Session 09-07, a Regular Meeting of the Economic Development Advisory Commission was called to order at 6:00 p.m. by Chair Hogan on September 17, 2009 at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.
PRESENT: COMMISSIONER ERICKSON, FAULKNER (in at 7:15), HOGAN, NEECE, RAVIN
COUNCILMEMBER: WYTHE (Absent)
STAFF: SPECIAL PROJECTS COORDINATOR HOLEN
VISTA REPRESENTATIVE BEVIS
PLANNING TECHNICIAN ENGEBRETSEN
DEPUTY CITY CLERK JACOBSEN
APPROVAL OF THE AGENDA
The 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
There were no visitors scheduled.
STAFF AND COUNCIL REPORT
Special Projects Coordinator Holen had no report. Planning Technician Engebretsen said she was there to get input regarding the Comprehensive Plan. VISTA Representative Bevis commented that she hopes the group is planning to attend the public workshop on the 29th.
PUBLIC HEARING
There were no items for public hearing.
PENDING BUSINESS
A. Comprehensive Plan
RAVIN/ERICKSON MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
There was discussion that the concern regarding the chapter 8 was that the political statements need to be removed. Point was raised that the Commission voted earlier to remove references town square because the voters voted that down. Planning Technician Engebretsen pointed out that it isn’t only in chapter 8. The plan references itself through out and it would be a pretty big change to chapter 7 to take all of that out. Chair Hogan expressed that the Comp Plan is a road map for where the City is going and it should be as broad and non specific as possible. The community voted no and having it in the Comprehensive Plan goes against what the community’s wishes are.
There was discussion that there are two different issues regarding town square and city hall. It needs to go back to the community as a vote to find out what it is the people want. That is part of the debate. Staff pointed out that another set of issues revolves around road and trails development, the City spearheading that development or what is the City’s role in being a partner with that. Ms. Bevis added that in her review of surveys and discussion with people she agrees that there was confusion regarding the vote and that it was a first run through for the public. In the surveys and in interviews she finds that people are interested in a more cohesive downtown, and literature discusses the importance of a downtown but there really isn’t one here. There are all kinds of issues there and she doesn’t think that the one vote said clearly yes, or no.
RAVIN/HOGAN MOVED THAT IN RESPECT FOR THE WISHES OF THE VOTERS OF THE CITY OF HOMER, THE EDC ASKS THE CITY COUNCIL TO REMOVE REFERENCES TO TOWN SQUARE FROM THE COMPREHENSIVE PLAN, UNLESS COUNCIL BRINGS ANOTHER VOTE TO THE PEOPLE SEPARATING TOWN SQUARE AND CITY HALL ON THE QUESTION.
There was discussion that with fairness to the community and the work that has been done it needs to be clearer. Point was raised that part of that vote would have allowed for expansion of the college and there is support for that, but there is cost involved in putting this out to vote again. Town Square should be removed from the plan and let it develop on its own. It was noted that amendments to the comp plan have to follow the appropriate process and it can’t be amended by a vote. There was discussion about the purpose of the Comprehensive Plan.
VOTE: YES: HOGAN, NEECE, RAVIN, ERICKSON
Motion carried.
Discussion ensued regarding the spit comprehensive plan and the meetings that have been held. Commissioner Erickson provided an outline for the Spit Comp Plan for further discussion. The Commission agreed that they wanted to have this on their upcoming agendas.
B. Lease Policies
RAVIN/ERICKSON SO MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
The Commission reviewed the amendments that were addressed at their worksession the previous day. Commissioner Erickson provided a written copy of the amendments.
Lease Policy:
Chapter 11.2 H At expiration or termination of a lease the City may negotiate to reimburse lessee for improvements at fair market value, then RFP the lot as a whole business package.
Chapter 11.3 After 50% of the term of lease, and the city finds the business viable, productive and has met or exceeded performance standards under Chapter 11.2 f, 1-7; the lessee may be given the option to purchase the land at fair market value.
