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Author Archive for JOHN ADAMS

12 Points on the WEDC’s $500,000 Loan for Campaign Contributor’s Failing (and Lying) Company

Seemingly, all Wisconsin is discussing a $500,000 Wisconsin Economic Development Corporation loan to a failing company of a Walker political contributor. 

Here’s a summary of what’s known so far.

1.  The loan was to Building Committee Inc. (BCI), a business owned by William Minahan, a Walker political contributor (and Minahan made contributions to other campaigns, of both major parties).  It was meant to allow BCI to renovate bank or credit union buildings for “energy efficiency.”

2.  The 2011 loan to BCI created no jobs. 

3.  It’s uncertain where the money went.

4.  It’s not been repaid, and the state is suing BCI.

5.  Then-Secretary of Administration Mike Huebsch wanted the WEDC to extend a forgivable loan over eight times as large ($4,300,000).

6.  The WEDC lent BCI the half-million, aware that even that large-but-reduced amount was “fairly risky.”

7.  No other state or federal programs were willing to lend BCI anything.

8.  The original underwriting documents (different from a loan application) for the BCI loan cannot be found. 

9.  State officials never conducted a loan review.

10. BCI failed to disclose lawsuits pending against it, although a loan application required that they be disclosed. 

11.  BCI listed business partners on the energy efficiency project who received no funds and did almost no work. 

See, Top Scott Walker aides pushed for questionable $500,000 WEDC loan @ State Journal.

12. Some of Minahan’s employees contend he asked them to submit political contributions to candidates (in other states) that he designated, and that Minahan promised to reimburse them.

See, Company obtained loan from WEDC, unsuccessful elsewhere @ State Journal.

Below is a selection from FREE WHITEWATER on the WEDC.  There’s also a category link useful for following updates: WEDC.

Daily Bread for 5.19.15

Good morning, Whitewater.

Tuesday in Whitewater will be partly cloudy with a high of fifty-six. Sunrise will be 5:27 and sunset 8:15, for 14h 47m 44s of daytime. The moon is a waxing crescent with 2.1% of its visible disk illuminated.

Common Council meets tonight at 6:30 PM.

On this day in 1649, Parliament passes an Act Declaring and Constituting the People of England to be a Commonwealth and Free-State:

Be it Declared and Enacted by this present Parliament and by the Authority of the same, That the People of England, and of all the Dominions and Territories thereunto belonging, are and shall be, and are hereby Constituted, Made, Established, and Confirmed to be a Commonwealth and Free-State: And shall from henceforth be Governed as a Commonwealth and Free-State, by the Supreme Authority of this Nation, The Representatives of the People in Parliament, and by such as they shall appoint and constitute as Officers and Ministers under them for the good of the People, and that without any King or House of Lords.

On this day in 1675, Father Marquette passes away:

1675 – Fr. Jacques Marquette Dies

Fr. Jacques Marquette (1636-1675) died on this date in 1675 near Ludington, Michigan, at the age of 39. After the famous voyage down the Mississippi that he made in 1673 with Louis Joliet, Marquette vowed to return to the Indians he’d met in Illinois. He became ill during that visit in the spring of 1675 and was en route to Canada when he passed away. His diary of the trip is online in our American Journeys collection.

Here’s Puzzability‘s Tuesday game:

This Week’s Game — May 18-22
Prhymetime
For your viewing pleasure this week, we’re airing a series series every day. Each day’s clues lead to a series of answer words that, in order, rhyme with the title of an Emmy-winning TV series (comedy or drama).
Example:
Pretending to be sick; tartan pattern
Answer:
Breaking Bad (faking; plaid)
What to Submit:
Submit the series title and the rhyming words (as “Breaking Bad (faking; plaid)” in the example) for your answer.
Tuesday, May 19
Chirping insect; taste and touch, for example

First Vendor Presentation of 1.21.14 to Whitewater’s Common Council

WGTB logo PNG 112x89 Post 8 in a series.

First Vendor Presentation of 1.21.14 to Whitewater Common Council from John Adams on Vimeo.

In this post, I’ll look at the first vendor presentation on the digester proposal to Whitewater’s Common Council.

