The FORVM is a great place to learn about issues that affect your business. It is also a great place to have your voice heard and to give input into the policy approach the Chamber ought to take. However, we know that many of you - try as you might - cannot attend this monthly meeting. As a result, you may feel left out of the process. Our goal is to make sure we hear your voice and that you have adequate opportunity to give input.

Last week, the FORVM addressed some of the chronic budget issues that the Duluth Fire Department has experienced. Our perspective is the department should work to reduce costs while at the same time offer good service. Guests included: John Strongitharm (Fire Chief), Erik Simonson (Fire Marshall, Fire Union Steward and Spokesperson), and At-Large City Councilor Jim Stauber (long time critic of the department).

The outcomes of the FORVM's discussion included the need for continued dialogue and critical study. Chief Strongitharm - an excellent advocate for his department - pointed out that the department has already reduced costs over a period of years and it bears the cost of building inspection, something other departments don't always do. He made a case that the department has significant challenges, including geography and a model of public safety that drives a certain level of staffing. The chief also purported that 24 hours shifts were necessary to allow for 3 hours of training per day.

Councilor Stauber - always the financial reformer - challenged the department to do things differently, while providing good response time and fire protection.

Erik Simonson - a downright decent person - relayed the detailed and specific challenges fire fighters face, including high OSHA standards and a higher than normal need for safety.

All three gentlemen made great points.

At the end of the discussion, we at the Chamber continue to maintain the department should become part of the budget solution.

The whole matter is complicated by the department's political activism. They have publicly worked to influence local elections. They, in fact, outspent every special interest group in Duluth in the last municipal election.

This is not to say the department has participated in any corrupt or illegal activities. Rather, that kind of activity is unbecoming and seemingly puts their interests above those of Duluth's citizens. This should not be so - the department should end its political activities and fire fighters ought to participate as any regular citizen might participate. Their group approach to politics smacks of self-interest.

Lastly, the blogs and FORVM spurred intense interest from members. This issue ranks in the top three response generating issues in my tenure - almost nine years - at the Chamber. The emails and calls ran 125 to 1 calling for reform. While this is, of course, nice to hear, the real issue of how to accomplish reform remains. Clearly, it is time for the city to take a long term approach and ask what model of public safety and what level of service is adequate to protect the citizenry. For instance, should the department respond to every medical call and what are our doable options? Are twenty four hour shifts something we can continue to afford?

Clearly the FORVM and blogs brought out strong feelings. However, as one member put it: we must find a way to find an independent authority to do a thorough review of the department and either leave things as they are or suggest change. Once that happens, the department, the administration and the council should have no trouble supporting the status quo or adopting change.

We think this message is important. City budgets drive taxation. Too much taxation and you punish business. When you punish business you punish employees. We are in this together. We must find a way to get it done. If you agree, email the mayor, the chief, or the council and tell them it is important we get the best city services for the least amount of money.

On July 31, a full page editorial appeared in the Duluth Budgeteer News. The editorial was authored by Erik Roadfeldt, the City of Duluth firefighters’ union secretary. In the editorial, Roadfeldt explains the arduous days of firefighters, who often go without sleep due to demands of the job. He also takes City Councilor Jim Stauber to task for questioning the department’s actions and expenditures. One ought to be careful about the message he or she sends and the message others receive.

The editorial spelled out the overwhelming demands of the fire department when they are required to work twenty four hour shifts. The editorial implied that Stauber and others should not question the Fire Department’s budget and practices.

The department ought to practice what it preaches. Late yesterday, I witnessed twelve fire department personnel soliciting donations from motorists at the intersections of London Road and 40th Ave East and at Superior Street and 27th Ave West. They were all in full uniform. The group on London Road also had two fire rigs parked within eyeshot. Firefighters at both locations wandered in and out of traffic to collect monies from passing motorists. Clearly these firefighters were on the clock and using public equipment, while sacrificing sleep time, to gather money for a charitable group.

Don’t get me wrong. I have some favorite charities and I occasionally solicit the purchase of a raffle ticket from a co-worker, but it is simply wrong to exploit a publicly owned service like the fire department to solicit money. First, the department, I am assured, has a strict policy against using fire rigs on non-essential business. Using the rigs as a transport vehicle clearly violates department policy. Secondly, taking twelve fire personnel away from much needed rest could and may endanger public safety. Lastly, leveraging the good reputation of the department to collect charitable money - while at the same time trying to enhance their own image – is, at best, unethical. The short term gains of their activity outweigh the public good.

Some may say that I am nit picking. I may well be. However, the department purports that any funding cuts will slow response time. Mr. Roadfeldt complains about lack of sleep on twenty four hour shifts. Perhaps the department – at a minimum – ought to figure out its priorities while elected and members of the public challenge them to provide the best service possible at the lowest price they can.

At the Chamber’s upcoming FORVM, September 2, 2008 at 8:00 AM in the Playground Theatre at the Technology Village, we’ll talk with Mayor Ness and City Councilor Jim Stauber about the fire department. If you agree or disagree with this posting you are welcome to attend and have your voice heard. As always, I appreciate hearing from our members. If you would like to offer me your feedback, I can be reached at apeterson@duluthchamber.com or 218-740-3752.

How come every time the city looks at making budget cuts the fire department circles its fire trucks and claims it cannot be touched? This is evidenced in letters to the editor, op-ed pieces, and statements to the media stating that if budget cuts are enacted the fire department will have slower response times. Longer term defensive efforts have included political action - so much so that their political action committee outspent every other group in the last city election cycle ($39,766 to help elect friendly candidates). They are serious. Any threat to their budget or way of doing things will evoke an immediate and defensive response.

Witness the recent op-ed piece by Erik Roadfeldt in the Budgeteer News: Taking a look at what firefighters do in a day. In the article, Roadfeldt chronicles a 24 hour shift on July 31, 2008 and excoriates City Councilor Jim Stauber for his long standing promotion that the department can operate more efficiently. Clearly the intent of the article is to reinforce the department's intrinsic value to the community and the sacredness of its budget. To those who dare question, even if they are elected to watch over public money, the message is: do not dare question us.

What is unfortunate, is by taking this approach, the department is unwilling to entertain ideas that the city can get more from the department at a lesser cost. Roadfeldt, in his article, laments the long hard hours he puts in without uninterrupted sleep. He makes a point. Twenty four hour shifts may be too taxing for anybody much less those who have life saving responsibilities and extreme physical demands. Why not follow the lead of other life saving professionals such as police officers or nurses? They work eight or twelve hour shifts and do not have to make arrangements to sleep on the job. If Roadfeldt and his colleagues worked shorter shifts they would be more rested, they could spend more time with their families and the city would save money. Ultimately, more rested fire personnel can respond quicker, more effectively, and the city would get eight or twelve hours of work out of a fire person rather than having to budget the expense of providing time and place for employee rest. It works for cops and nurses - why can't it work for fire fighters?

Mayor Ness has made difficult decisions in his short time as mayor. He will have to make many more before his term is done. Having one department immediately state they will be compromised by any cuts is ludicrous. Having that same department work the political system to ensure that elected officials who think taxpayers deserve the best services at the lowest possible price look bad - because they are concerned we get the best possible services at the least possible price - is crazy.

Let's be honest here. There are ways to have effective public services - including fire protection - at a lesser price. To do so, we have to stop circling the fire trucks every time the department sees a change coming. Tell your elected officials that you want the best value for your money. It will not be easy or painless but when we get there we'll send the message that Duluth can adapt, we can solve our own problems, and we are open for business.

You can let your city councilors know how you feel about this issue by emailing them at council@duluthmn.gov.

I thought the whole fee for fire and police service thing was crazy. Mayor Ness was smart to pull it off the city council agenda. People would have revolted, given the fact that we already have the most expensive fire department in the State of Minnesota. Giving more revenue to the fire department is like adding gasoline to a fire - the fire does not need more fuel. Rather, the fire needs careful supervision to make sure it is contained.

To be sure, this writer is in favor of assuring public safety. I, like every citizen in Duluth, want the fire truck to come when necessary. However, there are ways to make sure we all have adequate protection at the cheapest possible price. The rub lies in thinking that the department cannot operate without increased revenue.

Complicating the matter are politics. Some elected officials, in the last municipal election, were endorsed by the firemen's political action committee (PAC). In fact, the firemen's PAC outspent any other special interest group to assure their interests were protected. As a result, threats to their funding - even if the city can find ways to provide the same services at a cheaper price - result in political chips being called in. It sounds ludicrous, but this kind of political activism breeds a certain tyranny that demands attention from elected officials.

I cannot blame those running for office for asking for support. Nor can I blame fire personnel from engaging in political activity. After all, it is the American way. However, bringing this dynamic to light often causes great angst - yet, it must be done in order to do what is truly right. Once the dynamic is exposed and the tyranny broken, we'll be free to bring reform to any city department needing reform.

The Chamber is committed to making sure additional investment in government is provided only when government demonstrates responsible spending. This is not to say we are against a government entity gaining additional revenue but we oppose it when cost savings and efficiencies are clearly available. We think this is the case regarding the fire department. There are multiple ways we could provide the same service at the same or lesser price without people losing their jobs or even damaging their qualities of life. In addition to suggestions already proposed additional savings could come from:

1. Establishing a department of public safety that oversees both the police and fire department
2. Reduce rescue vehicle size, staffing from 3 to 2 and utilize St. Louis County Rescue whenever possible
3. Reduce hall staffing to only two
4. Implement 12 hour shifts and eliminate overtime
5. Limit use of city vehicles to city business
6. Eliminate non-essential medical responses
7. Start implementing supplemental volunteers as first responders

I'm sure those potentially affected will feel attacked by these proposals. However, given the business climate slowdown, the state's tax shortfall, and the need to save our city money, these savings would be appreciated. Again, we're not suggesting that we gut the fire department or fire workers. We are, however, asking the city to make decisions that any business would given the current climate. If we don't make these changes, we will all pay higher fees and taxes in tough economic times. And that would punish businesses and eliminate their abilities to provide jobs for people in our community.

Don't be thrown off by rhetoric. Tell the mayor and city council you will support them if and when they make difficult decisions regarding the fire department. After all if they don't make these kinds of decisions now future elected leaders will have worse decisions to make in the future. You can email the council at council@duluthmn.gov.

Last week, a press release sent out by the Chamber - and endorsed by me - listed Councilor Reinert as someone who declined an invitation to appear at the FORVM on Tuesday, January 8, 2007 at 8:00 AM. Councilor Reinert expressed his disappointment in seeing his name listed among others who also declined the invitation to participate in our discussion about the utility rate increases.

At tomorrow's FORVM, we will be discussing the utility rate increases. Clearly, the Chamber is concerned that recent rate increases are too high and that our support to raise the rates - as part of the solution to solve the retiree health care crisis - is being taken advantage of. Our rates for gas and water are now some of the most expensive in Minnesota, and, perhaps, some of the most expensive in the entire upper Midwest. Add rate increases to recently announced property tax increases, and it is not hard to see that government is starting to consume a large proportion of the available air, making it difficult to breath for those on a limited income and for businesses who cannot easily pass along those costs.

Reinert's dissatisfaction with being listed in the press release is not entirely off base, as it may look like he's trying to duck the issue. We know, however, that this is not the case. Yet, we still believe the city should have made a better case for increasing rates - or at least the increased portion of the higher rates that went to operations. If it seems we unfairly singled out Councilor Reinert, we apologize.

We also invited Jim Benning, director of public works, to participate in Tuesday's discussion at the FORVM. As the director of public works, Mr. Benning is intimately involved in setting rates and controlling costs within these departments. We were disappointed that Mr. Benning declined our invitation to participate, citing building safety official Duane Lasley's previous experience as reason to not attend.

To be sure, Mr. Lasley faced an angry crowd, comprised of contractors, architects, business owners, and citizens alike. Members of the crowd felt that they suffered silently for some time, and saw the FORVM as the perfect opportunity to voice their opinions publicly. Those who offered their opinions were direct. Nobody was disrespectful. Mr. Lasley got into trouble when he lost his temper and displayed gruff behavior. Given a "do over," we can all be sure he would have acted more politely. This, however, does not excuse highly paid city staff from addressing those who want an explanation as to why they are paying the highest rates for utilities in the State of Minnesota.

We hope that you will attend the FORVM. It is time we ask government to justify their increased costs. After all, business owners and operators, in the form of competition, have to justify their costs or risk having their customers spend their dollars elsewhere.

I wish to thank Mr. Reinert for the courage and forthrightness to address his concerns directly and encourage him to do so in the future. Unless we can talk forthrightly as citizens to our appointed and elected officials, how can we expect government to do anything but pass along higher costs and be told simply that it comes with the territory?

Attend the FORVM tomorrow, Tuesday, January 8, at 8:00am, and have your voice heard.

