Friday, March 27, 2009

RC 2723.03 (Ohio Revised Code)

Here is the Code... note, no mention of FEE

Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.

Effective Date: 10-01-1953

Lawsuit Ruling 2/23/2009

IN THE COURT OF COMMON PLEAS OF LUCAS COUNTY, OHIO

Karen Shanahan,
Plaintiff, Case No. CI0200802348
vs. OPINION AND JUDGMENT ENTRY
The City ofToledo, Hon. Charles J. Doneghy
Defendant.

This proposed class-action matter is before the Court on: 1) the motion of the
plaintiff for class certification; and 2) the motion of the plaintiff to stay a decision on class certification and for partial summary judgment. Upon review of the amended pleadings, memoranda and representations of the parties,and applicable law,the Court finds that it, first, should over rule the plaintiffs motion for partial summary judgment, second, should overrule at this juncture the plaintiffs motion for class certification, and, third, should overrule the motion to stay as moot.

I. FACTUAL BACKGROUND The defendant, the City ofToledo ("City"), first by administrative decision and later by action of the City's council, enacted It an additional tax to collect refuse" (the "Tax"). At all times relevant,the plaintiff, Karen Shanahan,was a property owner in the City who was required to and did pay the Tax. (A.CompLparas.4-5,7-8,16.) The plaintiff alleges that the City's enactment of this Tax was and is unlawful and unconstitutional. (A.Compl.para.2.)The plaintiff seeks certification of a proposed class of approximately 100,000 members who are: current and past property owners and tenants who are, were or will be required to pay a tax on their property (owned or leased) for refuse collection without voter approval by referendum and/or without lawful and constitutional action by City council. (A.Compl.paras.710,21-23,35-37.) The plaintiff now asks the Court to stay ruling on her class-certification motion until the Court issues a summary judgment decision addressing whether the Tax is properly classified as a "tax" or instead as a "fee.'

II. DISCUSSION
A. SUMMARY JUDGMENT: "TAX" OR "FEE"
In opposing class certification, the City argues that the plaintiff has failed to comply with the jurisdictional requirements which R.C. 2723.03 places on any plaintiff who seeks to recover payments of, or to enjoin operation of, illegal or unconstitutional "taxes or assessments." In her summary judgment motion, the plaintiff argues that the Tax is, in reality, a fee. Thus,the plaintiff contends that R.C. 2723.03 has no impact on the instant action.

In relevant part, R.C. 2723.03 reads as follows: "* **If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall no be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid." (Emphasis added.) The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a "tax," fall with in the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v.Tracy(1963), 75Ohio St.55,56-57, 191N.E.2d839. See, also, Gottlieb

v. S.Euclid, 157OhioApp.3d250,2004-0hio-2705,810N.E.2d970,at'30 (finding R.C.2723.03 applies to license "fees").Accordingly,the Court finds that the plaintiffs motion for partial summary judgment is not well-taken.

B. CLASS CERTIFICATION
Civ.R. 23 governs when a court properly may certify a class. Gottlieb v. S. Euclid, 157 Ohio App.3d250,2004-0hio-2705, 810 N.E.2d970,at ..] O. The rule sets forth the following seven requirements:

"(1) an identifiable class must exist and the definition of the class must be unambiguous; (2)the named representatives must be members of the class; (3)the class must be so numerous that joinder of all members is impracticable; (4) there must be questions of law or fact common to the class; (5)the claims or defenses of the representative parties must be typical of the claims or defenses of the class; (6) the representative parties must fairly and adequately protect the interests of the class;and(7)one of the three Civ.R.23(B)requirements must be satisfied." (Emphasis
added.) Id.

In an action for damages, lithe trial court must specifically find, pursuant to Civ.R. 23(8), that questions of law or fact common to the members of the class predominate over any questions affecting only individual members and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy." (Emphasis added.) Id. The proponent of the class must establish all these factual and legal requirements. Id. at ~ 11. The trial court has broad discretion, but must apply carefully and rigorously the requirements, when determining whether to certify a class. Id.at'9,citing Hamilton v.Ohio Sav. Bank, 82 Ohio St. 3d67, 70,1998-0hio-365, 694 N.E.2d 442.

In this case, the plaintiff asserts that she satisfies all the requirements of Civ.R. 23. The City counters that the plaintiff has failed to establish the requirements of R.C. 2723.03 for challenging the Tax in this case, that she fails to propose a class that is limited to property owners who have satisfied those requirements, and, thus, she is not entitled to class certification at this juncture. The Court agrees.

The court in, Gottlieb v. S. Euclid, 157 Ohio App.3d 250, 2004-0hio-2705, 810
N.E.2d970,ruled that R.C. 2723.03 is the proper vehicle to challenge the collection of "taxes and assessments." Id.at28. In order to maintain a damages action for recovery of surcharges,the statute "requires a plaintiff to allege and prove that he filed a written protest and notice of intention to sue at the time of paying the tax or assessment." (Emphasis added.) Id. If the taxpayer fails to comply with these requirements, courts will bar his her recovery action. Id. And,if the taxpayer does not limit the proposed class to other taxpayers who also have complied with the statute, the court should not certify the class as the class does not meet the numerosity requirement.

Additionally, Ohio courts find that claims for injunctive and/or declaratory relief relating to improper taxes and assessments are unnecessary if a trial court finds that the case not properly maintainable as a class-action for damages. Id. at ....... Ordinarily, Ohio courts require that actions seeking only to enjoin allegedly unlawful or unconstitutional taxes and fees should be brought as individual actions, because class certification is not the "superior method for dealing with such claims. Id.

"[C]ertification of the cause as a class action prior to the determination of the constitutionality of the statute may result in unnecessary discovery procedures and the unjustified and unnecessary expenditure of judicial time and energy needed to determine a class action. ***We must be ever mindful of the policy behind a class action lawsuit, Le., to simplify the resolution of complex litigation,not complicate it unnecessarily." (Citation omitted.) Id.

