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Assembly approves Visit Sitka contract with Element Agency LLC amid questions on cost increases
Summary
The assembly approved a professional services contract with Element Agency LLC for Visit Sitka services and discussed a scheduled compensation increase in the contract that translates to roughly a near-$100,000 increase over the term; council members said the contract is funded from bed tax and commercial passenger vessel fees.
The Sitka City and Borough Assembly on Jan. 13 approved a professional services contract between the city and Element Agency LLC to provide Visit Sitka services, authorizing the municipal administrator to execute the agreement.
Council members acknowledged a scheduled 4% annual increase in the contract’s compensation schedule (Exhibit B) and noted that, while 4% may not sound large, it adds up over the contract term to a significant increase. "To actually see those numbers...we're looking at almost a $100,000 increase to the term here," one assembly member said while reviewing the compensation schedule.
Members stressed that the contract funding comes from dedicated tourism-related accounts, not the general fund. "This contract does not come from the general fund," an assembly member said. "It comes from a very specific pool of money: the visitor enhancement fund (bed tax) and commercial passenger vessel fees (CPV)."
Other assembly members expressed confidence in staff procurement and the contractor’s ability to deliver, while a few asked staff to track performance and outcomes against the higher contract amount. The motion passed with a 7-0 roll call vote.
The assembly did not specify the contract’s total value in the public record during the meeting; staff materials referenced the compensation schedule and indicated the funding sources mentioned above.
