City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 330 Harbor Drive Sitka, AK (907)747-1811 Minutes - Final-revised City and Borough Assembly Mayor Matthew Hunter Deputy Mayor Steven Eisenbeisz, Vice Deputy Mayor Bob Potrzuski, Aaron Bean, Kevin Knox, Dr. Richard Wein, Benjamin Miyasato Municipal Administrator: Keith Brady Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, November 7, 2017 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 7 - Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein IV. CORRESPONDENCE/AGENDA CHANGES 17-182 Reminders, Calendars and General Correspondence V. CEREMONIAL MATTERS 17-178 Service Award recognizing Clara Gray and Proclamations for Native American Heritage Month and Veteran's Day Mayor Hunter read and presented a Service Award to Clara Gray for her service on the Health Needs and Human Services Commission. Hunter read proclamations recognizing November as Native American Heritage Month and honoring Veteran's Day. VI. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Sitka Community Hospital, Municipal Departments, School District, Students and Guests (five minute time limit) Kathy Hope Erickson, Sitka Tribe of Alaska Council Chair, invited the Assembly to a parade on November 11 in recognition of Native American Heritage Month and honoring Veteran's Day. CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final-revised November 7, 2017 Sitka Community Hospital (SCH) Board President, Bryan Bertacchi updated the Assembly on plans for obstetrical services and surgical services. Rob Allen, SCH CEO, spoke to the first quarter financial reports, Long Term Care patient statistics, clinic volumes and provided a project status report from the Stroudwater recommendations. Utility Director, Bryan Bertacchi, spoke to the $400,000 appropriation approved by the Assembly in April 2017 needed to subsidize the Electric Department Fund. Since approval of the request, Bertacchi noted there had been a 3% load growth and the money was not needed. In addition, Bertacchi reported a volunteer group of staff had started installing lights at the Skate Park. VII. PERSONS TO BE HEARD Robert Hattle recognized those individuals who had used alternative transporation to attend the Assembly meeting - e.g. bus, electric vehicle, walk, bike. Hattle, a participant at the Sitka Health Summit, spoke to the goals of the group - one of which included converting the heat source for Sitka Community Hospital from fuel to electric. Chandler O'Connell urged the Assembly to support the conversion of municipal buildings to hydro power. VIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Administrator - Brady announced the draft summer ferry schedule had been released for comment, announced the Public Works Department was performing annual water line flushing, and reported the out of state recycling collector had stopped accepting certain plastics and mixed paper. Attorney - Hanson planned to attend the Alaska Municipal League Conference and announced the draft RFP for Sitka Community Hospital was scheduled for the November 28 Assembly meeting. Liaison Representatives - Dr. Wein summarized key points from the Sitka Community Hospital Board meeting and Mayor Hunter reported on the Library Commission meeting. IX. CONSENT AGENDA A 17-179 Approve the minutes of the October 24 Assembly meeting A motion was made by Miyasato that the Consent Agenda consisting of item A be APPROVED. The motion PASSED by a unanimous voice vote. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final-revised November 7, 2017 B 17-181 Reappoint Loyd Platson to a three-year term on the Health Needs and Human Services Commission and appoint Martha Pearson to an unexpired term on the Health Needs and Human Services Commission Wein and Miyasato thanked the applicants for applying. A motion was made by Knox that this Item be APPROVED. The motion PASSED by the following vote. Yes: 7- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein XI. UNFINISHED BUSINESS: C ORD 17-35 Adjusting the FY18 Budget (Reappropriations and Harbor Meter Project) A motion was made by Potrzuski that this Ordinance be APPROVED ON SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein D ORD 17-36 Adjusting the FY18 Budget (CPET Funds Sitka History Museum) 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- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein XII. NEW BUSINESS: New Business First Reading E ORD 17-37 Adjusting the FY18 Budget (Donation to St. Michael's Cathedral renovation project) Mayor Hunter reminded the donation would come from the Visitor Enhancement Fund. Bean spoke in opposition and believed it to be a religious matter. Eisenbeisz stated the Church was a major attractor to Sitka and worthy of the donation. Knox reminded the Church, and a visitor attraction, was listed as a National Historic Landmark. Wein agreed, and noted only half of the $132,000 needed for the project had been raised. He felt compelled to make a personal donation. Hunter, Miyasato and Potrzuski offered support and spoke to the economic benefits. A motion was made by Knox that this Ordinance be APPROVED ON FIRST READING. The motion PASSED by the following vote. Yes: 6- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, and Wein CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final-revised November 7, 2017 No: 1- Bean F ORD 17-38 Adjusting the FY18 Budget (Display cabinets for the William Stortz Gallery) Norm Campbell, organizer of the William Stortz Gallery, stated public money was not involved and that grant funds would cover anticipated costs. Assembly members expressed appreciation to Campbell for his work. A motion was made by Potrzuski that this Ordinance be APPROVED ON FIRST READING. The motion PASSED by the following vote. Yes: 7- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein G ORD 17-39S Amending Sitka General Code Chapter 15.01 "Electric Utility Policies" at Section 15.01.020 "Electrical Rates" by adding Subsection P "Commercial Electric Rate Temporary Incentive Program" - 1st reading Assembly members Wein, Eisenbeisz and Bean stated the proposed ordinance was too vague. Some members expressed concern with giving an Administrator such a high level of authority (approval of the commercial customer) and the incentive rate only being offered to commercial customers. Knox and Hunter, cosponsors of the ordinance, spoke in support of keeping the ordinance language simple to give the industry and Administrator some latitude. Utility Director, Bryan Bertacchi, believed the way to reduce rates for the entire community was to gain new customer load by offering a discounted rate for a three-year period. He noted there were over 5,000 meters in Sitka. The top 10 users paid 30% of all electric costs, the top 100 users paid 50% of electric costs. He added there were 16 users who paid $125,000 or more each year. Bertacchi discouraged including procedural issues in the ordinance. Robert Hattle urged the Assembly to further define the ordinance. Assembly members Bean, Wein and Knox volunteered to serve on a committee. A motion was made by Potrzuski to REFER Ordinance 2017-39 to a committee of Assembly members (Bean, Wein and Knox). The motion PASSED by the following vote. Yes: 7- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein XIII. PERSONS TO BE HEARD: William Jacobs believed the City had interfered with the State heating contract. He stated competitive bids were submitted to secure the contract and the City was not a participant. Jacobs added that outside of the bid process, the City had offered $130,000 to the State to install electric boilers. He suggested the City wait until the existing contracts expired and participate in future contracts on an equal footing with private business. CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final-revised November 7, 2017 XIV. EXECUTIVE SESSION H 17-180 Update from legal counsel regarding the defense of the litigation arising out of the August 18, 2015 landslide events A motion was made by Potrzuski to go into Executive Session to receive and discuss an update from legal counsel, David Bruce and Jim Wilkens, regarding the defense of the litigation arising out of the August 18, 2015 landslide events. The motion PASSED by the following vote. Yes: 7- Miyasato, Eisenbeisz, Potrzuski, Hunter, Knox, Bean, and Wein The Assembly was in Executive Session from 7:40pm to 8:36pm. A motion was made to reconvene as the Assembly in regular session. The motion PASSED by a unanimous voice vote. XV. ADJOURNMENT A motion was made by Bean to ADJOURN. Hearing no objections, the meeting ADJOURNED at 8:38pm. ATTEST: ____________________________ Sara Peterson, CMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 5