Session 08-07, a Regular Meeting of the Economic Development Advisory Commission was called to order by Chair Hogan on October 14, 2008 at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

PRESENT:         COMMISSIONERS ERICKSON, HOGAN, NEECE, RAVIN, SCARPITTA

 

ABSENT:           COMMISSIONER YAKUNIN

 

STAFF:             DEPUTY CITY CLERK JACOBSEN

                        CITY PLANNER ABBOUD

                        HARBORMASTER HAWKINS

 

APPROVAL OF THE AGENDA

 

RAVIN/ERICKSON MOVED TO APPROVE THE AGENDA AS WRITTEN.

 

There was no discussion.

 

VOTE: NON OBJECTION: UNANIMOUS CONSENT.

 

Motion carried.

 

PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA

 

There were no public comments.

 

RECONSIDERATION    

 

There were no items for reconsideration.

 

APPROVAL OF MINUTES

 

A.         Regular meeting minutes of September 9, 2008

 

RAVIN/ERICKSON MOVED TO APPROVE THE MINUTES

 

Commissioner Scarpitta objected to the format noting that it is more like a transcript than minutes. He also said he didn’t feel his comments were accurately noted. Chair Hogan asked if he had a specific amendment and Commissioner Scarpitta said he didn’t.

 

VOTE: YES: NEECE, ERICKSON, RAVIN, HOGAN

            NO: SCARPITTA

 

Motion carried.

 

VISITORS

 

There were no visitors.

 

STAFF REPORT & COUNCIL REPORT

 

There was no staff or Council report.

 

PUBLIC HEARING        

 

There were no items for public hearing.

 

PENDING BUSINESS (suggested time limits in parentheses)

           

A.         Lease Policies

 

RAVIN/ERICKSON MOVED TO DISCUSS.

 

There was no discussion.

 

VOTE: NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

Point was raised that there are inconsistencies in some of the business incomes compared to the actual lease amounts as noted in the chart on page 164. The lease rates are too low.

 

Commissioner Erickson gave a Lease Committee update. She asked the Commissioners to review their copies of the lease policies and bring back written comment to establish what areas they feel needs to be addressed by the Lease Committee. There was brief discussion regarding the roles of the Lease Committee and the Economic Development Commission in reference to the Lease Policy.

 

Further discussion included:

 

HCC 18.08.160 a. The City Council shall adopt by resolution a Property Management Policy and Procedures Manual. Leasing and use permits of City land and facilities shall conform to the manual except to the extent it shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code and later ordinances shall prevail over the provisions of the manual.

 

City Law takes precedence over the policy manual. The City Code invalidates the manual in the event of a conflict. It was suggested that if the Code is revised, the Lease Policy should take precedence to avoid any surprises that are in code. Point was raised that Ordinances and Code are law, resolutions are policy. Either the Code or the policy needs to be revised in the event of a conflict.

 

HCC 18.08.030 b. Except as provided in §18.08.175, the City Council may approve a lease of city land for less than fair rental value only if the motion approving the lease contains a finding that the lease is for a compelling public purpose or use, and a statement of facts upon which the finding is based.

 

There was discussion that a commercial or for profit business should pay fair market lease value and a charter or bar isn’t necessarily for public benefit. Point was raised that a lot of leases are above fair market value based on commercial appraisal rates. An issue is that the same appraiser is doing all the appraisals. It is important to move toward professional appraisal standards that can be fairly applied. It was noted property taxes and assessments are paid by the lessee. Consideration should be given to alternate ways of evaluating the lease rates.

 

The Commissioners agreed to keep lease policies on the agenda until they have a full set of recommendations to forward to the Lease Committee.

 

B.         Review of Planning Commission Issues: Draft Comprehensive Plan Chapter 8 Economic Vitality       

 

DEAN/ERICKSON MOVED TO DISCUSS.

 

There was no discussion.

 

VOTE: NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

Commissioner Erickson suggested a goal 7 “To strengthen small business and other area. Actively pursue year round business in low impact/research business, support for fishing, oil, technology, environmental research and development.”

 

RAVIN/ERICKSON MOVED TO INCORPORATE GOAL 7 INTO THE DOCUMENT. 

 

There was brief discussion that the plan currently implies that tourism is most important. Goal 2 references year round business, but it is important to expand the views of economic vitality. Question was raised to the Commission’s role in making recommendations.

 

City Planner Abboud explained the process of developing the document and that after review several people thought it was poorly written and hard to follow. He explained that staff is going through the manual to tighten it up without removing any of the goals and objectives, and ensuring there are clear action statements. The Planning Commission is reviewing it as well. He suggested the EDC could make recommendations to pass on to the Planning Commission for their consideration when they review Chapter 8.

 

There was further discussion about the process of working through the Comprehensive Plan.

 

VOTE: NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

Other comments included:

 

Page 86 Objective A Goal 5 the area become leased City land and let the private sector develop the Town Center. Now that the City’s budget is getting tighter it may be a way to let the private sector build and lease back to the City.

Referring to Homer residents as permanent visitors is offensive.

Write in that the private sector is encouraged to develop City lands and leases, like the town square, public restrooms, and so forth.

Building an Alaska Maritime museum in the town center to include a convention center and restaurant would be beneficial to the City and to the State.

 

SCARPITTA/RAVIN MOVED TO MOVE THIS TO THEIR NEXT WORKSESSION.

 

Due to scheduling conflicts the Commission agreed to move the worksession to October 29th.

 

VOTE: NON OBJECTION UNANIMOUS CONSENT

 

Motion carried.

 

NEW BUSINESS

 

A.         Homer Port & Harbor Revenues - Preparation for October 28 Worksession

 

RAVIN/ERICKSON MOVED TO DISCUSS.

 

There was no discussion.

 

VOTE: NON OBJECTION: UNANIMOUS CONSENT

 

Motion carried.

 

Port and Harbor Director Hawkins spoke briefly regarding the East Harbor Expansion. He explained Corps of Engineers projects take an average of 17 years to complete. He commented that their revenues have been increasing on all levels. The two sulfur shipments coming through Homer this summer helped revenue and they anticipate another shipment if the prices are good. Businesses grow slowly but we now have two transport companies using the docks year round. When the Port of Anchorage closed last year there were three barge and tugs at the dock at one time. Business is getting better at the Deep Water Dock. Port and Harbor Director Hawkins said Homer’s port is marketed in Trade Journals, but the best way he knows of to market is to run in those circles, so he participates on the Marine Safety Committees.  The best times to meet industry are the meetings after the meetings and make sure they understand that Homer is open for business. Pebble mine has the Port in its sights and we will likely see some spin off, but there is no action right now. The contracts have been staging out of the Harbor for the last couple years.

 

Port and Harbor Director Hawkins noted that one thing the Port needs is a security gate. They are trying to get grant money to acquire it. The cost of the gate is estimated at about $30,000. Council would not approve the funding to come from Harbor reserves.  A security gate is an unfunded mandate from Home Land Security. To work on the terminal you have to have a Terminal Workers Identification Credential (TWICs) card. It applies to vessels that carry passengers for hire, a vessel that has a foreign flag, tank vessels. When they are at the dock it makes the facility a CFR104 facility. When it steps up to that level, then there has to be 100% screening of passengers, personnel, and cargo, hence the need for the gate. Currently the Port is using portable gates, which have been working but someone has to be on guard for 24 hours and the onus goes to the vessel because the City doesn’t have the staff. A permanent gate is needed as it could be locked and watched from the vessel’s wheelhouse.

 

Mr. Hawkins said the dock fees are competitive, and will remain competitive after a 10% increase in 2009. He noted after discussion that having the security gate wouldn’t necessarily increase business, but it would help the business we have currently.

 

The Commission agreed to take this off their worksession agenda for the 29th and focus discussion on the Comprehensive Plan.

