Twelve Apply for Sisters Economic Development Manager Job

(This article appears in the 8/24/10 issue of the Nugget Newspaper)

By Bill Mintiens As of the deadline on Friday, August 6, EDCO (Economic Development for Central Oregon) received 12 applications/résumés from people interested in the position of part-time economic development manager for Sisters, according to Erin Chaiet, EDCO operations manager. The Sisters City Council budgeted and approved $30,000 for the 2010/2011 fiscal year for the position. It will likely be at least the middle of September before a person (or firm) will be chosen to fill the position, an independent contractor's role, which runs through June, 2011. The need for the position, the actual position description, and the reporting structure have been controversial for several months. EDCO, having been asked by Mayor Kellstrom to "take the reins" regarding the position description, hiring process, and interview panel, began posting ads Thursday, July 22. EDCO directed people to a detailed online position description at www.edcoinfo.com, stating that "the independent contractor will provide staffing of the Sisters Business & Attraction Team (SBART) and coordinate with the City of Sisters and EDCO to provide economic development services for the greater Sisters Country area." When asked if all the city councilors had reviewed and agreed to EDCO's advertised position description (including reporting structure, goals, office location, etc.), Mayor Lon Kellstrom said, "No, they haven't. My choice was to keep the council out of it in favor of an arm's-length relationship in the hiring of the economic development director. We need an arm's-length arrangement, through EDCO, to keep the council out of trouble. We don't want to be accused of using public funds to hire a 'friend' of the council." The mayor was referring to Mac Hay, volunteer chair of SBART (Sisters Business Acquisition & Retention Team), one of the 12 candidates for the position. Councilor Sharlene Weed is not happy with Mayor Kellstrom's actions regarding the hiring process for Sisters' part-time economic development manager. "I spoke with Lon (Mayor Kellstrom) and he maintains his position that it was fine to move forward because the council would have an opportunity to ask questions and give final approval (to EDCO's recommendation on a candidate)," she said. "I really don't understand why he has chosen this approach. I don't see what he gains. And... the town loses by not having a rich discussion of the possibilities and arriving at a fully fleshed-out plan for the position. Now it appears that a person will be hired prior to council's approval and we will be asked for a rubber stamp. It's disappointing." When asked about the people comprising the interview panel, Roger Lee, EDCO executive director, said, "Some of people we'd asked to be part of the interview panel have not been all available all on the same day so we've had to change the schedule several times and mix of volunteers. It is a difficult time of year for scheduling." Mayor Kellstrom said recently, "We (the council) purposely stayed out of the choosing of the panel." Councilor Weed is not impressed. "I asked Lon who was on the interview committee... he said he didn't know." EDCO funds and manages economic development director positions in Redmond, Prineville, and Madras. Successful programs in both Prineville (acquisition of the Facebook facility) and Redmond (Altrec, T-Mobile, and several other businesses) give EDCO experience and credibility with hiring and management. When asked about the delays in this hiring process, Roger Lee, in an e-mail dated August 19, wrote, "There are a number of unanswered questions including when the person/contractor will be available, the council's approval, etc. I don't see the timing as a big issue, other than the fact that we would prefer to be at this stage at the very start of the fiscal year (July 1); the schedule will just have to be revised and with it, potentially, the expenditure. If approved, we are hopeful that a start date would be established later in the month of September." Apparently no one's in a big hurry to help Sisters recover from our state-designated "severely distressed community" status. Acknowledging the delay, Mayor Kellstrom said, "It just took a lot longer to formulate the position on EDCO's part and to cover all the legal aspects. The good thing about it, though, is that Mac (Hay) is still doing his SBART stuff." The city council has been on recess this month. Their next scheduled workshop and regular council meeting is scheduled for Thursday, September 9. "We are planning on taking this up on September 9 in terms of accepting the agreement (independent contractor agreement) and discussing EDCO's suggested candidate for the position. EDCO will likely make an offer to a candidate on September 10," said Mayor Kellstrom. So the 12 candidates will be interviewed over the next few weeks, a top candidate (or firm) will be chosen, and that person (or firm) will be presented to the council on September. In an e-mail dated August 17 to Mayor Kellstrom, Councilor Weed asked, "Can you please explain to me why EDCO is proceeding with this when the position has never been approved by the city council? I have never seen a plan for this position. I would like to look at different options - including a discussion with the fellow who contacted me a couple weeks ago who said his consulting firm could provide concrete deliverables for our town for less than $30,000. Please stop this process until the council has had a chance to weigh in." Other city councilors had the opportunity to comment on these issues but declined to do so.

Handling of Position Riles Councilors

(This article appeared in the 8/4/10 issue of the Sisters Nugget Newspaper)

By Bill Mintiens EDCO (Economic Development for Central Oregon) has taken the reins and posted an advertisement in several publications, including The Nugget, for Sisters' part-time economic development manager. The ads began appearing Thursday, July 22. The ads state that "EDCO seeks the services of a results-driven professional services independent contractor to fill a part-time manager role for Sisters." The Sisters City Council budgeted and approved $30,000 for the 2010/2011 fiscal year for a part-time economic development manager. The fiscal year started on July 1. EDCO directs people to a more detailed online position description at www.edcoinfo.com, stating that "the independent contractor will provide staffing of the Sisters Business & Attraction Team (SBART) and coordinate with the City of Sisters and EDCO to provide economic development services for the greater Sisters Country area. This 10-month, $30,000 contract-for-services period begins September 1, 2010, and ends June 30, 2011, and will be paid in equal monthly installments by EDCO with funding from the City of Sisters." The need for the position, the actual position description, and the reporting structure have been controversial for several months. The council, wanting clarification on the duties, responsibilities, and reporting structure of the position, turned to Roger Lee of EDCO for assistance. When asked if all the city councilors had reviewed and agreed to EDCO's recently advertised position description (including reporting structure, office location, etc.), Mayor Lon Kellstrom said, "No, they haven't. My choice was to keep the council out of it in favor of an arm's-length relationship in the hiring of the economic development director. We need an arm's-length arrangement, through EDCO, to keep the council out of trouble. We don't want to be accused of using public funds to hire a 'friend' of the council." The mayor was referring to Mac Hay, SBART volunteer chairperson, clearly a leading candidate for this new position. The mayor added, "We decided to move ahead with the posting and hiring process based on the strength of Steve Bryant's (Sisters city attorney) assessment of EDCO's independent contractor agreement (also found on the EDCO Web site listing)." The mayor's decision to move ahead hasn't set well with two councilors. "How can they advertise for a position that has not been approved by the council or the EDCO board? Puzzling," said Councilor Sharlene Weed. "Looks to be a bit of 'cart before the horse' going on. I have not seen a job description, reporting structure, measurable outcomes, etc. I was very surprised that the position was included in the list of items that the city manager would be authorized to initiate during council's recess (ending September 9). This list was handed to council at the last minute, with no time to review. It appears that, for some reason, the mayor did not want the full council to weigh in on this issue." Council President Bill Merrill was similarly surprised. "This is all news to me," he said. "As far as I can recall, the council as a whole has never been briefed on any of this. The only job description I have seen is the one Patty Vandiver presented on May 6 to the budget committee. In that, she indicated that the director would be the chairperson for SBART. "The EDCO piece indicates that the person will be an independent contractor who '...will provide staffing of the SBART and coordinate with the City of Sisters and EDCO.' The Independent Contractor Agreement referred to at the bottom of the piece states 'The independent contractor will be free from direction and control...' but indicates EDCO will specify results. Whatever all that and more means, I haven't the faintest," Merrill said. Commenting on the entire process of selecting, interviewing, and the eventual reporting structure, Mayor Kellstrom added, "It's unlikely that the person will report to the council because we're not economic development people. The interviewing panel will be two or three people from EDCO and a couple of people from Sisters." Regardless of the person or firm chosen, it could be as many as four months into the fiscal year before measurable goals are defined for the position. The independent contractor form states: "Specific performance measures and deadlines for the 10-month period of this agreement will be developed within the first 60 days following execution of this agreement with the contractor, representatives of SBART and EDCO with review and/or input by the Sisters City Council." That leaves July through (potentially) October without a paid person concentrating on economic development challenges. "It just took a lot longer to formulate the position on EDCO's part and to cover all the legal aspects," said Mayor Kellstrom. "The good thing about it, though, is that Mac (Hay) is still doing his SBART stuff."

City Wins Gas Tax Fight in Court

(This article appears in the 6/8/10 issue of the Nugget Newspaper) Judge Alta Brady ruled last Friday that the City of Sisters' gas tax is legitimate. That means Sisters gas stations owe the City of Sisters the three-cents-per-gallon gas tax for the period of April 9 through April 30, 2010. The due date for their first payment was May 25 but, to date, only two stations in Sisters have paid their bill. Both of the Shell gas stations have paid their bills, sending payments of approximately $1,100 and $1,200 to the City of Sisters. The remainder of the stations, Sisters Pump House (McMeekin Enterprises), Space Age Fuel (Pliska Investments LLC), and the Sisters Mainline Station were advised by the Oregon Petroleum Association's attorney, Paul Romain, not to pay in advance of the pending court date with Judge Brady. "I have told them (the local fuel dealers) not to pay it," Romain told The Nugget on May 21. The stations that have not paid are now accruing a penalty for nonpayment. "If dealers do not pay, the penalty is 1 percent of the tax and increases to 10 percent if payment is not received by the end of the month in which payment is due," said Eileen Stein, Sisters city manager. The Sisters City Council passed an ordinance creating the gas tax back on August 13, 2009, as a means of generating funds to maintain and improve city streets. This was prior to a statewide moratorium on local gas taxes scheduled to take effect after September 28, 2009. The Oregon Petroleum Association (OPA) took issue with the ordinance passed in August, immediately circulating a petition on behalf of the local gas station owners, getting the issue on the March 2010 ballot as a referendum. OPA's position was that the council's ordinance passed back in August should not be enacted until the people voted on it. And, with a vote not scheduled until March 2010, the ordinance would not be valid because it would be after the moratorium date for new local gas taxes. "When does an ordinance get enacted, when the council votes on it or when the people vote on it? I believe it's when the people vote," said Romain. In the March 2010 ballot Sisters voters approved the gas tax, paving the way for the city to set the payment schedule. Judge Brady's ruling confirmed Sisters city attorney Steve Bryant's argument that the city council's action back in August "enacted" the gas tax ordinance - and the March referendum merely placed on hold the effective date of the ordinance. "When the ordinance was successfully referred, i.e. qualified for the ballot, the implementation (collecting the three-cents-per-gallon from the stations) was suspended. After the election we indicated we would implement the ordinance immediately. Legal counsel clarified that would be 30 days after the election date, or April 9," said Stein. Thus the first gas tax collection period of April 9-30, 2010, with payment due May 25. The OPA has the right to appeal Judge Brady's decision but, at press time, there was no indication an appeal was in the works. Phone calls to station owners owing gas taxes were not returned by press time. Council President Bill Merrill feels strongly that a gas tax was the right means of generating the necessary revenue. "We made a decision based on what's best for the people. We are elected to do the people's business and that's what we did," said Merrill. For the fiscal year 2010/2011, which starts July 1, 2010, the council budgeted $126,000 in gas tax revenue for city streets.