City Council - Regular Meeting

All council members are present, with the exception of Council Member Witte, who is absent and excused. Council Members Lally and Foster are online.

Okay, well, we're short. The first, we're going to go ahead and skip that to the end, the recognition of outgoing council member if he shows up. Other than that, we'll go to public business from the floor. This is time for members of the public to address the council on non-agended items. We'll have five minutes to go ahead and speak if anybody wishes to. OK. Seeing none, we'll move on. We're going to the consent agenda, where we have two items on the consent agenda this evening. National Safety Month, 2026, 30th anniversary, and then approval to go into executive session discussion of implications of city revenues and litigation strategy regarding the Trans-Alaska pipeline system at Valora tax issue. Is there a motion?

Motion to consent to all items. Second.

Moved by Council Member Devins, seconded by Council Member Lally, to approve the consent agenda.

Okay, call for the vote.

All those in favor say aye.

Aye.

All those opposed? With a vote of six yays, one absent, Council Member Witte, motion carries.

Okay, we'll go ahead and move into new business. Oh wait, I gotta read the proclamation. Whereas for 30 years, the National Safety Month has encouraged communities across the nation to prioritize the well-being of residents in homes, workplaces, schools, and public spaces. And whereas the City of Valdez recognizes that safety is a shared responsibility essential to protecting lives, strengthening neighborhoods, and supporting a thriving local economy. And whereas advancements in training, technology, and public awareness have significantly reduced preventable injuries and fatalities over the past three decades, yet continued diligence is necessary as new risks and challenges emerge. And whereas the city honors the dedication of local first responders, public works teams, safety professionals, educators, and community organizations whose efforts safeguard our residents every day. And whereas the 30th anniversary of National Safety Month provides an opportunity to reflect on past progress, renew our commitment to prevention, and encourage all residents to take proactive steps to reduce hazards in their daily lives. And now, therefore, I, Dennis Fleming, Mayor of the City of Valdez, do here proclaim June 2026 as National Safety Month in Valdez. and encourage all residents businesses and community partners to observe this month with activities programs and initiatives that promote awareness preparedness and a safer future for all dated the second day of june 2026. do you have anybody to receive this

Everybody in the back.

Yes.

OK, moving on to new business. Approval of change order for Kinnick Construction for Kelsey Dock, Dauphin, Bill Ballard, temporary install in the amount of $70,500. Is there a motion? Move to approve.

Motion to approve.

Joe Beth, second.

I'll call Joe the second. OK. So moved by Council Member Green, seconded by Council Member Lally, to approve the change order with Connect Construction for the Kelsey.Dolphin slash Bullard temporary install in the amount of $70,500.

Is there any council discussion? Okay. Is there any public discussion? All right. Call for the vote.

All those in favor, say aye.

Aye. All those opposed? Aye.

Aye.

Sorry, I was too quick on that one. With a vote of six yeas, one absent. Council Member Witte, motion carries.

Approval of number two on the item is approval of purchase of CAT 265 track skid steer and corresponding attachments from NC Machinery in the amount of $139,877. Is there a motion? Move to approve. Second.

MOVED BY COUNCILMEMBER FOSTER, SECONDED BY COUNCILMEMBER GREEN, TO APPROVE THE PURCHASE OF CAT 265 TRACK SKID STEER AND ATTACHMENTS FROM NC MACHINERY IN THE AMOUNT OF $139,877. IS THERE ANY COUNCIL DISCUSSION?

IT LOOKS LIKE A PRETTY NICE PIECE OF MACHINERY TO KEEP OUR TRAILS ON MEALS HILL ACTIVE AND CLEAR. SO THANKS FOR GETTING THE RIGHT PIECE OF MACHINERY FOR OUR COMMUNITY. Parks and Rec.

Is there any public comment? Okay, call for the vote.

All those in favor, say aye.

Aye.

All those opposed? With a vote of six yays, one absent, Council Member Woody, motion carries.

Number three on our list is approving purchase and sale agreement between the City of Valdez and the City Convention and Visitor Center. Bureau. Is there a motion?

Move to approve.

