What is the Appropriate Business Model for Government Operations?

Last night the Haines Borough Assembly Government Affairs & Services Committee (chaired by Steve Vick) filled the lobby of the Chilkat Center. Mr. Vick asked "what can government can do to increase the utilization of the building?" Response to that question coalesced around the idea of improved management and marketing. One of the implied goals is to increase revenue associated with the building.

Currently the Chilkat Center is managed by Lynn Canal Broadcasting (KHNS) in lieu of rent. Kay Clemens, KHNS Manager, indicated that the management scheme is not working well these days due to limited KHNS staff, expertise, coupled with a decision to prioritize broadcasting related activity.

If we look at the Chilkat Center as a business, we have to consider revenues (rental income) compared to expenses. Later on in the evening, Chief Financial Officer Jila Stuart emailed actual revenues/expense data from FY09,10,11 and the budgeted revenue/expense for FY12. Expenses have exceeded revenues by $50-60,000 during those periods. The lion's share of the expenses for the Chilkat Center goes to utilities ($40 - 50,000 annually). Annual rentals to a long list of groups (the building seems to be used frequently) range from $24,000 to $34,000. So, in order to run a "break even" operation, the challenge would be to implement strategies that would result in increased revenues and decreased operating expenditures, setting aside, for the moment, the $1.2 million estimate for immediate repair to the roof and its supporting structures provided recently by Jensen, Yorba, Lott.

And here's where the policy decisions come in: What community needs should local government support with infrastructure? What economic model should the Borough adopt for the operation and maintenance of that infrastructure? When, if ever, is a "break even" model appropriate for government operations? When an activity or a facility does not independently generate sufficient revenue to cover expenses the revenue stream is filled by taxes. What services and activities are we, as a community, willing to tax ourselves to support? That's the question.

Can Demolition Include "Recycling" or Is It All Headed Straight to the Land Fill?

At least 30 years ago, my husband (Bob Schwalbach), Norm Blank, Craig McCormick, and Tim June "bought" a DOT barn here in Haines for $11.00.

The Department of Transportation advertised for bids to either demolish or remove an equipment barn in Haines. There were several proposals to demolish the building ranging in the tens of thousands of dollars. And then there was this odd proposal from a group of guys with hammers and crowbars offering to remove the building. The State took them up.

I suppose their financial people weighed the options: spend $10,000 to have the building demolished or earn $11.00 from eager buyers? One idea that I haven't heard considered with respect to the old school is the idea of selling the building as "surplus" to be removed. I wonder if there would be any response to such an option?

The beams holding up my house are from that old DOT barn. Our original windows were from the barn. Some of my out buildings are sided from stock from that barn.

Before we consign the contents of the old school to the landfill, I hope we can see if there are people in the community who could use the items. Those lockers look in pretty good shape to me. Thanks to Joe Poor for the photo.

Connelly Lake: A Reasonable Position

The Haines Borough has a very clear need for additional hydropower. Given our present sources, the utility (APT) must supplement with diesel various times during the year. This situation is exacerbated as more and more people attempt to mitigate the high cost of heating fuel with electric heat or with non-fossil fuel systems that still require substantial electricity to run pumps and fans.

Additionally, the Haines Borough as well as the Borough of Skagway, with whom we are yoked because we share the same utility, are both developing substantial deep-water port operations due to extensive mineral exploration in the Yukon and interior Alaska.

Finally, a substantial increase in hydropower is required to mitigate air pollution from the cruise ships that frequent our communities and provide needed economic activity. Once sufficient power sources are developed, cruise ships can be required to plug in, thus reducing emissions.

The development of additional hydropower is a step that moves us toward self-reliance in that we will be less dependent on foreign resources; but one of the additional benefits of the Connelly Lake project is that it also will remove our reliance on an undersea cable that is now the community of Haines’ link to the bulk of its hydropower. Although undersea cables are not uncommon, our uncommon distance from support ships able to supply and service the cable is a weak link. Connelly Lake, located in the Haines Borough, can transmit power through an easily accessible buried cable to our community. Thus, even if the link to Goat Lake in the Skagway Borough is ever lost, Haines will still have access to hydropower. The development of a hydropower source accessible by land will increase the reliability of the power supply – a critical dimension of any infrastructure improvement.

The case for additional hydropower supplies is easily made. And the potential of Connelly Lake is clear. Connelly Lake has been “on the books” as a hydropower source for decades. The case in favor of a land-based transmission line over an undersea cable in such a remote location is also easily understood. But Connelly Lake is located at the head of a watershed that has many assets: fish, wildlife, recreation, wilderness, cultural. It is important to discover if the development of Connelly Lake as a hydropower site can complement or even enhance these assets. I, for one, look forward to the FERC process for answers to the question of the impact of the development on the watershed. The one concern that I have with the permitting process is that studies be conducted by organizations that are as free as possible from ties to interest groups – either pro or con. The outcome is going to depend, I believe, on the reliability of findings. It is important to avoid contaminating data through association with groups which have signaled fore-gone conclusions. I sincerely support going forward with the FERC process.

