The One-Rule Test

I was pleased that the City of Chico Arts Commission set aside their draft policy that would have called for private property owners to include a public art component in their projects to the tune of 1% of their total project costs. Citing the current economic climate (which most of us agree is lousy) the Commissioners decided to table this proposal for now. We are relieved to not have to fight this ill-conceived idea, there is so much else we need to be doing!

I have an idea! I actually have ideas quite often, but many of them are either too difficult to implement, or are just plain nuts. Either way, if I could find a way to get paid PER IDEA instead of having to achieve actual results, I'd be rich. I'd also likely be an elected State official...but I digress.

This idea could actually work, simply because it's so simple! It's called the 'One Rule Test' and, if applied by all government officials and staff, would solve our economic problems lightening fast.

I'm a dyed-in-the-wool member of Rotary. We do a lot of great work in our community and in the greater world and I'm proud to be part of the group. For those of you who think Rotary is just a bunch of old guys sleeping through their lunch program every Tuesday, you would be in for a surprise. (Actually, only about 10% of our members fall asleep after lunch, depending on how good the speaker is.)

Rotary has a fabulous standard by which we test all the things we think, say and do. It's called The 4-Way Test and it goes like this:

"Is it the TRUTH? Is it FAIR to all concerned? Will it build GOODWILL and better FRIENDSHIPS? Will it be BENEFICIAL to all concerned?"

Now certainly, nobody is perfect. But Rotarians believe that if they hold to the standards of The 4-Way Test, our business dealings, our community service and our overall lives will benefit. It is from this model that my idea springs, although I've shortened the test from FOUR things to just ONE thing to make it easier to remember and apply.

So here's the idea. Government, at EVERY level, must ensure that every piece of legislation considered, every policy penned, every Bill read, must pass the One-Rule Test. And that One-Rule is....

HOW MANY PRIVATE SECTOR JOBS WILL THIS PROPOSAL CREATE OR SAVE?

See how simple that is? It's quick. It's easy to remember. It's easy to apply. If the answer is NONE, the proposal goes immediately to the shred box...Do Not Pass Go...Do Not Collect $200.

If the proposal does create private sector jobs, it can be considered and will be given more weight as the number of jobs it creates increases.

Imagine how efficient our State legislature could be if they weren't wasting time on proposals that do not create or save private sector jobs! Imagine how much more efficient our own City staff could be if they weren't chasing the whims of appointed commissioners looking for ways to make their mark on the community. Apply the simple One-Rule Test. If it's not going to create private sector jobs, it's not going to get done. Period.

I think that if our government would hold to this 'One Rule Test', our economy, our tax base and our overall lives would benefit.

Here's where I have to get serious and specific about this. It is critically important that folks fully understand what will get us ALL out of this mess. It's job creation in the private sector, pure and simple. Private sector jobs create wealth that in turn create taxes that in turn employ government and support social services.

Unfortunately far too much of what government proposes, while it sounds good on the surface and might make some people feel good, in reality does nothing more than suck more money out of private business, money that could be better spent to create more private sector jobs and in turn create more tax revenue.

So there you have it. The One-Rule Test. I think it's an idea whose time has come.

Looking for Art in all the wrong places...

Chico is an artsy town, no doubt about it. Creativity abounds and we all love that. And while me may at times disagree about a particular piece of art (especially when it's public art), I think we do all agree that art in-and-of-itself makes the community a better place to live and do business. No argument there.

A lot of folks go the extra mile to make sure that Chico's art culture is well represented and we should appreciate their work. It's clearly impossible to make everyone happy all the time, especially when public funds are being used to create public works of art. But those folks do their best to present Chico in the a good light using public tax dollars collected through the RDA. (I don't have space here to explain how the RDA works, so if you really want to know call the City).

Many private property owners voluntarily include works of art in their new developments or remodels of existing property. We should be very appreciative of that as well. In fact the Enloe Hospital expansion project incorporates several art components into the project. We can't wait to see those finished!

The system is working well as it is, which is why the Chamber of Commerce is in strong opposition to the new proposal by a subcommittee of the City Art Commission that would REQUIRE private property developers to include public art equal to the value of 1% of the total project costs in their projects whenever total costs exceed $1,000,000.00. (Yes, that includes housing projects too). There is a caveat that if you don't really WANT art on your project, you can just pay the fee and let the City put some art somewhere else. We're not consoled by that caveat.