Second. Moved by Council Member Green, seconded by Council Member Stites to approve the purchase and sales agreement between the City of Valdez and the Valdez Convention and Visitors Bureau.

Is there any council discussion on this?

I'd just like to say this is a good step forward, continuing the forward progress. Thank you.

OK, is there any public comment? OK, call for the vote.

All those in favor, say aye.

Aye. Aye. Aye. Aye.

All those opposed? With a vote of six yeas, one absent. Council Member Witte, motion carries.

OK, number four on the item is approval of physician retention agreement with Dr. John Cullen. Is there a motion?

Move to approve.

Second.

MOVED BY COUNCIL MEMBER GREEN, SECONDED BY COUNCIL MEMBER DEVINS, TO APPROVE A PHYSICIAN RETENTION AGREEMENT WITH DR. JOHN GOLIN.

IS THERE ANY COUNCIL DISCUSSION ON THIS? OKAY. IS THERE ANY PUBLIC COMMENT? OKAY. CALL FOR THE VOTE.

ALL THOSE IN FAVOR, SAY AYE.

AYE.

All those opposed? With a vote of six yays, one absent. Council Member Witte, motion carries.

Okay, moving into ordinances. Number 26-03, amending Chapter 3.24 of the Valdez Municipal Code, titled Public Accommodation Tax. Second reading and adoption. Is there a motion?

Move to approve. Second.

Moved by Council Member Lally, seconded by Council Member Green to adopt Ordinance 2603 in second reading.

Is there any council discussion on this item? Go ahead, Olivia.

Sorry about before. Thank you. Again, I do think that this ordinance is important for our community to have Marketing campaigns that are done through the tourism task force at this point that will soon carry on as a different entity. But I'm also really opposed because it's not equitable. And the reasoning behind the amendment that was made, I don't agree with. I think that having marketing is super important, but I think that applying this in a fair and just manner for me is really, really important. And that's why I'm not voting for this tonight. And I can't vote for it as it is because it's only making certain portions of this industry who fall into the defined category of this ordinance vulnerable. are subjected to this bed tax accommodation. So that is why I'm opposed to it. If it had RV parks included in it, I would definitely vote yes. I'm not opposed to having destination marketing through a bed tax because I think that that's how we create that money and revenue to stream into that. So I wish that it wasn't amended the way that it was. So that's what I have to say. And if anyone wants to join me tonight in opposing this, please feel free.

Okay, Olivia, just to let you know where I stand on it too is, you know, you heard from me last week, but You know, I have a hard time even with the everything in agreement, but to move this along, I'm going to go ahead and vote for it. But in our retreat, I have some things I'd like to see us maybe look at and attempt. Right now, this is the sole source and funding of VCBB, and we're trying to get them off the ground. So I've asked VCBB and the city to look at maybe some alternative ways other than a tax for anybody. accommodations included, and to try to get that to move along to where I don't think we need to be taxing anybody at this point in time. I think Valdez makes enough money that we can let the $500,000 come from our own revenues, and that the tax that is provided that goes to the VCVB, technically since 2006, I believe, THAT MONEY WASN'T EVER GUARANTEED TO THEM AFTER THAT POINT IN TIME. IT WAS CREATED FOR THAT PURPOSE, BUT IN 2006, THE CITY MEMBERS DECIDED TO MOVE IT ALONG TO JUST ANY EQUITY THAT WOULD PROVIDE TOURISM GAIN IN THE VALDIES. SO THE QUESTION I GOT IS, IS THAT, YOU KNOW, WE JUST RECEIVED ESCAPE PROPERTIES FROM THE our escape properties in the amount of almost $4 million a year. So I don't believe that taxing anybody at this point for those $500,000 that we receive is necessary. But at the same time, BBC needs to continue on forward. And so I'm supporting that until we can figure out a way that the council can find another alternative method of bringing that money back to the VCBB. So this bill has my support for right now.

And I just want to remind the council that what remains in the ordinance before you are administrative fixes that we asked for as staff, specifically around right now there is an economic development basically, an application process that is codified that hasn't been followed ever. And then some of the other changes are just around how finance administers this tax, this existing tax. The only other thing is a cleanup where we missed adding rental cabins that do fall under that short-term definition. They are already taxed under the code. They already fall under that definition in Title 17. Just a reminder to everyone that this is not actually going to change the effect of the current tax. It's really more of an administrative cleanup.

Olivia's got her hand up. Oh, go ahead, Olivia.

Thanks, Joe. Thank you, Mayor. I believe that the way that this ordinance is set up currently is appropriate. I do believe that we should have an easy ability to tax tourists that come into Valdez, and I think the easiest way to do that is through a bed tax. And I do think that the bed tax should continue on in its existence. I just think that the bed tax should equally apply to the definition within this ordinance. so that it actually, per the definition, is touching RV parks as well. And I do believe that when people come to our community, they are using our services, they're using our sidewalks, they're using our hospitals. So I do believe that it is fair and appropriate to create an accommodations tax. And I think this is the best way to capitalize on that piece on that sector, I suppose. So I'm still in favor and support of an accommodations tax because of the reasons that I just suggested. I just want it to be fairly applied per the definition in this ordinance. So thank you.

Thank you.

Go ahead, Jim.

Yeah, I just want to go on the record again to say that I am in complete agreement with Councilmember Foster in regards to equitability. I think that absolutely going into future years, we need to look at the most equitable way to administer the accommodations tax. The one place in which that I guess I am in disagreement is that we are not by By passing the ordinance as it currently exists, we are not excluding anybody from that tax. We are just not newly including somebody that should have initially been included under the blanket of accommodations. Unfortunately, people that made the original ordinance before you or I were ever elected did not have the same idea about equitability or maybe the same foresight about the utilization of this accommodation tax that you and I share. I think that including newly an accommodation tax on the RV parks would be harmful considering that they rely so heavily on other economic factors, primarily gas prices, which as we all know are going up pretty rapidly right now. And the purpose of the accommodations tax in its entirety is to encourage more visitation of LVs. And I think that adding additional costs in an inflationary period would actually discourage visitation of LVs. So for the time being, I think newly including RVs and campgrounds under the accommodations tax should be postponed for a later year when gas prices are more stable. But I do agree that they should be included equitably.

Okay, any other conversation?

Mayor, I just, my opinion on this hasn't really changed. I think When it first came up, I was of the opinion of, we don't want to optically look like you mentioned, we're going to try and get every possible aspect of tax we can get out of tourists and visitors. And I feel like that disincentivizes tourists to come here kind of thing. You know, for years they've come and, you know, they've enjoyed Valdez and that's the whole reason we're, you know, we're trying to advertise it as a destination, yet we're going to just, we're going to add taxes to now RVers that are coming here kind of thing. And it just doesn't seem to make sense. I like what you were talking about. If you want to cross out, you know, check the equitability box, then, you know, start looking at maybe reducing or making it more equitable to everyone. And we're even doing away with the taxation and making it a city funded sort of VCVB. And that way we would have maybe a little more, let's say, say or in control over, you know, how expenditures are made kind of thing, which is where sort of what got us in this mess YOU KNOW, WITH HOW, YOU KNOW, WHAT CURRENTLY HAPPENED WITH BCBB. THAT WAS IT.

NEW SPEAKER THANK YOU. ANY OTHER COMMENTS?

NEW SPEAKER I HAVE MY HAND RAISED AGAIN.

NEW SPEAKER GO AHEAD, OLIVIA.

Sorry, I just want to respond to Councilmember Devens regarding gas prices. One could argue that our brick and mortar establishments in town pay far more for gas than RV parks. The tourists that get to Valdez, whether you're in an RV or not in an RV utilizing brick and mortar establishments, you're still paying for gas to get to Valdez. You're using an airplane, which the cost of flying, if you're able to fly at all, has also skyrocketed despite our essential air services support from the federal government. So I just think that that is a, it's not a reason to exclude one sector for this ordinance. And I would agree with Council Member Lally, if we're not going to apply it fairly, then let's not pass this tonight and make one sector pay for all of it when it's not fair across the board. Because they've been bearing this burden and they're paying a lot for gas. Diesel to heat these establishments has gone up, as we all know, those of us that pay a diesel bill. So again, I am opposed to this as it is written because of the amendment that was placed. Thank you.

