I Called The Bug Babe, But She Laughed
A.G.
A.G.
June 29, 2012
Augusta, GA
By The Outsider
Augusta Commissioners wisely tabled the latest management proposal between the city and Augusta Riverfront, LLC for the $12 million taxpayer financed Reynolds Street Parking Deck at yesterday’s commission meeting. The nearly 100 pages of legal documents were dropped in commissioners’ laps at the last minute as they were coming back from a Georgia Municipal Conference in Savannah. Several commissioners said they needed much more time to review the documents before voting on them. At yesterday’s meeting, Commissioner Jerry Brigham made a motion to send the documents back to a Finance Committee work session for review. His motion was seconded and easily approved.
Lori Davis, a contributor to CityStink.net, had tried to get on yesterday’s meeting agenda to speak in opposition after learning last Friday that the parking deck contract would be up for approval; however, by that time the agenda had been conveniently closed out. Davis was at yesterday’s meeting nonetheless as a citizen observer. The citizen activists from Augusta Today, like Lori Davis, must consider yesterday’s vote as a delayed victory. Mrs. Davis and Al Gray urged commissioners to reject a similar agreement back on February 7th, but Commissioners went ahead and tentatively approved the parking management agreement with the proviso that the $7 million worth of liens would be released on the property that the deck sits on and the land would be transferred to the city’s Land Bank.
But our investigations revealed that has still not happened. The liens had not been removed and 933 Broad Investment, LLC (a sister company of Augusta Riverfront, LLC) had not transferred the land as promised… yet again. Commissioner Joe Bowles was particularly upset with these new revelations having these stern words for Augusta Riverfront, LLC in an interview with Chris Thomas of WRDW: “If they don’t go ahead and get this straightened out,” Bowles said, “I say it’s time to go ahead and bid the parking deck back out. If we don’t hurry up and get that property donated to the land bank, I would say it’s time to scrap the deal and start over.“
After Bowles’ remarks, Augusta Riverfront, LLC , their lawyers from Hull Barrett, and city administrator Fred Russell went into damage control mode. The lawyers quickly cobbled together nearly 100 pages of documents for a new management contract for the parking decks, and said that there was an agreement in place with Wells Fargo to release the liens. However, upon closer inspection, Wells Fargo was actually only agreeing to a partial release of the liens, maintaining a security interest in the $12 million taxpayer financed parking deck. What that means is that if 933 Broad Investment, LLC defaulted on their $7 million loan, Wells Fargo would become the operator of the deck, and would get all of the revenue from the 160 ground floor spaces.
Also, when we put the latest management agreement under the microscope, we found that the terms amounted to a blank check for Augusta Riverfront, LLC with no accounting controls and a nearly unlimited revenue stream to ARLLC courtesy of Augusta taxpayers. To put it in the simplest terms: It was a BAD Deal! But it should have been no surprise that this deal was so lopsided in favor of Augusta Riverfront, LLC, since it was crafted by their own attorneys from Hull Barrett. Where was city attorney Andrew Mckenzie and city-hired outside counsel Jim Plunkett in all of this looking out for the interests of the taxpayers? Why would a management agreement totally crafted by the attorneys for the other parties even be placed on the commission agenda by city administrator Fred Russell? And why was this all done in such haste giving commissioners little time to review the volumes of documents and denying the opportunity for citizens to speak out in opposition?
Cost Recovery Accounting Specialist Al Gray, who is also a contributor to CityStink.net, developed a matrix comparing the latest contract proposal with Augusta Riverfront, LLC with one that Ampco Parking Systems out of Houston, TX had agreed to earlier. You can view that matrix here–> Why is the Parking Deck Contract this Rigged? There was no comparison! The Ampco agreement was far superior to the one being submitted by Augusta Riverfront, LLC. So why did Fred Russell ignore this better deal and go for the one giving a “blank check” to Augusta Riverfront, LLC?
Augusta Commissioners deserve accolades for putting the brakes on this very bad management deal and sending it back to committee. Particularly we would like to recognize Commissioners Bill Lockett, Joe Bowles and Wayne Guilfoyle for showing leadership on this issue and providing assistance in our investigations.
How to Proceed
So what happens next? Well obviously this bad contract should NOT be approved. This is not something that just needs a few tweaks… it needs a MAJOR overhaul. Here are 3 recommendations for Augusta Commissioners on how to proceed in regard to the management of the parking decks:
1. Let ARLLC keep running the decks temporarily as they have since October 2011 with the proviso that EVERYTHING is subject to audit and use the time to cure the issues with the TEE and Decks… or
2. Use the Ampco deal as a template and swap out the deck agreements. Put in strong audit rights. Get all capital purchases to be made by Augusta.
