Category: Augusta Politics

TSPLOST Beneficiaries Boost Anderson Congressional Campaign

  By , ,

Monday, August 6, 2012
Augusta, GA
From CityStink.net Reports

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

Analysis of campaign disclosure reports submitted by the Lee Anderson for Congress campaign show an unsurprising result. Anderson, a Republican running for the 12th Congressional District Seat in the Congress of the United States, was an early and heavy beneficiary of political donations from area contractors, more specifically paving and site work contractors who stand to gain from the TSPLOST bill.

While Anderson was in the Georgia House of Representatives, he voted for House Bill 277, the Transportation Investment Act of 2010, which was quickly dubbed TSPLOST.

While voters in Columbia and Lincoln Counties who were former constituents of Anderson’s voted down TSPLOST in their respective counties, most were shocked to learn that they had been sold into subservience to the inner city entitlement crowd by Lee Anderson. Because it was a regional vote, Anderson and the gold dome crowd had eliminated home rule on the county level.

It is said that, “the path to hell is paved with good intentions,”  but for the pavers the path to riches is a river of cash to Lee Anderson.***

Farmer Lee Anderson Grows Taxes

  By , ,

The Lee Tax Shift

Originally posted on CityStink
Friday, August 3, 2012
Columbia County, GA
By Kurt Huttar

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

Last Tuesday, July 31, 2012, saw the completion of the biggest tax shift in CSRA and Georgia history with the passage of the 1% sales tax for transportation called TSPLOST. Less than two months after Columbia County Representatives Lee Anderson and Ben Harbin voted for $tens of millions in new sales tax exemptions for Delta Airlines, Delta, Georgia’s  domineering airline, contributed $225,000 used to convince easily-swayed voters to vote themselves a 33% sales tax increase on food.

Perhaps Delta, once notorious for sending passengers on the last leg back to Augusta on buses, wants safer roads on which to transport shafted customers upon whom it foisted an $8 billion tax increase.

Anderson, now a candidate for the 12th Congressional District seat now held by Democrat John Barrow, voted to cut Delta’s sales taxes but voted for these sales tax increases on us in the middle class. Here we find Lee dining with George Bowen, the lobbyist who greased through the fuel tax exemption for Delta and Georgia Power.

Worse is the behavior of Georgia Power Company, who gave $395,000 to deluge us with pro-TSPLOST propaganda after the same legislation saved them $hundreds of millions. It is noted that said cost savings supposedly are given back to consumers via fuel adjustments to their rates, but how many citizens trust those calculations? This also came after Lee Anderson voted in 2009 for Georgia Power’s advance billing of $1 billion in profits, hidden as “construction costs.” We got double digit rate increases from that, too.

Yes, we voters are now going to have to pay Lee’s 14% TSPLOST sales tax increase on those double-digit, advance-profit charges on our power bills.

Here, the Georgia Gang, including former Augusta Chronicle opinion editor, Phil Kent, questioned the rush by Lee Anderson and others to pass the bill.

Lee could not be dissuaded by pleas of “Read the BILL, Lee!”

Anderson, a hay farmer, also voted for a $500 million a year hospital bed tax. How did he make a “No Tax Increase” pledge with Grover Norquist’s Americans for Tax Reform and vote for these tax increases? Can we believe his promises?

It was most frustrating for us in Columbia County to only be able to put up a few score “VOTE NO” signs, then go home to find pro-TSPLOST mailers in the mailbox.

I had to drive by scads of “Vote Yes” signs illegally placed in medians and rights of way, like this one:

I had to listen to broadcast appeals funded by these corporations who just got sales tax cuts.

Finally, I got a batch of signs from Augusta County Commissioner Joe Bowles, who courageously fought adoption of this terrible tax.

On August 21, we have chance to just say “No!” once again. This time it is a vote against legislators stupidly subordinating our Columbia County votes to those of ignorant and corrupt Augustans. This time it is a vote mindful that this dastardly TSPLOST tax begins to be collected January 1.

Just say no to Lee Anderson for Congress.

Lobbyists love him. The middle class groans under the burdens their orgies of money and excess we are left with.

Isn’t it time the people won one?***

KH

Related Stories:

TSPLOST Passes in CSRA Despite Columbia County Saying No

  By , , , ,

Originally posted on CityStink
Wednesday, August 1, 2012
Augusta, GA
By The Outsider

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

Bucking a statewide trend, it appears that the TSPLOST tax has passed in the 13 county Central Savannah River Area region. The latest vote totals as of 11 pm on July 31 showed a margin of 56% voting in favor and 44% voting against with a more than 6,000 vote spread. This is by far the best showing for the TSPLOST in all 12 regions of the state, where latest totals showed that the tax was failing in 9 out of 12 regions.

Perhaps the biggest repudiation of TSPLOST came in the  metro Atlanta region, where voters are rejecting the tax by a wide margin of 63% against and 37% in favor. This, after millions of dollars were poured into the Atlanta region by pro TSPLOST groups  for an ad blitz pitching the tax. Its failure in the metro Atlanta region will make things very complicated, since the law states that any region which does not pass the tax will have their state transportation matching funds slashed….and with metro Atlanta comprising nearly 50% of the state’s population, that’s a lot of money. You can now expect a barrage of lawsuits challenging the efficacy of TSPLOST now that it seems to have failed in 75% of the regions, including the states’s most populous metropolitan area.

The TSPLOST also failed in Coastal Georgia, which after metro Atlanta accounted for the most spending by pro-TSPLOST groups. In fact, Chatham County rejected the tax by over 57% despite the Savannah port deepening being a signature project touted by TSPLOST backers.

So why did it pass in the CSRA? 
By looking at the most recent vote totals, it appears that TSPLOST mainly passed here because of Augusta-Richmond County (the most populous county in the region) where it was approved by more than 58% of the vote with a nearly 6,000 vote margin. TSPLOST did particularly well in predominately African-American voting precincts in Richmond County. The tax found its softest support in West Augusta and South Richmond County precincts with a slight majority of those precincts rejecting TSPLOST.

The story was completely different in Columbia County where over 58% of voters rejected the TSPLOST.   The latest totals showed 14,358 voting against and 10,340 voting in favor. But even though Columbia County voters resoundingly  rejected TSPLOST, they will  still be taxed anyway. Lincoln County and Glascock County also rejected the TSPLOST. The nine other rural counties passed it, presumably because of the promise from politicians that they would be getting over $87 million in additional tax revenue from populous Richmond and Columbia Counties

Since this is a regional tax regime, Columbia County is tied to the other 12 counties in the CSRA region, including Augusta-Richmond County. Under the provisions of the tax district, Columbia County will be a donor county, giving up  over $23 million of its sales tax proceeds to other counties in the region. But under the TSPLOST regime Augusta/Richmond County will be giving away $63 million of its sales tax proceeds to other counties, which makes the overwhelming support there even more baffling. Columbia County will also now be married to what many political observers consider a corrupt and incompetent Augusta-Richmond County for control of transportation dollars.

Impact on the 12th District Congressional Race
Lee Anderson voted for TSPLOST in the Georgia General Assembly, and now he appears to be in a run-off for the 12 Georgia Congressional GOP nomination with either Rick Allen or Wright McCleod. Anderson defended his TSPLOST vote by saying he was only voting to give the people a say in the matter. However, critics charged that the regional vote was unfair and would subject individual counties to the tax even if their voters overwhelmingly opposed it at the polls. That scenario now seems to have been born out in Columbia County. All 3 of Anderson’s GOP challengers said they were against TSPLOST. Now there is speculation of whether there will be a voter backlash against Anderson in his home base of Columbia County because of the TSPLOST outcome.

Also in the hot seat is Columbia County commission chairman Ron Cross, who heavily promoted TSPLOST. Seeing as how it failed by such a wide margin there, his critics have yet another example to show  how the commission chairman is out of touch with the average voter in Columbia County. If there is any bright spot for Columbia County over the TSPLOST outcome is that it may lead to the overwhelming passage of a referendum imposing term limits on county commissioners and the chairman.

Now the CSRA region will have one of the highest sales taxes in the state, making it less competitive for business. However, neighboring South Carolina  retailers are likely to see a jump in business from TSPLOST. ***
Stay Tuned… more to come.

OS

Peas Lost to TSPLOST (video)

  By , , , , ,

Originally posted on CityStink
Monday, July 30, 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 his latest anti-TSPLOST video, Al Gray, explains how our buying power will be pea’d away if TSPLOST passes. Watch his video below.

Special Report: No RW Allen GuaranTEE?

  By , , , , , ,

Originally posted on CityStink
July 25, 2012
Augusta, GA
By Bradley E. Owens

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

Augusta Today member Dean Klopotic submitted a Georgia Open Records Request seeking the RW Allen, LLC (RWA) billings for the TEE Center related contracts they are performing. The Law Department of the city of Augusta issued a response which included RWA invoice number 24 representing costs through March 31, 2012. Our investigating team has since obtained RWA invoice number 26 from other sources in city government and turned the documents over to cost recovery accounting specialist Al Gray for analysis and review.