Thank you, Olivia. All right.

Go ahead. Just because he called me out by name specifically, I will take a quick opportunity. This isn't a response directly to Olivia, but maybe a response to the direction that the conversation has been heading in. I just wanted to be clear to everybody that whether we pass this amendment to the ordinance today or not, the only thing that will happen is that the old ordinance will go into effect and that will add hardship for staff to administer the ordinance because they've made these administrative changes for the purpose of easing the load on staff. Secondarily, I think that it is not appropriate for us to be having the conversation right now about eliminating the accommodations tax entirely because that's not what we're talking about. That's not pertinent to the conversation today. And I also think that we need to be mindful of the fact that the accommodations tax is essentially the only methodology that we have to directly fund destination marketing. AND OTHERWISE I THINK THAT ON AN ANNUALIZED BASIS WE WOULD BE LOOKING AT SOMETHING KIND OF SIMILAR TO THE COMMUNITY SERVICE ORGANIZATIONS WHERE WE HAVE TO HAVE LONG DRAWN OUT MEETINGS SOLELY FOR THE ONE PURPOSE OF MAKING ONE EXPENSE IN OUR BUDGET WHEN WE DO IT THROUGH THE ACCOMMODATIONS TAX NOW IT'S A VERY SIMPLE AND STREAMLINED PROCESS WHERE WE KNOW EXACTLY HOW MANY DOLLARS ARE COMING IN AND EXACTLY HOW MANY DOLLARS ARE GOING OUT FOR THE PURPOSE OF DESTINATION MARKETING.

Okay, seeing no other comments, any public comment? Okay, seeing none, call for the vote.

All those in favor say aye.

Aye.

All those opposed? Nay. With a vote of five yays, one nay, Councilmember Foster, one absent, Councilmember Witte, motion carries.

Okay, moving on to... 2605, amending chapter 2.52 of the Valdez Municipal Code, federal planning and zoning commission, second reading and adoption. Is there a motion?

Move to approve.

Second. Moved by Councilmember Devin, seconded by Councilmember Foster to adopt ordinance 2605 and second reading.

Okay, any council discussions? Any public discussion? All right, call for the vote.

All those in favor, say aye.

Aye. Aye.

Aye.

Aye.

All those opposed? With a vote of six yays, one absent, Council Member Witte, motion carries.

OK, moving on to resolutions. Number 2631, urging the governor of Alaska to sign Senate Bill 174, establishing the Alaska Evasive Species Council. MOVE TO APPROVE. SECOND.

MOVED BY COUNCILMEMBER DEVONS, SECONDED BY MAYOR CLINTON.

SECOND. MAYOR, WERE YOU CALLING FOR IT OR WERE YOU? I WAS ACTUALLY CALLING FOR IT.

OKAY.

SORRY. I'LL SECOND.

OKAY. COUNCILMEMBER LALLY TO ADOPT RESOLUTION 2631.

Any council discussion?

Go ahead. I guess I would just say that our community is as aware as any in Alaska how much devastation can happen by massive fluctuations in wildlife. And invasive species are one of the major considerations that are happening now. And I commend the legislature for putting together a bill on the topic specifically, and I think that it's appropriate that we urge the governor to pass the legislation that was voted on.

Okay. Do we have any other discussions? Any community discussion? Okay. Call for the vote.

All those in favor say aye.

Aye. Aye.

Aye.

All those opposed? With a vote of six yeas, one absent. Council Member Witte, motion carries.

Okay, number 2632, amending the 2026 budget by accepting 2020 Copper River and Prince William Sound Salmon Disaster Relief from the Pacific States Marine Fisheries Commission Fishery Disaster Program in the amount of $60,411. Is there a motion? Move to approve. Second.

Moved by Council Member Green, seconded by Council Member Stites to adopt Resolution 2632.

Is there any council comment? Any public comment? Call for the vote.

All those in favor say aye.

Aye.

All those opposed? With a vote of six yes, one absent. Council Member Witte, motion carries.

Okay, moving on to city manager, city clerk, and city attorney and mayor's report, city manager report.

Thank you, Mayor Fleming, native office city manager. Obviously, I've got my written report there, a couple highlights since that was written and published. We made some phone calls to help out Head Start, and they are going to be operational on 6-10. It'll be their first day of operations. So they got the fire marshal thing sorted out. Another thing that's coming up here pretty quick is the 125th anniversary party. That's on the 11th and 12th. One thing that I've heard a lot of talk about and kind of looking forward to is the community photo on the 11th. They'll be at the Kelsey Dock at 6 p.m. What's that? 6.30. But come early so you can get a good spot. 6.30 on the 11th. The next day we'll have the internment, I guess, if you will, of the time capsule. If you all have anything that you'd like to put in the time capsule or suggestions of things that we should seek out, we've got about half a cubic foot of space for things and items of importance. So feel free to As part of the festivities you all have in front of you, some invitations for a tour of Alyeska Terminal, and then a reception with our invited guests from the legislature and the federal delegation representatives as well. You may have noticed... Former Chief Hinkle on the call today. Bart started this week as our interim public works director, so he's remote this week and he'll be on site next week. Kind of give me something less to do for the next little while. We anticipate having Bart around for a couple months to stay the ship, get some projects done there at public works, and then prepare for the advertisement and hiring process of a new new permanent director I'll stand for any questions if if you have any Sina move on to the city clerk report Thank You mayor Fleming and council

So Nate mentioned 125th, but I do want to say, courtesy of Sarah, you all have these lovely things at your spots. Joe and Olivia, I don't know if you can see it, there's a little pin and card. So these will be in your boxes when you get home. And it should be a good event. We have a good turnout of folks coming in from out of town. legislators and legislative staff. We have about 11 RSVPs of folks who are coming in for it. And also, I wanted to mention under my report that, sorry, I just lost my train of thought. I will leave it at that for now. I just lost my train of thought. Thank you. At least if I may.

I think you were going to mention the committee and council training.

Yes, I was. Thank you, Olivia. There's actually two things I was going to mention. So I was going to mention boards and commissions and council training is this Thursday. six o'clock and then the other thing was actually last meeting you guys heard from the Permanent Fund Board of Trustees Councilmember Foster had expressed interest in pursuing a resolution that they had asked us asked you guys to consider so I guess my other question kind of was from Council if there was interest in moving forward with that resolution and THAT THE PERMANENT FUND BOARD OF TRUSTEES HAD REQUESTED RELATING TO COMBINING THE CORPUS AND EARNINGS RESERVE ACCOUNT. NEW SPEAKER FOREHEAD NOTES. NEW SPEAKER WE'LL PUT THAT ON YOUR NEXT AGENDA.

NEW SPEAKER CITY ATTORNEY REPORT.

NEW SPEAKER GOOD EVENING MY CAMERA SEEMS TO HAVE TURNED OFF ON ME BUT I'LL KEEP THIS BRIEF. There hasn't really been enough since last week to update the written reports, but I will defer the update from until the executive session and Robin should be joining us there.

Okay. Excellent. Going into city mayor report. This weekend, I got the ability to go on one of our cruise ships and give them a plaque. It was pretty impressive. It was very nice, but it was also very nice to hear the comments of the people coming off the boats. There is a reason why Valdez is number one in their tourist destination is, I think, from what I gathered talking to people, was they weren't overwhelmed with shots. and people trying to sell them T-shirts that they can buy in Seattle and stuff. They like the community. They like walking around. They like seeing stuff. And they were taking full advantage of the trail. So that was really nice to see. And so it was really a good way to spend some time. So that's what I did this weekend. And other than that, that's all I got. So I'm going to go to Council Business from the floor, starting with Shannon.

I don't have much, but maybe some updates from Prince William Sound College. We should have announcement of our interim director by tomorrow. We've been promised. We'll wait to see what happens with that. As Dennis, our current director, is on his way back to a faculty position. So there's a lot of changes that happened in Prince William Sound College. A lot of new faces. But we are excited about moving forward. And we've also hired a new CTE director. who is moving a lot of our CTE programs out into the community and industry partners. So we're really excited about being on the forefront of what we can do to bolster our employment and opportunities for locals.

