On Wednesday, April Fools Day, Commissioner Kevin Stufflebean must either resign his position or file a letter of justification with Coos County Clerk Terri Turi triggering a special election to be held May 5. Stufflebean has publicly stated he will not resign and The Sentinel has requested an official statement.
According to the recall committee Citizens for Fair and Open Government, headed by former Roadmaster Larry Van Elsberg, a recall had been under consideration for some time but it was the 11th hour layoff of 22 road workers from the County Road Department on New Year’s Eve that pushed the committee to action. Earlier, after an executive session, then Commissioner John Griffith along with Nikki Whitty and Stufflebean voted to ‘reorganize’ the department despite adequate funding through the current budget year and with no warning to the employees or the Teamsters Union.

For weeks, citizens stood before the Board during regular commission meetings and citing public safety concerns pleaded with the Board to reconsider. So many people came each week that Whitty was prompted to use a timer, limiting public participation to three minutes further infuriating the public. Newly elected Commissioner Bob Main twice made a motion to reinstate the road crew through June when their contracts were up to allow for public input and both times Whitty and Stufflebean let the motion die.

The two incumbent commissioners claim there was ample time for public input and cited December 3, 16 and 31 as dates the matter was discussed. Citizens present during these meetings remember nothing to indicate 60% of the road department was about to be laid off and the Board was accused of speaking in code to deliberately obscure their actions from the public. This perceived opacity on the part of the Board is the main premise of the recall effort.
An unexpected consequence of the layoff and the manner in which the Board handled it prompted Teamsters Union 223 representing the road crew to file an Unfair Labor Practices Complaint with the Oregon Employment Relations Board. That complaint has been accepted by the Administrative Law Judge and will be heard at the end of June. Should the ULP prevail it could cost the County in excess of $650,000 in back wages and benefits with no services rendered. The County has paid over $15,000 in legal fees to outside labor attorneys.

Amidst public outcry questioning whether 14 people can handle 600 miles of county roads Stufflebean, who acted as interim roadmaster after Van Elsberg resigned April of 2007, claimed an analysis had been done and the new department would be more efficient and would easily handle critical road safety functions. After repeated attempts by The Sentinel to obtain copies of the analysis it was acknowledged that no written analysis existed adding fuel to committee assertions the road department reorganization was ill conceived and put the public at risk.

The recent drowning death of 88 year-old Dean Caudle after trying to drive through 4’ of water on Arago Fishtrap Road had new Roadmaster John Rowe scrambling to explain why barriers closing off the road were not put up until after Caudle drowned. Former road worker Dennis Backman said this was, “…the type of thing we were afraid would happen.”

In light of the recent court finding and the ongoing debate as to whether the County should do business with chromite mining company Oregon Resources it might be worth taking at earlier County alliances, namely NW Natural. Most of these notes and quotes are from The World archives-

Referring to the first customer hookup -

November 6, 2004 – This is a great milestone, said Mark Dodson, CEO and president of NW Natural. “We’ve been working with Coos County and others to bring natural gas to the South Coast for many years. It could not have happened without some remarkable teamwork from local officials, state government and private enterprise.”

The local distribution system, which includes mains and service lines, is owned and maintained by NW Natural. The county’s main gas transmission line isn’t expected to be completed until late December or early January, according to the Coos County Commissioner Nikki Whitty.

The county-owned 60-mile natural gas pipeline will transport gas from the Williams interstate pipeline near Roseburg to Coos County and will feed gas into the distribution system built by NW Natural. Natural gas service eventually will be provided to the cities of Coos Bay, North Bend, Coquille and Myrtle Point. A lateral to Bandon also is planned.

Regarding the benefits to the local economy.

January 31, 2004 – Ask Ron Opitz about the future economic development potential of the natural gas pipeline and he’ll tell you there’s no need to look ahead.

“The pipeline is having an economic impact right now,” the executive director of the South Coast Development Council said…
…he cited a phone call from a local construction company owner, who asked for a contact person for MasTec, the company hired to construction the pipeline. The owner said his company “was on the brink,” Opitz said, and its more than a dozen employees were in danger of losing their jobs.

“They did directional drilling,” Opitz said, “so I gave him a number to contact MasTec.”

He said the contractor called back later to tell Opitz his company was sub-contracting on the project.

From that to this –

February 24, 2004 – A Coos Bay directional drilling company hired as a subcontractor by Henkels & McCoy, the company installing a natural gas pipeline in Coos Bay for NW Natural, has been cited by the Oregon Department of Environmental Quality with water-quality violations.

The DEQ announced Monday that Nu-Venture H.D.D., L.C.C., was cited for violations the DEQ said occurred when the company discharged drilling mud on property located on 26th Street, off Ocean Boulevard. The DEQ charges the discharges allowed mud to enter state waters via a wetland connected to Pony Creek.

MasTec files suit -

MasTec Inc., the Miami-based company hired by Coos County to install a 60-mile-long natural gas pipeline from Roseburg to Coos Bay is suing the county for breach of contract and asking in excess of $9.8 million in damages.

The suit was filed in federal court Wednesday by David Bledsoe of Perkins Coie LLP in Portland and received by the Coos County Board of Commissioners late Thursday. The suit charges the county has refused to approve submitted invoices and has not paid for change orders and has “clearly expressed its intention not to pay MasTec in the future for work already performed or to be performed.”

The lawsuit states that MasTec is due more than $5.8 million in progress payments for work under the contract and is due an additional almost $962,000 for work performed under requested change orders that have been invoiced. Also due is $3,007,685, according to the suit, for work performed under requested change orders and not yet invoiced.

Finally, a judge finds that MasTec must pay $1.5M in penalties for violating the Clean Water Act and charged the County with being partially responsible -

lawyer who argued on behalf of The Sierra Club, said Hogan’s ruling showed “these were very serious and ongoing violations by MasTec. Anytime you see a million-dollars plus assessed in a penalty for a Clean Water Act suit, that’s a major penalty.”

County Commissioner Nikki Whitty, who served as one of the government’s key point people on the project, had this to say: “I’m just glad it’s over.”

Over for whom, I wonder? Nikki? The people whose property was affected? The taxpayers who took it in the shorts? Whitty and former commissioner John Griffith clearly earned public skepticism regarding the current actions regarding leasing mineral rights to ORC. ORC is anxious to close a deal and Opitz was gunning for them until he took ill recently but newly elected commissioner Bob Main wants to take a closer look and get some professional help before signing.

This is purely a guess but I suspect ORC needs to reach certain benchmarks, namely mineral leases, before receiving another round of funding and this may be why they are in such a rush to close a deal.

(hat/tip themguys for doing the research)

President Obama commemorating the bicentennial birthday of our 16th President reminded us of Lincoln’s view of democracy, “The legitimate object of government is to do for a community of people what needs to be done but which they cannot by individual effort do at all, or do so well, by themselves.” Lincoln graciously defines what cannot be done individually to include providing for the young, helpless and afflicted and building public roads, schools and highways and maintaining the ‘machinery of government’ itself.

In the 200 years since Lincoln’s birth government has, through the implementation of subsidies, tax cuts, enterprise zones and urban renewal districts, broadened the concept of what requires community effort. These incentives are meant to entice new business and new jobs by reducing startup costs for free enterprise. This is great if creates jobs but what is the return on investment to the taxpaying public? What is the price to the community per job?

Enterprise zones let qualifying businesses receive total exemption from the property taxes normally assessed on new plant and equipment for at least three years and possibly up to five years. In Oregon, these zones, 59 of them are primarily designated in economically depressed areas, 48 rural.

A study entitled “OREGON ENTERPRISE ZONE TAX ABATEMENT ECONOMIC DEVELOPMENT STUDY AND URBAN RENEWAL STUDY”, published by Portland State University concludes, “The cost per job created appears to be relatively high, and the comparison of reported employment growth with data from the Employment Department indicates that the reported employment growth may be overstated, which would further increase the abatement cost per job created.”

Locally, we have a prominent example of government subsidy at work in the hopes of job creation at the Bandon Dunes Golf Resort. According to Pulitzer Prize winning reporter, David Cay Johnston in his book “Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and stick you with the bill)”, the world famous golf course benefits from four government subsidies that exceed payroll for 325 employees and amounts to $37,000 per full time employee.

Perhaps even more famously, at least locally, a new airport terminal was built to manage the increase from 3 executive jets per year to over 5,000 private jets ferrying golfers to the self contained resort, at a price tag of $31M, half from a ticket tax and half from the Oregon State Lottery. So far, those 325 jobs are costing Oregon taxpayers quite a bit.

One of the recommendations in the PSU study is to mandate a thorough fiscal assessment of the impact on local taxing districts for local taxing authorities and offer an opt-out provision if it isn’t paying off. In Coos County we need only look at the empirical data and rising unemployment rates to decide if our tax dollars have been wisely invested and are producing badly needed jobs.

Oregon Resources Corporation qualifies for the enterprise zone property tax exemptions, (as does Bandon Dunes) and may soon enter into a mineral lease agreement with the County to mine or explore up to 8,000 acres of County timberlands for chromite ore. Coos County Commissioners Griffith, Whitty and Stufflebean took steps last December to further assist ORC by laying off 22 workers thereby freeing up $450K of Road Department funds to improve W Beaver Hill Road necessary for ORC mining operations.

South Coast Development Corporation formed, according to Whitty, as a liaison between government and private enterprise supports ORC and having the County pay for road improvements. Coos County funds SCDC $10,000 annually to attract business into the area and ORC promises upwards of 70 jobs if they reach full production.

Commissioner Main has called for the County to conduct some in depth due diligence before committing county road funds or entering into any leases. Considering ORC has already cost the local economy 22 jobs part of that due diligence should be to accurately determine the ROI to the citizens of Coos County for their investment.

A final note on enterprise zones – Coos County with its high unemployment and low median income clearly meets the criteria for an enterprise zone and the legislature makes no distinction about what brings a company to do business within an enterprise zone. Nevertheless, ORC or any other mining venture is only here because of the resources available and not with the direct intent of boosting local employment.

Without the chromite ore ORC would not be here zone or no zone. To further subsidize ORC by laying off workers and funding road improvements does not seem appropriate for a county in such dire economic straits that it qualifies as an enterprise zone in the first place.

An 11th hour layoff, New Years Eve, of 22 Coos County Road Department employees by commissioners, Whitty, Stufflebean and outgoing commissioner, John Griffith has unleashed a firestorm of activity. The abrupt manner in which the County conducted the layoffs has resulted in an unfair labor practices (ULP) complaint filed against the county and initiated a recall effort of Commissioner Kevin Stufflebean.

According to claims included in an amended ULP, filed with the Oregon Employment Relations Board, January 28, 2009, the County contracted out ‘bargaining unit’ work to managers and further failed to notify the Union. “The decision to contract out bargaining unit work is a mandatory bargaining subject under ORS 243.650(7).”

The ULP claims multiple ORS violations including the County’s refusal to provide ‘…any notes, reports, transcripts, minutes and/or recordings from the County Commission’s executive session held on December 31, 2008.’ The Union requested the information January 12, 2009 to investigate possible violations of Oregon law and the Public Employees Collective Bargaining Act.

Citizens for Fair and Open Government, headed by former roadmaster, Larry Van Elsberg, launched a recall believing a perceived lack of transparency on the part of the former Board of Commissioners excluded citizens from actively participating in the reorganization of the Road Department and jeopardized public safety. The County denies these claims and asserts all meetings were properly noticed in accordance with Oregon’s open records laws.

As reported last week, during a January 20, 2009 ‘worksession’ at the Owen Bldg, Stufflebean claims the Road Department layoffs were openly discussed during an announced December 16, 2008 special meeting. The Sentinel listened to the recording of that session and provided copies to some citizens to try and obtain an opinion as to Stufflebean’s claim.

Present at the meeting were Commissioners Whitty, Griffith and Stufflebean and the department budgets discussed included the Sheriff, SCINT, Juvenile and Planning as well as the Road Department. Stufflebean, aided by management from the Road Department, referred to charts that appear to be the same information supplied to media and during the Owen Bldg meeting.

Stufflebean presented anticipated reductions in revenue, the cost of maintaining aged county equipment and then explained, “…One of the things we run into with the road department is road department is actually maintenance department where we need materials, meaning asphalt and gravel in order to maintain roads. We have invested in everything but equipment and supplies… that has put us in a very difficult situation that we are in right now.”

Stufflebean notes the department has been operating in the red for several years ‘spending down carryover funds’, a claim disputed by Van Elsberg. The next spreadsheet discussed is the ten-year budget projection also provided at the Owen Bldg that includes a shift towards increased spending on asphalt, equipment purchases Stufflebean says “…we are looking at staff reductions in the 2012-2013 budget year.”

Stufflebean announces a major reduction in road department complaints owing to an emphasis on customer service attributed to managers Barry Austen and Shawn Migas. After explaining the need to invest in new equipment and that as jobs have become vacant in the last two years they have been left unfilled he states, “…we will be maintaining backhoe crews, brush cutting crews, making sure we have a culvert installation crew, do our ditching crew, we will be able to do paving, we will be able to run the crusher and we will be able to do slide removal. Sign and spray is one of our most critical functions we do, herbicide spray… plus we will be able to retain bridge inspections and we will have fleet services also.”

Reference is made to an organizational chart that lists how many people are qualified to do the jobs listed above. No reference is made in open session to impending layoffs. Ed Pool, a Bridge resident who has listened to the recording but was not present to view any of the charts says, “I heard nothing that would lead me to believe they were about to lay anyone off.”

John Griffith called an executive session citing labor negotiations and current or potential litigation. Treasurer Mary Barton, Road Department managers, Shinnock, Migas and Austen, and Human Resources Director, Steve Allen all attended with the Commissioners and County Counsel Jacqui Haggerty. The ULP claims that a decision to layoff road crew workers was made during executive session December 31 but it may have occurred during this December 16 meeting.

Pool found it curious that just before the audio cuts off Stufflebean is heard saying, “I would prefer that this be handwritten notes and not taped executive session…” Pool is now actively collecting signatures for the recall petition.

Whether the public was properly informed that a major decision relating to road maintenance was being made there is little doubt the road workers were kept in the dark. Union president Adam Wideman, about a week before the layoffs, received a copy of a 10-Year Projection for Road Dept Budgets prepared November 11, 2008 and referred to in the meeting of December 16.

The projection was part of the handouts provided to the public at the Owen Bldg meeting but was not provided to Wideman by anyone affiliated with the road department management and indicates 40 employees maintained through 2010 with a reduction of personnel beginning in 2011.

Wideman, along with all other road department employees, had been advised at 7:00 AM New Year’s Eve morning to attend a mandatory meeting at 3:30 that afternoon. Unaware that he would be laid off that afternoon he attended the regular BOC meeting that morning to ask if there were any major reductions to be made in the next couple of years and was advised there would be some changes. This was the only notice given to County Road Department employees.

The Sentinel has learned the layoff of 22 Teamster workers reduced the ratio of union to nonunion employees affecting the Oregon Teamsters Employers Trust health benefits. The number of Teamsters must exceed the number of non-Teamster workers to stay in compliance with the terms of the policy. The County has been notified that nonunion employees will lose their coverage as per trust requirements effective as early as March. Not all county workers are covered by OTET but amongst those about to lose their health insurance are the county commissioners and the human resources director.

Today, on the Oregon Outdoors Show, Radio KWRO 630 AM, with host, Richard De Chambeau, John Griffith, former Coos County Commissioner is expected to speak about the Road Department layoffs he voted in favor of. Time is 3PM to 5PM (other reports list 4PM to 6PM). It has been leaked that Griffith will not speak favorably regarding the workers let go. This is a call-in show or so I am told, I have never listened to KWRO so am only passing on what I have learned. If anyone can record it, I would appreciate it.

The Guard has an article up regarding the commissioner race. Mostly, I am putting it up because they quoted me, not exactly correctly but close enough I guess.

Coquille resident Mary Geddry, who campaigned against Griffith, said voters in Coos County were ready for a change. “Many feel he was just pigheaded, that he wouldn’t work with people, that he’s arrogant and wouldn’t listen to opposing views,” she said. “John Griffith’s time had come.”

At a League of Women Voters campaign forum last night in Coos Bay it appears that John Griffith, running for reelection in the county commissioners race, misspoke. When asked about their largest donors, Griffith listed Seneca Timbers at $1,000 when in fact his largest donor is District 1 House of Representatives incumbant candidate, Wayne Krieger.

Bob Main correctly listed his largest contributor at $250.

Personally, it is hard for me to see whether Griffith will actually benefit from Krieger’s endorsement or whether Wayne Krieger will benefit from having endorsed John Griffith. It may be a lose, lose deal for both of them.

Meanwhile, Krieger’s opponent, Rick Goche was canvassing on my street yesterday and I saw a press release stating that he has knocked on his 1,000th door. He reached that milestone right here in Coquille.