By SHANNON HAUGLAND
Sentinel Staff Writer
After extensive public comment and debate, the Assembly on Tuesday advanced four proposed changes to recently updated permit policies and fees at Harrigan Centennial Hall.
The Assembly on Dec. 13 approved permit fee increases and a new sealed bidding system for awarding vendor and excursion spaces in front of and in back of the building, among other changes.
The changes also included a permit and fee system for drop-off and pick-up spaces. Previously there was no charge for this usage.
At the meeting Tuesday night some Assembly members said the four ordinances proposing amendments were attempts to address concerns brought up by a number of businesses at the Dec. 13 meeting. Three of them passed by clear majorities on first reading, and one received a 3-3 vote. However, that measure will advance to second reading along with the others because of the provision in the charter that says ordinances will advance to second reading unless they receive four or more votes against them on first reading.
The four ordinances call for:
– removing the permit fees for electric vehicles. The vote was 6-0.
– doubling the fees for buses with 30 and more passengers who pick up and drop off, from $1,000 per bus per year to $2,000. The vote was 3-3.
– lengthening the permit term from one year to three, with staggered terms for the initial years. The vote was 6-0.
– changing the sealed bid system for vendors and outfitters to an outcry auction. The vote was 5-1.
In other business Tuesday night the Assembly reappointed Chris Spivey to the Sitka Planning Commission; Joseph D’Arienzo to the Tree and Landscape Committee; Scott Wagner to the Local Emergency Planning Commission; and Jeff Budd to the Library Commission.
The Assembly also appointed Andrew Callistini to the Port and Harbors Commission.
Amendments
Excursion and tour operators in general said they felt that changes in Centennial Hall commercial user fees were due, but were concerned about their potential to create uncertainty and possibly discord among businesses.
At the Dec. 13 meeting and Tuesday, they asked whether the changes could be put off for more input by businesses. A few pointed out they were still rebuilding after the pandemic.
“It seemed like it was a ready, fire, aim type of situation,” Neil McDermott said Tz uesday, commenting about the permit changes. “Everyone seemed to have said that they had reservations about the ordinance; however, we passed it and then decided to move forward with the way it was ...”
Assembly members approved the initial permit fee increases and policy changes at the last meeting. City Administrator John Leach said at the time the goal was to get the best value for the city from private commercial use of the building, especially since costs of running the facility have gone up with the sharp increase in visitors this year and higher increases expected next summer.
The four ordinances presented Tuesday night were proposals by Assembly members taking into account the testimony of business representatives testifying on Dec. 13.
Leach cited such costs as extra staff for maintenance, removing oil stains on the street, janitorial service, cleaning restrooms, directing traffic and managing shuttle bus queues as the reason the new fee structure was needed.
Electric Vehicles
The first ordinance passed without much controversy, with all four agreeing waiving permit fees for electric vehicles picking up and dropping off was a good way to go.
The fees as originally set are $250 to $1,000 per vehicle per year depending on size, and a 50 percent break for electric vehicles. The measure passed Tuesday night eliminates the fee entirely for electric buses. “I see this as a small thing but it has potential over the years of making a difference,” said co-sponsor Thor Christianson.
“This is a pittance in terms of buying a new bus,” co-sponsor Tim Pike said. “But I sense that we’ve kind of had to start this conversation and it’s clear people are thinking about going electric anyway. So if we can just provide people with a boost on that or that are headed in that direction, or relieve them of a cost as they move toward that, I think that was the intent.”
Kevin Mosher said the ordinance sends a message to encourage electrification, which he said would have a positive effect in the future. The strategic plan goal of sustainability was also cited by a few members, and the measure passed 6-0.
Doubling Bus Fees
The vote to double the drop-off/pickup permit fees for buses failed to get a majority, but will advance to second reading. Pike, Carlson and Christianson voted in favor and Mosher, Chris Ystad and Mayor Steven Eisenbeisz were against.
Eisenbeisz in voting against said he was concerned about the negative impact on smaller businesses, including Sitka Tours. It calls for the annual permit fee to increase from $1,000 per bus to $2,000.
“This is an attempt to equalize the amounts we’re charging,” Christianson said, comparing the figure to the per-person permit among vehicles of various sizes. “Right now the smaller passengers vehicles are paying significantly more per passenger.”
A few of the points raised were that buses are the most efficient means to get people from the cruise dock to Centennial Hall, and Don Kluting said raising their costs might result in fewer buses and fewer people coming to town.
Trudy Prewitt, who has been operating tour buses for decades, said she was pleased to have had a busy summer after some tough years during the pandemic. She uses diesel buses, but said, “I apologize - the smell.”
Michelle Barker suggested ramping up fees, instead of implementing them all at once. A similar process was employed by the Forest Service when that agency increased permit fees, she said.
“We were shut down for two years and we’re so in debt, and we’re just really working to get all that COVID debt paid off,” said Michelle Barker, owner of Sitka Bike and Hike.
Three-year, Staggered Permits
The ordinance to set a three-year term for permits passed 6-0.
At first there will be one-, two- and three-year permits, and when each one expires it will be replaced with a three-year permit. The permits are for those selling excursions and tours in front of the building; and selling excursions from the back of the building, which also has space for storing equipment.
Business owners had a number of technical questions about how bidding for multiple years and staggering terms would work; Eisenbeisz expressed concerns about too much interpretation being put on city staff, which may elicit “passioned responses” from businesses.
Outcry Auction
In a related item, the Assembly voted 5-1 to switch to an open outcry auction instead of sealed bids for vendor and outfitter spaces in front of and in back of the building.
Eisenbeisz voted no.
Some testifying said any kind of a bid system might create a competitive and unpleasant environment among businesses, and suggested longevity be considered, or increasing the number of spaces. But all who spoke said they favored an outcry auction over closed bidding system, since businesses will have a better chance at securing a spot, since they will know the highest bid.
In the reports section, City Administrator John Leach showed slides of the restroom destroyed by fire at the ballfields, and discussed the time and money that repairs will cost. He said the restrooms once repaired will no longer be open when unsupervised.
