Session 06-04, a Regular Meeting of the Homer Economic Development Advisory Commission was called to order at 6:00 p.m. by Chair Robert Howard in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMISSIONERS: COREY, HOWARD, MURPHY, RILEY, SCHEER.

COUNCILMEMBER: WYTHE

STAFF: CITY CLERK CALHOUN

ADMINISTRATIVE ASSISTANT HOLEN

ABSENT: COMMISSIONERS: FAULKNER (unexcused), NEWBY (excused)

APPROVAL OF AGENDA

MURPHY/SCHEER - SO MOVED TO APPROVE THE AGENDA.

There was no discussion.

VOTE: YES: ALL WERE IN FAVOR.

Motion carried.

PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA. (3 MINUTE TIME LIMIT)

Frank Vondersaar began commenting on the Visitor subject and was told that pursuant to the rules he could not speak on this matter until Audience Comments.

RECONSIDERATION

None scheduled.

APPROVAL OF MINUTES

A. Unapproved meeting minutes of July 11, 2006, Special/Regular Meeting.

SCHEER/RILEY - SO MOVED FOR THE APPROVAL OF THE MINUTES.

There was no discussion.

VOTE: YES: ALL WERE IN FAVOR.

Motion carried.

VISITORS (Chair set time limit not to exceed 20 minutes)

A. Free Wi-Fi Internet Service in Homer - Presentation by David Scheer and Aaron Larson.

Commissioner Scheer stated that he just wanted to introduce this idea and that the packet contains quite a bit of information. He reported researching this after a Town Center Task Force meeting and that he found that there are some interesting things going on in Homer in this realm already and that he thinks it is a potentially important economic development opportunity wherein the Commission might consider researching, particularly in the view of the tourist economy and the new infra structure in the Town Center, and the fact that the Commissioners have expressed interest in developing high tech opportunities in Homer. He introduced Aaron Larson from SpitwSpots, who are currently setting up a Wi-Fi Mesh System in Homer and who will introduce the Commission to the technology.

Aaron Larson introduced his partner Brian and they distributed a flyer that contains their presentation. He provided the history of SpitwSpots Network and their dreams and ambitions. IGW is Insanely Great Wireless that embodies the spirit of their endeavor, to create a great network for the purpose of sharing enthusiasm for technology by bringing free, affordable and convenient internet to the community:

Currently have over 20 nodes deployed across the Homer area provide over 100 Square miles of residential service.

Developed an innovative method of providing free internet by combining sophisticated splash pages with advertising opportunities and shared password local hot spots. Huge increase in use.

During first 4 months free service was available, the splash pages were hit 2,000 to 3,000 times per month with an average increase of 33% per month. Last Month had 6,313 hits. Current month have over 8,000 hits.

Plan to continue growing and eventually provide "walk around" coverage for entire town.

One of the most important features of IGW is free internet. Ultimately this is dependant on the ability to sell advertising space on the "splash" or "login" pages. So far mild success in this area. If unable to sell add space they will either reduce or disable free access.

If they had more funds available they could roll out new nodes faster and create the valuable "walk around" area more quickly - funds through loans, grants, or purchases of HotwSpots.

EDC could sponsor their splash pages.

If the City owned advertising space on their splash pages not only could they ensure that the free service would continue, the EDC could also use that real estate to further stimulate the economy or provide additional public service. The ad spots could contain information on activities in Homer or could be made available to the Chamber of Commerce as a way to promote local businesses.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS (Chair set time limit not to exceed 5 minutes.)

A. Staff Report - by Special Projects Coordinator Holen

Special Projects Coordinator Holen elaborated a little on her written report, noted that the Long Range Fiscal Plan was distributed tonight by the Clerk's Office and was the City Manager's idea for them to review, adding that a lot of work went into developing that plan and it is still fairly current. She inquired about creating an Economic Development Plan for Homer and has continued to do some reading knowing that this is sort of one of the big goal of this Commission to create a plan and keep it updated over the years. She reported that the contract for developing a New Homer Comprehensive Plan has a deadline for proposals of September 15th, adding that it will be interesting to see how this group can interface with the contractor, who will be working on the economic development portion of that plan. She expressed hope that it will be a little more detailed that what was produced in 1989. She emphasized her belief that the EDC will be quite a resource for the contractor or visa versa. She encouraged the Commission to be thinking about how soon they want to get started, process to use - dive in, step by step, research and analysis first, some surveying, etc. She noted the guideline she submitted in the packet from Wisconsin, "A Guide to Preparing the Economic Development Element of a Comprehensive Plan, to and commented on the purpose of that guideline. She told the Commission that she felt that the check list and twenty questions in the back could provide a good starting place for a planning effort. She inquired if the Commission would be interested in having John Parker from the Economic Development District (EDD) in Kenai as a visitor to share his perspective on Economic Development Planning, EDD and regional development issues. She commented on the lack of meeting spaces in Homer and that the Mariner Theatre would be available.

