"YOU LIGHT UP MY LIFE" debbie boone
At the last council meeting the finance director made a claim that late fees were important to the finances of the city.
All that might be true but you might wonder what an outstanding bill of $400,000 might do to the city's finances? Even after a bounced $60,000 check?
Who's moving equipment out of town on pallets? Are the lights there still on. If there not producing a product why aren't the employee's waiting inside to see if they might be needed? What this operation isn't run like the electric department?
What is the CORE problem here?
Utility bills go unpaid for how long? Who is responsible? Who decides? Will this also show up in our power factors.
Since we don't produce power I guess we just shell this out of our deep pockets?
The good news every city administrator from the acting city manager down will still be paid twice a month. Remember it's not their money only their decision's.
At least soon the bleeding will stop.
posted by terminator1 @ 10:14 AM
39 Comments
39 Comments:
It's like being on the Titanic!
CORE Systems laid off 400 people today, closing doors and liquidating company. WHirlpool pulled out a s a customer of theirs.
I think this also blows a hole in Mr. Unetic's budget? Has to lose over a half a million in city income tax?
According to the news-heard article.
The city, county and state of Ohio all have been working on situation for a while. Joe Hada Jr. President of Painesville City council. I guess I am to assume all council member must have know.
9:00 I wonder if you can assume that?
First the way most of council viewed resident late fees at the last meeting. this would probably make silly now? Remember the JEDD who on council knew?
I see another investagation as to how something like this could happen. What is the city's policy who decides?
It could be interesting?
According to the City Charter
ARTICE XII
UTILITIES
SECTION 2. SUPERVISION BY CITY MANAGER
Any utilities owned or operated by the City shall be under the general supervisdion of the City
Manager.
You have to wonder who was calling the shots?
This is the email I have sent to all council members today.
As stated in todays News-Herald 02/23/12 in the closing of Core Manufacturing.
That the City, County, and state of Ohio were aware of the situation the company was in.
As elected officals were you informed of the situation?
Not to break confidences of executive session. I just want to know as the governing group of city officals what did you decide was the best way to handle this situation.
***********************************
I don't expect any answers I just hope itt gives them something to think about.
What did you want council to do? Make you the first to know then all else can read it in the paper? The city had no hand in their closing. It was a fued between two appliance companies and the company and its employees got caught in the crossfire. I feel very sorry to them as you should to. At least you have food and a home, they may not soon. You always try to make it the fault of city people.
A guy from Core Manufacturing was on the news last night, and he said that on January 24 Whirlpool notified them that they were pulling their business. He said they had no more notice than that. He said after that, the banks wouldn't fund them (their payroll, etc.), and that there was nothing else they could do but close. I'm not making any judgement calls here, or anything, I'm just stating what I saw on the news last night.
400 more jobs gone ... If I can't sell my home, maybe lightning will strike it and burn it down. Where are one of the meteors .. I need one of them.
4:03 I don't blame council or the city for the company's failure. The news article stated that the city,county,and state were aware of the situation?
I wonder who if any on council was made aware of the closing?
Also I would think it would be the responsibility of the administration to inform council of any debt and loss of income tax revenue this closing would have?
You know when companies like CORE decide to make an investment in a city like Painesville, city officals line up to convince people they might have played a part in bring them here. Failure is an orphan.
Who knew what, and when?
It's hard to figure out how a company running three shifts with overtime fails?
5:26 When did Painesville learn Jan 24, or did they see the handwriting on the wall sooner.
5:42 Hang in there your tough enough.
If First Energy has a customer stiff them their accountants can write it off as a loss and it doesn't affect the company's profit. A municipal power company does what? Make the remaining customers pay for the loss?
Sometimes this city acts like a Scrooge and sometimes Santa Claus. I want to know wher the buck stops?
Along with who was Santa when it comes to Core.
So you must believe someone at city hall was at fault to keep the lights on and keep the bread winner of a family working at Core?
7:41 This didn't happen overnight the principles knew this was coming over 6 months ago.
Wells Fargo Bank and Chase Bank had no problem pulling the plug and for that matter either did Whirpool.
This company owed raw material suppliers over 1.5 million. Painesville gets in line after the employees and suppliers and don't be surprised there is nothing left on the carcass. 24 Semi-trucks were loaded there Saturday.Some employees claim that they paid health care benefits in February but policies were canceled at the end of January. Have to wonder what other checks are missing from a company that only had $11,000 in the bank.
Who or what group of people decided to let this bill get out of hand? To keep the jobs or knowlege it had no affect on their responsibility to the city.
Again who do these people represent?
While on the subject of electric power someone ask the people at city hall how the coming
'sequestration" coming next week will affect the city?
Clue'
Prairie State has 5 million dollars in Build America Bonds.
There is plenty of documentation on grants this company was given . In June 2010 they were awarded $600,000. In March 2012 another $100,000. If they owe the city of Painesville another $400,000 for utilities one has to question if Commisioner Dan Troy and state rep. mark Schneider did their homework when he handed the grant money over. Tax dollars are not working for these handouts. http://www.cleveland.com/business/index.ssf/2010/06/core_systems_to_hire_62_worker.html
If so many in charge knew this company was failing why weren't the employees given a heads up to start looking for jobs or someway prepare..... If that is even possible.
Residents cannot pickup the bill for this. The utilities dept. has a reserve but after AMP's pay put, Core and Prairie State headed down the tracks you have to wonder how long that reserve will last?
Term 8:28: I posted previously saying that the CORE guy was on the news saying that the first notice they had about Whirlpool pulling out was on January 24. But after I posted that, I started to wonder how such a company would have to fold so quickly, and not even have enough to pay the bills and payroll for a couple of months to try to find new customers, or just lay people off temporarily until they could try to catch their breath and figure out what to do. Now you say that they knew for 6 months, and that does make more sense. I mean, they immediately -- one month later -- are dismantling the whole place, etc., after their supposed notification from Whirlpool. So I wonder what they deal is? Was he just saving face, as they say?
6:08 I doubt we will ever here the real reason. Things didn't go to Hell in a handbag overnight.
Quality issues, on time delivery, price who knows. It amazes me that someone owned all the equipment that it took 24 semi's to remove it. What exactly did CORE own the time clocks? Now I hear employee 401K are frozen, health care benefits stopped but employees payed into them. No wonder GE sent security people from Nela Park.
One councilman did answer my question and explained the importance of helping the employee's who lost their jobs. Now who will help Painesville recover the financial loss?
Or is that not important?
Anybody hear of a school bus accident involving two PCLS buses. Someone mentioned seeing it on facebook?
It is not at all unusual for manufacturing companies to have their equipment pledged as collatoral on business loans, that is unfortunately the norm in AMerican business today especially having come out of this past recession. Most equipment is initially financed and when you are talking of equipment that is in the 100's of thousand of dollars if not millions, those loans can be for many years. The business credit lines are then secured on the rest of the equipment or in the second position on those pieces already financed.
Businesses having financial issues normally attempt to keep that information fairly under wraps so as to not scare off customers, vendors and employees so it is not a shock that CORE's problems may not have been widely known. As a matter of fact the company may very well have had confidentiatlity agreements in place preventing any parties they talked to from disclosing any information to someone else. I am not saying that was the case but these are fairly common business practices.
An aside to the elf when FirstEnergy "writes off" a loss it absolutely effects their profit no different then the city. Those losses end up being absorbed by the company until such point as FirstEnergy goes back to the Public Utilities Commission and asks for a rate increase.
I understand that so CORE responsibility was only in employees, and raw material and overhead.
Whirlpool will spend alot of money relocating all this equipment. CORE was non-union so they can't use that excuse.
The place was running 24/7.
If your not paying your bills, you can have all the confidentiatily agreement. Your suppliers and the people who sell you something ie; electric power deserve an explaination. At the same time the person, people who run the three businesses in Painesville electric, water, and sewer have an obligation to protect those three. Who protected what and when.
I think I know the answer on who was at the helm . I will keep that to myself for now.
PUCO also protects the profit margins for privately held utilities.
Who willm Painesville go back too?
When the council learned about this should have been your question. Now it is mine WHEN did council learn. two weeks ago, a month ago. when did the learn?
Sandy miller said... "one has to question if Commissioner Dan Troy and state rep. mark Schneider did their homework when he handed the grant money over."
So, only those two are responsible for the grant money given to Core Systems? BTW, who is responsible for the 400 thousand owed the city?
I'll say it again - did you want council to contact you to be the first to know then all else can read it in the paper? Those that needed to know, knew. The rest found out as needed, in the morning paper as we should have.
To you-everything is a conspiracy isn't it? If you, mayor of Cedarbrook, aren't told first so you can be the direct pipeline to the community on this blog it's wrong. I think you should seek help and I don't mean from the folks on this site. Along with your friend, the mayor of Miller. The stuff you come up with is disturbing and disgusting. Anyone who points out workers, and do not know what they are doing at the time are just causing trouble.
5:16/5:25 Looks like TERM hit a nerve?
The way I found out was that Friday morning almost everyone at city hall was talking about it.
Those that need to know,knew. When was it time for them to know? A week in advance? two days?
When will the city reveal what the city lost in utility bills to our community at is a public business? The money amount. I guess the residents need not know about this?
The person or persons that let this Bill get out of hand should be reprimanded.
Maybe the workers are disturbing and disgusting the people that pay them by hiding out? When so many things could be worked on? That spike on that pole in front of the plant is a solutuion, howabout finding the short on State St. or repairing that pole on Rockwood? It's not their fault who's supervising?
Yes the News-Herald reports everything you see here the next day?
My question is when was council made aware of this companys closing and who was responsible for letting the amount Painesville lost get out of control. Why, Who and will that person pay the bill?
My question again to you is-what business is it of YOURS? It's not. It is everyones, not yours you do not work for the city, you do not want to work for the city to see it is not all a bed of roses as you continue to paint the employees nor do you want to better thnigs by running for a position on council or any of the committees. Keep sitting at home and typing your bad attitude but the majority of your readers can see through your transparent image.
I guess as a resident the only business I or anyone who lives here is to pay our taxes, and utility bills and shut up while we watch incompetent leadership and workers do as they please. 11:54 Not in my world.
Bad attitude is from watching bad results.
It take 30 seconds to do a search on google to find out about Core and the current energy situation. I have watched my home value plummet in past few years. So dear "Anonymous" sign your name. That is what's wrong.... Everybody hides, even on the blog. Would be nice to have an open discussion about fixing things.. I'm pretty happy here and want to see it thrive. Currently I don't see that happening. I'm sick of seeing black plastic on windows on Main Street. Great the city is spending big bucks on two blocks but will the plastic go away? If I did that in my home I would be in violation. Why is it ok on Main Street? Perhaps it is you who should seek help..... You're gonna need it when you start getting your electric bill or tax bill.
It's not anyones business ?
Everyone will now pay higher rates to cover the 400,000 dollars owed.
The state requires a minimum reserve, put together the money shelled out Meigs county, EPA fines, Prairie State, this fiasco it's got to be draining very quickly
Well, I am involved and even though Term and I don't always agree, I respect what he does and I am glad he does it.
He is involved in his way and I in mine. Many others should do as much as he does.
Jim gets it. It's not important to have people agree with me, all I want is for people to think of the different problems we have here in town.
It seems silly now to watch council discuss $8.00 late fees and learn about six figures treated as oh well.
Some people will never change their views.
My purpose was to make the community aware of what's going on around them.
How many in Painesville if you said AMP would have thought you were thinking of a drink?
5:41 understands how the system works.
My fear is the people who claim it's not anyones business. That's why we are where we are at.
The state of Ohio requires a 6 month reserve of CASH to cover city owned electric service .. and since we have no idea of how much money AMP will charge every month until they spin their wheel of misfortune this requires Painesville to have an enormous reserve of cash on hand .. the state audit will discover the imbalance and force rates higher to make up the difference. The cash reserve is being dwindled every single month now. City council hid this info from everyone ... SHAME ON THESE BUMS
1:58 Lets add up a few numbers.
2.1 million for Meigs County AMPGS
1.3 million New sub-station
$400,000 in uncollected bills
Plus the unknown figure of how much we pay extra from Prairie State.
Oh lets not forget the "bridge" power at $70MW 3/16 while we wait for power from a plant that will never be built. Another take or pay?
With numbers like this why worry about guys hiding or paying the same amount of people to run the electric plant as if it was generating something?
You have to wonder why all the comotion on adding 10 days grace period to a bill?
I remember Newberrys, Carlisles and the Red Barn, so I'm an oldie. Sandy, I understand your concern of the black plastic on Main Street and you'd be in violation. But I am mystified why no concern of the black plastic wrapped porches and dozens of home violations. I have vacationed in Mexico several times and this is what I saw there. We are NOT Mexico. I do not think this city can move forward until we clean house here. Then and only then will we be the way we were.
News Herald reports today PC schools decline on their state report cards. Look out people, since no one told Term ahead about Core closing, now he'll take issue with the BOE not calling him with the heads-up. Will that be the next beef for the blog cuz he wasn't told personally?
Hey News-Flash Most already knew. I believe someone mentioned it in an old comment.
You know I'm not told anything personally.
5:08 I read about it Feb 25, in a comment on the News-Herald web site. Everyone who attends board meeting also had a good idea this was coming.
They presently are worried what letter grade they would receive in the new grading.
you all are missing the point. Term sqwaked cuz HE wasn't told bout Core. Thought it was another city conspiracy cuz Everyone knew but didn't say. Please reference the past post from the psycic that reported a bad report card prior to todays paper. And there really is a big difference between reading it in print and "having a good idea something is coming". You just can't make this stuff up? Says Who?
Flash you missed my point. Losing an employer with over 400 employees is sad.
The point is it didn't happen overnight.
I feel bad about the 400.
I also feels bad about the 19,000 Painesville residents stuck with a bad decision by someone that will cost us our $400,000 in lost utiliy Bills.
Where and how will we recover the lost money? Your future electric bills maybe?
Honestly, if you owned the power plant would you have let this get so out of hand?
The bad report card was a well known fact. No Psycic needed. The how the facts are important not how they come to the public.
How many employees at CORE may have been illegal? Just wondering by the pictures on front of paper today. Just wondering.
Where is this $400,000 figure coming from? Core did / does not owe $400,000.
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