Archive for September, 2009

VNet Failure Reveals Poor Governance By Council

Monday, September 28th, 2009

It is ironic to hear local candidates assail national politicians for lack of accountability while they themselves have explaining to do. All but one incumbent councilman now running for Mayor foolishly voted down a proposal to allow the subsidy to vNet but require the company or its owner to return ALL the funds if they failed to meet their obligations under the agreement.

In retrospect, the vote was a foolish partisan move to not support Councilman Kent Solt and instead follow the flawed advice of Loveland City Manager Don Williams. Read the LovelandPolitics.com story. For the record, LovelandPolitics does not support corporate welfare especially when it goes to friends and contributors of members of the council. Being “pro-business” should mean removing government barriers to free enterprise and creating the best value for government services instead of choosing winners and losers by gifting tax dollars to private entities.

Like so many other issues that come before Loveland’s City Council, the $900,000 subsidy approved for vNet was a done deal and the public meeting a charade. The seven McWhinneycrats on Loveland’s council did in early March of 2008 what they have become accustomed to doing so often on other issues – not fully read their packet of information before the meeting but instead follow the city manager’s advice.

Unprepared for a debate on the merits of a proposal they appeared not to fully understand the council made a terrible error. The seven McWhinneycrats (Pielin, Klassen, Johnson, Skowron, Rousey, Heckle and Clark) voted for who they knew instead of WHAT they knew.

Despite warnings by Councilman Kent Solt that vNet CEO and majority owner, William Beierwaltes, failed previously and didn’t have the history of unprecedented success being represented to council – they voted down Solt’s amendment to make Beierwaltes and his company accountable to the full amount of the subsidy instead of just part of it. Solt’s independent research was ignored in favor of city staff advice.

This time their inability to understand what they were voting against and act in the city’s best interest may cost taxpayers $500,000. At a time when employees are being let go, parks closed early and routine maintenance to city facilities deferred for lack of funds this ineptitude is unpardonable.

Caution must be taken when candidates like Bob Snyder, now looking to fill a seat on the council, represent themselves as “pro-business” yet appear to understand little or nothing about the actual incentives the city has handed out. What Loveland needs are people willing to be good custodians of taxpayer dollars that show an interest in the details of what they vote on instead of blindly following Don Williams.

The difference we see in the 7-2 vote on this matter was not one of philosophy but instead sophistication. Walt Skowron, often a detractor himself from the majority, made it clear he was voting to give the city subsidy to a friend which should have been a red flag. The only other possible explanation for the others not making vNet fully accountable is they met in advance with Beierwaltes and had already agreed to vote for the subsidy as proposed by staff.

Loveland’s City Council wants to act like venture capitalists with other people’s money but are unwilling to perform the necessary due diligence before investing. City Manager Don Williams lacks even the minimum educational qualifications to be a city manager in any other city in Colorado let alone be an investment adviser. We know this website has been attacked for being too rough on locally elected officials. Sometimes it appears we were not rough enough in describing their absolute negligence that has lead to this debacle and potential loss of half a million dollars of Loveland taxpayer’s money to a failed business venture.

Can anyone explain what their possible defense might be for such a costly blunder as the campaign goes on?

Mayoral Debate

Wednesday, September 23rd, 2009

We received several emails asking if we noticed that Glenn Rousey is reading Walt Skowron’s notes while Skowron is speaking in the debate picture on our homepage. No, nobody here noticed it before your emails but now that you mention it that does appear to be what he is doing.

The candidates forum failed to ask any specific questions about the current employee lay-offs, city budget cuts or solicit differences from the candidates on how they would handle specific problems in city hall. Instead the general questions about regionalism, growth and others solicited general answers which made the forum a yawner for the first half. Once the candidates were allowed to ask each other questions the audience attention and interest clearly peaked.

