Enron Accounting Revisits DOT

On February 5 of this year the time of the groundbreaking for the Riverwatch Parkway Extension Project, WAGT TV26, WJBF Channel 6, and the Columbia County News-Times all incorrectly reported that the $34 million project was being funded wholly out of TIA-2010 funds, also known as TSPLOST.

The TIA funds for the project came out of the 75% funding level list approved by voters within the Constrained Projects List. There is a project cost estimate found in the details. That paints a truthful picture. Nearly $11 million for the project is reserved out of DOT highway and fuel taxes and there is a $3.3 million cost overrun already, leaving $20 million in TSPLOST funding.

You know there is something screwy when that many news outlets get it wrong and are all using the same number.

Well it didn’t take long to find the source. It was DOT, who came into the TSPLOST debate tarnished and smarting from Governor Sonny Perdue accusing them of “Enron Accounting,” but seems back to their bad habits by putting out a webpage showing TIA spending that looks to be TIA, alright – Totally In-Accurate. A Lincoln County project is only $1 million of TIA funding, but DOT listed it as $4 million. Wrightsboro Road in Augusta is shown as $19 million TIA funding, but it is only $2 million.

If DOT wants to reestablish its credibility after its flirtation with Enron Accounting they sure have a funny way of showing it.

How they are going to fund the huge cost increases with revenues collected so woefully low would make an Enron Accountant strain.

Victimized or Triumphant in a Gray State

Yes, I am A. Gray but we are all in a gray nation now. It is a nation of 75 million aging Baby Boomers and the massive pressures the simple math of that portends. It is a nation where the polydamnticians and manipulators want to hide the clear and simple truths found in the Bible and the Constitution of the United States in a gray fog. We find the rule of law being covered in a gray burial shroud by the very people sworn to uphold it. Swirls of gray dust billow out from our imploding institutions to cover us in what would be shame if we even pretend to be a civilized people.

 

 

These words were crafted from a perch 20 feet up an east central Georgia pine tree overlooking a sparkling lake. One vigilant squirrel had just alerted the entire squirrel network all of whom chattered ‘HAWK!’ In unison, lest even one fall victim. The squirrel feeding under the white oak below scurried next to a hollow log. It was a good thing, too for the hawk eye had picked him as prey. The sharp talons grazed his back just as that tree dweller popped into safety in a knothole. So it is with us. We have waited perhaps too long to escape danger. THIS is agraynation but a bright future beckons those who join in a network vigilant to the dangers lurking in the gray state we are in. Here in agraynation, we are going to wrest ourselves from being prey, laughing all the way at the polydamnticians, gold dome cowboys, exposed manipulators, crazy schemers, cozy crooks, devilish democrats, and especially the Pharisee Republicans who have gotten control of Georgia.

Hushing the Racket from Dr. Phil (Gingrey) and his D.I.C.K. Quartet

Its springtime in Georgia, but this spring there are a lot of things blooming in the red state of Georgia besides the redbud trees and like this redbud tree the true colors are beginning to show a tinge of blue for good reasons.

The state might be in the heart of the bible belt, but its movers, shakers, and polydamnticians have most of us, the citizens, remembering that the place started out as a penal colony of thieves, con artists, petty pirates, embezzlers, and more than an few whores. Our holy rollers in banking managed to make Georgia #1 or #2 in Mortgage Fraud for 5 years running from 2001 to 2005 on the way to the national championship of bank failures 7 years later. 11000 real estate appraisers warned them. (Video cites a conservative 2200.)You’d think somebody would be embarrassed.

Undaunted by their humungous failures and emboldened by chilling thoughts of losing their second homes in Highlands, the financiers turned to the mother’s milk of government bailouts and protection rackets. While they were at it, they dressed all the rest of us in milk-bone pajamas in this dog-eat-dog world they created. You reckon they thought we wouldn’t notice?

Over under that gold dome in Atlanta, their puppet chairmen of the House and Senate Banking Committees – both of whom headed failed banks – kept those pesky credit unions owned by the people at bay. We can be sure they were in church on Sunday – that is a Georgia law for politicians after all. Now, one of their pawns, Donna Sheldon, is running for the United States Congress in the 10th District after sitting on her duff on the Georgia House Banking Committee or actively countering the reformer, Senator Jesse Stone of Waynesboro. We’ll talk over more about her later.

Over yonder is US Representative Paul Broun, who vacated the seat Sheldon is drooling over, whose family owned a failed bank. He is looking to replace Saxby Chambliss a guy who so brilliantly defined $trillion bank derivatives as mere phone calls after his committee was charged with reforming banking. Saxby had a motto: “Wall Street Money for Free, be on the First Tee by Three!”

