Red Arroyo Water Project: Clear as Mud

Two father son teams come to mind when water is mentioned in our area, Stephen Brown and Chuck Brown with the Upper Colorado River Authority and former San Angelo Water Chief Will Wilde and his son Blake.  The Brown team appeared before City Council last week to propose a water project involving the Red Arroyo.  UCRA Director Chuck Brown led the presentation.

Very early on we realized the Red Arroyo is a significant water producer.  Through Tarleton's modeling efforts and our on the ground monitoring stations, we realized that pretty much every time we had an inch rain in San Angelo the Red Arroyo produced about 500 acre feet of water. So, theoretically in our average rainfall year, which would be 20 inches of rain, the Red Arroyo could produce upwards of 10,000 acre feet of water, which is annually 2/3rd's of the City of San Angelo's municipal water usage.

I've only lived here since 1994 but I've never seen twenty one-inch rains in one of those twenty years. I instantly was curious as to how Red Arroyo water flows varied from the average.  What might they be in wet years vs. dry?

Brown and the UCRA recommended building a stormwater storage basin near the bottom of the Red Arroyo watershed.  Their slide stated:

Approximately 11,550 acre-feet will be captured by the basin in an average rainfall year. 

Yet the city only has water rights to 5,000 acre feet in any one year.  UCRA Consultant Stephen Brown said that 5,000 acre feet for the City is "guaranteed almost every year."  This assertion quickly came under challenge.

A respected consultant modeled the City's take from the Red Arroyo using San Angelo's sixty year rainfall record and the 5,000 acre feet restriction.  His projections showed the City's take varying from near zero to 4,900 acre feet in any given year.

Chuck said the project would cost roughly $20 million.  Yet his "Opinion of Probable Cost" slide mentioned a much higher figure (in the notes section):

The preliminary cost estimate to construct a storm water basin to provide a storage volume of 2860 acre-feet and the infrastructure for transferring the captured water to the treatment plant is $76.9 million. The cost estimate assumes that the high powered and low powered electrical lines running across the site will be relocated as part of the construction. The single largest contributing factor to the cost is the excavation cost at 60% of the total estimated cost. 

After hearing all the presentations, the situation is as clear as the Red Arroyo after a heavy rain.  City Council faces two studies on water, a deeper geotechnical/engineering study on the Red Arroyo project and a reclaimed water use study.

Reclaimed water brings to mind the other father-son team, Will and Blake Wilde.  Former Water Chief Will Wilde's hobby cotton farm benefits from reclaimed water, which is solely purposed for irrigation.  Wilde arranged the deal and successfully defended it in dry years.  Might the Red Arroyo save reclaimed water for hobby cotton farmers?  Time and rain will tell.

Correction:  I erred in giving Stephen Brown the moniker for his son Chuck in the original version of this piece.  My apology.

City Council Background Packets Not Available

Local citizens used to pouring over the voluminous City Council agenda packets have more free time on their hands as these documents are not available on the City's new website or SlideShare, their former home.   These documents used to be available the Friday before the Tuesday City Council meeting.

The background packet frequently has information of interest on city topics I follow.  I hope Public Information returns to its former practice.

Update:  The 457 page agenda packet became available the morning of the meeting for download at the City's website.  That's an absurd amount of material for interested citizens to read in waning hours before the meeting.

American Eagle to Leave San Angelo?

I flew in the seat next to an American Eagle pilot months ago.  He informed me that Eagle shut down its LAX operation and that top brass was considering closing Miami and DFW.  He said "it's all about the numbers."

As a longtime Eagle pilot he said he still made a decent salary, but the company was making it harder to do so.  He stated he needed to stay with his aircraft which the company moved far away from his home in East Texas.  The pilot lamented he would not be able to support his family on the low wages being paid new pilots and may need to make a different career choice. 

I thought this conversation odd in light of city leaders' efforts to recruit another regional airline to serve San Angelo and the number of full planes I'd flown in the last several years.

Yet, his story is borne out in a GAO study on regional airline pilot low pay.  Some regional carriers are choosing to shutter capacity rather than raise wage rates.  American Eagle is one of them. 

The Star Telegram recently reported:

American Eagle, the regional subsidiary of Fort Worth-based American Airlines Group, may get smaller after a pilots union rejected a proposed 10-year contract agreement.

American will look for other regional carriers to fly its new aircraft on short-haul flights after the leaders of Eagle’s pilots union decided late Wednesday not to send a proposed contract to members for a vote, a top executive said Thursday.

In a letter sent to all 14,000 Eagle employees, the regional carrier’s president, Pedro Fabregas, said American has “no choice but to begin looking for another regional carrier.”

“I have no reason to believe American will offer us new large regional jet flying after these unsuccessful negotiations,” Fabregas wrote.

Tensions are running high between American Eagle’s management and the Air Line Pilots Association. 

The union said American has threatened to shrink and eventually liquidate Eagle, which is being renamed Envoy this spring as American expands its use of outside carriers to fly routes under the Eagle brand. As a result, the union said, it will help its pilots find other careers at a time when the industry has a shortage of qualified pilots.

San Angelo was mentioned in the piece as a feeder city:

With its hub network, analysts say, American needs the passengers whom Eagle feeds into its hubs to fill up the larger planes it’s buying for transcontinental and international flights. Analysts also question how fast American can reach a deal with other regional carriers that are also dealing with pilot shortages.

“I don’t know how seriously intended this is, nor do I know how seriously American has considered how quickly it could re-create the lift it needs for their hubs,” Mann said.

But aviation consultant Mike Boyd disagrees that American would be hurt if Eagle is downsized.

“It’s an entity that has declining value in the marketplace, and with the pilot shortage, they should have shut it down in bankruptcy,” Boyd said.

In an analysis of Dallas/Fort Worth Airport, Boyd said Eagle brings in about 4 percent of the passengers. If Eagle were liquidated, the passenger traffic would likely be picked up from other markets, since American is running relatively full flights at its largest hub.

“The feed you’re getting from San Angelo, if it went away, it’s not going to kill the airline,” Boyd said.

We may be a pawn in the regional airline war.

During labor negotiations, it’s difficult to know whether threats by the company or the union are going to come true. 

Time will tell.

Update 3-7-14:  Dallas Morning News reported the pilot union will vote on the contract after all.

Update 7-19-15:   American is storing jets it intends to sell at SJT.  Airport Advisory Board minutes from 5-7-14 show American will lay off 45% of their pilots by selling these aircraft, i.e. reducing services.

ead more here: http://www.star-telegram.com/2014/02/13/5568251/american-will-look-to-other-regional.html#storylink=cpy

MedHab's Recent Olympic Press

Chelsea McCullough, Executive Director of Texans for Economic Progress, authored two pieces on MedHab's signature product, a recreational device known as RPM2.  On January 23rd McCullough ran a post on Texans for Economic Progress' Blog.  Here's the intro:

TEP was fortunate to meet RPM2 Co-Founder and CEO, Johnny Ross at our recent MedTech event with Tech Fort Worth. This technology combines the latest advances in wearables and mobile applications to let athletes know exactly when, where and how they step. Amazing innovation and made possible by our robust broadband infrastructure. This is tech policy at work and we’re happy they’re making it all happen here in the great State of Texas. Please enjoy this blog post from RPM2 that highlights their latest innovation.

The second piece conjured up visions of Olympians using high tech training devices at the Sochi Winter Games.   The Push reported:

Whether you were casually watching the Sochi Olympics from your living room sofa or live streaming every second on a mobile device, I’m willing to bet there’s one aspect of the winter games you completely overlooked — wearable tech. 

The first two products were actually used at the Winter Olympics by snowboarders and ice skaters.  McCullough squeezed in MedHab, before returning to another device used by an Olympic mogul skier.  She wrote the following about MedHab:

Another wearable manufacturer focused on keeping athletes healthy is the Dallas-based company, MedHab. MedHab is responsible for a shoe insert called RPM2 (Remote Performance Measurement/Monitoring), that provides detailed, real-time analytics for athletes who put a lot of strain on their feet. 

The article closed with needing ubiquitous access to the internet so these devices could provide real time feedback.

As our phones, cars, home appliances, and now shoes and workout clothes get “smarter,” the pressure is mounting to ensure that modern policies are in place to provide an infrastructure that keeps our devices well-connected. After all, our future Olympians depend on it.

Wow, that statement is packed full of public subsidy, at least that's my take.  Stay tuned for more from Texans for Economic Prosperity and MedHab.

COSADC Hires Another Planning Consultant

The City of San Angelo Development Corporation approved the hiring of a consultant, Alicia Cook LLC, at their recent meeting.  Economic Development Director Roland Pena recommended using a facilitator for the four hour planning meeting scheduled for the morning of March 5.  The cost would be $1,000 plus travel and hotel.  Pena has worked with Alicia Cook in the past. 

Board members expressed a desire to talk about the Business Retention Expansion Program (BREP) and trying to get money for local businesses to expand.  I'd hoped to hear discussion on Texas Pacifico, in light of City Council's refusal of the Development Corp's recommendation of nearly $250,000 for moving their corporate headquarters and providing 35 jobs.  That didn't happen in this meeting.  We'll see if Alicia Cook facilitates such a conversation. 
I find the Development Corporation's concern about using local vendors and helping local firms interesting as they approved hiring an outside facilitator.  How many local facilitators had the opportunity to share their skills, background or abilities? 

As for Alicia Cook's role Pena said her deliverable would be top strategic priorities for the Development Corporation for the coming fiscal year.  Pena said the current strategic plan will be used in planning.  It consists of three documents:

1.  Market Assessment
2.  Target Industry Analysis
3.  Action Strategy and Final Recommendations

Since then City Council hired a Lake Nasworthy Master Planner and Downtown Master Developer.  They presented their plans to Council last fall.

4.  Lake Nasworthy Master Use Plan
5.  Downtown Master Development Plan

Add the plans authored and facilitated by Lauren Shrum of Texas Outdoors Consulting:

6.  Parks, Recreation and Open Space Master Plan
7.  Twin Buttes Recreation Master Plan 

The Development Corp may need to consider other plans including:

8.  San Angelo Cultural District Planning Study
9.  City of San Angelo Capital Improvement Plan (underway)
10.  West Texas Water Partnership

It may want to invite representatives from partner organizations:

11.  San Angelo Chamber of Commerce
12.  Downtown San Angelo
13.  Concho Valley Angel Network

That's alot to consider prioritizing for the coming year.  I look forward to seeing the process Roland Pena and Alicia Cook have devised via SATV's airing the meeting. 

Grand Court Residences' $200,000 Loan from City

City Council approved an endorsement of Grand Court Residences, a low income housing project across from Sam's Club on Sherwood Way.  City staff said at the time that Council was merely showing its support, nothing else.  That changed with last week's Development Corporation meeting, which approved a $200,000 loan at 3% interest to the project's developers.

How many council members were aware of this next step when they made their vote?  It not only seems pertinent for council, the public would benefit from city leaders painting a bigger picture.

MedHab's Ross Coaches Enterpreneurs

MedHab founder Johnny Ross shared his entrepreneurial wisdom with Angelo State University students in early November.  RAM TV aired his talk, which I caught most of.  He advised students:

• Make sure to have integrity
• Don't miss your milestones
• Under-promise and over-deliver to investors
• Don't be afraid to ask
• You set the standard
• Remember those who helped you
• Make sure you can speak to the finances
• Keep your balance sheet clean
• Don't give away your equity too quickly

Ross stated he'd raised $4 million from investors.  He walked through his public capital raises.  The first raise was $250,000 which cost Ross 7% of the company.  Next he raised $1.8 million with investors getting just over 20% of MedHab.  The third raise was $750,000 and investors received 5%.  That totals $2.8 million for roughly a third of the company.

Ross didn't detail the remaining $1.2 million of "investment."  He did describe needing $600,000 for working capital to buy Chinese components, but did not identify its source.

He gave great credit to Angelo State University as it served as MedHab's product development department.  I never heard mention of the City of San Angelo's $3.6 million economic development package for MedHab.  Ross did sing the praises of Tech Forth Worth and paying $1,250 a quarter for rent.  The City of San Angelo did better providing rent for $1 a year, which he failed to note.

Oddly, Ross over-promised and under-delivered to the City on jobs and their timing.  Interested City Council members wanted an update on MedHab's plans.  They got a verbal sidestep, which paled in comparison to what Ross did for ASU students.

FDA approval is an expected 14 months away, according to Ross' talk, putting it at late 2014, early 2015.  That's a big change from 2012.  Two years late sounds like another over-promise and under-deliver.  No wonder Ross won't show his face at City Council.