Date: Tue, 17 Jul 2001 11:36:34 -0500
To: <gfmorgan@charter.net>
From: John Foust <jfoust@threedee.com>
Subject: Re: JCEDC Funding
Cc: <JVanLieshout@bankwithpremier.com>, <abrdrs@ticon.net>, <slewis@gdinet.com >, <kevin@wenzelhomes.com >, <opperman@jefnet.com >, <dnack@ticon.net> , <bumpaj@compufort.com> , <dpstewart@ptwi.net> , <prosedoc@jefnet.com> , <PhilR@co.jefferson.wi.us> , jpdavid@ameritech.net , <twnixonia@gdinet.com> , <johnsoncreek@tds.net> 

On Monday, July 16, 2001 4:16 PM, Gaylin Morgan wrote:
> The JCEDC is not in serious trouble as some of the negobots would have you
> believe. This year the relationship was switched to a contractual
> arrangement.

The County Board demanded a contract because of growing dissatisfaction with the lack of tangible results from the JCEDC, and the lack of accountability to the Board and the public. Before the contract, there was no written agreement describing what was to be delivered. I'm sure we'd all agree having a contract is a good thing. The City of Jefferson deserves a contract, too.

As shown in the minutes of the County Audit and Budget Committees, and in months of letters from the County Administrator and the Corporation Counsel, and in the tone of faxes exchanged between the County attorney and the Milwaukee attorneys hired by the JCEDC, it should be very apparent the County is quite dissatisfied with the JCEDC's utter refusal to respond to the County's request for 
any of the deliverables outlined in its contract, as required by law.

The contract deliverables were written by Haroldson. It's not as if the JCEDC didn't agree to do these things for the County. The JCEDC's repeated claim is that the only thing they need to surrender 
to the County is the verbal quarterly and annual reports to the Budget Committee and Board. 

They've never budged from that position. In his fax to the County of June 26, for example, JCEDC attorney Robert Gordon stated "the position expressed in my May 3 letter was carefully considered before that letter was sent, and I frankly do not see any basis on which it should be altered." This was sent in response to Phil Ristow's May 29 letter, asking for a clarification of the JCEDC's refusal to surrender any records to the County. The JCEDC is clearly unwilling to even begin to negotiate. They've dug in their heels. 

Was this at the instruction of the JCEDC Board? Where did you, Mr. Morgan, stand on this choice of response? Where did David Olsen stand? How did you represent the wishes of the JDC or Jefferson  on this issue?

>It's taken some time to get the reporting procedures of the
>contract worked out. A meeting is scheduled for 7/17 between JCEDC
>Executive Committee and Bill Hausen and Phil Ristow to clarify what the
>County is looking for in feedback. 

Yes, as the Budget Committee described it, this morning's meeting was "one more chance" for the JCEDC to explain that they didn't want to hand over highly-sensitive documents such as one titled
"Home Repair" and its list of businesses in the County. They'll supposedly give these to any business interest who asks for them - but they refused to give them when the County asked.

>Economic development works best with the private sector when outside the
>bureauocracy of government. 

As a fellow conservative, I couldn't say it better myself. As they say in French, "laissez faire", or "leave us alone."

Are you suggesting that the JCEDC would be better-off without public funding and the bureaucratic oversight that brings?  Certainly it is free to remove itself from the public dole. Perhaps it could seek corporate contributions, as many other dev-corps do. 

By stepping away from the pork buffet, there would be no question of its privacy. However, the JCEDC has contracted with government to provide services, and in that role it must comply with the law.

>As a private non-profit corporation, JCEDC has 
>engaged the support of every communittee in Jefferson County, been the
>receipient of three grants not available to governmental bodies, and
>partnered with the private sector in ways government cannot. 

For example, the JCEDC received a $25,000 grant from the Department of Tourism to create the tourism website at http://www.jctourism.com/ . I made an open records request to the DOT for info about it. 

So far, about $13,000 has been reimbursed, but it was spent outside Jefferson County... thousands spent on administrative costs to a person who lives not far from Haroldson in Waukesha County, 
thousands given to Milwaukee and Waukesha County businesses for graphic design and web site design. Dozens of artists and firms in Jefferson County could deliver the same quality of work at 
a lower cost, and there's no shortage of typists. Why is all this money flowing out of the County?

>For $5,000 per year, it's a bargain for Jefferson County and for each of 
>the participating communities--especially for Jefferson during this period
>when our own JDC is in such a state of upheaval and the economy is headed
>for a slowdown.
>I urge my fellow JDC directors to remain an active partner with JCEDC. 

The County (through our taxes) hands over $71,000 a year, and the participating municipalities (again through our taxes) hand over another $40,000 or so, and the grants from the State certainly come from taxes or fees.

And how can the JDC remain an active partner? After years of attending JCEDC meetings as Jefferson's representative to the JCEDC Board, David Olsen claims that he's never kept a single copy of the letters, minutes, financials or other records that were given to him at JCEDC meetings. (He does have a copy of the annual report.) How does this benefit Jefferson?

How is anyone on the JDC Board, or the City Council, or the public, supposed to interact with or independently judge anything that's happening with the JCEDC if there's no shred of paper and no way for anyone to participate? If a JDC Board member tried to attend a JCEDC meeting, they'd be asked to leave.

Far from being negative, I'm hoping for a future where if our taxes pay for government-driven economic development, it's at least done in a accountable fashion that pleases the public and our elected officials.

Given that the JCEDC is claiming to be the marketing arm of the County's businesses, and that its Board has many members who are well-known for their abilities in marketing, PR, business and politics, I certainly hope the JCEDC Board will find a way to behave more professionally, cooperatively, and in a manner that would please the people who write the checks. You don't do that by asking for more, then snarling and snapping at the hand that feeds you.

- John