RWA boasts of having an “Open Books Policy” but their TEE Center project manager Jim Cely declined to allow us to visit their offices to view supporting documents to the billings obtained through the Georgia Open Records Request. RWA CEO Rick W. Allen, currently a candidate for Georgia’s 12th Congressional District, had previously pledged to allow Mr. Gray access to the billing detail records. Despite being assured they would cooperate, we were not allowed to see the documents, and instead, Cely gave instructions to direct inquiries to Augusta Administrator Fred Russell… the same Fred Russell who has displayed a pattern of withholding VITAL information from Augusta Commissioners on the TEE Center and its companion parking deck across the street.

The TEE Center Contract with RW Allen, LLC is a Construction Manager at Risk guaranteed maximum price (GMP) contract. Under a fast track, a cost plus contract with a GMP, the Construction Manager sets its fee, general conditions (overhead) expenses, and other costs necessary to construct a total facility.  These contracts are or can be comprised of multiple subcontracts and work with the CM (RWA in this case), self-performing portions as if they had been subcontracted. In other words, they can hire themselves to do certain parts of the job as the Construction Manager.

Once the drawings and design work is 75% complete the GMP was officially set at a price of $29,700,000 and accepted by the Augusta Commission. There have been two change orders (“change orders” are contract modifications which usually are increases in the cost of the fixed price cap due to unforeseen “changes” that affect the construction itself) executed which bring the total price to $30,113,215.  So as you can see, the agreed upon price of the TEE Center construction was $29,700,000.00 but due to the two “change orders” the final projected price tag (there could be more change orders before it is completed, so I say “projected”) is now a cool $30,113,215.

Since the more detailed supporting documents for RWA’s invoices (which are pretty vague) are not likely to be in the possession of the Augusta government and therefore open records accessible and the honcho over at RWA, 12th District candidate R.W. Allen, has already broken his pledge to allow us access to the documents (a politician breaking a pledge to the tax payer? SAY IT ISN’T SO!); here are the questions we would pose to Mr. Russell and to Program Manager Heery International to find out the details of these invoices for us, the lowly tax payer footing the entire bill of $30mil and change.

Has There Been Double Billing of General Conditions Costs?

Let’s be clear here, these are complicated contracts, but the billing is not if you are willing to bear with me and see the questions we are asking.

Article 7.4.1 sets out the components of the contract price and these are repeated in Exhibit A in the contract. to be paid by Augusta, so a cost has to fall into one of those two categories and be authorized by the terms of the contract to be billed. To cover the contractor’s overhead costs, called “General Conditions” in construction language, RWA put in a General Conditions Guaranteed Maximum cost of $1,082,670 in the contract and in Exhibit G.

The capped GC cost is described this way on page 56: Items that are included within the General Conditions Costs for which the Construction Manager is entitled to no additional compensation include without limitation:.. viii. “That portion of insurance GL and Auto Builders Risk and P&P bond premiums that can be directly attributed to this Contract for Construction”… ix. Fees and assessments for the building permit and for other permits, licenses, and inspections for which the Construction Manager is required by the Contract for Construction to pay.

Looking at the latest payment application available, on line 2 of the Form G703 appearing on page 2, we find an amount listed for General Conditions costs of $1,082,475, which is only $195 less than the stated limit in the contract. Augusta is making progress payments, which total $697,917 (less 5% retained by Augusta) through this invoice, based upon component invoicing and RWA labor charges. In addition to the GC costs, we found $167,585 charged on page 2, line 19 of the G703 schedule for P&P Bonds.

Based upon the contract having capped GC costs to INCLUDE the P&P bonds, separate invoicing in this manner appears to be a duplicate charge, especially since the contract also says this: “The overhead and profit component for any change includes the cost of bonds and insurance”, which seems to preclude the additional billing of P&P bonds separately in this manner. The P&P bonds for the subcontractors are in their OWN costs.

Besides the P&P bond issue, there is the same issue with the $48,961 of permit costs on line 18 of the payment request.

These two issues relating to costs billed separately that appear to be already covered by capped General Conditions total $216,546. It is recommended that these costs be reallocated against the capped GC costs of $1,082,670, or line 2 on the G703 billing schedule of values.

Extension of General Conditions without Required Change Order?

