Public Meetings - Sitka, Alaska

This regular meeting of the Sitka City and Borough Assembly, held on March 25, 2025, at 6:00 PM in Assembly Chambers, covered a wide range of issues, including a special election for a cruise visitor limit, a controversial bid for the Gary Paxton Industrial Park (GPIP) haul out, adoption of the 2025 Parks and Recreation fee schedule, and support for a climate initiative grant. The meeting extended past 10:30 PM, and the assembly voted not to extend further, leading to the adjournment with several agenda items left unconsidered. Consent Calendar - Liquor License Renewal (Item A): Unanimous approval (7-0) to forward a liquor license renewal application for Allen Marine Tours, Inc. at Lot 6, Finn Island to the Alcohol Beverage Control Board. - Board/Commission Appointments (Item B): Unanimous approval (7-0) of appointments: Steve Johnson to the Historic Preservation Commission, Sandra Fontaine to the Library Commission, and Tamy Stevenson to the Port and Harbors Commission, each for three-year terms. Public Comments & Testimony - Healthcare Concerns: Valerie Nelson, a 70-year resident, shared that she was denied care at the local hospital after voting against the 2018/2019 takeover. She stated she was told she was denied because she is not Native and because she voted against the takeover. Claudia Losses echoed similar concerns, noting that some services are only available to beneficiaries. - Childcare Crisis: A representative from Betty Eliason Childcare Center urged the assembly to prioritize solutions for the childcare crisis, citing struggles to recruit and retain staff due to low wages and benefits, leading to temporary closures and reduced access. A former board member emphasized that childcare is essential to the community and economy. - Haul Out Operation (Item D): Numerous public comments were made during the discussion on the GPIP haul out. Most commenters, including representatives of the Alaska Longline Fishermen's Association, Sitka Community Boatyard, and many local fishermen, opposed the HighMark bid, citing high rates, lack of competitive bidding, and a preference for a city-run yard. A few expressed conditional support or provided personal anecdotes, such as one fisherman ready to haul out and another who provided detailed cost comparisons. - Parks and Recreation Fees (Item F): Representatives from Sitka Little League and other youth sports organizations opposed the proposed hourly field fee structure, stating it would drastically increase their costs, potentially by $6,000 or more, and could force them to raise registration fees. They requested a delay or adjustments. Sitka U Soccer supported the hourly structure, noting it would prevent field-hoarding and promote equitable access. Discussion Items - Special Election for Cruise Visitation Limit (Item C): The assembly approved Ordinance 2025-05 on second and final reading, setting a special election for May 28, 2025, to ask voters whether to limit cruise visitation in Sitka and add Title 25 "Tourism" to the municipal code. The ordinance incorporated a revision to count scheduled passengers ashore, rather than lower berth capacity. Assembly member Kevin Mosher noted that the ordinance was a required formality given the certified petition. - GPIP Haul Out and Shipyard Operations (Item D): The assembly discussed the bid from HighMark Marine Fabrication to operate the haul out. Key points included: HighMark's bid was the only response to the ITB; the GPIP board recommended accepting the bid but excluding the Northline Building warehouse, while the assembly ultimately voted to accept the bid as presented, including the building. Concerns about rates ($27-$100 per foot for haul out, $1.80 per foot for storage), lack of competitiveness, and the city's analysis of operation costs were raised. Staff clarified that a city-run operation would likely be more expensive due to employee benefits (e.g., 22% PERS contributions) and union obligations. HighMark representatives stated they were open to negotiation and annual reviews. The motion to accept the bid as presented passed 6-1, with Assembly member Scott Saline dissenting. The next step is final negotiation of the operating agreement, which will return to the assembly for final approval. - 2025 Parks and Recreation Fee Schedule (Item F): The proposed fee schedule introduced new membership options, changed outdoor field fees from per-player to hourly rates, and increased the Tom Young Cabin rate (though staff clarified the current rate is $50/night, not $40 as in the memo). Public testimony from Little League highlighted a potential cost increase from $1,025 to around $8,000 due to the hourly rate. The assembly voted 6-0 to adopt the fee schedule but amended it to delay implementation of field fees until August 1, 2025, to give organizations time to adjust. - ALFA Climate Smart Grant (Item G): The assembly considered a letter of support and in-kind staff support for the Alaska Longline Fishermen's Association (ALFA) Climate Smart Community Initiative Grant application. The grant requires municipal support, but not direct funding. The motion passed 6-1, with Kevin Mosher dissenting, citing concerns about staff time and the need for a more deliberate plan. The motion included a cap of 5 hours per month for staff involvement. Key Outcomes - Ordinance 2025-05 Approved (6-0): Set special election for May 28, 2025, on cruise visitor limit initiative. - HighMark Bid Accepted (6-1): Assembly accepted the HighMark Marine bid as presented. The final operating agreement will be negotiated and return to the assembly for approval. - 2025 Parks and Recreation Fee Schedule Adopted (6-0): Amended to delay field fee implementation until August 1, 2025. - Letter of Support for ALFA Grant Approved (6-1): The city will provide a letter and in-kind staff support up to 5 hours per month. - Adjournment: The assembly voted not to extend the meeting past 10:30 PM, leaving several agenda items unaddressed, including the appeal for the subdivision at 305 Islander Drive (Item E, previously pulled) and the CPV Tax Fund balance discussion (Item H).

