The first large cruise ship of the season arrived in Sitka on Wednesday (7-21-21), the first port call in the community by a big ship since September of 2019.

The arrival of the Serenade of the Seas coincided with a major coronavirus outbreak in Sitka, but that didn’t seem to affect the number of passengers visiting town — all of whom were vaccinated, except for children.   There simply weren’t that many of them.

It’s mid-afternoon, at the Back Door Cafe just down the street from the Cable House. This is the urban center, the heartbeat of Sitka, and you can barely feel a pulse. The chairs are on the tables and two or three folks are getting coffee to go. 

There’s a couple of shoppers in the bookstore, one in the Artists Cooperative. The day is breezy and gray — not bad for Southeast Alaska actually. Maybe the action is a couple of blocks away at centennial hall, where cruise passengers catch their shuttles to the dock.

KCAW – I’m walking around Sitka at about 2 p.m. on the 21st of July, the first day of the cruise season in Sitka. Royal Carribean’s Serenade of the Seas is in and Sitka is very quiet. Two hours until folks have to reboard the bus here at Harrigan Centennial Hall, and just a few scattered people here and there, walking around town. All in all much more quiet than I expected. Here are some folks who have some fish & chips. Let’s see what they have to say.

McDaniels – Pam and Patrick McDaniels from Layton, Utah.

KCAW – How’s your cruise going?

McDaniels – It’s awesome. A lot of precautions, which is good.

KCAW – Everybody’s vaccinated on the boat?

McDaniels – Except for children who are not old enough to be vaccinated. But everyone else is required, and they make us wear a white wristband to verify that we’ve been vaccinated.

The McDaniels are enjoying the low density on the Serenade of the Seas. The ship has a capacity of 2,476 passengers, but this inaugural cruise has one-quarter of that load, with just 632 guests and 804 crew. (This is by design — Royal Carribean’s start up plan — according to Fred Reeder, the Sitka port director for the Cruise Line Agencies of Alaska.)

So the McDaniels feel safe on the ship — but what about in Sitka? The community is experiencing the biggest coronavirus surge of the pandemic, with over 200 active cases. 

 “We’ve heard that. So is every place. So is Utah where we’re at,” said Pam McDaniels. “There were 800 new cases in Salt Lake, just in the last 24 hours.”

The arrival of the Serenade of the Seas is the first of around two dozen cruise ship calls scheduled for Sitka between now and the end of September, although many late season ships cancel when the weather worsens on the outer coast. It did not take the non-existent 2020 cruise season to refocus the strategies of Sitka’s downtown merchants. 

Across from Harrigan Centennial Hall, in prime cruise passenger turf, Shirley Robards is staffing the desk at Stereo North. She says she hasn’t seen much traffic today, but that’s not really her market anymore.

“We were not dependent on cruise passengers,” said Robards. “We used to be, but that was before Amazon. When Amazon came in it kind of took off. And Tuffy (Shirley’s son) thought about it and thought about it, and said I think we’re going to do furniture.”

And just because she’s not tethered to the cruise trade doesn’t mean that Robards doesn’t care. She’s an advocate — at the highest levels — for a visitor industry rebound that benefits everyone.

“I think it’s going to work out, I really do,” she said. “I really believe in God and I think that the people of Sitka just have to hang on and do what you can do and hope for the best.”

The Serenade of the Seas is scheduled to call again in Sitka on Wednesday, July 28. Holland America’s  Nieuw Amsterdam is scheduled at the same time, giving Sitka it’s first two-ship day of short — and quiet — 2021 season.

With the holiday shopping season in full swing, Sitka’s downtown retailers are seeing the usual uptick in sales for this time of year — but business could be better. Between the downturn in Alaska’s economy, and ever-increasing pressure from online sales, Sitka’s brick-and-mortar stores remain open — and hopeful.

Nugget, the corgi, barking, running after ball.

On Sitka’s main street exactly one week after Black Friday, things are pretty quiet. Nugget, the corgi, can chase a ball down the entire length of Russell’s, an outdoor store that’s been in this location for 100 years — maybe more.

“The furthest back that we can find right now is 1897,” said Ashley Eisenbeisz, who with her husband Steven acquired the store from her uncle, Ron McClain, seven years  ago. McClain’s parents — her grandparents — bought it in 1956.

“There’s been a few updates to the building, but the downstairs floor is turning 100,” said Eisenbeisz. “It’s all original hardwood floor, so we’re getting ready to have a fun little celebration.”

That celebration will be in 2020. Right now, it’s the heart of the holiday shopping season, and Eisenbeisz wishes it were just a little bit merrier.

“The Christmas season is a very big season for us, just to be able to stay open seven days a week, keep the lights on, keep our employees here. It can be a make-or-break season for us,” she said.

And so far, Russell’s is making it. So is Stereo North, just down the block.

Shirley Robards, whose family owns Stereo North, says business has been good in recent years, citing a successful transition out of the CD market and into a diverse array of furniture, appliances, and more. She says this year’s no tax day and Black Friday brought in a good amount of customers. 

