Session 09-06, a Special Meeting of the Economic Development Advisory Commission was called to order at 6:00 p.m. by Chair Hogan on August 25, 2009 at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.
PRESENT: COMMISSIONER ERICKSON, HOGAN, NEECE, RAVIN
ABSENT: COMMISSIONER FAULKNER (excused)
COUNCILMEMBER: WYTHE (Absent)
STAFF: SPECIAL PROJECTS COORDINATOR HOLEN
VISTA REPRESENTATIVE BEVIS
APPROVAL OF THE AGENDA
The agenda was amended to hear item B before item A under Pending Business. The amended agenda was approved by consensus of the Commission.
PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA
There were no public comments.
RECONSIDERATION
There were no items for reconsideration.
APPROVAL OF MINUTES
A. June 9, 2009 Regular Meeting Minutes
The minutes were approved by consensus of the Commission.
VISITORS
A. Tina Day, Executive Director, Homer Chamber of Commerce
Jenny Martin, Mrs. Day’s assistant at the Chamber of Commerce, commented that part of her job with membership services is to go and meet with members, do one on one outreach with them, and find out what kind of projects they would like the Chamber to work on. A lot of retail business owner feedback was that they would like the Chamber to do more advertising and promotion of checking local first before shopping elsewhere. A “Check Local Buy Local” focus group has been established, and a program is being looked at where part of the member’s participation would be to agree to provide at least one kind of discount in their store. They will also possibly incorporate a coupon book for the public to use at these businesses, and a web page through the Chamber that will list the businesses, the coupon book, and possibly a link to the “Buy Alaska” program. Advertising for these new programs will be based on how much members will contribute financially to the program. The point behind this is to encourage the public to check locally first before they go shopping down the road. Part of this will be about educating the consumer how shopping locally can save the community money and time. It will also contain education and training, how to attract local customers, keep local customers, customer service skills, and things like that. They are interested in a survey for the consumer as to why they do and do not shop locally, and businesses as to whether the campaign is working, what could be changed, etc. Ms. Martin said they are seeking the Commission’s support for the program.
There was brief discussion about how much businesses spend on advertising, the renewal statistic information for Chamber members, and costs of goods in Homer becoming more affordable.
Klaus Reicher, Director for the Buy Alaska program, which is a function of the SBA/UAA of the Small Business Development Center, commented that the program is a proponent for taking care of our own, and that means shopping locally first. Their mission is on a larger scale for all of Alaska but buying local is a local problem. This program originated in 1991, and a few years ago web access was developed. It is a free service that provides a web page that has rudimentary information about a company and acts as the company’s web presence if they do not have a web site already. In October 2007 there were about 700 members and now there are about 2600 now state wide. Numbers drive the program and it needs to be populated for people who go on the site to be successful. Mr. Reicher said with this mission in mind he came to Homer to speak to the Chamber about tapping into their membership. He hopes to take what ever template is established here and apply it on a statewide level. He explained the upgrades they are making to their web page. There was discussion about the features it will include and how it can tie into employment opportunities and employment services. Mr. Reicher said they are continuously looking for investors who are interested in partnering with them, which would provide some marketing for the program and the membership. Whether it is buy Alaska, hire Alaska, shop local or what ever, they want to focus on keeping dollars in state.
There was discussion how a persons buying needs change, keeping in mind who we are targeting for Homer, and online shopping.
Tina Day, Chamber of Commerce Executive Director, commented that they drafted some language in hope of a resolution from the Commission supporting this program. It would be good to work with the Commission on an ongoing basis and with Ms. Bevis doing the Economic Development update it would be a nice partnership as they will be going to the Council regarding this program.
Bryan Zak, South West Regional Director of the Small Business Development Center, commented that Mary Parks, who will be attending future meetings, has developed a roadmap of the relationship between the City and Chamber Economic Development Commission. He pointed out that the Homer Chamber of Commerce is probably leading the way for other Chambers throughout the state with this roadmap and model for building this relationship with businesses and the community. He commented the $15,000 that the City contributed came back in hard assets, resources, and training programs that are being offered through the Chamber or that are currently existing in the Chambers office. He reviewed some of the programs that are offered in the family of services of the Small Business Development. He said that in the future the Chamber will come back again requesting funding. They are not duplicating effors, but partnering and working collaboratively with the Chamber so we can leverage the dollars further.
When questioned regarding steps taken by the Chamber regarding budget cuts, Mrs. Day commented that they are working on that, she doesn’t have a contingency plan, but plans come to the Council and show them in a realistic manner what will have to go away. It really is about the amount of money they can leverage. There was discussion regarding funding for the EDD business incubator.
STAFF AND COUNCIL REPORT
Special Projects Coordinator Holen commented that the City Manager will be turning in the Manager’s budget to the City Council on September 14th. It is what the Council uses as a starting point in their deliberations to arrive at a budget for 2010 by the end of the year, and it is looking like a million dollar cut in the budget. The City Manager has let employees know that we can expect to see some changes in staffing, positions not being filled, possible layoffs, possible reduction in hours and over time, furloughs, etc. It is also acknowledged that if there are fewer hours being worked then there has to be a corresponding reduction in workload because there won’t be the people around to do the work. They are looking at everything including contributions to non profit organizations, City programs, advisory bodies and the frequency of their meetings. There will be difficult decisions. The Council doesn’t appear to be in the mood to raise revenues from other sources or to tap into reserve funds. Council is looking for feedback from Commissions regarding their meeting schedule.
Councilmember Zak gave a report of the actions at the previous nights City Council meeting.
Commissioner Ravin applauded the Council on their momentous action of deciding to do without their catered lunches at their worksessions. That is going to save the City an estimated $1500 per year.
Commissioner Erickson commented regarding the restriction of the Open Meetings Act hampering them and she wonders if there is a way for people who want to volunteer and help out and find a way to work around the rules. She understands from others that Homer has a strict interpretation of the Open Meetings Act. She wonders if there is a way for Council to review it and see if they can be broader, like everyone else. Perhaps that way there would be more volunteers; we could save some money, and be able to help push things forward.
Commissioner Ravin added that they are all volunteers and if a liberal interpretation of the Open Meetings Act would allow them to conduct their business in someone’s residence without staff present, the lights on and using City heat, they could get a lot more done. If we could get around this, we could conduct business, or at least do the preliminary work before needing staff to get it all on paper.
Discussion continued regarding the difference with the City Council requirements versus the Advisory body requirements.
Chair Hogan questioned if Councilmember Wythe is still interested in representing the Commission and suggested Councilmember Zak might want to participate since he is here.
City Planner Abboud reported that the Comprehensive Plan is going before the Council and one thing they will be talking about is land use. He suggested that they may want to be involved. He also noted that he has heard comments that Commission input on chapter 8 was not reflected in the draft. There was discussion regarding zoning recommendations. Mr. Abboud questioned what their specific concerns are so he can check into it. He said that to his knowledge other than wordsmith items, all of their amendments were included.
The Commission agreed to discuss it at their next meeting.
PUBLIC HEARING
There were no items for public hearing.
PENDING BUSINESS
A. CEDS Development
VISTA Representative Bevis said Mrs. Erickson’s comments about volunteers reminded her of an issue last year in Kauai where a five mile road to a popular state park fell into disrepair and was closed all winter. The local government said they did not have money to fix the road so local businesses and volunteers got together and fixed the road. Ms. Bevis said it relates to her main mission of producing the Comprehensive Economic Development Strategy (CEDS) which is to follow the guidelines of the Comprehensive Plan that is waiting to be adopted. She is supposed to do this with as much community input as she can get in the time that she has. She plans to have two public worksessions on the CEDS. She plans to have one at the end of September. To make the best use of time she would like to have a brainstorming session to come up with economic development ideas that don’t necessarily need funding, just the City’s blessing that could incorporate volunteers. Things that could be looked at during brainstorming ideas could include estimated benefits, investment, possible partnerships, challenges, and down sides. In early November there could be another session to compare the ideas and prioritize. Ms. Bevis noted the CEDS outline that said that the two worksession would be the meat of sections 5, 6, and 7. It is a document that can be updated every year so the idea is to come up with projects that are doable.