(Every question in this series has a unique number, assigned chronologically based on when it was asked.  All the questions from When Green Turns Brown can be found in the Question Bin.  Today’s questions begin with No. 60.)

60. City Manager Clapper (Clapper) mentions that one of the vendors presenting, Trane, is working with Whitewater to evaluate energy efficiency as part of a separate project. What happened with Trane’s energy efficiency contract with Whitewater?

61. Wouldn’t how Whitewater’s energy efficiency contract with Trane progressed show (1) what Trane is like as a vendor and (2) how skillful city officials (particularly Clapper) are in evaluating and managing city projects?

62. Clapper mentions that city officials (full-time staff, presumably) and the vendors did not have time to draft an agreement before the 1.21.14 meeting, so the 1.21.14 meeting will be a presentation only (that is, there will be no request to vote on a contract). Does Clapper think that a presentation and vote on the same night without time for later reflection would have been a good practice, had the vendors and city staff produced timely a draft agreement?

63. If Clapper thinks that a presentation and vote on the same night would have been a good practice, then what does that say about the level of diligence his administration (full-time staff) should be required to meet?

64. Wastewater Superintendent Tim Reel (Reel) claims that Whitewater would produce energy by “bringing in and increasing our acceptance of different and variety [sic] of industrial wastes.” What kinds of industrial wastes – by Reel’s account there are different kinds and a variety – would he import into the city from other places?

65. How would Reel’s contention that the city would need to “increase our acceptance” of waste influence the current standards for waste processing at the plant?

66. Reel contends that there would be an energy savings, but he doesn’t say how much. Why not? By his own admission from 12.3.13, there have been multiple meetings (off-camera) by this time, with vendors and a waste hauler. Why no energy estimate, even a loose-fitting one?

67. Reel mentions that there is excess capacity at the city’s existing digesters, as he has previously (12.3.13). Using his own analogy of a digester as like a human digestion system (3.16.15 presentation to Whitewater School Board), if a person’s stomach is half-full, does that compel eating until one’s stomach can hold no more? Even if Reel contends that it does compel engorging oneself, does Reel believe that what one puts into one’s stomach – what foods (or in a digester’s case what wastes) doesn’t matter?

68. How does Reel estimate the value of an idle digester? That is, not as how much, but how he arrives at a particular figure? Did he, himself, produce a figure? If not, who did? What is the analysis underlying that dollar figure?

69. Reel contends that, on behalf of the city, he sent letters to 12 industrial waste providers to see if they would be willing to dump industrial-strength waste into Whitewater’s digester. To which providers did he send that letter? How did he arrive at that list of twelve names?

70. Reel claims that three companies expressed interest in dumping industrial-strength waste into Whitewater’s digester. Which three?

71. Reel claims that although three vendors have expressed interest without a commitment, the volumes that they could dump into Whitewater’s digester could “drive the project.” What would those volumes be? How many trucks would that require, on what schedule?

72. Reel introduces two sets of vendor representatives, three from Trane (“Rachel, Jeff, and Todd”) and two from Black & Veatch (“Steve and Paul”), all on a first-name basis. How well does Reel know them? How much time has he spent with them, particularly those from Trane (as Trane was at this time already in the city working on an ‘energy efficiency’ project)? How often has he met them, and in what settings?

73. Trane advocates a performance contract where the “design team and the construction team are one in the same,” over a traditional designer-contractor partnership. Trane’s representative contends that a performance contract approach means no details will be missed within a unified team. How does he think so (does he believe that one business formation over another assures infallibility)? Can he show that no performance contract has ever failed for want of a detail?

74. What risks can Trane guarantee?

75. Trane wants Whitewater to pay for a feasibility study. Isn’t that simply asking Whitewater to pay for Trane’s cost of a sales (feasibility) presentation? Shouldn’t Trane alone bear the risk of what it can and cannot do for Whitewater? How, if at all, is this different from a baker asking a potential customer to pay for an estimate of whether the baker can bake bread for a would-be patron? Shouldn’t that be a cost that the baker bears?

76. Where is the (completed) Trane study? Did Trane complete the study?

77. Trane contends that Trane would manage and Black & Veatch would build the project. Can Clapper show, himself – with concrete figures – that this performance contract approach with self-selected companies would be superior to a conventional bid process?

