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 Kevin Knox, Vice Deputy Mayor Kevin Mosher, Thor Christianson, Crystal Duncan, Rebecca Himschoot, David Miller Municipal Administrator: John Leach Municipal Attorney: Brian Hanson Municipal Clerk: Sara Peterson Tuesday, May 24, 2022 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. RECITAL OF LANDS ACKNOWLEDGEMENT IV. ROLL CALL Present: 7 - Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller V. CORRESPONDENCE/AGENDA CHANGES Knox announced item G would be postponed to a later date. 22-082 Reminders, Calendars, and General Correspondence VI. CEREMONIAL MATTERS None. VII. SPECIAL REPORTS: Government to Government, Municipal Boards/Commissions/Committees, Municipal Departments, School District, Students and Guests (five minute time limit) None. VIII. PERSONS TO BE HEARD None. CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final May 24, 2022 IX. CONSENT AGENDA A motion was made by Mosher that the Consent Agenda consisting of items A, B, C, & D be APPROVED. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller A 22-078 Approve the minutes of the May 10 Assembly meeting This item was APPROVED ON THE CONSENT AGENDA. B 22-079 Approve the following liquor license documents: 1) a liquor license renewal application submitted by Harbor Mountain Brewing Co. at 1209 Sawmill Creek Road and 2) a restaurant designation permit application and licensed premises diagram change submitted by Trinity Business Services LLC dba Halibut Point Crab and Brew at 4513 Halibut Point Road This item was APPROVED ON THE CONSENT AGENDA. C RES 22-16 Authorizing the Municipal Administrator to apply for and execute a grant with the Alaska State Library for $71,486 to create an action plan for Alaska Native boarding school history This item was APPROVED ON THE CONSENT AGENDA ON FIRST AND FINAL READING. D RES 22-17 Setting the millage rates for the fiscal year July 1, 2022 through June 30, 2023 This item was APPROVED ON THE CONSENT AGENDA ON FIRST AND FINAL READING. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS None. XI. UNFINISHED BUSINESS: E ORD 22-10 Adopting budgets and capital improvement plan for the General Fund, Internal Service Funds, and Special Revenue Funds for the fiscal year July 1, 2022 through June 30, 2023 A motion was made by Knox that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller F ORD 22-11 Adopting the budget and capital improvement plan for Enterprise Funds for the fiscal year July 1, 2022 through June 30, 2023, amending rates in Title 15 "Public Utilities" of the Sitka General Code and adopting CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final May 24, 2022 moorage rates and other harbor fees A motion was made by Himschoot that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller G ORD 22-12S Amending 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 sale tax on marijuana and marijuana products, in place of 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 4, 2022 (first reading - substitute ordinance to replace the ordinance introduced May 10) Due to time constraints, Knox stated a substitute ordinance had not been fully vetted and wouldn't be ready until the June 14 meeting. A motion was made by Knox to POSTPONE this Ordinance to the June 14 Assembly meeting. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller H ORD 22-13 Amending Title 2 “Administration” of the Sitka General Code by repealing and replacing sections of Chapter 2.04 “City and Borough Assembly” to address Assembly and public participation A motion was made by Christianson that this Ordinance be APPROVED on SECOND AND FINAL READING. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller XII. NEW BUSINESS: New Business First Reading I ORD 22-14 Amending Title 15 “Public Utilities” of the Sitka General Code by updating Chapter 15.15 “Utility Cost Subsidization Program” A motion was made by Mosher that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller Additional New Business Items J 22-077 Approve the Health Needs and Human Services Commission 2022 goals Health Needs and Human Services Commission Vice Chair Tristan Guevin addressed the Assembly and reviewed the Commission powers and duties. Guevin told of the CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final May 24, 2022 Commission's 2021 goals and provided an update on the Sitka Health Equity Report. He stated the Commission's 2022 goal was to finalize the Sitka Health Equity Report and present findings to the Assembly by December 2022. A motion was made by Himschoot that this Item be APPROVED. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller K RES 22-18 Increasing the energy independence of the City and Borough of Sitka by decarbonizing City operations by 2030 Mosher and Christianson stated the Resolution was to be used as a guiding document for the City. Knox spoke to the climate crisis and expressed hope in the addition of a Sustainability Coordinator to staff in FY23. Administrator Leach concurred and told of the efficiencies made by the City to date. In closing, he reminded of the need for community support. A motion was made by Mosher that this Resolution be APPROVED on FIRST AND FINAL READING. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller L 22-080 Discussion / Direction / Decision on a community solution for a shipyard and haulout in Sitka Assembly members spoke to the importance of a haulout, the project's complexity, and challenges with funding, in particular grant funding. Members discussed the option of a sales or excise tax to pay for a haulout facility. Such a measure would need to be put before the voters. Administrator Leach provided a summary of ideas that had been explored over the past few years. He anticipated projects cost to be $12-13M and reminded staff was continuing to explore grant opportunities. From the public, those speaking in support of a haulout were Kim Elliot and Linda Behnken. A motion was made by Knox to suspend the rules to allow for public comment. The motion PASSED by the following vote. Yes: 7 - Knox, Eisenbeisz, Himschoot, Mosher, Miller, Christianson, and Duncan A discussion of the Assembly ensued. Members suggested tasking the Administrator with drafting several options for a ballot measure that could be discussed at a work session. Administrator Leach offered another option would be to delay general fund capital projects and shift that money towards the development of a haulout by a private entity. Eisenbeisz wrapped up the discussion by stating the need for a haulout was clear while the path to build, maintain, and operate a haulout remained in question. M 22-081 Discussion / Direction / Decision on joining the Maritime Green Corridor First Mover Commitment Administrator Leach expressed hesitation without clarity of commitments. Some members conveyed a desire to wait and join after commitments were clarified and a Sustainability Coordinator was hired. Other members wished to sign on to the agreement now and have a seat at the table. CITY AND BOROUGH OF SITKA Page 4 City and Borough Assembly Minutes - Final May 24, 2022 From the public, those speaking in support of signing were Eric Jordan, Kent Barkhau, and Linda Behnken. A motion was made by Christianson to direct the Municipal Administrator to sign on to the Maritime Green Corridor First Mover Commitment. The motion PASSED by the following vote. Yes: 5- Christianson, Knox, Himschoot, Duncan, and Miller No: 2- Mosher, and Eisenbeisz XIII. PERSONS TO BE HEARD: Kent Barkhau spoke to using the funds set aside for utility subsidization to initiate a heat pump program for households that qualified for a subsidy. Barkhau also voiced support for the decarbonization resolution. Eric Jordan stated the need to reduce carbon consumption in the community. XIV. REPORTS a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Mayor - Eisenbeisz told of a recent plaque transfer ceremony at the Gary Paxton Industrial Park dock. He stated using the dock was a great opportunity, however, there had been some challenges and improvements were needed. Administrator - Leach provided an update on the Strategic Plan and announced he would no longer hold "Coffee with the Administrator" sessions. Liaison Representatives - Knox told of the recent joint work session with the Historic Preservation Commission and the Port and Harbors Commission to discuss additional parking on the Lincoln Street green strip. Duncan reported on the Health Needs and Human Services Commission meeting and announced the Police and Fire Commission scheduled May 25. Himschoot told of the School Board meeting set for June 1 to selec a board replacement. Clerk - Peterson told of June meeting dates and the vacancies to be filled in the October 4 Municipal election. XV. EXECUTIVE SESSION None. XVI. ADJOURNMENT A motion was made by Knox to ADJOURN. Hearing no objections, the meeting ADJOURNED at 8:58pm. ATTEST: _____________________________________ Sara Peterson, MMC Municipal Clerk CITY AND BOROUGH OF SITKA Page 5