Municipal Economic Development Options - Committee Meeting August 30

The Haines Borough Government Affairs & Services Committee is scheduled to meet late this afternoon (August 30, about 5:45) to discuss economic development. The meeting is in the Assembly Chambers and follows a 5:30 Special Meeting to discuss a change order to a street improvement contract.

I have learned that there are generally three models municipalities adopt to create a municipally sponsored economic development program: 1) they form a municipal economic development committee, 2) they hire municipal economic development staff, or 3) they sponsor an extra-governmental economic development organization. Each model has strengths and weaknesses. These are described on the website for Kennebunk, Maine. Kennebunk choose to launch an Economic Development Committee.

Several municipalities in Alaska also have economic development committees. Examples include the Palmer Board of Economic Development, the City of Homer Economic Development Advisory Commission, and the City of Wrangell Economic Development Committee.

Two nearby examples of economic development organizations partially funded by the municipalities are the Skagway Development Corporation and the Juneau Economic Development Council.

I looked for examples of the third option - the hire of an economic development professional - and came up dry. I scanned the "departments" of a number of municipalities - Juneau, City and Borough of Sitka, City of Ketchikan, Ketchikan Gateway Borough, City of Anchorage - and none listed a "Department of Economic Development." The City of Anchorage has a close cousin - a Department of Community Development.

The Haines Borough Code (2.54) requires "the formation of a department of economic development of economic development, headed by an economic development director, appointed by the manager and provided with a job description and responsibilities." Given this cursory level of research, it seems that our codified approach is uncommon.

Haines Port Development

One of the purposes for the $120,000 legislative appropriation to the Haines Borough for port development is to create a plan that will help us make sound port development investment decisions on behalf of the Borough, the region, and the state.

Skagway has completed a similar effort and is now implementing their port development plan, called The Gateway Project. May 10 Skagway voters passed a $5 million bond for the port project. An additional $10 million is being pumped in from the State; and AIDEA is set to invest $65 million in the ship loader and terminal structure.

The September 2008 Skagway Port Development Plan report prepared for Skagway by KPMG, CH2M Hill and Sandwell found that Skagway was closer to Carmacks, Ross River, and Watson Lake than Stewart. This was dubbed "The Skagway Advantage."

We need to focus on articulating "The Haines Advantage." Haines Port Development needs to move forward vigorously but mindfully. Let's develop the region. We won't achieve regional strength by trying to play catch up with Skagway. Let's complement the "Skagway Advantage" and market the "Northern Lynn Canal Advantage." Let's signal sincere collaboration with Skagway and add a Skagwegian to the Haines Port Development Steering Committee. That would be a move guaranteed to win points on any AIDEA application! The Haines Advantage might be to develop as a regional port able to simultaneously serve the industrial and visitor sectors through water, road, air, and possibly rail.

Comments and Conversation

Yesterday's post on Assembly procedures sparked response: agreements, disagreements, counter-proposals. Excellent. My intention is to signal that I will put Assembly procedures on the Assembly's agenda for debate. Debate should result in confirmation or modification of the present practices. The debate will be informed by all the suggestions I have received - which brings me to the purpose of this post.

People are having trouble posting comments. When you click on "comment," you are prompted to provide an identity. The easiest thing to do is to set up a "Google account." You may already have one. It's free.

Thanks for thinking these issues through with me.

Putting the Public Back into the Process

If elected Mayor, I will propose five changes to Assembly procedures intended to make it easier and more comfortable for the public to participate in government.

Some Assembly procedures I will recommend for review are codified (Order of Business: HBC 2.10.020; Agenda preparation: HBC 2.10.030), and some are not: 3-minute speaking rule, prior sign-ups for testifying at Public Hearings, single issue Assembly committee meetings.

I would like the Assembly to consider changing the order of business of the agenda so that public comment precedes approval of the agenda. This change would enable Assembly members to amend the agenda to include discussion of good ideas or issues presented by the public. I believe that the public needs more indication from its Assembly that it has been heard. Putting an idea or point on the night's agenda brought up in the evening's initial public comment period would send just such a signal.