Chair Hogan suggested participating on the radio at the Coffee Table to help get word out there about it.
B. Lease Policies
Commissioner Erickson commented that she would like to postpone this as she has heard that other EDC’s have tried to review the lease policy and she would like to review some of that information and schedule a worksession to discuss it. There was discussion about scheduling and potential lack of quorum for their next regular meeting.
ERICKSON/RAVIN MOVED TO HOLD A WORKSESSION FOR LEASE POLICIES ON SEPTEMBER 16TH AND POSTPONE THE REGULAR MEETING FROM SEPTEMBER 8TH TO A SPECIAL MEETING ON SEPTEMBER 17TH.
There was brief discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT.
Motion carried.
NEW BUSINESS
A. Buy Local Campaign
ERICKSON/NEECE MOVED THAT THEY ENDORSE THE CHECK LOCAL BUY LOCAL PROGRAM THAT WAS PRESENTED BY THE CHAMBER.
There was discussion that Special Projects Coordinator Holen prepare a memorandum that they support Council endorsing a resolution.
VOTE: NON OBJECTION: UNANIMOUS CONSENT.
Motion carried.
B. City of Homer Capital Improvement Plan
ERICKSON/RAVIN MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNAINMOUS CONSENT.
Motion carried.
Special Projects Coordinator Holen reviewed the time line and some of the projects that have received funding.
The Commission discussed some of the projects included in the plan and their lists of priorities, specifically:
· Sterling Highway erosion, specifically in the area of mile 154. There are 7 places in the area where we could lose the road with a major weather event.
· The intersection at the bottom of Main Street and Sterling Highway, and Pioneer and the Sterling Highway needs street lights, and no roundabouts. There is not adequate room for roundabouts that could accommodate large trucks and oversized vehicles through there.
· The Brush Truck can be refurbished in house for about 1/3 of the cost.
· The East Boat Harbor is a huge project that won’t be funded locally. We need to figure out how to pay for it.
· Some of these projects could be privatized and it would bring down the cost.
Commissioner Ravin’s choices included Sterling Highway re-routing away from danger zone, East Boat Harbor, Skyline Fire station, Alternate Water Source, and Fire Engine 4 Refurbishment.
Commissioner Erickson’s choices included Sterling Highway Reconstruction, Homer Intersection Improvements with traffic signals now and no roundabouts, Bridge Creek Watershed Land Acquisition, Creative Fitting of the Port and Harbor Building for less than the cost of design, and Sewer Treatment Plant-Bio-solids Treatment Improvements.
Chair Hogan’s choices included Regional transportation especially maintaining re-routing the Sterling Highway away from danger zones, where we are at risk of losing the road, Homer Intersection Improvements with traffic signals now and no roundabouts, Bridge Creek Water Shed Acquisition, Relocating the Harbor Building.
Commissioner Neece’s choices included Sterling Highway reconstructed as discussed, Alternative Water Source, Tide Gauge/Meteorological Station, Pioneer Dock Fenders, and Bridge Creek Water Shed Acquisition.
C. Cruise Ships in Homer – good, bad, or neutral?
RAVIN/NEECE SO MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNAINMOUS CONSENT.
Motion carried.
Commissioner Erickson is on the cruise ship committee and commented that Holland America will have 9 cruise ship visits next summer. She said they are hoping to get some of the smaller cruise ships in here. An issue they are dealing with is having bumpers to deal with really low tides and also the gang plank.
There was brief discussion regarding the cruise ship head tax and its benefits to communities in the state.
D. Dealing with Controversial Subjects under Visitors
ERICKSON/NEECE SO MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNAINMOUS CONSENT.
Motion carried.
