Friday, May 26, 2023

Escanaba City Council Regular Meeting (May 18, 2023): OPRA, Taxes, Crusin, and Trust!

 Shields, on the River Tyne, for The Rivers of England, 
1823 J.M.W. Turner
While the contents of discussion were not particularly exciting an observation in governance came forward as it relates to trust and the ability to accomplish certain goals and efforts. You should keep in mind that within the last few years the local area has procured a $1+billion Billerud investment, $200 Million infrastructure improvement, increase in tourism (boats, buses, marina), new hotel development, and other interests. 

(If it keeps going it could find itself as a model city able to beat the market by balancing the various industry influences in a way in which they interact as a functioning cluster. i.e. meaning that industry, tourism, micromanufacturing, retail, events, lifestyle, etc are enhancing each other and leading to increased revenue and resources. I mean theoretically under optimal conditions and adaptations. There is a increased interest in tech hubs and other such innovative locations. Escanaba is a microcosm with almost all the right elements and could be a good candidate to apply for such programs. It relates to a transactional theory I'm working on. Keep in mind the MI govt. is also seeking to raise population among certain types of high demand workers. There are other emerging market factors where such hubs may make good sense. This is especially more likely to be true in low population areas that may attract a younger more nature conscious group. )

What we will often find between different government entities is differences in trust levels and its impact on engagement. For example, in this case we have relatively high trust levels even on discussions related to budgets. It doesn't mean everyone likes taxes or that there are no problems, but the general sentiment is that the city administration has their best interest in mind. 

As a casual observation, higher levels of trust have less conflict then entities in the same area that have lower levels of trust and thus more conflictual engagement. You may read Transparency and Trust in Government. Evidence from a Survey Experiment (Some of the formulas are cool)

Notes:

I cut and past some of the notes because they are already in the May 18/2023 Agenda but I found them to be interesting. I try and be as accurate as possible.

-17.4 mils on budget. Thursday, May 25, 2023, for the Second Reading, Public Hearing, and Adoption.

-Abating preferential rate for short period of time.  "Obsolete Properties Rehabilitation Act (OPRA) (PA 146, 2000) which allows for partial exemption of property taxes for a specified period of time so that certain types of property improvements can be made. The intent of the legislation is to encourage rehabilitation of underutilized or decaying commercial or commercial/residential properties in certain designated communities" (Anytime you can attract investment and fix up properties it is important and beneficial for tax generation in the long run, aesthetic appeal, and attracts future investments.)

  • "Lake Effect Distillery, LLC, owner of 723 Ludington Street, has requested to be enrolled in the Obsolete Properties Rehabilitation Act (OPRA) (PA 146, 2000) which allows for partial exemption of property taxes for a specified period of time so that certain types of property improvements can be made."

-You can read the agenda for a number of differences ordinances and dates and public hearing. 

-"The Krusin Klassic Car Club is requesting City Council approval to use Ludington Park and Ludington Street on June 2, 2023, from 6:00 p.m. to 8:00 p.m., for their annual "Krusin Klassics Fun Run". "

-I like their use of the Agenda and the way it is put together as I don't need to take notes and it is easy to follow. I cut and paste a few things I thought were interesting.

-"Closed Session – Discussion of Labor Contracts – HR Director/Treasurer. Explanation: Administration is requesting Council go into a closed session to consider material exempt from discussion or disclosure by statute under MCL 15.268(c), identified as negotiation of a collective bargaining agreement(s)." (I like negotiations and watching them unfold. Looks like this one was in closed session.)

-Some of the cruise members said they like the reception, like the town and loved the lakefront (Come on vacationers and investors....this is a great town to live and be part of!)

Thursday, May 25, 2023

G7 Meeting (May 20th, 2023): Supply Chains, Technology, Open Markets

The G7 recently met and discussed building resilient supply chains and general support for free markets. Important topics were brought up such as market manipulation and unfair competitive practices. There has been some members concerned about the supply chain issues stemming from geopolitical problems and market manipulation. Thus, the meeting appears to have had the effect of creating some general alignment on global concerns that will likely lead to further discussion/analysis of these concerns at a later date (i.e. the theme of discussion)

(As a quick note. Supply chains are important because they determine the flow of information and goods. They are not just supply chains but also mechanisms of influence. Thus, having open markets allows various factors of influence to take place that seeks to create the economic business environment.)

Some of the technology based items that are being focused on are critical minerals, semiconductors and batteries. (These are products in high demand so adjustment in supply chains are occurring based on changes in market demand and changes in the world geo-political environment.  You may be interested in the YouTube video below as it discusses infrastructure projects.)