78. If Clapper can’t, himself, do so, then how is he fulfilling a duty to manage and protect the city’s financial interest? Does Clapper’s fiscal obligation to Whitewater merely involve relying on what private parties looking for municipal payment tell him?

79. Black & Veatch’s representative lists a project, by his own admission, ten times the size of a likely Whitewater project. How useful does the Black & Veatch representative think that an order-of-magnitude-larger project is to Whitewater? He says that’s the most similar project to Whitewater’s project that his company has. Has he nothing closer? Why not?

80. The Black & Veatch vendor contends that Whitewater might increase its waste by importation to handle in total up to four times (or even eight times) as much “high-strength” waste as it now produces locally.

81. Do Clapper and Reel think that importing into Whitewater multiple times as much waste as we produce locally will have no environmental impact? Why do they think that (that is, what environmental analysis have they done)?

82. Black & Veatch contends that they could “get the plant off the grid” and “sell some excess [power] in addition.” How would they know this, even before a city-paid feasibility study?

83. The Black & Veatch representative admits that among industrial wastes, there are “good wastes and bad wastes to receive.” Who will secure and assure, day in and day out, that Whitewater will receive only “good wastes”? Who will monitor that importation, and how will others see results that are accurate and reliable?

84. Reel mentions that he has a 1.29.14 meeting with a waste hauler. Which one? How did Reel learn of that hauler? Did they meet? Did Reel take notes for that meeting?

85. Black & Veatch’s representative states that “typically tipping fees [paid by those who dump waste into a location] will generate more revenue for the city than for example selling peak power back to the grid.” If so, isn’t this truly less an energy project than a waste dumping project?

86. Reel says that a conservative estimate might be “twenty thousand gallons” for a facility that “would be open 24/7.” How many trucks would that require?

87. Is a large flow of waste haulers’ trucks into Whitewater a reason for the business lobby’s interest in truck traffic in the city? Will each and every member of the business lobby personally stand by waste importation into Whitewater?

88. Why would a hauler as far as Fond du Lac (as a council member mentions apparently from notes) be interested in dumping in Whitewater? Will no one closer take that hauler’s waste? Why won’t anyone closer take it?

89. What does it say about one of Trane’s representatives that he cannot answer a question about the study’s initial cost, but instead relies on a council member to quote that figure to him? Does the vendor representative not know? Is he shy to mention a $70,000 initial cost?

89. Clapper mentions that Reel will be the one who will “ultimately answer” questions about the project. What is Reel’s educational and professional background?

90. Why would City Manager Clapper, as city manager, not assume ultimate responsibility for the information about this project?

Original Council Common Presentation, 1.21.14
Agenda http://www.whitewater-wi.gov/images/stories/agendas/common_council/2014/2014_1-21a__Complete_Council_Packet.pdf (link broken)
Minutes http://www.whitewater-wi.gov/images/stories/minutes/common_council/2014/2014_01-21.pdf
Video https://vimeo.com/86074358

WHEN GREEN TURNS BROWN: Mondays @ 10 AM, here on FREE WHITEWATER.

Daily Bread for 5.18.15

Good morning, Whitewater.

Monday in Whitewater will be sunny with a high of sixty-eight. Sunrise is 5:28 and sunset is 8:14, for 14h 45m 50s of daytime. It’s a new moon today.

On this day in 1863, Gen. Grant begins the Siege of Vicksburg:

On this day, Union General Ulysses S. Grant surrounds Vicksburg, the last Confederate stronghold on the Mississippi River, in one of the most brilliant campaigns of the war.

Beginning in the winter of 1862-63, Grant made several attempts to capture Vicksburg. In March, he marched his army down the west bank of the Mississippi, while Union Admiral David Porter’s flotilla ran past the substantial batteries that protected the city. They met south of the city, and Grant crossed the river and entered Mississippi. He then moved north to approach Vicksburg from its more lightly defended eastern side. In May, he had to split his army to deal with a threat from Joseph Johnston’s Rebels in Jackson, the state capital that lay 40 miles east of Vicksburg. After defeating Johnston’s forces, Grant moved toward Vicksburg.

On May 16, Grant fought the Confederates under John C. Pemberton at Champion Hill and defeated them decisively. He then attacked again at the Big Black River the next day, and Pemberton fled into Vicksburg with Grant following close behind. The trap was now complete and Pemberton was stuck in Vicksburg, although his forces would hold out until July 4.

In the three weeks since Grant crossed the Mississippi in the campaign to capture Vicksburg, his men marched 180 miles and won five battles. They took nearly 100 Confederate artillery pieces and nearly 6,000 prisoners, all with relatively light losses.

On this day in 1964, Milwaukee students protest:

1964 – Milwaukee Students Participate in First School Boycott

On this date, the 10th anniversary of Brown v. Board of Education, students from Milwaukee schools participated in the first boycott of the city’s public schools, a critical moment in civil rights and desegration movements in Wisconsin. Two months earlier, in March 1964, the NAACP, CORE, and other civil rights organizations formed MUSIC — the Milwaukee United School Integration Committee. Its purpose was to implement mass action to highlight the issue of educational inequality. For two years, sit-ins, picketing, prayer vigils, marches, and boycotts had raised public awareness about segregation but failed to move the school board to action. In December of 1965, Wisconsin civil rights activist and attorney Lloyd Barbee filed a formal desegregation suit in federal court on behalf of 41 black and white children, eventually decided in their favor in 1976. [Source: Rethinking Schools].

Puzzability begins a new week with a set of games, entitled, Phrymetime:

This Week’s Game — May 18-22
Prhymetime
For your viewing pleasure this week, we’re airing a series series every day. Each day’s clues lead to a series of answer words that, in order, rhyme with the title of an Emmy-winning TV series (comedy or drama).
Example:
Pretending to be sick; tartan pattern
Answer:
Breaking Bad (faking; plaid)
What to Submit:
Submit the series title and the rhyming words (as “Breaking Bad (faking; plaid)” in the example) for your answer.
Monday, May 18
In the clothes hamper; group of sheep

Daily Bread for 5.17.15

Good morning, Whitewater.

Sunday in town will bring an afternoon of thunderstorms and a high of seventy-seven. Sunrise is 5:29 and sunset 8:13, for 14h 43m 53s of daytime. We’ve a new moon.

Friday’s FW poll asked readers if they thought Australian filmmaker Dave Riggs was too close to a shark when he took a picture of a great white. Just under fifty-four percent (53.85%) of respondents said that they thought he was too close, and 46.15% said that being near the shark was worth the shot.

On this day in 1954, the U.S. Supreme Court handed down its unanimous decision in Brown vs. Board of Education of Topeka. Here are the opening paragraphs of a New York Times story on the decision:

Washington, May 17 — The Supreme Court unanimously outlawed today racial segregation in public schools.

Chief Justice Earl Warren read two opinions that put the stamp of unconstitutionality on school systems in twenty-one states and the District of Columbia where segregation is permissive or mandatory.

The court, taking cognizance of the problems involved in the integration of the school systems concerned, put over until the next term, beginning October, the formulation of decrees to effectuate its 9-to-0 decision.

The opinions set aside the ‘separate but equal’ doctrine laid down by the Supreme Court in 1896.

“In the field of public education,” Chief Justice Warren said, “the doctrine of ‘separate but equal’ has no place. Separate educational facilities are inherently unequal.”

He stated the question and supplied the answer as follows:

“We come then to the question presented: Does segregation of children in public schools solely on the basis of race, even though physical facilities and other ‘tangible’ factors may be equal, deprive the children of the minority group of equal educational opportunities? We believe that it does.”

On this day in 1673, an expedition begins:

1673 – Jolliet and Marquette Expedition Gets Underway

On this date Louis Jolliet, Father Jacques Marquette, and five French voyageurs departed from the mission of St. Ignace, at the head of Lake Michigan, to reconnoitre the Mississippi River. The party traveled in two canoes throughout the summer of 1673, traveling across Wisconsin, down the Mississippi to the Arkansas River, and back again.

Daily Bread for 5.16.15

Good morning, Whitewater.

