Session 08-02, a Regular Meeting of the Economic
Development Commission was called to order by Acting Chair Hogan at 6:00 p.m.
on June 10, 2008 at the City Hall Cowles Council Chambers located at 491 E.
Pioneer Avenue, Homer, Alaska.
PRESENT: COMMISSIONER
ERICKSON, HOGAN, NEECE, RAVIN, SCARPITTA
ABSENT: COMMISSIONER
RILEY (excused)
STAFF: ACTING
DEPUTY
AGENDA
APPROVAL
The agenda was amended to add business agenda
structure for discussion under new business.
Request was made to elect a new chair as well as
vice chair under pending business. There was discussion that because the
Commission has been inactive for a year, the current chair position has
expired. Deputy City Clerk Jacobsen explained that because election of a chair
was not included on the advertised agenda the Commission can’t take action on
it at this meeting, but they could move to add it to their next agenda.
Commissioner Ravin commented that there may be two
visitors tonight John Rumery of All Seasons Honda and Dale Banks. He attempted
to put them on the agenda in advance of the agenda deadline. Acting Chair Hogan
noted they could speak under visitors if they come in tonight.
The amended agenda was approved by consensus of the
Commission.
PUBLIC
COMMENT
There were no public comments.
RECONSIDERATION
There were no items for reconsideration.
MINUTES
APPROVAL
A. May 13, 2008 Regular
Meeting Minutes
The minutes were approved by consensus of the
Commission.
VISITORS/PRESENTATIONS
A. Julie
Engebretsen, Planning Technician- Re: Strategic Planning Facilitation
Planning Technician Engebretsen suggested they
discuss bylaws briefly when they discuss their agenda structure.
Regarding the strategic plan, Planning Technician
Engebretsen explained that when she worked with the Parks and Recreation
Commission on their strategic plan it was very helpful for the Commissioners to
explain what they would like to accomplish in the next year or couple years, so
staff knows what they are interested in. It helps staff in bringing pertinent
information to the meetings and it helps the Commission be focused and to
accomplish what they want to work on. She suggested a 30 to 45 minute
worksession after which she would bring them a draft document that they could
amend as they feel is necessary. She doesn’t have any ownership over it, it is
the Commissions plan.
Acting Chair Hogan questioned if it is appropriate
to parcel out tasks for individual Commissioners to work on and bring back to
the group. Mrs. Engebretsen confirmed that it would be a great way to do
things.
Councilmember Wythe explained that there are
specific objectives of this Commission in code, and that is what Council would
like their primary focus to be. The process the Commission uses to get there is
up to them, and Planning Technician Engebretsen is offering to help develop
that process.
STAFF REPORT
& COUNCIL REPORT
There were no Staff or Council reports.
PUBLIC
HEARINGS
There were no public hearings scheduled.
PENDING
BUSINESS
A. Election of Vice Chair
There was discussion of electing a vice chair. The
Commission agreed to hold elections for Chair and Vice Chair at the same time.
ERICKSON/ SCARPITTA MOVED TO POSTPONE THIS ACTION
ITEM TO THE NEXT AGENDA
Commissioner Ravin confirmed that at their next
advertised meeting the Commission intends to elect a Chair and Vice Chair. The
Commission agreed.
B. Lease Committee Appointment
Acting Chair Hogan stated he has a conflict
regarding this agenda item as he is currently in lease negotiations with the
City, and excused himself from the discussion. The Commission concurred.
Commissioner Wythe agreed to assist with the Lease
Committee appointment while Acting Chair Hogan stands down. She explained
purpose of the EDC representation on the Lease Committee is to bring a view
point of how the leasing process could work to be the most advantageous for
business development. She opened the floor for nominations.
Commissioner Erickson
expressed her interested in serving on the Committee.
RAVIN/SCARPITTA
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
C. Memorandum from Planning Technician Engebretsen Re:
Strategic Planning Facilitation
The Commission agreed to schedule a special meeting
on June 24th at 6:30 and have this as an agenda item.
Commissioner Erickson asked if there is anything the
Commission should do to be prepared to discuss this. Planning Technician
Engebretsen asked that the Commissioners come back with their personal goals
and specific projects they think the City should be doing, so they can make an
action plan to move forward.
RAVIN/NEECE MOVED THAT WE HAVE A SPECIAL MEETING ON
THE 24TH OF JUNE
NEECE/ERICKSON MADE A FRIENDLY AMENDMENT TO REVERSE
THAT ORDER.
There was no discussion.
VOTE (Friendly amendment):
NON OBJECTION: UNANIMOUS CONSENT.