Chapter 18.1 It is the policy of the City of Homer to provide for a smooth transition and restoration of City property at the time a lease expires. Land leased up to 15 years if viable and meets performance standards as described in Chapter 11.3 may be purchased at fair market, if the city deems it in the city’s best interest to do so.
Chapter 18.2.E Delete. There is no previous baseline to measure against.
Chapter 18.2.A Improvements constructed by the lessee or sub lessee shall be left in place or removed (the rest as written).
Boiler Plate Lease:
15.01 Keep only the first line. Delete (If the removal of Tenants…)
16.02 Add: Indemnification of Landlord is a negotiable item on a per lot basis.
16.03 Indemnification of Tenant: Landlord indemnifies tenant and hold tenant harmless from undisclosed defects/hazards/contaminations of said lot.
16.03 becomes 16.04 Hazardous material defined.
Chair Hogan called for a motion to adopt the revisions that were made in the worksession as a body.
RAVIN/NEECE SO MOVED.
There was discussion that the additions discussed tonight are included. It was noted they would like to see the changes one more time, and then to the Port & Harbor Commission to review.
VOTE: YES: NEECE, ERICKSON, RAVIN, HOGAN
Motion carried.
C. CEDS Development
RAVIN/ERICKSON MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
VISTA Representative Bevis gave an update on the progress of the planning for the Economic Development Brainstorming Session for the meeting on Tuesday, September 29th.
There was discussion regarding the purpose of the CEDS and the need to have the plan for local economic development funding. It is more of an action oriented plan, where as the Comp Plan is more of a guideline.
Commissioner Faulkner arrived at 7:15 p.m.
NEW BUSINESS
A. EDC Meeting Schedule for 2010 Recommendation to Council
RAVIN/ERICKSON MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
Discussion points included:
· Due to their work load they are more effective if they meet monthly and have the flexibility to have worksessions when needed.
· They recognized that the rational behind the revised meeting schedule is due to the budget and commented that they would cancel meetings if they don’t have any business to deal with.
· They also noted that with the current group it isn’t likely that they will meet in July and August because of work.
· They questioned the necessity of having two staff members in attendance, and if staff is required to attend the worksessions.
· They are interested in exploring options for meeting in private quarters at no cost to the City and adjusting staff schedules to eliminate overtime.
· Suggestion was made of developing an Economic Development Corporation along the same lines of what we are doing now, but quasi-municipal, similar to what Sitka has.
RAVIN/NEECE MOVE TO ASK CITY COUNCIL TO KEEP THEIR MEETING SCHEDULE AS IS WITH MONTHLY MEETINGS AND FLEXIBLITY FOR WORKSESSIONS AND SPECIAL MEETINGS AS NEEDED.
There was brief discussion reiterating points mentioned above.
VOTE: NON OBJECTION: UNANIMOUS CONSENT.
Motion carried.
B. Minute Taking Options and Open Meeting Requirements
Discussion points included:
· Whether it would be more cost effective record the meetings and have a stenographer prepare the record.
· Alaska statutes say that the clerk shall attend meetings of the governing body and its boards and committees as required and keep the journal, and other duties relating to notice and maintaining the record.
· The digital recording from the meeting could be emailed to India and a verbatim transcript could be in everyone’s in box the next morning after the clerk reviewed it. Outsourcing is the way the world works.
· Telephonic participation is encouraged by the open meetings act and should be allowed for Commissions.
RAVIN/FAULKNER MOVED TO ASK CITY COUNCIL TO ALLOW TELEPHONIC PARTICIPATION FOR THE EDC AND OTHER COMMISSIONS.
Chair Hogan asked that the memo to council emphasize that this is in the spirit of the OMA.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
There was discussion about who would be attending the next Council meeting. Commissioner Ravin agreed to go in place of Chair Hogan.
C. Cruise Ships in Homer – Good, Bad, or Neutral
RAVIN/ERICKSON MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
There was discussion regarding the benefits and drawbacks of cruise ships in Homer. It was noted that polls for the City are split on how they feel about the benefits of the ships. Local retailers have said that they don’t see an increase in sales when they are in port. The larger ships have all the amenities on board and the passengers don’t spend much money on shore. They are a kiss of death for a town with our flavor and they don’t promote American jobs.
