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 Steven Eisenbeisz Deputy Mayor Thor Christianson, Vice Deputy Mayor Valorie Nelson, Kevin Knox, Kevin Mosher, Crystal Duncan, Rebecca Himschoot Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, December 1, 2020 6:00 PM Assembly Chambers SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Mayor Eisenbeisz attended in-person. Other Assembly members in attendance participated by videoconference. Present: 6 - Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1 - Duncan IV. CORRESPONDENCE/AGENDA CHANGES None. V. PERSONS TO BE HEARD Richard Wein reminded the weather had been conducive to landslides, spoke to issues with shipping solid waste on Alaska Marine Lines, reminded the Assembly to perform and conduct the people's business in an open forum, to keep an eye on transparency and what business was being conducted. VI. UNFINISHED BUSINESS: A 20-224 Discussion / Direction / Decision on the sale of the former Sitka Community Hospital building (this item was introduced at the November 10 assembly meeting and it was determined a special meeting would be beneficial) Planning Director Amy Ainslie provided an overview of the request from SEARHC to purchase the former Sitka Community Hospital building. She reminded SEARHC had CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final December 1, 2020 four years remaining on their lease. Municipal Administrator John Leach stated the goal of the meeting was to receive guidance from the Assembly. Ainslie reviewed the sales process flow chart and told of the Code requirement that all municipal land be competitively sold unless an exception was made determining competitive bidding to be inappropriate. SEARHC representatives Dr. Bruhl and Maegan Bosak spoke of the purchase request, expansion plans, and told of an anticipated 2024 opening date. The Assembly discussed the prospect of selling the Sitka Community Hospital facility. Knox disclosed his wife worked at SEARHC. Nelson disclosed her sister was employed at SEARHC. Nelson suggested a feasibility study be conducted to determine if the facility could be retooled to meet the needs of a police department. Other members were supportive of a sale or long-term lease. A motion was made by Mosher to direct staff to begin the negotiations of the sale of the former Sitka Community Hospital building at 209 Moller Avenue. The motion PASSED by the following vote. Yes: 5 - Eisenbeisz, Christianson, Knox, Mosher, and Himschoot No: 1 - Nelson Absent: 1 - Duncan From the public, those commenting were: Sandra Rudd, Karen Lucas, and Richard Wein. Rudd, an adjacent property owner, voiced concerns over diminished property value, preservation of greenspace, and suggested competitive bid. Lucas spoke to the need for rehabilitation services, in particular, service for heroin, methamphetamine, and alcohol abuse. Wein spoke in support of a lease option to gain increased revenue. An amendment was made to add the words "or negotiate a long-term lease". The amendment FAILED by the following vote. Yes: 2 - Himschoot and Nelson No: 4 - Knox, Eisenbeisz, Mosher, and Christianson Absent: 1 - Duncan Richard Wein spoke in support of a lease option. Assembly members offered opinions on a lease option. Mosher and Eisenbeisz reminded SEARHC had made a request to purchase as opposed to leasing. Himschoot and Nelson spoke in support of a lease option. The Assembly briefly discussed the competitive bid process. A motion was made by Christianson to find that competitive bidding for this property is appropriate pursuant to SGC 18.12.010(E), and direct staff to prepare an RFP for the sale of the former Sitka Community Hospital site. The motion was later withdrawn. From the public, Karen Lucas spoke in support of a rehabilitation center for youth. CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final December 1, 2020 Richard Wein reminded the Assembly could fashion the purchase to be of most benefit to the City. Christianson reminded there would be future meetings to accept the wording of the RFP and then one to award or reject the bids. Knox wondered if moving forward with an RFP would preclude the City from having further negotiating discussions based on the evening's previously approved motion. Municipal Attorney Brian Hanson cautioned the Assembly stating the proposed motion would eliminate the possibility of any proposer to see whether or not they could get a finding by this body of an inappropriate competitive bid. Hanson stressed competitive bidding was required unless the body made a finding that it was inappropriate. VII. PERSONS TO BE HEARD: Richard Wein wished Shirley Robards a happy birthday, mentioned the packet information was sparse, reminded proceeds from a sale of the hospital facility would go to the Permanent Fund as opposed to a lease whereby payments would go to the General Fund. VIII. EXECUTIVE SESSION None. IX. ADJOURNMENT A motion was made by Christianson to ADJOURN. Hearing no objections, the meeting ADJOURNED at 8:12 p.m. ATTEST: ___________________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 3