Category: All

Al Gray Explains Why TSPLOST Must Be Defeated (Video)

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Originally posted on CityStink
Thursday, July 12, 2012
Lincolnton, GA
From CityStink.net Reports
Commentary

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.

Al Gray, of ArrowFlinger Reports and a CityStink.net contributor, explains in this video presentation why the atrocity known as TSPLOST should be defeated at the polls on July 31st. Before voting on TSPLOST you NEED to watch this video.

Trickery Backfired on a Lincoln County Road

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Sneaky Snakes and Mars Rocks

 

Saturday, July 7, 2012
Lincolnton, GA
By Al Gray
 
Have you ever read a story about Mars rocks being found on earth, like this, and think, “How do they know it came from Mars?” and then wonder if it was some prank?
 
Some years ago, after an afternoon hunt in the Ogeechee River Swamp, your Arrowflinger was walking down a clay road through some South Georgia live oak forest – after dark, with a powerful light, but one which quickly drained its battery. He would shine the road, then cut his light off and walk a ways. The Arrowflinger had just flipped his light back on when a shuffling noise came from right over his right shoulder. When he swung the light around it rested on the form of a monstrous rattler, which apparently had slid down the road bank upon his passing.
 
After regaining his composure, old Arrowflinger started looking all around for a stick to kill the snake with. The road had been freshly graded, leaving only bare ground and some dirt clods. (Do you remember what a dirt clod is?) Nearby was a clod about the size of a basketball. It was beyond belief that this was the only thing available to kill the snake, who had probably crawled over his bow and arrows getting there. The clod was sun-baked and was sufficiently hard to break the snake’s spine. There was only one problem – the object was too big to hold with one hand and the other hand was needed to hold the light.
 
In the meantime, the rattler began to crawl away. Kicking some loose clay on him succeeded in getting him to stop and start rattling vigorously. Holding the light between his legs, your nervous Arrowflinger hoisted the dirt clod to his chest, then heaved it toward the reptile. It missed, shattering into fragments, leaving the larger piece about the size of a volleyball. Fortunately this piece had rolled away and was no longer within striking distance. The intensity of the rattling at this point was unnerving enough, when the unthinkable occurred. The 150,000 candlepower light was down to its last 50,000 candles and those were fading fast! After kicking his “weapon” away from the rattlesnake to retrieve it, and trying to focus the dying light on what was a tremendous snake, the Arrowflinger prepared for his final toss. This one found its target, breaking the rattler’s spine. A third attempt permanently disabled it. Then the light died completely.
 
Your near-snakebite-victim pulled his deer stand out of the edge of the woods and sat on it there, alone in the dark with his scaly friend, waiting for his brother-in-law to come and pick him up. Every minute or so the rattler would start a faint buzz with its tail. Eventually some headlights appeared in the distance. It was Robbie, coming down the twisting road. He immediately pulled the truck in position to shine its headlights on the animal. Upon jumping out of the truck, he exclaimed, “This snake is not dead-only stunned!” Upon retrieving a piece of pipe from the truck, he promptly dispatched the reptile.

 

 
Next to be picked up on that dirt road was John, a guy with a tremendous fear of snakes. Robbie said, “Put that twitching snake right there in the corner by the tailgate on John’s side of the truck.” That done, the truck of hunters headed off to get John. Sure enough, John went to set his beltpack inside the truck and felt the still-moving scaly reptile. He let out a shriek, followed by a stream of less-than-adoring or complimentary description of our ancestries.
 
The snake stretched from one side of the pickup tailgate to the other. We took several pictures of it upon our return home. It was late, so there was no time to dispose of the carcass.
 
The Arrowflinger was hunting the next morning in Lincoln County, about 100 miles to the north. At the time he owned a tract of about 100 acres there. Upon going in the gate, it was realized that the dead snake was still in the truck bed. It was before daylight. He started to toss the snake in the bushes, then had a thought, “Maybe I can have a little fun with this snake!“
 
You see, there are almost no rattlers, other than pygmy rattlers, in that part of Lincoln County. This snake was really big! There is little industry in the county and most of the residents have to leave early to get into Augusta to work. So there were going to be a lot of cars coming by in the next half hour.
 
Your Arrowflinger picked the snake up and stretched him across the outbound lane, then hid in the bushes by his gate. Action was not long in the making. A car came around the curve, went WHUMP-WHUMP as it passed over the snake, and flashed its brake lights. They must have been late for work. A minute later Car No. 2 made the WHUMP-WHUMP noise, squealing its tires shortly thereafter. The driver stopped for a minute, then proceeded on. The driver of car number 3 must have had his morning coffee. It was an old, dark-colored Thunderbird. The driver slammed on the brakes to kill the snake, sliding by it in the process. Slowly he backed up until his headlights rested on the snake. He stopped the car, got out, and pulled something from the backseat. 

 

The engine was still running, so he could not hear your trickster laughing. Then the arrow flinging practical joker heard a metallic noise as he approached the front of the car. Suddenly the Arrowflinger realized that the joke was on him! This guy was going to shoot the snake and guess who was in the line of fire! The Arrowflinger!!! Quickly diving for cover just as the trigger was pulled – BLAMMM! – he heard bird shot ring through the trees over his head. Then the man picked the snake’s body up, put it in the trunk, turned that car around and took the snake back home. The shaken bowhunter dusted himself off, plucked numerous briars from his flesh, wiped away the blood and went hunting.

 
Well this story was not over. Your wayward archer was working on his fence the next July, when an old, black Ford Thunderbird pulled off onto the shoulder of the roadway. An old fellow got out and said:

 

“Mistuh, You sho bettuh be careful aroun’ ‘dis place. My bruther whut live down ‘dis heah road, he killed de biggest, meanest rattlesnake what ever been killed up heah in Lincoln County! One mawnin – Ah do believe it wur las Septembuh – he whur headed fo wuk down to Shapiro’s meat packin plant down yonder in Augusta when dis here rattlesnake crawled into dis road rightchere. Bo – he be my bruther – slammed on his brakes and tried to kill Mr. Rattlesnake, but dat only made him madder’n a wet hen! Dat snake threw hisself into a qurl and started to singin. Ole Bo he be lucky he had his ole 410 in de back o dis car. He shot de snake in de hed and brung him back to sho me. When he opened de trunk Ah dang neah went into a swoon. Dat snake he were a MAN! He looked lik he been eatin plenty o possums and rabbits. Ah do believe he wuh big enough to swaller a coon. So mistuh, ole Jake don’t wanna tend to yo bidness none, but you sho outta be careful around dis place heah. Dat ole big snake has a momma ‘roun heah fo sho’, ‘an you sho don’t wanna be bit by no snake dat big!“

 
Fighting back tears, the Arrowflinger thanked Jake for his advice. He got into his car and drove away. It was hoped that he did not look into his rear view mirror. The Arrowflinger collapsed, howling, before he got out of sight. The sores on his tongue went away after about a week. He never thought that a dead snake would cause such an uproar and exaggeration. The Arrowflinger even heard about, “Dat big rattlesnake ole Bo kilt‘ up at the local store one morning.”
 
Could this be what happened with the Mars rock?***
A.G.

Special Report: Heerily Missing

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Friday, July 6, 2012

Augusta, GA

By Lori Davis

The photo above shows the floor of the Harrison Building, the old brick building shell preserved as an entrance to the TEE Center. This picture was taken on June 7, 2012, during a TEE Center hardhat tour by Convention and Visitor’s Bureau chief Barry White and Heery International’s Jacques Ware.

Heery is the program manager for the City of Augusta’s hundreds of millions of dollars in sales tax funded building project and Jacques Ware is the Heery project manager over the TEE Center.

Below is a photo of the TEE Center Exhibition Hall, the enormous 38,000 square foot open room that is to house the trade shows and various TEE Center exhibitions.

