proposed using $300,000 for childcare, citing workforce needs and pending ballot measure. After debate, the assembly voted 7-0 for the $3 million transfer as recommended. Multiple members expressed support for finding childcare funding from other sources.
• Item P – Municipal Administrator Applicant Gerrie Cotter: The assembly entered executive session from 9:08 PM to 10:20 PM to discuss the applicant's reputation. Upon reconvening, a motion passed 7-0 to direct the Deputy Municipal Administrator to negotiate an employment contract with Cotter, to be brought back for final approval on October 13.

Key Outcomes

• Consent Agenda (A, B, D): Approved 7-0.
• Item C (AlaskaEx Training): Approved on first reading 7-0.
• Item E (Liquor Renewals): Approved 7-0.
• Item F (Competing REPLs): Motion to postpone failed 2-4-1; original motion to approve both applications passed 6-0 (Ystad recused).
• Item G (Campfire Kitchen Theater License): Approved 7-0.
• Item H (Reappointments): Approved 7-0.
• Item I (Solid Waste Code): Approved on second reading 7-0.
• Item J (Supplemental Appropriations): Approved on second reading 7-0.
• Item K (Lincoln Street Project): Approved on first reading 7-0.
• Item L (ADU Ordinance): Approved on first reading 7-0.
• Item M (Shee Atika Lease Amendment): Approved 6-0 (Mosher recused).
• Item N (Seasonal Tourism REPL): Approved 6-0 (Mosher recused).
• Item O (Infrastructure Sinking Fund Transfer): $3 million transfer approved 7-0; childcare funding to be addressed via separate appropriation.
• Item P (Municipal Administrator Recruitment): Directed Deputy Administrator to negotiate contract with Gerrie Cotter, to return for final vote on October 13. Approved 7-0.
• Adjournment: The meeting adjourned at 10:27 PM.