Sunday, September 18, 2016

OE Renewables Update as of August 30th

San Angelo hosted the Wind and Solar Expo 2016 August 30-31.  Southwest Energy Coalition put on the event.  Their webpage posted presentations, two of which dealt with OE Renewables solar farm on city property.    The Chamber of Commerce had one slide (shown above). 

OE Renewables had six slides dealing with the project.  Number 10 on the list below is negotiate potential tax abatements.  An August 2015 report by San Angelo Live stated OE Renewables staff "hope to negotiate local tax incentives provided by Tom Green County and the City of San Angelo."   The city capitulated last year, providing $583,814 in incentives.

Tom Green County Commissioners heard a proposal on October 27, 2015.  The minutes state:

15. Discussion, consideration and action on the designation of the County Reinvestment Zone made the subject of the public hearing to be known as “OneEnergy Renewables Tom Green County Reinvestment Zone”.
Moved to Table #15 and reset a Public Hearing due to use of the term unincorporated in the agenda item.
The issue concerning County Commissioners was "If you sell the improvements will the tax abatement convey with the sell or would it have to come back to court for the new ownership."

Oddly there is no information on OE Renewables success in marketing solar power to energy users hoping to lock in prices for decades. 

As for buyers of this renewable energy, OneEnergy contracts with utilities, corporations, governmental entities and universities because of contract longevity. The company offers contract terms from 10 years to 25 years or more.
Other slides are shown below:

The expo also had a presentation from Goodfellow Air Force base, which is planning its own solar generating project across the street from the base. 

That's one customer OE Renewables would love to have.  Goodfellow could utilize half to all of the power from the Mesquite Solar Farm. 

OE Renewables is developing the Mesquite Solar Project with hopes to sell it to investors wanting a predictable income stream.  The math depends on public subsidies and paying customers.  The presentation is light on both, meaning OE Renewables is keeping its cards close to its chest or the project remains up in the air.

Sunday, August 28, 2016

City Council Can Educate Public on Economic Development Awards

In their August 24th meeting San Angelo's Development Corporation approved a $600,000 economic development incentive for local employer CalTech.  Longtime Development Corporation board member Scott Tankersley works for CalTech as a Tier 3 Services Manager.  He does not sit on CalTech's board nor does he own a stake in the company.

CalTech's website states two people own the company, Will Welch and Brent McCasland.  However, the company does share profits with employees so conceivably a portion of the $600,000 award, should it be earned, could come back to Tankersley in a much smaller amount.  

San Angelo Mayor Dwain Morrison brought back ethics standards for city officials regarding economic development awards.  Morrison served on City Council when standards were loosened to enable then Mayor Alvin New to stay in office while the city awarded a $3.6 million economic development agreement for MedHab.  New served on MedHab's board and held equity stakes in the company high enough to trigger the old rules.

The Development Corporation chose not to speak directly to the public on the rule and how Tankersley's position at CalTech complied with the agreement.  It seemed like a missed opportunity for an organization that practiced deceit not terribly long ago. 

I trust Mayor Morrison to educate the public as to how Scott Tankersley's COSADC board service is not in conflict with CalTech's $600,000 economic development award.  The opportunity to educate is not over.

Update 9-4-16:  The CalTech $603,050 economic development award is on City Council's agenda for their September 6 meeting.  It is on the consent agenda, so a City Council person would need to pull the item for public presentation and discussion.

Update 9-6-16:  City Councilman Harry Thomas publicly declared his son works for CalTech and recused himself from this agenda item by leaving the room.  Staff and elected officials did not share COSADC board member Scott Tankersley's similar action when the item came up for consideration.

Update 9-25-16:  An editor for the Standard Times did what city leaders wouldn't.  The editor wrote "Council member Harry Thomas, SMD 3, recused himself from discussion and voting on the CalTech item as his son works for the company. COSADC board member Scott Tankersley likewise absented himself during CalTech proceedings, as he is a longtime employee of the company."

Monday, August 22, 2016

Sales Tax Decline 2nd Biggest for Fiscal Year

Sales tax proceeds for July 2016 dropped almost to the level seen four years ago.  Only January's decline of 18% topped July's 16% fall.  This occurs as city staff and Council work on a budget for 2016-2017. 

Friday, August 12, 2016

MedHab's New Website Is Up

MedHab's website finally finished construction.  For three years the public saw a graphic that said "Under construction..  Check back with us soon.". 

Their new site listed MedHab's Advisory Board members but not it's Board of Directors.  The website bio for Alvin includes:

Alvin was elected the Mayor of San Angelo in December 2009.  He served in that capacity until June 2013.  His other activities include serving in several areas for Texas Tech and Angelo State, investing in and mentoring small businesses and operating 4N Ranches.
San Angelo's ex-Mayor Alvin New sits on both of MedHab's boards.  Board of Directors member NNNN LP is the very same Alvin New.

The City of San Angelo signed a $3.6 million economic development agreement with MedHab in August 2012.  This occurred under Alvin New's mayoral service.  

MedHab has taken little of their potential economic subsidy from the City of San Angelo.  The company's new website may indicate MedHab has more developments to share. 

Tuesday, August 09, 2016

OE Renewables Solar Farm Late on Plans

Two years ago citizens learned OE Renewables wanted to develop a solar farm on city land.  The original lease details were not included in the City Council background packet.  They were not shared with the public in the August 2014 City Council meeting.

A year ago OE Renewables pressed for public subsidies from the city and county.  The acreage for the lease increased by 75%.  The Midland Reporter Telegram suggested the company had a mid 2016 time frame to have solar generation up and going.  San Angelo Live and the Standard Times also reported on plans for the solar generation facility.

One might expect San Angelo's Mesquite Solar Project to make the News section of One Energy Renewables, the parent company of OE Renewables Texas LLC.  It did not.

Energy prices changed dramatically from two years ago.  Did they drop enough to cast a financial shadow on San Angelo's Solar Farm?  Is it dawn or dusk for OE Renewables in San Angelo?  I expect the public will find out soon.

Tuesday, July 26, 2016

Hiring Brandon Dickson: An Engineered Outcome?

A concerned citizen wrote City Council members on June 13 regarding the hiring of Brandon Dickson as the Assistant Water Treatment Administrator.  The citizen expressed their belief that Executive Director of Public Works Ricky Dickson's son was being hired in at a significant premium to other 2nd tier management positions within the water department.  City leaders quickly mobilized to quell the nepotism concern which had reached the Standard Times news desk.

I learned of Brandon Dickson's hiring from a confidential source the week before he officially started on June 16.  That source prompted my research into the city's process.  The official timeline shows:

City staff provided the following information on the selection process.
The Assistant Superintendent Water Treatment Plant is a new title that was created by upgrading the vacant Water Treatment Supervisor. This was part of the succession planning efforts of the City of San Angelo.

The Assistant Superintendent Water Treatment Plant position was posted to outside candidates from February 26, 2016 through March 11, 2016.  The position was posted once for internal and outside candidates together.

The panel consisted of Bill Riley, Director of Water Utilities; Allison Strube, Assistant Director of Water Utilities; and Charles McGuire, Water Treatment Administrator. 

Thirty four applicants applied for the position; five were interviewed by the panel; Mr. Brandon Dickson was selected.
The panel reported their recommendation to Lisa Marley, Director of Human Resources, who consulted with the City Attorney for review against the nepotism policy of the City. When the City Attorney confirmed no conflict, the recommendation was approved by Lisa Marley and Bill Riley, Director of Water Utilities, was notified of the approval. At that point, the panel’s recommendation was finalized.

Brandon's base salary is $84,500 plus two 5% bonuses for his Class A Operators license in both water and stormwater. His annual pay is $92,950 plus relocation expenses. Given the Class A Water Operator license from TECQ was a basic requirement for the position I thought it odd that this would result in a bonus. 

Also, the city bridged Brandon's time such that his start date with the city is 8-28-2000, which gives him benefits at over the 15 year seniority level.  That makes a difference in both vacation and retirement benefits.

I followed up with several questions for city staff and their responses can be reviewed below:

1)  If the Class A Water Operator license was a requirement for the position,as stated in the job posting, why would that result in an extra 5% bonus?  It would seem to be part of the position's base pay as it is a basic requirement to get the job.

1. There are no documents responsive to this request. In March 2009, the practice was implemented to pay 5% for each Water or Wastewater Operator license that was received by any Water or Wastewater operators up to the Superintendent level. This was a result of the pay and classification study that was completed in 2008. It was determined that it was necessary to augment the pay scales in order to reduce attrition. In July 2014, the practice was expanded to include Water or Wastewater employees other than operators.
2)  In a June 14th 10:24 pm e-mail City Manager Daniel Valenzuela said he wanted to quash concerns about Brandon's hiring with city council.  He said he wanted to update City Council tomorrow, which was June 15.  The information I reviewed lacked what Daniel did with City Council.  I would be interested in knowing Daniel's response to the citizen's concerns to members of City Council, the means and content of his communication with Council members.

2. Please find the attached email from Daniel Valenzuela. Portions of the e-mail included: 
The Assistant Water Treatment Administrator position was not “given” to anyone. We advertised the position, received 34 applications which included several good candidates, 5 of which were invited and interviewed.
Prior to offering Brandon the job, we checked with Lisa Marley in HR as well as the City Attorney to make sure there was no conflict considering his father’s position. Both were confident that there would be no conflict due to the fact of the multiple layers of supervision between father and son. It is also important to point out that this process was conducted with no involvement from Ricky Dickson.
3)  What was the pay range for the position before it was upgraded to Assistant Water Treatment Administrator?  What is the new pay range for the upgraded job?  How does this compare to information in the most recent wage survey for that position (information the city uses to keep its wage and salary program competitive?  Where does the city benchmark itself overall for competitive purposes?  Where does this position fit competitively relative to the city's overall pay program?

3. There are no documents responsive to this request. There was never a classification of an Assistant Water Production Superintendent. The previous position was the Water Treatment Supervisor, grade 20. The current salary range for that grade is $36,526 - $54,790. (The FTE from the vacant Supervisor position was used to create the new classification. The position is not replacing the Supervisor position.) The new classification is Assistant Water Treatment Administrator, grade 31. The current salary range for this grade is $61,516 - $91,991. The grade placement of the new position is in line with the current pay plan, based on requirements of the position and similar positions within the City. 

As for the question "Where does the city benchmark itself overall for competitive purposes?"

4)  A number of e-mails copied City Attorney Theresa Adams.  I never saw a reply from her.  Water Utilities Director Bill Riley wrote City Manager Daniel Valenzuela "Prior to offering Brandon the job we checked with Lisa Marley as well as the city attorney to make sure there was no conflict."  I would be interested in knowing when city legal staff advised on the process which resulted in the interviewing, hiring and employment of Brandon Sanders (dates and times).  If there is any further information that can be shared in this regard, I'd be most grateful for the opportunity to review it.

4. Lisa Marley worked with Bill Riley on his email response to Daniel, and she asked that he include that Theresa James was consulted on the hire. Lisa spoke with Theresa to be sure there was no conflict with the City nepotism policy once Brandon Dickson was the selected candidate. There are no documents associated with this conversation other than the nepotism policy, which is attached.

5)  Public Works Executive Director Ricky Dickson was copied several times in e-mails and there were no replies from him.  Did he at any point in the process expressly recuse himself from the hiring process once he learned his son was a candidate?  If there are any other e-mails from Ricky relative to the upgrading of the position, prior to his circulating the job descriptions on February 8th, I would appreciate the opportunity to review them.

5. There are no documents responsive to this request. Ricky Dickson did mention to Lisa Marley that he wanted to stay out of the process concerning Brandon. To her knowledge, the job description was the only input or involvement Ricky had in the process.
A confidential source believes Dickson set up the process for his son to be chosen for a greatly enhanced position with nearly an immediate opportunity for promotion. The reason they believe this is Ricky Dickson told them Brandon would be returning to city employment. The source says this conversation occurred in January, prior to Ricky's kicking off the search by circulating the revised job description in early February. 

The last time a citizen challenged Brandon's hiring leaders went into overdrive defending the action.  I've shared the city's stance extensively in this post and added information that could call the process into question.  Those who really know Ricky Dickson will have a sense as to what is true.

Sunday, July 10, 2016

City of San Angelo Courting Two Interstate Highways

The City of San Angelo Development Corporation funded the city's sponsorship of Ports-to-Plains/Interstate 27 and Interstate 14 running through town.  Interstate 27 would be a North-South route while Interstate 14 would be more East-West.  These two efforts are in sync, according to the Ports-to-Plains blog.

“Overall I view this as positive for Texas and Ports-to-Plains,” said PTP President Michael Reeves. “It shows that there is a recognized need for new interstates in Texas, provides a valuable new connection for the Ports-to-Plains Corridor, and also the potential for collaboration on an extension of Interstate 27.”
That collaboration involves the section of Interstate between San Angelo and Sterling City.  It would be branded both I-27 and I-14.

The Development Corporation approved $20,000 in sponsorship for the Ports-to-Plains Annual Meeting to be held in San Angelo September 13-15.  The budget called for $5,000 for a Port-to-Plains Summit and money for travel to a number of meetings, including PTP.  Annual dues for the year were estimated at $60,300.

City Councilwoman Charlotte Farmer said San Angelo City Manager Daniel Valenzuela approved another $20,000 in sponsorship money from the public coffers bringing the city's total donation to $40,000 for the upcoming Ports-to-Plain annual meeting.

San Angelo could go from no Interstates to two in a relatively short period of time.  Many people attribute San Angelo's charm to not being on an interstate.

Citizens recently turned out to share their concerns about local trash service, which city leaders designed and bid with little public input.  It will be interesting to see if and when city leaders update citizens on their interstate plans. 

Update 8-15-16:  The Standard Times reported Interstate 14 is in Congressional hands.