At the time of the tour, the CVB folks excitedly made the point that the floor was going to be poured the next week. This was on June 7.

Interesting.

R.W. Allen LLC’s progress billing number 24, through March 29, 2012 (Page 4, Item 10) shows that two whole months earlier, an incredible 84% of the concrete walls and slabs

were complete!

How can this be? The main exhibit hall room is a staggeringly large percentage of the total concrete slabs on the project. How can 84% of the slabs and walls have been complete back in March when the main floor was still dirt?

Isn’t Augusta put at risk, when subcontractors are paid so far in advance of the work performed? Isn’t the previously noted issue of $1.4 million of kitchen equipment that was paid for a nonexistent kitchen proof that Heery is just rubber stamping contract payments?

Let me see now. The commission relies on Fred Russell, who relies on Heery, who apparently sees construction completed that just isn’t there.

Unreliable fits and this time, it will be set in concrete…….eventually.***

L.D.

Augusta Being ‘Swept’ for $67,260?

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Mr. Simon, Backcharge your Attorney $67,260 

Friday, July 6, 2012
Augusta, GA
By Kurt Huttar
Mr. Paul Simon of Augusta Riverfront, LLC dutifully submitted a 2012 Operating Budget and Capital Budget to the City of Augusta early in the year, as required by the proposed Reynolds Street Parking Deck Management agreement. Included was the cost of a parking deck sweeper.

Houston, we have a problem. You see, the proposed management agreement only allows capital expenditures under pretty limited circumstances. It reads like this – “Capital Improvements” (Capital expenditures) shall mean one or more items or project(s) – i) the cost of each of which totals $5,000.00 or more, ii) that becomes part of the RSPD, and iii) the cost of which is required or allowed to be capitalized under the accounting guidelines of Augusta, Georgia and GAAP.

Since the sweeper is a piece of mobile equipment, it cannot be “part of the RSPD,” can it?

Hopefully, Augusta Riverfront, LLC has not purchased this sweeper under its interim agreement, because if it has, some citizen might demand Augusta’s money back from this purchase, as it is not allowed.

Since taxes and freight of 14% were added to the $59,000 estimated cost, the total would be $67,260.

Since Augusta Riverfront lawyers missed this point, shouldn’t Mr. Simon bill them for this cost?

For another thing, won’t this sweeper be used over in the TEE Center Parking Deck, where Augusta Riverfront is leasing the parking deck? Doesn’t it create an accounting conflict to have 100% of the cost of the sweeper born by the Reynolds Street Parking Deck, which is totally funded by city taxpayers, instead of the TEE Center Deck?

Here is one analyst who wants answers.***

K.H.

RSPD Capital Equipment List

Breathtaking Events Engulfed Jonah

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Three Gulps

Sunday July 1, 2012
Augusta, GA
By Al Gray

Early last month, big government looked to strike again. Mayor Michael Bloomberg of New York City proposed banning big sugary drinks with the hope of saving us from obesity and diabetes at our own hands. The Big Gulp came to mind for we know that staple of decades, an oversized 7-11 beverage, pretty well. A Big Gulp is the very definition of gluttony. Saint Thomas Aquinas said this about the matter – “Gluttony denotes, not any desire of eating and drinking, but an inordinate desire … leaving the order of reason, wherein the good of moral virtue consists.”

Jonah was a glutton for punishment, the fish that swallowed him was a glutton for a big gulp, and these days we all are gluttons for pushing a failed society beyond all bounds of prudent. Jonah might have wished that a commandment from a leader like Mayor Bloomberg carried the authority to save him from himself or hide him from the Lord. It wasn’t going to work that way.

Our scripture for today is Jonah Chapter 2. Jonah rebelled against the Lord’s instruction to go to Nineveh; he had gulped at the prospect to preaching to imaginably hostile crowds. Then the fish gulped down Jonah. In chapter 2 we read of Jonah gulping in anguish at being separated from the light of the world and the light of God. We get a sense of Jonah’s reality check at the seriousness of his position and his new-found faith that got him out of it.

