Through the Rabbit Hole

Mae West

The election results are in and the South end will have to live with its choice for Port Commissioner and that could be very expensive indeed. Curt Gordon is a nice guy, well meaning and willing to give his time for the public good. But that said, good intentions and three dollars and fifty cents will get you a cup of coffee. His record has been to be a part of endless committees, meetings and more meetings. I have searched for a record of meaningful accomplishments but none are listed in his blog or elsewhere. What he does say is “Ongoing collaboration with local taxing districts such as Parks and Recreation, Fire District #3, South Whidbey Schools and the City of Langley will serve to keep each organization from overlapping taxation.” Over lapping taxation…I still don’t know what that means? What in the world does the Port have to do with schools and the fire department? What he does say is he wants the Port to become involved in sewers and hazardous waste! What does he say about the Langley Marina, “complete the legacy of a marina on South Whidbey.” I’m sure that Curt is good at operating his business but I question if he is aware that there is no real business plan for the Langley Marina? The reality is that most businesses don’t have a business plan and have NEVER done a pro forma cash flow projection. I have been mentoring businesses for eighteen years since I retired and most are in trouble because they don’t have a business plan and when I push to do one they resist. Many small businesses don’t want to be confused by the facts they just hope things will be different. I hope that Curt quickly reads up on this essential document and demands that a real business plan with a pro forma cash flow projection be done – before any more money is poured into completing a legacy. Here are a few things to think about.

•  The Marina is on full throttle but with no real business plan to guide it.  
• The marina at Langley will consume a huge chunk of our Port tax dollars for the foreseeable future unless the process is slowed while some very important financial questions are answered.  
• How do we know that the Langley business district will survive even with a fully developed marina?  
• How will the Marina help the rest of South Whidbey? 
• Curt sounded strong on promoting business growth in South Whidbey but how can that happen with the Marina consuming every dollar our taxes provide? 

A proper business plan for something as complex as the marina would be a huge but essential document. Lets look at an essential element in a business plan, the pro forma cash flow projection. Before any business gets started it must know if it will be profitable. It finds out by doing an accurate and well thought out pro forma cash flow projection. No bank will lend ANY money unless it finds this document credible. The pro forma must include all financial information, from startup costs to balance sheets. The financial section should outline:

• The amount necessary to start and maintain the business including contingencies.  
• The amount needed over the next two, three, and even five years to operate. 
• Detailed plans to use the funds.  
• Anticipated need for additional funding for growth. 
• Sources for those funds.  
• The plan should provide projected income statements and balance sheets for at least two or three years.  
• Ongoing and anticipated business expenses such as funding depreciation and emergencies. 

Everything has a finite life and solid businesses fund depreciation to have money available for repairs or to replace equipment as it wears out over the years. Many businesses fail because they don’t account for emergencies or replacing equipment. Every business has different exposures to problems and a marina is no different.

• The cement breakwater was purchased used and seems in good condition but what is the life expectancy? What if it fails prematurely? How much would a replacement cost?  
• What about the possibility of major storm damage, is there money set-aside for that?  
• What about fuel spills or other hazardous waste spills? 
• How will future expansion be accomplished if there is no grant money?  

A marina can not price its services based on what other marinas charge. It must base prices on what ITS ACTUAL operating costs are. If all the expenses, contingencies, current and future were accounted for and moorage fees adjusted accordingly for just a break-even operation would the fees be so high that no one would use the marina? I have not found any attempt to find this out through a pro format cash flow projection. All the 2010 budget accounts for is funding some new construction and current expenses. In fact the ONLY reason the Marina will have ANY expansion is because of a grant! How will the rest of the expansion be funded if there are no more grants available? The Port budget is right on the edge now. If you remove grants what happens to expansion or even the ability to maintain operations? How will the marina pay for emergencies? What if we have a huge winter storm this year or next that causes extensive damage? Where will the money for repairs come from? Will the Port have to barrow huge sums to finish the expansion and how will that debt be serviced? Too many questions and no solid plan. It appears that we the taxpayers are on the hook for cost overruns, funding operational shortfalls and emergencies…FOREVER! The 12,000 of us not in Langley need to say STOP until some real questions are answered. 

Ed Jenkins

September 21 2009 at 10:30am by Ed Jenkins, newly minted candidate for Port Commission District 3

 The hardest thing about any political campaign is how to win without proving that you are unworthy of winning 

 Adlai E. Stevenson

Below are some of my basic issues that I will address if elected.

• A voice of moderation for those not necessarily in love with the Langley Marina.
• Broad based economic growth for South Whidbey, including Clinton.
• I believe we should not be in the airport business, it could become an economic quagmire.
• I DO believe we should explore utilizing the zoning around the airport to promote light industrial development.
• Recreation opportunities – for everyone. I want to explore ways to expand marine use for many forms of recreation – without breaking the bank.
• Operate with no tax increases and strive for being so successful that we could eventually lower the levy.

These issues of necessity are very short and need expanding. The nice thing about a blog is that it can be updated, expanded and take new directions quickly. So as not to turn this into a novel I will start by relating some of my life experience and qualifications I bring to the table. I have read with interest the two candidates statements in district 3 I am running against and the collective backgrounds are impressive. Interestingly I believe that these very qualifications might also be a concern. I will expand on that later but first a little about me.

I have been blessed to have lived here in South Whidbey, specifically Clinton for sometime now. As I stated I was fortunate enough to retire 17 years ago and I spent much of that time traveling to beautiful, peaceful places. Much of that time was in the Pacific Northwest. In the early seventies I had a chain of clothing stores and some of those locations were local. During those years I grew to love the area. After retiring I spent a lot of my time locally and falling in love with Whidbey Island. During those years in the Northwest and spending time in nature I became acutely aware of the ecology and the need for its preservation. I find it interesting but sad that over much of my business career I was very short sighted and felt the ecology was just a dent on my bottom line. But as I spent time in my camper in wilderness areas and saw the terrible impact unrestrained business was having I felt like the ad years ago where the Indian was crying at the pollution he saw. I saw the impact first hand and my core being changed. Personally I try to live as green a life style as possible. From my travels I knew where I wanted to live out my life, I made a plan and finally made it. Living in South Whidbey has been the columniation of a 40-year dream.

My background has been varied and always different. I have started many small businesses as well as several multi-million dollar businesses. I don’t boast college degrees after my name but I must have been blessed with some common sense, as I have been successful over my working life. Because of this life experience I look through somewhat different glasses than many. I have come to uniquely understand the challenges of ALL local businesses big and small. As I mentioned I am blessed to have had a diverse background other than business, which included racing cars, motorcycles, extensive building renovations, computer graphics and web design for non-profits. I have also worked in Presidential campaigns and local grassroots politics. I say this to only to illustrate that I understand how things work from many perspectives and know how to get things done. Although I am not politically aligned having worked politics at all levels I believe this will make me a better Port Commissioner. Thanks for reading this far and my next posting will start defining my positions on many issues. Stay involved, keep questioning and always remember.

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