City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 330 Harbor Drive Sitka, AK (907)747-1811 Minutes - Final City and Borough Assembly Mayor Matthew Hunter Deputy Mayor Bob Potrzuski Vice-Deputy Mayor Steven Eisenbeisz Tristan Guevin, Kevin Knox Aaron Bean, and Aaron Swanson Interim Municipal Administrator: Phillip Messina Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, June 27, 2017 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1 - Hunter IV. CORRESPONDENCE/AGENDA CHANGES No agenda changes. 17-111 Reminders, Calendars and Correspondence V. CEREMONIAL MATTERS 17-112 Athletic Awards for Sitka High School Baseball Deputy Mayor Potrzuski read and presented Athletic Awards to members of the Sitka High School Baseball Team for placing first at the 2017 ASAA State High School Baseball Championships. VI. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Sitka Community Hospital, Municipal Departments, School District, Students and Guests (five minute time limit) None. CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final June 27, 2017 VII. PERSONS TO BE HEARD Travis Hudson spoke to the upcoming schedule for continued discussions of healthcare in Sitka and expressed that the process felt rushed. He reported a worksession for Sitka Community Hospital to present their options was scheduled for July 13, a Town Hall Meeting had been organized for July 17, and a special Assembly meeting was planned for July 18. Alene Henning voiced concern, that although prohibited, citizens were continuing to use cellphones while driving. VIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Interim Administrator - Messina spoke to the professionalism of City staff and thanked everyone for welcoming him. He announced the City had been notified by Senator Murkowski's office that Sitka would receive a payment of $684,271 from the PILT (Payment in Lieu of Taxes) federal program. IX. CONSENT AGENDA A motion was made by Knox that the Consent Agenda consisting of items A & B be APPROVED. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter A 17-113 Approve the minutes of the June 13 Assembly meeting This item was APPROVED ON THE CONSENT AGENDA. B RES 17-11 Setting the millage rates for the Fiscal Year July 1, 2017 through June 30, 2018 This item was APPROVED ON THE CONSENT AGENDA. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS C 17-119 Reappoint Bert Stedman to a term on the Investment Committee Guevin thanked Senator Bert Stedman for reapplying and his years of service with the Committee. A motion was made by Swanson 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 June 27, 2017 Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter XI. UNFINISHED BUSINESS: D ORD 17-18 Vacating the right of way adjacent to 403 Alice Loop (Purpose: to vacate and sell to Mica Trani, owner of property at 403 Alice Loop) A motion was made by Swanson that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter E ORD 17-17 Adjusting the FY17 Budget (GPIP Access Ramp) Knox and Guevin spoke in support of the Ordinance. Guevin added it was exciting to see economic development being created at the Gary Paxton Industrial Park. A motion was made by Knox that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter F ORD 17-19 Amending the official Sitka Zoning Map to rezone harbors at 211 and 617 Katlian Avenue from Waterfront District (WD) to Public Lands District (P) Knox stated uniformity of zoning in the harbors was important. A motion was made by Guevin that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter G ORD 17-20 Amending Sitka General Code Title 19 entitled "Building and Construction", Chapter 19.08 entitled "Code Applicability", by adding Subsection D to Section 19.08.030 entitled "Islands", for an exemption for private recreational cabins on islands Valerie Edwards spoke in support of the Ordinance. A motion was made by Swanson that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter H ORD 17-14 Amending Sitka General Code Title 20 "Miscellaneous Permit Regulations" by changing the name to "Environmentally Critical Areas" CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final June 27, 2017 and adding a new Chapter 20.01 entitled "Landslide Area Management" Scott McArthur, a contractor and owner of property near the Kramer landslide, spoke in support of the ordinance. Eisenbeisz stated passage of the ordinance would allow development in areas where development might not otherwise be allowed. Potrzuski thanked staff for their work. A motion was made by Knox