Will Wilde: Rainmaker

The City of San Angelo produced a graph (cartoon) showing the impact of its business-type activities in its latest Comprehensive Annual Financial Report.

Principal Officer Will Wilde, Director of Water Utilities, is the city's biggest rainmaker.  Between Water and Sewer it looks like the City produced $12 million in profits on nearly $40 million in revenue.  A 30% profit margin, that's PEU sweet.

Update 12-6-12:  Despite making $8 million off water alone last year, the City has a $4.8 million fund that could be used for rebates.  Council targets 90 days of water revenue, roughly $4.9 million.  That should be closer to $6 million a quarter from the graph above.  While the rainmaker retired, questions remain as to how the bounty has been used.  It's not much a stretch for citizens concerned about Will Wilde's ethical gaffes to wonder if he acted like Yantis Green with the public's money.

City's Comprehensive Annual Financial Report

Item #9 on City Council's November 20 agenda is approval of the City's financial audit by CFO Michael Dane and accounting firm Armstrong Backus.  I found a few items curious from the year ended September 20, 2011.

First, health insurance provided over $1 million in cash from operating activities.  Over $250,000 was invested, leaving a nearly $750,000 increase in cash, bringing the total to $967,000.  The statement does not show whether the $250,000 investment is obligated to employee/retiree health insurance or if it can be used anywhere.

This extra million came from the city imposing draconian premium increases on employee and retiree dependents.  Their health insurance premiums rose from 36 to 58%.  City Council chose not to apply any ERRP funds to break the hardship.  As a result nearly 200 people dropped city sponsored health insurance. 

Ironically, this Council meeting has a 2012-2013 budget amendment for $343,000 in ERRP funds, buried in item #15.  Might it take three years for early retirees to benefit from federal money intended to make health coverage more affordable?.

Also odd about the audit report, the city claims it is 100% responsible for health insurance risk.  The city has reinsurance that shifts a portion of that risk to an insurance company.  Also employees and retirees share in both risk and premiums.  The city paid 70% and employees 30% of premiums during the audited fiscal year.  

A review of the document reminded me of the City's stepped up efforts to hide over $1.1 million in 2011-2012 health insurance savings    Nearly a year after Council approved an exclusive provider arrangement with Aetna using Community Medical Center, they executed a last minute budget amendment which purported to have equal offset.

I'll have to wait another year for Armstrong Backus to report what actually happened. 

No Answers Yet on Furniture Fiasco Investigation

The Standard Times ran a piece titled "City Council Sitting on Furniture Details."  However, story content pointed more toward paid city leaders not sharing the results of any investigation. 

Despite getting hundreds of pages of documentation on the unapproved purchase, the paper was not able to identify who signed the purchase order or put together a timeline showing:

1.  The beginning of communications with West
2.  When the purchase order was executed and who approved it
3.  When the furniture was delivered and installed
4.  When West first requested payment
5.  When the item was placed on City Council agenda for approval and by whom

This information may come, however there's another odd thing about the piece.  The Standard Times produced a story on the furniture fiasco without the name Wilde in it.  Water Chief Will Wilde stated in the October Council meeting, "We were given the furniture."  Any investigation needs to ask Will, by whom?  

The two names mentioned in the piece are  Assistant Water Director Tom Kerr and Assistant City Manager Elizabeth Grindstaff.  At the October Council meeting Grindstaff clearly stated the purchase occurred outside her bailiwick.

I wonder how many violations of city policy occurred in this one purchase? New City Manager Daniel Valenzuela deserves some latitude in this matter, as everything but the final approval occurred before his shift.  That said, enough time has run (nearly a month) for an investigation to be finished.  Time is not any investigator's friend.

The story stated:

City Manager Daniel Valenzuela said he might talk with Human Resources about what to do regarding the furniture purchase.

"I have a request I've submitted to HR," Valenzuela told me. "It's still an internal matter. It's something that is being addressed."

Public trust eroded with the unauthorized purchase.  Sharing the results and any corrective action will help regain that trust.  The only problem is another investigation calls regarding Will Wilde.  It involves Wilde's son Blake, fired as an engineer for the City, yet hired as a subcontractor on the Hickory Water project.

Might there be a drought of ethics in the City Water Department?  Rapid, thorough and transparent investigations are badly needed.  That's Valenzuela's responsibility.  It's a bad hand, but it's his to play.

Councilman Morrison's Hickory Stand

San Angelo City Councilman Dwain Morrison stood during Tuesday's council meeting and asked Carollo Engineering's Hutch Musallum to give him a call.  Morrison wanted to discuss a potential conflict of interest with a Hickory Water project employee.

The Carollo employee is actually subcontractor Wilde Engineering, started by Blake Wilde.  Blake is the son of San Angelo's Water Utilities Chief Will Wilde.

Blake Wilde started Wilde Engineering in June 2012.

Prior to forming an engineering firm, Blake Wilde worked for the City of San Angelo.

Anthony Wilson, Public Information Officer, shared Blake's employment history (after an information request):

Blake Wilde was hired Oct. 8, 2007, and was terminated for cause on June 8, 2012. He was earning an annual salary of $65,100 at that time. He is not eligible for rehire.

Surely, Blake's father had some idea as to why his son had been fired from the city.  It's not clear if Carollo's Hutch Mussallam knew of Blake's termination for cause before subcontracting with Wilde Engineering.

It seems odd for a fired employee to suddenly become a "go to" project inspector for getting Hickory pipe laying back on track by working 80 hours a week (at what hourly rate?).  

I submitted other questions, which are yet to be answered.  They are:

1.  When did Blake Wilde's Wilde Engineering become a subcontractor on the Hickory Pipeline project?
2.  Please send me Wilde Engineering's proposal with scope of work and conflict of interest documentation for doing business with the City
3.  Please send me Will Wilde's conflict of interest filing with the city regarding Wilde Engineering's subcontractor work for the project Will oversees.
4.  Please share how much Wilde Engineering has been paid between June and now for subcontractor work on the Hickory project.

I'll post City responses after they're received.

Morrison's stand happened after City Council pressed Carolla's Mussallam on the project schedule.

I expected a similar grilling from Mayor New and Councilman Hirschfeld on Water Czar Chief Will Wilde's unilateral expenditure of $100,000 on furniture, but that never happened.

It remains to be seen how Will and Blake complied with conflict of interest requirements.

The document states:

Q:  What is considered a “substantial interest” in a business entity (such that it would amount to a potential conflict of interest)?

A:  Close family member with any of the above interests: If a close relative of the local official has any of the above types of interest in a business entity. A local official is considered to have the same interest in a business entity that his or her close relatives have in that business entity. In this context, close relatives of an official would include persons who are related to the official within the first degree by consanguinity (blood) or affinity (marriage).18 Such relatives would include an official’s father, father-in-law, mother, mother-in-law, daughter, daughter-in-law, son, son-in-law and the spouse of the official.

There are many questions that need answering.  Like the Furniture Fiasco, the public deserves transparency.

Update 11-16-12:  Draft minutes of the November 6th City Council meeting state:  "Councilmember Morrison commented on a potential conflict of interest and asked staff to review the issue."   Did he really?  I only heard Morrison ask Hutch Musallum to give him a call in regard to a possible conflict of interest.  I'll have to rehear the tape. 

City Council Minutes Hide Extent of Furniture Fiasco

San Angelo City Council minutes soft pedaled the purchase and installation of $100,000 in furniture for the Water Department, prior to required Council approval.

Councilmember Morrison expressed his concerns of the additional expenditure required for office furniture at City Hall and recalled the meeting when staff presented the item.

Clarification:  The item was $200,000 in furniture and council members were assured this would be the last change order on the renovation project.

Assistant City Manager/Chief Financial Officer Michael Dane explained City Council approved the purchase for general fund departments and had understood the other departments with their own funding sources would purchase furniture for their offices within City Hall and Community Development Departments.

Clarification:  Where is "this understanding" reflected in any city documents or city council presentations on the project?  Also, Dane stated the $100,000 request came across his desk and he flagged it for council approval.  Yet, that didn't happen.  Not only did Interim City Manager Dane not bring it, somebody executed the purchase order without required approval.  

General discussion was held and concerns expressed regarding the approval of the furniture purchase, the City’s purchasing policy, a department director’s authority to make purchases over $50K when such actions are required by policy to be reviewed and approved by City Council, and directive to staff to implement preventative measures to ensure the proper procedures are followed.

Concern:  There was no approval.  Someone acted unilaterally.  Why can't the minutes state a city employee executed a $100,000 purchase and installation of furniture without authorization?  Why do the minutes talk about preventive measures, when they should ask for an investigation, with possible disciplinary action?

Councilmember Silvas suggested former Assistant City Manager Elizabeth Grindstaff clarify the furniture budget approved of $200K. Ms. Grindstaff remarked the scope grew out of the balance funds remaining from the project budget and another staff member was working with departments on the office furniture purchase.

Clarification:  Grindstaff clearly stated the $100,000 purchase occurred outside her responsibilities as project manager.  Who is the staff member that worked with the Water Department to execute the unauthorized purchase?  Not one City Council person asked for their identity:

Motion, to approve the purchase, with the understanding the City Manager will follow up on the purchase and related procedure, was made by Councilmember Adams and seconded by Councilmember Hirschfeld.

Further concerns were expressed noting dissatisfaction with the process, the integrity issues among staff, the obligation to pay the vendor, and the responsibility of such action to the voters.

Expectation:  Given the wording above, one might expect a presentation on the investigation, its findings and any disciplinary action at the next City Council Meeting.  It's not on the agenda for November 6, 2012.. 

The first mention of the infraction came as Mayor imposed a measure of "justice."

Mayor directed the City Manager to find savings within the Water Utilities’s budget to make up for the unauthorized expenditure. Council concurred.

A vote was taken on the motion on the floor. AYE: New, Alexander, Silvas, Adams, Hirschfeld, and Farmer. NAY: Morrison. Motion carried 6-1.

"Just us" done.  Issued buried.

May's 21st Day: Goodbye Rallo

Angelo State University will hold a going away reception for President Joe Rallo Monday morning.  November 5th is the twenty first day since Dr. Brian May was named the sole finalist by the Texas Tech Board of Regents.  Texas law requires a final candidate be named prior to the vote.

Texas Tech University's website stated:

The governing body of the institution must give public notice of the name or names of the finalists being considered for the position at least 21 days before the date of the meeting at which final action or vote is to be taken on the employment of the person.

Monday should be a busy day with a goodbye reception, an installation and an unpublicized  TTU Board of Regents meeting to take the final action or vote on Dr. Brian May.

Update 11-7-12:  The Board of Regents named May President today.  I'll look for minutes for 11-7-12 on Texas Tech's website.  It may take awhile for them to be posted (if ever).  

Update 11-11-12:  Texas Tech Board of Regents used teleconferencing to hold a meeting on September 11.   In that session the Board approved Texas Tech TV as negotiated by Learfield Sports.  Fox Sports Television is the major network for Texas Tech TV.  ASU President Brian May could have been appointed by teleconference, like the TV deal. 

Update 2-8-13:  The Committee recommended May to the full board for vote in the November 7 meeting.  

Missing Ross McSwain

West Texas lost another treasure with the passing of Ross McSwain, noted columnist and author.  Ross loved the written word, so much so, he taught noncredit writing classes at Angelo State University and served as President of the San Angelo Writer's Club.

Between teaching, the newspaper and writer's club, Ross mentored many writers.  I met Ross in 2005 when I took his Folklore class through ASU. 

Also, I had the honor and privilege of serving under Ross, as Vice President of Programs for the Writer's club.  From our interactions, I offer a few of Ross' written words. 

Ross had a unique way of closing a number of his e-mails:

See you tomorrow night, provided the creek don't rise or we get a two foot snowfall.  Regards, Ross McSwain

God willing and the dam don't break, I'll be there.

On technology:

I got a call from a guy this evening wanting to come and tell us about his online writers group, but we got cut off and he has not called me back.  I hope he doesn't think I hung up on him, because I was in the middle of a sentence about the club.  I think he was using a cell phone.  I detest those damn things - another good subject matter to discuss.  The pros and cons of using telecommunications equipment.  See you tomorrow evening if everything goes well.  Ross

On outsourcing news writing to India (a CNN story):

I hate to see such garbage as this start, or be publicized.  Others will be doing it to save money and scripps is among the worst for having bean counters.  I hate to think what the future will be with big business running the government and still making money by hiring the cheapest.  As you know we sent men to the moon on an outfit built by the lowest bidder.  Cheers, Ross

On nominations for Writer's Club President in an October 23, 2008 e-mail:

I have not heard back from (possible candidate).  They have a farm place in Comanche County and may be over there.  Do you have any other ideas for the presidency (besides McCain or Obama)?  Ross

Ross is survived by his wife Jean.  In October 2007 Romance writer Ken Casper spoke to the club.  Ross had a conflict and couldn't be there.

I have a favor to ask.  I have to be out of town that day on a trip with my wife and I don't expect to be back in time for the meeting.  Would you please chair for me and give my apologies to Ken for not being there?  I would appreciate it very much.  My bride and I don't get to travel much together, so I am taking this opportunity to go with her to Brownwood for an all-day event.  Thanks, Ross McSwain

Ross expertly wrote about Texas Politics and Greed.  In my estimation it's a particularly bad time to lose someone with investigative reporting skills.

On Saturday, August 22, 2009 Ross e-mailed with the sad news of Elmer Kelton's death.   I returned the favor March 14, 2011, informing Ross of the passing of Dr. Preston Darby.  Nearly a year to the day later, Dr. Ralph Chase died on March 16, 2012.  Now we lose Ross McSwain.

San Angelo's treasures live in our memories, in the stories we tell.  Ross would call that folklore.  He'd want us to record stories, so we don't lose history.

God bless Ross McSwain, his family and loved ones.  Another great man is gone.

Update 11-8-12:  Rick Smith ran a column with Ross' thoughts for the ages.