“No tax day, we did really well,” Robards said. “I was happy. Lot of people were spending their money, and that was good.” 

But, she says, it wasn’t as good as previous years, a downturn she attributes to the continued rise of online retail. 

“It was a little less, like I said, because I’m sure a lot of people are shopping, you know, on Amazon and I think that’s why we’re losing some of the stores downtown. I’m sorry to see that,” Robards said.

On the other side of Lincoln Street, Ashia Lane manages Old Harbor Books. She hasn’t had time to crunch the sales numbers yet to see how they compare to previous years, but says the store was busy on Black Friday, which also coincided with the Art Walk. 

“We had and Art Walk on Friday evening that I think had a record number of visitors in the store,” said Lane, “and it looked like sales went very well over the weekend.” 

Right next door to Old Harbor Books is a new boutique, “Galanin & Klein.” Co-owner Rachel Klein is at the sales counter this season. 

“It was a really good weekend for us,” said Klein. “I think the tax free helped, we had consistent sales on Friday and Saturday. And then, actually, the art walk was a huge boost on Friday.

She says that’s when their shop was its busiest. Shop small Saturday wasn’t as busy. Galanin & Klein opened in April, so she can’t compare sales from the previous year like other downtown businesses.

“I only have a few months to go on, but based on September after the cruise ship season and last month in  October, it was definitely a big boost in sales, so we’re happy about that,” Klein said.

Galanin & Klein is a study in contrasts to Russell’s: One, a brand new brick-and-mortar store opened by young, media-savvy owners; the other, a multi-generational business that has undergone many iterations en route to its current success, and is literally polishing its century-old floors.

Ashley Eisenbeisz, with Russell’s, says she understands that many Sitkans are feeling the pinch right now, but the city’s Black Friday sales tax holiday helps stores like hers stay in the game — and deliver, when mail order doesn’t.

“It’s super-hard to compete with any of the giant retailers doing massive, site-wide discounts,” Eisenbeisz said. “But I think just watching what’s going on in the economy, staying current on what’s happening with the different vendors and brands that you carry, and just trying to do the best that you can as far as discounts and showing people what you have available, and you don’t have to wait for it in the mail, or have it get lost in Anchorage somewhere and not get here by Christmas.”

Timeliness may prove to be the weak link for package deliveries this season. KCAW reached out to west coast United States Postal Service representative Brian Sperry, who responded in an email that the Sitka Post Office has seen a 70-75 percent increase in package volume this year alone. Pressed for details on how local post offices are adjusting to the increased load, Sperry declined to be interviewed. KCAW is preparing a formal request for additional information.

Nugget barks, drops ball.

Nugget, the Russell’s corgi, will deliver this ball as long as anyone’s got the energy to throw it. I stop just long enough to raise my camera and take a picture of Ashley Eisenbeisz and her three-and-a-half month old son Fisher. Dad Steven is behind the counter.

“Just raising another generation of Russell’s owner, possibly, if he wants to stay and do this,” she said.

KCAW’s Katherine Rose and Ari Snider contributed to this story.

The outcome of two ballot propositions after Tuesday night’s municipal election was conclusive. The senior sales tax exemption will go back on the books and smoking will be banned in most public places per the new state law. (Emily Kwong/KCAW photo)

Sitka’s municipal election saw high voter turnout and definitive outcomes for two ballot propositions. The senior sales tax will be reinstated and Sitka bars will not be exempt from a statewide smoking ban.

Gary Paxton (1372 votes, profile), a former city administrator, is now the mayor-elect. Candidates with the highest votes include Kevin Mosher ( 1029 votes, profile) and Valorie Nelson (906 votes, profile) for the two open seats on the Sitka Assembly and Eric Van Cise (1546 votes, profile) and Amy Morrison (1411 votes, profile) for two open seats on the Sitka School Board.

If these results stand after city hall counts absentee ballots are counted on Friday, Ben Miyasato will step down from the Sitka Assembly and Cass Pook from the Sitka School board. 

Tuesday night’s municipal election saw the highest voter turnout since 2010, with 2424 votes cast between precincts 1 and 2. The city also issued 550 absentee/advanced voting ballots and has received 532 in the mail so far. They will count those ballots and question ballots tomorrow, October 5th, at 3 p.m. at city hall. 

Ballot Propositions: Prop 1 passes, Prop 2 fails

Voters approved reinstating the senior sales tax exemption by a 3 to 2 margin. Shirley Robards gathered the necessary signatures to put this issue on the ballot. The night of the election, she told KCAW that she was very happy with the outcome.

“The older people really paid their dues. I know that they think that there will be nothing but old people and we won’t be able to afford anything, but I don’t think that’s going to happen,” Robards said.

Robards is referring to demographic data, which predicts that senior citizens will represent a greater portion of Sitka’s population in the coming decades.

This outcome reverses the Assembly’s decision to replace the senior sales tax exemption with a low-income rebate program. Petersburg put a question on their October ballot, asking voters if they wanted to copy what Sitka did. According to KFSK, that measure failed by a 3 to 1 margin.