3. *Condemn the land under the decks because Augusta needs to get out from under paying 23% of the costs, then rebid the deck management out.
Wednesday, June 27, 2012
Augusta, GA
By Al Gray
AG
* View the full Parking Deck Management Deal constructed by Hull Barrett below:
Reynolds Street Parking Deck Management Agreement (00412263-14) (2)
Tuesday, June 26, 2012
Augusta, GA
By Al Gray
Auditors have hang ups. Everything has to go through several drafts so one does not ruffle feathers or bruise egos. After an audit report is finally issued, the horse has escaped the barn. By the time a response is expected, the horse has gotten hungry and come back or he has wandered into a glue factory.
When the universe of the audit is a major capital spending project involving major construction, decision making hasn’t the luxury of 30 or 60 day response times. Delaying a week can have six figure consequences.
In 1983 we were constructing a soap plant addition in Augusta. Our writer was the project auditor. In conjunction with project management a very simple, audit reporting form was developed and implemented for specific transactions. Everyone on the construction team was expected to answer within 5 days, pledging action in most instances. Bigger reviews went through a more formal process, but foot dragging was not allowed there, either.
The process worked so well, that it was taken down the road to the mega $1 billion tissue mill that Fort Howard Corporation decided to plop down in a swampy tract in Effingham County. Trouble reared its head, because the nucleus of the management team had just finished a paper machine addition at Muskogee, Oklahoma. They had gotten into some habits that didn’t include pushy auditors, much less one with a whole staff.
Begrudgingly they all came around.
There was one holdout – Frank Buck, the construction manager. Frank was a big boned former carpenter who had worked his way up to a lofty position from getting results. Frank balked at responding to the few reports that came his way. He even balled one up and threw it at this auditor, snarling “I don’t DO paperwork!” Eventually Frank came around a little.
It was just a little, though. Frank’s favorite description of an auditor was, “One who comes in after the battle is over and bayonets the wounded.”
One day in the later years of the project, some dust got under my contact lens inside the office building. I ran into the men’s room to a mirror over a lavatory to pop the burning contact out and wash it. Having accomplished that, I turned to leave.
I had not noticed, but the far stall door was closed. When I turned to leave, this sort of small, embarrassed voice said “Al Gray, is that you?”
It was Frank.
Turning to face the stall door, I responded, “Yes, Frank it’s me.”
He said “Can you believe I walked in here and sat down and there ain’t one scrap of toilet paper? Can you hand me some?”
“But Frank you don’t DO paperwork!”
That sure was a flimsy door.
A.G.
Below are the public documents cited in this article:
Hotel Tranport Tax GORAOrd 7034 Excise Tax Hotel Motel Amend City Code (1)
Ord 7209 Amend Arc Code Section 2-32 to Provuide for the Use of the Hotel m
Ord 7083 to Amend the Arc Code by Adding Subparagraph (a) to Paragraph 111 (1)
At the conclusion of many wedding ceremonies, the wed couple rise to light the Unity candle, a solemn symbol of the merging of their two lives into one bound with love and Christian devotion. The Unity candle is at the pinnacle of flanking candles representing the two families now joined in matrimony.
All too often the sentiments behind the unity candle get snuffed out shortly after the flame. The unity candle that winds up truly representing unity is a rarity. When a husband and wife make it to the ends of their lives together, there has to be an explanation.
All joking aside, it takes perseverance and a lot of faith to make a marriage into a true beacon of unity. Forces are too great in society and life for most to make it work.
In the Bible, nothing parallels the symbolism of the unity candle more than the story of the Tower of Babel found in Genesis, Chapter 11.
A.G.
The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.
From the $8 million Lobbyist Shill Group ConnectGA2012, birthed to pitch the Transportation ‘Investment’ Act, to the various tax-loving Chambers of Commerce cheerleaders, the “New Jobs!” cries from Helen to Hahira sound like some obsessive mantra, the people of Georgia have never seen a slicker effort to separate them from their money than from these TSPLOST salesmen.
With a little effort, salesman-in-thief Nathan Deal almost begins to look like Eustace Haney from Green Acres (go watch the old bit with Mr. Haney’s Airplane Service, from Economy Flight to Washington, Season 4 Episode 19). When old Nathan came back from Congress, pursued by an ethics investigation, yet elected in a landslide over Roy Barnes, he was encouraged to think that Georgians are all rubes like Sam Drucker and Oliver Wendell Douglas.
If we buy off on his TSPLOST scam, well maybe we are past all hope.