that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter XII. NEW BUSINESS: I 17-114 Consideration and award of the request for proposals submitted for the available funds ($38,000) in the Fisheries Enhancement Fund Linda Behnken of Alaska Longline Fisherman's Association and Lisa Busch of Sitka Sound Science Center spoke to the disbursement of funds and their respective programs. Nancy LeClerc Davidson and Steve Reifenstuhl spoke in support of the Sitka Sound Science Center proposal. Eric Jordan, Jacob Klusemeier, Kathryn Klusemeier, and Steve Fish voiced support for the Alaska Longline Fisherman's Association request. A motion was made by Eisenbeisz to make $38,000 in the Fisheries Enhancement Fund available for disbursement. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter A motion was made by Eisenbeisz to award $10,000 to the Alaska Longline Fisherman's Association and $28,000 to the Sitka Sound Science Center. After discussion, a motion was made by Eisenbeisz to Divide the Question. The motion to Divide the Question PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter A motion was made by Eisenbeisz to award $10,000 to the Alaska Longline Fisherman's Association. The motion PASSED by the following vote. Yes: 4- Eisenbeisz, Guevin, Potrzuski, and Knox No: 2- Swanson, and Bean Absent: 1- Hunter CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final June 27, 2017 A motion was made by Eisenbeisz to award $28,000 to the Sitka Sound Science Center. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter J 17-115 Discussion/Direction of use of Commercial Passenger Excise Tax (CPET) funds for a downtown shuttle pilot project Pat Kehoe explained this was a one month pilot project and asked for Assembly support to include $7,000. The Assembly, while supportive of the concept, wished to have more information and discussed possible funding options: Commercial Passenger Excise Tax Funds, Visitor Enhancement Funds, partnership with Sitka Tribe of Alaska, and collaboration among local businesses. Sheri Aitken, Director of Tourism at Visit Sitka, stated the last cruise ship was scheduled for September 29. She encouraged the pilot project to begin no later than the second or third week of July. Eisenbeisz expressed concern over the need for a Request For Proposals. Municipal Attorney, Brian Hanson, indicated he would be involved to ensure the City was in compliance for this process. A motion was made by Guevin to direct the Administrator to prepare a supplemental budget ordinance for a downtown shuttle pilot project working with Sitka Tribe of Alaska, and the group currently working to develop the project, with the amount not to exceed $10,000. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter K 17-116 Approve a renewal of a retail marijuana store license for Anna M. Cleaver dba Weed Dudes at 1321 Sawmill Creek Road Suite J Bean recused himself stating he benefitted from the license. Guevin thanked the Planning Department for their work. A motion was made by Swanson that this Item be APPROVED. The motion PASSED by the following vote. Yes: 5- Swanson, Eisenbeisz, Guevin, Potrzuski, and Knox Absent: 1- Hunter Recused: 1- Bean L 17-117 Approve a renewal of a retail marijuana store license for Micah Miller and Michael Daly dba Northern Lights Indoor Gardens, LLC at 1321 Sawmill Creek Road Suite O and P Eisenbeisz recused himself and stated he had a financial conflict. A motion was made by Knox that this Item be APPROVED. The motion PASSED CITY AND BOROUGH OF SITKA Page 5 City and Borough Assembly Minutes - Final June 27, 2017 by the following vote. Yes: 5- Swanson, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter Recused: 1- Eisenbeisz M 17-118 Approve a renewal of a standard marijuana cultivation facility license for Micah Miller and Michael Daly dba Northern Lights Indoor Gardens, LLC at 1321 Sawmill Creek Road Suite O and P Eisenbeisz recused himself and stated he had a financial conflict. A motion was made by Knox that this Item be APPROVED. The motion PASSED by the following vote. Yes: 5- Swanson, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter Recused: 1- Eisenbeisz N RES 17-13 Supporting Sitka Sound Science Center's application of FY17 Historic Preservation Fund Grant program for Certified Local Governments Knox and Potrzuski expressed support for Sitka Sound Science Center’s grant application to preserve the Mill Building. Eisenbeisz requested clarification on the administrative fee. Chief Finance and Administrative Officer, Jay Sweeney, indicated the fee could be