Council Grapples With Museum Funding Request

By Lauren Rosenthal

Wednesday, October 10 2012

(J. Stephen Conn/Flickr)

For eight years, the Museum of the Aleutians has been planning an extensive redesign. But after winning more than half a million in outside grants, the museum is still short. Now, they're looking to the city to fill the gap.

On Tuesday, museum director and city councilor Zoya Johnson gave a presentation to her fellow councilors on the renovation project. She asked them to fill the museum’s $200,000 budget shortfall. Otherwise, the museum risks losing $370,000 in unspent grants.

"So we would have to return the money that we've already raised and as I've said, these grants are very competitive," said Johnson. "I will reiterate that again, I'm very proud to have been awarded those grants. And that would be sad – to return the money."

The request comes at a tough time. There are a lot of projects that need funding right now, including some major infrastructure upgrades.

The museum initially proposed pulling some of that grant from the bed tax fund, which comes from hotel fees and is set aside for visitor services and cultural programming.

In the discussion Tuesday night, council concluded that there wasn't enough money in that pool, so the bulk of the museum grant would have to come from the general fund. And usually, nonprofits don't get big grants outside the regular nonprofit funding cycle.

Councilor Zac Schasteen said that while he likes the planned redesign, he was hesitant to commit money to it.

"We're looking at raising the utility rates 100% or upping the sales tax, which are pretty serious things which really haven’t been done in the community for quite some time," Schasteen said. "I'm a little leery about appropriating the $202,000. Whether it be from the bed tax or the general fund or wherever it’s coming from, I would have a hard time doing that."

To make matters more complicated, city manager Chris Hladick told the current councilors that the group serving in 2010 verbally committed $75,000 in local matching funds to the museum outside the normal nonprofit funding cycle. Hladick also disclosed that he sits on the museum's board of directors.

"So the support was given, but technically, the money was never appropriated," Hladick said by phone Wednesday. "So now, what the council wants me to do is bring back a budget revision for the $75,000 and that leaves a gap of $120,000 and they want to bring back options for how to utilize bed tax money to pay back the general fund. If they use money from the general fund [for] the $120,000, the bed tax would pay that back to the general fund over time."

At the meeting, councilor Tom Enlow made a motion to get more information on funding options for the museum. The measure passed 5-1, with Schasteen dissenting.

Johnson was among the yeses. She says she doesn't think her job as museum director qualifies as a conflict of interest, since she'll see no personal financial gain if the museum gets the city grant. So, she doesn't plan to recuse herself from future votes on the issue. Johnson says that she’ll approach the museum’s request with an open mind the next time it comes before council.

"There is always a chance that as a council member I will look at it, and weigh it against the needs of the city for all the different projects, and say, 'No, I don't feel that this project is important enough to take money from this account and support the project.' I'm not saying that it won't happen. I will have to see the options that the city manager brings for discussion."

Both Johnson and Enlow want more public input as the city considers the grant.

Enlow says he needs to hear from taxpayers about whether they support using general fund dollars to revamp the museum.

Meanwhile, Johnson encourages the public to come to the museum and look over the redesign plans. They include a new permanent exhibition, called "Aleutian Islands: Crossroads of the North Pacific." That exhibit was designed in consultation with members of the local Native community. Johnson says she welcomes questions from the public about the project.

Just Saying... on Friday, October 19 2012:

Well...what's the new update on this matter? Did the council cave in, put this on the back burner, or is the council going to let Hladick and Johnson work this out without the community knowing?
This has gotten a lot of attention and should be a strong indicator to the city, city personnel, Hladick, and council, that we are not going to stand for this any longer, and take heed. "Transparent"

yes we would like to participate... on Wednesday, October 17 2012:

but going to t City Council meeting and talking in front of City Manager, City Clerk, Mayor, and City Council members can be intimadating to say the least. Probably most of us can not talk well or at all in front of a large groups publicly.
I think there are email addresses for City Council and maybe even phone numbers for City Council Members too somewhere. Or sometimes you can talk to City Council members one on when when you come accross them in this small town. So I am not whining. We want to participate and help our commumity.

participate on Tuesday, October 16 2012:

PEOPLE start going to City Council meetings and voice your opinion. Everything is public. If you don't participate in your government process you have no business whining.

Just saying... on Tuesday, October 16 2012:

Here is a reminder of what Assistant City Manager, John Fulton recommended. Keep in mind when reading this, two things...Puppet and Puppet Master.
I would not be surprised this was discussed and put together behind doors between Hladick and Fulton before Fulton presented this. There is really something wrong in Denamrk folks, when we compare the needs of supplying the museum, and buying new equipment for the clinic. Oh wait...yes, the clinic only helps to preserve and save lives, while the museum attendance is rock bottom and provides???? Yep I would say priorities are a bit mixed up.
There is one person who thinks about nothing else but ruling the community and will try to do what ever it takes to line his pockets.
Who decides whether or not he continues as City Manager? Council? Oh right, Johnson...How about the community evaluated the City Manager, Assisatnt City Manager, Planning Manager, and all other positions where decisions affecting our community, are evaluated by the community.
How about presenting to the community members the bonuses council voted on and given to these very same people. Not anything more than bonuses. I bet we would be surprised and sickend.

Just saying...

"Assistant city manager John Fulton says there isn't enough money in the tax fund to pay for the museum's request. Fulton lays out other options, and recommends that the city pay the grant in full using money from the general fund.

Fulton says he made that recommendation in recognition of the museum's effort to fund the exhibit from other sources. They've raised over $370,000 so far to build the plans. But in their proposal, museum staff say they will have to return those funds if they can't get another $200,000 grant to fill the gap.

Fulton acknowledges that local nonprofits usually don't get additional money from the general fund beyond the annual grant process. But he says there have been exceptions: For example, the city has given the clinic extra money after the grant cycle had ended to help pay for repairs and equipment.

... on Tuesday, October 16 2012:

Just saying...Just sayinnn shut the hell up you sound foolish.

Seriously on Tuesday, October 16 2012:

Obviously, there is a miscommunication somewhere seeing that both Zoya and the Chris Hladick would not go on promoting this, because that means it will effect them as well. Think a little...

The community put's up with this because most of the dealings are done behind closed doors. It is a rare instance things slip through and we have a chance to see what's what.
I keep going back to Zac and his slogan for running for his seat on council, promise..."transparent" Zac, why are council members allowed to manipulate funds, at the cost of the community? You are one that may be able to correct the goings on, and lead. Will you stand for the community? surely, Johnson and Hladick won't. IMPEACH !!!!! IMPEACHMENT!!!!!

.... on Tuesday, October 16 2012:

Y'all are a bunch of retards. Maybe, you should wait until you attend the council meeting before you sit here jumping to conclusions and claiming things that you are completely unsure of. Shut the hell up.

AKHistory on Tuesday, October 16 2012:

Corruption and mismanagement at the museum is not a new problem. Makes me miss Rick Knecht! Why does the community put up with this?

Our Community residents on Tuesday, October 16 2012:

<<Not only with this issue but with all issues where our right to live is compromised by dealings made between council members and the City Manager. The City manager is no better. He is living large and no worries on how he is going to meet his monthly living costs. His bonus, I suspect, is larger than the annual salary one makes working at Safeway. That is not right. How about freezing his bonus along with his loyal puppets. There would be enough money then.>>

I agree with this. There should be a freeze on City of Unalaska yearly pay increases, bonuses, etc. I wish we could vote on issues like this. But some of this is done behind closed doors. Also the City of Unalaska has a strong union (self interest) like with yearly increases in pay to City of Unalaska employees no matter how they are helping our community.

long time resident on Tuesday, October 16 2012:

Thanks another long term resident; There is a forum there but only two post about Unalaska Use City-Data's Forums it could be a beginning. But I think we need the forum here on this web site KUCB.org/news
this is where the local news is.

Just Saying... on Tuesday, October 16 2012:

We, as paying living members of this community, need to stand together and voice our opinions loud and strong. Not only with this issue but with all issues where our right to live is compromised by dealings made between council members and the City Manager. The City manager is no better. He is living large and no worries on how he is going to meet his monthly living costs. His bonus, I suspect, is larger than the annual salary one makes working at Safeway. That is not right. How about freezing his bonus along with his loyal puppets. There would be enough money then.
I too will be there on Tuesday. Hope to see all of you long time residence, and members of the community who need to stand up for what is right.
That money should be used to provide education and training for our youth, to give them a chance to better their future. That money should be used to provide better medical care and equipment at the clinic. That money should be used to develop new infrastructures for our youth. That money should be used to help lessen the costs of heating for our elderly, and all families.

Just saying.....

Glennda Dupuy on Monday, October 15 2012:

Bottom line is that if you do not have the money, you do not do it and make the best of what you have. Granted, the musemum is an important part of our community but what kind of community are we going to have if people can no longer afford to live here. If a person can afford to give to this venture then great but to try and force everyone to pay for it is just wrong. Sorry Zoya, I know you have done much and given much and are respected for such, but this is just overstepping the bounds of common sence. I will be at council next week to stand against. No anger, no hate, just voicing my opinion as a very very concerned community member.

another long time resident on Monday, October 15 2012:

Use City-Data's Forums and you can have the forum you're after. Quick and simple registration:

http://www.city-data.com/forum/alaska/1711982-unalaska-dutch-harbor-chat.html#post26525580

long time resident on Monday, October 15 2012:

Website forum; Other threads needed;
100% increase in Utilities?
How and where to contact city Council members.
City of Unalaska Government where is our taxpaying money going? Too many City Of Unalaska employees sitting behind a desk not doing much but making good pay. Yearly increases in their pay, benifits, bonuses, etc. The silent majority in our community need to speak out.
17+ years Dutch Harbor/Unalaska #1 port where is the money going?