Technology will become a bigger part of that open market discussion in future meetings. An interesting UNCTAD report called 'Innovation and Technology, 2021' highlights the speed of technology adaptation so that is a big part of the economic environment.. $350 billion to 3.2 Trillion by 2025. (I wonder where we are right now in terms of numbers? 🤔 This is why I say that COVID brought forward the possibility of a Digital Economy 10 years faster then would otherwise be expected. Not that there is an expectation but that its a natural development off of the Industrial Era. Hard Infrastructure pairing with more Digital Infrastructure. It creates whole new market dynamics based in economic fundamental shifts that lead to INNOVATION.)

You will also notice below a chart that discusses value added and employment sustained by foreign demand. It supports the idea that manufacturing is important for employment, wages, and economic growth. Open markets can be helpful when you are competitive and can value add items and brands with increasing value (digital, intellectual, labor, etc.). You can read more about that in OECD 'Why Open Markets Matter'.

*There was also a discussion on inclusion and that is important from a supply chain development standpoint but it was a little outside the scope of this article/post.



Wednesday, May 24, 2023

Delta County Board of Commissioners Meeting (5/16/2023) Concerns, Annexation, Tourism Dignitaries and Ethics!

Cicero (Roman senator, 106-43 BCE) 
Fresco by Cesare Maccari (1840-1919 CE).
Representation of change..
There was a lot of activity within this meeting spanning the spectrum from tourism to finance. Harder numbers were thrown around and people seemed upset about the annexation. Somewhere in the process I suspect they felt like their concerns were not being addressed fully. They brought forward their questions and issues and it appears there was some adjustment on the commission side.  It furthermore seems that the strategy of bringing forward information helps in creating change organically through public discussion. 

Key point: Democracy is a process of conversation.

Key point: Democracy is a process of making decisions based on that conversation.

Key point: Active interest in government and avenues of discussing issues publicly improves democratic outcomes (i.e. the need to protect freedom of speech as a mechanism of growth).

Democracy is a process of conversation because it is derived from a social behaviors (The design of society determines who is allowed to be in the conversation. For example, a dictator uses power to be the decision maker, a theocracy uses religious people, a democracy seeks to use a more form of organic societal decision making. Positive change happens through conversation. i.e. freedom of speech is central to successful decision making. Stifle that and you stifle democracies core method.). We elect people we think are going to represent our best interests. Some do and some don't. (Its not specific here but in general to all elected officials). When they represent us well, we reelect them. When they don't, we don't reelect them (Accurate information is necessary to make those decisions.)

We then go through a discussion using various channels to define what we want as a people and a community. The more accurate (based in observational truth) and honest (based in professed truth) everyone is within the process, the faster a shared truth that guides a community (This is why I like to say, "Which side of truth/"truth" of an argument are you using?" The observed and the professed.). When there is missing information and/or misleading information it can end in costly derailment of decision making. (This is also why we should avoid rudeness and extreme ideological fringes because it limits conversation. It limits not only the proper expression of legitimate concerns but also the hearing of those concerns. Say something rude to someone and you realize they probably stopped listening to you. In general it is best to be polite but persistent.

There were some positive adaptations that occurred from my perspective (My perspective is limited but still probably valid at least as an observational data point). There appeared to be some walking back of initial courses of actions and one path that may have been emanant is now slowed for more thorough decision making (I think this is the case. Some experience in contract negotiations so I would gauge it this way). 

An example of this adaptation in local thinking is helpful. I think the people in general agree that the solar farm is one issue and the annexation is a separate issue. If it is a separate issue it becomes possible to use alternative courses of actions such development without splitting or annexing townships. i.e. shared tax and service agreements with an entity for a specified period (There are other options but they will likely be unpopular and in many cases impractical.)

Notes: I try and keep accurate notes but sometimes I make mistakes. If I say something inaccurate just post a message or let me know and I will review and fix. 

-Concerned that the people should decide annexation and not the board. 

-Someone talking about one of the commissioner was a thief. Called someone a criminal. Something about recall and bringing up old stuff. 

-A letter sent in with general criticisms.

-A lady wants to keep Escanaba Twp. Fire Department services. I think if the solar farm comes into the area they could just do a shared tax agreement and an agreement on services. There is no need to annex another area to complete this. 