In the instant case, the Court finds that the plaintiff has provided no evidence that she has complied with R.C. 2723.03. Accordingly, the Court finds that it should not certify even a properly proposed class at this juncture.

JUDGMENT ENTRY

The Court hereby ORDERS that the plaintiffs motion for partial summary judgment is overruled. The Court further ORDERS that the plaintiffs motion to stay ruling on class certification is overruled as moot. The Court further ORDERS that the plaintiffs motion for class certification is overruled. The Court further ORDERS that this case is assigned for pretrial on

pc: Keith J. Wicklund/Scott A. Ciolek
Anthony J. DeGidioKeith J. Winterhalter

Refuse Fee Lawsuit - CALL to ACTION

If you believe the Refuse Fee is not a legal form of revenue for the City or if you want to protest this additional fee, it is requested you file a formal protest when you pay the bill or send it to the City. Join the fight, be included, let your voice be heard. Here is the format for the protest:

Date _________________




Pursuant to Ohio Revised Code § 2723.03, I hereby notify the City of Toledo that I am paying the “refuse fee” under protest. Whether construed as a “tax,” “fee,” or “assessment,” the “refuse fee” is unlawful for the following reasons:

The “refuse fee” essentially functions as a property tax; and

The Ohio Constitution requires a referendum before such an assessment may be levied.

For the reasons stated above, I intend to sue under Revised Code §§ 2723.01-2723.05 for the purpose of recovering this unlawful appropriation in its entirety.


Sincerely,



___________________________
Name


___________________________

___________________________

___________________________
Street Address

Refuse Fee and Court

Another court date today and I wonder if, as before, the attorneys will meet in chamber with the Judge, return to the courtroom and we leave with no action. The request for class action was denied at this point as "moot" and I have no idea what is next. The original attorney on the case, KURT WICKLUND has moved on to another firm and had to remove himself from the case. He spent a tremendous amount of time working on the case and we owe him a debt of gratitude for taking on the case that no one else wanted to touch. SCOTT A CIOLEK continues to carry the torch along with the newest attorney to the case, ANTHONY J DEGIDIO. They have now filed an appeal on the class action decision:
3/24/2009: Title : PLD:DOCKETING STATEMENT, PURSUANT TO APP R 3(G) AND 6TH DIST LOC APP R 3(C)

Today is about:
THE COURT HEREBY ORDERS THAT THE PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT IS OVERRULED. THE COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION TO STAY RULING ON CLASS CERTIFICATION IS OVERRULED AS MOOT. COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION FOR CLASS CERTIFICATION IS OVERRULED. FURTHER ORDERED THAT THIS CASE IS SET FOR
A PRETRIAL CONFERENCE ON MARCH 27, 2009 AT 2:00 P.M.

If anyone would like to come and observe the legal system at work, you are welcome.
LUCAS COUNTY COURT OF COMMON PLEAS, JUDGE: CHARLES J. DONEGHY

Refuse Fee Continuing Update

RE: “REFUSE FEE” City of Toledo

963.03. Frequency of collection; garbage and rubbish disposal fee.
(b) After April 30, 2008 for the periodic disposal of garbage and rubbish from any dwelling, restaurant, retail store, apartment house or office building, the property owner shall pay a monthly refuse fee based on the following schedule, provided that where the structure consists of multiple units, the monthly fee shall be per unit:

The City of Toledo passed this ordinance through council as a “FEE” and refused to classify it as a tax which requires passage by vote of the residents in an election. Now in court documents, the City is referring to it as a “TAX” in an attempt to enforce RC2723.3 of the Ohio Revised code. Had the protest been filed, the City could argue it was not allowed as a protest because this is a “FEE” and would not refer to it in court documents as a “TAX”. This is a purposeful misrepresentation of the Ordinance designed to prevent any action by any citizen against the “FEE”.

Rather than determine the merits of the Ordiance and whether it is a legal form of revenue for the City, the courts, attorneys and City Law department prefer to focus on the technicallity of RC2723.3 and whether a protest was required. It is not addressing the issue of the revenue.

As a resident of Toledo, I followed the regulations which offer no requirement to file a protest under the written regulation of RC2723.3 to protest a “FEE”. Though I contend it is a “TAX”, the written ordinace by which I must act states it is a “FEE” and the written Code does not address a fee. Therefore, I refuse to file a formal protest against the City of Toledo in accordance with RC2723.3 which states:

Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.
Effective Date: 10-01-1953

Now the court is citing a lawsuit from 1963 stating a “licensing fee” fits in the context of RC2723.03 which therefore also regulates “fees”.
The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a"tax," fall within the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v. Tracy (1963), 75 Ohio St.55,56-57, 191 N.E.2d839.

This is not a “licensing fee”, this a a revenue grab by the City, wrapped in a cloak of a broad reaching “fee”. This regulation does not afford me that privilege against a “FEE”. Further, it is obvious that RC2723.03 exits to make it virtually impossible for a citizen to counter illegal revenues by a municipality of the type passed by the City of Toledo.

Sunday, February 01, 2009

Privatizing Refuse Collection

With the need to invest in new refuse collection equipment, ($12.2 million for 40 trucks), this is the optimum opportunity to consider privatizing (sub-contracting) refuse collection in Toledo. The Mayor was quoted in the Blade Article, 1/30/09 (Blade Article) that there would be an estimated savings of $3.6 million if refuse collection was privatized (sub-contracted). I have long advocated the switch to sub-contracted refuse collection to save cost and used the information provided in the Blade Article and other data to study the effects of such a change. It may be overly optimistic to expect a 31% savings by switching service to the private sector based on the following data.

In an analysis of the 2008 Budget, the actual expenditures from 2004 though 2007 and 2008 budget for the Refuse Department are listed with an estimated per cent of savings if $3.6 million is an accurate amount as quoted by the Mayor:

Per Cent Savings by Privatization
$10,324,386 34.9% 2004 Expenditure
$10,840,653 33.2% 2005 Expenditure
$11,348,331 31.7% 2006 Expenditure
$11,716,547 30.7% 2007 Expenditure
$11,348,181 31.7% 2008 Budget

(The above expenditures include all expenses associated with refuse collection in the 2008 Budget such as: Buildings, Capital, Maintenance, Office Supplies, Salaries and Benefits. See Google spreadsheet “ Toledo Refuse Cost “ for line item expenditures.)