Well heck, it's only 1%, and it's only on really big projects...right? Besides, you can buy your way out of it, so what's the big deal?

This is a big deal folks, and it will take a few minutes to explain all the various downsides to this proposal, so bear with me with a bit.

Make no mistake about it, this is a new tax levied against property owners.

First and foremost we must understand that public art will NOT increase the value of a project from a financing point of view. It's lovely to look at but it will do nothing to increase the appraised value of the property. Commercial property values are determined by the income that can be derived from the property in the form of rents. Rents won't increase because you include a piece of public art on the building. (If you're building a million-dollar home, it may actually reduce the value because now any potential buyer has to love the bathroom tile and the statue in the front yard!)

Because the art won't increase the appraised value, the costs associated with creating and maintaining the artwork cannot be included in the financing of construction costs. That means this costs is a direct cash expense to the property owner, one that cannot be recovered through the cash flow generated by the project or through a future sale of the project. It's just another cash expense added to an already expensive project.

$1,000,000.00 doesn't buy as much development as it used to. In fact there are very few commercial projects that can be created for less than a cool million these days. Even at 1%, this added cost for art can be a significant barrier to a new project, one that most property owners can ill-afford.

Secondly, the program creates another level of bureaucracy that must be navigated in order to proceed with a new project or significant remodel. Trust me, that is the LAST thing anybody needs right now.

Jobs are created through private investment in our community, especially the private investment that occurs when property owners develop their property. This proposal is a significant disincentive to that investment.

It's a poor idea that comes at the worst of economic times. City government should be working to create an environment conducive to the private investment and job creation necessary for the long-term stability of our community. (Heck, all levels of government should be doing that but we'll concentrate on the City for now). This program works against those goals in a big way.

We'll be opposing this proposal when the issue comes up at the Commission level, and if necessary at the Council. We urge you to do the same.

Our message....."We like art...we like the system the way it works now...enough already with the added taxes...!"

"Good morning Caller...you're on the air"

I've become one of those people. Yup...I phoned into a national radio program. Not because I wanted 15 seconds of fame, but because they asked a question that was intriguing. So I called in and talked to "Big D and Bubba".

The question was "If you could hook up your spouse to a lie-detector, what question would you ask"? Of course, they ruled-out a couple of questions that they didn't want to hear on the radio which would have resulted in way too much information, even from people you don't know.

Even so, some of the answers were just lame. So I called to give them my anonymous 2-cents worth. I told them that "I would ask how I could best make him happy every day for the rest of his life".

Now please understand...I'm no saint, and I'm certainly not a Stepford Wife. I'm just really practical. From my point of view couples that work to make each other happy stay married. Simple as that. And because I'm going to be working to make him happy, I want to make sure I'm not wasting my time on stuff he doesn't really care about. (There's that practical thing again.) It just makes sense to me that I find out what works and concentrate my efforts there.

I think most people would be much happier in ALL their relationships if they took that advice to heart. Work hard to make other people happy, and concentrate on the stuff that works. Sometimes that means you need to ask.

I feel the same way about my work. Businesses that choose to participate in the Chamber of Commerce have entered into a partnership (relationship) with us and it's important that we work hard to make them happy in that partnership. But how do I know what makes them happy?

It would be easy to do what we've always done and just call it "good". But like the answers I heard on the radio that morning, that seems pretty lame to me.

I would rather reach out and ask the questions. "What do you need?" "How can we help?" "What makes a difference to you and what doesn't?"

Particularly in these challenging economic times, nobody has the extra staff, money or energy to do things that don't really matter to the people you share relationships with. I know I don't.

So...I'll just keep asking. What is it we can do to make you happy every day?

Better Late Than Never

The good news from the State of the Union Address last night was the President Obama's assertion that jobs will be the number one focus of the Administration in 2010. Thank heavens. Washington is at least a year late coming to the party, but at least they've finally sent their RSVP. Hope springs eternal that they will pick up the jobs banner and run like the wind. Creating long term, sustainable private-sector jobs is the only sure way out of this economic mess.

This has been the Chico Chamber of Commerce message for decades. Successful business makes everything else possible! So in case any of them are listening...we don't care if it's an election year for you or not...roll up your sleeves and get some real work done to help the private sector create some jobs. Stay focused and get it done. Millions of jobless American's are counting on you.

We can only hope that Sacramento was listening too! California legislators are notorious for creating legislation that makes it nearly impossible for private business to easily succeed. The most recent example of this is SB 657 (Steinberg-D). This bill would mandate that "every retail seller and manufacturer doing business in this state develop, maintain and implement a policy addressing the eradication of slavery and human trafficking from their supply chain." Holy Cow.

The Chico Chamber of Commerce opposes this bill. I am confident that the business community collectively opposes slavery, human trafficking and the abusive treatment of workers. However, this legislation makes California employers responsible for the actions of businesses with which they have no contractual relationships, usually located in other countries.

The legislation also calls for the formation of a new commission of political appointees, whose authority includes charging fees to California companies they find non-compliant with the rules they create. Hmmmmmm.

This is exactly the type of legislation we are talking about when we call for the elimination of burdensome, punitive, expensive laws that make it so darned unattractive to do business in California.

How bad does the economy have to get before Sacramento begins to understand that they are they are not only killing the goose that lays the golden egg, they are cooking it and serving it up on skewers! For goodness sake...stop the madness...we can't afford it anymore!

Successful business makes everything else possible. Come on...say it with me....SUCCESSFUL BUSINESS MAKES EVERYTHING ELSE POSSIBLE.

Can you hear us now?

Disappointed and Concerned

On Tuesday night this week, the City Council filled two important posts on the City's powerful Architectural Review Board (ARB) and Airport Commissions. I was disappointed to learn that a very qualified, long-time resident of Chico with years of experience in landscape design was passed over for the spot on the ARB. The reason he was not appointed, according to news reports of the interview process, was the potential for conflicts of interest that may arise if he serves on this board.

I'm sure the young woman appointed instead is bright and dedicated, even if she has absolutely no experience in the field of architecture, design or visual arts. But that isn't why I'm concerned.

It appears at first glance that folks who operate private business are now unilaterally ineligible to serve on Boards and Commissions based on the fact that their private business may, at some time or another, cause a conflict of interest with the work for the City. That's a bunch of hooey!

It's important to remember that City Boards and Commissions are set up to represent a cross-section of the community and serve as a bridge between average citizens and paid City staff and elected officials. It's critical that these Boards and Commissions are fully representative of the community through the 7 people who fill the seats. Right now it feels like the voice of business is being slowly eliminated from some of the critical decisions being made.

I served for 8 years as a member of the City Planning Commission during which time I was employed by a locally owned financial institution. From time to time, one of the banks clients would have a project before the Planning Commission. When that happened I would disclose the conflict of interest and excuse myself from the vote. Simple as that.

It may have happened more often than some people liked, but I will tell you that I participated in far more decisions than I sat out on, and I believe I brought a lot of real life, professional experience to the Commission.

It seems now, however, that the Council sees any potential future opportunity for a conflict of interest to be an eliminator in the appointment process. That situation then begs the question...who DOES remain eligible to perform this important community function?

If citizens who work in private business are excluded, that leaves only government employees, students or retirees. Certainly including a mix of those folks in these important jobs is perfectly fine, but leaving private business out altogether is just wrong.

It's difficult enough to find qualified, bright, dedicated folks who are willing to give of their time and energy to serve in this capacity considering the long hours they already work to keep their business successful enough to continue paying their employees and meet their tax burden. When one of them steps forward we should be celebrating the gifts they bring to the table, the constituency they represent, and their willingness to do what's right for our community.

Instead we tell them "thanks, but no thanks".

I admit I haven't spoken to any of the Council members directly to hear their explanation of this decision. I'm sure I will in the days/weeks ahead. In the meantime I am certain that I'm voicing the views of hundreds of folks employed by private business who increasingly feel shut out of the process.

It's one thing to listen to the voices of private business and disagree with their concerns. It's something entirely different to exclude them from the conversation in the first place.

That's just plain disappointing.

Things We Value...Part III

I continue with the discussion of Chamber values started several posts ago. You'll recall that our Board of Directors met in late October for our Annual Planning Session, determining the Top 3 Things We Value. In my last post I reported that we value being the respected voice of business in Chico.

We also value Partnership and Participation with our members. This seems rather obvious but deserves to be explored nonetheless.

A good place to start might be to discuss what the Chamber of Commerce is NOT. We are not an advertising agency although you can find some unique ways to promote your business to other Chamber members. We are not a regulatory agency, although we seem to be the first call folks make when they want to complain about a business or the City. We are not party planners, although we do throw a good Mixer!

What we are is an association of businesses, banded together to promote a climate where business can thrive. We support each other, promote ourselves within our group, debate the issues of the day, give each other the benefit of our knowledge and skills, share our successes and our challenges. That's the 'Partnership' part of this value.

So...what's the 'Participation' thing all about? To put it simply, we believe that many hands make light work. Partnership in the Chamber can't be a one-sided affair. We can't simply take your membership dues and never deliver anything you value. You expect more than that from us.

On the other hand the Chamber expects your participation as well, because honestly that's the only way to ensure you're getting the best value from your investment. There are so many ways you can participate besides the obvious Mixers, Annual Dinner and BBQ's. You can offer to train other members in your area of expertise. You can become part of our committee to track State legislation and City policy. You can help welcome new businesses as they become partners in the Chamber. You can serve on our Board of Directors. You can just offer feedback when the mood strikes. It doesn't much matter how you participate as long as you do.

I sense a new culture emerging in our nation. Actually, it's an old culture that is re-emerging. It's the culture of responsibility. For a very long time it seems that we were operating in 'fat, dumb and happy' mode. Everybody was making money. Success came easily. It was the norm to keep your head down and plow ahead, letting everyone else take care of themselves.

Most everyone has been generous with non-profits that assist children, families in need, the hungry, etc. But I'm not sure that the sense of responsibility carried over to helping each other in business, particularly not among those who compete for the same customer. Clearly there were exceptions but by-and-large, if you are in business you were pretty much on your own.

Now I'm sensing a resurgence of responsibility to our business community, and to each other. I want to foster that culture. Being responsible for and to others is a good thing. Encouraging that culture of responsibility is our challenge in the coming months.

I believe that part of that responsibility is to be a partner in the Chamber of Commerce. It seems to me that we are quite similar to Public Television...everybody benefits but only a few responsible folks pay for the service. I hope to change that. I would like to see everyone sharing the cost of the important work that the Chamber does day-in-and-day-out. Now more than ever making sure that the voice of business is heard is critical. Who's speaking for you?

Chamber Values Part Duex

My last post referred to the Chico Chamber of Commerce Planning Session where the Board of Directors discerned the Top 3 Things We Value. I promised to elaborate on these things but have been neglecting my blog again. Thank goodness for my friend Valerie Reddemann, President of Greenfeet.com, who continues to urge me to get-off-the-dime and blog!

The Chamber values being the respected voice of business in the community. Representing the needs of business locally is at the core of our existence and it is something we will always take very seriously. Sure, we love ribbon cuttings, mixers and promoting the various businesses that do business in Chico, but we will always point back to our undergirdings of advocacy as the real reason we're here.

Think about it...who is speaking for your business? Probably lots of folks. Your loyal customers and fans. Your advertising agency. Your mother-in-law. They are all out there giving you a shout-out whenever they have the chance, talking up your products and service as the best in town.

But who's representing you with decision makers? Who's representing you at City Council meetings late into the evening. Who's writing letters to Assemblyman, Senators and the Governor reminding them that business drives the economy?

The Chamber of Commerce does that.

I think it's important for lawmakers to be reminded often how important business is to the community. In fact, one could argue that without business, there IS no community. That's a message that can't be repeated too often.

Take a look around. Everything you see is the result of a successful business. Take a mental trip with me around town and I'll explain.

Every building, every road, every street lamp, every school, every piece of public art, even every park, is the result of successful business. In the case of most of the buildings you encounter, they were built with private investment, usually by a business. Even private homes were originally built by a developer who stuck their neck out, bought the materials, built the house, and sold it to a homebuyer. Sure, they made money doing that but that's why they take the risk in the first place.

In the case of public buildings, infrastructure and parks, those too are the result of successful private businesses paying taxes and hiring employees who also pay taxes. Without the tax dollars made possible by successful businesses, the maintenance of our public holdings is impossible, as is hiring public employees to do that work and in turn pay taxes on their own income.

It's all too easy for government leaders to forget that government doesn't create the wealth that turns our economy. They simply collect it and spend it. If you take successful business out of the equation, there is no more money to spend. No more roads, no more public art, no more schools...well, you get the idea.

The Chamber of Commerce will always be there reminding decision-makers of this basic concept. Successful business is what makes everything else possible, so let's make it possible for business to be successful.

We value the opportunity to perform the critical function of being the respected voice of business in the community, and we welcome your partnership as we execute the mission.