Saturday in town will have a high of seventy-seven and see an even chance of afternoon thunderstorms. Sunrise is 5:30 and sunset 8:12, for 14h 41m 53s of daytime. The moon is a waning crescent with 3.7% of its visible disk illuminated.

It’s the anniversary, from 1929, of the first Academy Awards ceremony:

The official Academy Awards banquet took place in the Blossom Room of the Hollywood Roosevelt Hotel. Some 270 people attended, and tickets cost $5 each. After a long dinner, complete with numerous speeches, Douglas Fairbanks, the president of the Academy of Motion Picture Arts and Sciences, which had been formed in 1927, handed out 15 awards in a five-minute ceremony. The awards presentation was somewhat anticlimactic compared to today’s Academy Award ceremonies, as the winners had already been announced in February.

In 1929, movies were just making the transition from silent films to so-called “talkies,” but all the nominated films were without sound. For the only time in Academy history, Best Picture honors were split into two categories: Best Picture – Unique and Artistic Production, and Best Picture – Production. The winner in the first category was F.W. Murnau’s romantic drama Sunrise: A Song of Two Humans, starring George O’Brien and Janet Gaynor. William Wellman’s film Wings, set in the World War I-era and starring Clara Bow, Charles “Buddy” Rogers and Richard Arlen, won in the second category. Other winners of the night included the German actor Emil Jannings as Best Actor for two films, The Last Command and The Way of All Flesh; and Gaynor as Best Actress. She had received three of the five nominations in the category, and was honored for all three roles, in Sunrise, Seventh Heaven and Street Angel. The Academy also presented an honorary award to Charles Chaplin; it would be the only honor the great actor and filmmaker would receive from the organization until 1972, when he returned to the United States for the first time in two decades to accept another honorary award.

Starting with the following year’s awards, the Academy began releasing the names of the winners to the press on the night of the awards ceremony to preserve some suspense. That practice ended in 1940, after the Los Angeles Times published the results in its evening edition, which meant they were revealed before the ceremony. The Academy then instituted a system of sealed envelopes, which remains in use today.

On this day, in 1913, Woody Herman is born:

On this date Woody Herman was born in Milwaukee. A child prodigy, Herman sang and tap-danced in local clubs before touring as a singer on the vaudeville circuit. He played in various dance bands throughout the 20s and 30s and by 1944 was leading a band eventually known as the First Herd. In 1946, the band played an acclaimed concert at Carnegie Hall but disbanded at the end of the year. The following year, Herman returned to performing with the Second Herd that included a powerful saxophone section comprised of Herbie Steward, Stan Getz, Zoot Sims, and Serge Chaloff. He died in 1987. [Source: WoodyHerman.com].

WEDC Slowly Crumbles

image
WEDC ‘CEO’ Reed Hall Looks Downcast. 
You Would, Too, If You’d Disgraced All Wisconsin Yet Again. 
AP Photo.

On a Friday afternoon, there’s breaking news across Wisconsin. Having rejected free markets in capital, labor, and goods for cronyism and ineffectual manipulation of the economy, the Wisconsin Economic Development Corporation now slowly crumbles:

Scott Walker calls for elimination of state economic development loans

In the wake of another scathing audit of his flagship job-creation agency, Gov. Scott Walker called on lawmakers Friday to eliminate all loans the agency provides to encourage business development.

He also called for scrapping a proposed $55 million revolving loan fund for the agency included in his budget and using the money for education and worker training programs….

Should one be surprised?  Years of sham economics, lies about progress and development, and of job creation have met their match in audit after audit after audit.  So many of these millions went to the undeserving, bloated friends of insiders. 

To each and every person in this city who touted the work of the WEDC, one can confidently say this: you recklessly abandoned America’s deep tradition of reason and knowledge, and her advanced economic understanding, for hucksterism, for nothing but a low ideology common in banana republics and other degraded places.

If an ape screeched, hooted, and howled along Main Street, on that occasion Whitewater would have heard wiser and more melodious remarks than anything this city’s officials have ever said in defense of the WEDC.

There is much more work to be done, about this agency and in opposition to its unctuous defenders, but today is a good day for reason, learning, and fairness.

Reed Hall’s Inauspicious Choices

Reed Hall, who ‘boldly,’ ‘innovatively’ uses the private title of CEO for an organization that runs on public money, has written two defenses to his agency’s latest audit fiasco.  The first of those appears as a few platitudinous paragraphs online (‘WEDC takes bold, innovative approach to economic development,’ subscription req’d,  and the second as a reply to the Legislative Audit Bureau’s one-hundred-sixteen-page audit from this month.)

Consider how Hall touts his agency’s accomplishments, with the same “expected to create or retain” language that Republicans criticized ceaselessly (and rightly) in Pres. Obama’s stimulus package.  Imprecision and ambiguity were once a problem the GOP criticized.  Now, a sketchy phrase is at the center of how Hall describes the WEDC’s work.

Hall wants you to think that there’s been improvement in his agency’s performance, of course, but he deceptively hides the reason for better WEDC loan delinquency rates. 

Hall does this by mentioning a May 2013 audit and the May 2015 audit, while simultaneously omitting information from a September 2014 audit that undermines his claims of a legitimately lower delinquency rate.

First, what Hall hopes you’ll take at face value:

As a result of our efforts, our loan delinquency rate dropped from 2.7 percent in 2013 to 0.2 percent in 2014. The uncollectable loan balance declined from $5.5 million in 2013 to $1.3 million in 2014, and the percentage of performance reports that are late fell from 55 percent to 5.4 percent in two years.

Then, the truth he omits, as revealed in a September 2014 audit:

Of the $7.7 million decrease in troubled loans held by WEDC, the biggest chunk — $3.2 million — came from loans that were written off by WEDC because they were 90 days past due.

For the state to proceed with the collection process, those loans had to be transferred from WEDC to the Department of Administration. So by itself that change is just a bureaucratic shuffle, not a gain for taxpayers.

The audit didn’t examine what had happened to the loans after they went to the administration department.

The next biggest chunk of past due loans, worth $2.1 million, had their contracts rewritten by WEDC to delay repayment by the borrowers and $1.3 million in loans were forgiven by WEDC in whole or in part.

Hall gets better figures by concealing that the WEDC has shuffled loans to another agency and has simply written many other loans off.  

I’ll say there are two possibilities: Reed runs a multi-million-dollar, taxpayer-funded agency, yet is unable to count to three (skipping the second of three audits), or he knows that there have been three, but deceptively hopes you’ll remember only two.  

Dunce or deceiver? 

Hard to see how that’s an auspicious choice for Mr. Hall, no matter how bold and innovative he claims the WEDC to have been.

Friday Catblogging: A Cat Café for Ann Arbor

CatCafe

There’s a planned 2016 opening of a cat café, The Cats Meow Café, for Ann Arbor, Michigan. It’s only a matter of time until this catches on across America:

“I always said that if I was going to open a business, that’s exactly what I would do,” Bono said. “After I realized it can be possible here, I started writing a business plan and I’ve been researching for the last six months or so.”

Bono’s café will be called The Cat’s Meow, and she’s aiming to open in 2016.

A wildly popular concept in Japan – that actually started in Taiwan – cat cafes have started making their way to the U.S. over the last few months with the first one opening in Oakland, California. Last week, a Grand Rapids entrepreneur announced plans to bring a cat café to the city.

Cat cafes operate as a coffee shop/adoption center where cats live in the same space as the coffee shop. The cats are provided by local rescue centers and are available for adoption.

“It’s supposed to bring (the cats) to the public more and bring more adoptions,” Bono said. “The idea is that they’re freeing up more space at the recuse center for more adoptions.”

The cats are kept in a separate area of the building than the actual coffee shop for health reasons, but patrons who want to take their drinks into the cat area can pay a small fee to do so. Then they can enjoy their coffee and play with the cats at the same time.

While it seems like an odd concept, supporters of cat cafés like Bono say it serves a great purpose for people who can’t have cats in their homes or apartments, but still want to enjoy a feline’s company on occasion.

Bono said she has run the idea through the proper channels and said licensing shouldn’t be a problem. She plans to open the cafe part time while continuing her job in sales at MLive Media Group.