2012

Is Mayor Huether running for re-election?

A reliable source told me this morning that he probably is. Apparently he has been sending out fundraising letters with signed copies of this magazine. It’s speculation at this point, but I would love to see a copy of the supposed letter.

It could also be a ploy. I don’t understand fully how fundraising works, but I think(?) if you have a campaign fund you can use that fund to run for other offices. There has been discussion that Mike may be pursuing running for Governor. What’s stopping him from switching gears next year?

Not sure.

What kind of ‘Deal’ are we getting on the new Events Center naming rights?

You can almost smell how greasy this deal is . . .

Nobody really knows, heck, we might not even know even with this ‘exclusive’ interview that is vague;

When it came time to establish primary sponsorship for the new Sioux Falls Events Center, several of the city’s business heavyweights emerged.

No, THREE, heavyweights emerged. We have NO idea if there was any other companies involved.

The end result was a building named the T. Denny Sanford Premier Center.

What!? Why not just call it the Sanford Premier Center? Why is T. Denny’s name on this?

First Premier Bank, Premier Bankcard and Sanford Health have formed a 25-year partnership as corporate sponsors of the $115 million sports and entertainment facility, pending approval by the City Council.

The sponsors will set up an endowment to make an annual payment to the city to help defray operational expenses. Last year, a firm hired by the city to study naming rights valued the title sponsorship in the range of $350,000 to $500,000 a year.

And that annual payment is what?

The city will host a news conference today at noon at the Sioux Falls Convention Center to disclose financial details, but company executives shed light on the deal in an exclusive interview with the Argus Leader on Wednesday.

What light? I have read this article twice, and haven’t read anything new.

Sanford Health chief executive officer Kelby Krabbenhoft said that he did not pursue naming rights and did not get involved in a bidding war for sponsorship at the events center, which is scheduled to open in fall 2014.

“This is about making an investment, not chasing naming rights,” said Krabbenhoft, who discussed the arrangement along with First Premier Bank CEO Dana Dykhouse, Premier Bankcard CEO Miles Beacom and Sanford Health vice president Dave Knudson.

So who approached who? And what other companies were ‘chasing naming rights’?

“We were looking for a portal to make sure we could make a difference in how successful this thing was. I don’t remember one meeting where we sat around and thought about naming rights, because I don’t think we need much more of that. This was the portal that made our involvement possible.”

First Premier is the majority investor, and it didn’t take long to consider using the name of noted Sioux Falls philanthropist and First Premier founder T. Denny Sanford, who also is title donor to Sanford Health.

These two paragraphs are contradictory. You didn’t think about naming rights but it didn’t take you long to come up with a name? Kinda sounds like you thought about it pretty hard . . . and fast.

And what about the councilors being let in on this ‘deal’?

“We don’t have transparency on this at all,” Councilor Kermit Staggers said. “The mayor used to work for First Premier, and people in the community are closely associated with Sanford. We should have had openness … Maybe we really got a good deal, maybe we will. But we’ll never know because we never had any bidding going on out in the open.”

One councilor told me yesterday he didn’t hear about the announcement until after the press release was out. Talk about keeping our elected officials in the loop.

The contract between the city, First Premier Bank, Premier Bankcard and Sanford Health has been signed but hinges on City Council approval. Chairwoman Michelle Erpenbach said an executive session is scheduled for Tuesday with city attorneys to further discuss contract negotiations and ask questions. The full council will vote during a public hearing and regularly scheduled meeting Aug. 21.

So now that the cat is out of the bag, we still have to go into a secret meeting to discuss the contract? This should be an open meeting to the public, not behind closed doors.

“We believe strongly that the agreement presented and details shared will go a long way toward ensuring financial viability of the facility, giving every chance to operate in the black and be successful,” Smith said.

Who is ‘WE’ Darrin? You, Huether and Sanford? When you use the word ‘we’ in relationship to government, it should be ALL of our elected officials, not just the ones that agree with you and Huether.

Councilor Greg Jamison thought the council would have been briefed on contract details in executive session before the public announcement.

“That’s what’s funny about this process, it’s all out there … we don’t even know what the dollar amount or agreement is, we learn that (today),” he said. “When it’s the public’s money, there’s a higher threshold to do it in such an open way, so open there could never be any (question) of behind-the-scenes, under-the-table deals. This wasn’t done that way.”

But, Greg, you are not a part the elite ‘We’ group at city hall, just trust them. 🙁

But let’s go a little deeper and talk about Kelby’s involvement in this ‘Deal’. He pretends his hands were not on it, but he sure seems to know a lot of details about the naming rights deal;

As Sioux Falls goes, so goes its most prosperous companies. So a little bit of propping up can go an awful long way over time.

“That’s why we do these things, like donating 40 acres to the city for football fields,” said Krabbenhoft. “The more we have these kinds of things, the more I can recruit better physicians and lure more talent, because they see a full community. I’ve gotten my heads kicked in a lot of times for doing this stuff, but we’ve stuck with it, and now the virtue of it is right there for everyone to see.”

Yup, Kelby went there.

Donating 40 acres and in exchange you got millions in a TIF deal that set precedent in the city. Thanks for the donation, but you really should be thanking the city for all the perks you have received over the years.

But let’s look at the timing of this ‘deal’;

FARGO, N.D. (AP) – Sanford Health is starting construction on a $541 million medical center in North Dakota’s largest city.

Groundbreaking for the Fargo campus was Tuesday. Sanford President and CEO Kelby Krabbenhoft called it a historic day. The facility is to open in 2016, serving more than 4,200 patients daily.

The 10-story medical center will include 460 hospital beds, 32 operating rooms and 51 emergency department bays. By 2018 it is to be staffed by more than 260 physicians working in 48 different specialties.

Sanford already employs more than 7,500 people in Fargo and neighboring Moorhead, Minn. The new medical center will create an additional 2,000 full-time positions.

Sanford is based in Fargo and in Sioux Falls, S.D. It has a presence in more than 100 communities in seven states.

Guest Poster contributed to this;

This article is kind of like our city government, spend without care because the spenders won’t be in office when the bill comes due.

Think about this, just as in Sioux Falls, Fargo had a fine medical system before Sanford Health got involved.  Now the king of the edifice movement is building more shrines to their ego. I have had to deal with a great deal of medical community in recent years, at many in-state and outstate medical facilities. Something I have noticed and has been confirmed by employees of the systems, is the constant overspending on something not needed. We’re not talking about one or two disgruntled employees but by career employees of several levels.

Instead of paying the employees a living wage, SH is spending borrowed money on another building.  The nursing staff, building maintenance and clerical continue to do more work for less.

The priorities of the Board of Directors of Sioux Valley Hospital (Sanford) and Avera McKennan are now geared only toward self-aggrandizement and not patient care.  How can the limited staff keep up with the additional workload for less pay.

I love the staff and doctors, they are humans doing a job without appreciation.  Oh sure, the hospitals spend a lot of money on ads telling us how much they care but really, but really…. We want to be able to check in when it is needed and checkout without catching something.  The staff is the way we can make sure we leave on time and safely.  The care they have given to my many family and friends I assist, under the less than optimal conditions, is amazing.  SH’s desire to keep wasting the trust of the community and the trust funds of the medical system are disgusting.

We used to have a medical system based on patient care first. The two primary hospitals bought equipment together and shared. Doctors were able to easily move between the three hospitals with ease to perform the best patient care possible. The patient is not the most important part of the system.  The billing system is geared so SH can pay for more spending spree items like buildings.

OMG, now Sanford is going to claim ownership of the Events Center by placing a phony billboard on its side.  Another endowment / slush fund boondoggle for SH‘s edifice satisfaction.  Here’s an idea for SH, let’s just change the name of Sioux Falls to Denny’s!  I can see it now, get everyone to eat Denny’s Belly buster breakfast so we need cardiac care and you will finish owning all of us.

Sorry SH, Denny won’t be around forever, who is your next $ prey…

Hunhoff slams Daily Republic for praising the governor for budget surplus

From SD Alliance for Progress;

By Representative Bernie Hunhoff

A recent Daily Republic editorial proclaimed “good news” that our state finished the fiscal year with a $47 million surplus. Yes, $47 million is good, but there’s no news there.

We’ve balanced our budgets in South Dakota since statehood. That’s 123 straight years. And in recent years we haven’t even come close to being in the red. State government is awash in cash. We now have $134 million in official reserves, plus another $725 million in trust funds and as of right now it looks like we could see millions more in surplus for the current fiscal year.

Remember, news happens when a man bites a dog. News is when we don’t balance the budget. Our state constitution requires it.

The real news is this latest confirmation that we unnecessarily slashed school spending by $52 million, and when the federal government sent $26 million the Pierre bureaucracy kept that in their own coffers. Then we slashed spending for children’s health programs, nursing homes and hospitals.

Frugality is a virtue. But we’ve taken it to the extreme in South Dakota. At some point it becomes a vice — like a well-to-do father who won’t buy shoes for his kids.

Despite a guise of frugality, the current administration has started a litany of new programs — many of them for big corporations. One example is the Manpower program that will spend $5 million to help a few companies recruit

workers from out-of-state. That’s what often happens with exorbitant surpluses: they are reclassified as one-time monies and then spent in areas that are low priority, if necessary at all. Thus, frugality turns into waste.

Meanwhile, state government’s share of education spending has dropped precipitously over the last decade, and is now the lowest in the nation in relation to local spending from property taxes. The 49 other state governments contribute an average of 43 percent of their schools’ budgets. In South Dakota, the state’s share has dropped below 30 percent — lowest in the nation — yet we have hundreds of millions in trust funds, excess cash accounts and reserves.

The age-old line from the Pierre bureaucracy is that we dare not risk an adequate investment in education because disaster could be lurking — a flood, a forest fire, beetles, drought or recession. But our penny-pinching has caused a disaster for schools, for property taxpayers in South Dakota and for many community health care facilities.

Your editorial board accused me of playing politics with the “good” budget news this week. I suppose anything can be construed as politics — giving your wife flowers on her birthday, for example. But the only reason many of us are even involved in politics is because we want to improve the lives of South Dakotans.

Is your life better because the state salted away tens of millions of your tax dollars rather than making smart investments in health care and education and keeping property taxes down?

Bernie Hunhoff, a Democrat from Yankton, is the state House minority leader.

 

So will the naming rights agreement add up to $600,000 a year for 20 years

We got the shocking news today that Sanford and FP will be the title sponsor. Let’s see if it adds up . . .

Superlative suggested to the city that they have a starting point of $600,000 a year for 20 years. STARTING POINT.

But here is an interesting twist;

Sanford’s strategy, along with First Premier, was to set up an “endowment” that will be used to offset annual operating costs for the facility, helping to ensure that it does not lose money.

“We looked at it as an investment, not a bid,” Krabbenhoft said. “The city’s goal was to try to defray operating costs, so we sat down and figured out how much that was going to be, and we set up an endowment. That fund will create a dividend income every year to go toward paying off annual operating costs.”

In other words, there will not be a ‘set’ amount for a number of years, the title sponsorship is more like a rich uncle throwing you a few bucks each year in case you get in a bind. I wonder how many other companies proposed such a deal? I think we know the answer.

Also, if you saw yesterday’s budget hearing, Tracy Turbak told the Council that they want an additional $180,000 for Legends in 2013 and they are calling it OPERATING EXPENSES! AND THE PLACE HAS NOT EVEN OPENED YET!

While SF continues to see MORE regulation and RATE INCREASES, Rapid City takes a different approach

Rapid City’s mayor, Sam Kooiker, posted this on his FB page this morning;

The 8% garbage rate decrease passed unanimously in Public Works Committee yesterday. Members Ritchie Nordstrom, John Roberts, Chad Lewis, Ron Sasso and Bill Clayton all voted for it. It now heads to the full council on Monday for a vote. If approved, this will return $300,000 annually to the ratepayers. That’s not including the $100,000 we saved by having your new Public Works Director do the study in house instead of hiring an expensive out of town consultant to do it.
http://rapidcityjournal.com/news/public-works-approves-decrease-in-garbage-fees/article_1de5f02e-0586-5df3-af55-8fcabbe0a120.html

Rapid City does not have private garbage haulers.  It is a city-run service.

On a separate, but similar note, Why isn’t the city of Sioux Falls more proactive in tightening watering restrictions?  I can’t believe we didn’t go to once-a-week a month ago.  Might it be because the more water we use on lawns, the more money the city makes on revenue?

Sure, a lot of people have figured this out and cut back on our useless watering.  I have not watered my lawn once this summer. Not only have I been saving money on water, I have been saving money on mowing my lawn. I think it has been almost 6-weeks since I have mowed. But I still see too many people watering every other morning because they can, and the water literally runs off their yards and down the street and they will keep doing this until Big Brother finally tells them to knock it off. Sheep.