On March 18, 2025, the City and Borough of Sitka Assembly held a special meeting to consider Ordinance 2025-05, which sets a special election on May 28, 2025, for voters to decide whether to limit cruise visitation and add Title 25 "Tourism" to the Sitka General Code. The ordinance originated from a citizens' initiative with sufficient signatures, and the Assembly's role was legally required to advance it to a vote. Public Comments & Testimony - Claudia Less (President of Small Town Soul) spoke in support of the initiative but requested clarification that the proposed annual cap of 300,000 passengers and daily cap of 4,500 passengers apply to scheduled passengers ashore. She urged the Assembly to consider moving the election date from May 28 (which has a high number of cruise passengers scheduled) to May 15 or May 22 to allow the cruise industry more time to adapt if the measure passes. She also noted the Assembly could avoid a special election by adopting the initiative directly. Discussion Items - Ordinance 2025-05 (First Reading): Assembly Member Kevin Mosher explained that the ordinance is a procedural requirement—since the signatures were verified, the Assembly must approve the ordinance to place the question on the ballot. He stated he would vote yes. Other members voiced no objections, and the vote proceeded. Key Outcomes - Vote: The Assembly passed Ordinance 2025-05 on first reading with a unanimous vote of 7-0 (Mayor Eisenbeisz, Members Christensen, Carlson, Mosher, Saline, and Ystad voted yes; Deputy Mayor Pike was absent). - Next Steps: The second reading is scheduled for Tuesday, March 25, 2025. If approved, the special election will be held on May 28, 2025, subject to voter approval of the initiative.

This special meeting of the Sitka City and Borough Assembly focused on the fiscal year 2026 budget, including the Capital Improvements Program (CIP), enterprise funds, internal service funds, and the general fund. Key discussions centered on asset management, project prioritization, rate increases, and deficit reduction. The assembly voted on several items, including removing a $30,000 animal shelter HVAC project from the CIP and adopting option one for balancing the general fund deficit. Consent Calendar - No consent calendar items were presented or voted on. Public Comments & Testimony - No members of the public testified during the two public comment periods. Discussion Items - FY2026 Capital Improvements Program (CIP): Electric Utility Director Ron Venson and Asset Manager Mark Seedy presented a consolidated, risk-scored capital plan covering over 600 projects across departments for a 10-year outlook (FY25–FY35). The tool allows sorting by risk score to prioritize high-risk projects. The plan feeds into rate models and long-term planning. Assembly members asked about project scoping (e.g., bundled projects like Senior Center rehabilitation, City Hall, and City-State Building), funding sources, and risk scoring methodology. A motion to remove the $30,000 Animal Shelter HVAC controls project (aimed at installing a standardized DDC system) passed 4–3 after debate about cost-effectiveness versus long-term integration goals. - FY2026 Enterprise, Internal Service, and Other Governmental Funds Budget: Municipal Administrator Melissa presented a high-level review of each fund, including revenue, operating expenses, debt service, capital projects, and working capital impacts. Key points included: Electric Fund: 2% rate increase, no new debt planned, inventory purchases for critical parts; Water and Wastewater Funds: 6% rate increases, investigation of utility lines under Lincoln Street, wastewater effluent disinfection system ($12M, funded with DEC loans); Solid Waste Fund: rate adjustments (2–4%), debate over $1.4M Granite Creek bridge replacement funded from solid waste (justified as access to solid waste facilities); Harbor Fund: 4% rate increase, no new capital projects; Airport Fund: negative working capital due to new terminal, seeking grants; Marine Service Center: healthy fund, two capital projects requested (alarm panel, egress doors). Internal service funds (IT, Central Garage, Building Maintenance) and other governmental funds (e.g., Permanent Fund, CPV tax, Visitor Enhancement, School Sales Tax) were also reviewed. The assembly discussed rate impacts on residents and the importance of growing working capital for future liabilities. - FY2026 Draft General Fund Budget: Melissa presented deficit reduction options after a $400,000 property tax revenue increase from updated valuations. Two options were considered: Option 1 included increasing Harrigan Centennial Hall rates 20%, increasing pool revenue by $75,000 via additional programming, reducing legal fees by $150,000, and not cutting the sister city visit ($15,000). Option 2 had more moderate changes. The assembly expressed support for Option 1, with comments on not cutting the sister city program and appreciation for Parks and Rec's analysis. A motion to adopt Option 1 passed 7–0. - Budget Schedule: Staff proposed delaying the first and second readings from April 8/22 to May due to uncertainties (insurance, school funding), but the assembly preferred to keep the original schedule, noting that budgets are living documents that can be amended. Key Outcomes - Motion to remove $30,000 Animal Shelter HVAC controls from FY2026 CIP: Passed 4–3 (Mayor Eisenbeisz, Christensen, Ystad, Saline in favor; Mosher, Carlson, Pike opposed). The project was eliminated from the capital plan; staff will explore alternative, lower-cost options. - Motion to adopt Option 1 for general fund deficit reductions: Passed 7–0. This includes: (1) Recognizing $400,000 in increased property tax revenue, (2) Funding commercial land use evaluation from visitor enhancement fund, (3) Increasing Harrigan Centennial Hall rates by 20%, (4) Increasing pool revenue by $75,000 (through additional temp wages and programming), (5) Reducing legal fees by $150,000, and (6) Keeping the $15,000 sister city commemorative visit. - Capital Improvements Program: No formal vote on the full CIP; it will be included in the omnibus budget ordinance. The assembly expressed interest in separating the CIP process from the budget in future years for earlier review. - Budget Timeline: The first reading of the FY2026 budget remains scheduled for April 8, 2025, with the second reading on April 22, 2025.