upwards of 10% of the grant amount, however, he was willing to work with applicant to come to a mutual agreement regarding the amount of the administrative fee for this grant. A motion was made by Knox that this Resolution be APPROVED on FIRST AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter O ORD 17-21 Amending Sitka General Code Title 15 to increase rates at Chapter 15.04 "Sewer System" Sections 15.04.100 entitled "Service Connection Charge", 15.04.320 entitled "Rates and Fees"; and Chapter 15.05 "Water System" Sections 15.05.240A entitled "Service Connection Charge", 15.05.620 entitled "Rates and Fees"; and Chapter 15.06 "Solid Waste System and Refuse Collection" Sections 15.06.020 entitled "Solid Waste Disposal Policy and Rates", 15.06.030 entitled "Receptacles Available", 15.06.035 entitled "Rates for Treatment and Collection", 15.06.045 entitled "Special Refuse and Treatment Charges" Chief Finance and Administrative Officer, Jay Sweeney, reminded the proposed increases were discussed during the annual budget meetings. CITY AND BOROUGH OF SITKA Page 6 City and Borough Assembly Minutes - Final June 27, 2017 Several Assembly members spoke to the need for a reevaluation of the Master Plans and stated the City wasn’t currently funding them to required levels. Guevin offered $4 million was required to maintain the current level of infrastructure. A motion was made by Guevin that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 4- Swanson, Guevin, Potrzuski, and Knox No: 2- Eisenbeisz, and Bean Absent: 1- Hunter P RES 17-12 Submitting City and Borough of Sitka Shovel Ready Project priorities to the State of Alaska Guevin thanked staff for development of the project list. He noted, if awarded, the projects would provide multiple benefits including infrastructure improvements and employment opportunities. A motion was made by Knox that this Resolution be APPROVED on FIRST READING. The motion PASSED by the following Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter Q 17-120 Discussion/Direction of Electric Department insurance renewal options Utility Director, Bryan Bertacchi, provided an overview of Electric Department insurance renewal options and cost savings. He explained the annual cost for general liability, property and machinery breakdown was approximately $700,000. Of that amount, nearly $200,000 was for the two dams. Bertacchi and Mike Venneberg of Venneberg Insurance reviewed the renewal options. Bertacchi recommended options 1 and 3. Option 1: not to insure the dam or tunnel/penstock at either Green Lake or Blue Lake. The only covered property at these locations would be the powerhouses, a savings of $210,000. Option 2: insure all property but decrease earth movement and flood limit from $50 million to $30 million, a savings of $50,000. Option 3: increase the machinery deductible breakdown deductible to a flat $500,000, a savings of $49,285. Option 4: make no changes and renew the policy as is. Assembly members discussed the risks associated with each option. A motion was made by Eisenbeisz to approve not insuring the Dam or Tunnel/Penstock at either Green Lake or Blue Lake and to approve an increase in machinery breakdown deductible to flat $500,000. The motion FAILED by the following vote. CITY AND BOROUGH OF SITKA Page 7 City and Borough Assembly Minutes - Final June 27, 2017 Yes: 3- Swanson, Eisenbeisz, and Potrzuski No: 3- Guevin, Knox, and Bean Absent: 1- Hunter A motion was made by Eisenbeisz to approve an increase in machinery breakdown deductible to flat $500,000. The motion PASSED by the following vote. Yes: 5- Swanson, Eisenbeisz, Potrzuski, Knox, and Bean No: 1- Guevin Absent: 1- Hunter R ORD 17-22 Adjusting the FY17 Budget (PERS) Chief Finance and Administrative Officer, Jay Sweeney, explained the State of Alaska made and paid for contributions into PERS, on behalf of the City and Borough of Sitka (CBS) and its employees. He stated that financial reporting rules required the CBS to record in its accounting system, and report on financial statements, when another entity made an expenditure on behalf of CBS. A motion was made by Swanson that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 6- Swanson, Eisenbeisz, Guevin, Potrzuski, Knox, and Bean Absent: 1- Hunter XIII. PERSONS TO BE HEARD: None. XIV. EXECUTIVE SESSION None. XV. ADJOURNMENT A motion was made by Swanson to ADJOURN. Hearing no objections, the meeting ADJOURNED at 9:42pm. ATTEST: ________________________________ Sara Peterson, CMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 8