Take a gander at what folks headed west on Washington Road (Highway 104) have been treated to starting this week. Scarcely 100 yards apart, with no visible ROAD WORK between, are two signs like this, one on each side of the road.
For what purpose are they there?
Based upon the positioning of these signs and the obvious lack of road improvements around, our sales tax dollars are only at work buying loudly colored signs pitching more sales taxes.
These people are shameless in their manipulative hijinks aren’t they?
The sure sign that we see is very clear – COLUMBIA COUNTY HAS MORE SALES TAX MONEY THAN IT NEEDS!
TSPLOST? Let’s make that into the bug-on-a-windshield thing it sounds like.
Just say NO! to TSPLOST!***
Related Story:
This hunter has a confession to make.
The reason Bo always led the pack was straightforward.
He cheated.
While the rest of the pack sought the rabbit with nose to dusty ground, diligently working to stay on track, Bo would run ahead or cut in front. When the more deserving of his fellows would correct the course of the pack, after the rabbit threw them a loop or an out, Bo would always be opportunistically waiting to charge into the lead, his chop mouth a-barking.
Taking all 32 of the pack was a troublesome affair. The hunters always had to keep count when loading the dogs up, lest one be left behind. A poor rabbit was doomed, because the pack would split, so that when he doubled back, he likely would run smack into the other half. One simply cannot convey the ground shaking racket 32 beagles make!
Uncle John’s best friend was Judson Bentley brother to his brother-in-law Irving Bentley. Judson was a most humorous, often cigar-chomping fellow, who frequently accompanied Uncles John, Land and Andrew on their rabbit hunts. Jud was the grandfather of WGAC radio talk show host Austin Rhodes (no relation to John Rhodes or this writer’s maternal grandfather).
John Rhodes was a notoriously frugal man. He drove a 1964 green Ford Ranger pickup. Instead of footing the bill for a serious box box to go in the back of it, Uncle fashioned a cover over the bed that was anchored in the corner post boxes. Instead of having a real dog box door, the box only had the tailgate to hold the pack in place. It was an accident waiting to happen.
One extremely cold morning in 1966, John, Land and Jud headed south toward Burke County with a half-compliment of 16 charged-up, excited beagles. In those days there was no Bobby Jones Expressway, so that the hunters leaving from Stevens Creek Road in Martinez had to pick a tortuous path down Washington Road, to Berckmans Road, over to Highland, then to Wheeless, over to Lumpkin Road and then south on Highway 56.
A terrible thing happened.
Just as they rounded the corner onto Berckmans Road at the big green water tower on the Augusta National side of the road, the truck either grazed the curb or encountered a bump. The tailgate fell down. All 16 beagles poured out into the intersection of Washington Road and Berckman’s road! Cars swerved. Horns blew. After a few minutes traffic stopped.
It was simply a miracle. John and Land caught and reloaded dogs while Jud, who at this point was pretty serious about events, counted. People got out of cars to help. Babe, Tiny, and Beulah were already rooting around in the vines along the National’s fence trying to jump a rabbit. Sadly what could have turned into a epochal story of a beagle pack running wild down Magnolia Lane was thwarted by the excellent fencing. Beulah was not amused when Land picked her up. She growled.
Travelers kept feeding wayward hounds into the back of the truck.
They heard a commotion from across the street, in the A&P parking lot. A woman had dropped her bag of groceries, which gave that larcenous hound, Bo, his chance. Bo trotted back to his master, meeting him halfway across the lot, with a T-bone steak in his mouth. John Rhodes didn’t know whether to laugh or cry, because he had to pay the woman for her spoiled groceries.Bo had done what he did best, cut loose from the others to steal a treat.
With Bo in hand and order restored, the party headed on down to McBean, where the threat was no longer automotive, but was more in the order of avoiding moonshiners, rattlers, and old Miz Robinson.
Jud talked about that morning for years and it became a Rhodes family legend.
History doesn’t record what happened on the hunt that day, but hunters and 16 beagles were blessed with tragedy averted at the water tower. All have passed and all that remains is their memory.
Arrrr—-roooooooooooooooooooooooooooooo!!!!!
I thought I was beyond Bo’s reach when he died, but then cousin Hugh turned loose his pup Flash one morning the next season. The dog raced out ahead looking to cut in front and steal the lead. “Cheater!” I muttered….then a the thought hit.
Originally posted on CityStink
Friday, June 22, 2012
Lincolnton, GA
By Al Gray
The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.
Below is a presentation by tax activist Al Gray before the Lincoln County Commission on June 14, 2012, warning county leaders about the “shameful” TSPLOST and its disastrous effects on the region, especially small rural counties like Lincoln, which can be easily outvoted and forced into this abominable regional government with little to no representation.
*Click Video to play (Fast forward to the 1:20 min mark for Mr Gray’s remarks)*
Chairman Johnson and Gentlemen of the Commission, thank you for allowing me to speak tonight. I have come to sound a warning about the proposed new 1% Transportation sales tax that comes before voters July 31st. Frankly, in all the years following public policy I have never seen anything this shameful.
The greater shame is on this county’s legislators – Bill Jackson, Lee Anderson, and Tom McCall for springing forth such an assault upon the people of this county. The bill that gave rise to this abomination was called the Transportation Investment Act. This bill set up a regional transportation roundtable for 13 counties, including Lincoln County. While it is true all had input, the law set up an executive committee of 5 to have the final vote for the 13 counties. They set it up so that Lincoln County is forced to be in this whole new level of regional government, whether we vote to pass or fail, so that our votes are diminished.
This is taxation without representation. Worst of all they committed EXTORTION against us all, by denying state funds if we say, “No!” Beyond this, this is a 14.2% tax increase that they swore to never vote for. Nor were any options even offered, like dedicating the 1% to our county.
Yes, the shame is upon them and tonight I come to ask you to stop embracing this nonsense lest you bring greater shame on yourselves and the Chamber of Commerce, a group that risks its reputation by hawking this tax.
Politicians and Chamber Representatives have been going around the CSRA saying this tax will raise $841 million under a base case. This is a LIE and the Promoters’ own data shows that. Here is a chart showing the base case. It is built on wild income growth numbers – 8% next year – that are a fantasy. The real numbers knock holes in these projections!
Will we get only $650 million? Sales tax revenues are WAYYYYYYY down as the blue charts show over the last 5 years. Can we pretend our way back to prosperity?
Gentlemen YOU HAVE BEEN HOODWINKED!!!!!!! What these real revenue numbers show is that area wide, revenues will probably only cover $500 million to $540 million of the investment list projects! This will mean that the ones in the last years of this deal won’t be funded. Incredibly $6.6 million of the $7.7 million of Lincoln’s projects are to be built in these final years.
The numbers say these projects will lack funding. You have been deceived and now are being asked to foist this deception upon the people of Lincoln County.
Beyond that, this is a terrible 14.2% increase in the sales tax. Frugal folks just cannot stand such an increase in any cost, for a 14.2% increase doubles living costs in 5 years. For this? This comes on top of a 23% sewer rate increase and several double-digit school tax increases. Look around! Who can afford that?
These deceivers have managed you get some of you excited over Lincoln County getting $722,000 a year in new discretionary funds. Well, based upon the data above this looks to be far less. This money is only coming to us because this scam makes Richmond and Columbia counties give up $7 million to bribe us into this wicked partnership with them. How is that right? A 1% new tax dedicated to Lincoln County would raise more revenue. Why are you excited about the same money or less with strings attached? Why are you willing to destroy your credibility for this?
Gov. Sonny Perdue said that DOT committed ENRON ACCOUNTING when it lost control of highway funds 4 years ago. Now they are all excited about getting their hands on this money. They want us to bail them out.
Mark Twain once said there were three kinds of lies….Lies….Damned lies and statistics……..now we can add a fourth lie – TSPLOST.
My warning is this: Don’t go forth using these phony numbers after tonight. You know better and the people now know better.
Just vote no on TSPLOST. It is the only honorable thing to do.
A.G.
Join the Anti-TSPLOST movement on Facebook here–> Vote NO to TSPLOST
Originally posted on CityStink
Thursday, June 21, 2012
Augusta, GA
By Al Gray
The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.
In the waning weeks of Winter 2012, Augusta Today contributor Lori Davis submitted an exploratory, wide ranging Georgia Open Records Act Request.
for the City of Augusta’s payments under major contracts. The documents response was massive. Deep in the supporting subcontractor billings to the R.W. Allen, LLC contract for the TEE Center was a most intriguing invoice from Norvell Fixture and Equipment Company showing that $199,656.00 of kitchen equipment as work completed and an additional $76,289.25 worth was stored, for a total billed and paid of $275,845.32! (less 10% retainage). The contract total for kitchen equipment is a surprising $1,329,418.00.
Why was this invoice noteworthy? There was no detailed partnership agreement executed between the City and its TEE Center Partner and Manager, Augusta Riverfront, LLC going into the contracts for construction, leaving the last word on the partnership being the unsigned, undated August 2007 Term Sheet. Repeated references to kitchen equipment are pretty clear that such equipment are the responsibility of the LLC, including this: “Augusta’s Capital Funds shall specifically not be used for items related to Kitchen Equipment, Laundry Equipment, and any Convention Center or Hotel Capital Cost.” Similar language making the LLC responsible for Kitchen Equipment remain within the executed 1999 Core Agreement of record in the Offices of the Clerk of Augusta Richmond County Superior Court.
No Augusta Funds are to be used to procure kitchen equipment, when $1.3 million of it is under contract?
During negotiations that have not yet produced a signed partnership agreement there was certainly a commitment for Augusta to construct new kitchen space within the TEE Center and relocate the combined kitchen from the existing Convention Center. That had no impact upon equipment ownership. Real property improvements and tangible personal property, such as equipment, are different.
In order to advance the investigation, Augusta Today member Dean Klopotic submitted a follow-up GORA request seeking the most recent R.W. Allen LLC billings under the Tee Center Contract. The City responded with Progress Billing Number 24, covering costs through March 24, 2012, including Kitchen Equipment Invoice Number 6, through March 20, 2012.
The details show $792,984.52 equipment work completed, materials stored of $162,544.34 and a total billed of $955,528.86, less 10% retainage. The R.W. Allen monthly invoice shows no additional kitchen equipment stored. Both Construction Manager and Subcontractor show most of the kitchen equipment as work completed.
At 11:00 AM on Thursday, June 7, Barry White of the Convention and Visitors Bureau conducted a TEE Center tour, which was attended by Ms. Davis and this writer. Project Manager Jacques Ware of Program Management firm Heery International would not permit the use of a video camera, suggesting that we come back for the Media Tour to be held Thursday June 14.
When the entourage reached the second floor of the TEE Center, the empty space was pointed out where the kitchen is to be located. At that juncture, an inquiry was made about the kitchen equipment invoiced back in December. Mr. Ware said that he didn’t authorize payment for a kitchen equipment invoice, asking what kind of equipment was on it. This writer responded, “A number of tilting kettles and ranges,” then pondering out loud if they might be stored. Mr. Ware said the only kitchen equipment there would have to have been, “for the Marriott.” (The Marriott is owned and operated by Augusta Riverfront, LLC.)
An email request to Mr. Barry White to be included in the Media Tour on the 14th received no response. Other attempts were made to get a separate tour along with one or a group of commissioners to investigate the matter. Commissioner Joe Jackson had just returned from vacation and could not schedule a tour in the next week. Commissioner Bill Lockett managed to get the Heery project liaison to get permission to join another June 14 tour, only to see it canceled after several hours.
Commissioner Wayne Guilfoyle was provided with a copy of Kitchen Equipment Invoice on the morning of June 20, whereupon he sought explanation of where the kitchen equipment is from Program Manager Heery International, receiving assurance that the materials were, “either stored or installed.”
It is fairly common practice to bill stored materials. There is clear language on billing documents that they are, “Materials Stored on Job Site (Invoices if Required).”
Where does the situation stand? What are the issues?
Issues and Questions
Has Augusta Riverfront, LLC been relieved of its responsibility for the purchase of kitchen equipment? If so, where? If not, is Augusta being reimbursed for the $1.3 million cost?
If the Kitchen Equipment was delivered and used in Conference Center operations and events ($955,528.86 having been delivered, installed or stored prior to the Masters upswing in events) where is the accounting for the revenues?
Without an Effective Date having been established for the successor catering agreement, where does accountability lie, especially since Augusta Riverfront, LLC’s Paul Simon having declared the TEE and Conference Center merged months ago?
Why do both the R.W. Allen and Norvell Fixture and Equipment Company invoicing show the equipment as “Work Completed” if the equipment is “Stored?”
Should Augusta have paid for nearly a $million of equipment months before it is installed in the new kitchen?
Why does the invoicing include future charges for repairing Augusta Riverfront, LLC equipment? Whose equipment will it be after Augusta repairs it?
———–
Commissioners Joe Bowles, Joe Jackson, Wayne Guilfoyle, and Bill Lockett have provided Augusta Today and CityStink.net with substantial cooperation in this investigation and report. The public can feel confident that these gentlemen will pursue this matter to a conclusion.
Several of them need to participate in a tour and inspection of the paid-for kitchen equipment. Perhaps the city’s internal auditor can vouch for the accountability of the equipment, including verification of delivery documents to a storage facility before the dates that the invoicing was submitted.
It is hoped that all will aggressively protect the interests of the citizens of Augusta and seek wise counsel as they deal with the aftermath of the total mess that the TEE Center currently represents.*** Stay tuned, more to come.
A.G.