Water Rate Study to Include Reclaimed Water

Even with layers of new management in public works and the water department, the City of San Angelo will engage yet another consultant to study water rates.  Item 5 on the Consent Agenda is:

Consideration of selecting Raftelis Financial Consultants, Inc. for WU-10-14 Water and Water Reclamation Rate Study, budgeted in FY 2014 -15, and authorizing staff to negotiate a contract with said contractor (R. Dickson) 

Note that reclaimed water will be included. The price of reclaimed water should cover any infrastructure expenditures recommended in a different study by Alan Plummer Associates.  It appears the Plummer study needs to provide key input information for the Raftelis study.

I expect CFO Michael Dane and/or Finance Director Tina Bunnell are more than capable of doing this study.  It's also odd that numerous staff have been added in Finance, Public Works and the Water Department, yet outside consultants must be employed.   

Ricky Dickson's 2014 looks much like Will Wilde's 2004 when one person headed up Public Works and employed a cornucopia of consultants. 

Valenzuela Waives PE Requirement Yet Again

San Angelo City Manager Daniel Valenzuela hired a new Water Utilities Director, a position advertised as requiring a professional engineer credential.  Bill Riley has loads of experience and qualifications, but he is not a professional engineer.  The city's PE dearth continues and the questions rises:  why can't San Angelo recruit engineers in staff or management positions?  Why does the City Manager repeatedly wave this core requirement, first for Ricky Dickson and now for Bill Riley? 

Correction 11-3-14:  Thanks to PIO Anthony Wilson for the correction.  Mr. Riley's first name is Bill, not Billy or Bob or Billy Bob.

Trust Needed Before City Can Ramp Up Animal Collaboration

For the last five years the City of San Angelo's Animal Shelter has primarily focused on animal control, ignoring or even working against local animal groups, nonprofit and otherwise.  That was the message Friday afternoon to city leaders.  The list of concerns fell into two major groups:

1)  Intimidating, retaliatory and uncooperative behavior by staff and shelter management to local animal service groups and their volunteers, as well as whistle blower reports of animal cruelty and illegal behavior.

2)  The opportunity to collaborate with local animal groups in larger ways.  This opportunity was explored several years ago when local animal service organizations looked to merge and take over the city's animal shelter.  These talks fell through when the city wouldn't guarantee a consistent revenue stream for the ongoing operation of the shelter

It was interesting to hear layers of city leaders explain away concerns or blame the volunteers for something they had once done improperly.  

How would city leaders react if the Chamber of Commerce or Angelo State's Small Business Development Center said city staff was retaliating or intimidating their staff or potential new businesses considering locating in San Angelo?  Community partners are community partners.  For years a collaborative relationship has not been pursued in the animal services arena.

The Standard Times recently reported:

Cats: They’re on rooftops, in the trees, in the bushes and running wild on the streets of San Angelo.  Are they “community” or “feral” cats?

That was one question the city’s Animal Shelter Advisory Committee raised at its meeting Thursday. The ordinance proposal, which was revised by assistant city attorney Maxwell Branham with the guidance of the group’s subcommittee, to regulate cat colonies changed the verbiage from “feral” to “community.”

That revised ordinance was tabled until the next meeting because it was not made available to committee members until minutes before they convened.

Not only was the revised ordinance not made available to Animal Shelter Advisory Committee members, it was not made available to several members of the subcommittee drafting the proposed ordinance.  Those members are local leaders in animal service organizations doing yeoman's work to control San Angelo's cat population.  They expected to have the ordinance to share with local cat caretakers for feedback purposes.

The word "regulate" shows the city's primary orientation is control, not partnership.  Local cat colony volunteers requested this legal ground after the animal shelter ignored existing ordinances in their effort to remove cats from Mejor Que Nada.  This heavy handed  response to Mejor is also a reflection of the current regime.

Prior shelter managers collaborated with cat colony volunteers who spend their time and money to spay/neuter, vaccinate and care for San Angelo's cats lacking a human home.  Former shelter leaders did not need an ordinance to collaborate.

Back to Friday's meeting:  City leaders admitted animal control was their priority, despite several years when the operating budget placed spay/neuter and adoption as higher priorities.  If the city is truly interested in animal control, those are the methods to employ, especially for cats.  Simply put, the City cannot kill enough animals if spay/neuter and adoption are ignored as principle strategies.

The city has numerous partners in this area and it is hard to believe city management allows staff to work against or shun them.  But that was the story on Friday, told over and over.

Themes included how other rescues and animal groups around the state and nation don't like working with San Angelo's Animal Shelter.  This came from a local dog rescuer who works with Pilots N Paws.

NBC News reported

Pilots N Paws is an airborne rescue mission spiriting homeless dogs from traditional kill shelters where they quite likely would have been euthanized and flying them to new permanent loving homes all arranged by volunteers.

San Angelo operates a traditional kill shelter and there is much community interest and energy in shifting to a low kill shelter.  The City first needs to address the repeated concerns of retaliatory and illegal behavior.  This involves investigation, not explaining away by the leaders who allowed this situation to deteriorate the past five years.

Once that investigation is complete and a collaborative action plan created and committed to by the city and its community partners, then the groups can explore ways to more significantly collaborate.  If the first doesn't happen, there is no basis for undertaking the second.  Trust is nonexistent.  The City must earn it back.

MedHab Partners with MJP Inc.

MedHab's press release stated:

"the company has established a partnership with Olympic champion and world record holder, Michael Johnson, and his athletic training organization, Michael Johnson Performance, Inc., to enhance the functionality of MedHab's lead device, RPM². 

Our goal as a company is to leverage relationships, such as the relationship with MJP, to further enhance the capabilities of RPM2 to provide benefits to all athletes." 

RPM2 is listed on the partner page of MJP's website.  As of now it's simply a heading with no text underneath.  It will be interesting to read their representation of the partnership.  The press release stated:

Regarding RPM², Michael remarked, "We tested RPM² on a number of our team's professional coaches and believe this system will provide us with valuable feedback when monitoring our clients' performances. Our coaches are well trained in helping athletes improve their skills; however, we're now able to more objectively observe the mechanics involved in our clients' movements to enhance their abilities and avoid injury. RPM² will be used as a regular part of our athletes' training.  Having competed professionally, I can personally attest to the importance of ensuring bilateral equivalence for optimal performance."

It will be interesting to see how mechanics come into play given Micheal Johnson's unusual sprinting style.

You would never find his rigid, upright stance, low knee lift and piston-like arm movement in any coaching manual.
He seemed to lose momentum by almost waddling from side to side in his lane, yet inevitably came out of the final bend ahead, like a wind-up toy that had just been let go.

Johnson is the star with name recognition.  What did MedHab have to give to partner with Michael Johnson Performance Inc.?   Is it an equity stake in the company, an annual fee or some other arrangement.  It's a private company so that's confidential business information.  However, it might be something future investors may wish to know.

Frac Sand Loading: The Grindstaff Position

City Councilwoman Elizabeth Grindstaff spoke to her and Texas Pacifico's position on and interest in the proposed frac sand facility:

"For those that don't know I am an employee of Texas Pacifico Railroad (Vice President of Marketing), which is the railroad through the City of San Angelo that proceeds on down to Presidio  It is a property and track that is owned by the State of Texas and the company that I am employed by is the operator of that.  I have no ownership position in Texas Pacifico and am merely an employee.  In my position I work with a number of customers that are looking for transportation on the track, as Mr. Pfluger has in this.  In serving this area.  My company has no relationship with Mr. Pfluger other than the requirement to provide transportation services to and from his site.  There has been some talk of a partnership.  That has gone nowhere with our management. So, at this time we're, we have the obligation to Mr. Pfluger as we do to any other developer on the rail to provide transportation as we are part of the national transportation network."

A retired railroad employee asked Councilwoman Grindstaff how the train would handle the frac sand loads:

Retired Railroad Employee:  "This question is for the railroad.  I worked for the railroad for 43 years and all these times and everything they are quoting.  That ain't going to happen.  Are you going to take these cars to his spot?  Are you going to hotshot them out to the yard at his unloading facility or are going to stop the westbound train to do the switch?

Councilwoman Grindstaff:  "I'm not the operations department.  I can't speak to that."

Retired Railroad Employee:  "O.K.  If they take the westbound train.  How many cars?  150, 100 cars.  If they stop there, they're going to stop short of the switch.  They're going to block all of the cars crossing across Oakes and Chadbourne Street with their train to go in there and get those empties out and put the load in there.  So there's going to be lots of delay on this train track.

Councilwoman Grindstaff:   "Generally the empties are picked up on a separate route. You're right."

Retired Railroad Employee:  "O.K.  Are you going to bring his loads by itself or are you going to have to stop a 150 car train."

Councilwoman Grindstaff:  "I don't know.  I think you'll have to ask Mr. Pfluger what his operational plan is.  That would answer that I think more clearly for everyone."

Mr. Pfluger did not rise to answer this question. Neither the frac sand hauler or unloader answered this man's question. 

Retired Railroad Employee:  "Like I say if you stop that train there going to Barnhart you're going to have to block everything east of there.  Time they get their empties out of there and get their air tests run and everything like that.  I worked 43 years for the railroad.  Like I said I know how long it takes to do stuff like that and it ain't going to happen (as described by Mr. Pfluger)

I applaud local citizens with knowledge educating the public and City Council on issues.

Pfluger & Grindstaff Behind Frac Sand Facility

Local tycoon Lee Pfluger owns Southwest Orient Properties LLC, the company installing a frac sand offloading facility in downtown San Angelo.  City Councilwoman Elizabeth Grindstaff helps rail oriented businesses find property and get established in our area.  The WSJ had this to offer about frac sand offloading in Barnhart:

When the wind blows from the south, unloading the tiny pebbles used in fracking can create small sandstorms that reach the few houses nearby.

San Angelo has more than a few houses nearby.  I heard an employee of the town of Big Lake talk about frac sand this morning.  They said it was from one end of town to the other.  This happened after offloaders promised it would be safely handled and spread would be minimal.

Longtime local leaders are behind the location and operation of San Angelo's new frac sand plant.  Citizens should remember their names should San Angelo's experience mimic Big Lake's.

City Council's Frightening Agenda

San Angelo City Council's agenda packet for their October 21 meeting is a scary 868 pages long.  I searched for it Friday and Saturday to no avail.  It appeared today in the form of two documents. 

There are other spooky items besides health insurance.  They include:

1)  Potential concerns over the proposed use of the subject property as a sand transloading facility has prompted the request to provide an informational briefing, clarifying the distinguishing allowed uses within the Light Manufacturing Zoning District versus those that are allowed within the Heavy Manufacturing Zoning District. Residents in the adjacent neighborhoods to the east and west of the subject property are fearful of a significant increase in heavy truck traffic, in additional to the likelihood of potentially harmful sand particles going airborne, threatening the health of both children and adults living in the area. 

Note:  City Councilwoman Elizabeth Grindstaff's role with Texas Pacifco is to help locate new rail oriented businesses in our community.  Her district will likely have some impact from offloaded sand.  When the north wind blows sand dust could fall in Santa Rita. 

Southwest Orient Properties, LLC is the sand offloading proprietor.  Local citizen and MedHab angel investor Lee Pfluger is the only officer and director of Southwest Orient.

2)  Refinancing Series 2007-A Certificates of Obligation for water capital projects. Refinancing will allow the negotiation of a lower interest rate and will create savings for the City.

There will be deal fees associated with recalling the current bonds and issuing new ones.  It will be interesting to hear more details about projected savings and the new term of the obligation.

3)  Staff recommends the City Council authorize staff to negotiate and execute a contract with with Fugro Roadware, Inc. for professional services per Request for Qualifications (RFQ) ES-01-14 Professional Services – Professional Services for Pavement Data Collection and Pavement Management.   Professional Services for Pavement Data Collection and Pavement Management will not exceed $185,000. The funding for this project has been budgeted in FY 2014 -2015.

The lack of staff engineers will cost the city in yet another way.  Look for more details on what's included.  Hopefully, a council representative will ask why the city has to contract out engineering functions it used to complete in house.

4)  Staff recommends purchase of SunGard software in support of City Council priority to “improve the development process,” realizing greater efficiencies due to the ability to perform electronic plan submissions and review, mobile building inspections, automated plan status notifications, and the like.  Financial impact:  $276,876 (one-time cost) plus $46,120 (recurring annual maintenance)

The development software will integrate with SunGard's engineering application.  It's not clear if the city is using other SunGard applications at this time.

5)  Staff requests consideration of authorizing the payment of West Texas Water Partnership invoices as they are received. Currently, all invoices are reviewed by the City Council prior to payment.  Staff recommends automating the process for payment of invoices related to charges for the West Texas Water Partnership.

This proposal comes from the transparency Gold level Finance Department.

There's more fun to be had at this meeting.  The City's Health Department will do something other than shrink as it looks for approval of

6)  A Resolution of the City of San Angelo, Texas City Council Authorizing the City Manager to Ratify the Application, Execute an Agreement and Accept the Department of State Health Services Supplemental FY2015 Health Promotions & Chronic Disease Prevention – Texas Health Communities Grant funds in the amount of $50,000.00.

This isn't the first time staff asked for approval of a grant it already submitted.  The city's contributions will be:

Health Administration will work as the liaison for the TXHC Self-Assessment and work with DSHS Program Staff to devise a plan of action based on the results of the Assessment. The Health Department has no prior history with this grant.

The Assessment is due November 15th and the Project Work Plan December 15th.  DSHS will not devise the plan of action, as stated by Health Services Manager Sandra Villareal.  The program specifies the contractor, the City of San Angelo, will complete both the Assessment and Work Plan. 

San Angelo has public health in the shallowest of ways compared to services offered two decades ago.  This grant will not stem the reduction tide under Villareal.

That's enough fright for one post. We'll see if the council meeting makes these issues more of less terrifying. 

City Council to Act on Health Insurance

Last month San Angelo City Councilwoman Charlotte Farmer talked about getting staff salaries up to 85 to 90% of the national averages.  Other council members offered a different comparison group, cities our size or in our region.  Wages are but one component of total compensation, which includes benefits.  One key benefit is on City Council's published agenda:  

29. Consideration of matters related to Request for Proposal HR-01-14: 

a.Discussion of proposals submitted for Request for Proposal HR-01-14 for benefits regarding health/Rx, clinic, dental, flexible spending accounts, employee assistance program (EAP), voluntary benefits and COBRA administration. 

b. Consideration of selecting Benefit Providers related to Request for Proposal HR-01-14, authorizing staff to negotiate contracts, and authorizing the City Manager to execute said contracts and related documents Presentation by Human Resources Director Lisa Marley) 

The city budget projected health insurance costs to soar, with the city picking up a portion of the increase.  How much will employee costs for health insurance rise?  How much will retiree health costs increase?  Several years ago the city hammered employee and early retiree dependents with massive health increases.  It caused nearly 200 people to drop city sponsored health insurance.  The irony was City Council had access to Early Retiree Reinsurance Program funding and chose not to use a penny.

Last year HR Director Lisa Marley changed faces on health insurance costs between budget and council proposal   In one month the projected number swung nearly $1 million.  (fiscal year)

The City's 2013 Comprehensive Annual Financial Report (CAFR) revealed the health insurance fund to be much lower than budgeted, $469,000 vs. the expected $1.23 million. (fiscal year).  The actual drop was even larger.. 

In July Marley flashed a slide showing a projected $2 million increase in health insurance costs (fiscal year).  Staff proposed Council fund $750,000, leaving $1.25 million for employees and retirees to shoulder. 

Former Police Chief Russell Smith has been the voice of retirees on this issue.  Their pay was a fraction of their peers in other cities, yet the selling point was city benefits.  These retirees got neither fair pay or the promised free lifetime healthcare. It must gall retirees to see staff get a 5% across the board increase while their retirement income remains fixed.

Both staff and early retirees will pay more for health insurance coverage.  The question is how much?  Another question is how many positions will no longer have health insurance benefits due to the city's contracting out numerous functions formerly performed by employees? 

Council's discussion should include a deep and honest discussion on health insurance.  That has not occurred in years.

City Sits on Hands while Republic Refunds

The City of San Angelo contracted out its trash and landfill franchises to Trashaway-Republic Services for the last two decades.  Republic's overbilling of commercial customers came to light during the RFP evaluation process, which would determine the trash and landfill operator for the next ten years.  The City abdicated its oversight role, yet again, allowing Republic to audit bills and issue refunds.  At no time dig City leaders call for or conduct an internal investigation into how Republic promulgated these unauthorized fees.  Will Wilde, Ricky Dickson and Shane Kelton all "oversaw" Republic's contract with the city.

Since the city has been hands off Republic can say things like:

All the amounts to be refunded were charged in good faith.

Possibly in good faith that Republic's profits would be maximized, but they did not conform to contract or city ordinance.  The unnamed international accounting firm isn't on record with their findings.  No letter has been made available to the public as to the scope and methodology of their work.

The city failed to explore how this overcharge in excess of $6 million occurred.  No investigative body is exploring the long term bilking of commercial customers.  It's all packaged for public consumption for Halloween, which is symbolic given Republic tricked commercial customers for ten years.   

A class action lawsuit is all that remains between Republic and clear skies.  Republic's legal response to the lawsuit closed with prayer.  Or is it prey-er?

Update 12-7-14:  The Standard Times reported trash customers reaction to the refund and higher trash fees.

MedHab Ready to Announce Major Partnership

MedHab's big news will be revealed next week at a press conference.  City Council representatives and Development Corporation Board members have been invited to attend. 

Update 10-23-14:  MedHab is partnering with the Michael Johnson Performance, Inc.  Johnson is still the world record holder in the 400 meter. 

Water Rebate Consideration Time is Now

There is only one time during the year that it makes sense for San Angelo's City Council to consider rebating a portion of their water fees.  It is after the close of September's financials.  It is both the end of the fiscal year and the end of high water usage as summer's heat begins to abate.

Somehow the City's award winning financial department conned Council into examining rebates in April and November of each year.  The November account is paltry or empty.  Finance transfers fund excesses, often in the multi-million dollar range, as part of its year end close (done in October).  April is also too early as it's before the Water Department's big summer months.

Recall have far the water revenue budget was behind earlier this year?  A $2.4 million figure comes to mind.  The just approved City Budget for 2014-2014 shows a projected deficit of $606,608 in the Water Operating/Enterprise Fund for this year.  This is after the transfer out of $6.1 million to other accounts.

Budgets are projections, so the final tape on water revenues could be shared at the October 21st City Council meeting.  I hope it is.  The public deserves to know.  If not October, then the public will hear something in November.  The question is what?

Michael Dane: Well, each April and November we have an ordinance on the books that requires Staff to look at the fund balance in the water fund and to consider whether the rates, the revenue generated warrants, or has created the situation where we can provide a rebate to rate payers. We’re gonna do that in November anyway; we’ll be discussing results of operations, the net income, or the net loss; that’d be the perfect time to discuss this opportunity so, if this passes we’re interpreting this as a “Be ready to discuss this in November when you talk about the water fund balance.”

Watch for what staff brings to the meeting. I expect one month's performance for 2014-15 and their usual delta approach on how 2013-14 ended.  Hopefully, they'll bring more, show budget and actual performance while noting any water fund transfers made.

This may not be the year for rebates, but it's also not the year to raise fees dramatically to make up for a prematurely represented deficit. 

City Boards & Commissions Deja Vu

Discussion regarding how the City of San Angelo obtains new board or commission members is not new.  Consider this from an August 2011 administrative report:

Boards and Commissions:

Council approved Board and Commission structure on 3-1-2011.  Various recommendations were made and presented for review on 3-22-2011, specifically related to the recruitment committee and board consolidations. City Manager and City Clerk are working with Liaisons to work out an action plan.  Staff is scheduled to present their findings at the September 20th meeting.

Council discussed board consolidations on September 20, 2011 but did not address the process for recruiting new board or commission members.  City staff remain in charge of which names make it to the board or commission for consideration.  Boards are to provide vision, community input and oversight.

A number of highly qualified applicants heard nothing after submitting their names to the Animal Services Advisory Committee when it had two longtime vacancies.  Council appointed a person who is on record recommending illegal treatment of animals as an interim appointee for very same committee..

Obstruction is a strategy for maintaining the status quo.  It operates at multiple levels in at least one arm of San Angelo City government.  Will it continue in the new board member recruitment process?  

MedHab Contract for COSADC Board

Consider Economic Development Director Roland Pena's comments at the beginning of his presentation to the City of San Angelo Development Corporation on August 27, 2014.

"This is a very well respected board and you are on TV and I get the similar kind of comments."

That same meeting the Board received their long requested update on MedHab Inc.  Economic development staff did not have MedHab's contract at their fingertips when MedHab CEO Johnny Ross gave his update . As a public service the contract can be viewed below. 

Medhab Economic Development Agreement with City of San Angelo from jepysdad

How many members of the public could not believe that MedHab was on the agenda and staff did not have the contract?  It's a basic if the aim is to inform.  Otherwise "You are on TV" sounds like theater direction.  

So far the COSADC board has been very compliant with Roland Pena's suggestions.  

1)  The board shifted from two meetings a month to one with virtually no discussion.  
2)  They gave up check signing at their last meeting, allowing this to be done administratively.  Board members did not ask about accounting internal controls and how the new process would comply.    
3)  Roland suggested moving the monthly financial statements to the consent agenda.  After discussion the board decided to have the monthly statements in the background packet and for staff to present quarterly financial reports to the COSADC board.

A key responsibility for any board is fiduciary.  COSADC has the added burden of ensuring its funds go toward primary job creation.  How are they to fulfill this responsibility if checks are cut by staff and financials are only reviewed quarterly?  

BREP starts October 1.  This is supposed to be an automatic program.  If local employers meet the criteria, they'll get a check.  There needs to be much more sunshine in the Development Corporation arena.  Current leadership is dong the opposite, spreading shadows

Ports to Plains: The Rehabilitation of Charlotte Farmer

City Councilwoman Charlotte Farmer will return to the Ports to Plains Alliance board, given Mayor Dwain Morrison is vacating his position in favor of another, yet unnamed board.  San Angelo's City Council nominated Charlotte during its September 16th meeting.  

This move came a year after the same council removed her from the Alliance board, seemingly in punishment for casting stones at another City Council member, Marty Self.  Charlotte Farmer and Christian Reporter News pushed that Self  had a potential conflict of interest as his firm did significant business with the City of San Angelo.  She also broke a story regarding the Council not approving significant funds for the West Texas Water Partnership.  

Consider City Council minutes from September 17, 2013:

APPROVAL OF MAYOR MORRISON’S NOMINATION AND APPOINTMENT TO SERVE ON THE PORTS-TO-PLAINS TRADE CORRIDOR COALITION

Mayor Morrison informed of the quarterly meeting held in October 2013. Offering Councilmember Farmer the opportunity to step down, Ms. Farmer chose not to step down and wished to complete her two year term.  

Motion, to remove Councilmember Farmer and nominate and appoint Mayor Morrison as the Board of Director representative, was made by Councilmember Silvas and seconded by Councilmember Fleming. AYE:  Morrison, Fleming, Self, Silvas, and Vardeman. NAY: Wardlaw and Farmer. Motion carried 4-2.

Video of the meeting revealed the smack down.  Charlotte Farmer's good behavior for 364 days resulted in her reappointment to the Ports to Plains Advisory board.  

Farmer frequently serves as the institutional memory for City Council.  She spoke to her Ports to Plains role at a recent Development Corporation Board meeting.  Farmer omitted her punishment and period of parole in recapping her Ports to Plains involvement.  Image must be maintained.  It also outranks substance.

Update 10-12-14:  The Texas Pacifico trip to Mexico City encountered travel problems trying to leave San Angelo.  American Airlines cancelled their 6:00 am flight to DFW.  This happened three days in a row to relatives this summer.  City leaders knew to drive to Abilene to fly out.