One method of calculating savings is to figure the cost per household; however, there are different calculations by the City of the number of households. Councilman Collins stated in 2008 there were 91,000 households, the City website quotes 114,000 households (Solid Waste Deparment Webpage); therefore, both are shown in the calculation of annual cost per household:

Total Annual Budget 114,000 91,000 Explanation
$11,348,181 $99.55 $124.71 City collection per year per unit.
$7,748,181 $67.97 $85.14 City collection less $3.6 million savings
$23,256,000 $204.00 $255.56 Private at $17 per month
$20,520,000 $180.00 $225.49 Private at $15 per month

A sample of fees for Ohio Cities shows the annual fee for city operated and city sub-contracted service ranges from $64.44 to $200.04 per year. For Privatized collection, the rates range from $120.00 to $210.00 per year. Most of these cities have a more limited program of refuse collection than Toledo.


Private or Contracted Refuse Collection Cost
Per MO//Per Year
Stow OH 16.67 //200.04
Brunswick, OH 13.50 //162.00
Aurora, OH 13.90 //166.80
Mentor, OH 5.37 // 64.44
Parma, OH 7.11 // 85.32

City Collection Rate
Akron OH 10.80 //129.60
Sylvania, OH 10.00 //120.00
Barberton,OH 11.30 //135.60
Canton, OH 12.40 //148.80
Cuyahoga Falls 17.50 //210.00
Warren, OH 14.12 //169.44

Supporting Documents:
Stow OH
Brunswick OH
Sylvania OH
Parma OH Ref Pg 11

These numbers do not support a savings through subcontracting refuse collection in Toledo. However, several questions remain to be answered:

1. Are all expenses associated with refuse collection in Toledo charged to that department?
2. What type of service was included in the bids received by the Mayor?
3. How many households are in Toledo?
4. What is the basis for the claim of a $3.6 million savings quoted by the Mayor?
5. In the information received, what was the total annual and monthly fee quoted to the Mayor?

Is it time to privatize refuse collection and can it be successful? In reviewing the data, one would conclude it would be cost effect to keep the current form of service even if we do spend the $12.1 million for new equipment; however, a thorough study is crucial.

City Council must be diligent to ensure accurate data is used to make an informed decision. If the Administration is not forthcoming in providing all necessary detail to make an informed decision, Council must demand this information so they can analyze and justify any decision. If the above information is complete and accurate, Toledo will be better served by keeping the current form of refuse collection.

Thursday, January 29, 2009

IF I WERE MAYOR COMMENTARY

The Toledo Free Press published an interesting series of articles, which asked local politicians and high school students what they would do “If they were Mayor”. After analyzing the comments, I have a three-part commentary on the results of the review with an assessment of these comments. After listening to Politicians comments on being Mayor over the past years, it is frustrating that in this time, there is so little process offered by any of the possible candidates to move us forward.

Just stating, “green energy” does not explain how a Mayor can move this initiative forward. Being interested in “education” does not explain how a Mayoral candidate can effect improvements in education or explain how to implement the “Toledo Promise”. These are “hot buttons” of interest to the electorate, but we need solutions not just “hot buttons”.

Almost completely ignored was the infrastructure, refuse collection and safety issues. Nor was there mention of how they would balance the budget or create a “business friendly” environment in our Community. We need a cohesive government, but there were no suggestions on how or on what issues the potential candidates would work with City Council. There was no content on how to handle these problems.

It is disappointing to have so little content on how to manage Toledo. We need a candidate who has the courage to face the hard issues, fix the budget and begin reducing fees and fines, which have been created to enhance revenue. It is our right and expectation as voters to demand real answers not just open-ended rhetoric with lofty goals.

There was a great deal of information presented in paragraphs by the politicians and students. I consider this important enough to analyze, categorize and tally the comments to make it easier to assimilate the information. This has been accomplished in three separate commentaries.

Commentary One is a summary of the politician’s comments. It reduces their paragraph responses to bullet points and a category assigned to each comment. Finally, a tally of the categories for each comment by author is included.

Commentary Two contains suggestions on how to achieve some of the points offered by the politicians. These suggestions are essential for the success of Toledo.

Commentary Three lists the main ideas of the many High School student comments. This list gives insight into the fears, hopes, dreams and desires of our students and helps us understand what is important to our youth. Along with the list of student concerns is a brief commentary on what our government must address if we are sincerely interested in recognizing our youth to avoid “brain drain” and thus help ensure a positive future for Toledo.

As we move forward with this campaign to elect a Mayor, we must ask the hard questions. Just listing “hot buttons” without solutions, processes or programs to effect change is not acceptable.

Please read and review the analysis of the three commentaries.

IF I WERE MAYOR COMMENTARY No. ONE, Review of Comments

A summary of the responses by the politicians offers open-ended rhetoric with lofty goals and sweeping praise of Toledo potential. Each expounded on the need for jobs, growing the economy, offering alternative energy, and improving education; however, no one offered a platform of processes to attain such lofty goals or reach Toledo potential.

The tally by classification has (24) references stressing the qualities or lack of qualities of Toledo; because Ludeman solely focused on Mayoral qualities, “ethic”, was second followed by education. There was very little reference to infrastructure and safety, which is surprising since these are two of the major mandates of the city.

Finally, there was no mention of refuse collection or recycling even though it has been the center of debate and controversy since the refuse fee was passed 2 years ago and the refuse department is preparing to spend millions of dollars to invest in new equipment.

Tally by classification (click on image to enlarge)



Politician/Comment/Classification
Collins/Future of Toledo/Vision
Collins/Opportunity for academic, economic and cultural advancement/Growth
Collins/Join together (regionally)/Vision
Collins/Realistic goals/Vision
Collins/Location 2nd to none/Vision
Collins/Crossroads of America and Canada/Vision
Collins/Adjust from an industrial/manufacturing economy/Economy
Collins/To research, development and service economy are limitless/Economy
Collins/Excel in the areas of alternative energy and biological/pharmaceutical development./Green
Collins/Void of respect, communication and trust/Vision
Collins/Unable to partner with our neighbors/Vision
Collins/Ensure we will provide for future generations (children)/Vision
Konop/Don’t like what we see/Vision
Konop/Lead country in solar technology and manufacturing/Green
Konop/Children and displaced workers receive quality college education free/Education
Konop/Bolster work force to draw employers/Jobs
Konop/Envied by neighbors/Vision
Konop/Pass torch from “good ol’ boys” network/Ethic
Konop/Scratch each other’s backs/Ethic
Konop/Fight for Toledo/Vision
Konop/Stand up to special interests/Ethic
Konop/Make sure your voice is heard/Social
Ludeman/Encouraged by many to run, needs ½ million to run/Ethic
Ludeman/High financial cost of high profile race/Ethic
Ludeman/Toledo wants change/Vision
Ludeman/Qualities needed for mayor:/Ethic
Ludeman/Conservative, specifically – financially/Ethic
Ludeman/Allegiances should be to citizens and taxpayers/Ethic
Ludeman/Background rooted in business community/Vision
Ludeman/Run city like a business not a political team or sports team/Ethic
Ludeman/Surrounded by good staff, hard workers/Ethic
Ludeman/Delegate, not control, tempo of work force/Ethic
Ludeman/Be honest, admit mistakes, move on/Ethic
Ludeman/Have faith, treat others well/Ethic
Ludeman/Have good, solid working relationship with City Council/Ethic
Ludeman/Need “change” in City Council at next election/Ethic
Ludeman/Replace those who have proved they are self-serving/Ethic
Ludeman/Issues change with time, core values should not./Ethic
Moody/Hard working and innovative/Vision
Moody/Confront and overcome challenges/Vision
Moody/Don,t rely on Federal Government to bail us out/Vision
Moody/Listen to suggestions and recommendations of neighbors/Ethic
Moody/Jobs/Jobs
Moody/Form team to work with current economic development agencies/Growth
Moody/Create environment in which business can flourish/Business
Moody/Get out of the way of business/Business
Moody/Create right environment for growth/Growth
Moody/Promote home ownership/Social
Moody/Prevent neglect and decay of homes/Infrastructure
Moody/Promote public safety/Safety
Moody/No government subsidies to accomplish the above/Ethic
Moody/Properly manned police force/Safety
Moody/Punish criminals to discourage repeat offenses/Safety
Moody/Much to be done/Vision
Moody/Infrastructure/Infrastructure
Moody/‘Brain drain’/Social
Moody/entertainment/Social
Moody/Tourism desirability/Social
Moody/Education/Education
Moody/Public perception/Social
Moody/Population flight/Social
Sarantou/3 issues will dominate/Vision
Sarantou/Economy/Economy
Sarantou/Energy/Green
Sarantou/Education/Education
Sarantou/Toledo hit hard by economy: lost jobs, employers and wealth/Vision
Sarantou/Seize opportunity; diversify economic base and work force/Business
Sarantou/Growing reputation as solar energy hub/Vision
Sarantou/Private sector encouraged by UT/Business
Sarantou/Intensify work to become world leader in alternative energy/Green
Sarantou/Must confront education obstacles and opportunities/Education
Sarantou/Support UT efforts to support region and educate work force/Education
Sarantou/Face challenges of K-12/Education
Sarantou/Quality schools are prerequisites to future success/Education
Sarantou/Anticipate future trends/Vision
Sarantou/Willingness to take risks/Vision
Sarantou/Conviction to make difficult decisions/Ethic
Wilkowski/Running to bring jobs back to Toledo/Jobs
Wilkowski/Real plans and best team to implement/Vision
Wilkowski/Rebuild Toledo, create construction jobs/Infrastructure
Wilkowski/Re-power our homes and business with clean energy/Green
Wilkowski/Revitalize manufacturing through solar panel manufacturing/Green
Wilkowski/City has done nothing to spur growth of clean energy economy and green collar jobs/Green
Wilkowski/Economic opportunity begins with education/Education
Wilkowski/Put college in reach of everyone/Education
Wilkowski/“Owens Success” “UT Guarantee” for education/Education
Wilkowski/“Toledo Promise”/Education
Wilkowski/Every graduating public student receives tuition-free Ohio college education/Education
Wilkowski/Community where/Vision
Wilkowski/Industry wants to invest/Growth
Wilkowski/Family wants to live/Social
Wilkowski/Young people want to stay/Social

IF I WERE MAYOR, COMMENTARY NO. 2, BUSINESS, BUDGET, ETC.

Government always lags behind private industry and so Toledo has lagged in the contracts with the city employees. In the 1980’s when the US was experiencing growth and a great economy, business was generous with benefit packages and pay. So likewise, governments passed on these generous packages. However, over the past decades, businesses pulled away from the benefit packages requiring employees to pay portions of their medical plans, co-pays for doctor visits and prescriptions and eliminating retirement plans. Additionally, pay increases dropped to the point they did not even cover the increased liabilities of the employees.

As employees in the private section lost benefits, pay increases and were required to pay more into their medical programs, it became increasingly difficult to pay more in taxes. It is an unpleasant task to require concessions from employees whether in the private sector or public office; but as the private sector has made such demands, it is now time for Toledo to do the same. We can no longer sustain the contracts in place and must work to adjust them within the limits of the City budget.

One of the most common phrases repeated by candidates for office is that we must become more “business friendly”. However, there are few suggestions on how to reach that goal. Even in speaking to small business owners, it is difficult to reach a consensus other than the complaints about the number of regulations, inspections and fees, which must be paid. If we are more “business friendly”, it can be expected we would draw more business.

