City and Borough of Sitka Assembly Regular Meeting – October 27, 2026

The Sitka Assembly convened on Tuesday, October 27, 2026, at 6:00 PM in the Assembly Chambers. The meeting covered ceremonial matters, quarterly departmental reports, a proposed sales tax increase for child care support, a liquor license protest, and board appointments. The meeting adjourned at approximately 8:30 PM.

Consent Calendar

• Approved the minutes of the October 13 Assembly meeting.
• Approved liquor license renewals for Baranof Lodge, LLC dba 907 Lounge (Beverage Dispensary Tourism with Restaurant Endorsement) and Soe, LLC dba Asian Palace (Restaurant or Eating Place).
• Approved renewal of a Standard Marijuana Cultivation Facility License for Jeremy J. Erickson dba Vern’s Wicked Weed.
• All consent items passed 7-0.

Public Comments & Testimony

Child Care Sales Tax (ORD 26-27):

• Valerie Nelson (71-year resident, former assembly member) urged the assembly to oppose the tax, stating residents are struggling and the tax burden will trickle down. She noted her property taxes increased $2,500 and cited a technical error in the ordinance’s effective date reference.
• Skylene Patani (new resident) thanked the assembly and expressed need for child care, supporting the initiative.
• Loretta Marcello voiced full support for the ordinance, arguing private solutions have failed and public investment is needed. She described personal challenges with child care access and stated the tax is a smaller financial hit than lost income.
• Lauren Wilde (parent, early childhood coalition member) supported the tax but suggested changing the ordinance language from “child care assistance grants” to “stabilization and sustainability of child care services” to be clearer. She presented alarming enrollment declines: 81 kindergartners in 2022 vs. 56 in 2026, and 106 graduates 20 years ago vs. projected 50% decline.
• Robin Sherman expressed concern that the sales tax disproportionately burdens young people, noting that senior exemptions shift the load. She urged exploring other funding mechanisms.
• Joel (board president, Betty Elias Early Learning Center) thanked the assembly and supported the plan’s distribution, but worried voters may not approve the tax because child care affects only a short life phase. He encouraged parallel paths.
• Annette Evans (director, Betty Elias Early Learning Center) presented budget data showing that without municipal support, infant care tuition would need to rise 87.2% to $3,070/month. She urged the assembly to act regardless of perceived voter approval.

Liquor License Protest (Little Tokyo):

• Christine Harrington (CPA for the applicant) requested the assembly not protest, explaining the business moved during COVID-19 lockdowns without following AMCO procedures. She asked for tentative support while they work to rectify the violation.

Tourism Commission Appointments:

• Lorinda Marcello voiced support for Susan Padilla and Richard Cole, citing Padilla’s long-range vision and Cole’s leadership reputation.

Discussion Items

Child Care Sales Tax Ordinance (ORD 26-27):

• Sponsors (Tor, Katie, Kevin) introduced the ordinance calling for a February 2, 2027 special election on a 0.5% seasonal sales tax increase (April–September) to fund child care stabilization, workforce incentives, family scholarships, and CTE pathways. They emphasized extensive public engagement and that the tax is placed before voters.
• Assembly debate included concerns about regressive impact on young families, alternative funding (e.g., removing senior sales tax exemption, lifting the cruise ship tax cap), and the need for stable revenue. Deputy Mayor Carlson expressed concern about the burden on young people but supported sending the question to voters. Assemblymember Blankenship worried the tax adds to resident expenses and suggested exploring public-private partnerships and other revenue first. Assemblymember Windsor preferred a 4/7 split (4% winter, 7% summer) but was told it would complicate finance. Assemblymember Riley acknowledged the regressive nature but voted to support to get community input.
• The ordinance passed first reading 6-1 (Windsor opposed). Second reading set for November 10, 2026. The special election will cost $18,000–$20,000.

Protest of Little Tokyo Liquor License:

• Staff recommended protest because the business is no longer operating at its licensed premises (315 Lincoln St, Ste 112) and has not filed a transfer. The assembly discussed the legal basis (Alaska Administrative Code 3 AAC 305.110) and noted the license is location-specific. The motion to protest and forward to the Alcohol Beverage Control Board passed 6-0.

Tourism Commission Appointments:

• Five applicants were considered for two three-year terms. Jeremy Plank (incumbent) and Susan Padilla were appointed after voting rounds. Plank received 7 votes, Padilla 6 votes. Assemblymembers emphasized balance and community representation.

Department Quarterly Reports:

• Fire Chief Brian McLaughlin reported steady operational tempo, EMS quality, staffing shortages (vacant assistant chief and engineer), 15 overtime shifts per week, and efforts on training, safety systems, and policy. Budget is underspent on wages but overspent on overtime.
• Electric Utility Director Ron Vinson reported completion of seven capital projects, progress on 28 others, staffing vacancies narrowed to two, FERC license progress, and reliability upgrades (switchyard, submarine cable, polymer insulators). Budget 35% expended due to front-loaded costs.
• Library Director Jessica Uraimia reported 13,038 physical checkouts, 14,293 Wi-Fi sessions (impacted by access point issues), and 393 study/meeting room reservations in July–September. Maintenance completed (windows cleaned, carpets cleaned) and no roof leaks. Transom window project pending.

Key Outcomes

• Consent Agenda approved 7-0.
• Tourism Commission Appointments: Susan Padilla and Jeremy Plank appointed (6 and 7 votes respectively).
• ORD 26-27 (Child Care Sales Tax) passed first reading 6-1; second reading November 10, 2026; special election February 2, 2027.
• Protest of Little Tokyo Liquor License approved 6-0; forwarded to AMCO.
• Reports received: School board update (enrollment count ongoing, school optimization discussions); BDO audit plan (field work underway, goal to issue in January); Administrator attended ICMA conference; Attorney noted upcoming vacation and Supreme Court argument; Liaison reports included taxi/tour code revisions, police vehicle needs ($100,000 for two vehicles), and feasibility study request for new police facility.
• Next meetings: Government-to-government dinner November 9, regular meeting November 10, strategic plan retreat November 14.