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, January 12, 2021 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Duncan participated by videoconference. Present: 7 - Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan IV. CORRESPONDENCE/AGENDA CHANGES Mayor Eisenbeisz stated items A & G had been pulled from the agenda. 21-010 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) School Board President Amy Morrison spoke to recent events in the School District, School Superintendent search, and reminded of the joint budget meeting with the Assembly on February 4. VII. PERSONS TO BE HEARD CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final January 12, 2021 Carin Adickes wondered when the pool at Blatchley Middle School would reopen to the public. Marshall Albertson spoke to correspondence sent to the Assembly regarding his beliefs and actions. Richard Wein reported on the Sitka Community Health Council meeting, told of the upcoming herring fishery, and spoke of current events. Harvey Brandt told of his time as an educator and stated the foundation of our democracy was being challenged. Keoki Tafaoialii spoke to the good Marshall Albertson does for Sitka. Valorie Nelson stated the Nation had become divided, stressed the need for tolerance and patience, and stated Harbor Department employees should be at the forefront to receive a COVID-19 vaccine. Thor Christianson stated the United States of America was based on the democratic process and added the people who recently attacked the U.S. Capitol did not represent democracy. Mia Nevarez voiced concern over threatening language and behavior she had observed of some Sitkans. VIII. CONSENT AGENDA A motion was made by Nelson that the Consent Agenda consisting of items B & C be APPROVED. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan A 21-001 Approve the minutes of the December 17, December 22, and January 12 assembly meetings Item PULLED from agenda. No action taken. B 21-002 Approve a liquor license renewal application for House of Liquors Inc. dba Salty Sal's Liquor Cabinet at 321-B Lincoln Street This item was APPROVED ON THE CONSENT AGENDA. C RES 21-01 Adopting an alternative allocation method for the FY21 Shared Fisheries Business Tax Program and certifying that this allocation method fairly represents the distribution of significant effects of fisheries business activity in FMA:18 Central Southeast Area This item was APPROVED ON THE CONSENT AGENDA. IX. BOARD, COMMISSION, COMMITTEE APPOINTMENTS D 21-008 Reappoint Michael Nurco to a three-year term on the Port and Harbors Commission Richard Wein spoke in support of Nurco. Knox thanked Nurco for his service. A motion was made by Knox that this item be APPROVED. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan E 21-004 Appoint at least seven members but no more than twelve to the Climate Action Task Force - applicants are: 1) Elizabeth Bagley, 2) Kent W. Barkhau, 3) Linda Behnken, 4) Elizabeth Borneman, 5) Norm Campbell, 6) Molly Grear, 7) Joel Hanson, 8) Kathleen Kreiss, 9) Olivia Magni, 10) Leah Mason, 11) CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final January 12, 2021 Darby Osborne, 12) Willoughby Peterson, 13) Catherine Riley, 14) Caitlin Way, 15) Caitlin Woolsey Assembly members discussed methods of appointment and offered opinions regarding the number of members. Municipal Clerk Sara Peterson reminded Joel Hanson had withdrawn his application. There were 14 applicants to be considered. A motion was made by Nelson to cap the Task Force at nine members. The motion PASSED by the following vote: Yes: 5 - Christianson, Nelson, Knox, Mosher, and Eisenbeisz No: 2 - Himschoot and Duncan From the public, Richard Wein reminded this was a task force, not a commission. He recommended all applicants be appointed. Nelson nominated Elizabeth Bagley, Kent W. Barkhau, Linda Behnken, Elizabeth Borneman, Norm Campbell, Molly Grear, Kathleen Kreiss, Olivia Magni, Leah Mason, Darby Osborne, Willoughby Peterson, Catherine Riley, Caitlin Way, and Caitlin Woolsey to serve on the Climate Action Task Force. Molly Grear spoke to her qualifications. Of those present, Knox asked how the applicants viewed climate change and climate resiliency around social justice. Borneman, Bagley, Riley, Osborne, Woolsey, and Magni provided responses. A vote of the Assembly was taken for the nine available seats: Bagley - 7 votes Barkhau - 6 votes Behnken - 3 votes Borneman - 4 votes Campbell - 3 votes Grear - 5 votes Kreiss - 5 votes Magni - 2 votes Mason - 1 vote Osborne - 7 votes Peterson - 4 votes Riley - 5 votes Way - 5 votes Woolsey - 6 votes There was a tie between Borneman and Peterson for the ninth seat. A vote of the Assembly was taken. Borneman - 4 votes Peterson - 3 votes The nine applicants appointed to serve on the Climate Action Task Force were: Bagley, Barkhau, Borneman, Grear, Kreiss, Osborne, Riley, Way, and Woolsey. X. UNFINISHED BUSINESS: F 20-244 Approve the issuance of a Request for Proposal for private sector development of a haul out at the Gary Paxton Industrial Park (final decision CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final January 12, 2021 postponed at December 22, 2020 assembly meeting and then again on January 12, 2021) This item was postponed at the December 22, 2020 assembly meeting. A motion was made by Nelson to direct the Municipal Administrator to issue the Request for Proposal, as written, for private sector development of a haul out at the Gary Paxton Industrial Park and advertise for a 90 day period. (No vote was taken on the main motion as amended.) Christianson mentioned possible amendments proposed by the Haul Out Task Force (HOTF). From the public, Richard Wein stated the project needed to move forward, however, the RFP had enormous asks. Jeremy Serka planned to submit a proposal and urged the assembly to keep the lease to own option available. Jeff Farvour spoke to the importance of a haul out and of the City maintaining ownership. Linda Behnken spoke in support of the changes from the task force, the City maintaining ownership of the land, and a shortened advertising period. An amendment was made by Knox to shorten the advertising period of the RFP from 90 days to 60 days. The amendment PASSED by the following vote. Yes: 5 - Mosher, Knox, Christianson, Duncan, and Himschoot No: 2 - Nelson and Eisenbeisz From the public, Richard Wein and Garry White spoke in support. Nelson didn't feel 60 days was long enough and voiced support of the City selling the land. Eisenbeisz wondered if the RFP was being altered to suit the needs of certain proposers. HOTF members, Christianson and Knox, explained the intent was to move the project forward and the decreased advertising time appeared to be doable by all potential applicants. An amendment was made by Knox to modify the scope of the project in the RFP by moving the first two bullet points under required components to the aspirational project scope. These include "Provide haul-out and vessel washdown system for the next 20 years" and "Provide float for passengers to safely get off a vessel prior to being lifted out of the water." The amendment PASSED by the following vote. Yes: 6 - Duncan, Eisenbeisz, Christianson, Himschoot, Knox, and Mosher No: 1 - Nelson From the public, Richard Wein testified in support of the amendment. Christianson and Knox explained without a washdown system only dry work could be done. The intent of the amendment was to "widen the net" to allow for creative financing/solutions. An amendment was made by Christianson to modify sentence in Section B Preferred Outcome from "Developers are expected to finance the full project development" to "Developers are expected to finance the full project CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final January 12, 2021 development, however, CBS may have limited loanable economic development funds for the initial startup." The amendment FAILED by the following vote. Yes: 1 - Christianson No: 6 - Eisenbeisz, Knox, Mosher, Duncan, Himschoot, and Nelson From the public, Richard Wein and Jeremy Serka spoke in support of the amendment. Municipal Administrator John Leach reminded any loan from the Southeast Economic Development Fund would be a participation loan and read Sitka General Code 4.44.020(A). Municipal Attorney Hanson advised the amendment would permit a conditional response. An amendment was made by Knox to remove all references to sale of property in the document and only focus on the preference of long term lease options. The amendment FAILED by the following vote. Yes: 1 - Himschoot No: 6 - Knox, Eisenbeisz, Mosher, Nelson, Christianson, and Duncan From the public, Richard Wein spoke in support. Jeremy Serka urged the Assembly to keep all options open. The Assembly discussed modifying the scoring criteria to give preference of lease options over private purchase, however, determined more input was needed from the HOTF for presentation to the Assembly. It was suggested to postpone the item to January 26. A motion was made by Himschoot to POSTPONE this item to the January 26 regular meeting. The motion PASSED by the following vote. Yes: 6 - Knox, Duncan, Mosher, Eisenbeisz, Nelson, and Christianson No: 1 - Himschoot Garry White expressed confusion as to what would be gained from delaying a final vote. Richard Wein spoke in opposition to postponement. XI. NEW BUSINESS: G 20-242 Approve the promotion of Melissa Henshaw from Deputy Clerk/Records Specialist to Community and Government Affairs Director PULLED Item PULLED from agenda. No action taken. H 21-003 Approve a sublease agreement between Northline Seafoods LLC and Sitka Salmon Alaska Holdings LLC From the public, Richard Wein spoke in support of the sublease. Municipal Administrator John Leach stated as of January 26 all parties were in CITY AND BOROUGH OF SITKA Page 5 City and Borough Assembly Minutes - Final January 12, 2021 compliance. Municipal Attorney Brian Hanson reminded this was a sublease, not an assignment of lease. It did not assign over any rights to ultimately purchase the property. A motion was made by Christianson to APPROVE a sublease agreement between Northline Seafoods LLC and Sitka Salmon Alaska Holdings LLC with the condition that all parties become compliant with Sitka General Code and authorize the Municipal Administrator to execute the document. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan I 21-005 Approve a Consent To Assignment Of Lease between the City and Borough of Sitka and Bradley L. Shaffer to Christopher H. Balovich regarding a tidelands lease seaward of property located at 479 Katlian Street Richard Wein spoke to lease length, wondered of the assessment change, and the importance of the City to receive a good return. A motion was made by Mosher that this item be APPROVED. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Nelson, Eisenbeisz, Himschoot, and Duncan J 21-006 Discussion / Direction / Decision on the timeline and development of an RFP for the former Sitka Community Hospital site Municipal Administrator John Leach reminded in October SEARHC representatives had expressed an interest in purchasing the former Sitka Community Hospital site which they currently lease. At the December 1 special assembly meeting the Administrator was given direction to initiate sale proceedings. On December 14, the City had received correspondence from SEARHC expressing a desire to pursue the purchase through a competitive bid process. Leach reviewed the draft timeline. He noted a supplemental appropriation would be necessary to obtain the appropriate support to develop a RFP, provide an independent assessment of the building, and obtain an in-depth building inspection. Assembly members spoke in support of the aggressive timeline and bringing back a supplemental appropriation at the January 26 meeting. XII. PERSONS TO BE HEARD: Marshall Albertson spoke to social justice and results from his recent genealogy test. Mia Nevarez told of incidents with Marshall Albertson. Richard Wein spoke against the sale of the former Sitka Community Hospital site and urged the assembly to retain a lease which would generate revenue. XIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Mayor - Eisenbeisz relayed he had been contacted by the Mayor of our Sister City extending well wishes for the new year. He told of a group he had been working with for beautification efforts and had chosen to use a portion of his Mayor's Contingency fund to pay for disposal of garbage. Administrator - Leach reported on vaccine distribution and statistics to be added to the COVID-19 Dashboard. CITY AND BOROUGH OF SITKA Page 6 City and Borough Assembly Minutes - Final January 12, 2021 Liaison Representatives - Knox reminded of the January 13 Port and Harbors Commission meeting. Clerk - Peterson told of upcoming meetings. Other - Nelson relayed she was updating a spreadsheet on electric rates and would provide to the Clerk for distribution to the Assembly. XIV. EXECUTIVE SESSION K 21-007 Financial Matter - Former Sitka Community Hospital Closeout A motion was made by Himschoot to go into executive session with Finance Director Melissa Haley to discuss matters related to the former Sitka Community Hospital closeout, the immediate knowledge of which would adversely affect the finances of the City and Borough of Sitka. The motion PASSED by the following vote. Yes: 7 - Eisenbeisz, Christianson, Knox, Mosher, Duncan, Himschoot, and Nelson Richard Wein stated the motion was cryptic and requested an explanation for the public. The Assembly was in recess from 9:35pm to 9:45pm. Members were in executive session from 9:45pm to 10:20pm. Duncan participated in-person. A motion was made by Knox to reconvene as the assembly in regular session. The motion PASSED by a unanimous voice vote. Mayor Eisenbeisz announced the assembly had gone into executive session to meet on a financial matter in regards to the former Sitka Community Hospital closeout. He stated the Municipal Attorney had been directed to bring back a motion at the January 26 meeting which would accomplish the Assembly's goals of the closeout. XV. ADJOURNMENT A motion was made by Knox to ADJOURN. Hearing no objections, the meeting ADJOURNED at 10:25pm. ATTEST: _____________________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 7