The Sitka City and Borough Assembly met on March 11, 2025, at 6:00 PM in Assembly Chambers. The meeting included special reports on climate adaptation planning for fisheries and departmental quarterly updates, reappointment of three commission members, a failed vote on a bulk water export agreement with Global Hydration LLC, and unanimous approval of the Sustainability Commission’s 2025-2026 goals and work plan. The assembly also received reports from the mayor, administrator, and clerk. Special Reports – Climate Adaptation Planning for Fisheries - Mauricia Skowiak (NOAA Fisheries, social scientist) presented a three-year project on climate adaptation for Sitka’s fishing economy, conducted in partnership with Cordova and Kodiak. The project includes a vulnerability assessment, visioning sessions, and a focus on seafood decarbonization. A new proposal for a one-year seafood decarbonization grant (capped at $100,000) was outlined, with project elements including energy audits, heat recovery, solar panels, and fuel flow meters. - The project team requested a letter of support from the assembly and patience for a couple of planning meetings over the grant year. Assembly members asked about including refrigerants, energy auditing the municipal freezer building, and the status of federal funding. The team confirmed the grant funds remain available and that the letter could follow the proposal deadline. - Linda (via Zoom) confirmed that Seafood Producers Cooperative (SPC) has been engaged and supports the pilot projects. Department Quarterly Reports - Human Resources (Josh Brantover, Director): HR department is fully staffed; working on a comprehensive personnel policy update, compensation study nearing completion, implementation of NeoGov HRIS, and a learning management system. Four bargaining units, three expiring June 30, 2025. Staffing at 87% of budgeted positions, with 24 open positions. Challenges in police and public safety dispatcher recruitment. - Information Technology (Grant Turner, Director): IT department fully staffed. Major projects: fiber optic network connecting city infrastructure, data center upgrades with new switches and UPS, migration to Windows 11 and cloud-based management. 180 help desk tickets resolved in the quarter; first-contact resolution rate at 68.33%. Budget on track. - Clerk’s Office (Sara Peterson, Municipal Clerk): Processing a citizen initiative petition (deadline March 14). 51 records requests processed. Harbors department records cleanup (25 boxes destroyed). Moving forward with work culture initiatives, cloud transition of document management system, and code codification updates. Budget at 65%. Board, Commission, Committee Appointments - The assembly unanimously (7-0) approved the reappointment of Crystal Duncan to the Health Needs and Human Services Commission (three-year term), Barbara Teepe to the Tree and Landscape Committee (three-year term), and appointment of Michelle Kavouras to the Police and Fire Commission (three-year term). Unfinished Business – Water Purchase Agreement (Item B) - Motion: Approve a purchase agreement for raw water in bulk for export between the City and Borough of Sitka and Global Hydration LLC, as recommended by the Gary Paxton Industrial Park Board. - Discussion: Gary White (Industrial Park Director) explained that the item was postponed from January to allow Arctic Blue Waters (existing contract holder) to exercise a first right of refusal for additional water. Arctic Blue failed to pay a $100,000 fee by February 27, 2025, and sent a letter requesting another postponement. Global Hydration did not attend the meeting. Assembly members expressed concerns: lack of information about Global Hydration’s plans, no contact from the company for months, potential conflict with Arctic Blue’s ongoing contract, and the risk of speculating on water rights. Several members stated they would vote no because of the unknowns and lack of engagement. - Vote: The motion failed 0-7 (all members present voted no). New Business – Sustainability Commission Goals (Item C) - Motion: Approve the Sustainability Commission 2025-2026 Goals and Work Plan. - Presentation: Chair Aurora Taylor and Vice Chair Katie Riley presented the commission’s four goals: (1) Support sustainable municipal operations (e.g., tracking greenhouse gas inventory, aligning with strategic plan); (2) Explore a regional approach to sustainability (collaboration with other communities); (3) Strategic management of solid waste (developing a charter and strategy ahead of the 2032 contract renewal); (4) Support and finalize the Sitka Community Renewable Energy Strategy (CRESS), with a five-month extension anticipated due to federal funding uncertainties. The commission noted that the goal of electrifying the municipal fleet is considered complete after adopting a procurement policy. Two commission vacancies remain. - Discussion: Assembly members praised the doable, operational focus of the goals. Deputy Mayor Pike suggested allowing high school students (age 16+) to serve on the commission, which would require an ordinance change. The idea was met with interest for further research. Assemblyman Saline mentioned potential for ocean-source heat pumps. The commission’s staff liaison, Bree Gable, was thanked for her work. - Vote: The motion passed unanimously (7-0). Reports - Mayor Eisenbeisz: Attended a Safeguard Sitka town hall; noted that Seoul (cruise line) did not attend. The information presented appeared