Valdez City Council Regular Meeting & Budget Adoption - December 2, 2025

The Valdez City Council held its regular meeting on December 2, 2025, at 7:00 PM in Council Chambers. All council members were present except Councilmember Raleigh (absent and excused). The meeting included approval of minutes, a consent agenda, new business items, public testimony on a proposed radio tower purchase, adoption of ordinances and resolutions (including the 2026 budget), and a subsequent executive session. Key actions included the adoption of a $73.03 million budget for 2026, approval of a $3.6 million water well contract, and several budget amendments.

Consent Calendar

• Proclamation: December 4, 2025, declared as the 43rd Annual Community Christmas Tree Lighting Ceremony (5:30 PM).
• Executive Session: Approved to discuss litigation strategy for Larry Ables lawsuit, TAPS ad valorem tax issues, escaped property legal issues, and oil spill prevention property assessment.
• Resolution #25-60: Authorized the Valdez Fire Department to submit a 2026 Volunteer Fire Assistance Grant application (10% in-kind match).
• Resolution #25-61: Amended the 2025 budget by accepting $2,205 in unbudgeted revenue and transferring $3,705 to the Animal Medical Reserve Fund.
• Resolution #25-62: Amended the 2025 budget by accepting $11,870 in Book Basket Auction proceeds and transferring same to the Book Basket Auction and Donation Reserve Account.
• Resolution #25-63: Established the 2026 Tax Calendar.
• Note: Resolution #25-60 was pulled from the consent agenda and approved separately under New Business; all other consent items passed unanimously (6-0-1, Raleigh absent).

Public Comments & Testimony

• Lori Frox (Owner, KVAK Radio): Provided a 30-year history of KVAK, stating that the station is overbuilt for the community, sponsorships are down, and she is considering selling or shutting down. She proposed the city purchase the radio tower (estimated $210,000) to allow KCHU to relocate and preserve AM emergency broadcasting. She noted that if the AM signal is surrendered, the FCC will not relicense it, and that a voluntary transfer of license to a non-commercial entity is possible. She also noted that KCHU had received a $50,000 city grant for a new FM transmitter while KVAK did not receive similar support.
• Jimmy Devons (KCHU Public Radio Representative): Expressed appreciation for KVAK’s services but argued that the voluntary transfer of license is highly unlikely (less than three dozen cases in FCC history). He stated that KCHU cannot use most of KVAK’s equipment (FM antenna, transmitters) and would need to spend $80,000–$100,000 to modify the tower for their use. He urged the council not to let the proposal affect the $50,000 CSO grant for KCHU, which is needed as matching funds for other grants. He also noted that KCHU has already collected $50,000 from other sources.
• Jerry Devons (Private Citizen): Supported KCHU’s grant, stating that the city should not enter the radio business and that KCHU’s plan to restore AM and improve FM is achievable. He characterized the tower purchase proposal as a late addition that should not delay the budget decision.
• James Smith (Private Citizen): Asked the council to keep the KCHU grant open to preserve matching fund opportunities.
• Additional Speaker (Jimmy Devons, continued): Clarified that KCHU’s $50,000 is for a new tower, not equipment from KVAK, and that the tower proposal includes a root radial system (contrary to Lori Frox’s claim). He stated that KCHU prefers new construction for grantor confidence but that used equipment is not off the table.

Discussion Items

• New Water Well #5 Pumping Station (Contract with SD Construction LLC, $3,607,060): Approved unanimously. The well adds capacity and redundancy for the south side of town, especially during high-demand fish processing seasons.
• Playground Equipment for New Childcare Center (Exerplay, Inc., $156,357.25): Approved unanimously. Equipment selection was made in consultation with the childcare provider (Chugachmiut), but the process was abbreviated due to expiring funds.
• Volunteer Fire Assistance Grant (Resolution #25-60): Approved unanimously. The 10% match is in-kind (existing training budgets), not new cash.
• Proposal to Purchase KVAK Radio Tower (Discussion Only): Council members expressed reluctance to have the city purchase the tower ($210,000) or enter the radio business. They encouraged KVAK and KCHU to negotiate directly and noted that the $50,000 CSO grant for KCHU should be handled separately. No action was taken; a future agenda item would require a formal proposal.
• Ordinance #25-15 (Repeal Economic Diversification Commission): Adopted on second reading, removing Chapter 2.60 from the Valdez Municipal Code.
• Resolution #25-56 (2026 Budget Adoption): Approved after extensive discussion. The $73.03 million budget includes $43.7 million for operations, $12.7 million for education, $7.9 million in reserve contributions, $6.5 million for debt service, $1.3 million for community support, and $867,150 to the permanent fund. Revenues are $60.25 million, with $48 million from oil and gas taxes and $7.6 million from non-oil and gas property taxes. The median resident tax burden is approximately $4,700/year (4.8% of gross median income), or $171–$175 per person per month for city services. The city manager found $1.7 million in savings through departmental efficiencies.
• Resolution #25-57 (Lease Assignment from Harris Sand & Gravel to Knik Construction): Approved unanimously.
• Resolution #25-58 (Gravel Lease for Knik Construction, 21.3 acres): Approved unanimously. The lease rate of $0.60/yard (last set in 1992) was discussed; staff recommended keeping it, noting that the city is a major gravel purchaser and that low rates help control construction costs. The lease term (5 years vs. 20 years requested by Knik) was debated; the resolution authorizes the city manager to negotiate terms, with staff recommending 5 years per current policy. A 20-year term could be negotiated but would require council approval of the final lease.
• Resolution #25-59 (Budget Amendment for School Water Piping Reimbursement): Approved unanimously. Accepts $415,335.50 from Valdez City Schools as partial reimbursement for the Valdez High School and Herman Hutchens Elementary water piping projects (completed in 2021). The city has received the first half; the second half is uncertain due to state Department of Education accounting issues.

Key Outcomes

• Consent Agenda Approved: All items except #25-60 passed unanimously (6-0-1).
• New Business Approved: Water well contract ($3,607,060), playground equipment ($156,357.25), and fire grant (authorization to apply) all passed unanimously (6-0-1).
• KVAK Tower Discussion: No action taken. Council directed KVAK and KCHU to continue negotiations and report back; the $50,000 CSO grant for KCHU remains in the budget but will require a separate resolution for release, similar to the $505,000 VCB contingency and $79,000 Avalanche Center funds.
• Ordinance #25-15 Adopted: Unanimous (6-0-1).
• Resolution #25-56 (2026 Budget) Adopted: Unanimous (6-0-1) with direction that certain funds (VCB, KCHU, Avalanche Center) will be released only upon council approval via specific resolutions.
• Resolutions #25-57, #25-58, #25-59 Adopted: All unanimous (6-0-1). For #25-58, the city manager will negotiate the lease term with Knik Construction, subject to council approval of the final lease.
• Reports: Quarterly financial summary (September 30, 2025), October 2025 monthly treasury report, and city manager written report were received and discussed.
• Executive Session: Approved to discuss litigation strategy and TAPS ad valorem tax issues; Councilmember Raleigh absent; the session was held after the regular meeting.