Motion carried.
There was further
discussion.
VOTE (Main motion as
amended): NON OBJECTION: UNANIMOUS CONSENT.
Motion carried.
Councilmember Wythe noted that she cannot make a
motion but suggested the Commission also review Robert’s Rule as they apply to
the Commission.
NEW BUSINESS
A. Cook Inlet Salmon Task Force
RAVIN/SCARPITTA I MOVE TO BRING THIS RESOLUTION TO
THE FLOOR.
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
Acting Chair Hogan commented that the legislature
has formed a task force and have had hearings in Soldotna and in Mat-Su. The focus
is wide ranging. He spoke to Senator Tom Wagner who strongly recommended they
try to get hearings held in the Homer area. He would like to have Council bring
down Dr. Roland Maw to speak regarding economic impact of the Cook Inlet
Commercial Fleet, and Commercial Fishing in the state. Mr. Hogan said when Dr.
Maw spoke to the Borough at their last meeting he said Homer has the largest
growth of permit holders in development of fisheries business of any community
in the State right now. Acting Chair Hogan understands it is the focus of the
task force to disassemble the upper Cook Inlet drift and set net fisheries. He
thinks the economic impact of that would be huge in this community.
Question was raised whether this is timely. Acting
Chair Hogan said the task force gives their report to the Legislature at the
next session, so they will be active through December, and August or September
would be a good time to come to Homer and take testimony. The statement needs
to be made over and over that fishing is important to the Homer economy.
Council needs to be the ones to ask them to hold hearings in Homer. He thinks the focus of what they would want
to bring to the task force is the economic impact of the fishery in this area.
There was discussion of the word politicalization
in the resolution and whether it is the correct word or spelling of the word.
Commissioner Scarpitta whether politicalizing can be stopped or suggested that
they not do, because we are all part of the political process, rather than stopping
the specific actions that are negatively going to impact fishing here.
ERICKSON/NEECE MOVED THAT WE SEND THIS ON TO
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
B. Homer Chamber of Commerce Small Business Development
Expansion
Planning Technician Engebretsen commented she spoke
to Tina Day at the Chamber of Commerce. She explained that they will not be
advertising for the new employee until fall. There is time, but if the
Commission wants to act on this tonight they could move to recommend that City
Council fund this.
NEECE/RAVIN MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
Councilmember Wythe was excused from the meeting at
Commissioner Neece expressed that he is totally in
support of this but has reservations on pushing for this project right now. He
explained that he has worked with Mark Gregory on various projects. He has been
pushing for an incubator and economic district in the Homer area for many years
and if we are going to invest money in this he wants to see a person on staff
here. Presently Mr. Gregory serves the peninsula, Kodiak and the Aleutians. Homer is unique enough and has a lot of
potential to develop in business growth and a lot of different things, and we
should use that perspective when looking at this. He would like to see it
develop with a person here to only work for the southern peninsula and with out
the ability for the person to be pulled off into other areas.
Commissioner Scarpitta commented that in discussion
with the Chamber the statistics are indicating that it may not be worth the
cost of a full time center here in Homer. Currently they are proposing a half
time position and would be here for that time. If we are paying for the person
to be here half time, then they will be in Homer.
Commissioner Erickson commented that when
developing her business, the current program here seemed like it was just an
information center, not really giving them the tools they needed. They had to
find a lot of the stuff on their own. In the midst of money getting tighter she
doesn’t see a reason for the City to fund it if it just superficial. Commissioner Neece agreed and reiterated that
is why there needs to be more discussion, as it needs to be an action based
program.
Question was raised how the group in Kenai is
structured and if the City provides any of these types of services. Mr. Neece
responded his understanding that Kenai Peninsula Development District is a
private agency that helps stimulate business. They get money from a lot of
different organizations to provide the service. They lease the building to
clients to use the facilities, they offer low interest loans, they have ten
acres with a large workshop and large building that could house manufacturing.
Planning Technician Engebretsen commented that
people used to come in to the Planning and Zoning office and asked land use
type questions for a particular project they were interested in pursuing. She
said it doesn’t happen much any more. She agrees there is a market in Homer for
people to receive business counseling and funding for business ideas and
opportunities.
Commissioner Scarpitta relayed his experience in
working with Mr. Gregory and the current system and expressed similar concerns
to Commissioner Erickson’s. He thinks the Chamber is interested in trying to
expand it to a full time position in the future, and starting with half time
would be okay. Mr. Scarpitta noted that
the Chamber has already begun work on the business incubator and doesn’t know
how much time the Commission needs to expend on that particular item, but
encouraged anyone who was interested in participating at the Chamber level.