accurate, focusing on the economic value of tourists and the difficulty of measuring it due to lack of a visitor sales tax. - Municipal Administrator John Leach: Announced travel to the Northwest Managers Conference; Sitka will host the conference next year. Reported on cruise ship MOU management: Norwegian Cruise Line canceled one 2026 call, moved another to a lower-traffic day, and the assembly granted two exemptions (August 16 and September 9, 2026) that will bring passenger counts to 7,102 and 7,500 respectively, slightly above the 7,000 target. Leach thanked Norwegian for flexibility. - Municipal Attorney Rachel Jones: Attended a town hall on the animal shelter code rewrite; work continues. - Liaison Representative (Tor): Reported on the animal shelter town hall; expect a new ordinance(s) by mid-summer. - Clerk Sara Peterson: Reminded of the budget meeting the following evening (March 12). Key Outcomes - Board appointments: Unanimous approval of three members (7-0). - Bulk water export agreement with Global Hydration LLC: Motion failed 0-7. - Sustainability Commission 2025-2026 Goals and Work Plan: Approved unanimously (7-0). - Next steps: The assembly will continue budget discussions at the March 12 meeting. The Sustainability Commission will proceed with its four goals. The administrator will follow up on cruise ship exemptions and the water contract situation.

The Sitka City and Borough Assembly held a special meeting on February 27, 2025, to discuss and provide direction on the FY2026 draft Administrator's Budget, with a primary focus on the General Fund. Municipal Administrator John Leach and Finance Director Melissa Haley presented the budget, which initially projected a $743,000 deficit. The presentation reviewed revenue sources (sales tax, property tax, transfers, etc.), expenditure trends, capital appropriations, and resource proposals. The assembly heard from department heads, debated specific line items, and passed several motions to reduce the deficit. Discussion Items - FY2026 General Fund Budget Overview: Melissa Haley detailed revenue projections (e.g., sales tax at $19.9M, slightly down from FY25), expenditure drivers (health insurance up 18%, vacancy rate assumed at 3%), and the deficit. Scenarios were discussed for loss of cruise tourism ($1.5M net impact) or federal funding ($1.2M net impact). - Resource Proposals: Assembly members considered proposals for vehicles, equipment, contract services, and new programs. Key discussions included: - Replacement of vehicle 458 (City Hall vehicle) and 455 (police cruiser). Assembly members debated the necessity, with the police chief explaining that vehicle 455 was due for replacement but the damaged cruiser (from an accident) would need replacement soon. The police department noted that the proposed replacement was a truck, not an SUV. - Lifepak 35 defibrillators for the fire department ($180,000). Fire Chief Craig Warren indicated the current units are still functional and the manufacturer likely will not discontinue support imminently, so the purchase could be deferred. - Contract support for the commercial recreational land use plan ($50,000). Planning staff explained the scope and proposed reduction to $15,000 for data subscription (Placer AI). - Library budget cuts: Interim Library Director Jessica (?) had proactively cut Kanopy streaming ($3,000) and Mango Languages ($1,000) from the budget. Several assembly members argued these were small, valuable services and should be restored. - Parks and Recreation: Assembly members expressed concern about the rapid growth of Parks and Rec expenses (nearly $1M operational, including the Blatchley Pool). Kevin Knox, Parks and Rec Director, noted that a 20% reduction in temp wages ($11,280) and small cuts were possible, but larger reductions would directly impact services. The assembly gave direction to look for $100,000 in reductions from Parks and Rec operational and/or capital projects. - Other Funds: Assembly members discussed the municipal haul-out operations (potential enterprise fund implications), airport revenue concerns (Delta pulling out), and capital improvement priorities (e.g., repaving Moller parking lot questioned as not a priority). Key Outcomes - Motion to remove vehicle 458 and 455 from the budget (moved by Eisenbeisz, seconded): PASSED 4-1 (Ystad opposed; Pike and Saline absent). Estimated savings: $100,000. - Motion to remove Lifepak 35 from fire department budget (moved by Ystad, seconded): PASSED 5-0 (Pike and Saline absent). Savings: $180,000. Assembly members pledged to support a supplemental appropriation if the equipment becomes obsolete. - Motion to reduce contract support for commercial recreational land use plan from $50,000 to $15,000 (moved by Ystad, seconded): PASSED 6-0 (Pike absent). Savings: $35,000. - Motion to add Kanopy and Mango language programs back into the library budget (moved by Ystad, seconded): PASSED 6-0 (Pike absent). Increased deficit by $4,000 (restored funds). - Direction to Administrator: Look for ways to reduce Parks and Recreation operational and/or capital projects by $100,000. Administrator Leach to report back with proposals. - Other: Assembly members noted that the capital improvement program should be considered separately from the budget process. Future work sessions on haul-out operations and school district capital planning were referenced. The next budget meeting (covering enterprise, internal service, and other funds) is scheduled for March 12, 2025.

The Sitka City and Borough Assembly met on Tuesday, February 25, 2025, at 6:00 PM in Assembly Chambers. The meeting covered updates on the Sitka Seaplane Base, quarterly departmental reports, approval of a new Memorandum of Understanding (MOU) for the animal shelter, a letter of agreement with police union, and a resolution supporting education funding. All votes were 6-0 in favor, with Assembly member Scott Saline absent. The meeting adjourned at 8:03 PM after a 10-minute executive session. Consent Calendar - Approved the minutes of the February 4, 11, and 13, 2025 Assembly meetings (Consent Agenda Item A). - Approved Resolution 25-06 on first and final reading, supporting House Bill 69 (education funding). Assembly member Mosher noted a typo on line 40 ("69" instead of "60") but deemed it non-substantive. Public Comments & Testimony - Anne Pollnow (Cultural Resource Specialist, 25-year resident) spoke in opposition to the proposed seaplane base location, citing destruction of at least 12 World War II cultural resources eligible for the National Register. She urged preservation for heritage tourism. The mayor asked her to submit written comments due to time limits. - Wendy Alderson expressed support for the Sitka Tribe of Alaska's Local Food Purchasing Assistance program, stating her commercial fishing family benefited from selling fish locally. - Kate Johnson, Amara Johnson, Galen Paine, and Austin Cranford testified in favor of the MOU between the City and Friends of the Sitka Animal Shelter (FOSAS), urging a third-party investigation into animal euthanasia practices and calling for long-term code updates. - During later Persons to Be Heard, Austin Cranford called for changing city code to require third-party investigations for incidents involving the city. Breezy Cranford asked about virtual participation for the March 10 town hall and requested reopening the shelter investigation, raising questions about police knowledge, disposal methods, and community trust. Discussion Items 1. Special Reports - Sitka Tribe of Alaska (STA) – Chairwoman Yeidikook’áa Dionne Brady-Howard reported: a $200,000 tribal wildlife grant for AI-enabled video at Redoubt Lake; partnership with Wild Salmon Center and USFS; a 12-unit permanent supportive housing project; appointment of Lillian Feldpausch to Bi Haw Board; approval of 2025 legislative priorities; and receipt of a $2.4 million Local Food Purchase Assistance grant over three years. She invited the public to the 50th anniversary celebration of the Sitka Native Education Program on April 19. - Sitka School Board – President Phil Burdick and Superintendent Deidre Jensen updated on advocacy efforts: they met with fence-sitting legislators in Juneau Feb 8-12; HB 69 is being held in the rules committee; the district faces budget cuts with 85% of budget in personnel; they plan a joint tribal consultation meeting next week. - Public Works – Airport Terminal Manager Joseph Bea presented the Seaplane Base update. The FAA now supports an enhanced base build including expanded uplands, costing an estimated $36 million with a city match of $2.2 million. Construction is scheduled for 2027-2028 with operations beginning in 2029. A public comment period for the Section 404 wetlands permit ends March 12, 2025. A draft Memorandum of Agreement for Section 106 compliance is available for review. The Rocky Gutierrez Terminal expansion will reach substantial completion in summer 2025. - Planning & Community Development – Director Amy Ainslie highlighted: spring permit influx, continuation of Clean Energy to Communities projects (delayed due to federal funding challenges), progress on the housing land study, and parks and recreation expansion. She thanked temporary staff by name. - Assessing – Director Larry Reeder reported: the department is wrapping up residential reappraisal for the year; value notices will be mailed March 17; a new trending model will prevent future valuation gaps; new appraiser technician Chloe Cagle joined the team. A resolution to opt into the state optional exemption program is pending. 2. Unfinished Business - Ordinance 25-04 – Supplemental appropriations for FY2025 for Electric Fund repayment of USDA RUS loan. Approved on second and final reading 6-0. Most issues were resolved at the previous meeting. 