2 1 From inside the fish Jonah prayed to the Lord his God. 2 He said:

“In my distress I called to the Lord,
and he answered me.
From deep in the realm of the dead I called for help,
and you listened to my cry.
3 You hurled me into the depths,
into the very heart of the seas,
and the currents swirled about me;
all your waves and breakers
swept over me.
4 I said, ‘I have been banished
from your sight;
yet I will look again
toward your holy temple.’
5 The engulfing waters threatened me,
the deep surrounded me;
seaweed was wrapped around my head.
6 To the roots of the mountains I sank down;
the earth beneath barred me in forever.
But you, Lord my God,
brought my life up from the pit.

7 “When my life was ebbing away,
I remembered you, Lord,
and my prayer rose to you,
to your holy temple.

8 “Those who cling to worthless idols
turn away from God’s love for them.
9 But I, with shouts of grateful praise,
will sacrifice to you.
What I have vowed I will make good.
I will say, ‘Salvation comes from the Lord.’”

10 And the Lord commanded the fish, and it vomited Jonah onto dry land.

There are trinities all through the Bible.  The Book of Jonah is the story of the Three Gulps. The first gulp was one caused by Jonah’s imagination of the indifference, ridicule, and hostility he might receive at the hands of a foreign people, amongst crowds of strangers. Most folks we know are like that. They will do anything to avoid speaking in public, about anything, much less preaching about the one Lord in a pagan land.

The second gulp was that of the fish swallowing Jonah. While we can be sure the Lord summoned the great fish for the purpose of bringing obedience to Jonah, we can also imagine that a fish large enough to swallow a man would have a Big Gulp out of natural proximity to prey not too big to swallow.

It was the third gulp of realization in this story that is the most important. Gulping can be out of apprehension of the imagined, such as the prospect of preaching to a novice; it can be a physical act of taking an inordinate swallow, as the fish exhibited; and it can arise at a sudden very real assault on the senses, as the near-drowning, then engulfment of Jonah. There was a sudden need for breath, a desperation causing panicked swallowing of nothing but stale air. Then came realization, not just of his predicament of being in the belly of a fish, but the recognition of how wrong, sinful, and dismissive of God he had been, not just in avoiding Nineveh, but all through his life.

Lastly, the third gulp brought redemption. Jonah made peace with the Lord and promised to follow his commands, after his emotions had ranged from despair to calm assurance in the Lord’s presence and forgiveness.

Are we in this day and age so jaded, so conceited, and so consumed with gluttony from constant immersion in this corrupt society that it will take a massive shock to our senses to bring us to the conclusions to which Jonah was brought? Let us pray to the Lord that we might be mindful of the story of Jonah.

Three gulps there were. One arose from imagination. One arose from the aggressive gluttony of another, albeit that of a fish. One arose from physical assault on a fragile human body.

Mayor Bloomberg cannot save New Yorkers from a Big Gulp, nor can President Obama and Congress spare the American people. There will be no deliverance. Yet there will be redemption for those who believe in our Lord Jesus Christ.

No one had greater trials than Jonah, Job and Moses. Let us pray that, should the time come, the Lord will give us their

perseverance and focus on Him.***
A.G.

White on Black Climb, an Execution Stayed

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Photo by Quinn Buffing on Unsplash

I Called The Bug Babe, But She Laughed

Saturday, June 30th, 2012
Lincolnton, GA
By Al Gray
 
 
Most homebuyers know to require a home inspection, including a termite report. Well, you need to know there are lots of pests that many folks just don’t think about when they sign a real estate contract and close on a house. Another thing is that there are critters that the pest control firms shy away from. Ask the Bug Babe of Augusta’s Advanced Services. Some things make her laugh.

 

 
Your tale teller’s house is in Lincoln County, Georgia, situated on 38 acres on the southern end of the county near Clarks Hill Lake. It was purchased at a very reasonable price from a guy who had been transferred to his employer’s Atlanta office. (How’s that for a change in lifestyle!) This previous owner, Tim Rambleton, owned horses and had constructed a 20×20 pole barn to hold his “stuff.” That shed had little value. The poles were not plumb and were misaligned. That might have been surmountable, but the roof was skewed. The lumber was infested with carpenter bees, that look like this:

Photo by Kai Wenzel on Unsplash

 
 
 
The worst thing was the floor. Tim had laid out a series of wooden pallets and nailed sheets of particleboard over them. This left a space about four inches high under the floor. The immediate thought was, “What a great snake den!” As it turned out, that could not have been more wrong!
 
 
Although the house was only three years old, it was considered a “fixer-upper.” The mud room was just that – covered with Georgia red clay. There were no exhaust fans in the bathrooms. The ceiling fans made all sorts of racket. The deck was 12 feet square. Their dog had gnawed on the outside office door. It took a lot of work. Oh, one last thing is that there was no garage door.

 

 
Shortly after moving day, during the winter of 1998, conical holes in clusters came to be noticed in the yard. The clusters grew in number and size. Some sort of critter was tearing up the yard! “What” was a mystery. Then one night, your story teller awakened around 2 AM and decided to cut on the lights to see what was out there. The floodlights glaring, the mystery was solved. There were several skunks out there digging.

 

 
A call went out to the Department of Natural Resources to inquire as to what could be done with nuisance skunks. The game warden said, “Trap them in a WIRE trap!” Seriously. Mama raised no fool, and there was absolutely no way this guy was gonna move a wire trap with a skunk in it.  The man just as well should have said, “Catch them in a fish net.”

 

 
Lethal measures were the only resort. Five of them were shot. Some sprayed. When they did that, the smell lingered for the better part of a week. With others, lucky shots resulted in no noxious mist rising from the corpses. None of them made it back to their warren – it turned out to be the space under the pole barn’s rickety flooring.

 

 
The clusters of burrowing holes grew smaller. The skunk infestation looked to be over. Then came the night the skunks turned the tables … almost.

 

 
A very long day of bowhunting for deer sent this house dweller into a very deep sleep, before a need to visit the bathroom created a stumbling, closed-eyed ramble to the window and backyard light switch. Sure enough, there was a very large, classically marked up skunk. He looked like this:

Photo courtesy of Photoartinc.com

 
 
Aching bones and tired muscles shouted, “Let him go, give him a reprieve, he will leave!” Before returning to the warm comfortable bed, a second thought occurred. The late return from the hunt had meant that a needed high powered rechargeable spotlight was face down at the garage entrance. It needed recharging for the next day’s hunt. To the right of the door into the house, the Cub Cadet lawn tractor was parked between the step and the corner of the garage. Having once spotted skunk droppings inside the garage produced a sense of caution, but that light had to be retrieved for charging.
 
Your white maned, sort-of-fat author was dressed only in his boxer shorts.

 

 
Emerging onto the top step, the tractor was carefully examined – except for under the mower deck. Seeing no black and white threat, I decided to go for the spotlight on the floor. No sooner than hand grasped the handle, a rustling sound was heard – from the stairsteps!  There stood the black and white skunk seen earlier at the threshold, sniffing to see if he wanted to go in! Picture what came next, this – a mostly naked, fat, white haired man making a seemingly impossible leap OVER the skunk, through the door, and slamming the door in that skunk’s face.

 

 
The skunk held his fire, sparing the mud room and homeowner from a really, really bad top coating.
 
All thoughts of skunk reprieves vanquished, a shotgun was quickly accessed to accompany the spotlight. The door was opened. No skunk. Warily, the garage was being explored when that skunk bolted for the woods. The first shot missed. The skunk was 15 feet from safety when the second blast took it out.

 

 
Big problem.

 

 
The skunk shot was a black skunk with white bangs … Mrs. Skunk. WHERE WAS MR. PERFECT SKUNK?

 

 
He had to be in the garage. Sure enough, he was there – under the hood of my new pickup truck! One could hear him rustling around on top of the engine! Worst of all, skunks are nocturnal. It would be light in about 45 minutes. What if that skunk was still in there at daylight?

 

 
There was nothing to do but go back to bed. The morning hunt requiring travel would have had to be scratched in favor of a hunt on the grounds. A nice fat doe fell to the bow and arrow, giving even more time for the black and white scent emitter to escape.

 

 
The examination of the truck and ginger lifting of the hood arrived with a trepidation like that of inspecting for a car bomb. With crossed fingers, the engine was started, all the while the truck owner, mindful of his cousin starting up an engine with a cat entangled in it, was expecting a fog of ruin to overwhelm the new-truck smell.

 

 
The skunk was gone.

 

 
Monday, instead of the bow shop getting a sale of the latest Matthews bow, the garage door company got a contract to install a remote controlled garage door, as soon as possible.

 

 
The skunks never came back. One of them had been living under the steps inside the garage. Everyone coming and going had walked over his den.

 

 
Getting “skunked” nearly took on new meaning.

 

 
The lawn recovered and was fine. Then the conical holes started multiplying again. It was the:

Photo by Suzanne D. Williams on Unsplash

 
 
 
That is another story.***

 

A.G.

Commission Tables Parking Deck Management Contract

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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.

 
Related Stories:

Special Report: Why is the Parking Deck Contract this Rigged?

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Wednesday, June 27, 2012
Augusta, GA
By Al Gray

Rule Number One in contracting, whether you are the Owner or the Contractor is this: Never, ever sign a contract drafted by the other side, as is.

Why on Earth is the Augusta Commission poised this week to ratify the Reynolds Street Parking Deck Contract when in the upper, right hand corner we find this notation?

Hull Barrett 5/16/12

Version 14

I thought Andrew McKenzie was the City Attorney and Jim Plunkett was serving as Special Counsel for the parking deck and Tee Center deals. Hull Barrett is the attorney for the other side to the RSPD contract, Augusta Riverfront, LLC (I will abbreviate this as ARFLLC in the article). So why is Augusta going to execute their contract?
Being in the asset protection business, I asked Augusta Today and CityStink.net Contributor, Al Gray, a semi-retired Cost Recovery Accounting specialist, to compare Hull Barrett’s contract with the one that the City suggested in its Parking Deck Management RFP as Appendix F . This contract was the one that Ampco Parking Systems tentatively agreed to on its way to becoming the Augusta-recommended parking deck manager, before being jilted by Fred Russell in favor of ARFLLC. The draft contract borrowed a lot of its language from the contract between Augusta and Republic Parking, management firm for the existing Conference Center Parking Deck before the TEE Center.
In this article I am going to dispense with triviality and call the RFP contract “the Ampco contract” because Ampco accepted it without significant reservations.

I wanted to see if the deal Augusta got was as good as the Ampco one Fred rejected. My unpaid consultant balked, saying he had done enough free work and there were powers given to ARFLLC that on their face meant this deal was a “blank check.” Others in our group chimed in and twisted his arm into doing a matrix comparing these contracts. You can view that matrix below.

Deck Contract Matrix 2

The RSPD contract is indeed a blank check. Listen to this:
“Manager shall have discretion and control, free from interference, interruption or disturbance, in all matters relating to management and operation of the RSPD, including, without limitation… and, in general, all activities necessary for operation of the RSPD.”
I was shocked to learn that.

It gets worse. ARFLLC gets appointment as Augusta’s agent, with powers that the Ampco contract denied it. It gives the ARFLLC Manager the right to purchase capital equipment and make capital expenditures, creating risk that Augusta will have unrecorded assets.

The majority of costs under the Deck management agreement is labor and fringe benefits. ARFLLC sets salaries, can assign folks with heavy vested benefits, can assign its own agents as RSPD employees, bill “shared” employees, assign Officers of their company at will, and even pay bonuses for Augusta to fund. The Ampco contract allows almost none of this stuff.

Ampco could have done nothing beyond the limits of the Annual Plan. If it exceeded the costs in the Plan, it would be denied payment. Only the exact same sorts of costs could be billed as were identified in the Plan. The ARFLLC contract that Fred proposes says the Plan is only a goal and gives ARFLLC full authority to exceed the Plan and incur costs to be passed to Augusta not in the Plan.

Ampco was only going to get 2 months to reverse its prepaid operating expenses to Augusta. With ARFLLC, the requirement is 90 days, the balance has to be maintained, and Augusta funds it without limit. (Normally the Plan would be a limit.)

Accounting controls are pathetic, too. Ampco would have had to deposit parking fees by the next business day into Augusta’s account. ARFLLC has no such requirement, with the contract actually looking like it lets that manager hold back funds! If the balance in the RSPD operating account at the end of a quarter dictates Augusta’s need to replenish the account, can’t this defect allow the Manager to withhold revenues then, thereby making Augusta pay up more money? ARFLLC gets to set up an account in Augusta’s name that it controls! It can even directly transfer its fee out of the account. The parking management RFP contract did not allow that.

The Parking Deck RFP that Augusta put out was adamant about having a policy and procedure manual. The ARFLLC  deal does not require any manual at all!

Insurance premiums were going to come out of Ampco’s fee. With this Hull Barrett contract liability insurance is billed to Augusta! Not only that, Ampco would have been required to furnish a $75,000 fidelity bond at its own costs that ARFLLC is allowed to welch on.

I thought the really terrible thing about audit rights and records kept is that most of the costs are in the RSPD payroll and there is a statement in there that the manager doesn’t have to make records available for its other operations – with the RSPD payroll looking to be part of those other operations. Get this – this Hull Barrett contract lets ARFLLC assign folks with high salaries to the RSPD and never show Augusta the actual payroll records!

ARFLLC even gets benefit of 23% of the costs, at nearly $45,000 a year, associated with its 150 parking spaces. The Hull Barrett contract says these are “incidental costs.”  Now this contract says that the “incidental” costs cannot be material to Augusta. I think $238,000 and 23% pretty material, don’t you?

The benefits of the Hull Barrett contract are more numerous than I can get to. ARFLLC can assign the contract without Augusta terminating it. Ampco couldn’t. It can set rates. Ampco couldn’t. ARFLLC can pay itself with Augusta supplying an unlimited funding stream. Ampco couldn’t.

I’ve got the picture. It is one of Augusta caught in a matrix of incompetence, no accounting controls, and powers given to folks outside of government with what looks to be an unlimited revenue stream courtesy of Augusta taxpayers. Thanks a lot, Fred.***

AG

* View the full Parking Deck Management Deal constructed by Hull Barrett below:

Reynolds Street Parking Deck Management Agreement (00412263-14) (2)

Behind Closed Doors, An Attitude Adjustment

  By , ,

A Frank Audit

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.

Frank’s missing paperwork was my best ever audit report.

Frankly, that was my best audit retort.***

A.G.

Special Report: Hotel Transportation Tax Heist?

  By ,
Monday, June 25, 2012
Augusta, GA
By Lori Davis
On May 18, 2012, Augusta Today member Dean Klopotic submitted a Georgia Open Records Act Request to the City of Augusta for an accounting of the $1 ‘bed tax’, or hotel transportation tax, which was enacted in 2008 to fund the capital and operating budgets for the TEE Center, plus to fund the Laney Walker Improvement project. The City Law Department responded with accounting reports showing the requested information.
The Tax was enacted via Ordinance Number 7034  on February 19, 2008. Collections began March 1, 2008. The existing hotel tax comes under the framework of  Ordinance 7209.
 
Subsequent to the enactment of this ordinance, on September 16, 2008 Ordinance 7083 was passed and executed. This ordinance added Code Section 2-2-33.7 which reads:
The effective date for this funding provision shall be the first calendar month following the latter of the execution of a contact for the construction of the TEE Center or the closing for the acquisition of the real property on which the TEE Center shall be constructed Until the effective date all Transportation Fees that were to be designated for TEE Center expenses including the Transportation fees collected prior to enactment of this subsection shall be allocated to fund Transportation services as provided in Paragraph 1.
Funds were collected and distributed to the Laney Walker Redevelopment Projects for the Fiscal Years 2008 through 2010, with the balance allocated to the Augusta Transportation Department. However, in Fiscal Year 2011, $350,000 was transferred to the TEE Center, Department 297061910, Account #5721110. Why? And who decided to blatantly go against the ordinance? If transportation suddenly stopped getting their allotment, did anyone in transportation question this? Did any of the money ever go for transportation?
The Ordinance does not allow the money to be transferred because the parcel that the Manager and TEE Center Partner, Augusta Riverfront, LLC owns under the TEE Center (parcel #037-3-047-00-0)  had not been deeded over to the city at the time that the funds were transferred for TEE Center use.
*see map aerial of parcel (yellow border) below*
In other words, the money should have continued to go to transportation even until this very day. This expenditure looks to me to have been a misappropriation of funds for a purpose other than allowed by Augusta’s governing ordinances.
Another issue is that  Ordinance Number 7034  allows the $350,000 to be spent on operation and maintenance costs for the Tee, while the tentative agreements with Augusta Riverfront, LLC, Manager of the TEE Center, say that $100,000 is to go to the TEE Center Capital Budget, while the remaining $250,000 goes to operations and maintenance.
Is our City government a renegade operation who ignores its own ordinances?
Summary
So let’s summarize what all happened here. In order to fund the Laney-Walker redevelopment project with the hotel-motel tax it had to be linked to promoting tourism. That was done by linking the $1 hotel bed tax to transit (which is considered a tourism related service). Between 2008 and 2010, Augusta Public Transit was receiving its $350,000 per year from the $1 per night hotel/motel tax. However, those payments ceased in 2011 and were diverted to the TEE Center. But under the guidelines of the ordinance that established the new hotel/motel tax, the TEE Center was not eligible to receive any of these funds in 2011 because Augusta Riverfront, LLC had not met key stipulations of the agreement, such as deeding over a parcel under the TEE center to the city. Augusta Public Transit should still be receiving that $350,000 per year from the $1 per night hotel bed tax that was diverted to TEE operations.
To make matters worse, we discovered that the $350,000 diverted from transit to the TEE Center all went towards marketing. The irony in all of this is that all of the other hotels in Richmond County are paying into this new hotel-motel tax which is essentially going to market a competitor hotel, the Augusta Riverfront, LLC owned Marriott, which has exclusive use of the TEE Center. The marketing program paid for by the Augusta CVB for the TEE Center with this $350,000 conspicuously mentions the convenience of the Marriott hotel being attached to the facility but gives short shrift to other Augusta hotels such as the Ramada Plaza, which is just a few blocks away. The fact of the matter is, none of this money should have gone to the TEE Center in 2011 nor currently, and Ordinance Number 7034 and the tentative agreements between the city and Augusta Riverfront, LLC conflict with one another.
Recently, I went on a tour of the TEE Center as provided by the Convention and Visitors Bureau. I asked the question,”How will convention attendees get here from other area hotels? Will there be a shuttle service provided?” The answer I received was a quick, “No. That simply is too costly.“
What if the money that should have been going to transportation all of this time had still been going to transportation as the ordinance had stipulated? Is any of this fair to the other hotel owners in Augusta who are being taxed to subsidize their competition? Why did the TEE Center receive $350,000 from the hotel/motel tax in 2011 when this was clearly a violation of the ordinance that established the tax? Who authorized this diversion of funds from the transit department?
Just imagine how much $350,000 could have helped improve the transit system. And shouldn’t some of it go towards providing transportation from the other area hotels to this new publicly funded convention center that they helped pay for via the hotel-motel tax? Why does everything go towards the benefit of Augusta Riverfront, LLC? These may be some questions other area hoteliers may want to start asking. Stay tuned for updates.**
LD

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)

Tee Land Acquisition