Rebane's Ruminations
September 2012
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George Rebane

Last Friday I attended a part of what has now become institutionalized as a biennial ceremony that passes for efforts to develop business in Nevada County.  I think I have attended about five of these during the years we’ve lived here.  This one featured the elected city councils and the county’s Board of Supervisors as the target audience.  The public was invited to witness the doings and have a short Q&A at the end.

I lasted through the first panel presentation which included Machen MacDonald (Sierra Commons Faculty), Steven Frisch (Sierra Business Council), and Brent Smith (Sierra Economic Development Corp).  Messrs Frisch and Smith gave extended and informative presentations of what their organizations do to foster business in the Sierra.  Mr MacDonald stood up and mumbled something about businesses “not being in alignment” which turned out a bit too complex for this commentator to follow – mercifully, the message was short and he sat down.


Mr Frisch, who often comments on these pages, gave a high level presentation of the regulatory environment, and stated the need to reduce its complexity, especially as it pertains to CEQA, one of California’s regulatory gorillas that has done untold damage to California’s economy (my interpretation, not Steve’s).  Steve also stated that the county’s jurisdictions most likely would agree on 80% of their aggregate initiatives to promote business, and that they should concentrate on getting on with working through this large fraction to make some measurable progress.

Mr Smith focused on the small business problem of access to money and broadband connectivity.  It turns out that banks have tightened credit enormously in the last years, willing to lend only to squeaky clean enterprises most of whom don’t need the money.  The bottom line here is that business loan applications are way down.  Brent also outlined some sleazy new approaches that some banks are attempting use as lending products, expressed some contempt for ‘payday lenders’ who charge egregious interest, and then offered SEDCorp as a more accessible source of money.  He stated that SEDCorp is prepared to make fully collateralized loans that range from $1,000 to $250,000.

But my clear takeaway from all the speakers and the questions from the electeds was the confirmation that governments (fed, state, local) remain as the biggest impediments to starting and operating a business in California.  At the intermission I had a chance to talk with Supervisors Nate Beason, Terry Lamphier, and Ed Scofield before I headed out.  My objective was to get their current sense of how a local government, our county in particular, could proactively and unilaterally soften the impact of regulations which range from repressive through inane to insane.  I have brought this notion up in public communications with the BoS, and thought I’d give it another shot.  (In these pages some of these sentiments can be found by searching ‘just say no’.)

The basic thesis here is that NOTHING will relieve the situation, let alone returning more local control, without a strong, militant, and persistent response from the grassroots jurisdictions.  And the types of response that I’d like to explore are what might come under ‘interpretive latitude’ when it comes to implementing regulations at the county and city levels.  In short, cut some slack to the applicants and business enterprises in areas that succumb to common sense (a resource in short supply in bureaucracies).  And this may require asking for forgiveness, even mercy, rather than permission of the higher ups.

The hip level response – it really doesn’t require higher processing when the mind is made up – is that we can’t do that because of what happens if we’re caught, or something cracks or craps out, and the county is sued.  This assumes, of course, that common sense was not applied in granting such interpretive latitude, or that we advertized its application.  With Supe Scofield it was an impossible cognitive barrier to penetrate – not only could it not be done, it couldn’t even be considered.

Supervisor Beason’s approach appeared to be a future program of review in which the county would pull back and/or soften some of the regulations over which it has jurisdiction.  He offered that this may be some small but significant fraction.  Interpretive latitude was for him not in the cards.

Surprisingly, our new liberal supervisor, Terry Lamphier was most responsive to the notion of clawing back local control, and we had a delightful conversation about the what-ifs.  The burrs under Terry’s blanket involved recent state regulations on the sale of raw milk, and the public sale of foods prepared in private kitchens (no more cookie sales at the church?).

Returning now to a longer look at how last Friday’s séance gets repeated, I cite an email on the topic that my friend Russ Steele sent me –

Russ Steele’s 14sep12 email – The problems in the past is that at the end of these meetings there is never any clear definition of where the community wants to be in 10 years and what actions were necessary to get there. Every group in the conference room has a different vision of what the community should be in ten years. There cannot be multiple paths of multiple futures. We have decide as community where we want to be and the best path to take. The community has never been able to define an acceptable joint future, or choose the paths to that future. If your do not know where the there is, you cannot get there from here.

Anyone attempting to define the future is attacked by all the tribes with their alternative visions of where we need to be in 10 years. This has been going on since1988, when I first got involved in going to community visioning and planning the futures sessions. One of the biggest problems is a bunch of over 60s are planning a future that the under 40s are going have to create and live with, yet the under 40s are never in the room. Big disconnect!

Some day the community will hit economic bottom and some charismatic leader will step up and lead the tribes into the future. Until then we talk about our individual futures and do nothing.

I hope your report is more positive than my past history with these type of joint meetings, where everyone comes away feeling good and then does nothing, other than start planning the next revival two years down the road.

It is my sad duty to pass on that my spies, who remained after my timely departure, reported no such progress.  If the pattern of the past is followed, it will take about three to six months to realize that nothing came of it.  And it will then be time to start constructing the next simulacrum of the next economic development gooney bird, as did the cargo cultists of Papua-New Guinea after WW2.  After all, local traditions must be maintained.  (see ‘California’s Purple Cargo Cults’)

But in sum I have to conclude that we don’t have the political will in this county to break through any imposed or self-inflicted regulatory barriers – the main game of our politicians is to play ‘duck and cover’ between these biennial breast beatings.  And for promoting business development, the main thing that entrepreneurs and business owners ask of government is just to get the hell out of the way.

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24 responses to “Local Control of Business Development – we’re basically screwed”

  1. billy T Avatar

    Little infant steps do not take us to the promised land. Broadband is a great idea that will benefit all, but it comes with a price. Vice President Al Gore while stumping for President declared internet broadband is a right. I wondered if he had any idea what was involved. Wiring schools and taxing everybody with a land line won’t get us there, especially when folks are dropping land line phones.
    Vision of the future? Are we going to built the green train to Colfax or down the center divide of 49? Its not like we go to the hope chest and pull out a piece of paper that says “Dorsey Off Ramp”, click our heels together 3 times and it appears next week.
    Regulations come from above. Local regs are not the issue in the grand scheme of things. Sure, Nevada City has to approve any tree being chopped down or the type of windows you can have. Big Boxes or no boxes? Dog parks and no smoking. These tiny issues do not help businesses.
    This reminds me of Columbus. He had no idea where he was going, didn’t know where he was when he got there, but at least he got a woman to pay for it all. I know many people like that. Where is Queen Isabella when we need her?

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  2. THEMIKEYMCD Avatar

    George I implore you DO NOT, I repeat DO NOT complain to the government… I would hate to see what they come up with for a ‘solution.’
    I gave up on such meetings years ago… local government bodies are simply the minions of the Fed/State government.
    Amen. “the main thing that entrepreneurs and business owners ask of government is just to get the hell out of the way.”

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  3. Russ Steele Avatar

    George,
    There is a long history of my participation in the ERC activities and insights at my old blog NC Media Watch. The link is here: http://ncwatch.typepad.com Use the search functions with the key word ERC.

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  4. Todd Juvinall Avatar

    Well hell, Frisch and I agree on CEQA! The irony though is the organization he runs is in my view a backdoor way to keep it in force. Phony outrage if you will.
    California is a hopeless cause. The State and Feds shove their mandates down the throats of locals and we have to take it. It started under Nixon and has only gotten worse.
    If you hire ONE employee you become subject to hundreds if not thousands of rules and requirements. If you don’t follow the rules the government will “punish” you, that is, fine you and sanction you. If you want to grow the footprint of you building, you are subject to the nightmare of regulation under zoning and CEQA and dopey General Plans. But that is what we have done to ourselves in the name of “getting along” as a people.
    I fought the land use wars here in our little county and I lost. I attended every meeting in the 90’s and tried to bring simple common sense to the proposed GP policies and recommendations but to no avail. I was not PC but practical. Go back and listen to the thousands of hours of tapes and you will here from the people like Izzy Martin and Peter Van Zant, representing the left why we are in the boat we are in today. Their views prevailed and I predicted we would end up as a “service based” ecomony of low wages and commuters to the big city. All from the “landuse” regulations of our county.
    They and their fellow believers in a ratcheted down landuse plan have gotten what they wanted and it will not change anytime soon. Along with a ultra leftwing State Legislature we are screwed. Thousands of new rules and in every aspect of our lives and businesses are passed each year. Nevada County has become the bedroom community I warned against and the biggest employer has become government. I saw this in Plumas County back in the 80’s and warned we would become them and it has happened.
    I am no soothsayer but I do have common sense and can read people and their intentions pretty well. When every project for change or betterment become a barttleground in the Planning Commission meetings, then we only have ourselves to blame for the rot created here.

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  5. TomKenworth Avatar

    Is this not an ag county? If so, how soon do you want all our Ponderosas to be owned by Monsanto? What sort of legacy are we leaving our great grandchildren, if laws like MOnsanto lobbied for are allowed to stand? Why would there be o mentions of this issue at such a “conference?”
    ~Philip Andersonposted to U.S. Farmers & Ranchers Alliance~
    “Something that bugs me about Monsanto legalities against farmers. If a Monsanto-using farm’s pollen pollenates your plants, you will be sued for using their product without paying. That’s the equivalent of you jumping over my fence, raping my wife and impregnating her… and then suing me for illegally using your seed. That is insane logic. And knowing that pollen spreads, it must have been thought out and planned ahead years before that eventually all specific plants would change to Monsanto “brands.”

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  6. George Rebane Avatar

    TomK 837am – Do you have any evidence that Monsanto has filed such suits, and if so, have they prevailed? BTW, in reality we are NOT an ag county since that segment contributes less than 5% to gross county product. That doesn’t mean that our envirodents are not quietly knawing away at our body politic in the hope that the current 5% becomes 100%. The astute reader will recognize that this is possible to achieve without increasing the dollar value of the current 5%, and that is their current objective.
    MikeyMcD 743am – please don’t misunderstand. My supplications to the electeds is TO PURPOSELY DO LESS (disassemble the barricades to business), not to come up with any grand plan for business development, of which they are totally and terminally incapable.

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  7. TomKenworth Avatar

    The Ag segment is growing steadily, and our tourist attracting restaurants depend on fresh veggies and free range beef. In the event of major crop collapses from monocultured crops, we may become much more dependent on locally grown foods. If the economy goes into full collapse, growing at home may save a lot of people.

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  8. TomKenworth Avatar

    Nearly 8,000 hits for the search ~ “monsanto sues” crop gmo suit ~ on Google. Take your pick.

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  9. Paul Emery Avatar

    George
    we are indeed an ag coundy. Marijuana cultivation is by far the largest industry in our county next to, of course, government jobs.

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  10. George Rebane Avatar

    All true about our local ag leanings – but as I have long told my students, don’t confuse comparing different derivatives of a time varying function. Many arguments in the public square go interminably with one side saying the amount (zeroth derivative) is low, while the other side is crowing about the rate of change (first derivative) being high, or even merely positive. And the audience of nebbishes can’t differentiate and soon lose interest.
    But PaulE (952am), you are, of course, right but have yet to convince the electeds on an approach to tax the entire crop.

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  11. Earl Crabb Avatar

    Anyone who believes Nevada County could be self-sustaining without those truckloads of food coming up 49 and 20 is smoking too much cash crop. We’d be trading Julia Child for Donner Party recipes in about two weeks, especially come winter.

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  12. Ryan Mount Avatar

    RL for the win! +1

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  13. billy T Avatar

    Tax the cash crop farmers and you will hear a cacophony that reaches the moon and back. Who is going to throw the magic “ON” switch and all of a sudden those involved in the black market will come clean and start “volunteering” to sent in quarterly contributions in advance?? Hope they don’t forget to send in their proof of health insurance. Might lose their food stamps. My gawd, the sky was falling just on the proposal to make them register. I say tax them and watch half the country pull out Don’t Tread On Me flags and carry signs that say Taxed Enough Already”
    It only takes a few dozen plants to put them in the Obama “rich” category to add insult to injury.
    Earl of Crabb: Julia Child? Wonder if she tasted like chicken in her younger days. Come winter Julia Child might taste great under ice, chilled to perfection.

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  14. Paul Emery Avatar

    First of all the Cultivation Ordinance is a prime example of government regulation. You can’t blame the Libs on this one. It was trumpeted by the conservatives and local law enforcement who wanted control over what was supported by the will on the people who voted fifty-six percent for approval Proposition 215 on November 5, 1996. Conservatives and TP types were silent and did not support opposition to the ordinance when it was passed last may. Libertarians publicly expressed strong opposition however.
    So to whine about regulations on one hand and support this overkill ordinance is the height of hypocrisy. I will excuse our host from criticism on this one since he has stood up in opposition.
    This is important and needs discussion, How can you do any assessment of our local economy without taking into account the largest income source in the county?

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  15. Earl Crabb Avatar

    Don’t blame the libs? You mean those compassionate progressives in Nevada City (and many other municipalities) who squelched any attempt at establishing a dispensary or private grows inside the city limits? Face it, when everybody voted to legalize “medicinal” marijuana, they had no idea what it would lead to. Typical for government by feelgood initiative.

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  16. Paul Emery Avatar

    Well placed counter punch Mr Crabb. I was trying to make a point that with all the blathering from the right about opposition to government regulations there was a silence on this one that allows government inspectors into your back yards to check out your personal foliage to make sure it’s up to spec. Yes indeed NC and GV libs opted out from allowing dispensary’s in city limits. Also it’s the Obama admin that let the club fly on the Colfax dispensary even there were no complaints from either the county or city. As you reported earlier Tom McClintock supported a bill to cut off funding for the feds on enforcement that gathered considerable Democratic support but little from the Pubbers. So much for supporting States rights on that one.
    The failed bill’s text reads as follows:
    None of the funds made available in this Act to the Department of Justice may be used, with respect to the States of Alaska, Arizona, California, Colorado, Delaware, District of Columbia, Hawaii, Maine, Maryland, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and Washington, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.
    Of the 190 Democrats in the House, 134 (more than 70 percent) voted in favor of the bill. Only 29 of the 242 House Republicans (less than 12 percent) did.
    http://www.huffingtonpost.com/2012/05/10/medical-marijuana-raids-defunding-bill-_n_1507978.html?ref=san-francisco&ir=San%20Francisco

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  17. THEMIKEYMCD Avatar

    In an effort to get our fair share I think we should tax the hell out of pot. Make producers pay for business license, payroll taxes, income taxes, etc.
    It’s only fair.

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  18. billy T Avatar

    Re:Paul Emery “This is important and needs discussion, How can you do any assessment of our local economy without taking into account the largest income source in the county?”
    Paul. I agree. I don’t think I have ever taken a stand on the issue. I haven’t smoked pot in over 21 years. As a former guerrilla farmer and daily pot smoker for 25 years or so prior, I am not coming at this as some Pauly Anna reformist thumper.
    My point is the forest, not the trees. Its easy to say tax em all and rub our hands together and think problem solved. Nor am I referring to those that would frequent a medical clinic or have a bush or two behind the tool shed. I am referring to the guerrilla grower who has never lived on the sunny side of the street and has only known the black market as a life style. The dudes with surveillance cameras in every tree and has not filed taxes in years. The ones who would never “sell out to the man” or be part of “the system”. No regs will bring in those types into the fold, not today, no way and no how. Say tax them to death but I say don’t count your chickens before they hatch.
    Pot is a prime example of local regs that can be amended and altered with relative ease. State and Federal regs that our county is forced to abide under is a horse of a different color. A war horse.
    But regarding the forest, is what is the vision for the business climate and future for the county? I ain’t talking about the little lady’s Victory Garden in the side yard. I am talking the big picture, the whole enchilada, the gist of Dr. Rebane’s post.
    I sat in the doc’s office this fine morn. Noticed a picture with a quote hanging on the wall. It was a beautiful pic of a harbor right after dusk in early evening as night was approaching. There was a lighthouse that had not been fired up yet for the night. The quote read something like this: GOALS: Without knowing which harbor you are going to port, no light is bright enough to show the way.
    That is what I am talking about, as well as Mr. Steele and Dr. Rebane. Where are we headed? It ain’t about wacky tobaccy and barters’ street fairs. Where is this county going and what will it look like in 10-20 years??? Without a vision the people are scattered.