Point was raised that Sustainable Homer has a
strong presence with business incubator project as well.
Commissioner Ravin commented that he has been in
discussion with the City regarding information on exempting sales tax on food
items and the impact it will have on the city funding. He doesn’t see how the
City will have the funds available to do this.
Planning Technician Engebretsen explained that the
Commission can make a recommendation for this to be considered the 2009 budget.
She suggested that if they have specific questions, staff could talk to the
Chamber and bring information back to the Commission.
Commissioner Erickson questioned if this is
something that could fund itself, rather than it becoming a responsibility of
the City. People who really need the service would be willing to pay for it.
Acting Chair Hogan concurred and noted he would like to see other funding
sources than having it come out of the taxpayers pockets.
Commissioner Erickson noted that there may be
grants available or other options. As a businessperson she sees what is
happening economically to the people around her. She questions what is going to
need to be cut back and what is going to be essential to the life of Homer.
This is a neat idea, but maybe it just isn’t the right time for it.
NEECE/SCARPITTA MOVED TO PUT THIS ON THE AGENDA FOR
THE AUGUST 12TH MEETING.
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
C. Garn Wood Heating System
Commissioner Ravin had no additional
information.
D. VISTA Program
NEECE/RAVIN MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION:
UNANIMOUS CONSENT.
Motion carried.
It was noted that this came up as a request for a
student intern, but appears to have ballooned into something larger.
Acting Chair Hogan commented that this is a
resource that the Commission might be able to utilize in the future.
Commissioner Erickson noted that VISTA might be a
good resource for the Chamber in their small business program development.
Acting Chair Hogan commented that his thought in
having a student intern ties in to his earlier comment that of dividing tasks.
It would be helpful if they aren’t drawing on the City’s resources, as staff
only has so much time. He recalled the City Manager commented that about 50% of
staff’s time is attending to Commissions. His idea is to involve local youth to
help them mature and learn workforce skills, and help the Commission get things
done.
Deputy City Clerk Jacobsen noted that two other
groups’ bylaws allow for appointment of a student representative.
He would like to discuss it at their special
meeting. There was no objection from the Commission.
Planning Technician Engebretsen commented in
working with students, a lot of times they produce great results, but also
require a lot of oversight. She said the Anchor Point Senior Center utilized
the VISTA program for several years, which has helped them build their senior
house 4-plex they are building now. They generally hired local people to be the
VISTA person. Special Project Coordinator Holen’s suggestion of applying for it
in the event it might happen in the future might be beneficial for the
Commission.
There was brief discussion that there are groups at
the high school that might be interested and also the college students.
E. Small Cruise Ships
Commissioner Erickson commented that she spoke to
someone who grew up in Homer and is currently working for Cruise West, who used
to come in to Homer. His comment was that docking fees are a reason that they
don’t come in to Homer. She used to be on the cruise ship committee with the
Chamber and they were targeting the smaller cruise ships because the community
can host a group of 100 people nicely. Larger ships bring in over 1000 and that
is too large. She suggested one of their research items be looking at a cost
comparison. She noted the larger ships are on a pattern that is the most fuel
efficient. When the smaller ships come in, it has been her experience that they
bring a lot of money into the town. She feels there is a market for the smaller
ships that the City needs to find out what it is that keeps them from wanting
to dock in Homer.
Planning Technician Engebretsen commented that when
she lived in Valdez she had worked with the industry in the past and said there
are great things to do in Homer for the day but they have to cross a lot of
open water to go anywhere else like Kodiak or Seward, and suspects those are
larger impediments than the docking fees. She noted the less than ideal docking
situation Whittier used to have, but if the location is desirable enough, the
ships will be there.
Comment was made that they should know what the
docking fees are and perhaps there could be some discussion on incentives to
bring more of them in.
Commissioner Ravin commented that they have to book
their scheduled destinations at least a full year in advance. Kachemak Bay
hasn’t had a cruise ship here in several years. He proposed waiving the dockage
fee for the first cruise ship from any company in 2009. If we give them a
freebie, maybe they will come back because they like Kachemak Bay.
Commissioner Neece commented that Holland America
is working with Land’s End and busing a group down from Seward once a week
throughout the summer.
RAVIN/NEECE MOVED THAT THEY PUT A RESOLUTION IN
FRONT THE
Discussion points included:
·
We
need to know the docking fees before we do this because of the income the City
could receive from the larger ships.
·
More
research needs to be done on the subject before we make this decision.
·
It
is a good idea to try to enhance them in here, but we need to be smart about
it.
·
We
may be in the price range as other City’s.
·
Part
of the problem is how the Homer port is being marketed.
·
We
are in a competitive market not only with cruise ships, but also seafood,
freight, and so forth.
·
It
would be good to have a representative from Port and Harbor attend a meeting so
the Commission could ask questions.
·
Last
years revenues for the Deep Water Dock were $34,000 and $15,000 for the Pioneer
Dock.
VOTE: YES: HOGAN, RAVIN
NO:
SCARPITTA, NEECE, ERICKSON
Motion failed for lack of a majority.
There was consensus of the Commission that they
would like to have more information regarding other ports fees to compare with
the City’s fees for Cruise ships to dock and discuss it further at the July
meeting.
F. Agenda Structure
Acting Chair Hogan suggested the Commission have a
recurring agenda item for a forum for local business to bring up concerns on
issues regarding City policy that may be affecting their business.
There was discussion that it could be a good
opportunity and would let the business community know there is a friendly ear.
Point was raised that they should consider a limitation on time to avoid
discussion taking up their whole meeting.
Planning Technician Engebretsen suggested the
bylaws need to reviewed and revised. She noted some little things that will
help the Commission and Staff. She offered to bring them to the special meeting
for review and discussion.
INFORMATIONAL MATERIALS
A. Fuel Taxes
Commissioner Ravin thanked Special Projects Coordinator
Holen for providing this information. He noted that the City’s cut on local
sales tax for 2007 is 4.5% rounded the City’s amount was $6.5 million because
it is a nice round number. His rough estimate, based on his household is that
approximately 30% is generated from food and 37% is from fuel numbers. He
estimates the City brought in $2 million tax on food and about $2 million tax
on fuel. Fuel tax revenues are expected to double. Off the cuff he figures the
City will roughly double their take on fuel tax. He wants to ask the City
Council to remove sales tax on non prepared grocery food items. That will free
up about $2 million worth of citizen money for discretionary spending in our
community, thus improving local commerce. The City is reaping a windfall on
fuel taxes and he would like to see them give some of that back to people who
shop in town for their groceries. He thinks it will come out even.
Acting Chair Hogan noted that the Ordinance to do
that failed last night at the City Council meeting. Deputy Clerk Jacobsen noted
that Councilmember Roberts commented at the end of the meeting that because the
Borough is recommending this go to the voters at the Borough level, the City
should wait for the results, as recommended by Assembly member Smith, before
the City moves forward with it.
Commissioner Ravin reiterated his comments and the
need to bring a resolution to the Council. He noted that there are going to be
a lot of people who leave Homer this winter because they can’t afford to feed
their families.
The Commission continued discussion regarding sales
tax on food and fuel.
It was noted that the Commission can’t take action
on informational items.
It was noted that it can be discussed at the
special session.
Commissioner Erickson briefly discussed cents per
gallon tax on fuel and expects there will be resistance at the government level
as it will result in a loss of revenue. The business owners don’t seem to have
issue with it. She thinks it is wrong that the consumers pay sales tax per
dollar at the pump, where the state pays pennies per gallon. It is only for
diesel and highway gas.
The Commission agreed to discuss food tax at the
Special Meeting and fuel tax on the July agenda.
COMMENTS OF THE AUDIENCE
Members of the Audience may
address the Commission on any subject.
No audience comments.
COMMENTS OF
Planning Technician Engebretsen said the
Commissioner can talk to the Council under the Council agenda. It was noted that
Commissioners need to ensure that they are providing comments that are
supported by the group and not just personal comments.
Deputy City Clerk Jacobsen added that it would be
good for the Commission to have discussion on meeting etiquette.
COMMENTS OF
THE COUNCILMEMBER
There were no Councilmember comments.
COMMENTS OF
THE CHAIR
Acting Chair Hogan thanked everyone for their input
and that this is a good group to work with.
COMMENTS OF THE COMMISSION
Commissioner Neece commented thinking about the tax
issues to discuss at a worksession for a more open discussion.
Commissioner Scarpitta is
excited to work with this group and helping the people.
Commissioner Ravin seconded
what Mr. Scarpitta said.
Commissioner Erickson had
no comment.
ADJOURN
Notice of the next regular or special meeting or
work session will appear on the agenda following “adjournment”.
There being no further business to come before the
Commission, the meeting adjourned at 8:12 p.m. The next Regular Meeting is
scheduled for July 8, 2008 at 6:00 p.m. in the City Hall Cowles Council
Chambers.
MELISSA JACOBSEN, DEPUTY
Approved: