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, July 12, 2022 6:00 PM Assembly Chambers REGULAR MEETING I. CALL TO ORDER II. FLAG SALUTE III. RECITAL OF LANDS ACKNOWLEDGEMENT IV. ROLL CALL Present: 6 - Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller Remote: 1 - Christianson V. CORRESPONDENCE/AGENDA CHANGES No agenda changes. 22-102 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) 22-104 Update on the State of Alaska DOT project: Sitka Sawmill Creek Road Resurfacing and Pedestrian Improvements Joe Willhoite of DOT, and Bryce Iverson with SECON, Inc. gave an update on the CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final July 12, 2022 repaving project on Sawmill Creek Road. The work that would be done would include storm drains, installment of new sidewalks and a bike lane. Willhoite said the project was expected to be done by June 27, 2023. VIII. PERSONS TO BE HEARD Ryan Herbert expressed ideas on transportation, sustainable housing, and communications. Richard Wein spoke to inflation, the economy, and vaccinations. IX. CONSENT AGENDA A motion was made by Knox that the Consent Agenda consisting of item A be approved. The motion PASSED by the following vote. Yes: 7- Christianson, Knox, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller A 22-103 Approve the minutes of the June 28 Assembly meeting This item was APPROVED ON THE CONSENT AGENDA. X. BOARD, COMMISSION, COMMITTEE APPOINTMENTS None. XI. UNFINISHED BUSINESS: None. XII. NEW BUSINESS: New Business First Reading B ORD 22-15 Proposing an appropriation from the Sitka Permanent Fund of the net proceeds received from the sale of Municipal real property, known as the Sitka Community Hospital Site, in the amount not to exceed $8,181,040.28, which was deposited into the Sitka Permanent Fund, for the purpose of funding construction of a marine vessel haulout and shipyard at the Gary Paxton Industrial Park; and submitting the question of such appropriation to the qualified voters at the regular election on October 4, 2022 Sponsors Christianson and Mosher spoke in support of the haul out and recalled past efforts. Mosher noted a potential raise grant, expected economic activity, and the importance of the haul out. Mosher summarized funding options considered and emphasized the importance of a haul out to support the marine fleet. Knox voiced importance of a haul out and questioned intent and growth of the permanent fund. He desired additional information, spoke of CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final July 12, 2022 impacts of reducing the permanent fund to ensure a benefit to the community. Although in support of the ordinance, Himschoot voiced concerns of using public money for a private sector and desired a project timeline. Miller supported a boat haul out to retain money and create jobs in the community. Duncan supported the ordinance but was concerned of unintended financial consequences. Eisenbeisz emphasized importance to protect the permanent fund and support economic development at the haul out site. From the public, those speaking in support were Garry White, Ryan Herbert, Linda Behnken, Eric Jordan, and Jeremy Serka. Richard Wein said a haul out was important, however, the removal of $8.1M from the Permanent Fund had the potential to reduce the disbursement of approximately $340K per year to the City. In addition, he suggested the haul out be a community effort, with everyone giving a portion of their Permanent Fund Dividend. Municipal Administrator, John Leach, spoke to a question of timeline. Knox questioned amending the ordinance to include payback and called Finance Director, Melissa Haley, to discuss questions. A motion was made by Knox to AMEND Ordinance 22-15 to include a line to the ballot proposition to indicate the permanent fund would be paid back to the amount of $340,000 annually until paid in full. From the public, those speaking in opposition of the amendment were, Linda Behnken, Jeremy Serka, Eric Jordan, Garry White, and Ryan Herbert. Richard Wein spoke to concerns of inflation and economic factors. Ryan Hebert questioned the funding source. Municipal Attorney, Brian Hanson, expressed concerns of an unconstitutional appropriation and advised to keep appropriations within the bounds of the Assembly. Christianson and Eisenbeisz spoke to funding concerns of amending the ballot measure to include an annual payback, and Mosher noted the legal advice. Knox withdrew the amendment. A motion was made by Christianson that this Ordinance be APPROVED on FIRST READING. The motion PASSED by the following vote. Yes: 6- Christianson, Mosher, Eisenbeisz, Himschoot, Duncan, and Miller No: 1- Knox XIII. PERSONS TO BE HEARD: Richard Wein spoke to economic definitions. Ryan Herbert spoke to building records, education funding, and building a tram system. XIV. REPORTS CITY AND BOROUGH OF SITKA Page 3 City and Borough Assembly Minutes - Final July 12, 2022 a. Mayor, b. Administrator, c. Attorney, d. Liaison Representatives, e. Clerk, f. Other Clerk- Earnshaw announced candidate filing opened July 18 and read the board/commission vacancy list. XV. EXECUTIVE SESSION None. XVI. ADJOURNMENT A motion was made by Knox to ADJOURN. Hearing no objections, the meeting ADJOURNED AT 8:05pm ATTEST: ______________________________________ Jessica Earnshaw, Acting Municipal Clerk CITY AND BOROUGH OF SITKA Page 4