Redding Man Featured in “Blue Collar Millionaires”

CNBC’s new series “Blue Collar Millionaires” featured a Redding man, Boyce Muse, in its initial broadcast. Muse, the founder and owner, with his wife, of Muse Concrete, came up from dire poverty.  At an early age, they bet everything they owned on a future building boom in Northern California.  They bet right.

Concrete is an expensive business.  The machinery involved in pouring and sawing concrete is massive and difficult to transport.  Muse now has over 100 employees, 16 machines up from the original one, and the business did $13M in 2014. They do projects all over Northern California.  The Muses have two homes, a 4000 sf home in Redding and and an 8000 sf mountain retreat near Mt Shasta. And a plane.  You can rent the Shasta house when they’re not using it for $895 a night.

Mrs. Muse is shown describing the trepidation they felt at taking out a loan for a machine that cost more than their then-house. Yes, their bet paid off.  But would that kind of financing even be available today?  Ever since the 2008 crash, it seems that financing has dried up.  It’s going to be hard to spawn more tycoons without capital available for investment.

The next two episodes of “Blue Collar Millionaire” air tonight (July 22) at 7 and 10pm on CNBC.  You may have to tape Sharknado.

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September Humboldt Economic Index

Dr. Eschker and his dedicated group have published their Economic Index for September.    They found that in September Hospitality, Lumber, Employment , and manufacturing orders  were up, while Home Sales, Retail, unemployment claims, building permits and “help wanted” advertising were down.

Proposed Sequoia Conference Facility, How They Used to Travel to SF and Farewell, Penny E.

Yes, I’m one of those nuts who read the legal notices and once in awhile I actually learn something. Today I learned that the HCOE has filed for a negative declaration for their proposed new 9200 sq ft Sequoia Conference Center to be built in the underused northeast sector of the current HCOE campus at Myrtle and West. The new  Center will have a capacity “of up to 350 occupants to serve as training and meeting space for HCOE employees, teachers, and staff members”. The two modular buildings at the back of the lot will be removed and their functions (nursing and nutritional programs) will be absorbed into the current facility.  The new building will include “public restrooms, a serving and warming kitchen with a food service arrangement , a large meeting space (able to be made into two meeting rooms by means of an operable wall system), an entry/lobby area, an administrative office space/meeting room with a public reception counter, and a truck unloading berth” according to the notice.

Other site improvements will include: ADA compliant access ramps and routes, parking lot re-striping to accommodate 27 new parking spaces, a four-foot vine-covered fence along West Avenue, parking lot islands and planters, new LED lighting, sewer realignment and fire supply lines and a new hydrant and “reconstruction of the Myrtle Avenue driveway to include a dedicated right-turn exit lane.”  School buses currently parked there will be removed to the Glen Paul site.

Those of us who have had the unlovely task of trying to find suitable meeting space in this town are drooling on our keyboards, and we can only hope that the HCOE will continue to make its meeting spaces available when not needed for HCOE business. I remember when the Redwood Tech Consortium used to meet out there. This room will hold more than the Wharfinger or the Aquatic Center and nearly as many as the Adorni, which claims to hold 400 but I think that’s with people sitting on each other’s laps.  There is a comment period, starting yesterday and ending January 7.  Comments go to the HCOE at 901 Myrtle Ave and you can review the whole study at that address or at the Main Library. Let’s hope that this work goes to some LOCAL contractors for a change.

The Overland Auto Stage Company- The Humboldt Historian in the current Winter 2013 issue carries a wonderful article by Robert Palmrose about travel to the Bay Area before the railroad. It was a two- day project during the years 1908-1913 and the article (the whole issue) is must reading but I cannot provide a link as the issue has yet to be added to their archives. A shameless plug: a $30 membership to the Humboldt Historical Society is a wonderful gift for anyone you’re doing business with. Buy one for someone and if you haven’t done so, join up. You’ll be glad you did.

PENNY ELSEBUSCH-I was saddened to hear that Penny Elsebusch has died. I had dinner with her and some other folks in October and she was the same Penny as ever. I used to sit with her and Dave at the old Harbor Group meetings and saw them regularly at Chamber meetings. They were regulars at the Taxpayers’ League (which I am not) also. Dave has been gone for two years now, and both of them were wonderful people who will be missed. Goodbye, Penny.  Whenever I hear the sounds of the races at Redwood Acres, I’ll be thinking of you both.

 

 

 

Stupid Employer Tricks and Golfing in Cuba

Was it the Letterman Show that used to feature “Stupid Pet Tricks’? The tricks were invariably dumb but the animals were invariably cute. Employers who cheat their workers and somehow think they’re going to get away with it are not cute.

We had featured the new Holiday Inn (under construction on Broadway in Eureka) a few weeks ago when we couldn’t figure out how a hotel that hadn’t opened yet could possibly have been voted “best” in its category in the Times-Standard “Best of Humboldt” poll.  We got a nice note from the general manager of the McKinleyville Holiday Inn explaining that the real winners were the Holidays in Mack Town and Fortuna and that the error was due to a typo by the Times-Standard.

We were left wondering why construction was proceeding so slowly until last week when the news broke that the project had foundation problems as well as numerous wage and hour violations such as not paying some workers since January (!), over a dozen serious safety violations, and that some 31 workers had been illegally classified as independent contractors. The details were well-reported in the Times-Standard,  the NCJ and in Richard Marks’ blog. I hear that the Carpenters’ Marianne Hassler deserves a lot of credit for setting things straight.

Those of us who weren’t involved can only stand on the sidelines shaking our heads and wondering, WHAT WERE THEY THINKING? Did they really think they were going to get away with cheating workers out of $250K and no one would notice? Or is this another instance of failing to monitor a contractor? ( See our earlier post about the perils of contracting without monitoring.)  Let’s hope this ugly mess is resolved soon.  All we need is another unfinished eyesore on Broadway.

Here’s something to make you feel old:  Fidel Castro turned 87 the other day.  The old devil has outlasted nine US Presidents so far and has turned the reins of government over to his “kid” brother Raul, who has been assiduously seeking foreign investment. He recently gave the go-ahead to construct something that hasn’t been built in Cuba since the 1959 revolution- golf courses! Yes, those emblems of bourgeois prosperity (and money-making machines) are being built- but of course not by Americans. No, our government continues its insane policy of isolating a natural trading partner while the Canadians get richer and richer building hotel after hotel.  It’s said you can’t tell the south side of the island from Waikiki. You won’t hear me often complaining about government rules but  closing off trade with Cuba has hurt American businesses, the Cuban people and hasn’t done a thing to dislodge the Castro government, has it?

Enough already! Does Barack Obama have the political capital and will to end this travesty? We’ll see.

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Lies, Spies and the Trouble with Contracting

         I was working away at my desk in Building Two of the Pearl Harbor Navel Shipyard when a painter suddenly appeared, shoved my desk away from the wall and  started rolling paint on the wall, rolling right over the curled-up and chipped paint already there. This was a pre-war building, in other words had survived the 1941 attack, and looked as if it hadn’t been painted since then,  but even I knew they weren’t doing it right. “Shouldn’t you prep it first?” I asked. “Oh, no” said the painter,  “We use this really good paint – don’t need prepping.”

       For the rest of that day and the next, our walls looked as if they developed a case of acne. Finally on the third day I heard someone yelling out on the second-story veranda. It was a young Lt jg chewing out the painting contractor in what we euphemistically called “Shipyard language.”  The next day they finally did the prep and did the job right.

       The young lieutenant was what in the Navy is called a Contracting Officer’s Technical Representative.(COTR).  He had taken a two-week course in managing contracts, developing specs etc and all the other work involved with making sure the Navy and the public were getting what they paid for. Some people foolishly think that contracting solves your workforce problems.  It doesn’t,  but it substitutes a different set of problems that may, in the circumstances,  be easier to staff. It seldom saves money, because if you’re doing it honestly, you have to add the cost of the COTR, and their staff, and their training. All government agencies are committed to contracting “nonessential functions” or “commercial activities”, like painting, janitorial services, laundry etc to civilian companies or individuals. In those days, it was not considered wise to contract out “essential functions” which need to be kept with government employees for security and other concerns, and in a nuclear Naval Shipyard there were plenty of security issues.  

       So, it is with some amount of amazement I’m following the sorry saga of Booz, Hamilton and their not-very-well supervised employee, Ed Snowden.  That a newbie with only three months on the books would be given the kind of access he was given is ridiculous,but this is the kind of risk you take when you contract out work that would more sanely be done by government employees.  The anti-government politics of the last few years has encouraged cuts in staff in favor of contractors who in turn cut corners. Sounds like Booz, Hamilton did.

       In sum, contracting won’t always save you money but it can definitely be the right thing to do if you don’t want to spend your time doing bookkeeping, janitorial work, payroll or whatever.  Just remember that contracting out a function doesn’t make it  go away; it just makes it easier to forget about.  

With that cheery thought, all good wishes for a relaxed and safe Fourth of July.

UPDATE: The Huff Post carried a good piece on the perils of contracting out national security.  It’s in the morning edition of the “Politics” section and I apologize for not being able to get the  link to work .  Worth visiting their site.