The Commissioners made no comment.

PUBLIC HEARING (3 MINUTE TIME LIMIT)

None scheduled.

PENDING BUSINESS

A. Free WiFi Internet Service in Homer - Discussion to Determine Feasibility

Chair Howard inquired if Commissioner Scheer has a interest in this activity that would create a bias, was financial etc.

Councilmember Scheer responded in the negative.

Chair Howard noted that Commissioner Scheer has no conflict.

The Chair and Commission had no further comments.

COREY/SCHEER - MOVED TO BRING THIS ITEM TO THE FLOOR FOR DISCUSSION.

There was no discussion.

VOTE: YES: ALL WERE IN FAVOR.

Motion carried.

Chair Howard opened the floor for discussion. Discussion included pros, cons to being a private sector activity rather than a City activity and support for the concept:

This is a great idea, hope it is economically feasible, do not really see a present role for this Commission.

Agree with the gentlemen, but do not see a City involvement.

Do not know if it brings economic development to the City or not. Would like to look into this if the Commission agrees.

These guys are rolling along pretty quick and this is going to happen. Matter of whether it will happen in a manner that is most beneficial to the City and to the public.

Beneficial to the City if the Town Center were covered, possibility of cafes etc. Possibility of the City trying to cover areas that could not be covered by internet and provide that service to the public.

Possible pay back to the City, just through advertising dollars spent.

Leave for the entrepreneurial private sector to bring to the town and will be, obviously, driven by their ability to provide service at an economical cost. It will happen when there is enough money to make it profitable.

The EDC should not get involved in this on behalf of the City. Do not see the City subsidizing an activity.

See this, not as the City subsidizing, as the City getting on board with something that has potential for a good pay back.

This is something that is valuable, it has cachet. When a town gets a Wi-Fi system set up its all over all the high tech magazines and that's really good advertising. This is worth looking into and putting a little bit of research time into it. This is a definite opportunity for the City to take advantage.

There are DSL and wireless connections.

The City cannot show favoritism, one wireless company over another. It was noted that it would have to go through the Request for Proposal (RFP) process.

Is it the City's role to bring Wi-Fi here? What would be the City's role? City doing hot spots? City advertising.

Attracts tourism and therefore benefits the economy of the City and its residents.

Same provider of wireless internet for multiple and contiguous zones is most useful.

Concern about City liability, seems like a lot of City liability and little pay back. Liability if something goes wrong, if something were to happen, vandalism, etc.

Let the City just be another customer, a user and not the driver.

Seems like more of a City wide project.

There are just a lot of questions and it would be good to look into those.

Provide availability of City property for the Wi-Fi companies to lease, etc.

Town Center Task Force commented about a street light in the Town Center having a Wi-Fi antennae. This is a way for the City to be involved that does not require any additional monies. It creates an environment wherein Homer is a place that has created an infrastructure that will accept Wi-Fi.

Work out arrangement with the City or private property as have the phone companies such as ACS, GCI, etc.

With the demonstrated aptitude and enthusiasm of the Wi-Fi groups such as SpitwSpots it is apparent that they will solve these problems. Sometimes when dealing with public entities you're better off to come forth with a plan, such as asking to lease space on a light pole. Sometimes that just works out a whole lot better. A lot of times its better to deal with private enterprise than a public entity, especially since things get done much quicker and more economical.

Concern that this is another potential service that could be an attraction for new businesses and tourists to Homer, little surprised that no one wants to research this.

The private sector should be the driver and the entrepreneur should be the one out there doing the work and research.

A lot of effort has taken and is taking place. It is in good hands. SpitwSpots got applause for bringing this forward, that the Commissioners learned a lot and are still learning a lot about it. This is win/win and positive and not falling on deaf ears.

EDC has to make the best possible decision for the governmental entity. A question of energy source.

MURPHY/RILEY - THE COMMISSION NOT HAVE A ROLE IN THIS AND THAT IT NOT CARRY FORWARD A RECOMMENDATION FOR THE CITY TO BECOME INVOLVED WITH THIS.

There was no discussion on the motion.

VOTE: YES: HOWARD, MURPHY, COREY, RILEY.

NO: SCHEER.

Motion carried.

B. 2007-2012 Capital Improvement Planning Process and FY 2008 Legislative. Each Commissioner will present a list of 5 priorities.

MURPHY/RILEY - SO MOVED TO DISCUSS.

There was no discussion no the motion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Chair Howard asked each Commissioner to report their top five priorities. The Clerk compiled these and provided a list to the Commissioners:

The following is a compilation of the Commissioner's individual priorities and not in priority order and shows the number of times the project was cited as a priority:

Project	#	Project	#	Project	#
Homer City Hall	2	Town Center Infrastructure	3	Conference Center	1
Homer Police Station	1	All Urgent Projects	1	Land Acquisition for New Roads	1
Homer Intersections	2	East End Road Rehab	1	Senior Trail	1
Homer Fire Station	1	Water Treatment Plant and Alternate Water Source	3	Deep Water Dock	1
East Harbor Expansion	1	Fairview Avenue Main to East End and Main to West Hill	2	Main Street Improvements	2
Freight Dock Road Paving	1	Homer Coastal Trail	1	West Hill Transmission Line, storage etc.	1
Spit Waterline Replacement	1	Bridge Creek Water Shed Land Acquisition	1

There was discussion about the list, part of the discussion was whether the Commission should support economic development type projects and/or health, safety and welfare projects.

RILEY/ - MOTION TO SO DO, TO PLACE THE WATER TREATMENT PLANT AND UPGRADE AS TOP PRIORITY.

There were no comments.

VOTE: YES: NON OBJECTION.

Motion carried.

CHAIR HOWARD/ - LET'S PLACE TOWN CENTER INFRASTRUCTURE AS ONE OF THE TOP PRIORITIES.

Brief comment.

VOTE: YES: RILEY, COREY, HOWARD, SCHEER.

NO: MURPHY.

Motion carried.

Some discussion about the Town Center pro and con on being a priority.

Discussion about land acquisition for new roads: Some new roads come as part of subdivisions. On page 7 none of the road listed in the project description are in Town Center. (Lake/Heath to Anderson, Bartlett Avenue to Main Street, Early Spring Street to East End Road, Waddell Way to Heath Street and Poopdeck Street to Pioneer Avenue.)

City right of ways.

Not many connecting roads in Homer.

Homer is growing and needs connectivity.

COREY/RILEY - MOVE TO ADD ROADWAY RIGHT OF WAY ACQUISITION BE PRIORITIZED AS NUMBER ONE. (LAND ACQUISITION FOR NEW ROADS.)

Chair Howard noted that this is not his number one priority.

VOTE: YES: ALL WERE IN FAVOR.

Motion carried.

Discussion continued: The Fairview Extension Main to West Hill Road and to East End was discussed, predominately its importance. The Commission discussed this as one project and not as two as it is described in the CIP document. Sidewalk, curb and gutter were noted as important.

MURPHY/RILEY - I MOVE WE ADD THE FAIRVIEW EXTENSIONS TO OUR LIST.

It was clarified that this is both extensions Fairview Avenue - Main to East End Road and Fairview Avenue - Main to West Hill Road.

VOTE: YES: ALL WERE IN FAVOR.

Motion carried.

Chair Howard called for the fifth priority.

Commissioner Murphy proposed that the fifth priority be either the Deep Water Dock or the East Harbor Expansion and that both appear to be huge economic stimulaters no matter how these projects are triggered and that it appears that there are plenty of Coast Guard and Department of Homeland Safety money to ease these along.

Chair Howard stated that he does have general concerns regarding the Spit Waterline and a solid waterline all the way out to the end of the Spit needs to be high, does not cost a lot of money as compared the other projects and is very doable.

Special Project Coordinator Holen responded to Councilmember Wythe's inquiry that DEC grants are unlikely unless water and/or sewer projects are number one priority, therefore, every year the Council puts this type of project as the number one priority just for that reason. She advised the Commission that this is the only known stipulation.

Discussion continued in support of economic projects, such as the Deep Water Dock or East Harbor Expansion.

MURPHY/RILEY - SO MOVED TO ADD THE DEEP WATER DOCK AS ITEM NUMBER FIVE ON THE PRIORITY LIST.

Discussion: Tough choice between the Deep Water Dock and the East Harbor Expansion, what the Deep Water Dock has going for it, is that it is already there and this is an expansion, whereas the East Harbor requires new construction. Both have huge economic impacts.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

1. Land Acquisition for New Roads.

2. Water Treatment Plant Upgrade/Alternative Water Source

3. Town Center Infrastructure

4. Fairview Avenue - Main to East End Road and Main to West Hill Road.

5. Deep Water Dock Expansion Phase I.

There was some discussion about trails and their economic development value. This is a big issue in the City right now. There have been some visiting presenters who have emphasized that economic development impacts and benefits of having a good trail system in cities. Homer has a large number of visitors/tourists. Parks and trails are wonderful, enhance the quality of life, make everybody happier, provide more options living here. If there are limited resources and the choice is between a trail and a water project or road or buying a new fire engine; the priority has to go back to the basics. Is Homer lacking in basic infrastructure? Is the current state of sidewalks and trails in Homer at a level that will at least make it so that the town does not suffer a poor image to tourists and residents? Need to figure out whether Homer can use any extra money on trails and such as opposed to paving a road.

Chair Howard suggested deferring this to the Parks and Recreation Commission to evaluate, it may be a economic matter that this Commission needs to look out; however, this Commission needs to look to the Parks and Recreation Commission for some direction. A discussion to have on the joint worksession.

Discussion continued: Reference was made to Maslowe's Hierarchy and that there has to be the foundation and going up the pyramid there is more and more room for philosophical, philanthropic, and esoteric embellishments, because of mastering the foundations below that allow those things to be indulged.

Some examples were cited: Never saw someone in rural Vietnam who was starving and did not know where the next meal was coming from, say, "Gee, let's build some trails."

Basic needs have to be met. Have to have safe drinking water, transportation and things like that. Have to look at the five or ten years of expected growth that the current water system is expected to serve.

Is it now that all amenities should be dropped and concentration placed on the basic infra structure?

In some places the quality of life are the basics.

Ten years may seem a long time away, however, the major infra structures to take a long time to come to fruition. These projects do have to start early being prioritized, etc.

Homer is a community very interested in parks and trails.

Would never trade dirty water for trails.

If the sewer system had not have been started 20 years ago, the City would really be in trouble today. That was great foresight.

There were no further comments or amendments, the priority list has consensus.

1. Land Acquisition for New Roads.

2. Water Treatment Plant Upgrade/Alternative Water Source

3. Town Center Infrastructure

4. Fairview Avenue - Main to East End Road and Main to West Hill Road.

5. Deep Water Dock Expansion Phase I.

NEW BUSINESS

A. Memorandum EDC 06-08, Re: Joint Worksession with Parks and Recreation Advisory Commission

Recommendation: The Commission meet with the Parks and Recreation Advisory Commission for a Joint Worksession on Thursday August 17, 2006 at 5:30 p.m.

Chair Howard clarified the day, time and request.

MURPHY/SCHEER - SO MOVED TO DISCUSS, TO BRING THIS MATTER TO THE FLOOR.

There was no discussion on this motion.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Discussion regarding Worksession agenda, about the Parks and Recreation Commission coming to a joint worksession on an EDC meeting day. Too short of notice for good attendance by the EDC. Not directly related to the EDC letter regarding Mariner Park, but Mariner Park could be on the agenda. This is the Parks and Recreation Commission meeting that they are inviting the EDC to, therefore, is on their meeting day and will be their agenda, however, the EDC may request addition of Mariner Park. The Commissioners stated that the appreciate the invite and really like the idea of a joint session. The EDC could invite the Parks and Recreation Commission to one of the EDC meetings to talk about the Mariner Park issue and not discuss Mariner Park at this first joint worksession. The appropriate time to talk about Mariner Park is after the EDC receives the feed back from the other Commissions, maybe November. The August date is not enough time for scheduling purposes for the EDC, there is, however, enough notice for September for most of the EDC. Unknown at this time if the September 21st date works for the Parks and Recreation Commission. There was discussion about not scheduling much of anything, if any, for meetings in December. The EDC expressed concurrence in requesting that the response from the Parks and Recreation Commission regarding the worksession rescheduling be emailed to all of them.

MURPHY/RILEY - SO MOVED TO RECOMMEND THAT THE EDC MEET WITH THE PARK AND RECREATION COMMISSION ON SEPTEMBER 21ST AT 5:30 P.M. (This is the Thursday in September of the Parks and Recreation Commission's Regular Meeting.)

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

The City Clerk confirmed that this would be forwarded to the Parks and Recreation Commission.

INFORMATIONAL MATERIALS (NO ACTION MAY BE TAKEN ON THESE MATTERS, THEY MAY BE DISCUSSED ONLY.

A. City Council Unapproved July 24 2006 Regular Meeting Minutes.

B. Letter to Commissions regarding Mariner Park highest and best use.

C. A Guide to Preparing the Economic Development Element of a Comprehensive Plan

There were no comments on informational materials.

COMMENTS OF THE AUDIENCE (3 MINUTE TIME LIMIT)

Audience may comment on any matter.

Amy Solozynski, City resident, stated that the reason that they came was to state that they are providing wireless internet services as well as other providers in town. She advised that their, she and her husband Tom Solozynski, business name is Cosmic Hamlet. Net, that their business has been a little over two years in the making. She thanked the Commission for the opportunity to speak and the Commission thanked them for coming.

Aaron Larson informed the Commission that they, SpitwSpots had already asked the City about using City property to deploy wireless. He clarified that they had inquired about what it would take, permits or whatever, to place antennas on City property, since there are some places where the City actually has superior real estate in comparison to any of the local businesses, for providing service. He reported that they had contacted the City Manager's Office, spoke with an engineer and were told that someone would get back to them and that they have never heard further. He stated that if there were some sort of permitting process in place that would be helpful for these types of things.

Commissioner Murphy replied that these new businesses are trail blazing and that this takes patience and that dealing with the government is very cumbersome.

Commissioners encouraged that all of these businesses keep pushing, call back, follow up and then talk to your Council person.

Mr. Larson relayed a comment from his partner, who did not feel that they had explained, in their presentation, that these log in pages could, potentially, be used by the City for development of the economy aside from providing of the free internet. Just because these are viewed so often by so many people within the City limit and the cost to have the City message on there is so little. There could be Chamber of Commerce information, City activities, places for tourists to go and things of that nature.

COMMENTS OF THE CITY STAFF

City Clerk Calhoun had no comment.

Special Projects Coordinator Holen stated that just wanted to commend the group for how they handled the CIP exercise, that she thought it went quite smoothly, rationally and that they did a good job.

COMMENTS OF THE COUNCILMEMBER

Comments of Councilmember Wythe reported to the Commission that it is election season and the application is open for the two Council seats for three year terms each and the Mayor seat is open for a two year term. She reported on the ballot issues: Establishment of the Community Schools as a division/department of the City of Homer. Continuation of the HARP (Homer Accelerated Roads Program) tax, 3/4 of one percent - should it be continued, could it be used for new roads and could it be used for trails. She elucidated the allowed uses of the current HARP and the benefits of being able to do new roads and trails. Consideration for changing the current sales tax 6.5% to a seasonal sales tax wherein for half of the year it would be 7.5% and the other half it would be 5.5% ⁽¹⁾. Ms. Wythe commented on sales tax. She further reported that the Council moved to contribute some funds to a Meth Amphetamine awareness program.

COMMENTS OF THE CHAIR

Comments of Chair Howard thanked the Commissioners for their attendance and for working through the Capital Improvement Program, which was fun.

COMMENTS OF THE COMMISSION

Commissioner Scheer stated that he had a blast tonight and that it was really fun having lively discussions and that he really appreciates it.

Commissioner Murphy wished all happy trails.

Commissioner Riley had no comment.

Commissioner Corey commented that she attended the Planning Commission meeting on the Conditional Use Permit for Fred Meyer and relayed that there was great negativity feeling in the room and that one after another was against this building coming in and that comment was made that they were trying to cut the parking down for the RVs to three days. She stated that she sat it out until about 9:30 p.m. and that she asked her friend to hang in there and ask a couple more questions and that her friend advised her that the meeting did not get over until 1 a.m. She advised that one of the things that she did notice, that really hurt her feelings, was that the people from Fred Meyer had their presentation, stepped out of the room and were outside talking while everybody was giving out of their heart their feelings about this. She expressed her opinion that the Fred Meyer people should have been in the room hearing what was said. She noted that there were a few people who commented in favor of Fred Meyer. In response to the Commission, she replied that there were two gentlemen that got up and walked back in after having missed a lot of the comments. She acknowledged that there was a lot of work that went into "their" presentation. She stated that she is much more comfortable with the rest of the Commission and that she feels more qualified, adding that the Mayor put her here.

ADJOURNMENT

There being no further business to come before the Commission, Chair Howard adjourned the meeting was adjourned at 8:11 p.m. The next regular meeting is scheduled for Tuesday, September 12, 2006 at 6 p.m. There will probably be a joint worksession with the Parks and Recreation Commission on Thursday, September 21, 2006 at 5:30 p.m. in the City Hall Cowles Council Chambers. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

___________________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ___________________________

1. Councilmember Wythe's comments on the sales tax included the Borough 2%.