Yes we can bank on our Republican leaders in this state for rollicking fun and entertainment at our expense. Let me introduce you to Dr. Phil (Gingrey) and the Deal, Isakson, Chambliss and Kingston quartet. Phil and the DICK gang voted for such fiscally responsible triumphs as Medicare D, No Child Left Behind (before Phil), highway and farm bills. Before Phil came, DICK voted to allow banks to gamble with depositor’s money with no reserves and to book those bad gambling debts to be paid back first before depositors. Old Milhous Nixon himself wasn’t this tricky.

Now you think it is ugly to call these bozos DICK, but they got the ball rolling when Deal and Isakson became a tag team 4 years ago. Chambliss is escaping the boot he was about to get, but that old pork barrel spender Kingston is out playing the churches in an old woodie like a 2014 model Pharisee.

For us a frugal folk there isn’t much deciding to do. Let’s pack Dr. Phil and the DICK quartet off to a doublewide in Ludowici to play the pornography derivatives market and send the capable David Perdue and Karen Handel into the US Senate runoff. Do it for yourselves and the kids.

Please, don’t forget a lifelong conservative Republican Protestant who doesn’t really want you to force him into a Chilly November date with a Nunn.

A Tax Recovery Yarn

How a multidisciplinary review of an already-negotiated sales and use tax exemption package, including analysis of equipment purchase orders and contracts, produced $millions in additional savings.

This effort required study of the technical data and vendor operating manuals, knowledge of sales tax exemptions and application in a “direct-use” state, understanding of how tax codes were input to produce tax accrual reports, and taking the initiative to appeal that which had already been established.

Empathy Coupled With Introspection Powers Success and Salvation

Golden Ruler, Golden Rule & Golden Life

Aurelius Bust from Colorado.edu site

 

By Al Gray

Marcus Aurelius was Roman Emperor from 161 to 180 AD. “He was the last of the “Five Good Emperors”, and is also considered one of the most important Stoic philosophers.” This man was supremely well-educated by the best Greek and Roman tutors of his day. “Marcus Aurelius’ Stoic tome Meditations…. is still revered as a literary monument to a philosophy of service and duty, describing how to find and preserve equanimity in the midst of conflict by following nature as a source of guidance and inspiration.”

The Catholic Encyclopedia presents a mixed explanation of the life of this pagan ruler, yet includes this account.

During the war with the Quadi in 174 there took place the famous incident of the Thundering Legion which has been a cause of frequent controversy. The Roman army was surrounded by enemies with no chance of escape, when a storm burst. The rain poured down in refreshing showers on the Romans, while the enemy were scattered with lightning and hail. The parched and famishing Romans received the saving drops first on their faces and parched throats, and afterwards in their helmets and shields, to refresh their horses. Marcus obtained a glorious victory as a result of this extraordinary event, and his enemies were hopelessly overthrown.

That such an event did really happen is attested by both pagan and Christian writers. The former attribute the occurrence either to magic or to the prayers of the emperor … The Christian writers attributed the fact to the prayers of the Christians who were in the army and soon there grew up a legend to the effect that in consequence of this miracle the emperor put a stop to the persecution of the Christians…..

Marcus Aurelius was one of the best men of heathen antiquity. (T)he judicious Montesquieu says that….we cannot read the life of this emperor without a softening feeling of emotion. Niebuhr calls him the noblest character of his time, and M. Martha, the historian of the Roman moralists, says that in Marcus Aurelius “the philosophy of Heathendom grows less proud, draws nearer to a Christianity which it ignored or which it despised, and is ready to fling itself into the arms of the Unknown God.”

The Bible upholds a number of foreign rulers to have moral qualities, including some who worshiped the Lord at times. It does not preclude us from considering words of wisdom from other sources. In this sense Marcus authored many very fine, uplifting, inspiring, and wise quotes including this powerful key to success –

“Let it be your constant method to look into the design of people’s actions, and see what they would be at, as often as it is practicable; and to make this custom the more significant, practice it first upon yourself.”

Before expounding upon this concept, let’s consider our Bible Verse of the week as it appears Matthew 7, verse 12 of the King James Version.

12Therefore all things whatsoever ye would that men should do to you, do ye even so to them: for this is the law and the prophets.

These stunningly elegant words sum up the very essence of civil societies of all types, indeed of civilization itself. The concept is found in nearly all cultures for it sums up our fair expectations of how we want, expect, and demand others to treat us. Indeed, even in the most totalitarian of states there is reverence for this golden rule, for wholesale abandonment of it risks revolution. Some years ago this writer read of an elderly woman in China with a long term lease in the middle of exploding development, on account of whom a major office and retail complex was being delayed simply because the woman refused to move from her home. The story seemed odd, until one considers just how powerful the golden rule is.

“Do unto others” goes to the very heart of how we relate to each other as people living in harmony and peace. The concept is redundant in the Constitution of the United States and our precious Bill of Rights, with the Due Process and Equal Protection clauses of first the 5th and, later, the 14th Amendments having stood resolute in protection of property rights since the Constitution was ratified.

Recently there been appreciable erosion, not just in our most priceless rights, but the underlying moral code of the golden rule. We stand near the abyss and will certainly topple over if we don’t recover the commandment found in Matthew 7:12.

The golden rule was expanded upon by the words of the golden ruler Marcus Aurelius referenced above. The technique is one of supreme, sublime power. The greatest attorneys practice the first half. “Let it be your constant method to look into the design of people’s actions, and see what they would be at” In other words you get an advantage by placing ones’ self in another’s position, determining his motivations, and predicting his actions. Wise people of all professions, faiths, and organizations use this strategy to excel. Empathy is a powerful tool used to approach the second commandment of “Love thy neighbor as thy self.” It is also a way to lower resistance in an erstwhile adversary.

The second part of the Marcus Aurelius quote is the admonishment “to make this custom the more significant, practice it first upon yourself.” The first part is extremely difficult to master by most people and they simply refuse to make the effort. Their thoughts, desires and motivations are too powerful to temporarily shove aside to gain empathy for another, be it for advantage or be it out of Christian love. Adding the second requirement of introspection of one’s own thoughts, desires, and motivations is an unimaginable, unattainable, and nearly impossible practice to even folks skilled in applying the empathetic first instruction.

The power of the combined technique is stunning. When a person does both parts of this instruction set, it combines empathy with introspection. You not only see the world through the eyes of others, but you analyze your own situation through theirs. It makes your arguments compelling, even overwhelming, for you not only are predictive of their words and deeds, you are predicting how they will address your own! If there is faulty logic, bias, dislike, hatred, or some other negative force in your position, you can objectively identify it and eliminate it before making a crucial error or misjudgment. If the other has the superior argument or position, one can adapt to it or adopt it before his position is established.

This is a path to peace. Wouldn’t it be great if world leaders would practice this? Most wars would be avoided!

If there is one technique that marries a holy commandment to friendships, continuous harmony, and even personal advantage it has to be this one. It is training in this life for eternity. It is of overwhelming power independent of faith.

Marcus Aurelius was a pagan, yet even a pagan emperor knew the magic of the golden rule. The words of Matthew 7:12 ring through the ages in law, as the verse stated, but this golden ruler recommended practicing a more stringent, demanding, and disciplined version of it as one pursues a golden life in every sense of those words.

Can you live the commandment of the golden rule?

Can you take it to a more demanding, higher level of empathy and tempered introspection?

The rewards on earth and in heaven are worth trying. You don’t have to be an emperor or prophet to gain your reward.

You just have to overcome yourself.

-AG

Originally posted at City Stink. net

 

Unraveling Rick Allen Before His Time

By: The Arrowflinger

This is your Many Arrows Moment for Tuesday, June 18, 2013

If last Friday Morning, between 7:00 and 8:30 AM, US Congressional District 12 candidate Rick Allen didn’t feel like a mouse between two cats, he should have.

Rick was on the Talk of the Town Show in Augusta with Renee and Doug to promote his newly-announced candidacy for that 12th District seat now held by the despised, at least in Republican circles, John Barrow the Democrat.

Renee and Doug are probably just plain giddy about the $6 million that the Republican Congressional Campaign Committee is said to be spending on that race. That is a lot of wampum for the media in good old Augusta, Georgia, with Renee and Doug figuring to receive a generous portion.

Before we start calling Rick the $6 million man, there is the not small matter of a primary to be fought and won. Talk of the Town figures to be in the thick of that mix on the way to Allen’s coronation as the GOP nominee……and in the flow of funds, first from Allen then from the RNCCC.

The feline grins around him will be seen in every media outlet on Augusta for the next 14 months. A poor mouse could get plumb frazzled to death being bandied and toyed with that long! Allen was on WGAC with Austin Rhodes the previous week, unwitting that the boys of Beasley were sizing up his wallet too.

Overturning Stone – rival John Stone- should be easy. What can go wrong? To the radio talkers, Rick will be more fun unraveling than a ball of yarn.

Stay tuned to Talk of the Town as this story develops Monday thru Friday from 7am – 9am streaming @ www.iTalkUS.com. And Live on 1230 AM!

Turn on the Austin Rhodes Show from 3 to 5 PM on WGAC AM 580 and FM 95.1.

Who knows, one day an Arrowflinger might call in.

TAF

The Falcons Rookery Project

Falcon’s Rookery Project

Originally posted March 7, 2012 at 12:05AM

by Al Gray

Over the last 2 years the Georgia World Congress Center Authority and the Atlanta Falcons Management have negotiated a Term Sheet for the construction and operations of a new stadium whereby the WWC relinquishes its 39.3% hotel motel tax funding stream, management of the stadium, and the Georgia Dome, which is to be demolished.

Agraynation.com saw this $1.2 billion transaction as an opportunity to kill 3 birds with one stone:

The first objective was Public Service for the City of Atlanta, who was handed this project after it grew too hot for the State Legislature to handle, in evaluating the Terms.

A second goal was demonstration of the Aurelius Principle employing a multidisciplinary approach which uses the other party to a transaction’s own documents to present a counterargument.

Evaluation of the Falcon’s Claim that the team was spending $700 million to the public’s $200 million.

This site compiled a restatement of the sources and uses of funds for the project after securing a key document that was missing from the GWCCA’s stadium development web page.

The detailed report, which features link to the source GWCCA documents and consultant reports was posted on the Agraynation.com site for inspection.

The Conclusion? The Falcons might spend nothing for the $1.2 billion stadium because the H/M tax stream, would exceed $1.2 billion over 35 years and could be borrowed against for as much as $650 million. (Key omission is out-year revenue stream, as alluded to by Atlanta Business Writer Maria Saporta and AJC columnist Tim Tucker.) Seats rights that GWCCA is giving up pitch in another $150 million to $200 million, and other revenues ceded by Atlanta and Georgia make up the rest.

Coming up –

In POINT BLANK, we take an irreverent look at the benefits to Falcon owner Arthur Blank’s net worth, followed by

A Well-Orchestrated Trick Play? – a look at how the GWCCA seems covered against an otherwise suicidal Term Sheet that they agreed to.

Legal Twigs in a Falcon Nest – a look at Term Sheet Trick Plays and ways to shift costs to the public

Finally – White Flag Negotiators Serve Whom?

Agraynation.com – A public service site brought to you by Cost Recovery Works.com, where the Aurelius Principle now serves clients, after 30 years in development and implementation at ever-higher levels of business and government.

Falcons’ Rookery Nearly Perfected?

Birds’ offense scores a $1.17 Billion Stadium for Free, GWCCA gets a Safety, Deal Hangs on a Thin Reed

By Al Gray

February 25, 2013

 

Dear Arthur Blank:

Contracts, commonly dismissed as mere tools, can become art forms. Under your Picasso-like direction, the Falcons’ negotiators of terms to build a new stadium with the Georgia World Congress Center (GWCCA) had delivered the workings of a masterpiece. The deal exhibited the key elements of the art form in carefully extracting more profits than the other parties would ever recognize without help. The agreement approached genius in getting the GWCCA to make it so lucrative. Now that plan has been punted over to Atlanta’s Mayor Kasim Reed by Georgia Governor Nathan Deal. Can you still pull this off? Absolutely!

The situation is perfect, too. The World Congress Center owns the existing Georgia Dome, where your Atlanta Falcons have contracted to play through 2017. With that lease expiring, the Congress Center and city are anxious about the future of their complex. Insuring that the Falcons stay downtown is of paramount importance to the politicians.

A key Citi presentation obtained by agraynation.com completes a trail of cost estimates and studies posted by GWCCA that show that the Falcons may have to pay $43 million or less for the $1.17 billion stadium.

Please forgive the brashness in barging into your team of artisans. This author was initially seeking to provide pro bono services to the Atlanta City Council and the State of Georgia, but multidisciplinary techniques grounded in documents can assess either side of a major transaction like this one. The evidence has been gathered and in this instance has shown how masterful the Falcons’ team has been in negotiations! Here is the scorecard on their effectiveness.

Hyperlinks appear in blue to the supporting documents.

Sources of Funds

Description

Amount

Debt Funded by GWCCA Contribution of Hotel/Motel Tax & Seats Rights

 

State/local Bond Proceeds from Hotel/Motel tax in Initial Years*

$359,985,041.00

State/local Debt backed by GWCCA Seats Rights Contribution, primarily Private Seat Licenses.

$150,000,000.00

State/local Funding from Leveraging Excess Hotel/Motel tax into Subordinated Debt (If not used for financing, as much as a nominal estimated $246 million is designated by the Term Sheet for stadium maintenance and future improvements)

$178,271,016.90

Total GWCCA Contribution

$688,256,057.90

 

 

State and City Funds

 

Sales Tax Rebate on Construction Materials

$30,000,000.00

Land**

$24,500,000.00

Atlanta Infrastructure Costs

$53,000,000.00

Total State of Georgia and City of Atlanta Contributions

$107,500,000.00

 

 

Enterprise Debt/Equity supported by Revenues Ceded by GWCCA

 

New Debt backed by Stadium Naming Rights surrendered by GWCCA to Falcons, over the first 20 years reduced to present value

                    $73,324,149.00

New Equity backed by Food and Beverage Rights donated by GWCCA to Falcons, over the first 20 years reduced to present value

                      $55,579,705.00

Total Funds from GWCCA Contract Rights Ceded to Falcons

$128,903,854.00

Public-sourced Funds Total

$924,659,911.90

 

 

NFL G-4 Funds Program

 

Advance from NFL

$100,000,000.00

Grant from NFL

$50,000,000.00

NFL Loan

$50,000,000.00

Total Funds from NFL G-4 Program

$200,000,000.00

 

 

Funds to be provided by Falcons out of current finances and operations

 

Falcon’s Funding to meet Estimated Project and Financial Costs

$43,017,265.10

Total Funds from Existing Falcons’ Operations

$43,017,265.10

Private-sourced Funds Total

$243,017,265.10

 

 

Total Sources of Funds

$1,167,677,177.00

 

Uses of Funds

Description

Amount

Total Construction, Site and Land Costs*

$1,032,000,000.00

Retirement of Georgia Dome Debt*

$60,000,000.00

Atlanta Infrastructure Costs

$53,000,000.00

Debt Service Retirement Account, Cost of Issuance, Underwriters’ Fees*

$22,677,177.00

 

 

Total Uses of Funds

$1,167,677,177.00

 

*The total funds shown on the Citi presentation, $359,985,041.00, less Dome debt retirement of $60,000,000.00 and Debt costs of $22,677,177.00 ties to the $277,307,864.00 shown on the BSG Sept. 2012 report (cites the Citi report) containing the $1,032,000,000.00 total funding and cost figure.

** Land is not shown as a Use of Funds item, as it is included in the $1,032,000,000 project cost total.

Of course this is just one opinion, although one has to believe the negotiating team will find the documents most familiar. It can be imagined here that they would find some holes to shoot in this analysis, but there are more supporting arguments for it than can be recited here.  It would be a boat-load of fun to participate in a city council meeting for a debate over the basic concepts.

On Wednesday February 20, the Falcons and GWCCA artisans of this transaction were heard before the Atlanta City Council saying that the football club was funding “$500 million to $700 million” of the new stadium project and that the public would be pitching in $200 million. That PR seemed to be working pretty well for enough of the Council to be willing to pass the new arrangements, whatever those may be. The Council seemed resigned that this is a “done deal.” Atlanta should get a better deal – to the tune of $250 to $400 million – but will it?

From this vantage point in the pine woods of east central Georgia, it looks like the Falcons are well on their way to getting $1.12 billion from the public and the NFL. All that is left is for your football club to come up with the other $43 million. Thanks to the lawyers and certain “options” in the Term Sheet, last minute funding “waterfall” diversions, and looseness of the scope between what the Falcons are providing and the public is furnishing, massaging at least another $43 million should be a cakewalk. Getting a $1.17 billion stadium for free should top anyone’s business career!

Getting this agreement, or a similar one, signed, sealed and delivered is job one. Once that is done, the Falcons Special Teams in Program Management can take to the field and shift another $100 million or more in costs over to Atlanta. Hire a savvy program director who knows how to play this game with the same gutsy aplomb which the Term Sheet negotiators used playing theirs. Winning coaches have winning strategies from start to finish. Winning projects do much the same.

After the stadium is built, more $hundreds of millions can flow from operations and costs shifts. Those opportunities are another article for another day.

Vigilance builds victory. The Falcons have been vigilant. Any owner would be proud.

 

-AG

Originally posted February 25, 2012 at 10:40 PM

 

The author is President of Cost Recovery Works, Inc. a firm focused on delivering superior returns for clients undertaking major projects including local governments searching for cost recovery in large construction, maintenance, entertainment venue, and other large contracted efforts. Clients and employers have included 9 Fortune 500 Companies, with 5 more served under subcontracts. Mr. Gray has been working on a pro bono basis for the Augusta, Georgia Commission since January 2012 in a comeback effort from early retirement, finding that stresses on local governments foster growing prospects for multidisciplinary cost recovery approaches. A foray into public policy is an opportunity to further multiple objectives, including public service.