Petersburg Borough Assembly approves budget changes, rezoning and utility contracts; rejects cruise-dock drawing spending

Petersburg Borough Assembly on July 7 approved a set of ordinances, budget amendments, bid awards and administrative resolutions, and rejected a proposal to pay $1,500 for updated drawings related to a proposed American Cruise Line dock.

The assembly passed ordinance 2025-11 to rezone a parcel at 1016 Sandy Beach Road from rural residential to single-family residential and approved ordinance 2025-12, a supplemental FY2026 budget adjustment, after adopting two assembly amendments that added library repairs funding and reallocated school maintenance funds to cover a school bond payment.

The assembly also approved bid awards and contracts recommended by borough staff, including a storage-building addition for Skow Bay to Steelhead Enterprises for an amount not to exceed $100,000 and a generator step-up transformer procurement to GD Partners for an amount not to exceed $274,273.75. A rental-agreement item allowing the Petersburg Volunteer Fire Department to use a borough address for proof-of-residence purposes passed, as did a routine resolution updating borough financial signatories (Resolution 2025-13) and a resolution opposing sale of public lands (Resolution 2025-14).

A separate motion to authorize PND (P and D) engineers to prepare an updated, scalable aerial drawing of the proposed American Cruise Line dock (Concept 7) for $1,500 failed on a roll call vote.

Why this matters: the budget amendments and the bond-payment transfer change where borough money is held and how facility repairs are funded; the transformer and storage-building awards affect utility operations and readiness; and the assembly’s resolution on public lands formalizes the borough’s view for federal representatives.

What the assembly voted on (selected items)

- Ordinance 2025-11 (rezoning, 1016 Sandy Beach Road): Motion to pass carried 4-0. The ordinance was unanimously approved in first reading and passed its second reading July 7 (roll call recorded as 4 yes, 0 no). The planning commission had recommended the rezone prior to public auction.

- Ordinance 2025-12 (FY2026 supplemental budget): Passed 4-0 with two assembly amendments. The ordinance itself makes three changes to the property development fund: add $50,000 for utility connection stubs to borough lots proposed for sale; remove $15,000 for a public-works survey that came in under budget in 2025; and add $9,300 as a local match for an Alaska Municipal League grant application for the Safe Streets and Roads for All program.

- Amendment 1 (library repairs): Assembly added $17,222 to the property development fund for library facility repairs; breakdown as presented: $7,222 to rebuild and retest a domestic water backflow preventer and $10,000 to replace failed clear-story windows. The amendment passed on a roll call vote 4-0.

- Amendment 2 (bond payment transfer): Assembly approved a transfer of $90,000 from Fund 758 (school deferred maintenance) to Fund 350 (borough debt service) to cover school bond payments after the state reduced its school bond reimbursement appropriation (as notified June 23). The amendment passed on a roll call vote 4-0.

- Skow Bay storage building addition (bid award): Utility Director Hagerman recommended awarding the Skow Bay storage building addition project to Steelhead Enterprises for an amount not to exceed $100,000; motion passed on roll call 4-0 after a brief explanation that the addition would provide covered storage for Power & Light materials.

- Generator step-up transformer procurement (bid award): Utility Director Hagerman recommended awarding the generator step-up transformer procurement to GD Partners for an amount not to exceed $274,273.75. Hagerman explained the transformer will step the generator output (11,000 volts) to the system voltage. The award passed on a roll call vote 4-0.

- Petersburg Volunteer Fire Department rental agreement: The assembly approved a rental agreement between the Petersburg Volunteer Fire Department and the borough to establish proof of residence for volunteers’ local post office boxes; motion passed 4-0.

- Resolution 2025-13 (financial authorization list): The assembly updated the list of borough officials and employees authorized to conduct financial activities on behalf of the borough; motion passed 4-0.

- Resolution 2025-14 (opposing sale of public lands): After public testimony urging approval, the assembly passed the resolution opposing sale of public lands and said it will send the resolution to the borough’s congressional delegation and relevant committees; motion passed 4-0. Public commenters Becky Knight and David Beebe spoke in favor of the resolution during the agenda comment period.

- Letter of support for CAKE fuel dock: The assembly voted to send a letter of support for the CAKE tribal fuel-dock grant application; motion passed 4-0.

- PND engineer proposal to update ACL Concept 7 drawings ($1,500): The motion to authorize PND engineers to prepare an updated concept/drawing for the proposed American Cruise Line dock for $1,500 failed on a roll call (all four voting members recorded “No”). Several assembly members said they believed on-site measurements and existing dimensions provided sufficient information.

Votes at a glance (roll-call summary for principal items)

- Approval of 06/16/2025 minutes: motion moved and seconded; voice vote recorded as aye.

- Skow Bay storage building addition to Steelhead Enterprises: 4 yes, 0 no.

- Generator step-up transformer procurement to GD Partners: 4 yes, 0 no.

- Ordinance 2025-11 (rezoning, Sandy Beach Road): 4 yes, 0 no.

- Ordinance 2025-12 (FY2026 supplemental) with amendments: 4 yes, 0 no.

- Library amendment (+$17,222): 4 yes, 0 no.

- Bond-payment transfer ($90,000): 4 yes, 0 no.

- Petersburg Volunteer Fire Department rental agreement: 4 yes, 0 no.

- Resolution 2025-13 (financial signatories): 4 yes, 0 no.

- Resolution 2025-14 (oppose sale of public lands): 4 yes, 0 no.

- Letter of support for CAKE fuel dock: 4 yes, 0 no.

- PND/PND-engineers ACL Concept 7 update ($1,500): 0 yes, 4 no (motion failed).

Context and next steps: Several items (rezoning, budget amendments and contract awards) will affect upcoming administrative actions: the rezoned parcel was discussed in the context of a planned public auction; the budget amendments change internal fund allocations for facility repairs and bond payments; the transformer and storage awards move forward procurement and construction for utility needs. The proposed ACL contract will be returned to the assembly later if a negotiated contract is ready for ratification.

Ending: The assembly adjourned after member recognitions and routine reports; Mayor Jensen was excused and Vice Mayor Marsh presided.