Thursday, October 7, 2010

Unintended Consequences

In December 2009 I wrote an answer explaining why now Denver taxpayers
have to send their tax payments to Dallas, Texas for deposit. Lots of
small business owners button holed me in their stores, in coffee shops
and on the streets asking why they had to waste all that time to send
their taxes and fees to Dallas. They said this was not very business
friendly for Denver to do this to their business folks. Some said they
thought their payments would be late.

A friend, trying to renew his burglar alarm permit just wrote me that he
was "hesitating to mail my check to Dallas, Texas. I figured it was
some sort of scam. Why in the world would the Denver Manager of Revenue
have a Dallas P. O. Box?" At first I too thought it might have been
some cruel hoax perpetrated by an egregious hacker.


But city council staff answered that "a decision was made last year to
decommission the mainframe that housed the program used for burglar
alarm permits. A 'Request for Proposals' was issued and an evaluation
committee identified a solution offered by PMAM Corp., to administer
burglar alarm permits. The City uses lockbox services provided by the
City's primary bank, JP Morgan Chase, to process checks and the Treasury
Division assisted Excise and Licenses in setting up a lockbox to receive
alarm permit fees and tines. The location for large volume lockbox
processing by the bank is also located in Dallas."

Marshall McLuhan, renowned professor of Media Ecology at St. Louis
University, coined the phrase, "the medium is the message." That phrase
helps explain the unintended consequences of the Texas lockbox.

In the eyes of many Denver citizens the message of the medium of the
Dallas P.O.Box for their taxes now bears the stigma of being a possible
scam. The hiring committee at the city did not imagine the spam
connection with their decision on the Dallas lockbox.


When my friend got this answer, he wrote back: "I am always reluctant to
send money to Texas."


When this contract comes up for renewal again, I bet council and the
mayor may look for a provider with a Denver address on tax and burglar
alarm payments. And as long as the policy change has no unintended
consequence and is competitive in price that is.

Stimulus Fund

You might recall a long time ago,last year, I went to Washington to lobby our Colorado Congressional delegation to put additional audit staff at state and local levels to make sure auditors could monitor the stimulus monies properly. Regrettably no moneys were added for audit staff to monitor the stimulus moneys. So local land state auditors and recipient agencies dealing with millions in stimulus dollars have the increased burden to monitor those funds with the same amount of staff before ARRA funds. Now the cows are out of the barn.

Now an inspector general report on the Recovery Act notes that job shortages in federal sectors present problems.

Here are some examples:

Energy department officials pulled staff from other areas to deal with recovery grants but they "lacked financial experience and failed to get key information from grant seekers." USA Today, September 8, 2010. The result for Energy was even more delays.

FEMA has experienced grant delays and decreased oversight due to lack of knowledgeable staff to review it.

Energy complained the money was flowing to their agency and no one was there to manage it.

This is just as I predicted. And I am very proud of John Carlson and our whole Audit Staff for their participation in the recent Mountain and Plains Audit Forum Conference on Auditing Simulus Moneys. I was honored to co-chair the event. Over 120 attended the conference and we all learned lots about the risks to federal stimulus dollars mentioned above. In Denver we are trying to alert departments in our city receiving stimulus moneys of potential risks and internal control issues. Hope you heard me on Colorado Public Radio talking about it. We have issued several audit alerts related to the city's handling of stimulus grants.

St. Rocco's Procession

Last year you might recall my blog this time of year on St. Rocco's procession at Mt. Carmel Church in North Denver gave us a hint on how the recession was affection the economy in our city.

Each August, the Potenza Lodge of Mt. Carmel Church hosts the bidding of the carrying of the statue of the saint through the neighborhood around the church at W. 36th and Navajo. Many people who came to Colorado from Italy, came from Potenza. This last Sunday was the annual Procession of the Statue of St. Rocco. Marie Lava Clayton was there, the Italian Consul was there, Dutchess Iacino Scheitler was there along with the Casagranda's and the LaNegro's all the way from Boulder. I was there, Tony Lombard and his mom were there and several hundred other people from all over were there. Tom Tancredo did not make it. This year the band with lots of trumpets and trombones enlivened the march along the streets of North Denver. The procession brought smiles to the people who come out on porches to watch.

Last year families from the parish bid slightly over $2,000 to carry the statue. That figure was down from previous years which I took as a sign of a tough economy. But this year the bidding family topped over $5,000 which prompted my cousin, Captain Brian Gallagher of Denver's Police Department, to speculate that the high bid may be a good sign that the recovery is around the corner. I argued that it was probably more generous parishoners, not economic recovery.

After the procession through the neighborhood during which two young women dressed as angels handed out flowers to all the women along the parade route, the people made their way to Potenza Lodge across from Leprino's Cheeze Offices on West 38th. Experts say the feast serves the best sausage and green pepper sandwiches in the city.

Finally, friends, amici, this procession is what truly separates Denver from the suburbs. This is community building at the best. This parade is what makes Denver a great city. You just don't get something this special, old-world, ethnic, loveable and meaningful in Cherry Hills Village.

Art and Calligraphy as Economic Development

I am sure it never crossed the minds of the patient monks on the Island of Iona off the coast of Scotland whothe year 800 A.D. penned what we now call the Book of Kells that their work would be viewed by over 500,000 visitors a year. But that is what has happened to this Latin copy of the gospels.

After Viking raids and much pillaging by the same, the Irish monks and pious calligraphers decided to move inland on Ireland to the town of Kells. There the text rested until the Cromwellian days. Cromwell wanted to destroy it because it was a papist text and contained pagan symbols and even the renderings of animals.

In the 11th century Gerald of Cambridge saw it and declared it the work of angels and not of men.

We don't even know the names of the several monks who wrote these magnificent words of the four gospels because it would have been showing pride to put their names on a page.

I guess what I am saying here is that Denver and Colorado can do more to promote the arts as a means of getting us out of this recession which is taking longer to get out of than we thought.

History and Myth as Economic Development

I returned recently from my class in Ireland with Regis University students. One of the many areas of Irish culture we study is how the Irish appreciate good stories and myths. And the Irish have turned history and myth into a very prosperous tourist industry. Myth as tourist attraction is particularly evident at Blarney Castle. Every year I stand in amazement as I watch my students line up to kiss the famous Blarney Stone. The myth and history reports that an ancient king who lived around Blarney Castle had a terrible problem, he had a slight speech hesitation, he stumbled when he spoke, he fumbled with his cloak when he gave speeches to his people. He feared giving a speech more than going to war. The Blarney attraction brings in millions in economic development, stone, wool sweaters, restaurants and the like.

One rainy day, which seems like every day in Ireland, the king came upon a whithered crone sitting near the gates of the castle. The soft rain was washing down down upon her wrinkled face. The king took pity on the old woman and gaver her his cloak to cover her from the rain and chill.

She thanked him, I beleive his name was McCarthy, and she wished to reward him for his kindness. She told him to go up to the top of the Blarney castle and kiss this particular stone below one of the overhangs of the castle. If he did so, she told him, he would be cured of his speech hesitation, his speech stumbling and fumbling and his fear of giving a speech. If he kissed the stone, he would be granted the gift of "eloquentia perfects" perfect eloquence.

The king did so and miraculously received the power of perfect eloquence.

So now thousand upon thousands of visitors line up at the castle in hopes they will be able to overcome their fear of giving speeches. Did you know that the fear of giving a speech is ranked as the number one fear by a vast majority of people who are asked People pay good money for this mythological service. I don't think we have anything to compare with the Blarney story which is several hundred years old.

I guess the closest we in Colorado come to such history and myth as tourism compared to Blarney are places like the Great Sand Dunes and Mesa Verde. Local history attracts many hundreds of visitors to a lesser degree Buffalo Bill's grave and Leadville and Central City. And the holy water at Mother Cabrini's Shrine near Golden has been reported to help cure physical and mental ailments. These old and some ancient sites have lots of mystery and mythology surrounding them to appeal to enough of our human foibles to encourage us to want to visit such places. Tragedy can be a source of visitor interest: consider Sand Creek and Ludlow massacres here in our state. Bothe sites are remote and off the beaten path. It takes special efforts to find these sites. Though I fear our civic memory has diminished the tragic in our history as well. Only one of my students on the Regis Ireland trip could tell me the year JFK was assassinated.

I guess what I am trying to say here is that we should not discount myth, history and legend as sources of potential economic tourism. We must continue to think outside the box if we are to recover from the fiscal crisis which engulfs us. Otherwise we can kiss recovery "goodbye," like the thousands kissing the Blarney stone in hopes of perfect eloquence.

In as pirit of full disclosure I must report that I have never kissed the Blarney Stone. I am afraid it might recharge and fall from its lofty place on the top of the castle roof.

Wednesday, August 4, 2010

Literature toursim

Here in Dublin large but tastefully illustrated brass markers highlight literary events which happened in the city. Brass markers all around Dublin record the paces of Leopold Bloom in James Joyce's epic novel, Ulysses, on June 16, 1904. The event is a world wide celebration of literature. People have christened it Bloom's Day and thousands of readers of Joyce gather in Dublin the celebrate the book. So every June 16th, an economic boom hits Dublin. Students on our tour have been out taking pictures of the markers.

Denver has no equivalent. I guess the closest we could do with our short literary history is to commemorate Jack Kerouac's watching baseball at 23rd and Welton or remember his drinking a beer at My Brother's Bar. Perhaps we could find out where Mary Chase imagined Harvey living in Denver from her play by the same name. And while we have many fine writers who use Denver as the backdrop for their stories, we may have to wait awhile for the city to recognize literature as an economic development tool.

And remember Denver has torn down much of it's history. Gone are buildings of historic note which played out the lives of some of our important literary and historic characters. In Dublin if anyone tries to touch a building mentioned by Joyce in any of his stories, the whole nation gets into an uproar. It is not uncommon for the president or prime minister to intervene in such economic decisions.

Was it Moliere who said: "True art knows no bounds?"

Monday, August 2, 2010

Professor Matt Daly, Director of the Business Division at Regis University, and fellow faculty member on our Regis student tour approves of the business technique used by inn owner Rory O'Conneely on Inish Oirr. Inish Oirr (pronounced 'ear,' is the smallest of the Aran Island chain off the coast of Galway. Rory and his wife Anna operate Tig Ruari, meaning 'Rory's House' in the Irish Language. Foreign languages spoken on the island include English. Our Regis tour stayed there with Rory and Anna last week for two days on our literary and history tour of this country.

When Rory sees you he shakes your hand and says, "Welcome Home." Professor Daly is the expert on business techniques and he and I agree this personal, eye-to-eye, heart to heart communication is the best for long term business alliances.

Cicero summed it all up so well so many years ago when he said: "Cor ad cor loquitur. Heart speaks to heart." And isn't that the best communication for any relationship. We can learn from Rory and Anna and their 'mi casa es su casa' business theme.