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, July 13, 2021 6:00 PM Assembly Chambers WORK SESSION 5:00 PM 21-119 Republic Services-Municipal Solid Waste The Assembly heard from representatives of Republic Services regarding Municipal solid waste. REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Knox and Nelson attended by videoconference. Knox left meeting at 8:10 p.m. Present: 6 - Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1 - Duncan IV. CORRESPONDENCE/AGENDA CHANGES No agenda changes. 21-120 Reminders, Calendars, and General Correspondence V. CEREMONIAL MATTERS None. CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final July 13, 2021 VI. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Municipal Departments, School District, Students and Guests (five minute time limit) Emergency Operation Center Incident Commander, Craig Warren told of the Covid-19 case rate increase. He conveyed how to be safe regardless of vaccination status: which was to social distance, wear a mask, and consult a healthcare provider on the vaccination. He stated that the EOC is strongly recommending masking of all Sitkans again. Dr. Bruhl, SEARHC CMO and Incident Commander stated the need for folks to get fully vaccinated. He reminded regardless of vaccination status, if someone had symptoms, they should get tested. VII. PERSONS TO BE HEARD Laurie Booyse, Director of Visit Sitka reported that Sitka's increase in risk levels was too high and has caused the Alaska Humanities Forum board of directors to cancel its conference that was planned for Sitka in late July. She told the Assembly that Sitka was set to welcome the first cruise ship of the season, Serenade of the Seas. She asked that the public be patient with visitors and follow precautions to keep each other safe. Jeff Budd spoke to issues regarding public testimony and voiced concern on one person speaking on every single item. Budd suggested Assembly limit how many times a person speaks at one meeting. Richard Wein spoke to the passing of some Sitkans. He expressed that freedom of speech and ability to speak is something he believes in and it's part of constitution. Christianson spoke about the EOC recommendations; encouraged all to get vaccinated. VIII. CONSENT AGENDA A motion was made by Mosher that the Consent Agenda consisting of item A be APPROVED. This motion PASSED by the following vote. Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan A 21-111 Approve the minutes of the June 22 Assembly meeting The item was APPROVED ON THE CONSENT AGENDA IX. BOARD, COMMISSION, COMMITTEE APPOINTMENTS None. X. UNFINISHED BUSINESS: B ORD 21-14 Proposing to amend Title 4 “Revenue and Finance” of the Sitka General Code by adding a new Chapter 4.27 “Excise Tax On Motor Fuel” to CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final July 13, 2021 establish an excise tax on motor fuel sold, transferred, or used in the City and Borough of Sitka, providing for administration of collecting the tax, and providing for penalties for failure to pay taxes due; and submitting the question of such an amendment to the qualified voters at the regular election on October 5, 2021 Richard Wein spoke in support of postponement. A motion was made by Himschoot that this Ordinance be POSTPONED INDEFINITELY. The motion PASSED by the following vote. Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan C ORD 21-17 Proposing to amend Title 4 “Revenue and Finance” of the Sitka General Code by adding a new subsection to Chapter 4.09 “Sales Tax” to establish a consumer’s sales tax on marijuana and marijuana products, in addition to the existing consumer’s sales tax; and amending Chapter 4.25 “Student Activities Dedicated Travel Fund” such that the tax proceeds will be deposited into and disbursed from that fund for extracurricular student activities; and submitting the question of such amendment to the qualified voters at the regular election on October 5, 2021 From the public, those speaking in support were: Rich Krupa, Mike Vieira, Frank Hauser, and Jeremy Strong. Speaking in opposition were: Michelle Cleaver, Lorraine Daly, Richard Wein, and Mike Daly. Mosher thanked everyone who spoke on this ordinance and liked the idea of supporting kids. He stated that this type of business had huge expenses and spoke to the high industry tax. A motion was made by Mosher to AMEND this Ordinance to ramp up the tax gradually, starting at 2.5% the first year and rising to the full 5% by the fourth year to give the industry time to adjust. The motion FAILED by following vote. Yes: 3 - Himschoot, Mosher, and Christianson No: 3- Knox, Eisenbeisz, and Nelson Absent: 1- Duncan Himschoot stated that the tax was on the consumer and not the business directly. She felt that this tax would benefit all students and be equitable for all. She also gave a briefing on what other municipalities marijuana taxes were. Nelson questioned if there was data on the amount on marijuana sales tax. She felt this tax was too high and would burden the local businesses. Christianson said he felt this ordinance should go to the voters. A motion was made by Himschoot that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion FAILED by the following vote. Yes: 3- Christianson, Knox, and Himschoot CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final July 13, 2021 No: 3- Mosher, Nelson, and Eisenbeisz Absent: 1- Duncan D ORD 21-16 Making supplemental appropriations for fiscal year 2022 (Lincoln Street Paving Project) Richard Wein said that a comprehensive review should have been done and it would be beneficial to educate the public. Christianson and Eisenbeisz spoke in support. A motion was made by Christianson that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan E ORD 21-18 Amending Title 15 “Public Utilities” of the Sitka General Code by updating Chapter 15.06 “Solid Waste Treatment and Refuse Collection” to reduce the refuse collection rate for customers living within the harbor system Richard Wein said he was confused on the fiscal aspects of this ordinance. Knox spoke on the generated revenues and rates. 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- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan XI. NEW BUSINESS: New Business First Reading F ORD 21-19 Making supplemental appropriations for fiscal year 2022 (Cross Trail Phase 6) Richard Wein spoke in support. Lynn Brandon, Director of Sitka Trail Works expressed this money was from the Western Federal Grant. A motion was made by Mosher that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote: Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan Additional New Business Items CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final July 13, 2021 G 21-113 Authorize the Municipal Administrator to accept additional funding in the amount of $250,000 for project 90814 (Cross Trail Phase 6) from Western Federal Lands A motion was made by Christianson, that this Item be APPROVED. The motion PASSED by the following vote. Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan H 21-112 Discussion/Direction/Decision on proposed lease terms between the City and Borough of Sitka and Sitka Community Boatyard for the development of haul out and shipyard at the Gary Paxton Industrial Park Garry White, Gary Paxton Industrial Park Board Director spoke in support and reviewed the phases and terms. Richard Wein spoke in support of the lease but questioned the financing portion of the boat yard. Linda Behnken, Sitka Community Boat Yard President felt it was best to get the project started and make this work. Financing was hard since the lease had not been signed. Jeremy Serka said the lease was essential for other steps to take place. Christianson thanked White and the GPIP Board for their work. A motion was made by Mosher to direct the Municipal Administrator to prepare a lease based on the proposed terms from Sitka Community Boat Yard. The motion PASSED by the following vote. Yes: 6- Christianson, Knox, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 1- Duncan I 21-114 Approve the Sitka Community Hospital (SCH) building sale request for proposals (RFP) evaluation and selection team Richard Wein commented on the selection team and suggested a member of the public be included. Christianson spoke in support of the team. Nelson stated she would have preferred a person with legal background be included on the panel. Municipal Administrator John Leach spoke about the team selection process and stated the evaluation team was comprised of John Leach, Melissa Haley, Michael Harmon, Amy Ainslie, and Scott Elder. Municipal Attorney Hanson addressed legal counsel participation. A motion was made by Himschoot to APPROVE the Sitka Community Hospital building sale request for proposals evaluation and selection team. The motion PASSED by the following vote. Yes: 4- Christianson, Mosher, Eisenbeisz, and Himschoot No: 1- Nelson CITY AND BOROUGH OF SITKA Page 5 City and Borough Assembly Minutes - Final July 13, 2021 Absent: 2- Knox, and Duncan J 21-115 Approve a temporary lease between the City and Borough of Sitka and Secon, Inc. for municipal property at Granite Creek Lease Area Site 7 Richard Wein spoke in support. John Leach, Municipal Administrator told about the terms of the lease. He said the City was working on a request for proposals for Granite Creek Lease Area Site 7 with the objective to advertise and evaluate proposals prior to calendar year end. A motion was made by Christianson to APPROVE a temporary lease between the City and Borough of Sitka and Secon, Inc., for municipal property at Granite Creek Lease Area Site 7 and authorize the Municipal Administrator to execute the document. Yes: 5- Christianson, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 2- Knox, and Duncan K 21-116 Discussion/Direction/Decision on City and Borough of Sitka funding priorities from American Rescue Plan Act (ARPA) of 2021 Municipal Administrator, John Leach spoke about the funding and explained the City qualified for this grant. Christianson felt that money should be placed in reserves. From the public, Richard Wein agreed with the Municipal Administrator's recommendations. A motion was made by Himschoot to APPROVE City funding priorities from American Rescue Plan Act of 2021. The motion PASSED by the following vote. Yes: 5- Christianson, Mosher, Nelson, Eisenbeisz, and Himschoot Absent: 2- Knox, and Duncan L 21-117 Discussion/Direction/Decision to approve the terms recommended by the Municipal Administrator and presented to Republic Services regarding municipal solid waste. John Leach Municipal Administrator gave a brief explanation, spoke to the June 10 letter, and expressed he was looking for guidance from the Assembly. Christianson stated he would like some acknowledgement from Republic Services on the letter dated June 10th. Mosher said ultimately action was needed and offered the idea of a landfill an alternative. M 21-118 Discussion/Direction/Decision on letter of non objection to the issuance of permit ADL 233127, 10-year aquatic farm site lease of a 15.0 acre portion of state tidelands located in No Thorofare Bay in Sitka Sound Richard Wein questioned how mitigation of invasive species would take place if they were introduced. He suggested that an insurance or bond be purchased for the area. CITY AND BOROUGH OF SITKA Page 6 City and Borough Assembly Minutes - Final July 13, 2021 Himschoot said mariculture such as what was proposed at No Thorofare Bay was important, however that not enough public notice had been given to Sitkans. Christianson said he lived near Jamestown Bay and did receive notice regarding the lease but felt he was not given enough information. Nelson commented that the letter was inappropriate. A motion was made by Himschoot to APPROVE the letter by the Municipal Administrator with the added wording: As the lessor the State of Alaska needs to assume responsibility for prevention and mitigation of potential invasive species introduction. Because of the unique qualities and high recreational value of No Thorofare Bay for the community, the City and Borough of Sitka would like to request the State to extend the comment period and provide notice to all residents through public media and posted in all harbors. The users of this bay include small boat owners of all types, but the invitation to comment was narrowed to property owners near the property proposed farmsite. The City and Borough of Sitka believes this does not capture the full scope of affected community members. The motion PASSED by the following vote. Yes: 4- Christianson, Mosher, Eisenbeisz, and Himschoot No: 1- Nelson Absent: 2- Knox, and Duncan XII. PERSONS TO BE HEARD: Richard Wein spoke to Sitka General Code Section 2.08.020. respect for the public. XIII. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Mayor - Eisenbeisz met with representatives from Royal Caribbean, told of a field trip over the weekend with Senator Murkowski in which they toured the Gary Paxton Industrial Park haul out and Green Lake Dam. Administrator - Leach stated “Coffee with the Administrator” was canceled for July 20 due to an increase in COVID-19 rates. If case rates decreased, the next session would be held August 17. Liaison Representatives - Christianson thanked the Planning Commission for their work on the Tourism Plan. Acting Municipal Clerk - Earnshaw told of vacancies on boards/commissions, reviewed the candidate filing dates for the Municipal Election and told of the seats to be filled. XIV. EXECUTIVE SESSION None. CITY AND BOROUGH OF SITKA Page 7 City and Borough Assembly Minutes - Final July 13, 2021 XV. ADJOURNMENT A motion was made by Mosher to ADJOURN. Hearing no objections, the meeting ADJOURNED at 9:05 p.m. ATTEST: _________________________ Jessica Earnshaw Acting Municipal Clerk CITY AND BOROUGH OF SITKA Page 8