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  19. Paul Emery Avatar

    We agree again Mikey. It is estimated that MJ cultivation in California is a $15 billion annual enterprise, probably around 200 million in Nevada County. Imagine the tax revenue potential. Combine that with the reduction in in law enforcement, judicial and incarceration expenses and you have a huge windfall for State and local governments. Of course this is fiercely opposed by the law enforcement-incarceration industry and commercial growers themselves who prefer to have legal action incorporated as a manageable risk to keep prices up. However there are many local growers who are no longer in compliance with the heavy handed ordinance that were very modest in their ambitions and were indeed growing only for the needs of themselves or a small number of others consistent with state law.
    Effective enforcement of this ordinance would devastate Nevada Counties economy for sure. I conducted a casual survey with 9 Nevada City downtown businesses who are freaked out at the possible effect on retail. Also, look for a new surge in foreclosures since property ownership is an essential component. Also the feds closing of dispensaries effects revenue. If it was peaches instead of pot that drove our local economy the price per pound would be a huge topic and local growers would probably ask for assistance much like Rep candidate LaMalfa who gets millions in price support from the taxpayers..
    Since the local economy is the topic of this post it is essential that these ramifications be part of any conversation on the future of our economy.

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  20. George Rebane Avatar

    All good points and an illuminating discussion. Can anyone (PaulE?) summarize where we are currently in the pot regulatory loop? Is there any major decision/review point coming up for the Board of Supes?

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  21. Paul Emery Avatar

    The Ordinance is currently being enforced. One of the first to be cited was an 58 year old woman with Hoskings Disease who had 24 plants. She was growing on five acres in the Scotts Flat Area. She has been cited for too much square footage, growing not on a contiguous plane and not proper fencing. She has five CALENDAR days to appeal from the date of notice. If she does not appeal or abate within five days the Sheriffs office will do it for her and charge her for their time. Another person I talked to who was visited by the Sheriffs dept asked what would happen if he required a search warrant and, according to him, he was told that if forced to get a search warrant they would not knock and would instead kick in his door.

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  22. TomKenworth Avatar

    My understanding is that the owners and builders of the business Ridgestop Cafe have sold, and possibly because they sensed everyone getting nervous about the obvious ease with which plants can be spotted from the air, and the failure of the Obama admin to legalize the stuff. Coming down hard will affect every business in GV/NC, with fewer and smaller sales in everything from gardening supplies to dinners out. Less tax revenue, less money for police to make raids, fewer raids, more pot grows, a great counterbalancing system in action. I’m sure there must be a fancy word for this kind of systems behavior.

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  23. George Rebane Avatar

    TomK 1111pm – Yes, it’s called unintended consequences. What you and PaulE (1049pm) are citing should be brought to the attention of the Supes. I’m not sure that they all are aware of how the ‘oh, we’re really not going to enforce the small stuff’ provision of the ordnance is being implemented. In any event, their public response and clarification at one of their regular meetings is required in cases like this. Who in our marijuana counter-culture is going to bring it to their attention?

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  24. TomKenworth Avatar

    I may live here, I may have smoked pot in the dim distant past, but I am not part of the MJ counterculture.

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