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Assembly to Tackle Sharing of $9.5M

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By SHANNON HAUGLAND
Sentinel Staff Writer

The Assembly will hold a special meeting tonight to consider options and methods for distributing Sitka’s $14 million share of federal coronavirus impact CARES Act funds.

The meeting will be 6 p.m. at Harrigan Centennial Hall. 

At Tuesday’s regular Assembly meeting, ordinances were introduced dedicating up to $4.5 million from the $14 million to subsidies on harbor moorage and utility bills. Those ordinances will be up for public hearing and a vote on final approval on June 9.

But the Assembly still faces decisions on the remaining $9.5 million and needs to pick a direction for the funds within the guidelines and restrictions on the uses of the funds.

Earlier this month City Administrator John Leach proposed forming a working group to provide the Assembly with a recommendation for criteria for applicants, and distribution to various sectors. “All distribution of funds will continue to be ultimately approved by the Assembly,” he added in a memo.

There were no objections from the Assembly, and Leach subsequently selected a half-dozen Sitkans to join him in the working group. They were:

– John Leach, city administrator.

– Lisa Gassman, Sitka Tribe of Alaska general manager.

– Kevin Mosher and Kevin Knox, Assembly members.

– Jay Sweeney and Melissa Haley, from the city finance department.

– Brian Hanson, city attorney.

– Melissa Henshaw, deputy city clerk.

At the Tuesday Assembly meeting, Leach reported that after receiving complaints from the public he has disbanded the working group.

“Unfortunately,” he said, “the local nonprofit sector did not feel that their concerns were being adequately heard and addressed by not having a representative assigned to the working group. However, as potential recipients or sub-grantees of CARES funds, I felt their direct involvement of the WG would present a conflict of interest since their involvement would include funding design for nonprofit grants.”

He continued: “Due to the overwhelming pressure for direct involvement from the nonprofit sector I disbanded the working group and postponed all meetings and work sessions until the Assembly can consider the establishment and membership of the recommended WG by motion.”

Leach proposed some options for the Assembly to consider:

– Approve the working group as recommended.

– Do not create a working group and leave all CARES Act funding design and disbursement decisions to the Assembly.

Video coverage of the meeting will be carried on the city’s YouTube channel, and through the city website, at cityofsitka.com. A link is also available on the city’s Facebook page.