LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which  distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming.  (Sentinel Photo by James Poulson)

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Daily Sitka Sentinel

Assembly Sets Stage For Utility Rate Hikes

By SHANNON HAUGLAND
Sentinel Staff Writer
    Higher rates for water, wastewater and solid waste services were included in three ordinances the Assembly introduced and passed on first reading Tuesday night.
    Each was approved on a 5-1 vote, and all three will be up for public hearing and final approval on June 26. Aaron Bean was absent.
    The main argument for the increases is that rates have not kept up with the cost of running the three city services, particularly to cover major infrastructure replacement and upgrades, or meet federal requirements.     Assembly members in general said they are sympathetic to the concerns about the additional financial burden on citizens, but felt these increases are needed to cover the cost of services.
    Bob Potrzuski, who participated by phone, said the main goal of the rate increases is to “keep basic essential services for (residents) and their neighbors working.”
    “Tell me what neighborhood isn’t going to get water when they need it, tell me what neighborhood isn’t going to get sewer when they need it,” he said. “It’s not enough for me to say I’m voting no.”
    “Past Assemblies and our community hasn’t planned for things like this,” Kevin Knox said in the discussion of the need for a costly secondary drinking water source. “Now we’re in the position to make up for lost time and get ahead of it.”
    Ben Miyasato agreed that the city needs to take care of infrastructure. “We do need to pay for our infrastructure which is getting older as we speak,” he said.
    The proposed increases for residential utility bills:
    – 22 percent increase for water, with the monthly residential rate going from $40.53 to $49.45. The increase is needed to pay for a backup water supply for the times when the Blue Lake source is shut down. The backup supply will come from Indian River, but federal regulations require a new treatment plant to make the water meet current standards. City Finance Director Jay Sweeney said in order to secure funding for the project the city must demonstrate the water fund can generate the revenue needed to pay off the loans. Eleven percent increases in water rates will also be needed in fiscal year 2020 and 2021, he said. The vote was 5-1, with Richard Wein opposed.
    – 5.4 percent increase for sewer, with monthly rates going from $56.01 to $59.09. The finance department said this increase is driven by the need to cover overdue infrastructure repairs, and avoid major failures such as the one earlier this year at the Thomsen Harbor lift station. The finance department said the city has “very little capital available” in the wastewater fund, and must rely on debt to finance the necessary repairs. The vote was 5-1 with Steven Eisenbeisz opposed.
    – 6.5 percent increase for solid waste, with monthly rates for garbage going from $30.95 to $32.96 for a 48-gallon container, $51.99 to $55.37 for a 90-gallon container, and $210.45 to $224.13 for a 350-gallon container. The vote was 5-1 with Eisenbeisz opposed.
    From the public, Kevin Mosher spoke against the increases, and said he is concerned they are based on unreliable assumptions, including usage and the population of Sitka.
    “People are tired of rate increases and they’re leaving town,” he said.
    Also testifying from the public was Matt Donohoe, who spoke against higher garbage bills and how the funds are used.
    “This is one of my pet peeves,” he said. He said island dwellers pay $25 per month for “no service,” since they have to haul their garbage to town for disposal. He said the monthly fees should go to the harbor department, not solid waste. He also objected to the $50.10 per month charge to liveaboards, which he felt was high.
    Other than that, there was no public testimony on the rate increases.
    Eisenbeisz commented during the solid waste discussion that the Assembly does listen to citizens, and he knows he will hear from people if the increases go through.
    “I wish we had people here,” he said. “Testimony on rate increases could make a difference.”
    Mayor Matt Hunter near the end of the discussion on garbage said the city will continue to explore ways to cut costs but in general has to keep providing services.
    “If we want our garbage to go away, we have to pay the cost of service,” he said. “If we don’t pay more we’ll go more in debt.” He said a number of things drive up the cost of living in Sitka, including food, housing and other goods.
    “We can be the scapegoat, you can blame me for the cost of living, but it’s more than what the Assembly does,” he said.

