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 Gary Paxton Deputy Mayor Steven Eisenbeisz, Vice Deputy Mayor Valorie Nelson, Aaron Bean, Kevin Knox, Dr. Richard Wein, Kevin Mosher Interim Municipal Administrator: Dave Miller Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, July 9, 2019 6:00 PM Assembly Chambers WORK SESSION 19-151 Assembly Action Plans John Holst lead the Assembly through the work session regarding Action Plans. REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Telephonic: 1 - Bean IV. CORRESPONDENCE/AGENDA CHANGES 19-152 Reminders, Calendars, and General Correspondence No agenda changes. V. CEREMONIAL MATTERS None. 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 July 9, 2019 VII. PERSONS TO BE HEARD Richard Wein remarked that in two years Halibut Point Marine would not have a haul out and urged the Assembly to have a discussion. He stated the need for direction to be developed. VIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Administrator - Miller thanked staff; reported on the upcoming Super Saturday event; the Crescent Harbor project; the sale of a veterinary clinic; and the Planning Director and Human Resources Director hiring process. Attorney - Hanson reviewed a list of projects he was devoting time to. Liaison Representatives - Wein reported on the Hospital Board meeting; Nelson reported the lack of quorum for the Police and Fire Commission; Knox on the Parks and Recreation Committee; Mosher on the Gary Paxton Industrial Park Board of Directors meeting. Clerk - Henshaw mentioned that candidate packets for two Assembly seats and one School Board seat would be available on July 15. IX. CONSENT AGENDA A motion was made by Knox that the Consent Agenda consisting of items A, B & C be APPROVED. The motion PASSED by the following vote. Yes: 7- Eisenbeisz, Knox, Bean, Wein, Paxton, Mosher, and Nelson A 19-142 Approve the minutes of the June 25 Assembly meeting This item was APPROVED ON THE CONSENT AGENDA. B 19-143 Approve an application for the renewal of a standard marijuana cultivation facility license for AKO Farms, LLC at 1210 Beardslee Way This item was APPROVED ON THE CONSENT AGENDA. C 19-144 Approve an application for the renewal of a marijuana concentrate manufacturing facility license for AKO Farms, LLC at 1210 Beardslee Way This item was APPROVED ON THE CONSENT AGENDA. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS None. XI. UNFINISHED BUSINESS: CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final July 9, 2019 D ORD 19-28 Making supplemental appropriations for fiscal year 2020 (water transmission main emergency repair) Eisenbeisz asked for clarification and wanted to make sure the procedure was correct. Municipal Attorney Brian Hanson felt the Sitka General Code (SGC) had been followed, however he was not involved with determining if this situation was an emergency. He noted SGC allowed the Administrator to make the determination of what an emergency was. Interim Municipal Administrator, Dave Miller felt that SGC was followed and this constituted the definition of emergency. Nelson read from SGC 3.16.030. She felt that SGC was not followed and stated there were procurement procedures in place. Public Works Director Michael Harmon outlined the process to put out a qualified RFP and also the competitive requirements of emergency acquisitions. Public Works Director Michael Harmon felt that SGC was difficult to follow and was not specific enough, however industry standards were being followed. He felt that this was done by a team decision, was transparent, noted the importance of the water line, and explained the difficulties involved with the repair. He told of the risk that he was trying to avoid. Bean stated this was not an emergency and was not in support. Harmon said it was stable at this time. He told of research and different options for a solution. Wein read from SGC, noting the time and material basis and highlighted the $25,000 limit. He stated SGC was not appropriate to handle these types of situations and it should be revisited and reworked along with the procurement ordinance. Harmon noted that a competitive bid could go out from this point, however felt there was risk to waiting on repair. Knox felt that the Assembly needed to assess and determine what the risk was and whether or not this met the emergency threshold. Nelson didn't feel that the risk was high and there should be a RFP for it. Mosher felt that work needed to be done with SGC and procurement procedures as a discussion item. He would prefer it to go out to competitive bid. Miller felt this was an emergency and gave history on other water leaks. Mayor Paxton felt if a competitive bid were to go out, that it needed to be done quickly. Eisenbeisz would like to see SGC change, clarified there was not enough money in the Water Fund for the repair, asked if there was a not to exceed clause, and an estimated cost to the project. Harmon stated $400,000 was the total amount asked for but the estimate