Valdez City Council Regular Meeting – May 6, 2026

The Valdez City Council held a regular meeting on May 6, 2026, at 7:00 PM in Council Chambers. The meeting covered approval of minutes, public comment, a consent agenda item for executive session, certification of municipal election results, beautification grant approvals, first readings of three ordinances (public accommodation tax, subdivisions code, and Planning and Zoning Commission changes), three resolutions (property tax rate, harbor fees, budget amendment), and reports. All members were present except Mayor Fleming (excused). Councilmember Lally participated online but left during the ordinances.

Consent Calendar

• Executive Session Approval: Unanimously approved (6-0-1 with Mayor Fleming absent) to enter executive session to discuss implications for city revenues and litigation strategy regarding Trans Alaska Pipeline System ad valorem tax issues. The executive session was held later in the meeting and covered only that topic.

Public Comments & Testimony

• Head Start Update: Sonia Ash Silanov, Head Start Center supervisor, reported the new center at the Royal Center will open soon after a delay for licensing; it has 32 slots for children 19 months to 5 years, and currently has 12 students waitlisted. The program is year-round, 8:30 AM to 3:00 PM. She encouraged enrollment and noted staffing needs.
• Ordinance 26-03 (Public Accommodation Tax) – Public Hearing: Multiple business owners and residents spoke in strong opposition to extending the accommodation tax to RV parks and campgrounds.
  • Jeff Sachs (local business owner) urged the council not to tax businesses, arguing the city has a $72 million budget for 3,100 people and does not need more revenue; he warned it would drive tourists away.
  • Mary Barrett (manager of Eagles Rest) opposed the tax unless city facilities (harbor, Allison Point, campgrounds) are also included; she noted increased boondocking and damage at Middle Creek.
  • Rick Bull (local business owner) stated he supports taxation when necessary but believed this tax is unnecessary and would hurt tourism and local businesses.
  • Everett Bartlett (China RV Park) argued the city has a three-month window for tourism and that new taxes create a chain reaction of higher costs; he noted his land valuation disparity and said the city should focus on attracting visitors, not taxing them.
  • Judy Bartlett (China RV Park) said a 6% tax would increase monthly rates by $60, which she cannot pass on to customers, many of whom are Alaska retirees; she asked council to consider the impact on their own families if a 6% tax were imposed on them.
  • Additional public comments during the amendment stage reiterated opposition, including that RV parks already pay property taxes, water/sewer fees, and marketing costs; that RVers bring their own beds; and that city-owned facilities with beds (harbor, cruise ships) should also be taxed if equity is the goal.

Discussion Items

• Election Certification: The council certified the May 5, 2026 regular municipal election results. City Clerk reported 422 ballots cast out of 3,103 registered voters (13.6% turnout). Elected: Lester Green and James Devons (three-year council terms), Shannon Stitz (two-year term filling a vacancy), and Ryan Vincent and Carrie Wade (school board). The results were approved 6-0-1.
• Beautification Grants:
  • Captain Joe’s Gas: Approved a $12,500 beautification matching grant. Councilmember Whitty asked about businesses that received prior funding but did not complete projects; staff explained the program is reimbursement-based and the deadline had passed, so they reapplied. The number of grants available depends on annual funding (target $250,000 reserve).
  • Valdez Brewing: Approved a $12,050 beautification matching grant. Councilmember Whitty noted the application lacked detail compared to Captain Joe’s; the motion passed without further opposition.
• Ordinance 26-03 – Public Accommodation Tax (First Reading): The ordinance would amend Chapter 3.24 to include RV parks and campgrounds in the definition of public accommodation, subjecting them to the existing 6% tax. After extensive public testimony and council debate, Councilmember Devons moved to amend the ordinance by striking “recreational vehicle park or campground” from the definitions and deleting the effective date section for those types. The amendment passed 4-2 (Councilmembers Love and Foster opposed). The main ordinance as amended passed 6-0-1. The City Clerk noted the ordinance will return for a second first reading at the next meeting due to the major amendment.
• Ordinance 26-04 – Subdivisions Code (Title 16) (First Reading): The ordinance repeals and reenacts Title 16. Discussion centered on snow storage provisions—staff recommended that new subdivisions deeding snow storage lots to the city, while the Planning and Zoning Commission recommended using “dedicated” language for flexibility. Council accepted staff’s recommendation. The ordinance passed 5-0-2 (Councilmember Lally left, Mayor Fleming absent). It will return for a second first reading at the next meeting due to amendments.
• Ordinance 26-05 – Planning and Zoning Commission Code (Chapter 2.52) (First Reading): The ordinance amends the code to align with the new subdivision authority for the Community Development Director. Councilmember Devons successfully moved to add “for staggered three-year terms” to the commission membership description, which was added. The main motion as amended passed 5-0-2.
• Resolution 26-28 – 2026 Real Property Tax Rate: Establishes the mill rate for municipal and school purposes. Councilmember Foster noted that $8.4 million in over-cap revenue will go to scheduled debt payments ($6.5M) and GO 22 (the sewer force main project, $1.9M). Passed 5-0-2.
• Resolution 26-29 – Harbor Rates and Fees: Updates rates for harbor facilities and repeals prior resolution. Council discussed projected additional revenue of $138,000 annually with the new rates, which include an Anchorage CPI+1% adjustment. Councilmember Foster noted a typo (“stand” should be “Standard Stevens”). Passed 5-0-2.
• Resolution 26-30 – Budget Amendment for Fire/EMS: Transfers $23,000 from the Budget Variance Reserve to the Fire/EMS Department for professional fees and services. The funds cover a contractor’s extra scope of work to obtain a Medicare supplemental reimbursement of $155,000. Passed 5-0-2.

Key Outcomes

• Executive Session: Approved to discuss TAPS ad valorem tax litigation strategy with counsel.
• Election Certified: Results of May 5, 2026 election officially accepted.
• Beautification Grants: Captain Joe’s Gas ($12,500) and Valdez Brewing ($12,050) approved.
• Ordinance 26-03: Amended to exclude RV parks and campgrounds from the public accommodation tax; passed first reading.
• Ordinance 26-04: Subdivisions code updated; passed first reading with snow storage deeded to city.
• Ordinance 26-05: Planning and Zoning Commission code amended to include staggered three-year terms; passed first reading.
• Resolutions: All three resolutions (tax rate, harbor fees, budget amendment) passed.
• Next Steps: Both amended ordinances (26-03 and 26-04) will be brought back for a second first reading at the next regular meeting on May 26, 2026, when newly elected council members will be sworn in. The Board of Equalization meets May 14-15. The City Clerk’s office will attend the International Association of Municipal Clerks Conference during the week of May 17-21.
• Meeting Adjourned: At 8:54 PM after returning from executive session.