FIFTH OPENING – The Sitka seine boats Hukilau and Rose Lee pump herring aboard this afternoon at the end of Deep Inlet during the fifth opening in the Sitka Sound sac roe herring fishery. The opening was being held in two locations beginning at 11 a.m. (Sentinel Photo by James Poulson) 

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Daily Sitka Sentinel

Assembly to Call For Bids in Hospital Deal

By SHANNON HAUGLAND
Sentinel Staff Writer

The Assembly unanimously approved a motion Tuesday night to call for offers to purchase or lease the old Sitka Community Hospital buildings and grounds.

The decision came after a more than hour-long executive session to discuss the property appraisal, which was received on April 30.

The motion was to “approve the Request for Proposals for the sale of the former Sitka Community Hospital site and associated properties with the revisions made in executive session.”

The amount of the appraisal wasn’t disclosed to the public. The city will start advertising its request for proposals within the next two weeks, city officials said.

Planning Director Amy Ainslie explained why the appraisal wasn’t made public.

“If we are going to lease or sell the property, we want to make sure citizens get the best return,” Ainslie said. “We want to get the most competitive offers we can.”

City Administrator John Leach added, “We’re doing our homework on what the property is truly worth. We expect proposers to do the same, and if they want to get their own appraisal to present their best offer we would invite that.”

Responders will have 60 days to submit a proposal once the RFP is issued.

SEARHC, a nonprofit consortium that provides health care services for Sitka, has told the city it wants to buy the property its currently leasing, located at 209 Moller Drive, 202 and 204 Brady Street and 302 Gavan Street, which SEARHC.

The draft RFP is at cityofsitka.com, under Assembly Agenda and Minutes.

SEARHC plans to expand and upgrade the property, which it now uses for rehabilitation services, long-term care and a number of outpatient services.

There was little discussion about the RFP at Tuesday’s Assembly meeting before or after the executive session. The reason cited for the closed-door session was “under the statutory category of discussing matters the immediate knowledge of which would adversely affect the city and borough of Sitka.”

From the public, Richard Wein, a former Assembly member, objected to the executive session, saying the city was not going to ask for less than the assessed value and therefore there was nothing to be gained by keeping the appraisal confidential. He advocated for giving the buildings to SEARHC, but leasing the land to provide a regular revenue stream for the city.

Assembly member Valorie Nelson said she generally agreed with Wein, and also wanted to discuss potential conflicts of interest on the Assembly. She said even if members say they don’t have a conflict, they might have “a bias, and reason to want to push this along. ...”

“What is ethical?” she said.

No one responded to her question and the executive session followed.

All seven Assembly members were present for the meeting.

In a related matter, SEARHC presented an update on its operations, including expansion plans, increase in specialty clinics and COVID-19 response. 

President and CEO Charles Clement also mentioned new employee housing planned for SEARHC property next to the Sealing Cove business center on Alice Island, and multifamily housing on Halibut Point Road, where the Moore Clinic once stood.

Clement told the Assembly part of the planning includes upgrades to utilities, and working with the city on any issues related to that. There was also a short discussion about pricing of services at Mt. Edgecumbe Hospital.

Garbage

The city’s solid waste contractor Republic Services presented a PowerPoint outlining the city’s options for future garbage shipments, and recommendations for changes.

Republic is facing a June 1 deadline set by Alaska Marine Lines, which is going to “discontinue service in open containers without an adopted plan to transition to compacted waste in sealed containers,” company officials told the Assembly.

Various options were presented for the city, which currently compacts its waste with construction machinery but doesn’t have a compactor and baler. Republic’s second to last slide recommended the city “transition to compacted solid waste in closed top containers through the implementation of a pre-load compactor at the Sitka transfer facility.”

Company officials said AML’s main concern is fires and fire risks on the barges, and believe that compacted waste would reduce the risk of fires. 

No decisions were made and the Assembly took no action, although Mayor Steven Eisenbeisz said he felt the presentation was “too little, too late” after years of working with the company. He said he felt “ramrodded” by the options presented, and said he was disappointed that the company has not presented studies or evidence to show how compacting garbage and shipping in closed containers will reduce fire risk.

“It will be interesting to see what June 1 brings,” he said.

Leach said today that the city and waste companies are “working on options,” he said.

“City staff is recommending we continue to act in accordance with our contractual obligation,” he said. “We are obviously concerned about fire risk and we would like to address fire risk.”

But Leach also said he hasn’t seen any studies that show the “stakeholder group” recommendation for compaction in closed top containers will increase fire safety. He said he’s not been shown why some of the city suggestions for improvements will not work, and if the city makes the major investments required how the city will benefit.

“What savings does the city and borough of Sitka see?” he said. “If we want to be a stakeholder group it has to be more than the city investing serious capital.”

City Budget

The city passed the 2021-22 budgets on first reading on a 6-1 vote, with Valorie Nelson voting against. 

The majority of Assembly members had positive comments about the budget process before six voted in favor.

Nelson voted against both ordinances, saying her main objections were additional staff positions in the budget, and major salary increases among a number of city staff.

Thor Christianson said a number of the new positions would add to the city’s efficiency and have already saved the city money.

But in general the discussion was brief, and the votes taken in short order. One vote was to approve the general fund, internal service funds and special revenue fund.

The second was to adopt the budgets and capital improvement funds for all enterprise funds, which include rate increases for electric (2.5 percent per kwh), wastewater (2 percent), water (2 percent), garbage (4.5 percent monthly charge, 2.5 percent transfer station dropoff) and harbors (5 percent).

The rate increases are needed to keep up with inflation and ensure the city can keep its infrastructure operating, City Finance Director Melissa Haley said today. 

Other Items

In other business, the Assembly:

- approved liquor license renewal applications for 1) Mean Queen upstairs and downstairs at 205 Harbor Drive, and 2) Trinity Business Services LLC dba Halibut Point Crab & Brew at 4513 Halibut Point Road.

- passed an ordinance on final reading to make supplemental appropriations for fiscal year 2021 (Sitka Community Hospital Dedicated Fund), totaling $425,000 to cover long-term contracts, legal expenses, and increased unemployment costs, associated with the purchase of the SCH business in 2019. Nelson voted against.

- said they were open to a 5,625-square-foot lease and ordinance related to a lease for a cell tower on Harbor Mountain Bypass Road. The city received one response to the RFP on the lease area, from Vertical Bridge/New Horizons, which is working with Verizon Wireless to install a cell tower. 

- approved an amendment to an employee agreement between the City and Borough of Sitka and Brian Hanson on a 7-0 vote.

In staff comments at the end of the meeting, Hanson commended former Finance Director Jay Sweeney for his years of service to the city, noting his considerable skills and integrity. He retired May 4.

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20 YEARS AGO

March 2004

Matthew C. Hunter of Sitka recently returned from Cuba as part of a St. Olaf College International and Off-Campus Studies program. Hunter, a junior physics major at St. Olaf College, is the son of Robert and Kim Hunter of Sitka.


50 YEARS AGO

March 1974

Eighth graders have returned from a visit to Juneau to see the Legislature. They had worked for it since Christmas vacation ... Clarice Johnson’s idea of a “White Elephant” sales was chosen as the best money-maker; Joe Roth won the political cartoon assignment; highest government test scorers were Ken Armstrong, Joanna Hearn, Linda Montgomery, Lisa Henry, Calvin Taylor and David Licari .....

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