was at $250,000 to repair which allowed for a buffer. He stated what was not used would go back to the working capital that it came from. Harmon confirmed that there would be a not to exceed amount. A motion was made by Knox that this ordinance be APPROVED ON SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 4- Eisenbeisz, Knox, Paxton, and Mosher No: 3- Bean, Wein, and Nelson Bean left the meeting at 7:23 p.m. E ORD 19-29 Making supplemental appropriations for fiscal year 2020 (No Name Mountain Master Plan) Nelson told history with cost of previous studies for this area. Public Works Director Michael Harmon told of various studies of the area with regards to rock, wetlands mitigation, and road alignment. He was assisting the Planning Department as they were short handed, and that this study would be looking at zoning in particular. Knox wondered the scope of the previous plan, and wondered if it was it the one that laid it out to make the entire area residential. Harmon relayed the Granite Creek industrial area had grown and that it would need to expanded in the future. Harmon noted that a CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final July 9, 2019 wetland preserve could be created which would allow for a bank and mitigation would not be needed which may make the process quicker. Mayor Paxton felt it could allow for economic development if zoned correctly. Harmon answered federal regulations and the U.S. Army Corps of Engineers dictates how wetlands are used and how to mitigate them. He stated this report would identify the wetlands. Wein stated he would like costs of electric, roads, etc. and asked about the streams in the area. Harmon explained the scope of the study which did not include roads, utilities, among other areas to be addressed. Knox appreciated Harmon stepping in to assist the Planning Department. Knox was in support and felt it was worth reinvesting in the area to put in additional overlays with the land and how to develop it. Nelson was not in support and had concerns with the cost of the studies. Paxton was in support, felt the zoning needed to be determined, that there was an opportunity to make land available. Wein felt to postpone until the Planning Department was fully staffed. He noted the environment. He would like to see previous reports and felt that more information was needed. Mosher was in support and felt some of the scope of work was visioning with staff, assembly, public, and project stakeholders and would include what the community wanted. A motion was made by Mosher that this ordinance be APPROVED ON SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 4- Eisenbeisz, Knox, Paxton, and Mosher No: 2- Wein, and Nelson Non-voting: 1- Bean F ORD 19-30 Reducing FY2019 appropriations and making supplemental appropriations for FY2020 (harbor security cameras) 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- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean G ORD 19-31 Reducing FY2019 appropriations and making supplemental appropriations for FY2020 (police department heat pump) Wein was in support. Eisenbeisz wondered if the estimate was low. A motion was made by Mosher that this ordinance be APPROVED ON SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean XII. NEW BUSINESS: New Business First Reading H ORD 19-32 Amending Title 20 "Environmentally Critical Areas" of the Sitka General Code by updating Chapter 20.04 "Floodplain Management" and adopting updated CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final July 9, 2019 regulations Building Official/Floodplain Manager Pat Swedeen stated FEMA created new floodplain maps which would be officially adopted August 1st, without the passing of this ordinance, we would not be in compliance with the program, and would be suspended from it. He stated the city had been in the program since 1982 and told of benefits of the program which included subsidized insurance that was required by lenders, and the opportunity for federal grants, and funding including disaster funding. He noted that private flood insurance was costly and difficult to obtain. He stated that the program was voluntary and opting out would be an option at any time in the future. Mosher did not feel there was enough information, however was in support since there would be a work session on this topic on July 23 prior to the second reading of the ordinance. Nelson felt there were issues and looked forward to the work session. Mayor Paxton stated the need for the work session. Eisenbeisz stated his concerns of different information from different sources and that this did not cover landslides. He expressed concerns with the FEMA maps but understood the benefits of the program. He would like to see rate comparisons. Swedeen relayed that residents who were moved into the flood zone would be notified of the need of insurance by their lender. Wein would like to include in the work session: a banker, real estate agent, insurance agent, and a comment from Senator Stedman. He felt that everyone who was affected should be notified. Swedeen said he thought the planning department had a way to notify property owners. A motion was made by Wein to AMEND ordinance 2019-32 to include under 20.04.010 7. Ensure that any change in flood insurance designation, the owner of the property be notified. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean Municipal Attorney Brian Hanson felt this was a substantive change, confirmed the deadline to opt in the program by August 1st and that by amending the ordinance, it would come back for two more readings causing it to be beyond the deadline date which would suspend the city from the program. Interim Municipal Administrator Dave Miller noted that if the city were to be suspended, it would affect those that are in the process of lending not being able to obtain the subsidized insurance. There was consensus to direct staff to send notifications rather than have a substantive change to this ordinance and it go beyond the deadline to opt in. A motion was made by Nelson to RESCIND the amendment. The motion PASSED by the following vote. Yes: 5- Eisenbeisz, Knox, Paxton, Mosher, and Nelson No: 1- Wein Non-voting: 1- Bean A motion was made by Knox that this ordinance be APPROVED ON FIRST READING. The motion PASSED by the following vote. Yes: 5- Knox, Wein, Paxton, Mosher, and Nelson No: 1- Eisenbeisz Non-voting: 1- Bean CITY AND BOROUGH OF SITKA Page 5 City and Borough Assembly Minutes - Final July 9, 2019 Additional New Business Items I 19-147 Approve 1) Assembly Action Plans for Cold Storage and Business Friendly CBS, and, 2) Updated Assembly Actions Plans for Lobbying (Secondary Water and Electric Department), No Name Mountain / Granite Creek, and, Seaplane Base Nelson hoped to get a list of all the studies or plans for the Granite Creek and No Name Mountain area. Wein as discussed in the work session, requested the word be changed from periodically to quarterly. Mayor Paxton confirmed that John Holst would change it. A motion was made by Mosher to APPROVE the Assembly Action Plans for Cold Storage and Business Friendly CBS, and, updated Assembly Action Plans for Lobbying (Secondary Water and Electric Department), No Name Mountain / Granite Creek, and, Seaplane Base. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean J 19-148 Discussion / Direction on proceeding with the Lincoln Street paving project Eisenbeisz had concerns that the project had morphed from a simple grind and overlay to a large, complex project. He stated his concern with spending more money than necessary. He wondered if it was what the citizens wanted. Knox wondered the risk and need to address storm water underground because there were backup issues. Municipal Attorney Brian Hanson noted a previous lawsuit from storm water on Lincoln Street. Public Works Director Michael Harmon told that there was risk, as it has flooded a number of times. Wein would like to put this project on hold as the design was problematic. He felt that the downtown area needed to be as attractive as possible with the amount of tourists that visit. Mayor Paxton felt that this street was the most important and there needed to be direction given to staff. Harmon recalled three public meetings and the project vetted through the Police and Fire Commission. He told that the plan was indicative of what the public wanted within the budget and it addressed parking. Mayor Paxton thought the plan addressed public safety and efficiency in terms of the road system. Harmon stated Public Works staff visited many businesses and still had a list of ones to get to. Project Manager, Senior Engineer David Longtin confirmed that 40 to 50% of key stakeholders were visited. Longtin felt there was consensus, that minimal owners had concerns with parking, and the majority were favorable of the project. Mosher would like to see Public Works visit more businesses. He was hesitant with the project. Nelson had concerns with the easements that may be involved and noted it was a question that had not been answered. Harmon gave options stating that Public Works could wait until the public was more informed, have more public meetings, and noted that this project should be one that people are excited about. Eisenbeisz brought up concerns with the idea of a sidewalk bump out and noted that community buy-in was important. He wondered if a bicycle safety study had been done. Harmon stated there were different solutions with different impacts and they could be laid out. Harmon noted the conflicts with the Comprehensive Plan. He stated a one lane road could address considerations of parking, bicyclists, and ADA compliance. No action was taken. K 19-145 Adopt the Chief Finance and Administrative Officer's interpretation of Sitka General Code 4.09 "Sales Tax" as it relates to the sale of advertising in CITY AND BOROUGH OF SITKA Page 6 City and Borough Assembly Minutes - Final July 9, 2019 conjunction with internet websites Charles Bingham wondered of the effects and that there was sometimes no control of ads on websites built. Chief Finance and Administrative Officer Jay Sweeney explained a vendor objected to collecting and remitting sales tax for sales of advertisements on a website that the vendor operates. Sweeney asked for an interpretation if that advertisement was a taxable sales transaction. He felt that it was taxable. Eisenbeisz wondered the similiarities of a website ad and a newspaper ad. Knox clarified that if he placed an ad on a website, the website would need to remit sales tax. Sweeney noted the challenge in the enforcement of collection. Nelson read from code and stated the code needed to be changed. She noted it was outside of within Sitka and was not in support. Wein wondered then within the ordinance, what part was delivered in Sitka and what was the value in that. He added, if delivered in Sitka, then it would have to be determined what part was taxable. Sweeney included if sale of advertising was placed in Sitka and was considered a sale then he felt it was taxable. Mosher felt like now wasn't the time to make a definitive answer on this and felt an undue burden and that code needed work. A motion was made by Knox to adopt the Chief Finance and Administrative Officer's interpretation of Sitka General Code 4.09 "Sales Tax" as it relates to the sale of advertising in conjunction with internet websites. The motion FAILED by the following vote. Yes: 1- Eisenbeisz No: 5- Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean L 19-146 Approve the Assembly Position Subcommittee recommendations of the June 28 meeting for the following positions: Library Page; Library Assistant; Temporary, Part-Time, On-Call Library Assistants; Intern Engineer; and Office Assistant - Fire/EMS Wein read into the record the positions that were approved: Library Page; Library Assistant; Temporary, Part-Time, On-Call Library Assistants; Intern Engineer; Office Assistant - Fire/EMS A motion was made by Mosher to approve the recommendations of the Assembly Position Subcommittee as outlined in the draft meeting minutes of June 28, 2019 and forward to the Municipal Administrator. The motion PASSED by the following vote. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean XIII. PERSONS TO BE HEARD: Charles Bingham stated he was working on an application for the AARP age friendly communities program. He noted the need with Sitka's aging population and that the program would qualify Sitka to leverage for potential grants. XIV. EXECUTIVE SESSION CITY AND BOROUGH OF SITKA Page 7 City and Borough Assembly Minutes - Final July 9, 2019 M 19-138 Legal Matter - Proposed Assignment of a service contract of Sitka Community Hospital to Southeast Alaska Regional Health Consortium under the Asset Purchase Agreement A motion was made by Mosher to go into executive session to discuss a legal matter affecting the municipality, as a result of a proposed contract assignment, the immediate knowledge of which would adversely affect the finances of the municipality. The motion PASSED by the following vote. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean The Assembly was in executive session from 8:43 p.m. to 9:01 p.m. A motion was made by Nelson to reconvene as the Assembly in regular session. The motion PASSED by a unanimous voice vote. N 19-149 Legal Matter: Claim related to 6.4(a) of the Asset Purchase Agreement (Sitka Community Hospital affiliation with Southeast Alaska Regional Health Consortium) A motion was made by Knox to go into executive session to discuss a claim related to schedule 6.4(a) of the Asset Purchase Agreement (Sitka Community Hospital affiliation with Southeast Alaska Regional Health Consortium), a legal matter affecting the municipality. The motion PASSED by the following vote. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean The Assembly was in executive session from 9:02 p.m. to 9:14 p.m. A motion was made by Nelson to reconvene as the Assembly in regular session. The motion PASSED by a unanimous voice vote. O 19-150 Legal Matter: Hearing Officer decision in the appeal by Sigurd Rutter of the revocation of his commercial operator permit A motion was made by Knox to go into executive session to discuss the decision of the Hearing Officer in the appeal by Sigurd Rutter of the revocation of his commercial operator permit, a legal matter affecting the municipality. The motion PASSED by the following vote. Yes: 6- Eisenbeisz, Knox, Wein, Paxton, Mosher, and Nelson Non-voting: 1- Bean The Assembly was in executive session from 9:15 p.m. to 9:34 p.m. A motion was made by Nelson to reconvene as the Assembly in regular session. The motion PASSED by an unanimous voice vote. XV. ADJOURNMENT A motion was made by Knox to ADJOURN. Hearing no objections, the meeting ADJOURNED at 9:35 p.m. CITY AND BOROUGH OF SITKA Page 8 City and Borough Assembly Minutes - Final July 9, 2019 ATTEST: ______________________________ Melissa Henshaw, CMC Acting Municipal Clerk CITY AND BOROUGH OF SITKA Page 9