 

Accompanying payment request number 24 was a document entitled, “Augusta TEE Center Contingency Log”, which includes a $16,393 item labeled, “extended builders risk cost due to delays.” There was an invoice supplied showing the builder’s risk policy was being extended to October, 2012. The contract says this, “All adjustments in compensation or extensions of time shall be by change order (page 38).”

No change order was found to extend the duration of the project, so shouldn’t this charge be covered by the capped General Conditions that includes builder’s risk insurance?

A much more important and broader issue is whether RWA intends to collect extended general conditions for the approximately 6 months greater time until completion of the project, to include the more costly GC costs, like supervision. The project duration in the contract was set at 24 months, yet the project is on the 26th monthly billing.

Does the charging of builder’s risk premiums for project delays mean that there will be a costly claim for extended General Conditions at the end of the project? Will extension costs be continued to be charged against the contract contingency, instead of being authorized by change order, as the contract apparently requires?

Lack of Pricing Details Limits Change Order Price Analysis?

 

Augusta Today and City Stink contributor Lori Davis submitted a Georgia Open Records Request on another matter concerning the TEE Center kitchen equipment that was added to the RWA contract as Change Order 1, to increase the Contract Price to a total of $29,276,987. Included in the information provided  was the pricing from the subcontractor, itemized by equipment price, but unsupported by cost versus overhead and profit analysis of the pricing.

The contract says this in Article 15: “If and to the extent the change involves work of one or more subcontractors, the overhead and profit component for subcontractors shall be fifteen percent, and the overhead and profit component for the Construction Manager shall be seven percent 7 of the amount allocable for subcontracted work.”

Unless there is additional analysis not presented with the City’s response to the GORA request, how can RWA tell whether the 15% limitation on overhead and profit has been met with respect to Change Order 1? Is sufficient cost information being obtained on other project changes to meet the contract limitations on combined overhead and profit?

Construction Equipment Rentals in Steel Costs?

Within the supporting backup for Payment Application 24 for the steel cost category was an invoice to RWA for construction equipment rental. The contract has this inclusion within the definition of General Conditions costs: “xviii. Rental charges for temporary facilities and for machinery equipment and tools not customarily owned by construction workers.”

Since the equipment rentals seem to be within General Conditions (Overhead), wouldn’t such costs be covered by the allowed 15% overhead and profit markup allowed on work self-performed by the Contractor?

Summary

  1. Aren’t $216,546 of bond and permit costs separately billed also within the capped General Conditions expense in this contract?

  2. Did the billing of $16,393 for extending insurance coverage to October 2012 presage a claim for an additional number of months of general conditions expense, including Contractor Supervisory labor, and unforeseen costs? Without a change order, should this item have been charged to contingency?

  3. Is there sufficient cost detail provided by subcontractors to assure that contract limitations on maximum, combined overhead and profit can be verified?

  4.  Are construction equipment rentals separately billable from overhead and profit markups?

  5. Will Augusta review the contract to assure that all contingency and allowances are recaptured by the city at project completion on this major contract? Others?

We expect that the Mayor and the City Commission will assure that these questions are answered.***

B.O.


**Augusta Today members Al Gray, Lori Davis, and Dean Klopotik also contributed to this report**

 

**Below is the GMP Construction Contract between RW Allen Construction on the city of Augusta for the TEE Center:

RWA GMP Contract

TSPLOST Report: Don & Ron’s $87 Million Tax Give-Away

  By , ,

Just Dandy or Downright Irresponsible?

Originally posted on CityStink
Monday, July 23, 2012
Augusta, GA

By IndyInjun

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

A loose coalition of anti-tax and community activists has arisen locally to oppose TSPLOST, which is the chosen acronym for a proposed new 1% sales tax dedicated to transportation. This measure is Referendum Item 1 on the July 31 Georgia primary election ballot. If passed, the sales tax rate in most counties in the Central Savannah River Area (CSRA) increase from 7% to 8%, for a whopping 14.3% sales tax increase.

The funds collected from the new 1% TSPLOST in all of the 13 counties in the CSRA region would be dispensed in two pots. 75% of the money goes into designated, preapproved investment list projects, called the “Constrained Investment List.” Many, if not most, of these projects in the CSRA have long been on the Georgia Department of Transportation’s planned projects list to be built with motor fuel tax funds. For example, the extension of Riverwatch Parkway to Washington Road in Evans has been on the DOT planned list for a decade or more. Columbia and Richmond Counties are MPO’s (Metropolitan Planning Organizations) under the authorizing bill, the Transportation Investment Act of 2010, and will be empowered to use the new TSPLOST funds largely without DOT involvement.