Chair Hogan explained that the visitor regarding the Wet Dogs coming to Alaska received threats after speaking to the Commission about it. He said we can all agree to disagree, but when we start threatening people, he finds it very disturbing. He expressed his concern.
Commissioner Erickson said she was glad this was brought forward for the record.
There was comment that this reflects poorly on those who held that position of opposition.
E. International Pacific Halibut Commission 2012 Annual Meeting
RAVIN/ERICKSON SO MOVED TO DISUCSS.
There was no discussion.
VOTE: NON OBJECTION: UNAINMOUS CONSENT.
Motion carried.
Chair Hogan explained that the spoke to the Director of the International Pacific Halibut Commission about the Commission holding their 2012 annual meeting in Homer. He wanted to advise the Commission that he is working on this and will keep them posted.
F. City Water Rate Changes – effects on business
ERICKSON/NEECE MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNAINMOUS CONSENT.
Motion carried.
Commissioner Erickson commented that it is a little premature to have this on the agenda. She asked that it be on the next meeting agenda. There was no objection.
It was noted that in the current rate study it showed that commercial users are using 70% of the water and residential are using 30% and the high volume users should bear more of the cost. However if you take out the 3 water meters that go to the Harbor floats where water is flowing freely, the end users are not paying for that water. The Harbor, who is considered commercial, is paying for it, so the Port and Harbor fund is subsidizing the water system. The City has the ability to shut that water off and the rate model changes 100%.
INFORMATIONAL MATERIALS
A. “Economic Pie”: First Quarter VISTA report by Carol Bevis
B. Homer Chamber of Commerce EDC Meeting Minutes and Business Creation Process Chart
C. Alaska Partnership for Economic Development News Release
D. Local Newspaper Stories
E. Items of Possible Interest from Recent City Council Meeting Packets
There was discussion of the schedule for the CEDS workshop for September 29th at 6 p.m.
COMMENTS OF THE AUDIENCE
There were no audience comments.
COMMENTS OF CITY STAFF
Special Projects Coordinator Holen said she thought it was a good meeting and they covered a lot.
VISTA Representative Bevis commented about Informational item C. She said the Denali Commission just gave $500,000 to the Alaska Regional Development Organization for the state. They are talking a lot about having the things they come up with be regulated. She has concern that something that has come out of her work with the community’s project is that it is a grass roots effort from the bottom up with a large coalition of community support. This is coming from the top down and every local community is a little bit different.
Deputy City Clerk Jacobsen commented that Resolution 06-144 establishes City Hall as the location for advisory body meetings. She also commented based on an earlier comment that Homer has a stricter interpretation of the Open Meeting Act than others. She said if they could let her know what communities they are referring to she would be willing to do some research and how they are justifying a more relaxed interpretation of the Open Meetings Act and see how it would make their lives easier. The Commissioners weren’t able to cite a specific source on the record.
COMMENTS OF THE COUNCIL MEMBER
Councilmember Wythe was absent.
COMMENTS OF THE CHAIR
Chair Hogan commented that he appreciates the work of the City Staff. He thought it was a good meeting and he is looking forward to getting the lease policies behind them and discussing how they are going to present their work product.
COMMENTS OF THE COMMISSION MEMBERS
Commissioner Ravin commented that a third of households and three quarters of local businesses import half or more of their goods from outside the City. The best possible Buy Local campaign would begin with an immediate and significant reduction in local and Borough sales tax.
Commissioner Erickson said it is nice to be back and working again. She appreciates staff and all they are doing to help them be able to do the job they have been given to do.
Commissioner Neece echoed Commissioner Erickson’s comments.
ADJOURN
There being no more business to come before the Commission the meeting was adjourned at 8:23 p.m. The next regular meeting is postponed to a Special Meeting on September 17, 2009 at 6:00 p.m. in the City Hall Conference Room. There is a worksession scheduled for September 16, 2009 in the City Hall Conference Room.
MELISSA JACOBSEN, CMC, DEPUTY CITY CLERK
Approved: