Congress Drives Home Shutdown

Since all news is local:  Shannon Medical Center must be underwhelmed by all the support in getting more Concho Valley residents affordable health insurance coverage.   Rep. Mike Conaway may get the Wesley Soup Kitchen more business.  

Affordable Housing Collaborative Receives September 30 Eviction Notice

The City of San Angelo announced:

Over the past year, San Angelo Rental Housing Mediation Services (SARHMS) helped meet some real needs to educate the public about rental housing issues and to provide guidance to tenants and landlords toward settling rental housing issues. The program has operated as a partnership between Angelo State University and the City of San Angelo.

Due to federal funding cuts and competing priorities, however, funding for SARHMS is not included in current local budgets and there are no immediate plans to continue the service without a steady funding source.

SARHMS is currently winding down and will cease operating on September 30, 2013.

The project was first revealed to the public on December 12, 2012 in the Standard Times:

ASU's Community Development Initiatives is partnering with the city of San Angelo as well as with landlords, Realtors and other key local housing stakeholders to help alleviate disputes involving the community's lowest-income tenants. The San Angelo Rental Housing Mediation Services is a pilot project that takes a two-pronged approach.

This partnership lasted ten months in public view.  San Angelo has a current problem with affordable housing.  Housing rents on my street are multiples (up to 3 times) of what they were five years ago.

Neither the city or ASU's website offers much in the way of insight into the SARHMS' collapse.  The public only knew it was a pilot project and had no information on its funding source.  Apparently, that source withered.

This brings back memories of the City eliminating its immunization and sexually transmitted disease clinic, only to immediately request federal funds for reinstatement.  Uncle Sam bought into the City's shakedown and partially funded restoration of the clinic. 

The same year the City eliminated the STD clinic it:

1) Cut the tax rate by .01 per $1,000 valuation (roughly the same amount as the $138,000 health clinic cut)
2)  Approved a downtown master developer, estimated at $225,000 plus expenses (not in the city budget)
3)  Approved a $335,000 Lake Nasworthy master development plan (not in the city budget)
4) Offered $3.6 million in economic development assistance to a company where the Mayor served on the Board of Directors and had a declared financial conflict of interest (via two signed affidavits).
5) Approved a new employee holiday costing roughly the same amount at the clinic cut.

The City of San Angelo had funds to spend, just not on immunizations or STD diagnosis and treatment.  They did likewise this coming budget year with SARHMS.

San Angelo's roots included Miss Hattie's Bordello.  Ironically, a STD clinic would've directly supported economic development in those days.  But times are different and expansion is in the air.  We'll see how the city spends its expanding pot of money.  It hasn't been on public health services for quite some time.

San Angelo's housing is growing more unaffordable by the day.  We'll see if a white knight steps in and funds SARHMS.  If not, it'll be the latest community collaboration to bite the dust. 

Human Resources Changes Face on Health Insurance

City council 9 17-13 discussion of contingency fund from City of San Angelo Texas

City employees have had raises eaten up by health insurance cost increases in the past.  This prospect looms again.

This budget year comes with a twist, albeit one hard to discern.  Lisa Marley, City of San Angelo Human Resources Manager, gave a convoluted, complicated presentation that mixed employee raises and health insurance, when each item should have been considered separately.

After presenting three scenarios to City Council at their September 17 meeting Marley threw health insurance into the pay scenarios:

This is a drastically different story than Marley told Council in an August 13 budget workshop.  She said she expected significant savings in health insurance for the coming budget year and Council approved a budget with $471,277 fewer dollars for health coverage.  Now she says an increase of $448,000 is needed and suggests that employees need to share in paying this increase.

If the City budgeted the same amount as 2012-2013, there would be no discussion whatsoever.  This looks like administrative sleight of hand to shift more of the cost of health insurance to the employee/retiree.  How would you feel if you got a 2.5% raise and had to pay 3.4% more in health insurance premiums?  Worse, how would you feel about no pay increase as a retiree and having to pay 3.4% more?

I believed the City was being irresponsible in cutting their health insurance budget by nearly $500,000 for the coming budget year and asked about staff's budget assumptions.  Marley had this to say in the budget workshop in mid-August.

"In our budget what we proposed was a 10% increase for the city's portion and a 6% increase for the employees' premiums...   I'm expecting they'll come in much less than that.  We meet next week to go over the new numbers." - Lisa Marley 8-13-13

City Council approved the budget with almost $500,000 less for health insurance on September 3, 2013.  The next council meeting found expected savings to have evaporated.

"But I think we need to be realistic about the costs that are going up with insurance " - Lisa Marley on 9-17-13

The man who ruled the 2013-2014 budget chimed in

"Mayor, I'd like to express special appreciation for HR for looking ahead on this issue.  They didn't want to just blow the raises by you without giving you a head's up on insurance and they worked the weekend in order to work those scenarios up.  So, a special thanks to them for going the extra mile" - Michael Dane, Assistant City Manager/Chief Financial Officer.

I didn't know Lisa Marley would confess to their error so quickly and Michael Dane would refer to this quick flip-flop as "looking ahead."  Oddly, there was no mention of the $201,000 in ERRP money which needs to be used prior to 1-1-14.

I look forward to the day when paid staff can tell a straight story on health insurance.

City Staff Repeatedly Ignore Council's Pleasure

Massive turnover at the senior ranks of San Angelo City officials is a recent fact.  So is City staff failing on numerous occasions to bring items to council or implement council's wishes in a timely manner.  Here are but a few of what I've seen over the last few years.

1.  Failure to update the city's health insurance budget for significant budget savings.  This happened the last two years and is in play for the coming budget year.  Last year this occurred for months after council specifically approved a budget amendment. 

2.  Failure to bring two items regarding the renovated City Hall to Council for approval.  Roger Banks purchasing manager cited the infamous $104,000 in Water Department Furniture and a series of construction change orders that he deemed as needing Council approval. 

The one person that didn't change was Michael Dane, the City's Chief Financial Officer who served as interim City Manager during the Furniture Fiasco.  

City Council members have been most dissatisfied with the last two budget cycles.  Oddly, Dane was promoted to Assistant City Manager post Furniture Fiasco and the first poorly led budget cycle.  Dane is famous for saying at Council meetings, we're ready to act on council's pleasure.

3.  Councilwoman Charlotte Farmer researched the water joint venture between the city and Midland/Abilene and found another breach of a council stated commitment.  The City is essentially $150,000 over the amount Council approved for the joint water effort.  

City Manager Valenzuela and Mayor Morrison issued a statement blaming the faux pas on the lack of our City Attorney's signature and the failure to set up a dedicated account from which to draw down the approved $100,000.  I see the attorney signature as a red herring and the dedicated account as much the same. A budget with clear limits and annotated notes is a tool that can perform the same function.

This isn't a big item, but it occurred on Valenzuela's watch. 

4.  Failure to bring continued pumping of the South Pool at Twin Buttes back to council after 90 days, per council's stated pleasure.  

Tickler files can help leaders truly wanting to implement council's pleasure.  A clear record exists for city staff as City Council meetings are recorded.  One can look through the agendas and minutes to see which topics occurred when.  Video can be fast forwarded to hear the gist of Council's pleasure.

I'm sure there are multiple reasons for repeated failures in this regard.  That said, a number clearly fall in Micheal Dane's court.  At some point Valenzuela will been here long enough for the buck to stop at his desk.  I'd venture that's not far off.

ERRP Help: Too Little, Too Late?

San Angelo's number of early retirees covered under the city's health insurance plan plummeted from 280 to an expected 215 for the coming fiscal year.  The 65 person decrease amounts to a 23% drop.  Ironically, during this time the city had access to hundreds of thousands of dollars to keep early retiree health care affordable. 

The City of San Angelo qualified for federal Early Retiree Reimbursement Program funds three years ago.  The city received $343,000, an amount less than originally projected, but a significant sum.  The first two years the city spent zero ERRP funds.  City leaders, staff and elected officials, painted ERRP money as uncertain in November 2010.  Council refused to use any expected funds to ease the pain of back breaking premium increases foisted on the city's employee and early retiree dependents.   

Only recently did the city tap these funds.

Council approved the use of $142,000 for this fiscal year in order to keep premiums flat from 2012 through 2013.  $201,000 ERRP funds remain, and I will likely ask Council to approve use of those funds for the upcoming premium calculations.

Council instructed City leaders to spend ERRP money in early 2012 to avoid "federal strings."  There is only one string associated with ERRP money, one which staff and council fail to understand.  The City cannot displace local money with federal.   It remains to be seen if the City can comply with this requirement and utilize the $201,000 in remaining ERRP funds.

City Explains Expected Drop in Health Insurance Budget

Below are answers to my questions regarding the budget assumptions that allow the city's health insurance to drop by nearly $500,000 from this budget year 2012-13 to the upcoming one 2013-14.  Human Resources Manager Lisa Marley's responses are in blockquotes below.

During the budget process each year, I am provided a target amount from the Budget Division.  When the budget is turned in it must balance to zero between expenditures and revenues.  At the time that the proposed budget is due, HR only has 4 months of claims data.  Using 4 months of data, I try to estimate what may happen with claims.  Every year this is only a place holder in the budget until more detailed claims data is available later in the calendar year.  To make it balance to zero for this exercise, any differences are deducted from projected claims. The final budget for the self-insurance fund is taken to Council after 10/1 each year. 

1)  How many people are assumed to be in each category for the two budget years - employee/dependents, early retiree/dependents and over 65 retiree?

The demographics are as follows:  2012/13 Assumptions = 805 employees; 237 pre-65 retirees; 229 post-65 retirees.  2013/14 Assumptions = 790 employees; 215 pre-65 retirees; 228 post-65 retirees. (NOTE: The decline in the employee count in this year’s assumptions can be attributed to 34 vacant positions.)

2)  How much are the monthly rates projected to change from the current year to the next?  Lisa Marley said she would have those rates by now in one of the public budget/City Council meetings.

I said I hoped to have them soon and said we had a meeting scheduled with the consultants to start determining upcoming premiums.  The rates have not been finalized.  At this point, I am planning to take the rates to Council at the October 15, 2013 meeting.

3)  Will the city cover fewer people as a result of using temporary employees (from public bids)?  If so, how many fewer due to this one strategy?

The City does not have a strategy to make current fulltime/part time employees temporary.  The City uses temp agencies when employees are off long-term, or if there is a special project that requires more employees, etc.  Presently when temp agency employees are needed, we must call around and get 3 quotes from local agencies and provide this to Purchasing before a request can be approved. The temp agency bid is to simplify rates when temp employees are needed and to have an approved sole vendor for temp services.  Through the bid process if we have one source to use, it will make it more efficient to get temp employees faster by not having to call around for quotes and it will be easier to give consistent prices to the departments who are requesting the temps.

4)  Does the city plan to drop its over 65 retiree group plan and shift this to a private health exchange?

No.

I request to be informed on the reasons, however many, the city budgeted far fewer dollars for health insurance in the coming year than represented in the current budget.

See first response above.  

This leads me to my final questions:

5)  What is the city's health coverage cost year to date?  How does it compare with the budget, which is all the public sees in budget documents?

The latest figures available are through July 31, 2013 (which is 83% of the fiscal year).  Budgeted expenditures = $6,746,767.  Through July 2013 = $5,655,510.  (Not reflected in this amount are five claims paid in August which were in excess of $100,000 each.)

6)  Has the city spent any ERRP monies in this fiscal year?  If so, how much of the roughly $343,000?

Yes.  Council approved the use of $142,000 for this fiscal year in order to keep premiums flat from 2012 through 2013.  $201,000 ERRP funds remain, and I will likely ask Council to approve use of those funds for the upcoming premium calculations.

7)  Will the city bid any of its health insurance plans this year?  If so, when.  If not, when might this topic come before City Council?

No.  The current health insurance contract expires on 12/31/14.  An RFP for health insurance should go out in the spring of 2014.

"Thank You TTU Ethics Point"

Sep 14, 2013, 3:53 PM - TTU
Comment: Hugh Cronin is no longer with the university. After his departure, administration continued to seek opportunities to partner with the campus and the
student organization in an effort to strengthen the viability of the program intended to relocate the feral cats away from residence halls, dining halls, and child development center. 

 Since your report, the university has partnered with the campus feral cat caregivers to ensure no cats are trapped under Drane Hall. During this process, another opening was discovered in the basement allowing cats to freely enter and exit the building once again confirming cats had never been completely trapped underneath the building. 

Before the remaining opening is sealed, a university employee will again put on protective hazmat gear and crawl under the building to verify there are no cats. As soon as the campus feral cat caregivers and anyone else interested in this process witness the search and are satisfied with the results, the opening will be permanently sealed.

Thank you for using the Ethics Point reporting system.

Sep 15, 2013, 9:49 AM - Reporter
Reply: Finding a hole after the fact does not impact facilities management's behavior or intent in the handling of this situation. It promised to collaborate, then never did.

Your response did not address the unprofessional behavior of Hugh Cronin (verbal abuse) or Chris Cook (lying). It did not address President Nellis' or Chancellor Hance's ignoring the problem for weeks to months.

If this is the quality of investigation at a University level I am sorely disappointed. It confirms my assessment that corporate compliance programs exist for show.

Thank you TTU's Ethics Point for your non-answer to my identified concerns.

For those interested the complete report (as of this moment) is below:

Report Submission Date
8/27/2013
Reported Company/Branch Information

Name	Texas Tech University
Location	Texas Tech University - Lubbock 150 Administration Bldg. Box 42005
City/State/Zip	Lubbock, TX, 79409

Violation Information

Issue Type
	Inappropriate Supervisor Directive
Relationship to Institution
	Other/Anonymous
What is the general nature of this matter?
	Assistant Vice President Hugh Cronin of Facilities Management is purposefully barricading Texas Tech's Feral Cats under buildings without food or water, which is defined as animal cruelty under Texas law. Multiple times Cronin has said all cats have been removed and multiple times cats have been seen barricaded under buildings with no food or water.
How did you become aware of this possible violation?
	Other
If other, how?
	TTU employees and area animal service organizations
Where did this incident or possible violation occur?
	Drane Hall over the last week, other buildings prior to this
Please provide the specific or approximate time this incident occurred.
	Thursday evening August 22 all cats removed Friday morning August 23 two cats sighted behind metal grate with no food or water Friday evening Cronin orders sheet metal installed so cats cannot be seen Monday August 26 - two more cats sighted after someone removed sheet metal. Tuesday August 27 - one more cat sighted
How long do you think this problem has been going on?
	1 to 3 months
What leads you to believe the problem has been ongoing?
	A June 3rd Tech announcement said the University would partner with local animal service organizations on cat removal. This turned out to be a complete untruth. Hugh Cronin did not ask for and turned down numerous offers of aid on the safe and ethical removal of Tech's community cats.
Please identify the person(s) you feel are engaged in this behavior.
	Hugh Cronin - Asst. VP Chris Cook - Comm/Mktg
For the persons named above please indicate whether or not they are affiliated with Texas Tech.
	Yes, they are affiliated with TTU
Have you or someone else previously reported this problem to your supervisor or management? If so, by whom, to whom, when, and how?
	I wrote President Nellis on this very issue and received no reply
Do you suspect or know that a supervisor or management is involved?
	Yes
If yes, then who?
	Chris Cook wrote that PETA was involved in helping TTU address the issue. PETA officials, when contacted regarding Tech's animal cruelty, said they had not been contacted by TTU. Cook's blatant misrepresentation is an ethics violation.
What leads you to believe that a supervisor or management is involved?
	Chris Cook wrote that PETA was involved in helping TTU address the issue. PETA officials, when contacted regarding Tech's animal cruelty, said they had not been contacted by TTU. Cook's blatant misrepresentation is an ethics violation.
Please identify any persons who have attempted to conceal this problem and the steps they took to conceal it.
	President Nellis ignored it Chancellor Hance ignored it
Details
	There are many e-mails and pictures. The e-mails can be gotten internally via an IT search of Cronin's and Cook's communications. Pictures exist on the website for the Humane Society of West Texas and the State of the Division blog.

Follow-Up Notes
Sep 02, 2013, 12:38 PM - Reporter
A petition for TTU to install one way excluder devices instead of sheet metal barricades was submitted to President Nellis. This petition had over 330 signatures and was sent due to the urgent need to allow cats out of crawl spaces to obtain food and water.

The Humane Society of West Texas has a second petition with roughly 1,000 signatures asking TTU to reconsider its heavy handed, uncooperative stategies in regard to feral cat removal.

As of Labor Day 2013 cats have been barricaded under Drane Hall with no food or water for two weeks. TTU administration has shown no concern over the welfare of these animals and ramped up its intimidation of people on TTU's campus who are concerned about Tech's animal cruelty.

In one incident the TTU police were called and animal cruelty reported. Assistant Vice President Hugh Cronin was verbally abusive to the person making the report

Sep 02, 2013, 1:54 PM  -  TTU
Comment: Thank you for using the Ethics Point reporting system and for your additional information. We are currently looking into this matter.

Sep 04, 2013, 7:39 PM  - Reporter
Reply: I request a formal reply to concerns stated in this report.

Sep 11, 2013, 11:00 PM  - Reporter
It's been two weeks since I submitted this concern. When might I hear something other than "we're looking into it?"

Sep 14, 2013, 3:53 PM - TTU
Comment: Hugh Cronin is no longer with the university. After his departure, administration continued to seek opportunities to partner with the campus and the
student organization in an effort to strengthen the viability of the program intended to relocate the feral cats away from residence halls, dining halls, and child development center. Since your report, the university has partnered with the campus feral cat caregivers to ensure no cats are trapped under Drane Hall. During this process, another opening was discovered in the basement allowing cats to freely enter and exit the building once again confirming cats had never been completely trapped underneath the building. Before the remaining opening is sealed, a university employee will again put on protective hazmat gear and crawl under the building to verify there are no cats. As soon as the campus feral cat caregivers and anyone else interested in this process witness the search and are satisfied with the results, the opening will be permanently sealed.

Thank you for using the Ethics Point reporting system.
 
Sep 15, 2013, 9:49 AM - Reporter
Reply: Finding a hole after the fact does not impact facilities management's behavior or intent in the handling of this situation. It promised to collaborate, then never did.

Your response did not address the unprofessional behavior of Hugh Cronin (verbal abuse) or Chris Cook (lying). It did not address President Nellis' or Chancellor Hance's ignoring the problem for weeks to months.

If this is the quality of investigation at a University level I am sorely disappointed. It confirms my assessment that corporate compliance programs exist for show.

Eliminating "New" Economic Development Exemption

The City of San Angelo Development Corporation took up "Guidelines for Job Creation Assistance" in their September 11 meeting.  Mayoral candidate Dwain Morrison promised to return rules for business taxpayer subsidies to those that existed prior to January 3, 2012.  That date City Council loosened the rules before granting MedHab a $3.6 million in economic development assistance to locate its production facilities in San Angelo.

Mayor Alvin New sat on MedHab's Board of Directors and had filed two affidavits on his substantial conflict of interest via his MedHab investments.  City of San Angelo Development Corporation Board Member Randy Brooks also was a MedHab investor and similarly conflicted   The January 3rd change allowed the company to get the incentive and these two servants/investors to remain in their public roles.

The irony is MedHab failed to live up to its lofty employment and start up plans.  Council rushed to fund MedHab's product launch in Australia in June 2012, looming FDA approval and 227 San Angelo jobs.  As of September 2013 MedHab has accomplished none of these goals.  However, it did launch a retail product earlier this month with production in Athens, Texas.

The irony of Bob Schneeman's recent presentation to shore up City of San Angelo incentive guidelines is he made the presentation to loosen them in December 2011.  I'm sure former Development Czar Shawn Lewis played a key role in lowering ethics standards.  That said, I'm amazed Schneeman could make his presentation with a straight face.

The good news is higher ethics rules apply to City Council members, Development Corporation board members, and Development Corporation staff.  It covers investment in businesses that might ask council for funding as well as personal real estate holdings from which they might profit. 

Mayor Dwain Morrison substantially fulfilled one election promise on September 11, 2013.  San Angelo won't be a place elected officials or city officials can feather their beds with public money, not until they've been gone from their role for six months.  Hats off to the Mayor.

Texas Tech's Un-Ethics Point

Texas Tech University's lack of forthright communications and public accountability continues regarding administration's harsh actions relative to their longstanding feral cat colony on campus.

Ethics Point is a service TTU employs to give stakeholders, including employees, the opportunity to report unethical behavior on campus.  I made a report of animal cruelty and administrators outright lying in regards to removing feral cats from campus.  I submitted the report on August 27, 2013. 

Sep 02, 2013, 1:54 PM by TTU Administration
Comment: Thank you for using the Ethics Point reporting system
and for your additional information. We are currently
looking into this matter.

Sep 04, 2013, 7:39 PM by PEUReport
Reply: I request a formal reply to concerns stated in this report.

Sep 11, 2013, 11:00 PM by PEUReport
It's been two weeks since I submitted this concern. When might I hear something other than "we're looking into it?"

TTU's lack of response on this issue began well before my Ethics Point filing.  It continues unabated.  TTU is accountable to no one for broken promises, outright lies, breaking animal cruelty laws and having virtually no information on the scope of the problem.  Note the sheer irony detailed below:

The Texas Tech University System is committed to excellence at all levels and supports the highest degree of ethical conduct. In recognizing its obligation to students, employees, and constituents to maintain the highest ethical standards, Texas Tech has established a hotline to provide a confidential avenue for reporting.  

Apparently a concrete response to the hotline is also optional within Ethics Point.

Hugh Cronin's Community Cat War continues unabated.  Given Hugh's termination the offensive is now ably overseen by President Nellis.  He will control the manner, method and nature of TTU's various non-responses.   

Is this the work of an award winning facilities management department?  Hardly.

PPACA Finds Corporations Shafting Retirees

The Great Corporate Health Insurance Dump progressed, with the latest moves targeting over 65 retirees.  Retirees don't like change and face staggering complexity from this latest corporate shedding.  

The Daily Press reported

Shipyard retirees received a shock in the form of a letter regarding their health care last week. Newport News Shipyard, now a division of Huntington Ingalls Industries, informed Medicare-eligible retirees — those aged 65 and older — that they would no longer be part of the company's group plan, effective Jan. 1, 2014.

"It was just a total surprise," said Newport News resident Jack Gergely, 70, who retired from the shipyard 10 years ago.

Shipyard spokeswoman Christie R. Miller said the move to independent plans would reduce administration costs for the company.

In order to maintain nonstop supplemental coverage, the shipyard directed salaried retirees to contact Extend Health, a health-care benefits advisory company, which has conducted transitions in coverage for DuPont, GM, Ford, Honeywell, 3M and Caterpillar in recent years.

"I will say I think it's happening with a lot of companies," said Lisa Walker, a Medicare consultant for Bay Aging. The benefits advisory company takes inventory of retirees' personal information, health status and prescription medications, in order to help them find an individual supplemental insurance plan to best suit their needs.

"They've dumped us. They're acting like we want this," said Ashton Haywood of Hampton, who retired from the shipyard in July 2001. He referenced the letter that led with, "We have heard from Huntington Ingalls retirees that the one-size-fits-all Retiree Medicare Supplement Plan may not be meeting your individual needs." He expressed shock and disappointment. "Benefits are part of your pay. Current employees are taking a de facto pay cut. Their word means nothing," Haywood said. "God knows how much more it's going to cost us."

The Harris family has ties to the shipyard that span generations. "It's scary to go out and look for new insurance," said Newport News resident Shirley Harris, 75. Her husband, Wayne, retired from the shipyard after 35 years. "At least I feel I've taken care of you," he told her before he died from asbestosis, a couple of years later, in 2002. "We've had good coverage. At one time we didn't pay anything, including premiums," said Harris. "I don't know how it's going to affect us. We don't know if it will be more or less. Of course, it's not going to be the same," she added. Her brother and son-in-law also have multiple years of shipyard service between them.

Harris also expressed concern about those in poor health who might not be able to follow the requirements set out by Extend Health (soon to become Towers Watson) before making an appointment. Even if they can gather all the information they require — lists of doctors and prescriptions — the phone appointment is scheduled to take up to two hours. Additionally, each person must apply individually, so Medicare-eligible spouses must choose a separate plan for their 2014 benefits.

Huntington Ingalls is presenting the change as an opportunity for more flexibility, more choices, and the chance to customize plans. "In many cases, these plans will be offered at a lower cost," informed a letter signed by Bill Ermatinger of Huntington Ingalls.

After a pre-interview with Extend Health, Gergely was mostly worried about finding an insurance plan that included his current doctors. "This is almost like the HMOs. The biggest worry to me is how limited we're going to be. Our coverage is fantastic now," he said.

The Extend Health literature informed recipients that the information pertains to retirees, spouses of retirees, and surviving spouses of retirees who are 65 and older. Spouses under 65, and eligible dependent children, can remain on the Huntington Ingalls Retiree Health Plan, as long as the retiree signs up through Extend Health. Retirees are advised that if they do not enroll through Extend Health, they will not receive any Medicare supplemental coverage through Huntington Ingalls after December 2013, and their dependents younger than 65 would not be able to continue their coverage through the company; they may also be subject to Medicare Part D late enrollment penalties if their prescription drug coverage lapses.

"I can't go out and look on my own," said Haywood, whose wife is not yet 65.  Under the new arrangement, retirees who currently receive a company subsidy toward the cost of their Medicare Supplement Plan, will be enrolled in a Retiree Reimbursement Arrangement. The account can be used to pay for premiums for Medicare Parts B and D and also Medicare supplemental benefits; any remaining funds roll over at the end of the year.

All retirees affected will pay their premiums directly to the insurance provider, and those eligible for reimbursements will receive them through Extend Health rather than the shipyard.

Energizer employees not only will lose company health insurance but a $5,000 life insurance policy.

Retirees get complexity and increased responsibility at a time in their life when they may be least able to deal with it. 

This unsettling move will impact hundreds of thousands of retirees.  Corporations have the gall to pedal their shameless cost saving move as benefiting retirees.  How many retirees will fail to follow the rules and get signed up in the first place?  Is it 20%, 33%, maybe 50%?  How many, now in managed Medicare plans, can't navigate complexity to be seen by their physician?  If they're seen at all, how much will their personal responsibility go up? 

Management in America today uses false words to harm people.  In taking away they claim they're giving more.  It's not only widespread and disturbing.  It's sickening.

Texas Enterprise Fund to Get Audit

Governor Rick Perry's Texas Enterprise Fund report to the Legislature is full of the same lies and misrepresentations regarding a $35 million TEF award to Vought Aircraft Aviation in 2004, then owned by The Carlyle Group.

How would you like to have $35 million in Texas taxpayer money for over six years and not have to provide a single new job, much less the 3,000 promised?  That's what Vought did under Carlyle Group ownership years.  In 2010 Carlyle monetized Vought via a sale to Triumph, just as their first TEF report to the state came due.

I wrote Representative Drew Darby with my concerns in 2009, believing he had influence via his legislative subcommittee assignments.  After Darby wrote me back about oversight provisions (or lack thereof), Governor Perry renegotiated the deal in secrecy as Carlyle worked behind the scenes to sell Vought.

Vought, Carlyle Group, the City of Dallas weren't the only ones over-promising and under-delivering.  The Standard Times reported on local TEF recipient Hirschfeld Steel

Hirschfeld Industries received $500,000 from the Texas Enterprise Fund in 2008. The San Angelo-based company was set to produce 225 full-time jobs by 2013 with an annual payroll of $8 million and to invest $40 million in a new plant and expansion.

That was when Hirschfeld Industries had partnered with Martifer to make wind towers, but since then Martifer, a Portuguese company, left Hirschfeld and its plant in West Texas.

According to the latest compliance report Hirschfeld submitted at the beginning of the year, the company had produced 37 of the 225 jobs promised, with an average salary of $35,000 to $39,000.

The latest version of the contract states that Hirschfeld must pay back $861 in damages per job that it is short. It can also roll over credits from years when the company creates more jobs than the contract specifies.

Hirschfeld Industries has paid $264,000 in damages, according to a governor’s office report.

When asked about working with the state, Hirschfeld deferred comment to the state.

Latest version of the contract?  Does that mean Rick Perry renegotiated this deal as well in 2010?

In 2008 Hirschfeld's private equity investors and owners pulled $28.2 million from the firm in partner distributions.  Since money is fungible, did TEF's $500,000 go straight out as partner distributions?

Both Vought and Hirschfeld have deep pocket private equity owners.  Both sought public subsidy for their operations.  Neither wants to speak to their failures to provide the promised jobs or how they profited from TEF grants.

The Texas Legislature repeatedly allowed the Governor's office to persist in its lies and misrepresentations.  A hapless media couldn't find Perry's bald faced untruths during his Presidential run.  Let's hope an auditor offers more in accountability than the Legislature or the media.  Both have been sorely lacking.

Update 4-4-15:  The audit found Governor Rick Perry to be both hapless and unethical.   Vought Aircraft Industries never applied for their $35 million Texas Enterprise Fund grant. 

Brief Pause in TTU's Community Cat War

TTU administration allowed a pause in Hugh Cronin's cat war to search for the missing and wounded under Drane Hall.  This good news is tempered by the revelation that Tech wants to drastically reduce its feral cat colony, from eleven feeding stations to one.  Apparently, TTU is incapable of learning from other university's experience, even two in its own system.

TTU Assistant Vice President Hugh Cronin cruelly ruled by brute force, ably supported by Tech mouthpiece Chris Cook.  New TTU President Duane Nellis indicated by silence that he sided with these two liars over Tech's longtime cat caretakers. 

President Nellis, who sat on his hands for an unhinged Hugh Cronin, will have the final say.  He will also be responsible for the severity of TTU's troubles from a slow-motion invasion of unaltered cats from nearby neighborhoods and migrating students.  This is predictable. 

Leaders can't manage what they don't understand and Texas Tech clearly does not understand.  Cats will find their way to TTU's campus.  Does the University want them fixed and managed or fertile and foraging for food?  All signs point to the latter.  

TTU's Riveting Way to Conduct Animal Cruelty

Texas Tech University twice assured the public there were no community cats imprisoned under Drane Hall.  At least twice TTU administrators were proven wrong.  Last week's question was:

"Why would Texas Tech, repeatedly told about cats barricaded without food or water, install privacy shields so the public could not view cats trapped in inhumane conditions?"

There is no animal cruelty without evidence of animal cruelty, that is until someone removed a cover.  Late last week TTU officials were proven again wrong.  TTU police received a report of animal cruelty.

What did an unhinged Hugh Cronin, Assistant Vice President of Facilities Management, do in response?  Rather than communicate and collaborate, as initially promised, Hugh ramped up the hardware, riveting in sheet metal and the cover grate. 

Tech should finally fulfill what Hugh Cronin was incapable of doing, honor its initial commitment to work with local animal service organizations on the safe and humane reduction of its longtime feral cat colony.  Hugh Cronin's gone.  His cat war should end.

Reporting TTU's Intended and Unintended Consequences

Texas Tech's "Do the Right Thing" program focused on ethics.  That means reporting concerns of animal cruelty, broken promises and outright lies by TTU administrators.   Such a report is below:

Ethics point ttu report 8 27-13 from jepysdad

Those wishing to file reports based on their experiences and evidence can do so by clicking here.

Update:  Rather than install one way excluder doors that allow cats out but not back in, TTU's facilities management installed heavy duty anchors on the sheet metal barricades.  It's like fortifying cockpit doors with the pilots permanently trapped inside.  I'll post pictures soon.

Update 9-5-13:  Texas Tech gave the following response via Ethics Point:
"Sep 02, 2013, 1:54 PM  Comment: Thank you for using the Ethics Point reporting system and for your additional information. We are currently looking into this matter."  I then "requested "a formal reply to concerns stated in this report."

San Angelo's Various Shhhh's!

San Angelo's already explosive growth may accelerate under a new Chamber marketing campaign included in the September 3rd City Council packet.  The City of San Angelo's website added two bid opportunities recently that reflect this growth.

The first juxtaposes our water resources vs. skyrocketing demand for water in the region.  The City requested bids for water treatment chemicals intent on having suppliers prove their product's capabilities.  This bid was cancelled due to low water levels in the Concho River.   It takes 3.5 million gallons to frack a well and 10,000 wells are expected to be drilled in our area over a decade or more.  Shhhhh!

The next item is curious in that the city seeks bids for temporary employee services for kitchen aides, office assistants and maintenance workers.  Bidders are to supply the city with a contracted labor rate per hour.

The City had 32 full-time vacancies and 29 part-time positions unfilled in July.  That month 20 employees voluntarily left city employment, with 16 leaving for higher paying jobs.  Human Resource representatives told Council turnover was the highest in five years.

The City stated in its temp bid:

Quantity - The exact requirements of all positions to be purchased under this bid cannot be determined at this time.

The City is not liable for Social Security contribution.  Additionally, the vendor is solely responsible for Unemployment Compensation.  

The vendor shall waive any “Temp to Hire” conversion fees charged in the event a temporary employee is selected by the City into fulltime trough the hiring process. 

The bid document also specified the type of pre-employment screening required and stipulated the vendor would provide a temp within 24 hours of a purchase order request.  The vendor is liable for any work provided without a P.O.   It will be interesting to see the hourly rates temp agencies charge the city.

It would behoove this council, concerned about city workers making a living wage, to inquire how much the agency will pay the actual worker.  It will also be informative to compare the city's pay scale for the three positions to vendor bids.

The City has major issues attracting and keeping employees.  That goes from the top, where an exodus occurred after Harold's reign ended, to the bottom, where the city seeks temps to fill holes and/or bypass providing benefits.  Shhhh!

Benefit savings can be seen in the health insurance budget for the coming year.  The only thing that could explain such a huge drop is the city is covering far fewer employees.  Is this a side effect of using temporary workers or the unstated aim?

This reminds me of the Chamber telling public officials that new companies for our area were told to bring their employees with them.  The Chamber did not want their higher pay rates impacting local companies.  Shhhh!

San Angelo leads.  The question is for whom?

MedHab's Official Product Launch

Today is the official launch date of MedHab LLC's first product, RPM2.  RPM2 is the retail version of StepRite, MedHab's hoped for medical device.  MedHab's summer 2012 production prediction slipped in at least two ways, time and scope.  The FDA is yet to approve StepRite.  Also, Medicare hasn't allowed for payment for StepRite for post surgical patients undergoing physical therapy.  MedHab made a strategic decision to launch the retail version.  RPM2 is now available on a pre-order basis.   

Update 9-4-13:  BioNewsTexas reported MedHab has been selling product for ten months now.  "Fort Worth-based startup RPM2 has launched its website and is offering its new athletic training product, which has been on the market to coaches and trainers for 10 months, available for retail sale to the public."