All the candidates did fairly well but Dave Clark hit the biggest faux pas of the evening when explaining his vote for Don William’s golden nest egg (see story on LovelandPolitics regarding the issue). Clark first said he voted NO because…..only to be corrected by his colleagues that he voted for it. He acknowledged voting for it when corrected than explained why it wasn’t a good idea. According to Walt Skowron who voted against it, Clark once admitted his own company would never provide an employee full-time medical benefits until retirement if they decided to quit their job early. Thus Skowron asked the question of why people spend money on the council they never would if it were their own dollars.

The forum appeared well organized and the candidates seemed congenial to one another. Alexi Grewal offered to bring a Lance Armstong event to Loveland if elected while Glenn Rousey listed his membership in MENSA as a qualification to be elected mayor. Walt Skowron focused heavily on national issues that the Mayor of Loveland will not likely be expected to solve while Cecil Gutierrez talked about the need for greater transparency and more opportunities for public comment.

Most of the forum was captured by audio that can be accessed from our home page. What are your comments on the evening if you attended? Picking a winner of the debate is difficult so we would appreciate your vote on who you believe won.

Thanks

Loveland Election Update

Thursday, September 17th, 2009

Following a terrible bout with the flu and another recent personal problem, candidate Carl Fritz officially backed out of his race for a seat on Loveland’s City Council representing the city’s Ward 4.

Fritz told LovelandPolitics, “It is a lousy job for only $600 per month” in connection to his complaints of being deluged with inquiries from various interest groups after declaring his candidacy. He said the Loveland-Berthoud Board of Realtors approached him hours after he filed his candidacy. Fritz also said the woman who contacted him promised her board has “funds to support candidates” who they find agreeable.

Other News -

Councilwoman Carol Johnson is working behind the scenes to support David Clark’s run for Mayor but may very quickly become a liability instead of an asset. After lashing out against city volunteers working on Loveland’s Historic Preservation Commission see story she is now trying to appeal to age discrimination to boost her choice of David Clark for the Mayor’s race according to two sources. She has complained about the age of the other candidates and how she has tired of “being around really old men” on city council.

David Clark “begs” Skowron to Quit Run For Mayor

A week ago last Sunday, Loveland Mayor Pro Tem David Clark appeared at Councilman Skowron’s doorstep to discuss the race for Mayor of Loveland. Both men are members of Loveland’s City Council and both are running for Mayor. For his part, Skowron has told supporters he stood his ground and refused to drop out of the race no matter how much Clark begged him to get out of the race.

An interesting split in the “Old Guard” cabal has been the fact three councilors (Skowron, Clark and Rousey) are all running against one another for Mayor. Clark has long demonstrated a certain lack of respect for Skowron at council meetings and would often tangle with him even on issues where they agreed as Clark thought Skowron asked many inane questions.

Insufficient Funds For I-25/US 34 Interim Improvements

Tuesday, September 15th, 2009

In 2004 the McWhinney organization agreed to fund $12.5 million of the tax dollars their Centerra Metro Districts would receive to make certain upgrades to the I-25/US 34 interchange by 2010 and 14 years later fund the “final” larger improvement for over $20 million.

The City of Loveland kept its part of the bargain and McWhinney received governmental taxing authority for their special districts for 25 years of future property taxes (TIF) and sales taxes at a projected value of nearly $700 million. Using this authority, McWhinney’s entity borrowed $112 million through floating interest rate municipal bonds that now need to be repaid.

City staff, in apparent collaboration with McWhinney, are now urging the council to only award the lower cost “safety only” improvements for interchange of $ 8 million to free the remaining funds for other uses by the Centerra Metro Districts. On the chopping block is the upgrade to the bridge and landscaping improvements that were part of the Inter Governmental Agreement.

“Michael” and others have blasted this website for tagging some candidates as “McWhinneycrats” capable of agreeing to just about any whim or fancy McWhinney requests.

Now is their chance to prove us right or wrong. Hardly one month ago EVERY member of Loveland’s council voted to move $490,000 out of the I-25/US 34 improvement monies because the estimate, according to staff, were coming lower than expected and the money would not be required. Had council stuck to their guns and preserved the original $12.5 million promised there wouldn’t be an issue in completing the project as agreed.

Today the project cannot go forward because that money is gone and it has only some $11 million and change. Incredibly, McWhinney is lobbying council to allow them to strip away any landscape or bridge improvements and just provide the pavement essentially for safety due to the shortfall.

In an effort to distort the record, previous attempts by council to question the high cost of landscaping maintenance on the project is being used to argue the city didn’t want the landscaping anyway. In fact, the city argued only about a proposal to share the cost of landscaping with the Centerra Metro District.

McWhinney is looking to spend the least amount possible to complete the “Regional Transportation” requirement in their agreement with the City of Loveland thus allowing their Metro District to borrow even more money at the public’s expense. Arguments by staff that the changing economic situation necessitates the change in scope on the project are specious at best. In 2008 after the economy was already “bad” McWhinney borrowed another $60 million (now $ 112 all together) for the stated purpose of funding just this improvement.

If the regional transportation improvements were being funded entirely from current revenues the argument that the economy’s woes creates an impediment would hold water as funds for the improvement would not be available due to lower tax revenues. Instead, those monies were put aside from the debt for the purpose of funding not only the safety improvements but the landscaping and bridge improvements as well as reflected in the Inter-Governmental Agreement between the City of Loveland and McWhinney’s Centerra Metro District.

The point is McWhinney proposes spending the debt dollars whether or not the improvements are realized thus creating an equal burden to the Metro District’s obligation to collect taxes and repay the debt. Nothing in the “safety” only improvements proposal mitigates the potential impact of the ailing economy on the Metro District. What likely will change is McWhinney’s profit and ability to continue using the public monies of the Metro District as a kind of “slush fund” for their special projects instead of the promised regional transportation improvements agreed to with the city.

see LovelandPolitics.com story along with the legal documents and contradictory staff memos to council.

The vote this evening will be an excellent opportunity to sort out who on council is acting on behalf of the city’s interest by enforcing signed agreements and who is simply sitting on the dais on McWhinney’s behalf.

LovelandPolitics — Position On The Lodging Tax

Thursday, September 10th, 2009

Loveland voters are being asked now for a third time whether a “lodging tax” should be imposed on anyone staying in temporary housing in Loveland. Loveland’s City Council narrowly passed a measure in late August to place the proposed tax on Loveland’s November 3, 2009 municipal ballot. The election will be conducted by mail.

Read the LovelandPolitics.com story from when it was approved by council.

The lodging tax imposes a 3% tax on the cost of any accommodations within Loveland city limits for people renting housing for any period less than 30 days.

The ballot language claims the tax will raise $400,000 annually that will be used by Loveland “FOR THE PURPOSE OF RAISING FUNDS TO PROMOTE TOURISM, CONVENTIONS AND RELATED ACTIVITIES WITHIN THE CITY BY MARKETING THE CITY.”

We oppose the ballot measure because it is built upon a false premise perpetuated regularly by this city council majority.

The false premise is that every new revenue source is simply “profit” for the city. As proposed, the lodging tax can be used only to promote Loveland through public relations campaigns while the critical government services don’t have enough funds today to expand commensurate with our city’s growing population.

Mayor Gene Pielin said he wants to see a fancy advertising campaign in his favorite travel magazine for Loveland while other advocates on council plan to steer the money into Loveland’s Chamber of Commerce visitor’s center.

Local governments derive their taxing authority from the state’s “police powers” and are required by law to use the power to collect and spend taxes only for the purpose of promoting the health, welfare and safety of the community. The proposed lodging tax doesn’t meet this test and instead uses the city’s taxing authority simply to raise dollars for promoting certain businesses while ignoring the impact on critical city services.

Hotel guests do occasionally require local government services.

La Quinta Inn in Loveland, for example, has taxed the city’s already stressed police response time this summer by generating dozens of weekend emergency calls from nearby residents over late night band music for out-of-town wedding parties. Last weekend, the Embassy Suites Hotel hosted a gun show where Loveland Police were on-duty throughout the show and responded to an accidental gunfire incident which generated charges for reckless endangerment.

As conventions and promotions attrack increasing numbers of visitors to Loveland, our City Council has no plan to recapture or even understand how much money is spent to support the increased number of visitors in town.

As Loveland’s number of temporary residents rises so does the cost of providing all types of government services for them during their stay. Some have health emergencies while visiting Loveland while others can get into auto accidents or accidentally damage utilities while navigating local streets and increasing traffic on local streets.

Hotel guests who shop at Centerra in east Loveland will minimize the more general financial benefit of their stay to the city as much of the sales tax they pay in Centerra goes to McWhinney instead of the City of Loveland. Hotel owners who want better advertising can raise their own rates and use the money accordingly but it is not the proper role of local government to tax hotel guests for that purpose.

We do not oppose the concept of a lodging tax but do oppose one that can’t be used to support the general city services hotel guests are using. The same city council that recently approved of a budget to lay-off police officers and fire fighters now wants to further stress those services by increasing the number of transient people staying in town for business or pleasure.

Increasing the work load of Loveland’s emergency services while at the same time decreasing their funding diminishes the quality of life for everyone in Loveland and demonstrates poor long-term planning.

To propose a new tax that will not save even one police officer’s job or rehire a single firefighter is a smack in the face to the residents of Loveland not to mention first responders. Monies available for the General Fund need to be spent on improving and expanding those services most critical to Loveland residents’ health, welfare and safety.

Loveland residents should vote no for a third time against a lodging tax that at best can only be used to boost the advertising sales of a national magazine, subsidize advertising for the local hospitality industry or create a slush fund to support friends of city council members in Loveland’s Chamber of Commerce.

Loveland Voters Have Many Choices – City Manager Concerned

Tuesday, September 1st, 2009

Loveland City Manager Don Williams has done the unthinkable for most senior public servants – he has jumped feet first into the 2009 Loveland election contest and is trying to influence the outcome.

According to several sources, Williams has approached at least one person on the Larimer County Republican Executive Committee to disparage this website and certain candidates seeking elected office in Loveland. Williams has been reported to be cautioning that the “conservative” voting block on Loveland’s council is at risk in this election and that the proprietor of this website is “running” certain candidates for city council.

While the challengers in the upcoming election are a mixed bag between Democrats and Republicans, it is a non-partisan race and should remain such according to Colorado’s constitution. In addition, Williams is playing a dangerous game by trying to manipulate the outcome of a city election through false rumors intended to invite inappropriate if not illegal partisan interference.

The “conservative voting block” Williams is trying to protect would never be recognized as conservatives by a jury of their peers. Support for government subsidized housing, increased sales taxes not to mention a lodging tax along with support for eminent domain for private purposes by some puts them at odds with the very values they claim to hold dear of limited government and taxes.

Cronyism is not a conservative value but instead a default position by politicians who lack either the courage or sophistication to properly direct a city manager who shows contempt for the democratic process by trying to make important decisions behind closed doors.

LovelandPolitics has provided a risk analysis on all candidates relative to the probability they will be vulnerable to McWhinney cronyism once elected. We define a McWhinney Factotum as anyone who will put the interest of McWhinney above other developers, businesses and residents who are not as influential in local politics. We believe the 14th Amendment to the constitution provides “equal treatment” under the law for all citizens and that local officials are not immune from the U.S. constitution.

The McWhinney Scale is simply a projection of each candidate’s future actions based on three independent criteria -

1. For incumbent office holder, how they voted in the past

2. For everyone, who is sponsoring their candidacy

3. Statements they have made to voters regarding their leanings and views of previous votes.

Every candidate in red is there because of at least one of the previous three criteria came to our attention. Some were interviewed by LovelandPolitics while others were not.

We are not making any value judgment regarding the candidates in green (independent) other than the fact they are not likely to be influenced in their decisions by McWhinney in secret meetings. Please take your responsibility to vote very seriously and call every candidate (phone numbers are provided by LovelandPolitics in a link to the story) to determine who will best represent your views in city hall and act in the interest of all of Loveland.

Any comments?