Preparation of the agenda, by my reading of the code (HBC 2.10.030) is a clerical, not a political, task. The code simply gives a delivery date for all "reports, communications, ordinances, resolutions, contract documents, or other matters..." after which "the mayor, with the assistance of the clerk, "arrange(s) a list of such matters according to the order of business.... ." Nothing should prevent an issue or topic from finding a place on the agenda except a missed deadline. In fact, in doing research on how other municipalities proceed to appoint vacancies, I stumbled onto the fact that the City of Ketchikan agenda is exclusively prepared by the Clerk and the Manager. The Assembly meeting is first and foremost a business meeting, and business comes to the Borough through the Clerk's office, not the Mayor's office. However, in times past, here in Haines, it has been the perception, if not the practice, that the Mayor is "in charge" of the agenda. That is simply not true. The Mayor is in charge of the conduct of the meeting, not the content.

I am uncomfortable with a strict 3-minute limit for public comments. This is a rule the Assembly has adopted. It is not in code. I would like to retire this limit, except in situations where there are clearly more eager speakers than time in the evening. Public speaking is nerve wracking for most people. To have your thought abruptly terminated by "time," ads humiliation to the list of barriers that keep people from sharing their thoughts in a community setting. Instead, I leave it up to the mayor to politely interrupt the speaker and ask for a wrap up. The evening needs to proceed with a profound sense of respect for the thoughts and views of our neighbors. It is the mayor's job to ensure that that is the case.

Signing up to testify before the public hearing seems innocuous. When testimony is given, the speaker announces his or her name anyway, so why sign up in advance? I want to review this procedure because I fear it is a possible barrier to thorough public participation. What if I am sitting in the audience and the information I hear from a neighbor helps me solidify my views and suddenly I do have something to say, but I didn't sign up? Adherence to advance sign up procedures can actually keep the community for learning from and knowing one another. I will recommend that we eliminate signing up in advance to testify at a public hearing.

Assembly meetings are business meetings. They are where decisions are debated and made; not so much where decisions are formed. Decisions can be more collaboratively and effectively formed in committee meetings open to the public where there can be extended give and take between members of the Assembly and the public and between members of the Assembly themselves. I will expect that a topic taken up by a committee of the Assembly return to the Assembly with a recommendation for action from that committee.

Let's Go...Alaska Rural Energy Conference 2011, Juneau

I hope there can be a number of Haines elected representatives and residents in attendance at the Alaska Rural Energy Conference being held this year in Juneau, September 26-29 (Tuesday-Thursday). We can work all day Monday, jump on the 10:30 PM ferry, stumble off at 3 AM, and show up for breakfast at the conference at 7 AM - bright eyed? Well, maybe not. Maybe we can fly, but as many of us who can go, probably should. People from Haines have gone in the past trekking north to Galena, Fairbanks, Anchorage. This is the first time the Conference is taking place in Southeast Alaska.

"Early bird" registration for all 3 days ends August 27. A full 3-day registration is $250 under the "early bird" provision; a student - university or high school - can register for 3-days for $150. A one-day pass (no "early bird" stipulation) is $150. If I could go for only one day, I'd choose Thursday. I'd want to hear more about the Southeast Integrated Resources Plan; and I'd like to hear what Jack Hebert (Cold Climate Research) has to say about "Energy for Community Health." Following lunch, there are regional break out discussions and presentations of those discussions.

Ideally, a team of 4 could cover all the bases during the conference, taking in the 4 different technical sessions each day before and after lunch. If I were mayor, I'd be tempted to to ask the Assembly to finance 4 early bird registrations for a "Haines Alaska Rural Energy Conference Team," and to schedule a time for the team to present highlights upon their return. It would be $1000 well spent and reflections well worth contemplating.

$161,500 Weatherization Dollars Available for 19 Haines Homes

Alaska Community Development Corporation has funds to do weatherization work on 19 homes in Haines - right now! A maximum of $8500 is set aside for each qualified applicant. According to Laurie Tice (ltice@alasakacdc.org; 1-800-478-8080), if you start the application process today, you can expect an energy rater at your home sometime this fall or winter and the work to be completed by March 2012. Alaska CDC contracts with local contractors to do the work. All you have to do is stand back.

I went through the process two years ago. The program conditioned my crawl space, blew in insulation, installed a heat-recovery ventilation system, and air sealed the house. I went from 4-cords a winter to 2-cords. Thanks to the ventilation system, heat is now uniformly distributed throughout my house so I no longer have to keep extra clothes to put on for those cold rooms or corners.

