Letters to the Editor

Turner on TBID

Dear Editor,

I’d like to address last week’s article “Embattled Community” about Community Skis and its insistence that TBID investment in our community “does the(ir) shop no good.”

There are two points in that article that I’d like to respectfully challenge: (1) That Community Skis feels there is a personal vendetta by John Urdi against them and that (2) as a manufacturer, they cannot also be a determined as a retailer, and therefore not have to collect/pay TBID for retail sales.

Personally, I like Kristen & Michael and love Community Skis’ business model (making custom skis to order).  I love their community involvement with open houses and special programs for adults & kids, and we very much enjoyed being business neighbors when MBC’s tasting room was located on Berner Street.

Until MBC moved out of that location in March, 2014, we had many shared customers who visited both businesses. Mammoth Lakes needs more manufacturers, and in all of these respects, Community Skis has my unwavering support.

Community Skis and Mammoth Brewing Company are similar in that we both manufacture our own products, and we both sell those products out of a brick & mortar storefront (at the retail level) here in town. My view is simply: If we sell a product at the retail level here in town to locals & tourists alike, whether we manufactured that product or not, then that sale is subject to TBID (and sales tax, just like any other retail sale). If we sell at the wholesale level (to distributors or other retailers), or we sell via web store (and ship to an address outside of town), then we don’t charge TBID. It is wonderful that, as a manufacturer, we have these additional sales opportunities (wholesale and web sales). But we also have a responsibility to all the other retail businesses in town (in the case of MBC: our “partner retailers”) to collect for the TBID process to promote the town as a whole (again, whether we manufactured that product or not).

The appeal process is fairly straightforward as well. If Community Skis truly believes the majority of its customers are not tourists, then they are encouraged to bring that documentation before an appeals panel (that John Urdi does not sit on) and a determination is made at that time. Other businesses have successfully done this, but my understanding is that Community Skis has made claims without presenting documentation and has yet to come before the appeals panel.  Complete info on the appeal process is available for everyone at www.MLTBID.com.

And that is where I want to weigh in on the personal vendetta claim, because that certainly is not the case from my or MLT’s BoD perspective.  I have known John Urdi since he moved to town and the one thing I will say about John is that, in my opinion, he is a pretty fair and straightforward guy.  You can debate the methods or efficacy of MLT, but this process (of determining who should be paying into the TBID, and the appeals) is very open, objective and is not John Urdi’s decision. John, his staff and the individuals that make up this Board are all heavily involved in our community, and we would not allow anyone to be personally attacking any business or entity. Let’s please stop that reference altogether, because it is just not true.  The more important debate is about how to make the TBID and MLT stronger for all of us.

I believe the TBID is working, and I will point to the numbers we’ve been experiencing this summer.  The TBID is a minimal “pass through” assessment that is showing return, and I hope the debate stays away from manufacturer vs. retailer because, in the case of both Community Skis and Mammoth Brewing Company, we are proudly both.  We only pay TBID on local retail sales, and I hope our debate can be more focused on how we all can grow and improve this investment in our business community. For MLT’s efforts & results, check out www.MLTIndustryInsider.com.

Sean Turner

Mammoth Lakes

 

The MLT Board consists of:

Sean Turner – co-owner, Mammoth Brewing Co.

John Morris – Snowcreek Resort,

Brent Truax – Sierra Nevada Lodge,

Matthew Lehman – Matthew Lehman Real Estate

Michael Ledesma – Gomez & Base Camp Restaurants,

Erik Forsell – MMSA

Kirk Schaubmayer – Alpenhof Lodge

Michael Raimondo – Mammoth Lakes Town Council

Paul Rudder – Mammoth Outlet Mall and Sierra Center Mall

 

Retailer v. Manufacturer

Dear Editor: 

Community Skis came into the town to apply for a business license. They submitted the application as a “manufacturer” and staff changed it to retail.

In 2014, they sent in the required renewal information with a request to be changed from retail to manufacturer. The Town uses U.S. Census data to make classification determinations. Based on Census data, the license classification was changed to manufacture. Before the Finance Director approved the reclassification he made a site visit to Community Skis and verified that (unlike the Brewery) there was no storefront to sell any retail merchandise. With that, and my research, and the census classification, he approved the reclassification.

There was a piece mentioned in the local paper giving a positive compliment to the Town for seeing through the reclassification.

Shortly after this article (letter) appeared, I was approached by John Urdi, who asked me directly who changed the classification. (BTW he has no right to ask this). I said I did and I asked the Finance Director to approve. Urdi was obviously upset and went to see the Town Manager. Following that meeting, I was instructed to outline all the activities that led to the reclassification. I did.

[Then Finance Director] Mr. Izzo discussed the reclassification and Urdi’s position with me and indicated we were in some kind of trouble because John Urdi was upset that we did this without his approval. Izzo showed me an email from Councilman Raimondo admonishing us for reclassifying Community Skis, comparing it to his restaurant business. I asked Izzo, am I going to get fired about this? He was not sure.

Susan Cash stepped in and demanded I write a “white paper” to Town Council regarding this problem. I admittedly had no idea what she wanted me to accomplish. Izzo told me to do whatever made Susan happy. Write the paper. I wrote the paper as well as the procedures she requested for classification and reclassification.

Izzo said, as per Holler (Town Manager) that moving forward all business classifications needed to be approved by Urdi. I pointed out in the municipal code where employees of the Town were trusted employees, and Urdi wasn’t an employee of the Town. I also asked him to clarify the municipal codes set forth for business classifications as well as reclassification. He agreed that per the municipal code the classifications were set by the Finance Director based on a tested revenue formula where each type of classification was prescribed. That is, if your business is a retail business you pay less tax than say a manufacturer. I also told about the TBID laws of 1994 that said that TBID fees could not conflict with the tax structure of a municipal organization.

Shortly after this, my position as TBID Accounting Asst II was eliminated.

If the Town were to follow through with the premise that Urdi can reclassify anyone he wants, they would have to change/rewrite the TBID Resolution to say so. The fact that Urdi would be reclassifying businesses was never presented to the Town Council for public comment before TBID was passed. it was never brought up to Council that he would have this pwser. Furthermore, If Urdi isn’t consistent in reviewing each and every business for TBID, specifically manufacturers in Mammoth, then this would be harassment on any level.

If I were Community Skis I would take this entire issue  to the Grand jury for its opinion before I ever considered leaving town. I would also remind the Town that TBID members can ask for the disestablishment of TBID at its anniversary in September.

Kind Regards,

Maureen McClain

 

Parsing “Martino reality”

Dear Editor, 

In a recent web post, the “Let Mammoth Decide” group (those in favor of Measure Z) slam Colin Fernie, Town Councilman. Colin had the temerity to suggest that voting yes on Measure Z to keep zoning in place and enforce existing rules is unrealistic. God help the man who speaks the truth.

Let Mammothy Decide, led by retired attorney Greg Martino, interpreted Colin’s statement to mean hat the Town, having failed to enforce its own laws, wants to expand nightly rentals so it has a bigger problem.

That’s “Martino Reality.”

What Colin is really saying is that we have a big problem with the advent of VRBO, AirBnb, Homeaway, Flipkey, etc. and that completely hamstringing the Town from being able to address these problems in a sensible way, which is what Measure “Z” will do, would not help solve the problem one bit.

But Mr. Martino, who started this whole thing to isolate the Knolls, where he lives, has already won. Town Council is on the record as stating it will not contemplate extending nightly rentals into neighborhoods with CC&R’s that prohibit them – the Knolls and Trails are already fully protected, making Measure “Z” an unnecessary and useless expenditure of $50,000 of the public’s money.  Why does Martino and those who support him persist with Measure “Z” even though they’ve already won?  The simple answer; because they can.  It’s not costing them any money and they get to have their personal preferences enshrined in law.

Right now the Town is working on a comprehensive plan to deal with nightly rentals, internet programs, illegal rentals, unpaid TOT, etc.  That plan will not be implemented, however, if Measure “Z” passes, unless we stage yet another vote of the public at a cost of yet another $20,000, in addition to the $50,000 that Measure “Z” will cost.

The problem that we are facing with all these new nightly rental internet programs is that we have a legal system that was never set up to deal with the age of the computer and the internet. Measure “Z” is a meat-ax that will effectively bar the Council from dealing with all these issues, but will do nothing to make the problem go away, and, to be sure, it won’t.

The best way to understand this is to recall the issue of marijuana stores from a few years ago. Marijuana was somewhat legalized in California, and stores selling the stuff were proliferating. Many towns were having major problems with marijuana stores causing all kinds of issues. Our former Town Councils, seeing this coming, passed a comprehensive regulatory scheme that has resulted in a virtually flawless solution here in Mammoth. The town is now limited to two stores that are so low-key and heavily controlled that most people in Mammoth could not tell you where they are. Problem solved. This Council is now working on doing the same with nightly rentals.

Imagine for a moment if Mr. Martino were around during the marijuana discussion. His approach would have been to completely ban marijuana from Mammoth Lakes and pass an ordinance requiring a vote of the public before the Council could make any changes, “Let Mammoth Decide Marijuana!” Does anyone really think this would have solved anything?  Marijuana sales and consumption would not have disappeared; they just would have gone underground. The illegal provision of marijuana, with attendant criminal activity would have mushroomed. Potential violence between rival marijuana suppliers might have become familiar, not to mention police raids, etc.

Now along comes Mr. Martino, and he wants to make all those nightly rental people criminals and then, when the Town finds itself without the resources to prevent the wave of illegal rentals, and no ability to deal with them because of an ill-advised ordinance, Martino’s solution will be to criticize the Council even more.

The simple truth is that the meat-ax approach has been proven not to work. The only way to deal with this problem and not make neighbors into enemies is a rational, well thought-out program to deal with a 21st century issue. What Mr. Martino wants is a police squad that will go out in the night, Gestapo-style and bust single-family rental owners. Perp walks with your neighbors dragged off in handcuffs.  We don’t need this kind of approach in Mammoth.

If we go the Martino way, the slightest little change will be a $20,000 charge and a public vote and the Town can’t afford it.  We’ll have a system that doesn’t work, and no way to fix the problem.  Let’s not vote ourselves into a hole.  Reject Measure “Z” and let the Council do the work we elected them to accomplish.

Paul Rudder 

Mammoth Lakes