-Go Paul N! Go Paul! Felt his son was misled and he would challenge the petition for many reasons such as the older names. Such a thing as drastic as annexation should have a vote. An option would be to move to Wells Twp as an Escanaba Twp. will not be able to stand alone. He would restart an organization. Paul is a local mover and shaker in the area and has knowledge of these things. (Combining Wells and Escanaba Twp with industries like Billerud would likely create a strong performing investment location with higher funded services. However, that is a long route and benefits and detractors would need to be analyzed. Its a secondary option if annexation occurs.)

-.32 min. There is an issue of administrative fees and bonuses brought up. Very specific $600K in fee. They are admin fees in exchange for office space. 1. What was the administrative feel? 2. Was it used for something else? 2022 Admin fee. $72K. Two transaction. First 35K from that went to an account for employee labeled "Incentive Pay for Employees". About 10K went to each of the district employees. 10% of profits were kept but is only added in 2023 contract and not in any other contract. One of the district. Another 18K bonuses leading to $33K in bonuses for one of the district employees.

-Tourism dignitaries came out. (This participation is a testimony to how the community wants to grow and how it would benefit from tourism. If we then add that to micro manufacturing tourism related businesses (i.e. golf clubs, snow shoes, etc.) we can improve tourism appeal, investment appeal downtown, and have started an export market. As businesses learn to collaborate on the export market they are able to better hedge the value of these small micro manufacturers by getting their products listed online and listed in other countries. When we think of the new housing development downtown we should be excited about the possibilities for the town.)

$120K donated by the Hannahville Tribe. (The Native Americans in the area are a big part of contributing to our community. This is also why I advocate for greater tribal participation with local leaders to coordinate how both communities can grow. Escanaba should be a modern 'smart city' where different types people are encouraged and welcomed to engage with each other.)

(On a side note I really like this tribe. They do a lot for people in the area. We should be closer people and work together to accomplish our goals. While I had some early memories with that tribe I now find myself in later years respecting their traditions more. The video below is from a different tribe but the Great Spirit gave all two legged beings a choice to walk forward or backward and there are consequences. Light or Dark is a choice. You can watch 'Hear my words'.  If you understand anthropology, archeology, psychology, business, history, philosophy, etc. there is a philosophical concept of a logic to life."

-Comm. wants to bring forward an attorney for procedures and rules. Not frivolous lawsuits related. This is about avoiding being sued. The insurance must still approve which attorney they would use. Comm mentioned that the attorney in question had looked into the annexation on his own because of interest in the county. The crowd didn't appear happy. There was discussion on getting the attorney up in the area. 

-On discussion of annexation the comm asked another with a potential conflict of interest to recuse himself from discussion. Ethics and conflict of interest policy. The comm in question indicated that he will not be in a defendants chair and that there has been no evidence brought forward.

-Ethics polity 1001. Appearance of influence or accepting thing of value. 1101 Not allowed any decision to be made in one's interesting in business and disclose any conflict of interest. Under conflict of interest policy where an employee of a county has personal interest in issues. Avoid appearance through full public disclosure. 

-Some commissioners feel that a commissioner with a potential conflict should be recused by Robert Ballot. 1862 Esc. Twp. was established. People are not aware of the annexation. Have signatures of people who don't want this. 2.5 mils more cost. House cost will rise for insurance because of Cornell difference. Esc Twp. Fire Depart. would lose out on revenue. 190 people want to have their name removed. 409 signatures needed, minus decease, opposed, don't live there, etc. it doesn't reach 20% of the residents. 530 people who oppose the annexation. 3.5 weeks. 

(One of the most respectful and honorable things you can do for your nation and your community is to volunteer. Patriotism isn't only about symbols it is also about action. These local firefighters train for free but put their lives at risk each and every time they get a phone page. They are the ones who respond during the snow, rain, blazing heat and while everyone is still sleeping. If you can't volunteer then encourage others, and if you can't do that find some other way to support our volunteers. What is it like to be a firefigher? From what I have seen this is one of the most trained and capable departments in the area.)

-No one should vote on an issue of in which they have a interest nor can they be stopped. 

-Commissioner says he wants to protect Delta County. He would like to see meeting of Esc. Twp. and Cornell and then both together. 51% of everyone would have to agree. Will receive application for annexation soon. 

-Michigan trust fund grant.135K total match. 500+K money is coming forward. I think that is the same as Michigan Natural Resource Trust Fund  They feel that right now they are going to scrape the project because its a lot of extra work. 

-USDA and Sheriff Dept. watch land. There are some service reimbursements. 

-Resignation in dispatch and need someone to refill the position. 

-Veterans Service Fund. Buying equipment and use of multi purpose garage.$78K requested.