Commissioner Erickson commented that she is on the cruise ship committee and they are looking at targeting the smaller cruise ships as they will be more beneficial to the City than the larger ones.
It was noted that the Pioneer Dock was built to facilitate cruise ships and the landings need to be done on our terms so the City sees some revenue from it.
D. City Water Rate Changes- Effects on Business
NEECE/RAVIN MOVED TO DISCUSS.
There was no discussion.
VOTE: NON OBJECTION: UNANIMOUS CONSENT
Motion carried.
The Commission discussed the negative effects of the water rates in the City, noting that there are a few operations that are large employers and considering closing their businesses due to the water rates.
Discussion points included:
· The two year review plan Council passed needs to come back to the table. If not we will be driving people out of business.
· It would be good to show a comparable with some businesses between this year and last year. Seeing hard numbers will make a bigger impact.
· Currently the commercial user rate is about $11 per 1000 gallons which is the highest in the country. The next highest is $5.74 per 1000 gallons with no monthly service charge.
· Because of the service charge, even residential users using less than 4000 gallons a month are paying higher rates than any place else in the country.
· There are three meters on the port and harbor system where water is flowing free out into the harbor. Removing that from the equation causes it to flip flop. Basically the harbor users are subsidizing the water system.
· Salt water wash down should be utilized at the harbor.
· There have been a few issues where the City’s portion of the water line underground has rotted, leaving water flowing freely and customers are being charged for the water.
· With issues like water rates, coupled with high fuel and electricity costs, who would want to bring business to Homer.
· The commodity is not the cost, the cost is the labor.
· Issues with the deep shaft that was drilled that basically doubled our sewer rates. That City Management trying to stick to the letter of the law and losing sight of the big picture.
· There are a number of businesses on the spit that pay nothing with no water and sewer hookup and are utilizing the public facilities at no cost.
· The water and sewer should be treated as an enterprise fund and users should be charged enough to cover the costs.
· Council needs to look at the expense side of the rate studies they have been reviewing over the last 18 months.
· The City of Kenai has more users and their costs are much lower. The difference in the water system isn’t the issue, they have fewer personnel. It is a management problem.
The Commissioners agreed to talk to two or three different businesses that are willing to share their water costs from last year to current to get a better picture of what is going on.
INFORMATIONAL MATERIALS
A.
Bradner’s Alaska
Economic Reports
B.
Article by Michael
Haines: “Inherited Assets are Out. Created Assets are In”
C.
Local Newspaper
Stories
D.
Items of Interest
from recent City Council Meeting Packets
E.
EDC Memos to
Mayor and Council (action taken at August 25, 2009 Meeting)
COMMENTS OF THE AUDIENCE
There
were no audience comments.
COMMENTS OF CITY STAFF
Special
Projects Coordinator Holen and VISTA Representative Bevis said they will be
absent from the October meeting.
COMMENTS OF THE COUNCIL MEMBER
Councilmember
Wythe was absent.
COMMENTS OF THE CHAIR
Chair
Hogan said he appreciates their work on the lease policy. He looks forward to
seeing it go somewhere and hopefully having an impact.
COMMENTS OF THE COMMISSION MEMBERS
Commissioner
Erickson thanked staff for their help. She also said that she can no longer
chair the Lease Committee and asked that someone else from the group consider
it.
Commissioner
Neece thanked everyone.
Commissioner
Faulkner apologized for missing meetings.
Commissioner
Ravin suggested hats with a kiss of death logo to sell at trinket shops.
ADJOURN
There
being no more business to come before the Commission the meeting was adjourned
at 8:27 p.m. The next regular meeting is scheduled for October 13, 2009 at 6:00
p.m. in the City Hall Cowles Council Chambers.
MELISSA
JACOBSEN, CMC, DEPUTY CITY CLERK
Approved: