If you've attended the web page I recommended
in the previous article, you have been exposed to
some ideas about migration. That includes the
generally accepted premise that the most
monetarily aggressive individuals leave regions
that are economically less viable and migrate to
locations that hold better promise for opportunities.
That certainly is true of Iron County. The individuals
we lose are the ones we actually need to keep the
most. These are the people who, with the support of
friends and family, are most likely to be able to start,
or maintain, viable local businesses.
Just as important, if not more so, is the attracting
home of people, families too, who have successfully
acquired experience outside this region. They would
be the ones who could probably most successfully
import new ideas into our community.
Several years ago I proposed a project that would
have brought money, and people, into this community.
It was rejected, in the end, because our local gentry
were unable to figure out how they could personally
profit from the project, and bringing more people
into the community is generally frowned on. Heaven
forbid that new residents (such as myself) might not
see things exactly the same way as members of the
existing power structure!
We desperately need more people in Iron County,
people who work and earn and can move this community
forward.
Have you asked yourself lately what it is that the
Iron County Economic Development Corporation has
achieved for you and for your neighbors? What growth
in this community have you seen in the past 10, or 20,
or 30 years?
How about some input of ideas on how to help the
population, and the economy, of Iron County grow.
A new airport isn't the answer. A new airport would
benefit a few businessmen who are already doing all
the business they can locally. That's a no win project
with the "Airport Committee" being headed up by
the individual who stands to gain the most by the
county building a new airport for him.
So long as our population continues to shrink, there's
nothing we have to offer the economic world that
can't be had elsewhere. Growth begins with having a
well educated, think on their feet, workforce that is
eager and willing to work whenever required. We need
to stop giving the best economic gift we have to other
areas of the US. In Europe they used to call it "the brain
drain" because most of their best emigrated to the US
for better opportunities. Our situation is similar.
It looks like Iron County presently lacks the leadership
necessary to improve our economic situation. If I
were a member of the local leadership I'd get so mad
about the situation that I'd do something positive to
crack the shell of impassivity, and to drive progress
for this community.
Instead the local leadership sits back in their chairs
and promotes rumors like, "Bill Vajk is out to destroy
Iron River" because rumor mongering is easier for
them that doing something, anything, that actually
works towards progress.
Well your rumor is as much hogwash as the progress
you've managed to bring to this community.
Bill Vajk
Thursday, January 27, 2011
Wednesday, January 26, 2011
about some numbers
The personal preference from the standpoint
of writing this newsletter is to avoid you-tube
and other similar presentations. However one
came to my attention that is difficult/impossible
to ignore because the presentations are quite
well thought out and smooth.
http://numbersusa.org/
I hope that everyone reading here will play
out the brief videos that the web page presents
because tomorrow I'll be writing a paper that
considers Iron County in light of the discussions
brought to us by Mr. Beck (and no, that's not
Glenn Beck.)
Bill Vajk
of writing this newsletter is to avoid you-tube
and other similar presentations. However one
came to my attention that is difficult/impossible
to ignore because the presentations are quite
well thought out and smooth.
http://numbersusa.org/
I hope that everyone reading here will play
out the brief videos that the web page presents
because tomorrow I'll be writing a paper that
considers Iron County in light of the discussions
brought to us by Mr. Beck (and no, that's not
Glenn Beck.)
Bill Vajk
Monday, January 17, 2011
Term Limits
Representative Sharon Tyler (R) Niles, has introduced
a bill to put a constitutional amendment on the ballot
for the next general election that could allow the doubling
of the number of terms that Michigan legislators can
serve. (House Joint Resolution C.)
Currently the limits are 3 terms (6 years) for state
representatives and 2 terms (8 years) for state senators.
The measure is cosponsored by Reps. Greg MacMaster,
Peter MacGregor, Al Pscholka, Matt Lori, Kevin Cotter,
Kenneth Kurtz, Mike Shirkey, Mike Callton, Ken Yonker,
Gail Haines, Hugh D. Crawford, Kurt Damrow, and
Wayne A. Schmidt, all Republicans. There's one list
of "must replace immediately" politicians to be ousted
at the first opportunity.
It looks as though the Tea Party message of the last
election was not received by these legislators. In 1992,
Proposal B that imposes the term limits, was passed by
58.7 percent of the voters. What the public wants is
representation by fresh faces, eager to do the best for
their constituents, rather than prototypical jaded career
politicians who eventually burn out and become more
apt to see to their personal interests than those of the
people.
This philosophy should expand to local governments in
Michigan as well.
The Soviet period philosophy had "people's judges"
appointed a year at a time for much the same reasons.
They did not want the judiciary becoming complacent
in their positions and amassing any significant personal
prestige and power. Common sense prevailed. The
understandings of their rule of law translated succinctly
in the courtroom absent all the superfluous technicalities
we are experiencing in the US today.
Nobody ever made the mistake of claiming that the
soviets were stupid. In this they appear to have been
much smarter than we are. We have only to look at the
incestuous relationships between the various political
bodies in Iron County to understand the dangers of
allowing a small group to run local government over
long periods of time.
We, as a people, should establish term limits for every
elected office in the state.
Bill Vajk
a bill to put a constitutional amendment on the ballot
for the next general election that could allow the doubling
of the number of terms that Michigan legislators can
serve. (House Joint Resolution C.)
Currently the limits are 3 terms (6 years) for state
representatives and 2 terms (8 years) for state senators.
The measure is cosponsored by Reps. Greg MacMaster,
Peter MacGregor, Al Pscholka, Matt Lori, Kevin Cotter,
Kenneth Kurtz, Mike Shirkey, Mike Callton, Ken Yonker,
Gail Haines, Hugh D. Crawford, Kurt Damrow, and
Wayne A. Schmidt, all Republicans. There's one list
of "must replace immediately" politicians to be ousted
at the first opportunity.
It looks as though the Tea Party message of the last
election was not received by these legislators. In 1992,
Proposal B that imposes the term limits, was passed by
58.7 percent of the voters. What the public wants is
representation by fresh faces, eager to do the best for
their constituents, rather than prototypical jaded career
politicians who eventually burn out and become more
apt to see to their personal interests than those of the
people.
This philosophy should expand to local governments in
Michigan as well.
The Soviet period philosophy had "people's judges"
appointed a year at a time for much the same reasons.
They did not want the judiciary becoming complacent
in their positions and amassing any significant personal
prestige and power. Common sense prevailed. The
understandings of their rule of law translated succinctly
in the courtroom absent all the superfluous technicalities
we are experiencing in the US today.
Nobody ever made the mistake of claiming that the
soviets were stupid. In this they appear to have been
much smarter than we are. We have only to look at the
incestuous relationships between the various political
bodies in Iron County to understand the dangers of
allowing a small group to run local government over
long periods of time.
We, as a people, should establish term limits for every
elected office in the state.
Bill Vajk
Tuesday, January 11, 2011
New Iron County Airport
Roughly ten years ago, the populace of Iron County,
Michigan, let it be known that they wanted no part of
the county taking on a new airport. They did this by a
large representation at a County Board of Commissioners
meeting where they let their voices be heard. There was
no doubt about their wishes.
But our two main proponents wanting a new airport for
their own purposes, Messrs. Atanasoff and Oldenburg,
were not dissuaded from the pressures they've continued
to exert on the local political structure.
Oldenburg has a factory at 1520 W. Adams Street in
Iron River. He has his tax exemptions in place and things
are running smoothly for his business that has several
other locations in the region.
The Atanasoffs have a good sized facility at 303 Seldon
Road in Iron River, and has gas stations throughout
northern Wisconsin and the upper peninsula. Recently
Krist Oil, the corporation owned by the Atanasoffs has
started asking for a tax exemption for a tractor rebuilding
facility.
Both are viable, ongoing businesses in Iron County. Both
use airplanes for their corporate purposes. Neither has
given up on pressuring the county for a new, more luxurious,
airport funded by the public. There has been an occasional
mention in county board minutes about a new airport. In
fact, the county board set up an "Airport Committee" that
took the bit in its teeth, illegally appointed additional members
on its own, and failed to hold the public meetings required
by state law. This is what can generally be expected when
an arm of government cowtows to private interests rather
than complying with public interests. The existing committee
was dissolved by the County Board of Commissioners with
an eye to installing a new one, that will operate while complying
with state law, in January 2011.
Despite the absence of any formal County Board approval,
work on a new airport has apparently continued unabated.
It appears that Oldenburg's pilot recently visited the former
state prison in Iron River Township which has been reported
as a potential site for the proposed new airport.
There remain two problems. First, although it is proposed
that a new airport would cost the taxpayers nothing, there
is no plan in place to support ongoing expenses such as
maintenance without added taxation. The taxpayers in
Iron County will never stand for supporting a new airport
that is nothing more than a plaything for those wealthy enough
to own aircraft.