3. New Business - Item E – MOU between City and FOSAS. Municipal Administrator John Leach reviewed key updates: structured volunteer scheduling and background checks, clearly defined building access, intake procedures, veterinary consultation before euthanasia, and a three-month hold period before final disposition with FOSAS given first option to adopt. FOSAS representatives Kristina Tirman and Dusty Kidd spoke in support, calling the MOU a "bridge" toward long-term changes. They presented research comparing Sitka to nine other Alaska shelters, noting Sitka has the lowest operational budget, is staffed by one person, does not require sterilization before adoption, and has a maximum length of stay. Assembly members expressed support and regret that the issue arose. Deputy Mayor Tor Christianson announced a town hall on March 10 at 6 PM to revise the animal control code. The MOU was approved 6-0. - Item F – Letter of Agreement with Public Safety Employees Association (PSEA). The agreement extends the 2022-2025 contract through June 30, 2026, with hourly rate modifications for police staff. John Leach explained it addresses recruitment and retention challenges, and includes new job titles and rates. PSEA President Lance Ewers thanked the city and confirmed union ratification on February 19, 2025. Approved 6-0. Key Outcomes - Resolution 25-06 (Education Funding): Approved 6-0. The resolution supports House Bill 69. Assembly and school board urged citizens to contact Alaska legislators. - Reappointment of Casey Campbell to the Gary Paxton Industrial Park Board for a two-year term: Approved 6-0. - Ordinance 25-04 (Supplemental Appropriations): Approved 6-0 on second reading. - MOU with Friends of Sitka Animal Shelter: Approved 6-0. A town hall on animal code changes is set for March 10, 2025 at 6 PM. - LOA with PSEA: Approved 6-0, extending police contract and raising hourly rates. - Executive Session: The Assembly met in executive session from 7:50 PM to 8:00 PM to discuss legal matters regarding Dick v. CBS litigation. No action was taken. Reports - Mayor Steven Eisenbeisz reported on the Southeast Conference and Alaska Municipal League Winter Conference. Key points: Sitka's population declined by 140 over the past year and nearly 1,000 over 10 years; 290 housing units were added in the same period; tourism wages up 44%; seafood sector struggling; state budget constraints threaten harbor matching grants and school funding; a potential fish farming bill is being prepared by the governor (opposed by Senator Stedman). - Administrator John Leach confirmed the investigation report on animal shelter operations has been released publicly following a records request. He stated openness to a third-party investigation if directed by the Assembly.

The Sitka City and Borough Assembly held a special meeting on February 13, 2025, at 6:00 PM in the Assembly Chambers. The primary agenda item was an executive session to discuss legal and financial matters related to Cranford v. CBS litigation, followed by a vote on a mediated settlement. The mayor was absent; six assembly members were present. Consent Calendar - None. Public Comments & Testimony - No members of the public were present or provided testimony. Discussion Items - Executive Session (Item A – Unfinished Business): The assembly voted 6–0 to enter executive session to receive attorney‑client communications regarding Cranford v. CBS. Acting municipal administrator Ron Vincent was invited into the session. The session covered legal and financial implications of the litigation, including the role of the municipality’s insurance carrier. - Settlements and Payments: Upon reconvening, an informal comment noted that “SIPA sound got paid from the debt,” though no further explanation or action was taken on this point. Key Outcomes - Approval of Settlement: The assembly voted 6–0 to approve the Cranford v. SPD settlement terms as agreed upon in mediation. The decision was made reluctantly, based on advice of counsel due to “extensive potential liability” and decisions by the municipality’s insurance carrier. Members emphasized that extinguishing future liability was a driving factor. - Adjournment: The meeting was adjourned immediately following the vote.