Though I do not yet speak on behalf of the Haines Borough, I would like to mention that the Haines Borough Assembly did adopt a resolution (09-01-149) January 27, 2009, resolving that the Haines Borough Assembly “supports the investigation, study, conceptual design, and initial permitting of any potential projects by AP&T or others which can be shown to provide reliable, cost effective, renewable energy in a manner which does not adversely impact local rate payers, the local economy, the watershed ecosystems, or the traditional uses of the area.” I believe that Resolution 09-01-149 articulates a reasonable position and supports proceeding with the FERC permitting process for Connelly Lake as well as Shubee Lake.

How Far Can Energy Efficiency Take Us?

Isn't that the question we ask ourselves when debating energy conservation and efficiency policies? I am going to learn a little more about the question and hopefully a lot more about answers at tonight's webinar sponsored by the Renewable Alaska Energy Project (REAP). Click here to sign up. The program is from 6-8 PM this evening. Join me, and many other Alaskans, on line as we explore the role energy efficiency plays in moving us toward more reliance on renewable sources of power for our state.

The Canvass

The final thirty-one additional votes were counted by the Haines Borough Assembly October 11 in the election canvass. The tally is Hill: 554; Scott: 601.

The election will be certified by the Assembly at its regular meeting October 25. Terms start October 31. And on that day all new officials will be sworn in, one at at time, in the Borough Clerk's office.

There are no formal procedures or policies that guide the transition from one Mayor to another, but I hope to work with Mayor Hill in the interim and beyond to make sure that continuity characterizes this change. The list of "things to do" is long and I am ready to roll up my sleeves and get to work - but officially, work starts October 31.

The Borough Clerk assured us that she would be in costume for the swearing in. The only remaining question is, how should your new officials be costumed?

A public swearing in is planned for the first Assembly meeting, November 15.

Mayoral Election Results

The Haines Borough 2011 mayoral contest may turn out to be one of those elections we can use to illustrate the power of one vote. At this time, it is too close to call. By the evening of October 4, the difference between candidates for mayor was slim: Scott: 577; Hill: 547, with a maximum of 40 additional votes yet to be counted.

The Assembly will "canvass" the election at 5:45 Tuesday, October 11. At that time, uncounted ballots will be examined, and if accepted, counted. These ballots include 15 Questioned Ballots, 1 Personal Representative Ballot, 16 Absentee-by-Fax Ballots, and any Absentee-by-Mail Ballots that come in by October 11. The Clerk can say with certainty that there are a maximum of 40 additional ballots because every single ballot given at the polls or mailed or faxed is carefully tracked. The Borough Election Official is able to verify that the number of ballots used (counted) or destroyed equals the number of ballots in circulation.

Many people voted early this year. Early voting is a kind of "absentee" voting since the voter is not voting in his or her precinct. But "early" votes are counted with the regular votes after the polls close on the evening of the election.

Why might a ballot be questioned? Remember how you signed the voter register when you went in? What if your name isn't on the register? The election judges will still let you vote, but you must vote a questioned ballot. The question is: are you or are you not a properly registered voter? That's the "question" that the Borough Election Official (also our Borough Clerk) will help the Assembly decide on October 11. If you are a properly registered voter (must have registered at least 30 days before the election), then your ballot will be opened and counted. One of the most common reasons for questioned ballots in Haines is voters voting out of their precincts. If you live at Mosquito Lake but it was more convenient for you to vote in town (or visa versa), your ballot would have been "questioned" because your name would not have been on the precinct voting list - but in the end, your ballot will be counted - provided of course, that you are properly registered!

I am always impressed by the precision of the Borough Clerk and her election judges. Procedures are followed to a "t." Every safeguard is practiced. Conducting an election is a weighty responsibility. This year it was once again carried on the able shoulders of the Borough Clerk and the chairs, judges, and clerks at our two Borough precincts. Hats off to Julie Cozzi and her 2011 team: Jeannette Heinrich, Leslee Downer, Barbara Maynard, Donna Catotti, Nancy Wenner, Frankie Perry, Marlys Johnson, John Hunt, and Holly Thomas. Thanks so much.

The Right to Think Together

Friday evening about 40 of us got together in the Chilkat Center to talk about our hopes and our concerns for the future of Haines. The opening atmosphere was deliberately light-hearted with a clever puppet show by Tresham Gregg called "Running for Office," keyboard by Dave Nanney, and drums and the occasional guitar rift by Bear. After we all loosened up, I took the mic and fielded questions for an hour. The evening was classical Haines, in that compassion and inclusion were two recurring themes.

I agree with Thomas Jefferson who said that

"...an association of men who will not quarrel with one another is a thing which never yet existed, from the greatest confederacy of nations down to a town meeting or vestry... ...so there must, from the nature of men, be opposite parties... " (cited in Needleman, Jeremy P. Tarcher/Putnam, 2002, The American Soul, p.140-141).

That being true, one of the most important roles of government is to protect a space for human beings to exercise the freedom to think together; to exchange perceptions and ideas. That is almost impossible to do without providing also for a strong dose of compassion, one for the other.

No government can legislate compassionate but it can embody it and lead by example. I hope to do that.