COSA Development Corp to Revise Incentive Guidelines Again?

The City of San Angelo Development Corporation revised its Incentive Guidelines on December 14, 2011.  Another revision is on the agenda for February 8, 2012.  Two revisions in less than 60 days?

The first set the stage for City Council to hear MedHab's $3.6 million incentive package.  It involved deleting three requirements.

The minutes reflected the Development Corp's action, which occurred in two stages on December 14:

Stage 1- TABLING ON CONSIDERATION OF AMENDMENTS TO COSADC INCENTIVE GUIDELINES
Mr. Brooks recused himself from this item. Development Coordinator Robert Schneeman presented staff recommendations for changes to the current COSADC Job Creation Incentive Guidelines. The first recommendation would change Eligibility of Applicants (page 9) to be consistent with State laws. The second recommendation would update contact information for the COSADC and Chamber of Commerce staff (page 10).
Motion, to table item until more board members were present, was made by Mr. Cornell and seconded by Mr. Villarreal.
Motion carried unanimously.
Mr. Brooks rejoined the meeting.

After the Executive/Closed Session, where the Board approved a MedHab offer, they revisited the tabled item.

Stage 2-APPROVAL OF AMENDMENTS TO COSADC INCENTIVE GUIDELINES
Community and Economic Development Director Shawn Lewis reviewed the recommended changes and clarified that the recommendations for changes to the Eligibility of Applicants language was to ensure COSADC guidelines were in compliance with State laws. Mr. Villarreal clarified the change would not affect
any companies currently under consideration for incentives.
Motion, to approve, as presented, was made by Mr. Bariou and seconded by Mr. Cornell. 

Motion carried unanimously.
Mr. Brooks abstained from the vote.

I consider Tony Villareal's representation as false.  Had this change not been made, MedHab's incentives could not go forward under COSADC or City Council, not given Mayor Alvin New's and COSADC Board member Randy Brooks' equity stakes in MedHab.

Mayor New recused himself from Council's vote on the $3.6 million MedHab package by crossing the Pacific.  New was in Australia, where MedHab's product is set to launch in June.

MedHab received Concho Valley Angel Network support, beginning in 2008.  AngelouEconomics had this to say about CVAN in their COSADC strategic plan:

Concho Valley Angel Network (CVAN)
The CVAN is a not-for-profit angel investment network with 13 paid members (as of December 2010), and is a member of the Central Texas Angel Network (CTAN) in Austin. CVAN works in collaboration with CTAN to identify the most viable investment opportunities for CVAN members and to invite companies to present these opportunities to CVAN members in San Angelo. CVAN held 8 presentation meetings between June 2009 and December 2010, in which 27 companies presented investment opportunities to the CVAN membership. 14 of these companies have received funding from the CVAN membership in the form of 38 different investments. In 2009, CVAN members invested $620,955 in seven companies, in addition to a second round of funding for one company. In 2010, CVAN members invested another $625,000 in seven more companies, representing a total investment for the first two years of $1,245,995. All of these companies are located in Texas, but outside of the San Angelo region; however, two of these companies are currently exploring opportunities to establish operations in San Angelo.

MedHab is the first or how many $3 million nondebt, nonequity capital injections?  How might the next change in Incentive Guidelines help Angel Network Company #2?  How many local city leaders hold an equity stake in it? 

Streamlined, transparent and well understood?  That might be true for equity stakeholders.

Development to Address Gun Club Walkers?

San Angelo City Council revisited runners and walkers use of Gun Club Road and Hillside Drive.  The Standard Times reported:

The council did not take any action on an item that Councilman Paul Alexander spearheaded calling for a committee of various people with interest in the safety and recreation in an area around Gun Club Hill near Lake Nasworthy, where people frequently jog and walk.

Council members Fredd Adams, Kendall Hirschfeld and Charlotte Farmer said they would prefer to have people who live in the area or elsewhere take their own initiative and not have the city address the issue, and Mayor Alvin New wanted to let development projects already in place for parks and recreation and Lake Nasworthy address the issue.

Adams discussed closing it off from walking, and Alexander said he didn't want to interfere that much in the name of not being "big government."

Alexander previously fought for putting in about a $234,000 trail that goes up on Gun Club Hill, but it didn't pass the council.

Mayor New's development strategy is concerning.  I lived in Lake Jackson, Texas when development closed a popular park frequented by runners and walkers.  The long loop went around Lake Jackson's Lake Jackson.

Which development projects will impact this issue?  What development is planned for the Gun Club/Hillside Drive section of Lake Nasworthy?  How might it impact current recreational use?  