We also need to be "citizen friendly". Over the past four years, we have witnessed numerous punitive programs, which affects Toledoans. Rather than improve the sequencing of traffic lights to improve safety, red light cameras were install to increase revenue. Rather than focus on the essentials of the budget, a "refuse fee" was imposed to increase revenue and fines imposed against residents who put the trash out too soon. Now there is talk of a plastic bag tax to increase revenue. It is time to eliminate these and other punitive fees, cut the 3/4% temporary tax and focus on the essential services required in the Municipal Code. Eventually the economy will improve and if we work to improve our "friendliness", we will be in a position to take advantage of the improved economy.

The following suggestions are offered as a way to bring the budget into alignment to revenue, to become more business and citizen friendly and move forward for the future of Toledo:
·Business: Less regulations
·Business: Less frequent inspections
·Business: Have one office for all permits required to start a business
·Business: Make it easier to schedule inspections
·Business: Lower permit and inspection fees, eliminate unnecessary inspections
·Business: Allow more “cart” vendors along the streets approaching 5/3 Field before and after games.
·Business: Encourage more oversized signs downtown (such as in Times Square)
·Budget: Eliminate fees to generate income such as red light cameras.
·Budget: Privatize refuse collection
·Budget: End the 3/4% income tax
·Budget: Wean the Toledo Zoo off public funding, they should become self sustaining
·Budget: Stop development studies of Southwyck, the city can do nothing, it is privately owned.
·Budget: Decrease City employee benefits
o Have employees pay towards their medical benefits
o Have employees pay a co-pay for doctor visits and prescriptions
o Reduce the number of paid holidays
o Stop paying the 10% employee portion of PERZ (some progress has been made in the most recent contract negotiations, a start, but not enough)
o Reduce required City portion of PERZ payment from 14% to 10%
·Budget: Put the budget in spreadsheet form on the internet for easy analysis and review
·Budget: Hold a “fire” sale of all abandoned property
o When the home is repaired or torn down, give a $500 incentive
o Reduce permits and fees needed to demolish the building
·Budget: Bid out to the private sector the demolition of buildings
·Budget: Don’t put the name of the Mayor on Toledo signs
·Budget: Invest in a Waste to Energy form of trash disposal
·Budget: Establish and adhere to a baseline % of expenditure for the different segments of the budget
·Fire: Reevaluate the number of fireman per shift
·Fire: Eliminate the ambulance service, put it back to the private sector
·Fire: Eliminate the EMS service, put it back to the private sector
·Police: Put a cap on Command officers in the police department
·Police: Hire police from the Owens Tech police degree program
·Safety: Improve the traffic light sequencing to prevent intersection crashes
·Safety: Reinstate the Gang taskforce.
·Safety: Increase the number of speed limit signs along the highway.
·Streets: Put a list of all roads scheduled for repair on the Internet
o List estimated repair dates
o Date request was made
o Estimate cost of repair
o Show date of completion
· Streets: Have a form on the Internet that can be filled out for potholes
o Put the data on line to lessen duplication of requests
o Prioritize the repair schedule on the internet
·Streets: Study more durable construction material for roads and potholes.
·Region: Focus on 2 industries a month and work to bring them into the region.
·Region: Create an office of regional planning where businesses can communicate their needs and get assistance in finding the optimum location for their needs.
·Beautification: Ask organizations to work on the flower beds
·Beautification: Have contests with the Greenhouses in Toledo to beautify the Gateways
·Beautification: Organize youth by area to help clean their neighborhood streets.
·Government: Be customer friendly at One Government Center.

IF I WERE MAYOR, COMMENTARY No. 3, Students

The Free Press received responses from a number of High School students who listed their concerns which are classified and tallied in the example. From the list, the students most frequently mentioned social amenities, community and safety. Safety and social issues were among the lower concerns of the Politicians. The contrast equates to a disconnect between the Politicians and the students. So much has been made of “brain drain” of our youth leaving Toledo, perhaps it’s time we listen more intently to their issues.

Click on image to enlarge

Sunday, November 02, 2008

Economy, Wealth and Gini

Approximately 40% of those filing tax returns did not pay any federal income tax because these wage earners did not earn enough income to require income tax payments. Over the past 2 decades, the disparity between average middle-income wages and executive pay jumped from 27 times the average income to 270 times the average income. The theory of trickle down economics to encourage economic growth from business is not working, growth is slowing, wages are stagnant, employee benefits declining. It is incomprehensible to Main Street America that executives of failed institutions are earning tens of millions of dollars a year while Main Street wages remain stagnant. Main Street America is losing expendable income needed to support businesses.

The Obama tax plan would lower the tax burden so the Average Joe, including “Joe the Plumber”, would have an increased opportunity to buy that small business he desires and would stimulate entrepreneurship. As Main Street America sees less available income and more income needed for basic needs, i.e., food, clothing, fuel, home, medical costs, insurance and of course, taxes, there is little left. The American Dream is dissolving.

The trend in the United States which is eroding the middle class is moving more towards the economic inequality of Mexico as the Gini Coefficient Index documents.

A Well-Established Trend (http://www.sustainablemiddleclass.com/Gini-Coefficient.html)

The Gini Coefficient for the United States has risen steadily since 1967. If the current trend continues, the United States will reach a Gini Coefficient of 0.546 in about 37-years, or 2043. This coefficient is equal to the one Mexico had in year 2000. Unless the United States breaks this trend, the American middle class will be a thing of the past.

Notice that the Gini Index for the United States is closer Mexico's than it is to Canada's

Data Source: U.S. Department of Labor, Census Bureau Income Statistics
Japan 24.9
Sweden 25.0
Germany 28.3
France 32.7
Pakistan 33.0
Canada 33.1
Switzerland 33.1
United Kingdom 36.0
Iran 43.0
United States 46.6
Argentina 52.2
Mexico 54.6
South Africa 57.8
Namibia 70.7

US Gini Coefficients, Year 1970-0.394; 1980-0.403; 1990-0.428; 1994-0.456

Other Research (W.Kitterer[4]) also shows, that in perfect markets inequality does not influence growth. In real markets redistribution contributes to growth.

Considering the inequalities in economically well developed countries, public policy should target an ‘efficient inequality range’. The authors claim that such efficiency range roughly lies between the values of the Gini coefficients of 25 (the inequality value of a typical Northern European country) and 40 (that of countries such as China and the USA).

“As of 2006, the United States had one of the highest levels of income inequality, as measured through the Gini index, among high income countries, comparable to that of some middle income countries such as Russia or Turkey,[15] being one of only few developed countries where inequality has increased since 1980.[16]”

America needs to find a direction back to a sustainable middle class. John McCain in 2001 and 2002 agreed the Bush Tax Plan was detrimental to the middle class. We have waited 20 years for trickle down economics to work, it is not working and now it is time for our government to take a lead in restoring Main Street America. When 40% of wage earners do not earn enough to support federal income tax we are in serious jeopardy.

NOTES (researched through Wikipedia)
4 # ^ Wolfgang Kitterer: Mehr Wachstum durch Umverteilung? (More Growth through Redistribution?), 2006

15 # ^ a b "CIA. (June 14, 2007). Field Listing - Distribution of family income - Gini index. Factbook". Retrieved on 2007-06-20.

16 ^ a b Weeks, J. (2007). Inequality Trends in Some Developed OECD countries. In J. K. S. & J. Baudot (Ed.), Flat World, Big Gaps (159-174). New York: ZED Books (published in association with the United Nations).

Sunday, October 26, 2008

Insults Unwarranted

On Thursday afternoon, Nov. 23, as I was listening to the Brian Wilson radio show, he was describing the incident in which a McCain volunteer was attacked and had a “B” carved in her cheek. She claimed the assailant beat her after he saw the McCain sticker on her car bumper. As I listened, my thoughts were how awful that a young woman was beaten and that I could not imagine someone would be so demented as to do this because a person was a volunteer for a campaign. As it was later reported, the victim recanted her story.

However, to my shock, as the radio station was about to go to a commercial break, Brian Wilson made a comment… that’s those liberal Democrats for you. I was stunned, angry, enraged that he would categorize every liberal Democrat into a classification of radical, violent people who would do something so awful. He vilified a large segment of Americans.

Through the many Wilson broadcasts, I’ve listened to him frequently denigrate Democrats but believe at the same time he offers some worthwhile information, so I ignore the insults and demeaning comments. However, after this last comment, I believe it is time for Mr. Wilson to understand that I, along with many other residents of Toledo and his listening audience are Democrats and proud of that fact. We are no more or less worthy citizens than any other God fearing, hard working, law-abiding member of society. Mr. Wilson owes us an apology.

Wednesday, October 22, 2008

A Gold Medal Hope

We were spellbound as we watched Michael Phelps swim to 8 gold medals during the Summer Olympics. This is an amazing fete which will take decades, if ever to equal or surpass. This was the accomplishment of a determined, driven, directed athlete. As Toledoans watch our politicians stumble from one project to another, we could only hope for a portion of the resolve of this winning athlete.

The politicians leap-frog from one pond to another with few issues resolved or completed and throughout the process, the partisanship is exclusionary and divisive creating waves which flood over the foundations of Toledo and wash away the little ripples of success we hope for.

The Erie Street Market has been a contentious issue for over 15 years with a round robin tag team of managers. The latest uproar was over the $100,000 renovation of the building to convert it to a concert venue. The cost was spread over numerous contracts, each under $10,000 to avoid City Council oversight. Council cried fowl, made numerous threats, received extensive media coverage but nothing happened. Council was out maneuvered by the Mayor, they were angry, but could do nothing as it was within the guidelines of the City Charter. Now, in retribution, they are attempting to remove the Verso Group, Rob Croak, from promoting events, but offers not alternatives. Where is the determination, drive and direction for success of Market.

Southwyck Mall has been high profile in Toledo for at least 10 years as the owners continued to let it decline year after year. Each year we hear the politicians profess they will revitalize Southwyck, what a waste of time, effort and money. They cannot revitalize Southwyck, it’s privately owned, not city property. Perhaps the pressure applied over the past couple years has pushed the owners to do something with their property, but even after multiple press conferences and much posturing, Toledo cannot revitalize property they do not own! So instead, the Mayor decided to renovate the “Reynolds Road corridor between Heatherdowns and Glendale. It looks ridiculous with the old fashioned light posts on only 2 blocks of highway. There is no synergy with the surrounding businesses, it’s like a fish out of water. The expenditure of our taxes on this project to nowhere is a waste of money, time and effort. There is determination and drive to do something, but no clearly defined direction.

Now we have a great opportunity in intermodal to expand our workforce in this area. From the media reports we watch with concern and hope that our leaders will work together to form an alliance with the railroads to expand intermodal in Toledo, But the first order of business was to fire Jim Hartung, President of the Port Authority, the second order of business is the replacement of Port Board members and the third order of business is the search for a new Port Board President. That puts the intermodal issue in fourth place, no ribbon, no prize. We need the determination, drive and direction of our leaders to move intermodal forward.

These are 3 examples of no clear direction from our political leaders. Without a united effort, we continue to flagellate in an abyss of misdirection. Each political faction has determination and drive but the fractured divisions of our political leaders paralyze our city, we are drowning. It’s time to end “politics as usual” and look at the parts of Toledo area as a whole. Difference of opinion is healthy and should create vibrant, progressive dialogue, not name calling, division and dissention. Determined, driven, directed leaders, working for the whole of Toledo gets gold medals.
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Hamsters, Middle America and the Economy

Have you ever watched a hamster running in one of those wire wheels in it’s cage? The faster it runs, the faster the wheel spins. But no matter how fast that hamster runs, it never gets anywhere. Finally, exhausted, it quits running and gets out of the wheel. It does this day after day thinking it will get somewhere but always ends up in the same place.

That is how “middle America, main street America, blue collar workers”, feel today. We’re like the hamster spinning the wheel and the wheel keeps getting bigger. Our expectations aren’t high anymore, we aren’t even hoping to get ahead, we’d just like to break even, not continue falling behind. Wages are stagnant, worker benefits declining, pension plans disappearing, 401k’s at risk on the stock market, medical benefits escalating, home foreclosures increasing, the national debt growing as we continue spinning the wheel.

We’re worried, discouraged, exhausted; we’re falling behind as we watch record profits for corporations with huge executive pay packages. When companies fail, executives receive unjustified compensation packages. Senator Ben Nelson on 9/10/08, reported the fired CEO’s of Fannie Mae, Daniel Mudd, and of Freddie Mac, Richard Syron, “According to news reports, the two CEOs of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation who oversaw the firms in the time that led to a taxpayer-funded rescue and federal takeover could receive $24 million in pay, bonuses and benefits.” Middle America does understand this, we just keep spinning that wheel.

When Lehman filed bankruptcy, Senator McCain announced “the fundamentals of the economy are still strong” and we should appoint a “commission” to study the failing lending institutions. But time ran out in the course of days and now we are bailing out even more institutions at a cost of $700 billion dollars. Middle America does not believe the economy is fundamentally strong.

Businesses must be given tax breaks so they will generate businesses and create more jobs. However, workers must receive adequate pay to provide the purchase power to support the businesses created. Corporate America has become accustomed to a “spending” middle America. However, according to Diane Stafford, The Kansas City Star, 9/08, “The 15th annual report, Executive Excess 2008: How Average Taxpayers Subsidize Runaway Pay, criticizes five tax loopholes that Congress has looked at but not plugged. The authors note that the compensation of the S&P 500 CEOs in 2007 averaged 344 times the average U.S. worker’s pay. Thirty years ago, the ratio was about 35 to 1.” To quote Senator Obama, “enough is enough.” Middle America has run out of spending money.

When asked whether the Obama tax plan is a form of redistribution of wealth, Senator Biden said “yes it is, so what!” Tax regulations have always redistributed the wealth in this country. With the econony in distress, unemployment rising, wages dropping, it is obvious that the current wealth redistribution plan is not effective, we need change and we need it now. This election affords you the opportunity to select a President who will effect change to bolster the economy. As voters, assess carefully the information presented and just as carefully, vote. The hamster enjoys spinning that wheel, middle America does not.

Refuse Fee LAWSUIT, UPDATE

Another court date... at this rate I'm going to run out of vacation days to attend!
If you have any spare time... stop by and watch democracy in action.

Title : HRG:PRETRIAL SET
Pursuant to the telephonic conference call on this date,
the hearing regarding the issue of class certification is
scheduled for NOVEMBER 7, 2008 AT 3:00 P.M. All counsel
notified.

LUCAS COUNTY COURT OF COMMON PLEAS
J. BERNIE QUILTER, CLERK
700 ADAMS STREET
TOLEDO, OHIO
JUDGE: CHARLES J. DONEGHY

Friday, August 22, 2008

Refuse Collection Performance

If you have a problems with the refuse collection at your home, it does make a difference if you call the Refuse Department and complain. So if you are frustrated or unhappy with the performance, call and let the City know, request a Supervisor to come out and inspect. The employees receive a bonus for each 2 week period they work of .80 per hour. If there are complaints, it impacts the bonus:

2121.117 Weekly Unlimited Refuse Pay

“The rate of incentive pay during the life of the contract will be established at eighty cents (.80) per hour.

The incentive pay will be made to employees by means of a separate check being issued quarterly to the employee for the number of hours for which the employee is entitled to receive the pay.

(b) Each crew will be evaluated as to the performance of its duties for each two (2) week pay period. A system will be established to keep record of bona fide complaints which have been investigated by the Foreman and are determined to have been justified. The complaints for which a crew's pay will be reduced are as negotiated between the City and the Union and are entitled, bona fide complaints for which incentive pay will be reduced. When bona fide complaints against a crew have been determined to be justified, the incentive pay of the crew will be reduced in accordance with Table 1.

TABLE 1
Bona Fide Complaints - Percent Reduction of Incentive Pay In 2-Week Period - For That 2-Week Period
0 - 4 0%
5 - 6 20%
7 - 8 40%
9 - 10 60%
11&over 80%"

Police - Sexual Misconduct & a Slap on the Wrist OUTRAGEOUS

I'm waiting for the outrage of City Council and the Administration, a demand the Police Department clean house. A demotion for this type of conduct, why is the officer(?) not fired. Is this the type of person we want walking the streets of Toledo enforcing(?) the law? And if it had not been taped, nothing would have happened. Is this the only police officer(?) who is offending the residents of Toledo or just the only one who was caught. This is a call for our political leaders to step forward and demand more than just a demotion of this person.

Article published Thursday, August 21, 2008
Police sergeant guilty of making threats to clerk
By LAREN WEBER
BLADE STAFF WRITER

A Toledo police sergeant was found guilty yesterday on departmental charges after being accused by the internal affairs unit of threatening, on more than one occasion, to arrest a convenience store clerk unless she had sex with him.

Sgt. Daniel Brandon, 40, who was appointed to the department in 1993, pleaded no contest to the charges and was found guilty of conduct unbecoming of an officer, abuse of authority in dealing with the public, and conduct subversive to the good order and discipline of the department, Deputy Chief Don Kenney said.

The deputy chief recommended that Sergeant Brandon be demoted to patrolman for one year and suspended without pay for 10 days.

The recommendation must be approved by Bob Reinbolt, the city's safety director, who said he expects to make a decision within a few days.

Sergeant Brandon, on at least two occasions, made sexual comments to the clerk, suggested the use of an illegal substance, and used vulgar language. The comments were made in the presence of other customers and were recorded on the store's surveillance video, Lt. Ed Bombrys, of the internal affairs unit, said.

Lieutenant Bombrys declined to release the name of the store or victim to protect the victim.

The first incident occurred about 4 a.m. March 20 when Sergeant Brandon approached the counter to talk to the 23-year-old clerk.

After a short conversation, Lieutenant Bombrys said Sergeant Brandon threatened to arrest the woman unless she had sex with him.

"I will take your punk [expletive] to jail and while you're sitting in the county [jail], you'll be thinking, [expletive] it was only five minutes," Sergeant Brandon can be heard saying on the tape.

The clerk's response: "I would just go to jail."

Sergeant Brandon said he was joking with the woman, whose name he didn't know. He later admitted the comments were inappropriate.

"In my mind, [there] just wasn't any seriousness to it," he told internal affairs investigators. "I'm actually embarrassed about it now because it was stupid."

But Lieutenant Bombrys said based on Sergeant Brandon's body language in the video, it didn't appear as though he was joking.

"He lowers his voice and leans over the counter. He's emphasizing something to her," he said.

In a meeting with Lieutenant Bombrys, the clerk said that during that March incident Sergeant Brandon told her that he had her license plate number and threatened to pull her over at night.

According to Lieutenant Bombrys' interview with her, she told the sergeant she occasionally drinks and drives and that Sergeant Brandon responded by giving her two options - "Have sex with me or go to jail."

On April 6, Sergeant Brandon returned to the store about 3:40 a.m. He again made sexual comments to the woman and told her that she was going to have sex with him "either willingly or by force," according to transcripts of the surveillance video.

After a few more minutes of conversation, Sergeant Brandon then told the clerk she needed to "smoke more dope." The woman responded by asking the sergeant to watch the register while she rolled a marijuana joint.

Sergeant Brandon said: "All right, as long as you roll one for me."

Although the clerk can be heard laughing in the surveillance tape during both incidents, Lieutenant Bombrys said she told him she was intimidated by Sergeant Brandon's comments and feared he might follow through with his threats.

She said she didn't want to get on Sergeant Brandon's bad side.

Sergeant Brandon, who is married, was promoted to sergeant in 2000. He was suspended for five days last year after he was found guilty of insubordination and use of informants.

He is paid an annual salary of about $62,000.

Contact Laren Weber at:
lweber@theblade.com
or 419-724-6050.

Thursday, August 21, 2008

REFUSE FEE Lawsuit.. thoughts

I read a few blogs about how silly this lawsuit was and a waste of time, I should spend my time doing something significant. I so completely disagree and want to say this to all the naysayers:

Interesting dialogue about the “Refuse Fee” and I wonder if the impact of the power of this illegal form of revenue enhancement has impacted the taxpayers of Toledo. According to the Toledo Municipal Code and the Ohio Revised Code, the voters must approve any additional tax in the form of a levy. Why is this? When we recently voted again to approve the ¾% “temporary tax”, had it not passed, our desperate politicians had the ability to change the “Refuse Fee” to $50 per month instead of $5.50 or $7.00 or $10.00 and the revenue would have equaled the millions achieved from the ¾% “temporary tax” (91000 households x $50 per month x 12 months $54,600,000) with the simple stroke of a pen and 7 yeas. Would Council do this? I don’t know, but the question remains, should they have the power to do this. I say NO; they should not have the power and both the TMC and ORC agree.

Also, ask this question: is this tax (not legal) or is this a fee (legal)? Through other court cases, the description of a fee has been defined: 1. Must be transactional (if you take a load of trash to the dump, you pay for that load only); 2. Must be based on usage (when you take the trash to the dump, you pay a fee based on the amount you take based on lbs. Or volume); 3, must be able to opt out of the fee (I only pay when I go to the dump, if I don’t go to the dump, I don’t pay.) Consider the other fees we pay: fee for a dog license; fee for a marriage license; fee for a drivers license; fee for a building permit; etc., and it becomes obvious this is a tax not a fee.

If this is a legal form of revenue enhancement, the City of Toledo would never need to put a tax levy on the ballot again, they would only need to increase the “Refuse Fee”. If anyone out there believes that next year it will remain $8.00 / $1.00 and the following year $10.00 / $0, then you are fooling yourself. The city spent a great deal of time patting themselves on the back at how much money they were pulling in, even over budget, and were so very proud of themselves. If done incrementally, we would become even more complacent then we are now as we justify the amount as only “$66” per year, and then only $96 per year, and then only $120 per year. When we think in this way, we make a molehill out of a mountain and that is how we ended up with a tax, which was passed as a fee.

In essence, City Council is stealing from the taxpayers through this illegal “fee”. If a shop owner catches a shopper stealing a $10 garment, they yell “thief” and want restitution… for a mere “$10” because of the accumulating effect of 1000’s of stolen $10 garments. We have laws to protect us from theft; we pay taxes for police, prosecutors, judges and jails so the “perps” can be prosecuted. And yet you cry “fowl” – a “molehill, a waste of time and effort, after all it’s only $66 per year… accumulating to $4,200,000 a year. I ask, is that really ok? Have taxpayers been harmed. You bet we have, so far in the amount of over $6,000,000!

Monday, August 18, 2008

REFUSE FEE LAWSUIT - 8-15-08

Went to court on the 15th as the Court was to decide whether the case qualified as a class action suit. The opposing attorneys can question whether my attorneys have enough experience to represent a class action suit and rather than run the risk of a decision on behalf of the opposing counsel, my attorneys brought in another attorney to join the team representing all of the residents of Toledo in the lawsuit.

I mentioned we had heard from others in the community who wanted the refuse fee reversed as they, too, believed it was wrong. If you have been "harmed" by the lawsuit, please email the attorneys and voice your view. They are interested in hearing from you. Email address to use: info@cw.law.pro

After waiting for a short time in the court room, the attorneys were called into the Judge's chambers, the Attorney representing the City of Toledo requested a continuance for a month so they could review the credentials of the new attorney, the extension was granted. So, we wait again for a new court date.

Saturday, June 28, 2008

REFUSE FEE LAWSUIT - update

The attorneys put their heads together on JUNE 27, 2008 AT 10:30 A.M for a pretrial conference and decided on a court date in mid-August.

One must be very patient when dealing with the courts.