 

B.         Should EDC Sponsor a Public Forum as an opportunity to hear from Business Owners

 

Concern was raised that the group isn’t established enough to hold a public forum, but they are interested in soliciting public input on the frustrations of working through City Hall to get business going. Comment was made that people get frustrated dealing with City Hall and some leave. There needs to be a way to hear about the problems and get them fixed.

 

Discussion ensued about preparing a questionnaire and having it available at locations throughout the City. Commissioner Erickson agreed to make up a draft for the Commission to review.

 

C.         “Homer: Open for Business” - What can the City of Homer do to help Homer’s Image

 

The Commission discussed the need to get the City Council on board with concept that the City is open for business and the need for an advocate at City Hall to help people work through the process.

 

INFORMATIONAL MATERIALS

 

Newly adopted City code re Conflicts of Interest, Partiality, and Code of Ethics       

 

There was discussion that this newly adopted code is restrictive to Boards and Commission. Including spouse’s financial information is over the line and these are reasons why it is difficult to get people to join. The ordinance is a stringent document for what advisory bodies are doing and it precludes a great deal of business.

 

B.      Newly adopted EDC Strategic Plan

                                                            

C.      Land Allocation Plan

 

Commissioner Erickson, Chair of the Lease Committee, reviewed the status of the current status on the City owned properties.

 

Point was raised that there is a large pool of assets that needs to be performing to be better used in the public sector.  City Council holds a joint worksession with the advisory bodies at the beginning of the year to review the Land Allocation plan.

 

D.     Chamber of Commerce relocation packet

 

It was noted that the numbers in the relocation packet are outdated and need to be revised.

 

E.       “Regional Economic Development Analysis of Harbor Navigation Improvements in Homer, Alaska” (study by Northern Economics, Inc.)

 

There was brief discussion.

 

F.       Public meeting announcement: Homer Harbor Expansion Study                 

 

There was brief discussion.

 

G.      Items from September 22 and October 13 City Council meeting packet: Manager’s Reports; Resolution 08-101 re Agricultural Free Enterprise Zone, Budget

 

COMMENTS OF THE AUDIENCE

 

There were no audience comments.

 

COMMENTS OF THE CITY STAFF

 

Deputy City Clerk Jacobsen noted that next meeting is November 12 due to the holiday on November 11.

 

COMMENTS OF THE COUNCIL MEMBER

 

There were no Council member comments.

 

COMMENTS OF THE CHAIR

 

Chair Hogan apologized that they didn’t get anymore done. He enjoys working with the Commission.

 

COMMENTS OF THE COMMISSION MEMBERS

 

Commissioner Scarpitta said he thinks there is development and a foundation forming with the Commission. Pretty soon they will be nailing stuff and getting stuff out. He loves everyone here because their hearts are in the right place. He is concerned about some of the issues. He would like to look at fundraising for the City on their next agenda.

 

Commissioner Ravin commented that Representative Seaton is working with Enstar and Armstrong to get over the minimum 2000 customer hurdle in an effort to bring in natural gas. He suggested Representative Seaton be invited to talk to the Commission about natural gas.

 

Commissioner Neece suggested that there is another shoe to fall yet in the economic situation that is going on. The impacts of it haven’t got here yet, but they will. We need to start thinking out of the box on some of these things and considering some other options. The economic situation of this planet and this country is a serious thing to be thinking about. We need to be thinking about it context of our conversation toward the Council and keep it as a perspective.

 

Commissioner Erickson said she talked to the High School Principal about Vo-tech and invited her to attend a meeting. The kids at school are excited about the upcoming election and starting to get involved in the political process.

 

ADJOURN
 
There being no further business to come before the Commission the meeting was adjourned at 8:32 p.m. The next Regular Meeting is scheduled for November 12, 2008 at 6:00 p.m. in the City Hall Cowles Council Chambers. There is a Worksession scheduled for October 29, 2008 at 6:00 p.m. in the City Hall Cowles Council Chambers.

 

 

                                                                       

MELISSA JACOBSEN, CMC, DEPUTY CITY CLERK

 

Approved: