San Angelo's Water Board Challenge!

The City's Water Advisory Board met for the first time in years today.  The list of names comes from the prior board never pulled together by Ricky Dickson in his term as Water Czar.  Dickson is now the Super Public Works Director, over water, streets and nearly everything else the city under-funded for decades.  The man who never spoke up about the consequences of chronic under-investment will lead the recovery charge on all fronts.

There's a new Water Board in town and someday the City's website will include the current members.  No word yet from Councilman Johnny Silvas on why Paul Alexander is no longer on the board.  That's unusual from a representative so conscientious in getting back to citizens.

Pray for water, wisdom and current information to rain down on our fair city.

Update 5-14-15:  The Water Board webpage has been updated and is now accurate. San Angelo Live noticed the mismatch highlighted in this piece.

MedHab Shoots for $3 million in 5th Capital Raise

SEC filings show MedHab's Johnny Ross selling $3 million in equity.  The May 5th filing showed $25,000 had been raised with $2,975,000 left to be sold.   MedHab's sales are listed in the $1 to $1 million dollar range.  The filing shows MedHab intends to raise this amount within a year, start date May 4, 2015.  Johnny Ross is listed as Sole Manager of the company in this filing.  The document shows no minimum amount for buying an equity stake in MedHab.  The one investor thus far plunked down $25,000. 

This isn't MedHab's first equity raise.  MedHab completed two rounds before the City of San Angelo awarded MedHab a $3.6 million economic development package.  The company has three years to take advantage of the $3.6 million in incentives.  How might that help Johnny Ross sell MedHab to angel investors?

Hirschfeld Wants Out of Economic Development Deal

Hirschfeld Energy informed the City of San Angelo Development Corporation it wanted out of the economic development deal reached in 2009.  Hirschfeld officials requested termination of the agreement and negotiation of a settlement via e-mail on September 30, 2014. 

City Council met a number of times on this subject.  On March 11, 2015 the City announced it would take legal action against Hirschfeld regarding the agreement.  It hired Cowles & Thompson, a Dallas law firm with an initial retainer of $5,000.  City leaders signed the contract with the law firm on February 2, 2015.

Internal documents show the City and Development Corporation asked for

1.  Job creation and retention repayment for failing to grow jobs and retain them for three years.  Hirschfeld Energy lost jobs in 2011 and 2012.  The City seeks roughly $365,000.

2.  Repayment of tax rebates provided by the City of San Angelo in the approximate amount of $266,000.

3. Both the City and the Development Corporation provided Hirschfeld funds for land, buildings and infrastructure.  COSADC seeks $1.5 million, while the City of San Angelo requests roughly $280,000.

These requests total $2.4 million.  A contract is as good as someone's word.

Hirschfeld's website states:

We stand behind our work and what we do.

 We shall see.

Development Corporation Board to Sell Burned MedHab Space?

The City of San Angelo Development Corporation Board entertained a $100,000 offer by an interested party for MedHab's charred office space on Beauregard, the former site of the Concho Valley Center for Entrepreneurial Development.

Airport Lease Bids Wanted

Area citizens have roughly two weeks left to submit bids to the City of San Angelo to lease a hangar at San Angelo Regional Airport.  The draft lease indicates monthly rent of at least $2,500.  That amount could get a bidder 24,000 square feet to house their airplane(s).

Development Corporation Compliance Audit Ordered Released by Texas Attorney General

The Office of the Attorney General ordered the City of San Angelo to release the audit of Development Corporation contracts, which includes a number of economic development agreements. Auditors looked at compliance with contract terms for Martifer-Hirschfeld (now Hirschfeld Energy), MedHab, Glazer's Wholesale Drug and Blue Cross-Blue Shield of Texas. In total auditors examined eleven COSADC contract agreements.

Both the COSADC board and City Council chose not to share this information with the public. This blogger had to appeal to the Attorney General's office for the material's release. Here's the timeline:

January 30, 2015 - Submitted Public Information Request 
February 13 - City Requests Texas Attorney General approval to withhold information 
February 18 - Appealed to Texas Attorney General's office for document's release based on COSADC bylaws and prior publishing of documents where awardees had not met contracted obligations. 
April 23 - Texas Attorney General's Office orders information released
April 28 - City sends required information

It's been my experience that former City Attorney Lysia Bowling frequently requested to keep public information private.  I hope this pattern changes under our new City Attorney.  Consider this my contribution to keeping public information public.

Update 5-5-15:  City Council minutes refer to the audit on September 16, 2014 and February 3, 2015.  While mentioning the prospect of making the audit available to the public the city is yet to do so.

Is City Council Ready to Go High Tech?

Public Information Officer Anthony Wilson will present an audio-visual package for Council's consideration.  The City went out for bids expecting to pay $100,000 to $200,000 for the latest and greatest technology to record meetings and share information while council is in sessions.  The winning bidder came in well above expectations, some $125,000 to $225,000 over.

Anthony's presentation shows a $325,000 capital budget for Public Information while the current operating budget shows $250,000.  I'm sure Anthony will clarify these changes in his presentation on Tuesday.  He always does.

The question is what City Council wants.  Did they prioritize this project above other city needs, like the city's looming pension deficit or safety net health services for citizens? 

Council will make their mark on Tuesday.

Update 5-5-15:  Council gave a resounding yes to spending $325,000 on a new audiovisual system via a 7-0 vote.  The discussion will be interesting to watch.

Update 8-4-15:  Wilson sold Council by saying the new system would allow them to video meetings in rooms outside council chambers.  City Council and COSADC board met on 7-21-15 and the meeting was not videod.  I've asked if the new system has been installed.  I'll update this post with the city's answer. City Clerk Bryan Kendrick replied ,"The new audio/video equipment will be operational in September."  .

Update 10-9-15:  The new video equipment will be installed after the next City Council meeting scheduled for October 20th.