The City and Borough of Sitka Assembly held its regular meeting on Tuesday, February 11, 2025, at 6:00 PM in Assembly Chambers. The meeting included a ceremonial service award, special reports on the FY2024 audit and quarterly department updates, public testimony, approval of routine consent items, appointments to boards and commissions, adoption of mid-year supplemental appropriations, first reading of an ordinance to repay a USDA RUS loan, assignment of a tourism commission liaison, and an executive session on litigation matters. All votes were unanimous (7-0) unless noted. Ceremonial Matters - Deputy Mayor Timothy Pike presented a service award to Dr. Paul Bahna for over two years of service on the Health Needs and Human Services Commission. Special Reports - FY2024 Audit – Joy Merriner (BDO) presented a clean audit with an unmodified opinion on financial statements and a clean opinion on single audits (federal and state). Key highlights included the early adoption of GASB 101 for compensated absences, no findings on internal control (except a noted superuser access in IT, mitigated by compensating controls), and a new USDA rural electrification loan program audited with no findings. The city’s general fund balance is $23.5 million, with $7.8 million unassigned; total net position increased by $9 million in enterprise funds. - Harbors Quarterly Report – Harbormaster Stan Eliason reported on a rate study by HDR, focusing on dusty insurance requirements and passenger-for-hire fees. A RFP for the fish work float major repairs is forthcoming. A state application for electrical flotation upgrades at Lysons Harbor was scored second place for potential $240,000 funding. Staffing is strong; budget is 48% expended. - Public & Government Relations Quarterly Report – Director Melissa Wileman highlighted the strategic plan update, quarterly newsletter, and submission of projects for state funding (CDS requests and an appropriations bill including $11.25 million for wastewater disinfection and $5.7 million for a haul-out). The 2024 annual report showed over 24,000 police calls, 1,500 fire calls, 93,000 library visitors, and 500+ youth in parks and rec programs. Legislative priorities will be taken to Juneau and Washington, D.C. Public Comments & Testimony - Michael Nurco (first Persons to be Heard) – Commented on the future management of Sitka’s boat yard. He expressed that the RFQ language for a private operator was too narrow, excluding a long-term local business. He urged the Assembly to consider a city-run or locally run boat yard instead of a Kodiak-based company (HIMARC), stating that the community wants local management and that a municipally run model would be self-sustaining given the city already owns the land and travel lift. - Austin Cranford (second Persons to be Heard) – Asked about an investigation involving the second animal shelter, which the city administrator had hoped to complete by end of January. He claimed the city may know the disposition of cats that were previously listed as unknown, and urged release of the investigation report soon. Consent Calendar - Approved minutes of the January 14 and 28 assembly meetings. - Approved liquor license Package Store Delivery Endorsement applications for Triple C Ventures, Inc. dba Watson Point Liquor and Cascade Convenience Center. Board, Commission, Committee Appointments - Appointed Mariana Robertson (Local Emergency Planning Committee, Category 3: Media/Broadcast) and Joshua Badder (Port and Harbors Commission, unexpired term). - Reappointed Lauren Howard (Gary Paxton Industrial Park Board, At-Large) and JoAnn Huff (Tree and Landscape Committee). All appointments and reappointments were approved 7-0. Discussion Items - Unfinished Business: ORD 25-03 (Mid-year Supplemental Appropriations) – Finance Director Melissa Haley provided an overview, noting the ordinance is routine and covers clerical adjustments, capital project reallocations (e.g., fire station alerting system), increased legal costs, higher sales tax projections for schools, and a typo correction (tire cutter to chipper/grinder). The ordinance was approved on second and final reading, 7-0. - New Business: ORD 25-04 (Electric Fund Repayment of USDA RUS Loan) – Utility Director Ron Vinson and Finance Director Melissa Haley explained that the loan conditions changed, making compliance with reporting requirements (mid-year close, thousands of pages of guidance) infeasible. The city will repay the loan early, with an estimated penalty up to $200,000, using $3 million in unexpected hydroelectric incentives. Assembly members expressed disappointment but supported the move, citing improved alternative funding options and reduced staff burden. The ordinance was approved on first reading, 7-0. A second reading will be required. - Assembly Liaison Assignment: Tourism Commission – Chris Ystad volunteered as primary liaison, and Scott Saline as alternate. The commission meets the second Thursday of each month at 6:00 PM. Ystad noted potential conflicts with summer fishing commitments; Saline will fill in as needed. Reports - Mayor’s Report – Mayor Steven Eisenbeisz recap of the Pacific Northwest Cruise Symposium: Cruise industry is reducing heavy fuel oil use (now 54% use alternative fuels); Alaska is the 5th most popular cruise destination; congestion issues are not unique to Sitka (e.g., Zion National Park). He encouraged cruise lines to purchase local seafood. An MOU with Norwegian Cruise Line may shift three ship days to stay under the limit. Concern was expressed about a potential ballot initiative’s 18-month permitting cycle being incompatible with cruise booking schedules; if passed, the 300,000 passenger cap would be unachievable due to larger ship restrictions. The mayor will explore a destination management company to track numbers and traffic solutions. Executive Session - The Assembly voted 7-0 to enter executive session from 7:10 PM to 8:30 PM to receive attorney-client communications on litigation (Wampler v. CBS, Mace v. CBS, Cranford v. CBS) with legal counsel. Upon reconvening, Deputy Mayor Tim Pike announced a special meeting on Thursday, February 13, to continue discussion and make a decision on one of the cases. Key Outcomes - Consent agenda items A and B approved 7-0. - Appointments and reappointments approved 7-0. - ORD 25-03 (Mid-year Supplemental Appropriations) approved on second and final reading 7-0. - ORD 25-04 (Electric Fund USDA Loan Repayment) approved on first reading 7-0; second reading pending. - Tourism commission liaison assigned: Chris Ystad (primary), Scott Saline (alternate). - Special meeting scheduled for February 13, 2025, to further discuss litigation matters in executive session. - Meeting adjourned at 8:32 PM.