The FORVM
Tuesday, January 8
8:00am - 9:00am
Playground Theatre - Tech Village, First Floor

Every once in a while, it's good to be reminded of an old adage: "Fool me once, shame on you. Fool me twice, shame on me." The fourteen point city council task force recommendation to solve the city retiree health care crisis was released nearly two years ago. The report was hailed as great work and endorsed by all. And when I say all, I mean all, including AFSCME. Somebody ought to remind the leadership of AFSCME that, along with the Chamber, they endorsed the report.

Knowing full well that member businesses would feel real pain, the Chamber's board of directors passed a resolution that supported the ensuing tax and utility rate increases, as dictated by the task force recommendations. While the taxes were not immediately raised, utility rates increased significantly.

Yet AFSCME leaders continue to exploit the situation, now claiming that employees have the right to work without any reduction in hours - even when city finances might be in crisis or there is no work to be done. And the rest of us continue to feel significant pain. Shame on us if we let AFSCME get away with such a gross abuse of its stronghold.

What business would employ workers if there was no work? Who gets a job for life? When business falls off, most companies lay off workers. Seemingly, the only people with such benefits are American auto workers and employees at the City of Duluth. History has shown that this model has not worked too well for the car companies; and it will not work too well for the city of Duluth either.

You should be outraged that your business will certainly face higher taxes, utility rates, and fees, while, at the same time, city services will be reduced. While you adjust your bottom line downward to accommodate the added expenses, AFSCME leaders will continue to rally their members to say the city is unfair because employee hours should not be reduced unless workers want them to be reduced.

On Monday night, November 19, the city council will meet to vote on the contract, regardless if the rank and file union member has approved the contract. This is a good thing. If the contract passes, union leaders will be forced into a situation wherein they will have to let their members vote. Effectively the vote will bring the situation to fruition - we will know if AFSCME is part of the solution or the problem. We need to hold AFSCME accountable for their promises. If we don't, we'll only have ourselves to shame.

Email the city council at council@duluthmn.gov to tell them to vote in favor of the contract.

Enough is enough. If our "partners" (AFSCME) in this challenge are not willing to come to the table, please lock them out and hire someone who will. The future of the entire city is on the line, not just that of a few.

The Chamber wants its employees to think and act innovatively. The best case scenario for the Chamber is to lose an employee because he or she started his or her own business. That said, the Chamber does not support employees who use their positions to further their own personal businesses, especially when done at the expense of a member business. Should an employee start a business, he or she ought to work the business on personal time and private property.

Enough said.

The City of Duluth, however, is somewhat different. The fire department has a non-profit working within one of its buildings that competes directly with many small businesses in our region. This business is Fireman’s Mutual Aid (FMA), a thinly disguised altruistic organization that works within the fire department and uses every competitive advantage it can to sell its products to the city and to private business. According to documents received in our office, FMA allegedly pays no rent, no utility bills, and when selling their services, representatives can wear their City of Duluth Fire Department uniforms. Certainly, any small business would envy such advantages.

Although the arrangement between the fire department and Fireman’s Mutual can be considered somewhat altruistic – because the FMA donates a portion of its monies to charitable organizations – the situation actually hurts both the city and private business. Government is hurt because this kind of arrangement damages the business climate. When word of such operations gets around, notions that Duluth is a difficult place in which to do business and that certain parties get special privileges are reinforced. Arrangements such as the one between the fire department and FMA, can lead to corruption and insider trading. Tax collections are also affected – when businesses face unfair obstacles they are less able to expand and pay fewer taxes.

The negative effects arrangements such as the one described have on business are glaring. When private business has to compete with a quasi government organization, it has less to invest in maintenance, hiring, and expansion. It would be no different than a malnourished man entering a sumo wrestling contest – the contest is weighted on the wrong side of the ring.

Government employees have a role to play in our society and we have an obligation to pay them accordingly. They do not have the right to exploit publicly owned assets – the good reputation and physical properties of the fire department - to run a privately held company to the disadvantage of locally owned and operated small businesses.

You should be concerned. The city ought to root out such injustices. They ought to call in an independent auditor/investigator to set things straight. They should end the practice of allowing government to compete with small businesses.

You should act – both mayoral candidates and all the city council candidates have indicated they want to do what is right for our city. Ask each and every one of them what they would do to right this situation. It is our duty to you, as our member, to bring this situation to your attention. It is our collective duty to act. Unless we do, Duluth will continue to have an anti-business reputation and small locally owned business will continue to face unfair competitive advantages from the very government we pay taxes to fund.