Repaving our roads has been talked about for years; the bare minimum was done.
We still live in a muddy dusty town.
Why didn't they pave at least to City Dock, East Point Loop, and to West Ward Seafoods? Well it keeps the City Shop busy good pay and overtime... grading the muddy, gravel roads practilly every day, washing the muddy paved roads almost every day brushing the dusty paved roads almost everday.

Excuse me for my rant. There are lots of good things happenibg in our City, PCR, Parks, Library, swimming pool, and most of all an excellent Elementary and High School.

Just Saying... on Monday, October 15 2012:

As a member of the community, I strongly suggest we all gather and attend the next city council meeting and voice our concerns, and see what happens.

If nothing and this is passed, Argh, that will be a true indicator of the people we voted for, hired and trusted to look after our community and it's members.

If the monies are allocated to helping the community, then I say great job...That is what you were hired and voted to council to do in the first place.

I'll be there...Will you?

"Besides, the museum's attendance is not sufficient enough to warrant an overhaul". Yes I go there about once every five years.

KUCB website is ok... but we really need a forum for our commumity. News stories and thoughts get quickly buried by other news. City of Unalaska does not have a forum at all only... <<Website Feedback Tell Us What You Think! Please take a minute to fill out this form and let us know what you think of this website and the other services we provide>>.

Conflict - Yes on Saturday, October 13 2012:

What is a “Conflict of Interest”

http://www.commerce.state.ak.us/dca/logon/offc/offc-conflict.htm

Haldick - “Any municipal employee or officer, other than the governing body, may not participate in an official action in which they may have a substantial financial interest.”

Johnson, Hladick - “A municipal officer or employee (or a member of his or her immediate family) is a member of a board of directors or governing body or an officer of, or holds a management position with an organization that has financial dealings of $l,000 or more with the municipality that will be affected by his or her vote or action.”

Get your priorities straight on Friday, October 12 2012:

It is a glaring conflict of interest in Councilor Johnson's part, I don't see how it can be anything but so. I definitely won't vote for her next election.

Besides, the museum's attendance is not sufficient enough to warrant an overhaul.

That money can be better used elsewhere than making the museum prettier. An increase in sales tax or an increase in utility rates will be much more devastating to the community than a drab museum.

Get your priorities straight!

Seriously? on Friday, October 12 2012:

Thank you Zac. Hold firm. I have been a member of this community for 7 years now, and am actually looking at leaving due to the cost of living. I will no longer be able to afford to live here with the utility rates going up. I will tighten my belt and make due for the remainder of the school year, so as not to pull my child out in the middle of the year. However, I agree, if there is an extra $200,000 for this project lying around somewhere, then other decisions, like raising utility rates, are called into concern.

Concerned Citizen on Thursday, October 11 2012:

Thank you Zach for being the voice of reason. While I appreciate the museum and what it represents to this community I am strongly against appropriating money for a 'revamp' when locals are struggling to stay here due to the cost of living. I don't know many people who could afford their utility bills going up by 100%. It is just ridiculous to think that this would be an option. I agree with Sarah with regards to Council Member Johnson. It is a conflict of interest for her to be on the board and especially for her to be able to vote on this particular issue. Don't back down Zach. The community needs you!

Politically Incorrect on Thursday, October 11 2012:

I think the reason people are so angry about it is because of the huge sense of entitlement that is being felt here. This is OUR money .. taxpayer money. This is not something to be taken lightly. People tend to get angry when they think they are being hosed and ripped off. Our utility rates and sales taxes are getting raised when there is $200,000 "available" for a museum re-design? I, for one, would like to know what the annual attendance is for the museum? Is our tourism at the level now or in the forseeable future that it warrants a 3/4 of a million dollars renovation of our museum? And, also, the thought of our city council members using their positions to gain advantage for their endeavors is reprehensible. The people of Unalaska are not stupid, but we are being treated as such.

Jason Deleon on Thursday, October 11 2012:

“Proud Museum Member” this isn't about the validity of the museum or its director. The issue at hand is about a Councilor, moreover a group of them that seem out of touch. They don’t appear to realize that $200,00 for a remodel is not where the money should go because as you say the museum CUURRENTLY is a “non-profit which is pretty much one of the only public place in town that gives people a quiet place to learn and reflect about the history of the Aleutian Islands.” If it’s not broke why fix it? That $$$,$$$ could go toward helping the skyrocketing cost of living here.

Proud Museum Member on Thursday, October 11 2012:

I am surprised to read so many angry comments against the museum staff and honestly never thought redesigning a museum could raise that much hate around this community!
We're talking about a non-profit which is pretty much one of the only public place in town that gives people a quiet place to learn and reflect about the history of the Aleutian Islands.

Pakushin on Thursday, October 11 2012:

Hmmm. Is there a fiscal responsibility gap here? How does someone who is in charge of running an eight-year Museum overhaul pull the trigger on the project with only half the funding in place and no plan to come up with the other half other than begging the City for it? What a risk, especially knowing you would have to give back the majority of the funding you do have if you can't figure out how to fully fund it. How did the MOTA board ever let this project advance so far without the funding in place?

Back to The Future on Thursday, October 11 2012:

2010-2012 is 2 years. how do you not realize the money wasn't there?

Juan S. on Thursday, October 11 2012:

Look people blurred lines and what some might consider corruption have been a part of the museum since Zoya took over. Watch the place this winter. You’ll see CITY snow equipment plowing her parking lot and maintaining her walk way, but you will not see that at other non-profits like the domestic violence shelter or other brick and mortar non-city buildings. No one should be surprised that this will probably pass and the pork barrel will just get that much bigger. You said it “Mary S.” you voted her in…

Fistful of Dollars on Thursday, October 11 2012:

When I look at this story and see what appears to be a quote from the City Manager that the "support was given verbally...technically, funds were never appropriated", what gall and ineptitude this guy exhibits. There is no "technicality", and no such thing as verbal support leading to funding without a vote in our form of city government. For him to suggest that there is is criminal in my opinion. Where does the all the money go, Mr. Manager? I am sure that he still managed to get a glowing evaluation from council (Zoya!) in spite of issues like this, the paving debacle, city engineer scandal, etc.

What is quite surprising is that the money that they say was committed to does not appear to have been all that important to Zoya and the Museum if no one noticed that they never actually got it. Isn't that odd? Assuming that it was actually needed, wouldn't it have come up for discussion in the financials between the director and her board, on which Hladick sits? Really? No one noticed the absence of $75000 that they were expecting from the City? Suck it up, Museum. Pay closer attention to your books, and let that be a lesson to you.

I urge all council members to vote this down.

Shirley on Thursday, October 11 2012:

This type of underhanded nonsense is just more of the norm from our city management. Then, they just explane it away with reasoning that only a management type could ever understand. Its just more shell games and smoke screens.

Sarah on Thursday, October 11 2012:

I do know that Johnson has looked and fought very hard for other funds for this project. It's not due to poor planning or lack of dedication to the project. It's too bad that now she has to fight between funding and a very glaring conflict of interest. I wonder if it's making her question her decision to run for City Council, and I also wonder if this should be considered for other heavily City funded positions running for Council. If City employees can't run, then perhaps heavily funded positions shouldn't either, because of instances such as these. I also think it's irresponsible for our council members to verbally promise anything to anyone...sorry, but handshakes don't mean much, it needs to go to a vote and be decided on by majority.

John on Thursday, October 11 2012:

Way to bring reason Zach.

laurie lame on Thursday, October 11 2012:

we as community members don't attend meetings because decisions ARE already made behind closed doors (usually drinking). The city manager is never in office, he's on vacation like the rest of the directors....(pcr, pw, etc...) johnson just needs to get her *&%# together. poor planning. sad that these are our elected officials.....wish we could vote for a new manager and asst city manager too.

Mary S. on Wednesday, October 10 2012:

I know they are all trying their best to do what they think is right, but I’d like to see the money going to make my electric bill go down. I am kind of disappointed in Councilor Johnson. I voted for her a while back and wish I could change it.

Crooks on Wednesday, October 10 2012:

How in the world is Johnson seriously going to do this to the community? How is Hladick promoting this while he is sitting on the board? How does our community get to this point and having outright corruption on the City Council. How do the councilors make a verbal commitment of $75,000, was there a secret vote or meeting? Don’t they have to do a not-so secret vote for it to count? $75,000, $120,000 or $200,000 this is crazy it's going from the city to Johnson pocket because Johnson poorly planned out the project and needs some quick cash. Does Johnson get a bonus for bringing in extra money? If she does get a bonus she does have "personal financial gain" because she’ll get a bonus for getting this crazy amount of $$$. How, how, how... Maybe someone needs to impeach her for outright corruption.