This is an income driven program, based on gross income (as opposed to adjusted gross). A single person will qualify if gross annual income is $49,100.00 or less.

The application can be daunting but the organization is there to help. Start with a phone call so that you can feel connected to a person in the group. If you don't want to download the application, Alaska CDC will send you a hard copy with a stamped, return addressed envelop. This might be important because your application will be thick by the time you are done. You need to include a copy of your income tax return and the deed for your property.

Alaska CDC will weatherize homes regardless of location relative to the road system! So don't exclude yourself based on location. When it was time to rate my house, we were snowed in. The quarter mile to my home was just a sled track. No problem. The CDC rater piled her gear in a sled and we hiked in. I was impressed!

Recall...and Then What?

A successful recall creates a vacancy (or vacancies) on the Assembly and then we are back to square one: appointment.

Charter and Code both indicate a bias for appointment. The Charter says that the Assembly "...shall attempt to appoint a qualified person within 30 days" (Article II, Section 2.04) and the Code says that the Assembly "...shall, within 30 days, appoint a qualified person..."(2.10.250(A)).

I do not like the idea of 4 or 5 people appointing a person or persons to serve as representative of the community at large. For me, that puts too big a gap between representative and represented, elected and electors. I believe that borough wide elections are the best method for establishing a representative government. If elected Mayor of an Assembly faced with vacancies, I will urge the Assembly to appoint a qualified candidate who garnered at least 40% of the vote in the October 4 election. Unlike the previous appointment debacle, we will remain in session until an appointment is achieved. If necessary, and appropriate, I will use the mayor's right to veto.

However, that being said, I will also work with the Assembly to introduce changes to the Code and if necessary to the Charter, that will give the Haines Borough Assembly the option of calling for a special election to fill a vacancy. I think it is especially appropriate to call for a special election when a seat will be vacated for more than 6 months prior to a regularly scheduled election. On the other hand, when a seat is vacated for 3 months or less, it makes good sense to go with an appointment. The Assembly should have the option. When a vacancy occurs, I believe that the first order of business should be able to be a debatable motion indicating whether the vacancy is to be filled by appointment or by election. Code and perhaps Charter changes are needed to provide that option.

Dedication of One Percent Sales Tax for Tourism and Economic Development

The Haines Borough sales tax includes, by statute (HBC 3.80.22(a) ), dedications for 4 specific purposes. Expenditures for one those purposes, economic development and tourism (allocated 1% from the tax collected areawide), has been questioned by Borough resident, Sally McGuire. She requested that the Assembly place a question on the October 4 ballot, that, if passed, would remove the dedication and reallocate the 1% for areawide general municipal purposes. She did not advocate for removal of the tax amount altogether; nor did she argue that dedication of taxes in general is misguided fiscal policy.

On Tuesday, August 9, the Assembly considered and then rejected ordinance 11-07-271 (by a 3-2 votes) to place the question on the ballot. Instead, they sent the issue to the Government Affairs and Services Committee. That committee will meet Tuesday, August 16, 5:30 PM in the Assembly Chambers.

I believe that the Assembly made the correct decision. During the public hearing for the ordinance I testified that I believed that the community was frustrated, not because a tax was dedicated per se, but because there was no apparent program for economic development and because there is no public cost/benefit analysis for tourism expenditures. Borough Code 2.54 stipulates that there will be a Department of Economic Development and that it will have a director appointed by the manager and provided with a job description and responsibilities. There is an Economic Development Fund ($165,469 for FY12) and it does include $26,000 for a part-time employee who has recently resigned. One of the expenses allocated to this fund is the update of the Comprehensive Plan, estimated at $100,000.00. The Tourism FY12 budget is $352,085.

My position is that the problem lies in the utilization of the tax. Removing the dedication and kicking the problem down the road to the annual budget process delays and possibly obscures the problem. The problem is that the Haines Borough does not have a vigorous program of economic development, even though a department is stipulated in code. Nor does it have a clear handle on the benefit of expenditures for tourism development. And just as we should measure the benefit of the cost for tourism promotion, so should we measure the benefit of the cost for an economic development program. Valid measurements should be built into each program and reported at least quarterly to the Assembly. The rule of thumb, "You can't manage what you don't measure," applies. I hope you will have time to discuss this topic with the Government Affairs and Services Committee, Tuesday, August 16, 5:30 PM, Assembly Chambers.

People are Asking...Who Are You Now?

Everyone is more than what they "do," but what people do and have done is a good start to getting to know some one. Like many people who have lived a long while in Haines, I have done a lot of different things. Currently I am the owner of two owner/operated businesses: Outlier Productions and Outlier Farm. Outlier Productions capitalizes on my education and training while Outlier Farm is an attempt to turn my long-standing passion for growing flowers into a seasonal vocation.

Through Outlier Productions I provide services to school districts, to municipalities, and to private individuals. I am currently under contract to the Haines Borough School District to provide special education services. I have provided similar services for the Chatham School district, both in Klukwan and in Gustavus. I also have a contract with the Haines Borough to file the federal quarterly reports for the $50,000 Energy Efficiency and Conservation Block Grant given to analyze and retrofit the Public Safety Building.

I was previously under contract to the Haines Borough as the Energy Sustainability Coordinator (2008-2010) and before that to write the final report for the Haines Peak Oil Task Force, under direction of the Task Force. My work as a consultant, be it for the municipality or for the school district, is heavily data based and requires staying up to date with the appropriate regulations and advances in knowledge. I continue to investigate local and state energy issues. I was recently invited to address the Southeast Alaska Integrated Resource Plan Advisory Work group on issues encountered locally while serving as the Haines Borough Energy Sustainability Coordinator.

I launched Outlier Farm last season. My business plan involves securing subscriptions for bouquets which I deliver on a regular schedule. I used personal savings to capitalize Outlier Farm. I know that transportation costs drive price. The USDA considers growers in Alaska, along with Guam and Hawaii, to be geographically challenged. That is true, but I wouldn't for a minute trade my farm in Haines for a farm in California!

APOC Financial Disclosure Statement More of a Hindrance than a Help

The new APOC Financial Disclosure regulations came into law after I retired from the Assembly. So it wasn't until I filed for the 2011 Mayoral race that I really tackled these regulations.

The 12-page form is complex. If you haven't looked at it, you can go to APOC and download your very own copy. It requires more than a working knowledge of your finances to complete. And it requires disclosures that in some cases are barriers to potential Haines candidates. But not for the reasons you might think. Several people have told me that they would have filed if not not the requirement, in some situations, to disclose specific clients and the amounts they owed. They felt that to disclose these debts (anything over $1000) was a breach of trust between proprietor and consumer. And by the way, it's not just a question of your personal finances. You must report on behalf of your spouse and your dependent children.

I am ashamed to say that I voted NO on the local opt-out question that came before us in 2009. I probably voted NO in 2008, too. I was uneducated then. I'm not now. And I'm not surprised that I knew little about this form - it takes a more than a passing interest to download and examine 12 pages of small print - especially if you are not going to fill it out anyway.

Some people have said that they voted NO because the Borough did not offer an alternative other than its existing ethics (Borough Charter Chapter 2.06; Borough Code Title 2.06) and conflict of interest statutes:

Haines Borough Code Section 18.01 Conflict of Interest

An elected borough officer may not participate in any official action in which he or a member of his immediate family has a substantial financial interest unless after disclosure of the interest his participation is approved by a majority of the body.

In essence, we have experimented since the state regulations were enacted. I don't think the regulations applied locally have revealed any "snakes in the grass." On the contrary, the regulations have discouraged people from running for office. I think this is unacceptable.

On Friday, July 29, I asked the Borough Clerk if the question of opting out of the APOC regulations could, once again, go on the ballot. It could, but my request was too late. The ordinance would have had to have been introduced July 26 to make it through the process for inclusion on the October 4 ballot.

Here is my suggestion so as not to miss the next boat - or election: request the Assembly to ask the Government Affairs Committee to hold hearings on the APOC regulations and to hammer out a local alternative if that is what is necessary to get YES-OPT OUT vote passed. I personally think that we have sufficient protection in our Code and Charter as it is now. I also recommend that we go through the process of adopting an ordinance to be ratified by the voters in time for the next regular or special election - which ever comes first.