I'll give a listen to the Council meeting on Channel 17.  It may answer my questions.  It often provides subtle indications.  Other times it shouts.

ASU Provost Target is May

The Standard Times reported on Angelo State University's search for a new Provost:

A 15-member committee is in charge of winnowing the applications down to a handful of candidates to present to ASU President Joseph Rallo, hopefully by May.

Brian May, the dean of the College of Graduate Studies, has served as interim provost and vice president of academic affairs since June, after the resignation of Anthony Blose.

Here's what Dr. Rallo said about May's interim appointment as Provost:

“Dr. May has led the graduate program to record levels of enrollment, while also playing an active role in the varied initiatives designed to achieve our enrollment goal of 10,000 students by the year 2020,” Rallo said. “Well respected on campus and in the community, Dr. May has been an exceptional partner in our efforts to secure funding at federal level for our Center for Security Studies and in conjunction with our status as a Hispanic Serving Institution. 

“Overall, Dr. May’s skills are perfectly suited for the challenges we face in maintaining a quality academic program in the face of reduced budgets and academic realignment,” Rallo said. 

Besides May's perfect fit for the job, the newspaper story pointed to an internal candidate:

A major responsibility of the position at ASU will be to help integrate the Quality Enhancement Plan into the curriculum across the university.

The QEP is a requirement for re-accreditation with the Southern Association of Colleges and Schools. ASU has proposed a QEP of community-engaged active learning, which would require students to participate in "real-world" education such as internships as a requirement of graduation.

The QEP will also require active involvement with businesses and organizations in San Angelo and the Concho Valley to develop the internships and other programs for the students.

"We need to have someone in place who is able to maximize those partnerships with the local community."

Dr. Rallo noted May's strong community relationships when the San Angelo Chamber of Commerce named Brian Citizen of the Year in 2008.

“Brian is committed to San Angelo and its future,” Rallo said. “He spends a lot of time serving the community and truly enjoys working with people. His enthusiasm is contagious and, on top of that, he is successful at whatever he sets out to do.” 

Those who've lived in San Angelo know what a great community it is, but it runs funny.  Relationships often take precedence over abilities and qualifications.  Leaders aren't always known for their transparency.

As for ASU's Vice President of Academic Affairs/Provost slot, May is the target in time-frame and name.

Debra Brown Plea Deal: Public Won't Know Jack

U.S. District Attorney James T. Jacks and Defense Attorney David Guinn worked out the Debra Brown embezzlement plea deal.  For stealing $237,013 over six years, Debra Brown pleaded guilty to one count of theft, when six counts made the indictment.

Each count carries a maximum statutory sentence of 10 years in prison and a $250,000 fine, according to a statement issued by the U.S. Department of Justice. Restitution also could be ordered.

 U.S. Attorney James Jacks oversaw other San Angelo cases:

City/County Health Department Chief Mike Loving for child pornography
Mohammed Fayyaz Hayat's wire fraud (owner of American Halal Meat Processors, Inc.)
Hughes family transaction structuring case
Jonathan Jameson for bank robbery/bomb threat
Members of the Mexican Mafia on drug charges
Dentist James Crow for health care fraud

The dental billing fraud has parallels to the Brown case.

Each of the health care fraud counts carries a maximum statutory sentence of 10 years in prison and a $250,000 fine. 

At trial Crow got 70 months in prison and ordered to pay over $1.6 million in restitution.  Debra Brown's plea deal means no trial.  However, there will be a sentencing hearing before the same judge that convicted Dr. Crow.

Brown's defense attorney is a master of understatement: 

Asked to comment on his client’s guilty plea to one count, Brown’s attorney, David M. Guinn, said “it’s too early.”  “We need to wait until sentencing to speak,” he said.

It's darned near too late for those wanting information, accountability and justice.  I believe at least one citizen will be disappointed:

This community DEMANDS accountability and full exposure of any CRIME by entrusted persons. No plea bargaining. No sweeping it under the carpet. NO "official (political) influence" upon TRUTHFUL reporting. We DEMAND a FULL investigation and, if indicated, CHARGES against ALL involved followed by PROSECUTION and a TRIAL with a jury of "peers".  IBTenacious May 16, 2011

Thanks to Jacks, we don't get to know Jack.

Update 6-19-12:  The Standard Times reported Debra Brown was sentenced to four years in federal prison and ordered to pay nearly $325,000 to the Children's Advocacy Center and a $10,000 fine.

Council to Entertain Gun Club Road Committee

Summary: 

This item was requested by Councilman Alexander for the discussion of the
formation of a committee composed of members from the City, the public and
special interest groups such as Hillside Drive walkers, Hillside Drive/Gun Club Road Residents, SAISD and San Angelo Road Lizards to study and make recommendations for improvements on and around Gun Club Hill, including Gun Club Road and Hillside Drive.

History: 

This item was initially requested by Councilman Paul Alexander and presented to the City Council during the work session at the regular meeting of the City Council on August 17, 2010. After discussion of options during the meeting the City Council gave staff direction to research and make recommendations for increased pedestrian signage around Gun Club Loop. Staff performed the appropriate research and presented options to the City Council on September 22, 2010. City Council approved signage was then erected around Gun Club Loop and remains in place to this day.

During the regular meeting of the City Council on January 17, 2012 Councilman Alexander and City Staff presented an option to construct a pedestrian pathway around the top of Gun Club Hill. The City Council voted 6-1 against pursuing construction of the proposed pathway.

Reviewed by Director:

Shawn Lewis, Director of Community and Economic Development, January 30, 2012

Since the January 17 Council meeting, city staff eliminated parking in the shoulder next to the KOA campground.   At the close of the meeting Mayor Alvin New said Gun Club walker/runner parking, dust and the KOA campground would be on the next council agenda.  The agenda showed only:

18.  Consideration and possible action of the possible formation of a temporary committee to study and recommend improvements to the pedestrian and vehicular right of ways on and around Gun Club Hill, including Gun Club Road and Hillside Drive (Presentation by City Engineer Clinton Bailey)

I hope local runners and walkers turn out to be heard this Tuesday.  I know how hard it is to set aside a morning or two-thirds of a day.

One local enthusiast and fitness writer for the Standard Times commented:

The city will probably spend tax dollars to put a pipe fence around the Gun Club parking area, thereby forcing people to park on the shoulder of Gun Club or Knickerbocker. That would mean more city revenues since the PD could then ticket people for illegal parking. I also suspect that the council’s decision is simply a stalling tactic until city staff can figure out how to charge a user fee for running or walking on Gun Club.

That is, if locals can continue to walk or run there.  I watched a favored walker/runner park be eliminated around the lake in Lake Jackson, Texas.  This has the same feel.

Stoddard Construction Management's Good Day

The San Angelo City Council awarded two construction contracts worth a combined $2 million to Stoddard Construction Management in their January 17 council meeting.  The minutes show:

AWARD BID COSADC-01-11 BUSINESS RESOURCE CENTER RENOVATION AND CONSTRUCTION CONTRACT TO STODDARD CONSTRUCTION MANAGEMENT, INC IN AN AMOUNT NOT TO EXCEED $1,334,942.00 FOR CONSTRUCTION RENOVATIONS ON THE FORMER COKE BUILDING AT 69 N. CHADBOURNE

AUTHORIZATION FOR ADDITIONAL PROJECT FUNDS IN AN AMOUNT NOT TO EXCEED$160,000.00 TO COVER COSTS OF ADDITIONAL WORK INCLUDING A NEW ROOF AND FACADE/GLASS STOREFRONT, INCREASED CONTINGENCY FEES, AND INCREASED ARCHITECTURAL FEES

AWARD OF A BID FOR PK-02-11 /RIO VISTA PARK RENOVATION TO STODDARD CONSTRUCTION MANAGEMENT, INC. (BULVERDE, TX) IN THE AMOUNT OF $572,500.00

Purchasing Manager Roger Banks explained the local preference option was not part of the bid process (in relation to the Rio Vista project).

Stoddard received over $2 million in business after council reconvened from Executive Session.  The company already had a virtual lock on city construction projects:

City Hall Renovations - $9.1 million
Fire Station #5 and #7 - $3.9 million

City Hall renovations grew dramatically from the $9.1 million.  For the week ending 7-16-10:

City awarded the $12,979,779 renovation contract to Stoddard Construction Management Inc. 

In July 2011 the City approved a change order.  Council minutes show approval of "Change Order #1, as amended for the total project amount of $1,874,135.96" for HVAC for City Plaza buildings, a central heating and cooling plant, and Auditorium renovations.  This was new work for Stoddard, gotten without competitive bid.

What are the odds that one company would win nearly all of San Angelo's construction projects over a two year period?  That's over $20 million in taxpayer funded business. 

One local citizen believes a potential conflict of interest exists with Stoddard and Assistant City Manager Elizabeth Grindstaff.  Oddly, two leaders who shepherded City Hall renovations may be gone when the new City Hall opens in April.

San Angelo's Shrinking Social Health

It's been a rough decade: