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 Kevin Mosher, Kevin Knox, Dr. Richard Wein, Valorie Nelson, Thor Christianson Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, May 26, 2020 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - Christianson, Eisenbeisz, Wein, Paxton, Mosher, and Nelson Absent: 1 - Knox IV. CORRESPONDENCE/AGENDA CHANGES No agenda changes. 20-113 Reminders, Calendars, and General Correspondence V. CEREMONIAL MATTERS None. VI. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Municipal Departments, School District, Students and Guests (five minute time limit) A 20-111 Special Reports: 1) U.S. Senator Dan Sullivan, and, 2) Alaska Trollers Association: Wild Fish Conservancy Lawsuit Senator Dan Sullivan reported on past, present, and future legislation with regards to the CARES Act funding. He gave amounts, told of source of funding, and noted the challenges. He went over the Paycheck Protection Program (PPP) history and legislation that was moving forward as changes to the program. He gave information on CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final May 26, 2020 legislation to try and stabilize the global energy crisis, oil prices, ocean clean up, Coast Guard, tourism, infrastructure, inefficient infrastructure permitting, and revenue replacement for municipalities. He thanked the Assembly and his team who had been working around the clock and encouraged Sitkans to reach out to his team. Wein told about Sitka's bond, refinancing and infrastructure needs. Nelson noted the delay in knowing what the financial impacts would be of the COVID-19 pandemic. Paxton relayed the daycare program challenges and needs. Municipal Administrator John Leach thanked the Senator and his staff. He told of infrastructure needs and gave examples of Green Lake Hydro, Marine Service Center, and a haulout. President of Alaska Trollers Association (ATA) Matt Donohoe told of the Wild Fish Conservancy Lawsuit. He gave details of a treaty negotiation and the closure of the outside waters to king salmon fishing. ATA Board Member Jim Moore reported on the hiring of an attorney, the finance concerns, and the lack of funds. VII. PERSONS TO BE HEARD Karen Lucas voiced concern for the youth population with regards to methamphetamine addition and told of the need of a treatment center. Paulette Moreno told of the concern and need for the fishing industry. She urged for help for businesses and different groups in the community and noted the importance of food sharing and security. VIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Administrator - Leach told of correspondence of collection notices and delinquent taxes owed. Attorney - Hanson reported on the effects on the city with regards to changes in the court system due to the COVID-19 pandemic. He shared of his participation in the Alaska Municipal Attorneys Association meetings. IX. CONSENT AGENDA A motion was made by Nelson that the Consent Agenda consisting of item A be APPROVED. The motion PASSED by unanimous consent. B 20-112 Approve the minutes of the May 12 Assembly meeting This item was APPROVED ON THE CONSENT AGENDA. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS None. XI. UNFINISHED BUSINESS: C ORD 20-26 Amending Title 2 "Administration", Chapter 2.04 "City and Borough Assembly", CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final May 26, 2020 Section 2.04.010 "Agenda" Nelson noted the time it took to get through reports toward the beginning of the meeting and felt they should be toward the end of the agenda as they were a lower priority. Christianson was in support of moving the reports toward the end of the meeting. Eisenbeisz wondered if reports were needed. Wein noted the importance of boards and commission reports and that it was a small portion of the meeting. A motion was made by Mosher that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 4- Christianson, Paxton, Mosher, and Nelson No: 2- Eisenbeisz, and Wein Absent: 1- Knox XII. NEW BUSINESS: D ORD 20-27 Amending Title 2 "Administration", Chapter 2.20 "Fire Department", Section 2.20.010 "Establishment" Paxton ruled no conflict for Eisenbeisz who was a paid volunteer with the Fire Department. Wein stated the Sitka General Code referred to a Fire Chief and Assistant Fire Chief but that the assistant position had not been funded. He felt that eliminating the official title which was in code still gave flexibility that was needed to have an efficient Fire Department. Paxton noted that Interim Fire Chief Dave Miller had been filling both positions. Mosher felt it was cleaning up the code. Christianson was not in support, didn't feel that it saved money, and said the Fire Chief had been covering for other positions. Nelson was in support since the assistant position wasn't funded. Eisenbeisz told of the Assistant Fire Chief duties that included training for the department, which he stated was important. He said that with the longevity in the department, it wasn't a current issue, but that it could be in the future. Interim Fire Chief Dave Miller spoke and offered historical background by telling of many hours of overtime, the need for the position, and he encouraged the hiring of an assistant. A motion was made by Christianson that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 3- Wein, Mosher, and Nelson No: 3- Christianson, Eisenbeisz, and Paxton Absent: 1- Knox E ORD 20-30 Authorizing the City to obtain a loan from the Alaska Municipal Bond Bank in a principal amount not to exceed $7,000,000 to refinance for savings the City’s outstanding loan from the Alaska Energy Authority; authorizing the issuance to the Bond Bank of a junior lien electric revenue refunding bond of the City to evidence and secure the loan; authorizing the Municipal Administrator and Chief Finance and Administrative Officer to enter into a loan agreement with the Bond Bank setting forth the terms and conditions of the loan and the refunding bond; and establishing an effective date CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final May 26, 2020 Chief Finance and Administrative Officer Jay Sweeney provided a summary and noted cost savings. He told of the funded accounts involved and of the break even estimate. A motion was made by Christianson that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 6- Christianson, Eisenbeisz, Wein, Paxton, Mosher, and Nelson Absent: 1- Knox F RES 20-19 Accepting Coronavirus relief funds in the amount of $14,057,653.37 for costs that are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19), from the Alaska Department of Commerce, Community and Economic Development and authorizing the Municipal Administrator to execute the finalized grant agreement (1st and final reading) Wein gave an explanation regarding the first step of accepting the funding and of next step of a grant agreement with the state. Christianson noted the restrictions on the spending of the funds. Paxton informed that there would be a fund set up to allow citizens and businesses to receive money and that it would be determined on how to allocate the funds. A motion was made by Mosher that this resolution be APPROVED on FIRST AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Christianson, Eisenbeisz, Wein, Paxton, Mosher, and Nelson Absent: 1- Knox G ORD 20-31 Making supplemental appropriations for Fiscal Year 2021 (CARES Act Funding - Utilities and Moorage Accounts) Municipal Attorney Brian Hanson told of the conditions and stated the drafted ordinances wouldn't be implemented unless funds were received. Wein wondered how the specific amount was derived and how many utility and moorage accounts were in arrears. He felt that the total amount was too high. Nelson relayed the amounts that could be given and didn't feel that 100% of people would apply for the grant. She told of stringent criteria to apply. She offered that a budget adjustment could be made for the funding that wasn't given. Christianson confirmed that the amount was derived from if every account applied for funding, however did not feel that it would all be spent especially with the short application period. Paxton urged that input was needed from citizens and businesses which would reveal the amount needed. He stated that staff would be looking at it strategically. Eisenbeisz offered he was not in support of using the funding for a moorage subsidization. Mosher noted the purpose to be a fair and equitable way to use the money and stated that there were some citizens that lived on boats. A motion was made by Mosher that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 5- Christianson, Wein, Paxton, Mosher, and Nelson No: 1- Eisenbeisz Absent: 1- Knox CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final May 26, 2020 H ORD 20-28 Establishing the CARES Act Utilities Subsidization Program Christianson expressed this was a way to fairly disperse funds and felt it could be simple to apply for. He noted that it was also supportive of the city. He explained the language which was taken from the CARES Act. Christianson reminded that all communities were in the same situation and that there was a small risk of not passing an audit. Nelson felt that dispersing the funds would be possible by June 30. Wein spoke in support. He relayed the criteria. He told of concerns of being audited and passing that audit. He reminded that the monies for different programs were being stipulated and there would be no double dipping. Eisenbeisz wondered how to work with businesses that may have received and used Payroll Protection Program on utilities. Paxton felt that staff could sort it out. Municipal Administrator John Leach relayed concerns from the auditors but that a needs test had not been described. A motion was made by Christianson that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 6- Christianson, Eisenbeisz, Wein, Paxton, Mosher, and Nelson Absent: 1- Knox I ORD 20-29 Establishing the CARES Act Moorage Costs Subsidization Program Eisenbeisz stated he was not in support as written. He felt that moorage should be included in the rent and lease section. Mosher noted the citizens that were live aboard. Christianson offered the fishing community would be the biggest beneficiary but that there were live aboards and others that had boats in the harbor. Wein was in support for moorage assistance but had concerns with the language and the possibility of applicants receiving funding if they had already through a separate program. Municipal Attorney Brian Hanson told of the requirement for the applicant to certify they had not received funding. Municipal Administrator John Leach noted the fisheries would be eligible for this funding and there was money allocated from the state as well. A motion was made by Mosher that this ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 5- Christianson, Wein, Paxton, Mosher, and Nelson No: 1- Eisenbeisz Absent: 1- Knox XIII. PERSONS TO BE HEARD: None. XIV. EXECUTIVE SESSION None. XV. ADJOURNMENT CITY AND BOROUGH OF SITKA Page 5 City and Borough Assembly Minutes - Final May 26, 2020 A motion was made by Christianson to ADJOURN. Hearing no objections, the meeting ADJOURNED at 8:43 p.m. ATTEST: _______________________________ Melissa Henshaw, CMC Deputy Clerk CITY AND BOROUGH OF SITKA Page 6