-Open position from retirement in corrections. 

-Blight Elimination Grant $500K for reimbursement grant. You can read more about that grant HERE. Terrace Bay Work Group will conduct the site cleaning, state will pay but through DC.

-Discussion on addressing and personal comments. Special Delta County Conservation District Board of Directors June 21st 4-8pm in person voting Pioneer Trail Park. 

-Open Meetings Act. Purchasing Policy Sept. 21st 2021 rules and procedures were approved by commission. During park and recreation must be bid over 10K and it wasn't. It was brought up but ignored 2X publicly. Discussed rules that were not followed and posting requirements.

-Only a few showed up to elections on board. 

-Nov. meeting upset calling twp. board "Marxists" and "ignorance on steroids." Feels like there is a projection 

(I'm not going to share my opinion here as this is the opinion of the speaker. I think she was talking about projection. Harvard wrote something on the topic in An Experiment on Interpersonal Projection Bias. A misperception gap up to like 27%. I tried to find one sort of neutral because I like to trace back the meaning of things people sometimes say just to see where it came from. I failed Harvard's economics class one time. Put in a higher class then I should have taken and then did B+/A- but was spending grueling hours on it along with lots of other full-time work. Somewhere in the middle I dropped/abandoned the class. I only took a few classes for fun.)

-Commissioner discussed and promoted annexation at public meetings. This is why I like these things should be recorded just in case. Obligation to know how much is coming back and used within government. There are concerns. Wants revenue from parks back. 

-Appalled by what she sees. Mentions Tail Gunner Joe and refers to one of the Comms.

-Concerned about my political enemies are your political enemies. Said after hiring of new admin and then posted it again Craig Warpal Newsmaker. (I can't find it). Concerns of words on RINO, obstruction, Democrat, Liberal, etc... 

-Courthouse security concern. 

-Radio comment concerns on the new pro bono attorney rewriting policies of county and prayer in the organization. She feels that there is corruption if they are deciding issues beforehand. 

-Issues of attorney doing pro bono work and be on stand bye. Audio is cutting out because of loudness. Concerned that prosecuting attorney is being side stepped. Couldn't hear anything. Something about wife?

-One lady concerned about what is meant by non-denominational. She said that there are Muslims, Jews, Hindus in town and others who pay taxes.   'Socioeconomic Impact of Religious Freedom')

-The poet (I think its the poet) that says they may want to get the sound muffler. 

-One resident became concerned about some behaviors on social media and intimidation and harassment behaviors in the community (Do you know there are people out there who believe its ludicrous we could have social and physical intimidation for any reason? My personal opinion is if we can see it on the playground in our grade schools some of those kids grow up to do it in adult life.). Talks about seeing corruption and other things. Doesn't care about whether we get solar but how we get there to that decision.  Discussed recusal. No one should go into office for personal gain. Wants the 4 members to vote on annexation or solar panels after the recusal and if they can't then put it out for a vote. 

-One community member felt. I will just quote it, "Your Policy Sucks!"

 (Policies are generally the best place to start to look for potential issues. Lots of problems stem from either policies or not having mechanisms to enforce policies. Good policies and enforcement help any system avoid confusion and inappropriateness. Its not specific to here or anywhere else. I sort of found a funny video on a similar topic 'Back to School'. )

-Concern on ethics and firing of prior administrator. 

-2 years ago some comms discussing bullying. 

-Discussion on contracting with court security.

-One Comm apologized how he acted. Will support new admin (We may disagree with what happened but that doesn't necessarily mean that this admin has anything to do with it. It was an open opportunity it would be natural for people to apply.) A discussion on supporting veterans. Keeping track of veterans. Wants to ensure the ethics policy is sent to all commissioners. Also discusses his happiness that young people are getting involved (Don't underestimate our youth! They learn from us. Let us hope we are giving them helpful lessons.). New business Bay Veteran Clinic (I think this is the right one.). 90 minute session on solar panel questions. Process for answering public questions. (Its hard to answer right on the spot sometimes and sometimes questions are more emotional then logical. Actual questions should be answered either there, on a page/social media, and/or the next meeting. It helps to ensure that legitimate questions and concerns should have responses. It improves transparency and information.)

-Discusses how different states have rules as they relate to names and location, etc. of people who request.

-Comm states that they would need a meet with Esc. Twp and they would need Cornell Twp. and one with the county to complete the annexation. He said the twp. would then need to vote on it. (I think its possible to carve out a shared agreement on how to service and collect taxes on the location as a special exemption for industrial development. That way both twp. receive tax monies. There will be some costs that will need to go to fire departments and other services. This is kind of why I'm thinking about having a first responder fund that can be contributed to fund those expenditures.)

-Ethics complaints go through different people. Ethics board has three. Chair for Personnel Committee, County Chair, and Prosecutor. You can submit complaints to any of the three people. 

-Prayer is from 1861 Non-denominational. Includes everyone. The rules and ethics policies have been around since 1990. 

Monday, May 22, 2023

It is those who know how to grind that get things done. (Motivational Video)

I really like these motivational videos because they kind of get you pepped up with your morning coffee and walk/jog. I thought you might like it. Me, I just got in last night so I'm out grinding already this AM. No matter what you want out of life, your going to have to take steps for it. I accomplished most of my main goals so I reset a few bigger ones. Its the journey, not the goal, that is enticing. 

Sunday, May 21, 2023

What is the Difference Between Organizations/Institutions That Navigate Change Well and Those that Don't?

What  makes one organization or institution willing to change to meet new demands and other organizations won't change until there are serious market/public losses. Successful organizations typically comes down to adaptability but one must wonder what are the differences between those who adapt well to change and those that don't.  

The first point to consider is Albert Einstein's Quote , "Today’s problems cannot be solved with the same level of thinking that created them.”

People change and organizations change to meet new demands. Let us look at quality of leadership, customers focus, environmental pressure and resources. 

1. Quality of Leadership: If the leadership doesn't recognize the change and doesn't have the foresight to change, they will avoid making decisions in the long run and instead focus on short term gains more exclusively. In other words, they are task oriented with limited focus but don't solve the essential problem.

2. Customer Focus: If one has a specific customer in mind they will not change as long as that is their primary customer. Sometimes organizations are not aware their customer are different and they will begin to loose customers. If they are an institution they will have lower trust levels.

3. Environmental Pressure: Environmental pressure can force organizations to change or eventually move into misalignment where decline increases. Analyzing the long term strategy and mission are helpful.

4. Resources: A business or institution may not have the resources to change. In this case they have to borrow, sell, or do other things that put resources when they are needed. Sometimes they wait for a major calamity, competition or bankruptcy to change.

Whether we are talking about business or government institutions there are times when change will put them ahead of the curve or they may wait until after the curve. After the curve, thinking becomes more reactive and often leads to wholesale organizational disruption. Pre curve change have some risks but the rewards are high. The biggest point to be made here is that leadership quality, customer focus, environmental pressure, and available resources determine whether an organization can recognize the need for change and make that change happen. 

Saturday, May 20, 2023

Escanaba Back in the Day-Delft Theater


 

Risk of Default Rises, Need for U.S. Balanced Budget, the Need for Shared Goals

Deposits are lower and there is some risk that there is a pressure on banks with higher interest rates causing some banking pressure. Thus, we might expect more consolidations, reduced bank stocks, and perhaps a few defaults.  There are also some concerns about how to balance the budge, commercial banking activities and the general need to work toward shared goals. You may find the video and information below as helpful. 

If we look at the FRED data on commercial bank deposits and revolving credit there is a little concern. However, when you go to the actual chart you can move to a 5 year view and you will see we are still up in deposits overall. The revolving credit might be an issue because if you have a US default you will likely find credit defaults which causes a chain reaction. How far, we don't actually know. I would be interested in seeing some projections. 

This is the danger of politics. We know we have a debt/spending problem, we know we must compete internationally, so its intuitive we need to restructure and change to put resources where its going to create net positives (That is not against all social programs which if they use the right metrics some are likely net positives.). It does mean going through our different initiatives and programs and ensure we are cutting waste and we are improving their effectiveness around 4-5 main goals for the country. 

My opinion is do as much as you can, extend 6 months (or some months) and work on adjusting our finances for national success. Start with what we know we need to keep and then putting together bipartisan teams to look at each major government expenditure. We encourage mature politicians that want to work these issues out to be collaborators with the party across the isle for mutual growth. No room for staunch ideologies. Everyone must work together. 

Description: Kate Kelly, New York Times reporter, Larry McDonald, The Bear Trap Report founder, and CNBC's Leslie Picker discuss the latest comments from Janet Yellen on the banking crisis, the ongoing debt ceiling debate, and more.

Dr. Janet Yellen discusses risks of breakdown Yellen warns against a US default

These Federal Reserve Commercial Bank Deposits and Revolving Credit. You can gain more from FRED Economic Data Deposits, All Commercial Bank


Commercial Bank Deposits











Commercial Bank Revolve Credit.