October 1st has brought a new statewide smoking ban into effect, which prohibits smoking at bars and restaurants. State statute includes an opt-out provision. Sitka was also the only community in Alaska to take advantage of that.

While staff at Ernie’s Old Time Saloon rallied – gathering the necessary signatures to put this question on the ballot – voters turned it down on election day.

This means that establishments that once allowed smoking–Ernie’s, the Pioneer Bar, and American Legion Post 13–must now remove ashtrays and put up no-smoking signs. Smokers now have to take it outside, ten feet from the building.  

Roll-out of the law begins with a campaign to educate businesses on how to comply. During a KCAW call-in show last month, Emily Neno, Alaska Government Relations Director with the American Cancer Society, said that in her experience, clean air laws are self-enforcing. “People get used to them very quickly and simply step outside to smoke,” Nenon said.

Nenon added that the smoking ban does not affect local nor state marijuana laws. The Marijuana Control Board is currently seeking comment for how to regulate marijuana cafes.

Sitka Assembly: Paxton for Mayor; Mosher, Nelson receive most votes for Assembly 

Sitka elected a new mayor, 79-year-old Gary Paxton. He spent three decades in the U.S. Army and served as Sitka’s municipal administrator during the critical period when the Sitka pulp mill closed.

Paxton said that once he gets the mayor’s gavel in his hand, his first priority was to “bring a sense of peace and work together to solve our problems.” He especially wants the city to negotiate with SEARHC in a way that the fosters community trust.

“Have more open meetings perhaps, less executive sessions, so that we can stop some of the conspiracy theories which are always prominent in small towns. I want to do a good job and be kind to people,” Paxton.

Negotiations between the city and SEARHC over Sitka Community Hospital will likely begin this month.

Paxton will be sworn in on October 9th alongside two new Assembly members. With Kevin Mosher and Valorie Nelson earning the highest number of votes, they will claim those seats unless absentee/advanced voting ballots tip the scale. Assembly candidate Brinnen Carter trails behind Nelson by 46 votes. 

Sitka School Board: Van Cise and Morrison elected; Pook unseated

Sitka voters returned one school board member, and replaced another, during Tuesday’s municipal election.

Incumbent Eric Van Cise was the leader in the three-way race, with 1,546 votes. Challenger Amy Morrison took the second seat, with 1,411 votes. Incumbent Cass Pook came in a strong third with 1,127 votes, but with only two seats open she’ll be taking her leave after 17 years of service on the Sitka School Board.

Van Cise says it’s easier coming to a second term with the experience of his first term under his belt — but the district has been under financial pressure, and the board laid off teaching staff for the first time in recent memory last year. He wants guidance from the public in shaping next year’s budget.

“I’d really like to — with my fellow board members — find more creative ways to get community input,” Van Cise said. “It’s going to be tight, it’s going to be lean, and we’ve trimmed everything we can and it really is going to be very, very critical to get as much input as we can.”

Amy Morrison campaigned on her over twenty years of business experience in Sitka. She doesn’t have any illusions about what it takes to oversee the community’s public schools.

“I’m ready to hit the ground running. I realize that there’s a lot I need to learn about everything that goes into the schools. I’m excited to jump in and start learning and get involved,” Morrison said. 

Both Van Cise and Morrison have won three-year terms on the board. Morrison will be sworn in a special meeting at 6 p.m. Monday, October 15, after the Sitka assembly certifies the election results at its next regular meeting on October 9th.

Raven Radio dedicated a live call-in show on Monday, September 24th to two questions on Sitka’s municipal ballot. (Emily Kwong/KCAW photo)

Our third and final election forum on Raven Radio this month shifted away from the people on the ballot – mayoral candidates, assembly candidates, and school board candidates – to policies on the ballot.

There are two questions on Sitka’s municipal ballot October 2nd. Both were put there through a citizen-led petition. KCAW’s Emily Kwong hosted a 90-minute call in show for listeners, supporters, and critics of the ballot questions to air their views. 

PROPOSITION 1: Should the Assembly’s decision to replace the senior sales tax exemption with a low-income rebate program be reversed?

If Proposition No. 1 passes, the senior sales tax exemption will go back on the books. The rebate program for low-income seniors, which begins in 2019, will be canceled.

If Proposition No. 1 does not pass, those over the age of 65 would continue to pay sales tax on their purchases.

During our forum, Shirley Robards and John Stein joined us to share their views on voting “Yes” and “No” to Proposition 1, respectively. Read more about the Assembly’s decision here. Following in Sitka’s footsteps, a similar question will also appear on the ballot in Petersburg. 

Listen to the full 41-minute Prop 1 (Senior Sales Tax) Forum 

Downloadable audio.

PROPOSITION 2: Should Sitka be exempt from Alaska’s statewide ban, which takes effect October 1st? 

If Proposition No. 2 passes, Sitka would be exempt from a statewide smoking ban in certain public places. Smoking would continue inside the Pioneer Bar,  American Legion Post 13, and Ernie’s Old Time Saloon. The Moose Lodge recently banned smoking within their establishment.

If Proposition 2 does not pass, smoking will be banned in those establishments per the new state law (AS 18.35.301-18.35.350). Smokers must take their cigarettes outside at a distance of 10 feet.

During our forum, Margaret Carlson and Doug Osborne joined us to share their views on voting “Yes” and “No” to Proposition 2, respectively. We were also joined by Emily Nenon, Alaska’s Government Relations Director with the American Cancer Society, and Joe Darnell, chief investigator for the state’s tobacco program, to answer technical questions about the new state law. Read more about the debate here. Sitka is the only community in Alaska to put a smoking opt-out question on the local ballot.  

Listen to the full 39-minute Prop 2 (Smoking Ban) Forum

Downloadable audio.

Raven Radio’s 2018 Election Hub

Election Day is Tuesday, October 2nd. Precincts 1 and 2 voters will cast ballots at Harrigan Centennial Hall. Polls will be open on Tuesday, October 2nd from 7 a.m. to 8 p.m. Advanced (in-person) voting is available now weekdays from 9:00 a.m. to 5:00 p.m. on the third floor of City Hall until October 1st. If you have questions about the election, call Municipal Clerk Sara Peterson at 747-1811.

The Assembly Chambers were full on Tuesday night (04-24-18), with Sitkans coming out to testify on two tax proposals. The one to turn the senior sales tax exemption into a rebate program for low-income seniors passed. (Emily Kwong/KCAW photo)

In an effort to fund the City of Sitka, the local Assembly is looking at taxes. And on Tuesday night (04-24-18), they made a big decision. By a 4-3 vote, the Assembly approved eliminating the senior sales tax exemption and replacing it with an rebate program for qualifying low-income seniors. Through the highs and lows of passionate debate, with over 40 citizens testifying on this single ordinance, Sitkans of all ages are feeling the pinch.

The meeting went on a break at 11:30 p.m. Tuesday night and continued Wednesday night at 6 p.m., with nearly a dozen agenda items left. That includes money for bulk water infrastructure, a landslide study, land disposal laws, and a discussion on the Sitka sac roe herring fishery. We’ll have more on Raven News at 5:18 p.m. tonight. 

Downloadable audio.

(Crowd noise)

By the sound of it, you can probably tell this meeting of the Sitka Assembly was packed. The vast majority were there to weigh in on a single issue, making the senior sales tax exemption needs-based instead of broad based.

What does that mean? For some, like Sam Skaggs, Susan Brandt-Ferguson, and Levi Albertson, it means more money for Sitka’s future. 

Skaggs: I just turned 65. I support any exemption here because we have to raise revenue for our schools. That’s the fabric of our community.

Susan Brandt-Ferguson: Soon, Sitka’s population will be 20% or more seniors. I don’t believe our city can afford to offer this exemption to all seniors any longer.

Albertson: Most of the people I know that have been pushed out of Sitka due to economic circumstances have been young families who are offered no economic relief from the city.

As of 2017 census data, 16% of Sitkans were over 65 years of age. Ordinance sponsors Kevin Knox and Bob Potrzuski argued that such a large and growing portion of the population could not forgo paying the sales tax any longer. Their memo noted the City and Borough of Sitka has gone without $6.5 million in sales tax revenue from senior citizens over the last five years.

Sitka’s population is aging, a “silver tsunami” projected in many other communities in Southeast. In 1996, six percent of Sitkans were senior citizens. In 2015, that number had risen to sixteen percent. (Chart provided by Knox and Potrzuski)

But many testifying didn’t see the logic and implored the Assembly to look for revenue elsewhere. Several said passage of the ordinance would create hardship for seniors on a fixed income, who use their exemption card to get by in a town where the cost of living is on the rise. Many felt the rebate program, as designed by the ordinance sponsors, would leave non-qualifying seniors in a lurch. Others were skeptical the Assembly would raise the money it expects  (an estimated $500,000 in the first year) and anticipated removing the exemption would drive seniors to shop online or out of town.

Many of those testifying against the ordinances were senior citizens themselves. Grace Larsen stood before all seven family members, six of whom are under 65, a yellow sign that said “Seniors Do Count.” (Emily Kwong/KCAW photo)

The Mayor capped testimony at two minutes, so many had the modify their plans to speak for the typical three minutes. 

Those who assist the elderly spoke to the poverty they’ve seen. Debe Brincefield talked about delivering 50 Thanksgiving meals to shut-in seniors.  “These people cannot feed themselves. These people cannot pay their bills. They do not have enough money to survive. They are borrowing from each other, lending to each other, helping each other, and we need to step up and help them,” Brincefield said.

Some, like David Sam, expressed their anger outright. “What we are talking about here is respect: respect for the elders in the community and giving thanks for what they have brought us. And you want to take, you want to assault, the elders in this community?,” Sam asked to Assembly.

The senior sales tax exemption was introduced in 1975 and has come up twice, in 2012 and 2015, for an overhaul when the Assembly was searching for ways to raise revenue. The rebate idea has been debated before, but never got the Assembly’s approval until now. 

Shirley Robards has been its longtime defender and this time, gathered 800 signatures calling for it to be kept. Another petition calling for its removal, put forward by John Stein last meeting, had approximately 380 signatures. Robards told the Assembly Tuesday night, “I think this going to send everybody out of town to shop.”

After nearly two hours of public testimony on this issue, the Assembly took a break and came back for debate.

There was conversation at the table about voting the ordinance down to workshop it further, but no motion was made or seconded. When the time came, the vote was close, 4-3, and the ordinance passed as written.

Voting in favor was Mayor Matthew Hunter, ordinance co-sponsors Bob Potrzuski and Kevin Knox, and Assembly member Steven Eisenbeisz. Voting against were Assembly members Richard Wein, Aaron Bean, and Ben Miyasato. Each offered different explanations for their vote, except for Eisenbeisz, who didn’t offer comments during Assembly debate. When he gave his approval, there were audible gasps from the crowd.

The ordinance will take effect in July. The rebate program would begin next year. Seniors can apply for it by submitting applications to the finance department between January 1, 2019 and March 31, 2019. They’d get their rebate check in July, which amounts to $350 for a single senior in a household and $450 for two senior in a household. See ordinance details here: Ord 2018-14

Though Assembly members and the public differed on what to do, there was one area of overlap: that Sitkans are struggling — young and old, newcomers and those with long legacies.

Brinnen Carter asked the Assembly, rhetorically, “Is the revenue collection fairly balanced among the citizens?” Mayor Matthew Hunter thought not. He felt the senior sales tax exemption proposal, though unpopular, was a way to spread Sitka’s needs more evenly across it’s population.

Hunter compared the Sitka of today to that of 1980.

“The take home pay has doubled in that time. The housing cost has quadrupled, conservatively. So it’s twice as hard to get started now, as it was then. We have our future and our present and our past all come together in one conversation tonight.

The room was a blend of those age groups and perspectives, the mood swinging between feisty indignation and somber seriousness and neighbor visiting with neighbor during the top-of-the-hour breaks.

While the Assembly did vote through one tax measure, they voted down the other – a proposed 3% severance tax on natural resources like fish and rock – on first reading. Not a single citizen, many of them fisherman and seafood processors, came out in support. The Assembly voted it down on first reading 6-1, with Assembly member Aaron Bean voting in favor.

In a previous version of this article, KCAW reported incorrectly that Assembly member Aaron Bean against the severance tax. He voted in favor.

Downloadable audio.

Taxes dominated the conversation the Sitka Assembly meeting, as the body looks for ways to raise revenue to fund city government.  (Photo courtesy of Pixaby)

The City of Sitka doesn’t have enough money to maintain government as is. They must either cut services or raise money.  The Sitka School District, in particular, is facing a $2 million deficit and may have to eliminate teaching positions.

This didn’t sit well with several senior citizens. A group collected 380 signatures calling for the city to replace the senior sales tax exemption with a rebate program. Assembly members Kevin Knox and Bob Potrzuski co-sponsored a like-minded ordinance, which appeared before the Assembly Tuesday night on first reading.

Among the senior citizens in favor were Cindy Littman, Steve Lawrie, and Eric Jordan.

Cindy Littman: At one time, seniors were typically poorer than younger people, but that’s no longer the case.

Steve Lawrie: Those who need it can take. But I don’t need it.

Eric Jordan: Some of you know it’s been a pretty tough year for fishermen, so I’ve been claiming it. But I’m not going to claim it in the future. I’m going to rip it up.

Jordan then shred his senior sales tax exemption card to prove his point.

If passed, eliminating the tax exemption would be a $500,000 boon for the city. The ordinance (Ord 2018-14) also allows for qualifying low-income Sitkans over 65 to apply for an annual rebate check of $350. The notion of replacing the tax break with a rebate program has come up to the Assembly before – in 2012 and 2015. 

As written, the ordinance says senior citizens may qualify for the rebate if they already earn assistance for a select list of social welfare programs, including state Medicaid or the Supplemental Nutrition Assistance Program (SNAP).

Several citizens felt the proposal was unfair to the elderly who paid their taxes as younger people and deserve a break. That included Shirley Robards, John Duncan, and Rachel Moreno. 

Shirley Robards: We know many deserving seniors will no longer be eligible under the new rules and who knows how many more will refuse to be humiliated and threatened by the city by even applying.

John Duncan: I really believe that you folks should leave the old people alone.

Rachel Moreno: Elders don’t need to be put in a position where they go from a nice benefit to applying for a welfare program.

Co-sponsor Kevin Knox noted that the ordinance had to describe this as a social welfare program. Otherwise, the city would have to issue every qualifying person a 1099 form.

After 45 minutes of public testimony, the Assembly took up deliberations. Demographic trends were a big part of the conversation. Sitka’s population is aging, with 16% of the population over 65.

Those in favor of eliminating the tax exemption said it was in the best interest for Sitka’s young families. Mayor Matthew Hunter noted that the price of housing has quadrupled. There’s less children enrolled in the school district. Families are leaving town.

Assembly member Bob Potrzuski reasoned that financially-able seniors should contribute to the sales tax base to help out young Sitkans. “We’re shifting the burden from people who can afford to pay, who have spent a lifetime making money and who have saved money, and we’re shifting it to that younger group who are just starting out,” Potrzuski said.

Those against eliminating the tax exemption worried about the fate of the elderly, some of whom do not qualify for the proposed rebate.

Assembly member Richard Wein took aim about how the program would work, saying it eliminates protections for those senior citizens on the borderline. “The difference between young and old is that a 22 year old has a lifetime to earn money. But somebody who is 78 years old, that’s it. Whatever is in their bank account, that’s it,” Wein said.

Assembly member Aaron Bean said the money the city needs could be found in further cuts. He wants the city to consider eliminating temporary workers.

The vote – on first reading – was an even split. For the tax was Matthew Hunter, Bob Potrzuski, and Kevin Knox, while Richard Wein, Aaron Bean, and Ben Miyasato voting against. In his comments, Miyasato said he voted against eliminating the senior sales tax exemption in 2012 and would maintain his stance. Assembly member Steven Eisenbeisz was absent.

Since it takes a vote of four to kill an ordinance on first reading, this tax proposal will come up again for second reading on April 24th.

Also at an impasse was a tax proposal to raise lodging taxes – which combines bed and sales taxes – from 12% to 16%. Sponsored by Hunter and Knox, this proposal (Ord 2018-13) would net $1.2 million dollars in revenue for the general fund, where it could be diverted to say, the Sitka Performing Arts Center or the Harbor Fund.

Several members of the visitor industry cautioned the Assembly from taking such action, saying it could hurt tourism.

Sherry Aitken, the Director of Tourism with Visit Sitka, spoke to the ripples. At one point, she addressed Hunter directly. He is a teacher at Mt. Edgecumbe High School. “When people come to graduation at Mt. Edgecumbe Matt, all the parents have to stay some place and now they’re paying 16%. So, they’re not an other. They’re us. When they come over for Mudball (a softball tournament) from Juneau, are they going to still come if they have to pay 16% bed tax? Maybe. Maybe not,” Aitken said.

Aaron Bean spoke fervently against this tax proposal, saying it would drive visitors away. He said, “I would ask that you not make Sitka the most expensive place to visit.” A lodging tax of 16% would be the highest in Southeast.

Knox felt that people will leave Sitka – residents and visitors alike – if infrastructure  deteriorates. He spoke specifically about the harbors. “Everyone in this community, everybody, whether you have a boat or not, benefits from our harbors system. We all need to pitch into it somehow. Not just the users. This is one of those ways we can put a little bit towards it.

Bob Potrzuski then made a motion, amending the ordinance to raise the lodging tax to 14%. The motion was voted down. When it came time for a final vote on the ordinance as written, it was tied 3 for 3, with the same Assembly members voting the same way as the senior sales tax proposal. This too will come up again for second and final reading at their April 24th meeting.

In other business, the Assembly:

–Approved, on first reading, $75,000 of General Fund working capital money for a landslide study around Keet Gooshi Heen Elementary and Sitka High School: Motion and memo Ord 2018-09

–Heard a detailed presentation on the final draft of the Sitka Comprehensive Plan (Final Sitka Comprehensive Plan 2030)

–Heard public testimony from both citizens and city administrator Keith Brady about the removal of an art show on the 2nd floor of city hall. 

In April, the Sitka Assembly passed a law that would fine those using their phone while driving. Exceptions are made for hands-free use. (Emily Kwong/KCAW photo)

In May, the Sitka Assembly banned citizens from having a device in hand while driving, but without specifying a fine structure. Last night (01-10-17), the Assembly mapped that out.

If drivers are caught with a cell phone in hand, the fine is $50. For the second offense, it’s $100 and for the third, $200. For subsequent offenses, the defendant must appear in court. The maximum penalty is $500 and prior offenses must be within five years.

This ban applies even when the driver of the vehicle is stopped at a sign or a traffic light. Sitka drivers can, however, legally use a phone hands-free – with voice or Bluetooth technology. The distracted driving law, which was developed by the Health and Human Services Commission, also does not apply for emergency situations and emergency personnel.

The Assembly also learned that the Sitka Fire Department received an unusually high number of calls this year. Fire Chief Dave Miller said there were 1400 calls and over 90% were for EMS. “Call volume is sort of up across the board in EMS. If there is one thing, it’s probably alcohol. I think our alcohol call volume is up quite a bit. But drugs aren’t a big thing with us right now. And everything else is sort of spread across the board.”

The Fire Department has also been called to unlock cars and houses, as well as check carbon monoxide and other detectors.

The Assembly also approved, on first reading, purchasing a car for the Chief of Police. The city recently sold a fire truck to Haines for $25,000 and plans to divert about two thirds of that money towards a used vehicle for Police Chief Jeff Ankerfelt.

During persons to be heard, Shirley Robards spoke out against further taxes and raising electric rates. “I think you guys really need to think about touching the permanent fund. That’s what it’s for, a rainy day. And it’s raining, hard.”

And finally, Assembly member Aaron Bean withdrew his proposal to set up an MQE – or municipal quota entry – for the city. See proposal here: Municipal Quota Entity

At the last meeting of the year (12-22-16), Bean co-sponsored an ordinance with fellow Assembly member Kevin Knox that would call upon the city to buy halibut and black cod quota shares and lease them to local fisherman.

A handful of fisherman, as well as the Alaska Longline Fishermen’s Association, spoke out against that idea. In an interview with KCAW, Director Linda Behnken said that allowing organizations to buy shares hurts independent fisherman and drives up market prices. “Anytime you add more buying power into the market, particularly if it’s an entity that has different borrowing status than an individual, you’re going to raise that cost of entry,”Behnken said. “You’re going to make it that much more difficult for people in these communities to gain that access.”

Bean disagrees. His thinks that the best way to lower the cost of entry is by allowing the city to purchase and lease shares. The way it’s done now, he says, the prevents locals from getting involved. Bean said, “The unforeseen consequence of the IFQ program, in my mind, haunts a lot of people today. They put a monetary value on individuals average catch for a year and gave them that quota and closed the door to everyone else on the planet.”

Behnken agrees that the barrier for entry to the fishing fleet is too high, but that the best way to solve it is by providing financial support to independent fisherman. ALFA has established a local fish fund and a national program to support young fisherman recently received bipartisan congressional support.  

Ultimately, Bean withdrew his proposal for an MQE last night after Knox withdrew his co-sponsorship. But he wants the Assembly to consider forming a Community Quota Entity, or CQE. That’s when a community forms a non-profit to buy and lease shares. There are 47 communities that qualify for a CQE and of those, 29 have established CQEs that hold charter halibut permits. All qualifying communities have populations below 1500. Under current guidelines from the North Pacific Fisheries Management Council, Sitka is too big to qualify.

Correction: In a previous version of this article, Raven News stated that there were 42 communitie with CQEs, or community quota entities. This is incorrect. 

The liner was sailing through the Gulf of Alaska, approximately 120 miles south of Yakutat, Alaska, at midnight on October 4, 1980, when a fire broke out in the engine room. After all passengers and crew were rescued, the vessel sank a week later. (Photo courtesy of the Alaska State Library)

35 years ago this month, the Coast Guard carried out one of the most dramatic rescues in its history. On October 4 and 5, 1980, more than 500 passengers and crew from the Prinsendam were pulled out of lifeboats in the Gulf of Alaska as the cruise ship burned and sank. By sunrise October 5 everyone was safe and accounted for.

But as the Coast Guard’s job ended, Sitka’s began. Survivors, with nothing but the clothes on their backs, began arriving in Sitka by plane from Yakutat and from the Coast Guard Cutter Boutwell.

KCAW’s Rich McClear was about to leave KTOO in Juneau to found Sitka’s public radio station. In Part 2 of our series on the 35^th anniversary of the Prinsendam rescue, McClear meets with some of the people who lent a hand – and much more – to the Prinsendam survivors.

Downloadable audio.

Holland America laid off of all its Alaska employees at the end of September, 1980,  so there were no staff in Sitka. The line instead called John Litten, manager of Sitka Tours, and asked him to make arrangements for survivors.

John Litten: We realized immediately, ‘Oh man, have we got something on our hands.’  There were close to 200 people. They were coming off wearing garbage bags, night gowns, some of them were wrapped up in curtains that they ripped down off the walls of the ship…it was just crazy, watching them walk down the long gangway. I started thinking, ‘Okay, here we have all of these elderly people, they’ve come off the ship with virtually nothing. Many of them are going to need medications and they are going to need toiletries.’ Not until I saw them coming down the gangway did I think about clothing.

So Litten called several shopkeepers and asked them to open their stores. He told them to run a tab. They would figure out payment later.

Bonnie Brenner ran a women’s clothing store.  She said, “All of these ladies were in there. They didn’t have underwear ‘cause they had left the ship in whatever they were wearing. And so we clothed them. I’ve never seen anything like it. We just kept selling everything.”

Shirley Robards, who worked at John McDonalds men’s store, recalled, “We didn’t have enough stuff for that influx of people. It was a lot of people.  They cleaned us out.  I forget what we did, it was $41,000 or something.  So, poor Prinsendam.”

Jill Scheidt owned Vi’s Apparel. She said, “Back then it was the wealthier people who cruised. It wasn’t yet into middle America cruising.” Many of the survivors were placed in the Sheffield House, now the Totem Square Inn. Vi’s was a first stop for women off the ship without any clothes.

Scheidt: They came into the store in their nightgowns with mink coats on and so forth.  Some with shoes, some without.

McClear: What types of things did they buy?

Scheidt: They bought mostly clothing that they could wear when they were planning to leave the next day on an airplane.

McClear: Did they pay or did the line pick it up?

Scheidt: The Line picked it up and said, ‘Go ahead and just create a charge account and we will make sure it gets to the right people and you’ll get paid.  And it did, and very rapidly actually.

McClear: With the line picking it up did some people clean you out?

Scheidt: They really didn’t, they got what then needed. No one seemed to be excessive.

But there always a few in every crowd, like the guy Shirley Robards encountered. She remembered, “There was one gentleman out of all of them I remember, and I think he was really quite well to do. He wanted the pants shortened and he wanted this and he wanted that and he was the only one who ended up with more than what he needed just to get home. I don’t think a thousand dollars was very much to him.”

But a bigger problem was medications. Many of the passengers were elderly and on maintenance drugs. Litten recalled, “Paul Lunas had a medical office practice right across from the bookstore, upstairs. He came down. So did Ed and Mary Spenser. Their practice was just out Halibut Point Road.  And they came into the hotel and they sat down. They just had people walk up and say what medications were you taking, what were the dosages. And they, without any kind of physical exam, just started writing them scripts.

And they went across the street to Harry Race Pharmacy, which had opened for the occasion.  Harry Race also sold out of toothbrushes and other toiletries.

Throughout the rescue Sitkans contributed their own blankets and other goods, and some offered home cooked dinners. “The townspeople poured out,” said Litten. “When they heard that these people came out without clothing, people were bringing donations into the Sheffield. It was just incredible.”

Because of the weather, most passengers stayed in Sitka for two nights. Some stayed a few days longer recovering in the hospital.

The first survivors arrived in Sitka on Saturday afternoon, October 4. On the following Friday, October 10, the Sentinel announced ‘Last Out.’  On Saturday, October 11 the Prinsendam, still on fire and under tow to a shipyard in Portland, sank off of Cape Edgecumbe in 9,000 feet of water.

In Part 3 of this series, McClear discusses some of his own memories of the Prinsendam disaster, and the challenges of reporting on a high seas rescue before the internet, digital photography, or satellite communications. Listen to Part 1: The Rescue.

Click here for more historic photographs of the Prinsendam sinking, courtesy of the Alaska State Library.

The measure would replace the exemption with a rebate program for low-income seniors.

Downloadable audio

Sitka’s sales tax is five percent in winter, six percent in summer. It funds more than a third of the city’s operating budget. And if you’re an Alaska resident who’s 65 or older, you don’t have to pay it: you are exempt.

That, however, may be about to change.

Assembly member Matt Hunter sponsored the proposal to repeal the senior sales tax exemption.

“I definitely, a hundred percent respect my elders, and I respect all the seniors who have come before and built this town,” Hunter said.

But, he said, it all comes down to one question: is this sustainable?

“If one looks up the projected demographics of our town, the age groups in just a decade or two, we’re rapidly approaching the point where greater than 30 percent of the residents are going to be over the age of 65 and qualifying for the exemption,” Hunter said. “That means that almost a third of the population will not be paying sales taxes.”

Hunter’s proposal — co-sponsored with assembly members Steven Eisenbeisz and Tristan Guevin — would replace the exemption with a rebate for low-income seniors. To receive the rebate, residents would have to sign an application declaring that they’re experiencing “financial hardship.” But nobody in city hall would check on income levels – the city would leave it to residents to decide whether or not they qualify.

The rebate would total up to $400 for an individual, or $541 for a couple. Hunter said those amounts are designed to cover the average sales tax paid on food, fuel and utilities — in other words, the necessities. The rebate could be  refunded as a lump sum once a year, or as a monthly credit on utility bills. And unlike the current exemption, it would be limited to Sitka residents.

The proposal faced emotional opposition Tuesday night. While one member of the public spoke in favor, six people spoke against it.

“I’ve lived in Sitka since 1971, and worked until I was 70 so that I could have a little nest egg in case I had a serious illness,” Sitka resident Lois Rhodes told the assembly. “I was young once and know what it is to be poor, and hardly able to pay my bills. However, I scrimped and saved so that life would be comfortable in my older years. Now I feel that I am being punished for working so long and hard, and saving.”

“I think I paid my dues, I really, truly do,” said resident Shirley Robards. “I’m 80 years old and I’m still working. And, I don’t know, it’s just disgusting that you keep picking on the old people.”

“Our old timers would have said, are you ashamed?” said John Duncan, Sr.

Hunter said he knows that many seniors are struggling. But, he said, so are young families. He said he’s watched friends leave town because of the high cost of living, and exempting all seniors, regardless of income, means that younger residents have to shoulder the full cost of city services. That’s simply not fair, he said.

“I’m trying to find a way that we can get people who can afford to pay to  pay their share, and still offer something for those who are truly struggling,” Hunter said. “Because it breaks my heart every time someone has to leave this town who wants to live here. I can’t imagine anything worse myself. This is home.”

The assembly was split on the issue. Member Aaron Swanson said he could not in good conscience raise taxes on seniors. But Tristan Guevin said he could support a version with a slightly higher rebate. And Michelle Putz suggested raising the age at which people become eligible for the rebate, to 70.

In the end, the assembly postponed the measure, asking the sponsors to revise it. It will be back on the agenda on July 14.

***

Assembly members also discussed the future of Sitka’s Convention and Visitors Bureau last night. Assembly members asked staff to explore the option of absorbing some of the bureau’s functions into city government.

You can find more coverage of the Sitka Assembly here.