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 Acting Municipal Attorney: Brian Hanson Tuesday, August 23, 2016 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, and Potrzuski Telephonic: 1 - Guevin IV. CORRESPONDENCE/AGENDA CHANGES No agenda changes. 16-156 Reminders, Calendars and General Correspondence V. CEREMONIAL MATTERS 16-148 Service Award - Lauren Hughey, Health Needs and Human Services Commission McConnell read and presented a service award to Lauren Hughey for her service on the Health Needs and Human Services Commission. VI. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Sitka Community Hospital, Municipal Departments, School District, Students and Guests (time limits apply) None. VII. PERSONS TO BE HEARD CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final August 23, 2016 Larry Crews suggested as a cost saving measure the Assembly hire one of the qualified local attorneys that had applied for the Municipal Attorney position and suggested it be a contract position. Crews noted a full time attorney was not needed. VIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Mayor - McConnell reported on the Alaska Municipal League (AML) Summer board meetings held in Wasilla. Of note, the City of Bethel would be presenting to the AML body in November two resolutions; one opposing a state sales tax and the other in support of Public Employees Retirement System reform. Cynthia Franklin spoke about marijuana regulations and Forrest Dunbar spoke about the PFD/Voter Registration topic which was scheduled to be on the November General Election ballot. McConnell reported that Municipal Attorney candidate Carey Gagnon withdrew her application for consideration. Administrator - Gorman thanked participants of the landslide commemoration events, stated on September 1st Lt. Jeff Ankerfelt would become Acting Police Chief, advised that the week of August 29th the transition back to Harrigan Centennial Hall (HCH) would begin and noted HCH user policies had been updated, shared that he and Maegan Bosak, Planning and Community Development Director, would be presenting the FY16 CBS Annual Report at the August 31st Chamber of Commerce luncheon, and reported repair work on the float plane dock would begin soon. Clerk - Peterson assisted Assembly members in scheduling a Special Meeting for August 24th at 6pm to discuss the next steps of the Municipal Attorney hire process. IX. CONSENT AGENDA A motion was made by Swanson that the Consent Agenda consisting of items A & B be APPROVED. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski A 16-149 Approve the minutes of the August 9 Assembly meetings This item was APPROVED ON THE CONSENT AGENDA. B RES 16-14 Authorizing a Municipal Matching Grant application to the Alaska Department of Environmental Conservation for South Lake Street and West DeGroff water and sewer improvements This item was APPROVED ON THE CONSENT AGENDA. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS C 16-150 Appoint Barbara Kendall to an unexpired term on the Health Needs and Human Services Commission A motion was made by Miyasato that this Item be APPROVED. The motion PASSED by the following vote. CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final August 23, 2016 Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski XI. UNFINISHED BUSINESS: D ORD 16-28 Amending Sitka General Code Title 22 "Zoning" by amending Section 22.30.150 "Administrative Approvals Without Notice" A motion was made by Hunter that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski E ORD 16-29 Amending the official Sitka Zoning Map to assign OS (Open Space) Zoning to ASLS 2015-06, a previously unzoned parcel A motion was made by Miyasato that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski XII. NEW BUSINESS: F 16-153 Approve a standard marijuana cultivation facility license for Jeremy J. Erickson dba Vern's Wicked Weed at 3872 Halibut Point Road Bay One A motion was made by Hunter that this Item be APPROVED. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski G 16-154 Approve a retail marijuana store license for Anna M. Cleaver dba Weed Dudes at 1321 Sawmill Creek Road Suite J Potrzuski noted the review process had been thorough, both by the State and the City. A motion was made by Swanson that this Item be APPROVED. The motion PASSED by the following vote. Yes: 7- McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, Guevin, and Potrzuski H ORD 16-27S Adjusting the FY17 Budget (Float Plane Dock Funding) Administrator Gorman noted this was a substitute ordinance before the Assembly for first reading. Additional information had been added identifying it as an appropriation. Hunter and Potrzuski noted it was an appropriate use of funds. While Eisenbeisz felt the repairs were warranted, he disagreed with the use of the Southeast Economic Development Fund. CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final August 23, 2016 A motion was made by Hunter that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 5- McConnell, Hunter, Miyasato, Guevin, and Potrzuski No: 2- Swanson, and Eisenbeisz I 16-155 Discussion of FY18 General Fund budget revenue considerations including agenda items ORD 16-30 and ORD 16-31 Assembly members discussed possible revenue generating ideas: a homestead exemption (voter approval needed); year round 6% sales tax; and a fuel tax dedicated to harbors, roads and other infrastructure. Gorman predicted a $2.5 million deficit for FY18. While concerned, members felt it was best to wait until after the October election and then based on the outcome of the ballot proposition, take a closer look at revenue generating ideas. It was reminded a 2 mill property tax increase would not solve the budget deficit but was a step in the right direction. Members offered their views on the ballot proposition (2 mill property tax increase) and proposed uses for revenue generated from the increase: 1 mill for subsidization of the General Fund and 1 mill for subsidization of the Electric Fund or 1 mill to subsidize the removal of sales tax from groceries. J ORD 16-30 Amending Sitka General Code Chapter 4.09 "Sales Tax" Section 4.09.100 "Exemptions" by including an exemption for sales tax on groceries and amending Section 4.09.420 "Definitions" by adding a definition for groceries Larry Crews and Joe Meador spoke in opposition to the ordinance. Eisenbeisz believed exempting sales tax from groceries and increasing electric rates would create localized inflation negating any gains in the long run. A motion was made by Hunter that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 5- McConnell, Hunter, Miyasato, Guevin, and Potrzuski No: 2- Swanson, and Eisenbeisz K ORD 16-31 Amending Sitka General Code Chapter 4.12 "Property Tax" by adding a new Section 4.12.430 titled "Mill rate proceeds transfer to electric rate stabilization fund" Eisenbeisz and Potrzuski offered there was no harm in passing both ordinances (Ordinance 2016-30 and Ordinance 2016-31) on first reading. This would allow the public the opportunity to comment on second reading September 13. Larry Crews spoke to the high cost of living in Sitka. School Board member, Tom Conley, provided a report on the Sitka School District (SSD) and offered the SSD would be voting on a resolution in support of raising the millage rate. A motion was made by Swanson that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 5- Hunter, Swanson, Miyasato, Eisenbeisz, and Potrzuski CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final August 23, 2016 No: 2- McConnell, and Guevin XIII. PERSONS TO BE HEARD: Alene Henning voiced concern about the use of cell phones while driving and the lack of enforcement. Hugh Bevan suggested reconfiguring the Airport Terminal Enterprise Fund to include the float plane dock. Bevan also shared concerns of long term parking at the airport. Clyde Bright spoke to the high housing demand and suggested the City turn over land (No Name Mountain) to a private entity for housing development. He added it was likely landlords would pass along a property tax increase to their tenants. Zachary Desmond of Brave Heart Volunteers expressed appreciation to the Assembly for their continued support of Non Profits. XIV. EXECUTIVE SESSION None. XV. ADJOURNMENT A motion was made by Miyasato to ADJOURN. Hearing no objections, the meeting ADJOURNED at 7:39pm. ATTEST: __________________________ Sara Peterson, CMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 5