The City and Borough of Sitka Assembly held a special meeting on February 4, 2025, from 6:00 PM to 8:30 PM, with six members present (Christianson, Mosher, Ystad, Pike, Carlson, Saline) and Mayor Eisenbeisz absent. The meeting focused on preliminary direction for the FY2026 municipal budget, particularly enterprise fund rates and resource proposals. Municipal Administrator John Leach and Finance Director Melissa Haley presented a comprehensive review of challenges, assumptions, and rate recommendations for electric, water, wastewater, solid waste, and harbor funds. Assembly members also introduced three resource proposals: a full-time refrigerant technician, visitor industry data collection, and a port district study with potential new port director position. Discussion Items - Enterprise Fund Rate Recommendations: Finance Director Melissa Haley presented recommended rate adjustments for FY2026: Electric – 2% increase plus customer fee adjustment (phased); Water – 6% increase; Wastewater – 6% increase; Solid Waste – 2% increase for collections, 4% for transfer station/scrapyard; Harbor – 4% increase. Key drivers included inflation (2.3% Alaska CPI for Dec 2024), unfunded mandates (water filtration, effluent disinfection, FERC requirements), and asset management strategies to extend infrastructure life. The electric fund also discussed a potential USDA RUS loan payoff (over $3 million) using hydroelectric incentive funds, which would not affect rates. - Electric Rate Discussion: Assembly members debated the proposed 2% electric increase versus inflation (2.3%). Concerns were raised about future capital needs (40 pole replacements, transmission/distribution upgrades) and emergency preparedness, citing examples from Ketchikan (35% rate increase needed) and Haines (potential 40-70% increase from a transmission line break). Some members advocated for 2.3% or 3% to better match inflation and build reserves. The consensus was to proceed with 2% as presented, with the understanding that the three-year plan includes continued customer fee adjustments and working capital growth. - Resource Proposals for Enterprise Funds: Haley highlighted several capital resource proposals: a $22,000 increase in temporary wages for electric civil maintenance (to reduce contract costs), a submersible remotely operated vehicle (ROV) for dam inspections (shared with fire department), a boom pole grab auger digger derrick for pole replacements (estimated to reduce contractor expenses), and increased travel/training for plant operators. The assembly directed staff to include these in the draft budget. Key Outcomes - Rate Direction: The assembly reached consensus to move forward with all recommended rate increases as presented (no formal motion, but clear guidance). The electric fund rate will remain at 2% for FY26, with a three-year outlook. - Saline's Refrigerant Technician FTE: Assembly member Saline proposed a new full-time position ($130,000/year with benefits) to perform HVAC and refrigeration maintenance on city and school facilities (9 heat pump systems, 25-30 individual units). Supporters noted potential cost savings from reducing contracted services and proactive maintenance. Concerns included recruitment difficulty and job classification. The assembly consensus was to advance this proposal into the draft budget for further analysis, with staff to develop job description and cost estimates. - Carlson's Visitor Data Collection: Assembly member Carlson proposed $140,000 for a community survey and economic impact study, funded 50/50 from the Visitor Enhancement Fund and Commercial Passenger Vessel Fund. The data would inform tourism management and quality-of-life decisions. Some members expressed fiscal caution given federal grant uncertainty and ballot propositions, but noted the funds are visitor-related. The assembly agreed to include in the draft budget, though implementation may be delayed to the 2026 travel season due to procurement timelines. - Ystad's Port District Study: Assembly member Ystad introduced a proposal for $50,000 in consulting fees to explore creating a port district or port authority, consolidating management of harbor, airport, seaplane base, GPIP, and soon-to-be-completed haul-out facility under a port director (new FTE estimated at $220,000/year). Timing aligns with the Harbor Master's upcoming retirement. Staff noted potential efficiencies and reduced workload on the administrator and legal. Assembly consensus was to include the $50,000 study in the draft budget and evaluate the FTE in future years. Concerns about recruitment and salary competitiveness were raised but did not block advancement. - Fire Protection Infrastructure Study: The assembly discussed a project charter for a study of water pressure and fire suppression systems at GPIP, to be funded 50/50 by the water fund and GPIP. The study will evaluate non-potable water line options and potable water improvements. This item was added to the draft budget. Next Steps - Draft FY2026 budget to be released February 18, 2025 (delayed from original February 7 target). - Next budget meetings scheduled: February 27 (general fund discussion) and March 12. - Staff will refine job descriptions, conduct cost analyses, and develop procurement timelines for data collection and consultant services.