Property Votes
    The Assembly passed on first reading an ordinance to change the requirements for voter ratification on leases and sale of city property.
    The city attorney and an outside attorney said that in their opinion the long-standing provision in the Sitka general code requiring a public vote for city land sales and leases over a certain value is unconstitutional.
    Assembly members generally agreed with their interpretation.
    The ordinance was a substitute for a previous version, which was passed on first reading on May 24. That version would have repealed the old ordinance without providing an advisory vote as a substitute.
    The existing requirement sets the values of property for which a public vote is approved at $500,000 for land and $750,000 for leases. The new ordinance would set the value of land requiring an advisory vote prior to sale at $5 million and leases at $7.5 million, 10 times the amount of the current law.
    The goal of the ordinance, Assembly members said, was to bring Sitka into compliance with the Alaska constitution, and remove what they saw as barriers to economic development and affordable housing.
    Wein raised the strongest objections, saying he would be interested in seeing an inventory of city lands and their value, in order to assess whether the dollar amounts proposed made sense. He cast the lone vote against the ordinance.
    “I need an inventory before I make a decision as to the intelligence of those limits,” he said.
    He said he was having a hard time finding a sale of city land here that would qualify. “I defy you to say what piece of property would be $5 million that would come to a vote.”
    He proposed a tiered system to recognize the level of importance of certain pieces of land.
    Hunter, co-sponsor of the ordinance, said the dollar amount was suggested by local realtor Travis Vaughn.
    Knox spoke in favor of the ordinance, saying the requirement for a city vote has the potential to discourage economic development.
    “We want to see the economy grow and change as it needs to and not always go through a process of going to a public vote,” he said.
    Miyasato cited land sales as a potential revenue source. “This is good for business, and good for affordable housing,” Miyasato said. “I’m going to definitely vote for it.”
    Potrzuski suggested setting the land sale requirement equal to $500,000 and $750,000 in today’s dollars, or $2.5 million and $3.75 million, but said in general he is in favor of the ordinance, in order to encourage economic development and uphold the constitution.
    Wein said the Assembly will gain from having more information, and continuing to work on the ordinance, in order to protect the city from not getting a fair deal on its land.
    “I want to put Sitka first. We need a way in which it’s completely transparent and our land isn’t completely raided,” he said.
    An amendment to change the amount to 2018 values failed 1-5, with Wein in favor; the ordinance passed 5-1 with Wein opposed. It will be up for final reading June 26.

Fisheries Enhancement
    The Assembly debated the merits of three fisheries-related proposals before awarding three grants totaling $42,000, from the proceeds of the city’s $10 per box on fish landed in Sitka by charter clients.
    Voters approved the tax in 2004, with the Assembly approving the allocation of the proceeds among the harbor fund (30 percent), the general fund (40 percent) and 30 percent to the “fisheries enhancement fund, available to be used for any fisheries enhancement proposal.”
    The Chinook Fisheries Coalition received $9,500, the Alaska Longline Fishermen’s Association received $10,000, and the Sitka Sound Science Center received $22,500 for its hatchery programs.
    Much of the discussion was over the definition of “enhancement,” with the majority of Assembly members deciding in the end that all were worthy projects and all qualified as “enhancement” projects in one way or another.
    ALFA asked for $10,000 to “enhance Sitka’s fisheries through our Young Fishermen’s programs.” That includes expansion of the commercial deckhand apprenticeship program, inter-generational transfer of permits and quota to Sitka residents, mentorship of new fishermen, and the launch of an affordable entry-level fishery for under-utilized pelagic rockfish. The vote was 5-1, with Hunter voting against.
    CFC asked for a match to its $9,500 in membership dues to help with “an unexpected and unanticipated need for an additional legislative liaison; one that will put Alaskan interests first and will work aggressively to recover lost Chinook salmon allocations.” The vote was 4-2, with Knox and Hunter voting against.
    The science center asked for $42,000 to help produce fish for charter, commercial, sport and subsistence harvest in Sitka Sound and Deep Inlet. “The salmon Sitka Sound Science Center releases in front of our facility are valued at another $2 million over the last 10 years just for the commercial catch. ... Our hatchery fish are also caught by recreational and subsistence fishermen in Sitka Sound and surrounding waters ....” The vote was 6-0.
    Knox moved for reconsideration of the allocation at the next meeting for grants to SSSC and ALFA.

Other Business
    On other agenda items:
    – Eisenbeisz, Sitka Community Hospital liaison, provided additional updates about the hospital, including the receipt of 73 applications so far for the CEO position, to replace Rob Allen this fall. Only 13 of the applications are complete, he said.
    – Library Commission liaison Matt Hunter said library director Andrew Murphy, who was hired last fall, has resigned. Hunter said Murphy “unexpectedly found his dream job became available” elsewhere.
    – city clerk Sara Peterson said the filing period for fall elections will open July 15 and close on Aug. 3. Positions open are mayor, two Assembly seats and two seats on the School Board.
    Also, the Assembly:
    – approved a resolution to seek a $121,966 Edward Byrne Memorial Justice Assistance Grant to cover a drug investigations police officer.
    – passed a resolution setting the property tax rate at 6 mills, unchanged since last year, with 2 mills going to general purposes, and 4 mills going to schools. The assessed value of all real and personal property within the city is $1.1 billion. Wein noted that the assessed valuation of taxable property in Sitka has gone up by 3.4 percent since last year. A total of 555 homeowners 65 and over receive the state-mandated $150,000 exemption in property valuation, totaling $496,100. He said he will be curious to see how many people don’t accept the $900 tax break as some said they would at a budget meeting.
    – appointed Christopher Wright to a position on the Parks and Recreation Committee; Amy Zanuzoski to the Local Emergency Planning Committee and Ana Dittmar and Roberta Littlefield to the Historic Preservation Commission.
    – approved a budget adjustment to recognize a Justice Assistance Grant, for $17,285 for the police department and Southeast Alaska Cities Against Drugs division.

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20 YEARS AGO

March 2004

Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.

50 YEARS AGO

March 1974

Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.

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