The second is that no satisfactory justification for building a new
airport has been offered by anyone officially involved with Iron
County. The only justification offered reads more like a cargo
cult mentality than anything real.
The two corporate entities that are interested cannot rationally
support an airport. There is no reason the public should support
one for them. When enough usage is demonstrated, a publicly
funded airport should be built. We have not reached that day.
Given our collapsing population and economy, that day doesn't
appear to loom in sight during this century.
Bill Vajk
Michigan, let it be known that they wanted no part of
the county taking on a new airport. They did this by a
large representation at a County Board of Commissioners
meeting where they let their voices be heard. There was
no doubt about their wishes.
But our two main proponents wanting a new airport for
their own purposes, Messrs. Atanasoff and Oldenburg,
were not dissuaded from the pressures they've continued
to exert on the local political structure.
Oldenburg has a factory at 1520 W. Adams Street in
Iron River. He has his tax exemptions in place and things
are running smoothly for his business that has several
other locations in the region.
The Atanasoffs have a good sized facility at 303 Seldon
Road in Iron River, and has gas stations throughout
northern Wisconsin and the upper peninsula. Recently
Krist Oil, the corporation owned by the Atanasoffs has
started asking for a tax exemption for a tractor rebuilding
facility.
Both are viable, ongoing businesses in Iron County. Both
use airplanes for their corporate purposes. Neither has
given up on pressuring the county for a new, more luxurious,
airport funded by the public. There has been an occasional
mention in county board minutes about a new airport. In
fact, the county board set up an "Airport Committee" that
took the bit in its teeth, illegally appointed additional members
on its own, and failed to hold the public meetings required
by state law. This is what can generally be expected when
an arm of government cowtows to private interests rather
than complying with public interests. The existing committee
was dissolved by the County Board of Commissioners with
an eye to installing a new one, that will operate while complying
with state law, in January 2011.
Despite the absence of any formal County Board approval,
work on a new airport has apparently continued unabated.
It appears that Oldenburg's pilot recently visited the former
state prison in Iron River Township which has been reported
as a potential site for the proposed new airport.
There remain two problems. First, although it is proposed
that a new airport would cost the taxpayers nothing, there
is no plan in place to support ongoing expenses such as
maintenance without added taxation. The taxpayers in
Iron County will never stand for supporting a new airport
that is nothing more than a plaything for those wealthy enough
to own aircraft.
The second is that no satisfactory justification for building a new
airport has been offered by anyone officially involved with Iron
County. The only justification offered reads more like a cargo
cult mentality than anything real.
The two corporate entities that are interested cannot rationally
support an airport. There is no reason the public should support
one for them. When enough usage is demonstrated, a publicly
funded airport should be built. We have not reached that day.
Given our collapsing population and economy, that day doesn't
appear to loom in sight during this century.
Bill Vajk
Tuesday, January 4, 2011
Windsor Center - history and taxation issues
The Windsor Center is the former Middle School at
Iron River, Michigan. The building was built in 1929
and served, till recently, as a school. It became
surplussed because of a long term depopulation in
this part of the country.
I recommended demolition of this building. The
City of Iron River and the Iron County Economic
Development Corporation (EDC)thought it could be
made into some sort of community center along
with commercial rental properties. I was urging
that the citizens should be asked whether or not
this building should be reused as envisioned by
the few who seemed to think it a good idea.
However the powers that be plunged headlong into
creation of a consortium was that assembled to take
over the ownership and operation of the property as
a not-for-profit operation. The City of Iron River
and adjoining townships were asked to participate.
In the end, interest and participation was limited.
On March 31, 2010, the EDC held a meeting at the
Windsor Center. An excerpt from the local newspaper
had this to say:
"The tour followed a request from the Joint Public
Building Restoration Authority for financial support
from the EDC in funding an engineering feasibility
study to determine the “needs and wants” regarding
upgrading, renovating and remodeling the building.
U.P. Engineers agreed to conduct the study, at a
cost of $6,900.
"The EDC approved accepting a grant request from the
Building Authority."
By May, Second Wave Media reported:
"Development of the former West Iron County Middle
School into a thriving business and community center
is well underway, with new businesses moving in and
an engineering study planned for remodeling this month. "
At a City of Iron River open meeting on July 23, 2010, the
following activity appears in the minutes:
"Articles of Incorporation for the Windsor Recreation Authority
-Rick Commenator: The Joint Public Building Restoration
Administrative Board, which oversees the former WIC Middle
School building is in the process of forming a Windsor Recreation
Authority. The Authority will have the ability to seek millage to
operate, maintain and/or improve the public auditorium and
recreation facility. Commenator explained it is the objective of
the Authority to give voters the opportunity to voice their
approval or disapproval concerning the preservation of the
building by proposing a ½ mill for 5 or 10 years on the
November 2010 ballot. The three other participating
communities (Stambaugh, Bates, and Iron River Townships)
have adopted the Articles of Incorporation. Commenator
noted the WIC School District will not administer the
Recreation program next year."
In our opinion, that approval should have been sought at
the beginning, not so near the end that will result from
voter disapproval!
Last fall a flier was sent out offering educational
opportunities, entertainment, and commercial space
for rent. A request for millage was on the ballot in the
November 2010 election. All millage requests were
generally voted against in that election. The electorate
is quite obviously unwilling to pay additional property
taxes in order to support Windsor Center.
The results of the election have been posted on the Iron
County web page at:
And then the EDC announces:
"Two projects which will be taken off the EDC’s agenda
are the Crystal Manor/Crystal View Apartment project
and the Windsor Center support."
Now that the voters and the EDC have abandoned ship,
and the claim as made to the voters that Windsor Center
requires taxpayer support, what's going to happen to it?
Is the City of Iron River, along with participating three
townships, on the hook for whatever happens to the
property from now on?
Now to the issue that tweaked my interest in the Windsor
Center this time around.
The building has commercial, read "profit making"
businesses as tenants. The property is owned by a not
for profit entity. The rent for commercial space is,
in our opinion, artificially low considering the included
heat and utilities.
What is the tax status of the property. With all the
available vacant commercial properties in Iron County,
it seems that unfair competition is occurring if the
costs for commercial space rental fails to include
property and personal property taxes.
It seems to us that if tax abatements are sought by
the businesses leasing space at Windsor Center, each
of them ought to have gone through the process because
it appears that the building has been put to mixed
usage including retail space which is not subject to
tax abatements.
The process required to achieve tax exemptions is
nicely stated in plain English at:
The Midland MI text follows:
"The State of Michigan’s Public Act 198 of 1974 allows
local governments to grant tax abatements that reduce
both real and personal property taxes on new plants or
investments that rehabilitate obsolete facilities and
equipment. Historically, local governments in Midland
County have been pro-business, granting abatements
for the full twelve year period without terms for large
and small manufacturers.
"The abatement will reduce the amount of real and
personal property tax paid by the company for the
project by roughly 50 percent each or in the case of a
plant rehabilitation project, the obsolete SEV is frozen
and the investment on improvements is 100 percent
exempt from property taxes.
"Eligible businesses include industrial plants that
primarily manufacture or process goods or materials
by physical or chemical change. Related facilities of
Michigan manufacturers such as offices, engineering,
research and development, warehousing or parts
distribution are also eligible for exemption. Schools
are generally not affected due to the school foundation
grant. All or half of the State’s six mills for education
may be abated by the Michigan Economic Development
Corporation (MEDC) if the project warrants and is
approved by the MEDC.
"To receive tax abatement under P.A. 198, the eligible
business must complete a two-step process. The first
step is to file a written request with the local
municipality, before starting the project to be abated,
to establish an Industrial Development District or
Plant Rehabilitation District. After a public hearing,
the legislative body of the local municipality adopts a
resolution establishing the district.
"The second step for the business is then to file a
request with the local municipality to receive an
Industrial Facility Tax (IFT) Certificate, which
entitles the facility to exemption from ad valorem
real and/or personal property taxes for a period of
1 to 12 years. After a public hearing, the legislative
body of the local municipality adopts a resolution
granting the exemption. The approved application is
then submitted to the state of Michigan Tax
Commission and the Michigan Economic
Development Corporation for review and final
approval. Applications are due to the State Tax
Commission by October 31 to be eligible for
exemption in the following year. The State Tax
Commission is ultimately responsible for final
approval and issuance of certificates."
We will send Mr. Jeff Sabotta, the City of Iron River
assessor, a copy of this article with a request that he
provide us with the current tax status of the Windsor
Center since the tax status of that property is generally
unknown at this time.
We will publish his answer here as soon as it is received.
Bill Vajk
Iron River, Michigan. The building was built in 1929
and served, till recently, as a school. It became
surplussed because of a long term depopulation in
this part of the country.
I recommended demolition of this building. The
City of Iron River and the Iron County Economic
Development Corporation (EDC)thought it could be
made into some sort of community center along
with commercial rental properties. I was urging
that the citizens should be asked whether or not
this building should be reused as envisioned by
the few who seemed to think it a good idea.
However the powers that be plunged headlong into
creation of a consortium was that assembled to take
over the ownership and operation of the property as
a not-for-profit operation. The City of Iron River
and adjoining townships were asked to participate.
In the end, interest and participation was limited.
On March 31, 2010, the EDC held a meeting at the
Windsor Center. An excerpt from the local newspaper
had this to say:
"The tour followed a request from the Joint Public
Building Restoration Authority for financial support
from the EDC in funding an engineering feasibility
study to determine the “needs and wants” regarding
upgrading, renovating and remodeling the building.
U.P. Engineers agreed to conduct the study, at a
cost of $6,900.
"The EDC approved accepting a grant request from the
Building Authority."
By May, Second Wave Media reported:
"Development of the former West Iron County Middle
School into a thriving business and community center
is well underway, with new businesses moving in and
an engineering study planned for remodeling this month. "
At a City of Iron River open meeting on July 23, 2010, the
following activity appears in the minutes:
"Articles of Incorporation for the Windsor Recreation Authority
-Rick Commenator: The Joint Public Building Restoration
Administrative Board, which oversees the former WIC Middle
School building is in the process of forming a Windsor Recreation
Authority. The Authority will have the ability to seek millage to
operate, maintain and/or improve the public auditorium and
recreation facility. Commenator explained it is the objective of
the Authority to give voters the opportunity to voice their
approval or disapproval concerning the preservation of the
building by proposing a ½ mill for 5 or 10 years on the
November 2010 ballot. The three other participating
communities (Stambaugh, Bates, and Iron River Townships)
have adopted the Articles of Incorporation. Commenator
noted the WIC School District will not administer the
Recreation program next year."
In our opinion, that approval should have been sought at
the beginning, not so near the end that will result from
voter disapproval!
Last fall a flier was sent out offering educational
opportunities, entertainment, and commercial space
for rent. A request for millage was on the ballot in the
November 2010 election. All millage requests were
generally voted against in that election. The electorate
is quite obviously unwilling to pay additional property
taxes in order to support Windsor Center.
The results of the election have been posted on the Iron
County web page at:
And then the EDC announces:
"Two projects which will be taken off the EDC’s agenda
are the Crystal Manor/Crystal View Apartment project
and the Windsor Center support."
Now that the voters and the EDC have abandoned ship,
and the claim as made to the voters that Windsor Center
requires taxpayer support, what's going to happen to it?
Is the City of Iron River, along with participating three
townships, on the hook for whatever happens to the
property from now on?
Now to the issue that tweaked my interest in the Windsor
Center this time around.
The building has commercial, read "profit making"
businesses as tenants. The property is owned by a not
for profit entity. The rent for commercial space is,
in our opinion, artificially low considering the included
heat and utilities.
What is the tax status of the property. With all the
available vacant commercial properties in Iron County,
it seems that unfair competition is occurring if the
costs for commercial space rental fails to include
property and personal property taxes.
It seems to us that if tax abatements are sought by
the businesses leasing space at Windsor Center, each
of them ought to have gone through the process because
it appears that the building has been put to mixed
usage including retail space which is not subject to
tax abatements.
The process required to achieve tax exemptions is
nicely stated in plain English at:
The Midland MI text follows:
"The State of Michigan’s Public Act 198 of 1974 allows
local governments to grant tax abatements that reduce
both real and personal property taxes on new plants or
investments that rehabilitate obsolete facilities and
equipment. Historically, local governments in Midland
County have been pro-business, granting abatements
for the full twelve year period without terms for large
and small manufacturers.
"The abatement will reduce the amount of real and
personal property tax paid by the company for the
project by roughly 50 percent each or in the case of a
plant rehabilitation project, the obsolete SEV is frozen
and the investment on improvements is 100 percent
exempt from property taxes.
"Eligible businesses include industrial plants that
primarily manufacture or process goods or materials
by physical or chemical change. Related facilities of
Michigan manufacturers such as offices, engineering,
research and development, warehousing or parts
distribution are also eligible for exemption. Schools
are generally not affected due to the school foundation
grant. All or half of the State’s six mills for education
may be abated by the Michigan Economic Development
Corporation (MEDC) if the project warrants and is
approved by the MEDC.
"To receive tax abatement under P.A. 198, the eligible
business must complete a two-step process. The first
step is to file a written request with the local
municipality, before starting the project to be abated,
to establish an Industrial Development District or
Plant Rehabilitation District. After a public hearing,
the legislative body of the local municipality adopts a
resolution establishing the district.
"The second step for the business is then to file a
request with the local municipality to receive an
Industrial Facility Tax (IFT) Certificate, which
entitles the facility to exemption from ad valorem
real and/or personal property taxes for a period of
1 to 12 years. After a public hearing, the legislative
body of the local municipality adopts a resolution
granting the exemption. The approved application is
then submitted to the state of Michigan Tax
Commission and the Michigan Economic
Development Corporation for review and final
approval. Applications are due to the State Tax
Commission by October 31 to be eligible for
exemption in the following year. The State Tax
Commission is ultimately responsible for final
approval and issuance of certificates."
We will send Mr. Jeff Sabotta, the City of Iron River
assessor, a copy of this article with a request that he
provide us with the current tax status of the Windsor
Center since the tax status of that property is generally
unknown at this time.
We will publish his answer here as soon as it is received.
Bill Vajk
Wednesday, December 29, 2010
Financials and Other Issues - Northstar
Northstar is the name of our local hospital on Ice Lake
Road in Iron River, Michigan.
A municipal bond was authorized and it has been funded
at $23,150,000. The hospital has continuously
experienced a net loss from operations since 2008. We,
in Iron County, should all be concerned.
The second and third quarter reports are available online
at http://tinyurl.com/24os4hw
The reported cumulative loss from operations is identical
for the second and third quarters, standing at $1,087,000.
That probably means that in the third quarter, the hospital
broke even, a significant (positive) advance in their status.
It all depends on how book keeping was done and reported.
The second quarter report contains information provided
by consultants hired to improve the operations of the
hospital. Hiring of a consultant was predicted in an earlier
report in the series. I've read it and recommend it to
anyone who is interested.
The reported increase of the emergency department from
1500 square feet to 9000 square feet seems somewhat
of an overkill. But the purpose here is not to tear the recent
expansion apart because that's a done deal. Current and
future business practices need to be looked at by a cross
section of the community larger than the board of directors.
Unfortunately in the closed setting of such a board of directors,
they are usually spoon fed such information as the CEO and
CFO chose to provide. It would be nice to know more about
how this hospital, such a crucial part of life in Iron County, is
actually operated.
One of the MBA school discussions (master in business
administration) holds that a good manager will supervise
employees by frequent surprise appearances when and
where least expected. A CEO, for example, will come in
through a back door and appear in a production area (in
this case, anywhere that services are provided) without
appearing to notice anything out of line. The mere presence,
and immediate understanding by employees or staff that
their job performance was just reviewed is usually adequate
to instill focus on their individual job related tasks.
When some performance defects are noticed, that information
should be retained by by the CEO, and if improvement is not
noted during later visits, the next higher tier of supervision
should be invited in for a chat with the CEO. The point isn't
to instill fear in employees or staff, but to remind them that
they're part of a larger team that has a mission statement to
live up to.
In reading the consultant review of hospital operations, it
was obvious to me that a corporate culture that grew out
of this hospital beginning as a politically operated entity has
not yet been overcome. Every hospital ought to be operated,
within the confines of the mission statement, as though it were
a profit making business. Good business practices achieve
strengths in those areas that have a demand for services, and
attract their clients through competence.
As a former consultant, I've witnessed companies that hire
expendable consultants for the sole purpose of continuing
business as usual. When the financial situation fails to improve,
the company blamed the consultant, hired an new consultant,
and repeated the cycle several times until a board of directors
either replaced senior management, or the worse case scenario
unfolded and the company went completely under.
The second quarter report can be accessed at:
http://tinyurl.com/2ga55ho
I'm not suggesting that to be the case here and I remain
hopeful that it is not. The next few quarters will tell all of us
whether or not Northstar can become a financially successful
not for profit institution. The economic success of the hospital
is important to our community.
Bill Vajk
Road in Iron River, Michigan.
A municipal bond was authorized and it has been funded
at $23,150,000. The hospital has continuously
experienced a net loss from operations since 2008. We,
in Iron County, should all be concerned.
The second and third quarter reports are available online
at http://tinyurl.com/24os4hw
The reported cumulative loss from operations is identical
for the second and third quarters, standing at $1,087,000.
That probably means that in the third quarter, the hospital
broke even, a significant (positive) advance in their status.
It all depends on how book keeping was done and reported.
The second quarter report contains information provided
by consultants hired to improve the operations of the
hospital. Hiring of a consultant was predicted in an earlier
report in the series. I've read it and recommend it to
anyone who is interested.
The reported increase of the emergency department from
1500 square feet to 9000 square feet seems somewhat
of an overkill. But the purpose here is not to tear the recent
expansion apart because that's a done deal. Current and
future business practices need to be looked at by a cross
section of the community larger than the board of directors.
Unfortunately in the closed setting of such a board of directors,
they are usually spoon fed such information as the CEO and
CFO chose to provide. It would be nice to know more about
how this hospital, such a crucial part of life in Iron County, is
actually operated.
One of the MBA school discussions (master in business
administration) holds that a good manager will supervise
employees by frequent surprise appearances when and
where least expected. A CEO, for example, will come in
through a back door and appear in a production area (in
this case, anywhere that services are provided) without
appearing to notice anything out of line. The mere presence,
and immediate understanding by employees or staff that
their job performance was just reviewed is usually adequate
to instill focus on their individual job related tasks.
When some performance defects are noticed, that information
should be retained by by the CEO, and if improvement is not
noted during later visits, the next higher tier of supervision
should be invited in for a chat with the CEO. The point isn't
to instill fear in employees or staff, but to remind them that
they're part of a larger team that has a mission statement to
live up to.
In reading the consultant review of hospital operations, it
was obvious to me that a corporate culture that grew out
of this hospital beginning as a politically operated entity has
not yet been overcome. Every hospital ought to be operated,
within the confines of the mission statement, as though it were
a profit making business. Good business practices achieve
strengths in those areas that have a demand for services, and
attract their clients through competence.
As a former consultant, I've witnessed companies that hire
expendable consultants for the sole purpose of continuing
business as usual. When the financial situation fails to improve,
the company blamed the consultant, hired an new consultant,
and repeated the cycle several times until a board of directors
either replaced senior management, or the worse case scenario
unfolded and the company went completely under.
The second quarter report can be accessed at:
http://tinyurl.com/2ga55ho
I'm not suggesting that to be the case here and I remain
hopeful that it is not. The next few quarters will tell all of us
whether or not Northstar can become a financially successful
not for profit institution. The economic success of the hospital
is important to our community.
Bill Vajk
Sunday, December 19, 2010
Monday, December 13, 2010
Data Mining and You
Even those of us who have been involved with
computers long before the general public
became aware of PS's and eventually purchased
one are occasionally surprised by the depth
of the invasion into our personal business
that computers have brought about.
Whose business do you think it is that you
buy certain prescriptions from your local
drug store?
In a recently decided Vermont case, represen-
tative of what's going on everywhere, it turns
out that by the mere act of having a prescription
filled, your information no longer belongs to
you, even if you paid for the product using
cash.
Insurance companies have always gathered
information.We expect that. But there's a
plethora of "data mining" that goes on with
pharmacy information.
Law enforcement regularly reviews the information.
If you are getting more pain controls than they
think appropriate, you're going to be investigated.
Fortunately I've found a non-narcotic medication
to control my back pain. But then, I never did
need enough to raise any eyebrows.
It doesn't end there.
Data mining companies buy the information from
your local pharmacy. It is sold to, among others,
drug manufacturers who then dispatch sales people
to visit your doctor. They're equipped with a full
listing of every prescription your doctor has
written, so they know what drugs to talk your
doctor into prescribing more!
If you're willing to dismiss this as another of
the paranoid "conspiracy theory" sorts of
articles, perhaps you want to take a look at
this court case recently decided in Vermont.
http://tinyurl.com/2eezxoj
"Big brother" isn't very far away.
Bill Vajk
computers long before the general public
became aware of PS's and eventually purchased
one are occasionally surprised by the depth
of the invasion into our personal business
that computers have brought about.
Whose business do you think it is that you
buy certain prescriptions from your local
drug store?
In a recently decided Vermont case, represen-
tative of what's going on everywhere, it turns
out that by the mere act of having a prescription
filled, your information no longer belongs to
you, even if you paid for the product using
cash.
Insurance companies have always gathered
information.We expect that. But there's a
plethora of "data mining" that goes on with
pharmacy information.
Law enforcement regularly reviews the information.
If you are getting more pain controls than they
think appropriate, you're going to be investigated.
Fortunately I've found a non-narcotic medication
to control my back pain. But then, I never did
need enough to raise any eyebrows.
It doesn't end there.
Data mining companies buy the information from
your local pharmacy. It is sold to, among others,
drug manufacturers who then dispatch sales people
to visit your doctor. They're equipped with a full
listing of every prescription your doctor has
written, so they know what drugs to talk your
doctor into prescribing more!
If you're willing to dismiss this as another of
the paranoid "conspiracy theory" sorts of
articles, perhaps you want to take a look at
this court case recently decided in Vermont.
http://tinyurl.com/2eezxoj
"Big brother" isn't very far away.
Bill Vajk
Friday, December 3, 2010
Sticker Shock
It was past time to buy new tires for the
snowplow truck. I always try to reward the
best service oriented businesses with
purchases. That means, in the case of tires,
that I will deal only with a firm that stocks
the items I need and that maintains a large
enough a staff to service all who come in
through the door without relying on making
an appointment for another day.
That's not the way things are done in Iron
County for tire sales. I don't accept a
restaurant requiring me to come back another
day when it is more convenient for them, or
a grocery store, or any other commodity
provider for that matter. I drop firms that
make such demands, and refuse to do business
with them.
If we reward those who provide the best service
on a regular basis, then the entire industry,
whatever it might be, has goals that the
providers can look at as targets. The entire
idea of accepting second best, for the
convenience of a businessman, is self-
defeating over the long haul. We can never
expect better service unless we demand it,
and enforce our demands.
I found that the prices were consist no matter
where I went, a number close to $800 for a
set of four tires, mounted, balances, new
valve stems, and installed. The dealer who
can't get to it till tomorrow because he
doesn't stock the item, or because he doesn't
maintain the manpower to do the installation
today, or whatever excuse he has, charges the
same as the dealer who not only inventories
the product you need but has the manpower
necessary to serve you within a reasonable
amount of time after you walk in his door.
That isn't right in so many ways.
I got my tires and came home thinking about the
experience and the price. President Obama had
announced in September of 2009 that a tariff
would be imposed on tires imported from China.
The first year was taxed at 35%, dropping after
a year to 30% and after 2 years to 25%.
Researching the effect this has had on employment,
the excuse for imposing the tariff, has proved
fruitless. The most recent real numbers I found
available are for 2008. According to the bureau
of labor statistics, there were 21,400 tire
builders employed in the USA and the projected
2008-18 employment change is that this number will
decline rapidly.
If any significant improvement had taken place in
the tire industry we'd certainly have heard about
it from our government a year and two months after
the tariff was imposed. There has been no report
of improvement, or even one of stability in the
industry. Instead the average prices have merely
increased across the board for tires by
approximately 20%.
That means that the on the tires I paid approximately
$800 for, I would have saved about $160 had I bought
them two in August 2009, not very long ago.
Unfortunately few of us outside the US Government
have the information available to determine the
overall effects this huge price increase has had on
us as a country. It seems that in the end, government
has achieved a windfall in taxation, and those
manufacturers who have not exported their high end
tire manufacturing to China have benefited. That
doesn't mean that they didn't ship some of their
manufacturing off shore, only that they didn't send
the work to China, the only country hit with this
tariff.
The odd thing is that the tire industry didn't complain
about jobs going overseas, it was the steel industry
unions that was losing employees as tire manufacturing
moved away.
And apparently it didn't do them any good.
China keeps growing as an industrial power because, at
this moment, they're competitive. In the case of the US
the converse is true, and that, unfortunately, is why
our economy is shrinking.
It is a shame I couldn't buy these tires in Iron County.
There's certainly some competition among our local
providers. But they're all "tomorrow" sales. Not one
is prepared to stand and deliver today with any regularity.
We can never get anything any better unless we demand it.
Bill Vajk
snowplow truck. I always try to reward the
best service oriented businesses with
purchases. That means, in the case of tires,
that I will deal only with a firm that stocks
the items I need and that maintains a large
enough a staff to service all who come in
through the door without relying on making
an appointment for another day.
That's not the way things are done in Iron
County for tire sales. I don't accept a
restaurant requiring me to come back another
day when it is more convenient for them, or
a grocery store, or any other commodity
provider for that matter. I drop firms that
make such demands, and refuse to do business
with them.
If we reward those who provide the best service
on a regular basis, then the entire industry,
whatever it might be, has goals that the
providers can look at as targets. The entire
idea of accepting second best, for the
convenience of a businessman, is self-
defeating over the long haul. We can never
expect better service unless we demand it,
and enforce our demands.
I found that the prices were consist no matter
where I went, a number close to $800 for a
set of four tires, mounted, balances, new
valve stems, and installed. The dealer who
can't get to it till tomorrow because he
doesn't stock the item, or because he doesn't
maintain the manpower to do the installation
today, or whatever excuse he has, charges the
same as the dealer who not only inventories
the product you need but has the manpower
necessary to serve you within a reasonable
amount of time after you walk in his door.
That isn't right in so many ways.
I got my tires and came home thinking about the
experience and the price. President Obama had
announced in September of 2009 that a tariff
would be imposed on tires imported from China.
The first year was taxed at 35%, dropping after
a year to 30% and after 2 years to 25%.
Researching the effect this has had on employment,
the excuse for imposing the tariff, has proved
fruitless. The most recent real numbers I found
available are for 2008. According to the bureau
of labor statistics, there were 21,400 tire
builders employed in the USA and the projected
2008-18 employment change is that this number will
decline rapidly.
If any significant improvement had taken place in
the tire industry we'd certainly have heard about
it from our government a year and two months after
the tariff was imposed. There has been no report
of improvement, or even one of stability in the
industry. Instead the average prices have merely
increased across the board for tires by
approximately 20%.
That means that the on the tires I paid approximately
$800 for, I would have saved about $160 had I bought
them two in August 2009, not very long ago.
Unfortunately few of us outside the US Government
have the information available to determine the
overall effects this huge price increase has had on
us as a country. It seems that in the end, government
has achieved a windfall in taxation, and those
manufacturers who have not exported their high end
tire manufacturing to China have benefited. That
doesn't mean that they didn't ship some of their
manufacturing off shore, only that they didn't send
the work to China, the only country hit with this
tariff.
The odd thing is that the tire industry didn't complain
about jobs going overseas, it was the steel industry
unions that was losing employees as tire manufacturing
moved away.
And apparently it didn't do them any good.
China keeps growing as an industrial power because, at
this moment, they're competitive. In the case of the US
the converse is true, and that, unfortunately, is why
our economy is shrinking.
It is a shame I couldn't buy these tires in Iron County.
There's certainly some competition among our local
providers. But they're all "tomorrow" sales. Not one
is prepared to stand and deliver today with any regularity.
We can never get anything any better unless we demand it.
Bill Vajk
Wednesday, December 1, 2010
Annual Discussion About Using Christmas in the Name
It is that time of year again. Iron River
will have its "Holiday in Lights" parade
on December 4th. The first year it was called
Christmas in Lights because the objector
wasn't around to quash Christmas in the name.
This year, using the internet, I searched
for communities in our region that use the
word Christmas in the names of their
celebrations. Here's that list I compiled,
doubtless one could find more:
Antigo Bessemer Boulder Junction
Crystal Falls Eagle River Florence
Iron Mountain Ironwood Ishpeming
Rhinelander St. Germain Tomahawk
Just goes to show that it can be done, all
that's necessary is wanting to. The question
is, why doesn't Iron River want to use
Christmas in the name of the celebration? Is
Iron River all that commercial?
Bill Vajk
will have its "Holiday in Lights" parade
on December 4th. The first year it was called
Christmas in Lights because the objector
wasn't around to quash Christmas in the name.
This year, using the internet, I searched
for communities in our region that use the
word Christmas in the names of their
celebrations. Here's that list I compiled,
doubtless one could find more:
Antigo Bessemer Boulder Junction
Crystal Falls Eagle River Florence
Iron Mountain Ironwood Ishpeming
Rhinelander St. Germain Tomahawk
Just goes to show that it can be done, all
that's necessary is wanting to. The question
is, why doesn't Iron River want to use
Christmas in the name of the celebration? Is
Iron River all that commercial?
Bill Vajk
Sunday, November 21, 2010
Michigan's Sacred Cow
The automobile industry has been Michigan's
sacred cow for a long time now. The "Big 3"
market share has been shrinking for a long
time, and it is past time that Michigan
recognize that we cannot afford to skate along
as a one major industry state any longer.
I find that David Littman's analysis of Michigan's
automobile economy is on target while the one from
The Center for Automotive Research has once again
taken a head in the sand political approach to
looking at economic problems.
Michigan had better get used to the idea that
either all large scale manufacturing will
eventually leave this state or right to work
will have to be implemented here. Political
imposition of will over investment capital
only works in the short term. Eventually
capital must flee when faced with such
restrictions as we see in Michigan today.
For those of us old enough to remember
John L. Lewis and the coal miners' union,
we're facing very similar problems here in
Michigan today. The mining industry wanted
some of the corporate profits to be spent on
research and development for new products
from coal to replace the heating demand that
was falling off because it was being replaced
by cleaner oil and natural gas. Lewis and the
union insisted that the workers get every
cent that was available, and that led to the
eventual demise of an entire industry.
Yes, the public always has to support, in
one way or another, the next generation of
industry.
Another alternative might be the unbridled
growth of industrial robots. As time has gone
on, such robots perform increasing percentage
of production jobs. It could come that an
entire automobile assembly plant might employ
a few dozen workers, with all the real work
of assembling cars done by robots.
Yes, taxation of such facilities would be
favorable for the state and local governments,
with lots of income and very few people
demanding services in exchange. But then
where would such equipment be built? China
perhaps?
Do we end up with legislated limits on
reproduction such as China has, and has
had for some time now?
We need people work. And to get that we need
rational growth of both industry and population.
Government bailouts, and subsidies, don't get
us there.
Please read the web page I refer to below. And
as you do, remember the TV commercials that had
Lee Iacocca standing in the foreground while
they imploded an obsolete manufacturing facility
in the background? The thinking in among our
government officials looks only so far as the
next election cycle. We need thinking for this
lifetime, and the next.
http://www.michigancapitolconfidential.com/14046
Bill Vajk
P.S. Taking a page out of Iacocca's book, Iron
River's Middle School should probably be
demolished. Are the local governments going to
keep coming back, hopeful of wearing down the
voters who have now spoken on the issue, and
harass us till we comply with their visions to
support a decrepit building (needs a new roof!)
that was built during the Great Depression some
80 years ago?
What of the vision that the voters have expressed?
It isn't as though there aren't enough vacant
buildings in Iron County to house such business
as are presently inhabiting the Middle School.
sacred cow for a long time now. The "Big 3"
market share has been shrinking for a long
time, and it is past time that Michigan
recognize that we cannot afford to skate along
as a one major industry state any longer.
I find that David Littman's analysis of Michigan's
automobile economy is on target while the one from
The Center for Automotive Research has once again
taken a head in the sand political approach to
looking at economic problems.
Michigan had better get used to the idea that
either all large scale manufacturing will
eventually leave this state or right to work
will have to be implemented here. Political
imposition of will over investment capital
only works in the short term. Eventually
capital must flee when faced with such
restrictions as we see in Michigan today.
For those of us old enough to remember
John L. Lewis and the coal miners' union,
we're facing very similar problems here in
Michigan today. The mining industry wanted
some of the corporate profits to be spent on
research and development for new products
from coal to replace the heating demand that
was falling off because it was being replaced
by cleaner oil and natural gas. Lewis and the
union insisted that the workers get every
cent that was available, and that led to the
eventual demise of an entire industry.
Yes, the public always has to support, in
one way or another, the next generation of
industry.
Another alternative might be the unbridled
growth of industrial robots. As time has gone
on, such robots perform increasing percentage
of production jobs. It could come that an
entire automobile assembly plant might employ
a few dozen workers, with all the real work
of assembling cars done by robots.
Yes, taxation of such facilities would be
favorable for the state and local governments,
with lots of income and very few people
demanding services in exchange. But then
where would such equipment be built? China
perhaps?
Do we end up with legislated limits on
reproduction such as China has, and has
had for some time now?
We need people work. And to get that we need
rational growth of both industry and population.
Government bailouts, and subsidies, don't get
us there.
Please read the web page I refer to below. And
as you do, remember the TV commercials that had
Lee Iacocca standing in the foreground while
they imploded an obsolete manufacturing facility
in the background? The thinking in among our
government officials looks only so far as the
next election cycle. We need thinking for this
lifetime, and the next.
http://www.michigancapitolconfidential.com/14046
Bill Vajk
P.S. Taking a page out of Iacocca's book, Iron
River's Middle School should probably be
demolished. Are the local governments going to
keep coming back, hopeful of wearing down the
voters who have now spoken on the issue, and
harass us till we comply with their visions to
support a decrepit building (needs a new roof!)
that was built during the Great Depression some
80 years ago?
What of the vision that the voters have expressed?
It isn't as though there aren't enough vacant
buildings in Iron County to house such business
as are presently inhabiting the Middle School.
Friday, November 19, 2010
Statistically Speaking
No place on earth can be reduced to a statistical
description, but statistics do tell us a lot about
a community.
Every once in a while I run across an interesting
web page about Iron County, and the one I'm pointing
the reader to is one of those. Knowing a little
about local government, you have to wonder where
they got some of those numbers.
Bill Vajk
description, but statistics do tell us a lot about
a community.
Every once in a while I run across an interesting
web page about Iron County, and the one I'm pointing
the reader to is one of those. Knowing a little
about local government, you have to wonder where
they got some of those numbers.
Bill Vajk
Wednesday, November 10, 2010
Non-Legal Retribution
On Saturday I filed a motion in the Federal
District Court at Marquette, Michigan. It would
probably be inappropriate for me to comment about
it while the case is before the Court, but I can
share the document with the readers because it
is, after all, a public document and by now all
the parties should have received their copy.
The document may be viewed pasting the following
URL into your browser search line.
www.angelfire.com/planet/iron-river/stay-doc.pdf
Bill Vajk
District Court at Marquette, Michigan. It would
probably be inappropriate for me to comment about
it while the case is before the Court, but I can
share the document with the readers because it
is, after all, a public document and by now all
the parties should have received their copy.
The document may be viewed pasting the following
URL into your browser search line.
www.angelfire.com/planet/iron-river/stay-doc.pdf
Bill Vajk
Saturday, November 6, 2010
Another Real Estate Tax Issue
Another issue relating to real estate taxes in
Michigan has been brought to my attention.
State statute relating to one aspect, public
utilities, was ruled on by the Michigan State
Supreme Court on February 5, 2008 in a case
called "Toll Northville Ltd v. Township of
Northville" 734 N.W.2d 902.
State statute MCL 211.34d(1)(b)(vii) reads:
"(viii) Public services. As used in this
subparagraph, "public services" means water
service, sewer service, a primary access road,
natural gas service, electrical service,
telephone service, sidewalks, or street
lighting. For purposes of determining the
taxable value of real property under section
27a, the value of public services is the
amount of increase in true cash value of the
property attributable to the available public
services multiplied by 0.50 and shall be added
in the calendar year following the calendar
year when those public services are initially
available."
The statute can be found at:
http://tinyurl.com/3yknqcx
The Supreme Court held:
"Because public-service improvements located
on public, easements or land that ultimately
becomes public do not constitute 'additions,'
as that term was understood when Proposal A
was enacted, we affirm the judgment of the
Court of Appeals that MCL 211.34d(1)(b)(viii)
is unconstitutional."
The court's opinion may be found at:
http://tinyurl.com/32g8nan
Are most of the properties in the State of Michigan
appraised too high as a result of this court verdict?
Bill Vajk
Michigan has been brought to my attention.
State statute relating to one aspect, public
utilities, was ruled on by the Michigan State
Supreme Court on February 5, 2008 in a case
called "Toll Northville Ltd v. Township of
Northville" 734 N.W.2d 902.
State statute MCL 211.34d(1)(b)(vii) reads:
"(viii) Public services. As used in this
subparagraph, "public services" means water
service, sewer service, a primary access road,
natural gas service, electrical service,
telephone service, sidewalks, or street
lighting. For purposes of determining the
taxable value of real property under section
27a, the value of public services is the
amount of increase in true cash value of the
property attributable to the available public
services multiplied by 0.50 and shall be added
in the calendar year following the calendar
year when those public services are initially
available."
The statute can be found at:
http://tinyurl.com/3yknqcx
The Supreme Court held:
"Because public-service improvements located
on public, easements or land that ultimately
becomes public do not constitute 'additions,'
as that term was understood when Proposal A
was enacted, we affirm the judgment of the
Court of Appeals that MCL 211.34d(1)(b)(viii)
is unconstitutional."
The court's opinion may be found at:
http://tinyurl.com/32g8nan
Are most of the properties in the State of Michigan
appraised too high as a result of this court verdict?
Bill Vajk
Monday, November 1, 2010
Midterm Election
There's a midterm election tomorrow. Please
vote. Conservatively speaking, it's the right
thing to do!
It wasn't that long ago that a large portion of
the population in Iron County was riled up and
involved in a recall petition. Wouldn't you think
that for this election the same people would have
candidates all lined up and running for offices?
I haven't seen a sample ballot for this election.
Most places I've lived the newspapers published
them about a week in advance. No such luck here.
So most folks are going to the polls with no idea
about who to elect other than to vote a straight
party ticket and go home for two years.
"If we don't get the millage we asked for, our
municipality will be broke!" That's the news that's
fit to print in this part of the United States.
I guess it is time that the "Taxpayer's Association"
be resurrected, along with the "Upper Peninsula Better
Government Association" in order to foster some
badly needed changes in Iron County. The primary
purpose of these two groups will be to work over
the next two years in order to have no less than
two candidates for every elective post. Both of these
organizations are registered with the Iron County
Clerk, it only takes interest by a few to get them
going. We're not interested in political parties
at all. Each group will accept any political
persuasion so long as there is an interest in filling
all the open spaces on our ballots.
The person who is assured that they will keep their
job no matter how badly they perform always makes for
a lousy employee! That's today's political situation
here in Iron County.
Look at the City of Iron River. The most recent
addition to the City Council couldn't even achieve a
simple majority of the available votes, that is to
say, 15 votes in a city like Iron River. Personally
I'd be ashamed to take that seat, and I would leave
it vacant! But apparently we don't have to worry
about personal pride among our elected representatives.
In any event, the two groups will start on November 3,
2010, with all the hopes that such groups can muster.
I've been quiet with this publication of late. Our
federal lawsuit has been taking some of my time, and
at this stage, with one exception in the next few days,
silence about matters has seemed appropriate. My
apologies to the readers for my preoccupation, but
please bear in mind that this lawsuit itself was
designed to have broader ranging effects. Readiness
to serve fees on water bills are widely utilized by
governments in the Upper Peninsula. Services such
as water, sewer, and trash are the few areas in
which municipalities can, for the most part, skirt
around the Headlee Amendment and Proposition A
which restrict the availability of funds to local
governments.
Can we maintain the financial grip on government
growth that those two people's mandates have imposed?
Bearing in mind the conservative bent that the people
of the state had when imposing those restrictions, how
is it that political mindsets intent on growing large
governments have managed to take over this state at
almost every level?
It is past time to have these discussions, and as our
president says, to get "fired up!" We need to get
fired up locally. Candidates with a fire in their
belly to improve the situation are being sought, but
so far by not enough people. That's what we need to
do, to gather a group that's set to better our community.
My email is bill.vajk@gmail.com
I'd like to hear from you on these matters.
Bill Vajk
vote. Conservatively speaking, it's the right
thing to do!
It wasn't that long ago that a large portion of
the population in Iron County was riled up and
involved in a recall petition. Wouldn't you think
that for this election the same people would have
candidates all lined up and running for offices?
I haven't seen a sample ballot for this election.
Most places I've lived the newspapers published
them about a week in advance. No such luck here.
So most folks are going to the polls with no idea
about who to elect other than to vote a straight
party ticket and go home for two years.
"If we don't get the millage we asked for, our
municipality will be broke!" That's the news that's
fit to print in this part of the United States.
I guess it is time that the "Taxpayer's Association"
be resurrected, along with the "Upper Peninsula Better
Government Association" in order to foster some
badly needed changes in Iron County. The primary
purpose of these two groups will be to work over
the next two years in order to have no less than
two candidates for every elective post. Both of these
organizations are registered with the Iron County
Clerk, it only takes interest by a few to get them
going. We're not interested in political parties
at all. Each group will accept any political
persuasion so long as there is an interest in filling
all the open spaces on our ballots.
The person who is assured that they will keep their
job no matter how badly they perform always makes for
a lousy employee! That's today's political situation
here in Iron County.
Look at the City of Iron River. The most recent
addition to the City Council couldn't even achieve a
simple majority of the available votes, that is to
say, 15 votes in a city like Iron River. Personally
I'd be ashamed to take that seat, and I would leave
it vacant! But apparently we don't have to worry
about personal pride among our elected representatives.
In any event, the two groups will start on November 3,
2010, with all the hopes that such groups can muster.
I've been quiet with this publication of late. Our
federal lawsuit has been taking some of my time, and
at this stage, with one exception in the next few days,
silence about matters has seemed appropriate. My
apologies to the readers for my preoccupation, but
please bear in mind that this lawsuit itself was
designed to have broader ranging effects. Readiness
to serve fees on water bills are widely utilized by
governments in the Upper Peninsula. Services such
as water, sewer, and trash are the few areas in
which municipalities can, for the most part, skirt
around the Headlee Amendment and Proposition A
which restrict the availability of funds to local
governments.
Can we maintain the financial grip on government
growth that those two people's mandates have imposed?
Bearing in mind the conservative bent that the people
of the state had when imposing those restrictions, how
is it that political mindsets intent on growing large
governments have managed to take over this state at
almost every level?
It is past time to have these discussions, and as our
president says, to get "fired up!" We need to get
fired up locally. Candidates with a fire in their
belly to improve the situation are being sought, but
so far by not enough people. That's what we need to
do, to gather a group that's set to better our community.
My email is bill.vajk@gmail.com
I'd like to hear from you on these matters.
Bill Vajk
Tuesday, October 19, 2010
Blue Cross in Michigan
In a copyrighted article, the Washington Post
yesterday reported:
"The federal government sued Michigan's largest
health insurer Monday, alleging it abused its
market clout to inflate health-care costs and
impede competition.
"The government alleged that Blue Cross Blue
Shield of Michigan negotiated contracts that
prohibited hospitals from granting deeper
price discounts to other insurers."
The complete article can be found at:
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/18/AR2010101805257.html?wprss=rss_business
For less typing, use:
http://tinyurl.com/24j9wj4
Bill Vajk
yesterday reported:
"The federal government sued Michigan's largest
health insurer Monday, alleging it abused its
market clout to inflate health-care costs and
impede competition.
"The government alleged that Blue Cross Blue
Shield of Michigan negotiated contracts that
prohibited hospitals from granting deeper
price discounts to other insurers."
The complete article can be found at:
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/18/AR2010101805257.html?wprss=rss_business
For less typing, use:
http://tinyurl.com/24j9wj4
Bill Vajk
Saturday, October 16, 2010
Iron River Township - Sewer Availability Fee
In recent times, Iron River Township began charging
a fee to all township properties where it appears
that there is a building within 200 feet of an
existing sewer. They have claimed that the authority
for this lies in state law. Please see MCL 333.12757
However, in the case Smith v. Township of Norton,
138 N.W.2d 522 (1965), the court held that:
"Anyone using the services of the township water
system by implication contracts to pay the rates
including charges, fees, and rentals. To charge
nonusers for services made available by its presence
without regard to whether any use is made of the
service or facility is in legal effect a tax and
can be effected only by complying with the statutory
requirements and not by creation of a charge within
the rate structure of the public service."
The facts are the same despite that in Iron River
Township's case the pipe holds sewage instead of
potable water. In short, in my layman's opinion,
Iron River Township must provide all the approvals
required for taxing those who own a building within
close proximity to an existing sewer and comply
with the mandates of the Hadlee Amendment to the
Michigan Constitution in order to charge them for
an "availability of sewer."
Bill Vajk
a fee to all township properties where it appears
that there is a building within 200 feet of an
existing sewer. They have claimed that the authority
for this lies in state law. Please see MCL 333.12757
However, in the case Smith v. Township of Norton,
138 N.W.2d 522 (1965), the court held that:
"Anyone using the services of the township water
system by implication contracts to pay the rates
including charges, fees, and rentals. To charge
nonusers for services made available by its presence
without regard to whether any use is made of the
service or facility is in legal effect a tax and
can be effected only by complying with the statutory
requirements and not by creation of a charge within
the rate structure of the public service."
The facts are the same despite that in Iron River
Township's case the pipe holds sewage instead of
potable water. In short, in my layman's opinion,
Iron River Township must provide all the approvals
required for taxing those who own a building within
close proximity to an existing sewer and comply
with the mandates of the Hadlee Amendment to the
Michigan Constitution in order to charge them for
an "availability of sewer."
Bill Vajk
Tuesday, October 5, 2010
Better Information
I’ve previously gone on record favoring a new
airport for Iron County, however I can only
support the current proposal if there's a
reasonable economic justification for it.
There’s a newly surfaced rumor that there
are commitments from large corporations and
the pilot's association to pick up the
County’s "match money." Let's have a full
disclosure of the complete story, and trot
out enforceable contracts if they exist. What
of the longer term? Who is destined to pay
security and maintenance for a new airport?
I’d like to see a ripe proposal before
county commitment is made, wouldn't you?
Any place I've lived before moving to Iron
County the travel time to the nearest airport
has been from one to three hours and the
scenery en route has definitely not been as
pretty as it is here. It seems to me that
the real problem is that our local officials
are tired of ferrying economically important
guests to and from the airport at Kingsford
and spending the day with them.
Do the plans for the new airport include
opening manned Chamber of Commerce and the
Economic Development offices next to an
airport security office? Is the addition
of sheriff’s deputies, and equipment,
included in planning and budgeting? Can Iron
County really afford everything this big
beautiful airport entails? Have we gotten
10 people required to hanger their planes
at Iron County to sign lease commitments for
hanger space? Please show me, so I can
believe that the proposed project will
benefit all of us. I want to get behind
those already supporting this project. I
like growth for the County. But general
promises lacking substance aren’t enough to
help me sleep well at night.
This airport project has been in the
background for years. Why isn't more complete
information available? Is it because the
pressure that's coming from the few plane
owners is being poorly answered by the county
rather than our crony network learning to say
"no!"?
Or are our appointed officials simply
representatives of a cargo cult mentality in
Iron County?
"A cargo cult is a religious practice that has
appeared in many traditional tribal societies
in the wake of interaction with technologically
advanced cultures. The cults focus on obtaining
the material wealth (the 'cargo') of the advanced
culture through magic and religious rituals and
practices."
http://en.wikipedia.org/wiki/Cargo_cult
Another thought on the matter has long been
expressed by the adage, "If wishes were horses,
beggars would ride."
How is a county that can't afford a new public
service vehicle without a receiving a grant going
to provide ongoing support for an airport that
will only be used by a handful of wealthier
individuals? If the county, through our Economic
Development Corporation, manages to round up 10
individuals who actually want to hanger their
airplanes here, why not encourage those 10 to
pony up an build their own airport as an investment
in the community?
After all, Iron County doesn't own any aircraft!
Bill Vajk
airport for Iron County, however I can only
support the current proposal if there's a
reasonable economic justification for it.
There’s a newly surfaced rumor that there
are commitments from large corporations and
the pilot's association to pick up the
County’s "match money." Let's have a full
disclosure of the complete story, and trot
out enforceable contracts if they exist. What
of the longer term? Who is destined to pay
security and maintenance for a new airport?
I’d like to see a ripe proposal before
county commitment is made, wouldn't you?
Any place I've lived before moving to Iron
County the travel time to the nearest airport
has been from one to three hours and the
scenery en route has definitely not been as
pretty as it is here. It seems to me that
the real problem is that our local officials
are tired of ferrying economically important
guests to and from the airport at Kingsford
and spending the day with them.
Do the plans for the new airport include
opening manned Chamber of Commerce and the
Economic Development offices next to an
airport security office? Is the addition
of sheriff’s deputies, and equipment,
included in planning and budgeting? Can Iron
County really afford everything this big
beautiful airport entails? Have we gotten
10 people required to hanger their planes
at Iron County to sign lease commitments for
hanger space? Please show me, so I can
believe that the proposed project will
benefit all of us. I want to get behind
those already supporting this project. I
like growth for the County. But general
promises lacking substance aren’t enough to
help me sleep well at night.
This airport project has been in the
background for years. Why isn't more complete
information available? Is it because the
pressure that's coming from the few plane
owners is being poorly answered by the county
rather than our crony network learning to say
"no!"?
Or are our appointed officials simply
representatives of a cargo cult mentality in
Iron County?
"A cargo cult is a religious practice that has
appeared in many traditional tribal societies
in the wake of interaction with technologically
advanced cultures. The cults focus on obtaining
the material wealth (the 'cargo') of the advanced
culture through magic and religious rituals and
practices."
http://en.wikipedia.org/wiki/Cargo_cult
Another thought on the matter has long been
expressed by the adage, "If wishes were horses,
beggars would ride."
How is a county that can't afford a new public
service vehicle without a receiving a grant going
to provide ongoing support for an airport that
will only be used by a handful of wealthier
individuals? If the county, through our Economic
Development Corporation, manages to round up 10
individuals who actually want to hanger their
airplanes here, why not encourage those 10 to
pony up an build their own airport as an investment
in the community?
After all, Iron County doesn't own any aircraft!
Bill Vajk
Sunday, October 3, 2010
Status of Federal Lawsuit
Our personal federal lawsuit brought complaining of the
Michigan Municipal League, The City of Iron River, and
County of Iron, Michigan is progressing.
All the documents to date are on the internet in two
places, one is at the PACER files in the federal court
system, the other files, put on the internet by the
undersigned, are listed below.
Please copy the url addresses below in order to read the
relevant documents. I have placed them in alphabetical
order.
www.angelfire.com/planet/iron-river/complaint.doc
www.angelfire.com/planet/iron-river/county-dismiss.pdf
www.angelfire.com/planet/iron-river/error-motion.pdf
www.angelfire.com/planet/iron-river/ir-mot_dismiss.pdf
www.angelfire.com/planet/iron-river/mml-mot_dismiss.pdf
www.angelfire.com/planet/iron-river/plaintiff-answers.pdf
www.angelfire.com/planet/iron-river/plaintiff-judgment-on-pleadings.pdf
Bill Vajk
Michigan Municipal League, The City of Iron River, and
County of Iron, Michigan is progressing.
All the documents to date are on the internet in two
places, one is at the PACER files in the federal court
system, the other files, put on the internet by the
undersigned, are listed below.
Please copy the url addresses below in order to read the
relevant documents. I have placed them in alphabetical
order.
www.angelfire.com/planet/iron-river/complaint.doc
www.angelfire.com/planet/iron-river/county-dismiss.pdf
www.angelfire.com/planet/iron-river/error-motion.pdf
www.angelfire.com/planet/iron-river/ir-mot_dismiss.pdf
www.angelfire.com/planet/iron-river/mml-mot_dismiss.pdf
www.angelfire.com/planet/iron-river/plaintiff-answers.pdf
www.angelfire.com/planet/iron-river/plaintiff-judgment-on-pleadings.pdf
Bill Vajk
Wednesday, September 29, 2010
Iron County People's Voice-page 2
I received an reply from Mr. Mark Eakin, the General
Manager at WIKB, that is worthy of being shared.
I am engaged in a federal lawsuit with the City of Iron River,
the County of Iron, and the Michigan Municipal League as
defendants. I am doing all the work on that suit, I have no
lawyers on my team. While I am doing this lawsuit for me,
I am also doing it for everyone who lives in Iron County.
Since all the documents in lawsuits are a matter of public
record anyway, I'll be making all the pleadings in my lawsuit
available online over the next few days. Or you could go to
PACER, which is a courts web page and read it, but there's a
charge involved to each person for that service.
Right now, I've submitted my papers for this go-round, and
have a brief period of peace and quiet, so here I am
working on current issues. The "new county airport" needs
more discussion. Do you want to pay taxes for the maintenance
that airport will require forever in the future? Will you have
any personal use out of it? Can it actually ever improve the
local economy? Or is it just a plaything for a few rich folks
to have the convenience of flying in and out with a shorter
drive to reach destinations in Iron County maintained at your
expense?
I'm not asking anyone else to get quite so heavily involved
as I am, but there's no reason why we can't get some
newsletter and perhaps a monthly, or at least a quarterly
meeting started for folks to formalize their gripes with the
government, and present their ideas of potential solutions.
Please send me email if you have some ideas about creating
a mechanism for the population at large to be heard, and
don't be shy, volunteer if you are able. I promise that if this
thing, whatever it becomes, gets off the ground, nobody will
be asked to donate any more time than you're comfortable
with. You should be aware that we can create a series of
television programs and have the cable providers air them
on the required local access channels, but that sees a highly
limited viewership. Nevertheless it could be a starting point.
And DVD copies are quite cheap as a method of distribution,
cheaper even than print copy.
On the other hand, if you're happy with the way things are,
send me email about that.
My email address is at the top of the page.
Bill Vajk
Manager at WIKB, that is worthy of being shared.
"I read your Iron County Doings, thank you for the copy
and for listening. Telephone Time has never to the best
of my knowledge accepted any political talk, candidates
are not allow to advertise doing that time nor do we
speak about issues. The main reason for this is because
we would be swamped and would not have time to put
items on the air or for people looking for items nor our
regular advertisers. Plus those that did not get on would
claim we did not let them on purpose. It would be a no win
situation for us. Our AM station 1230 is talk radio and we
hope to in the near future put a local show on that these
issues can be discussed.
and for listening. Telephone Time has never to the best
of my knowledge accepted any political talk, candidates
are not allow to advertise doing that time nor do we
speak about issues. The main reason for this is because
we would be swamped and would not have time to put
items on the air or for people looking for items nor our
regular advertisers. Plus those that did not get on would
claim we did not let them on purpose. It would be a no win
situation for us. Our AM station 1230 is talk radio and we
hope to in the near future put a local show on that these
issues can be discussed.
"Thank you again for the copy, I did enjoy reading it.
"Mike Eakin CRMC RMA
General Manager
WIKB 99.1fm WFER 1230am
Iron River Mi."
WIKB cannot be faulted for the position they take, a
position that was easily predictable. The owners have
invested money and can legitimately expect a return
on their investment, and to be sure, a small station in
a sparsely populated region doesn't have the sorts of
return that a similar station in a densely populated
region can achieve for a similar investment.
They're doing the best they can, and we cannot expect
them to give voice to the community's needs any more
than the Iron County Reporter does. I wouldn't hold my
breath for call in political discussions on the AM radio side
of the operation. I take Mr. Eakin's prediction to be more
about discussions about Medicare and so forth by
"experts" in the field, not our local population because
the exact same management views that he expressed
about Telephone Time apply on the AM station.
So the question, and the challenge for the community is,
do enough people want a voice in what happens to all of
us enough to do something positive about it?
Those of us who have been doing a lot of the pulling in
this community are tired of being out there alone with no
support or backup except for rare occasions. If we can
interest enough people, no one will have to carry a large
burden. But it takes the sorts of numbers that only rarely
come together in Iron County for some single issue that
infuriates many people.
I've been relatively silent for the past few weeks becauseGeneral Manager
WIKB 99.1fm WFER 1230am
Iron River Mi."
WIKB cannot be faulted for the position they take, a
position that was easily predictable. The owners have
invested money and can legitimately expect a return
on their investment, and to be sure, a small station in
a sparsely populated region doesn't have the sorts of
return that a similar station in a densely populated
region can achieve for a similar investment.
They're doing the best they can, and we cannot expect
them to give voice to the community's needs any more
than the Iron County Reporter does. I wouldn't hold my
breath for call in political discussions on the AM radio side
of the operation. I take Mr. Eakin's prediction to be more
about discussions about Medicare and so forth by
"experts" in the field, not our local population because
the exact same management views that he expressed
about Telephone Time apply on the AM station.
So the question, and the challenge for the community is,
do enough people want a voice in what happens to all of
us enough to do something positive about it?
Those of us who have been doing a lot of the pulling in
this community are tired of being out there alone with no
support or backup except for rare occasions. If we can
interest enough people, no one will have to carry a large
burden. But it takes the sorts of numbers that only rarely
come together in Iron County for some single issue that
infuriates many people.
I am engaged in a federal lawsuit with the City of Iron River,
the County of Iron, and the Michigan Municipal League as
defendants. I am doing all the work on that suit, I have no
lawyers on my team. While I am doing this lawsuit for me,
I am also doing it for everyone who lives in Iron County.
Since all the documents in lawsuits are a matter of public
record anyway, I'll be making all the pleadings in my lawsuit
available online over the next few days. Or you could go to
PACER, which is a courts web page and read it, but there's a
charge involved to each person for that service.
Right now, I've submitted my papers for this go-round, and
have a brief period of peace and quiet, so here I am
working on current issues. The "new county airport" needs
more discussion. Do you want to pay taxes for the maintenance
that airport will require forever in the future? Will you have
any personal use out of it? Can it actually ever improve the
local economy? Or is it just a plaything for a few rich folks
to have the convenience of flying in and out with a shorter
drive to reach destinations in Iron County maintained at your
expense?
I'm not asking anyone else to get quite so heavily involved
as I am, but there's no reason why we can't get some
newsletter and perhaps a monthly, or at least a quarterly
meeting started for folks to formalize their gripes with the
government, and present their ideas of potential solutions.
Please send me email if you have some ideas about creating
a mechanism for the population at large to be heard, and
don't be shy, volunteer if you are able. I promise that if this
thing, whatever it becomes, gets off the ground, nobody will
be asked to donate any more time than you're comfortable
with. You should be aware that we can create a series of
television programs and have the cable providers air them
on the required local access channels, but that sees a highly
limited viewership. Nevertheless it could be a starting point.
And DVD copies are quite cheap as a method of distribution,
cheaper even than print copy.
On the other hand, if you're happy with the way things are,
send me email about that.
My email address is at the top of the page.
Bill Vajk
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