Thank you. Jimmy? Well, you know, Dennis mentioned the trails. The mayor, Dennis, not to confuse. There are a lot of Dennis's it seems these days. And the number one thing that I have heard from cruise ship visitors this year is how impressed they are with that park. And I went up there just a few days ago. I walked all the trails and I got to tell you, I am not in as good a shape as I'd like to be. There's a lot of uphill walking. But man, I was very impressed at how well-maintained they already are this early in the season. They were as good as brand new. I didn't notice any issues. And I got to imagine the snow load and the season and, you know, presumably many, many people walking on it would have done some damage. And it looked exactly like the day it got built. So I was very impressed by that.

Lester.

I just want to say thanks to the folks for the work session with the I feel very fortunate and grateful to have the hospital in Providence here in our town. I know that I have personally benefited from it as well as my family and others there. So very grateful to their dedication to the health and welfare of this community.

Thank you.

I FORGOT IN MY MAYOR THING REAL QUICK. WELCOME ABOARD, BART. IF YOU'RE NOT FAMILIAR WITH THIS AREA, JUST KEEP GOING STRAIGHT AFTER YOU HIT GLEN ALLEN AND YOU'LL FIND US. WELCOME ABOARD. THANK YOU, MAYOR. THANKS, COUNCIL. ALL RIGHT. OLIVIA?

OH, YEAH. I JUST WANTED TO SAY THANKS TO CITY MANAGER DUVALL AND DIRECTOR Nelson and Casey Deshak from Finance for walking me through the PFD committee and the fund itself. It was really informative and I look forward to being a good advocate for the City of Valdez with regards to our PFD and how we move forward. So thank you very much. Welcome back, Bart. I'm pumped to see you on the call and glad that you picked up And we know you and you're wonderful. So welcome back. And thank you very much. And I did just want to bring up again, you know, we had Thayne Miller in house at the last council session, which I feel like was last week, because I think it was. And he brought up some issues that he had around the new fee schedule at the harbor. And I'm not certain how we revisit that or how we can move forward or try to address his concerns as a council. Elise, if you want to guide me, but I've also heard from people about parking and boat storage. So anyway, just curious if any other council member would be amenable to maybe revisiting that based on Thayne Miller's remarks.

If I could, Mayor, my suggestion would be to kick it to the Ports and Harbor Commission first. They're the ones setting the recommendation. Not that you guys don't get a say and it's not important for you to discuss it, but perhaps my course of action would be to get a recommendation from them.

So would that be something we would recommend Thayne Miller to go and discuss that with the commission?

So what I'm going to do is I'm going to – Jeremy's dropped off, but I'm going to pass it to Jeremy and his team, and they'll put it on their agenda and reach out to various interested parties and discuss it.

Okay. Thank you. Go ahead, Chris.

Yes. Thank you for bringing – excuse me. THANK YOU FOR BRINGING THAT UP, OLIVIA. I HAD MENTIONED THAT TO ELISE THERE. I'VE HEARD SOME OF THE SAME FEEDBACK, WHETHER IT'S STAYING SKIFTS, FUEL TRANSFER, PARKING, ET CETERA. SO I THINK IT IS VERY VALID TO BRING IT BACK. AND IT SOUNDS LIKE YOU GOT A GOOD WAY FORWARD THERE.

THANK YOU.

NEW SPEAKER THANK YOU.

NEW SPEAKER OKAY, JOE. NEW SPEAKER THANK YOU, MAYOR. I JUST WANTED TO AGAIN THANK Providence Valdez Medical Center for coming in and presenting to us. And I thought their, you know, sustainability and all the great things that they're doing and what they provide for us, you know, was put forward tonight. And I appreciate all that they're doing. I'm looking forward to the strategic planning workshop coming up and our 125th anniversary. And also welcome back, Bart. Good to see you.

OK, with that said, I am going to pass the gavel on over and give it to Mayor Pro Tem Green and excuse myself for the executive session. So thank you.