City Paying $130,000 for Water Leadership Drought

City Council will consider hiring Enprotec/Hibbs and Todd to support San Angelo's depleted water department leadership.  The background packet states:

With the Water Utility Director and now Assistant Director position being vacant, assistance is needed to help navigate many of the routine reports and monitoring activities of the Utility. This change order will be for temporary assistance in managing the regulatory paperwork and reports of the Utility until a new Water Utility Director and Assistant Director are hired.

Consider approving Change Order No 1. to ES-06-19 EHT between Enprotec/Hibbs & Todd, Inc. and the City of San Angelo for Water Utilities Department Assistance up to the amount of $130,000

Patrick Frerich, Director of Operations, Water Utilities

Hiring key leaders for strategic priority areas may need to get in the City's strategic plan given the number of vacancies in top positions.  It took over two years to fill the City Engineer position.

There is a real cost to leadership turnover, in this case up to $130,000.  It is budgeted for this fiscal year and the next.  That's either fiscally conservative or sadly practical.

Update 6-6-23:  Councilman Harry Thomas pulled this item from the consent agenda and expressed his concern that the city is losing another key staff person.  Executive Director Public Works Shane Kelton avoided -the loss of yet another leader in the Water Department in his comments to council. 

Update 6-8-23:  Water Utilities Assistant Director Andy Vecellio submitted his resignation on May 12th and June 2nd was his last day with the City of San Angelo.

Benedetti Buyback Hits City Council Again

San Angelo's City Council will revisit a decision it made over four years ago.  Council decided in January 2019 to exercise the buyback agreement in its contract with Benedetti.  

The June 6, 2023 background packet states:

The City is negotiating an agreement with Benedetti, Inc. in order to execute the buyback provision of the original agreement. The repurchase price will result in $800,000 in proceeds to the City plus an additional $17,500 for expected issue costs associated with this redemption of the 2016 Streets CO. Since the agreement with Benedetti is a multi-year agreement, the City must redeem $800,000 of the original CO to avoid potential Federal tax violations associated with a tax-exempt bond which could potentially affect the City's future ability to issue debt. Essentially, the City will be paying off, or calling, a portion of the bonds at an earlier date than originally planned. The City has this funding available in the Debt Service Fund’s fund balance so that it may be placed into escrow for payments at the relevant call dates. The amount placed into escrow will also include approx. $45,366 to cover the costs of interest associated with the bonds at the date of defeasance.

This defeasance will allow the proceeds from the repurchase to be deposited and budgeted, as received, into the Street Infrastructure Fund.

The City will receive $800,000 in proceeds over a period of four years plus an additional $17,500 to cover issue costs. Beyond the costs of issuance, which are being recovered, there is no additional cost to the City that wasn't previously obligated.

City Council approved the purchase of the Benedetti machine to resurface San Angelo's beleaguered roads in December 2016.  Councilman Tom Thompson asked for an update on the machine in March 2018.  City staff provided a memo in response.  Ten months later the city was asking for its money back.

So it took two years for the City to decide the equipment wasn't working and twice that to garner a refund?  

Update 6-6-23:   City Council approved the item as presented. 

Animal Services is Public Safety

Public Safety is one of San Angelo City Council's top priorities.  Animal Services fits under this area but has not gotten near the attention that Police and Fire Departments have garnered.  Council approved borrowing nearly $2 million in short term money to rehabilitate the City Animal Shelter in their February 21, 2023 meeting.  It was presented as an emergency item.

Finance Director Tine Diershke told council in March "the funds we are using can only be used for debt service and that's why we are using those funds at this time."

"This isn't going to solve all our problems.. for the growth that we've had in our community over twenty years is this facility even the right size to serve our community?"--Shelter Chief Morgan Chegwidden

Councilperson Lucy Gonzales said "This is not going to be an expansion for more animals.  We're going to leave it the way it is with the amount of animals we are housing."

Councilman Tommy Hiebert offered "It doesn't really give us a long term solution to some of the issues we're facing."

Issuance fees were $49,000, bond counsel fees $3,500 and interest costs will be $41,327 (the note is due August 15, 2023).  Those total $93,827, a significant amount that could fund may a low cost spay/neuter surgery program.

Council began its strategic planning process today.  They avoided dealing with the Animal Shelter in last year's process but a roach infestation and horrific hoarding conditions became an issue as staff was finalizing the budget for 2022-2023.

Last November City Council refused to approve a $10,000 budget item for low cost spay/neuter.  The Animal Shelter Advisory Committee reiterated this request in their April 2023 meeting but it is yet to reach Council.

Update:

Shelter Chief Morgan Chegwidden talked about planned Shelter renovations and reminded Council they just approved engineering design services for the project.  

Councilperson Lucy Gonzales asked about feral cats.  As usual Morgan ignored the city's only community cat sponsoring organization. 

Critter Shack's Sharon Halfman wrote Morgan in Summer 2021.

We deal successfully with hundreds of colony caretakers in the Concho Valley.  We have an ever-growing list of caretakers and offer as much assistance as we possibly can to these men and women. Since the passing of the ordinance that offers some protection to the caretakers, our programs have focused on providing help to these colony caretakers and a large part of our annual budget is aimed at helping colony caretakers and cat owners in education, financial assistance and low-cost spay/neuter programs.

Critter Shack's low cost spay/neuter clinic has operated for over a decade.  It transitioned from large MASH like operations to a regularly scheduled clinic once the rescue established facilities in Wall, Texas. 

Concho Valley Homepage was able to understand the local rescue situation.  The City Animal Shelter is myopic in this regard.  

It's great the City finally got interested in assisting community cats.  They shouldn't assume their recent contributions made all the difference.  Within the last few months Animal Services refused to assist an elderly Santa Rita resident with her community cat problem.  Hopefully, they.reached out to her with their recently found money for community cat spay/neuter.  That way the city can add to the number of colonies they assist.  They have a ways to go to reach hundreds.

Update 6-12-23:  The Animal Shelter Advisory Committee meets next on August 17, 2023, two days after the $2 million note has been refunded.  The engineering design for shelter improvements should be completed by then.   Will the project have been put out to bid before the next ASAC meeting?  

Update 9-4-23:  Mayor Brenda Gunter and City Council asked numerous questions of Shelter Chief Morgan Chegwidden during a recent budget meeting.   The Mayor referenced a Jackson Street dog attack where at least one pet died.  Details were light on the incident.  Details were also light on the city's efforts to control our third world level of loose animals.

Update 9-27-23:  The City's Capital Improvement Plan has a 4-30-24 completion date for Animal Shelter renovations.  The project is yet to be bid on the city's purchasing website.

Strategic Planning: Court Revenues Down Big

Municipal Court revenues are down 50% over the last five years.  Reasons offered for the decrease include changes in collections, reduction in the number of court filings (which includes tickets), and the impact of the COVID pandemic on operations.  Departments issuing citations include Police, Fire, and Neighborhood and Family Services which includes Code Compliance and Animal Services.

A City Marshall shared their ability to track people down for payment.  He said he had unfilled positions and new responsibilities like providing officers at City Council and court security.  Mayor Gunter said she loves expert testimony. 

The City has a paid consultant in Judge Allen Gilbert who retired in March 2019 only to be hired as an outside consultant.  That contract has been renewed every year.  Council may wish to hear from the Judge about changes that contributed to the significant revenue reduction since he stepped down as the City's Municipal Court Judge.  

Otherwise, the city may not be able to afford keeping Judge Gilbert on as a consultant.

Council To Face Leadership Turnover in Key Areas?

San Angelo City Council meets tomorrow morning to begin strategic planning for the coming fiscal year.  City staff posted an agenda for the session which lists the top three priorities.  Will City Council ask questions about turnover in those three areas?  

Water Chief Allison Strube left in September 2022.  Economic Development Director Guy Andrews resigned last July, effective in August.  Both positions are yet to be filled.

San Angelo finally filled its City Engineer position, vacant since Lance Overstreet resigned in November 2020.  The announcement came in a February 2023 press release.

For the city to make progress on its strategic initiatives it needs capable, stable leadership.  That hasn't been the case for much of the last year in two of the three areas.

Update 6-1-23:  Add the Assistant Water Utilities Director to the key leadership vacancy list.  

Also under development:

...there is currently a vacant “Chief Planner” position within the Planning Division. The department has been unable to fill the position with a qualified applicant...

And in the City Manager's Office the Executive Office Coordinator position is newly vacant.  Becky Dunn joins former City Clerk Julia Antilley in leaving their longtime positions. 

Update 6-8-23:  Water Utilities Assistant Director Andy Vecellio submitted his resignation on May 12th and June 2nd was his last day with the City of San Angelo.  Vecellio will have a new employer but will be staying in San Angelo.

Executive Office Coordinator Becky Dunn's last day with the city was April 30th.  She retired from the City of San Angelo.

Guy Andrews landed a Client Relations position with Centurion Planning and Design.  Former City Engineer Russell Pehl's employment with Centurion ended in January 2023 according to his LinkedIn profile.

Update 4-25-25:  Former City Clerk Julia Antilley is Treasurer for City Councilman Tom Thompson's Mayoral candidacy.

Development Corporation Director Search Bogged Down

 

The City of San Angelo went through at least four qualified Economic Development Director candidates with no success.  Assistant City Manager Michael Dane told City Council last July the search would begin quickly.  

It took two years to hire a City Engineer and that happened via an internal promotion.  Water Chief Alison Strube left last September and is yet to be replaced.  

City Council meets this Friday to begin its annual strategic planning process.  Long running vacancies in key positions has to harm city operations and service quality.  

Economic development has been a top strategic priority for at least a decade.  Council has been at odds with two boards operating in this arena, the Development Corporation board and TIRZ board.

There is much to iron out but city leaders are loathe to listen and do the hard work of managing differences.  Top executives prefer to ignore or steamroll those they view as problematic.  That's why former Economic Development Director Guy Andrews is gone and COSADC's board First Vice President got summarily replaced.  

Issues remain after parties are ignored.  They are not automatically resolved with elimination of one of the parties.  That's likely why the city still searches for Andrews' replacement.  It's clearly strategic.  We'll see if Council addresses it in their planning process.

Update 6-28-23:  Assistant City Manager Michael Dane informed the Development Corporation Board the selection process produced two qualified candidates who have been interviewed.  He stated a meeting will occur this afternoon to discuss those candidates. 

Update 7-13-23:  Assistant City Manager Michael Dane stated the search committee will meet tomorrow to decide between the two active candidates and the position could be filled by the middle of of August.

Update 8-30-23:  The City is having difficulty finding candidates and city leaders may "press pause" on the search.  It's been a year since Guy Andrews retired, later sharing his concerns with the COSADC board.  City Council's interaction with Chamber Chief Walt Koenig would give any candidate pause.

Economic Development is a top three priority for City Council and a number of items are in the cue to be resolved between COSADC and City Council, so the answer is to not hire someone and stretch existing staff further?  Will the city do that with water next?

Development Corporation Deals with Chamber Agreement Yet Again

 

The City of San Angelo Development Corporation eventually gave City Council its desired term for the scope of services amendment portion of the Chamber of Commerce agreement.  It took a trip to Closed Session for the item to be approved.  

The rationale for moving the amendment to closed session was to get the advice of the Assistant City Attorney.  Prior to entering closed session the city attorney spoke numerous times about aspects of the proposal.  

COSADC Board President Max Puello  recalled pushing through the agreement at the 11th hour in December and the up and down process since then which included "good feedback" from City Council.  Puello wanted to flush out a few little details with the city attorney.

City attorneys have been involved at both the COSADC and City Council level for six months.  Issues raised by Mayor Gunter and members of City Council had little to do with city legal advice.  They linger from last year's resignation of Economic Development Director Guy Andrews and concerns shared by Board First Vice President John Bariou.  

Council tried to admonish Bariou in closed session but removed the item after he asked that it be held during open session for the public to hear.  They dropped the item but later replaced Bariou on the COSADC board.  

New Second Vice President Rick Mantooth tried to speak to the conflict by saying the Chamber's relationship with the Development Corporation had never been in danger.  He didn't say the Chamber agreement became one method for City Council to share its irritation over Andrews and Bariou publicly raising concerns.

The Development Corporation has been headed by Assistant City Manager Michael Dane since August 2022.  The first round of four candidates from a recruiter failed to produce any candidates qualified or willing to go forward.  Two candidates are currently in process from the recruiter and visits could be scheduled in the next week or two.

It remains to be seen how settled the situation has become.  I thought City Council would return to a more collaborative stance once it surprise replaced First Vice President John Bariou.  That is yet to happen.  This may or may not have been discussed in Closed Session.

Flashback:  Michael Dane texted on July 14, 2022 that the city would quickly begin the process for filling Guy Andrews position.  

Update 6-1-23:  The Chamber of Commerce agreement is back on City Council's agenda for June 6, 2023.  Amendment 1 has ping-ponged between COSADC board and Council for seven months.