City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 1332 Seward Ave. Room 229 Sitka, AK (907)747-1811 Minutes - Final City and Borough Assembly Mayor Mim McConnell Deputy Mayor Matt Hunter Vice-Deputy Mayor Benjamin Miyasato Aaron Swanson, Steven Eisenbeisz Tristan Guevin, and Bob Potrzuski Municipal Administrator: Mark Gorman Municipal Attorney: Robin L. Schmid Monday, April 25, 2016 6:00 PM Assembly Chambers Meeting to be held at the Sealing Cove Business Center 601 Alice Loop SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Assembly Member Potrzuski attended telephonically. Present: 7 - McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski IV. CORRESPONDENCE/AGENDA CHANGES None. V. PERSONS TO BE HEARD None. VI. UNFINISHED BUSINESS: A 16-072 Discussion/Direction/Decision of other budget requests not included in the FY2017 budget Staff provided an overview of the supplemental budget requests as recommended by the Municipal Administrator: 1) phone system replacement ($60,000), 2) Comprehensive Plan contractual assistance ($40,000), and 3) temporary wages - Assessing ($65,000). A motion was made by Guevin to include temporary wages for Assessing in the amount of $65,000 in the FY2017 budget as recommended by the Municipal CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final April 25, 2016 Administrator. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski A motion was made by Hunter to include $40,000 for Comprehensive Plan contractual assistance in the FY2017 budget as recommended by the Municipal Administrator. The motion PASSED by the following vote. Yes: 5- McConnell, Hunter, Miyasato, Guevin, and Potrzuski No: 2- Swanson, and Eisenbeisz Dave Neutzel spoke in support of the allocation and offered the Sitka Community Playground group planned to raise additional funding. Neutzel stated the playground was expected to be complete May/June 2017. A motion was made by Miyasato to approve $40,000 for the Sitka Community Playground for inclusion in the FY2017 budget. The motion PASSED by the following vote. Yes: 6- McConnell, Hunter, Swanson, Miyasato, Guevin, and Potrzuski No: 1- Eisenbeisz Chief Finance and Administrative Officer, Jay Sweeney, clarified the $40,000 would be treated as a donation and the funds would expire June 30, 2017. Assembly members wondered at what point the funds would be made available. Administrator Gorman stated from what he had heard from Dave Neutzel's testimony was that the group hoped to have $360,000 raised by the end of the fiscal year. Guevin clarified his intent of the motion by stating if the group were to receive $200,000 in grant funds for example and the $40,000 was used as a match to reach 75% playground completion then he would see that as a point at which the City and Borough of Sitka could release the $40,000. He further clarified that it was not his intent for the project to be complete in order for the funds to be released. A motion was made by Guevin that the $40,000 included in the FY2017 budget for the Sitka Community Playground be held by the City and Borough of Sitka as matching funds for a new community playground to be released at the time of the grant award. The motion PASSED by the following vote. Yes: 6- McConnell, Hunter, Swanson, Miyasato, Guevin, and Potrzuski No: 1- Eisenbeisz Discussion of The RIDE $25,000 funding request: Connie Sipe, Executive Director for Center of Community, provided history of The RIDE and noted if approved, this would be the third year of funding from the City and Borough of Sitka (CBS). She urged the Assembly to support full funding, however, recognized the fiscal challenges CBS was facing and suggested an alternative funding amount of $15,000. Assembly members Guevin and Miyasato recused themselves - Guevin because of his employment with the Sitka Tribe of Alaska (STA) and Miyasato because of his role on the STA Council. An AMENDMENT was made by Hunter to reduce the amount of funding from $25,000 to $15,000 for The RIDE. The AMENDMENT PASSED by the following CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final April 25, 2016 vote. Yes: 5- McConnell, Hunter, Swanson, Eisenbeisz, and Potrzuski Recused: 2- Miyasato, and Guevin A motion was made by Hunter to approve the main motion as amended for The RIDE. The motion FAILED by the following vote. Yes: 3- McConnell, Hunter, and Potrzuski No: 2- Swanson, and Eisenbeisz Recused: 2- Miyasato, and Guevin Chief Finance and Administrative Officer, Jay Sweeney, provided a recap of the deficits to date. The Assembly decided to take action on the reduction of the Assistant Fire Chief position and the School District's request for funding. Administrator Gorman spoke to the proposed reduction of the Assistant Fire Chief position. He relayed the intent, after speaking with Fire Chief Miller, would be to create two deputy positions rather than filling the Assistant Fire Chief position which would yield a cost savings. The positions would be filled through a competitive process within the Fire Department. Hunter and Eisenbeisz expressed concern with the reduction of the Assistant Fire Chief position. A motion was made by Hunter to delete the Assistant Fire Chief position from the FY17 budget. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski A discussion occurred as to whether or not Assembly member Potrzuski should recuse himself. He stated both he and his wife were employed as substitute teachers by the Sitka School District. Municipal Attorney, Robin Schmid, read section 1.04.080 on conflict of interest from the Sitka General Code. Potrzuski stated he would recuse himself. A motion was made by Hunter to accept the Sitka School District's request for $100,000 less than the FY16 budget. The motion PASSED by the following vote. Yes: 6- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, and Guevin Recused: 1- Potrzuski VII. NEW BUSINESS: B 16-081 Administrative report containing overview of forecasted revenues, proposed operating outlays, proposed capital expenditures, and resulting changes in working capital for each of the eight Enterprise Funds Chief Finance and Administrative Officer, Jay Sweeney, reviewed the Enterprise Fund operating outlays, capital outlays, and user fee increases. C 16-077 Discussion/Direction/Decision on proposed Enterprise Fund operating outlays Proposed Enterprise Fund operating outlays: Electric $8,740,658 Water $1,647,778 CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final April 25, 2016 Wastewater $2,812,477 Solid Waste $3,424,693 Harbor $1,903,882 Airport Terminal $463,288 Marine Service Center $158,197 GPIP $249,099 A motion was made by Swanson to approve the proposed Enterprise Fund operating outlays of $19,400,072. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski D 16-078 Discussion/Direction/Decision on proposed Enterprise Fund capital outlays Proposed Enterprise Fund capital outlays: Electric $3,475,000 Water $75,000 Wastewater $226,500 Solid Waste $0 Harbor $0 Airport Terminal $0 Marine Service Center $0 GPIP $0 A motion was made by Swanson to approve the proposed Enterprise Fund capital outlays of $3,776,500. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski E 16-079 Discussion/Direction/Decision on proposed Enterprise Fund user fee increases Discussion of user fee increases: Electric 5% Water 1% Wastewater 1% Solid Waste 0% Harbor 6.2% Matt Donohoe spoke in opposition to an increase in harbor rates. Kevin Knox, Chair of the Port and Harbors Commission, stated the Commission after much debate had voted in support of a 6.2% increase. An AMENDMENT was made by Eisenbeisz to adjust the harbor user fee to 5% as opposed to 6.2%. The AMENDMENT PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski Matt Donohoe thanked Assembly Member Eisenbeisz for making the amendment. A motion was made by Hunter to approve the main motion as amended for harbor user fees. The motion PASSED by the following vote. CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final April 25, 2016 Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski F 16-080 Discussion/Direction/Decision of the FY2017 Enterprise Funds or General Fund and as they relate to other Funds, the School District, and the Sitka Community Hospital No discussion occurred and no action was taken. VIII. PERSONS TO BE HEARD: None. IX. EXECUTIVE SESSION None. X. ADJOURNMENT A motion was made by Miyasato to ADJOURN. Hearing no objections, the meeting ADJOURNED at 9:20pm. ATTEST: __________________________ Sara Peterson, CMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 5