The horse trading with the other 11 counties was thorny. As best can be told, the trade-off was to build the large investment list projects in Augusta and Columbia County early in the 10 years of the TSPLOST, while the Investment list projects for the rural counties are delayed largely to the last 3 years, carrying the risk that the funds will run out. The bill says that these projects are guaranteed to be built but provides no funds.

Dandy Don Loves Taxes

The other 11 counties are willing to be in this arrangement only by virtue of the 25% “Discretionary” Funds or Cash Pot. This 25% is set based upon a combination of road miles and population which vastly favors the rural counties.

How much money are Augusta and Columbia County giving up into the Cash Pot for the rural counties? An astounding $87.6 million! Augusta gives up $63 million and Columbia County gives up $23 million in cash! Proof of this is found in the spreadsheet that the CSRA Regional Commission provided, although it required extending some of the data and calculations to divulge the truth of the matter.

Don Grantham, Commissioner of the Georgia Department of Transportation Board for the Augusta Region, and CSRA Regional Transportation Roundtable Chairman Ron Cross were extremely generous with the “cash pot” funds to be doled out from their counties!

Why aren’t these figures being publicized? ***

IJ

 

CSRA TSplost Revenue Gains and Losses by County

Fox 54 Swallows Deke Bait

  By , ,
 

Friday, July 20, 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.

(Editor’s Note: The article this post is written in response to was originally posted at http://www.wfxg.com/story/19049904/commission-votes-down-tee-center-forensic-audit, but is no longer available on the Internet.)

 

George Eskola should be proud. In the run-up to the Augusta Commission meeting this Tuesday, there was a last-minute interjection of an accounting analysis by a party in the midst of the TEE Center Parking Decks controversy. George knew about it early. His wise years of experience said take the new gambit with a grain or two of salt.

George wrote:

“But this comparison is coming from Paul Simon of Augusta Riverfront, LLC, the company that owns the Marriott, not the city’s attorney who worked on the deal. ”

Precisely.

+100 for George.

Then there was a report by Jake Wallace of Augusta Fox affiliate WFXG.

Wallace seemed impressed by Mayor Deke Copenhaver’s cheap trick of having the city’s external auditor from the firm of Maulden Jenkins put on the agenda to give a positive report on the annual city FINANCIAL AUDIT soon after Augusta Today activist and City Stink contributor Lori Davis’ presentation in favor of a forensic audit of the TEE Center Parking Decks agreements and against approval the proposed parking deck management agreement that would have been the subject of the forensic audit. Wallace wrote –

“Mayor Deke Copenhaver agrees, saying the finance team received high praise at tonight’s meeting by an auditor for the 2011 audit, is the same team who worked the finances of the TEE Center deal.”

“They applauded our finance folks for doing such a great job with fiscal management,” Copenhaver says. “That’s the same team that put this deal together. Why would they do something different on the parking deck and the TEE Center than they did with the city finances?”

Wallace totally blew it.

A city financial audit only attests that generally accepted accounting principles have been met with respect to the city’s transactions. It does not extend to the point of questioning HOW the transactions come about or whether a contract is totally stacked against the city’s interests. That is the role of a forensic audit. After a flawed deck deal is executed, a financial audit will find everything to be just wonderful versus the standard of the flawed contract. A forensic audit would derive the answers of whether there are material controls deficiencies in contract administration and would seek to identify fraud in the execution and application of the management agreement.

Deke trotted out a financial auditor and Fox obliged his clever subterfuge by equating the annual city auditor’s report about finances with one about a much more in-depth audit of only a couple of complex transactions.

For another thing, the city’s finance team has had practically nothing to do with the deck agreements, as Augusta is using outside legal counsel, bond counsel,and even has gone to the extent of excluding the Convention and Visitor’s Bureau chief, Barry White, a figure who was integral to the early TEE Center presentations to the city commission and the city executive most attuned to the contract needs to be negotiated.

Wallace did not know that, or at least, did not report it.

Fox 54 came up short and looked amateurish in rising to the bait.

We are sure that they will get better, given a few more years around Augusta politics. It truly is a world all to its own.

This writer remembers George when he was an amateur, too.***

A.G.

Broken links:

[[http://www.wfxg.com/story/19049904/commission-votes-down-tee-center-forensic-audit]]

Cutting Through the Spin Over ParkingGate

  By , ,

Photo by Conor Luddy on Unsplash

Originally posted on CityStink
Friday July 20, 2012
Augusta, GA
By The Outsider

Al M. Gray, President of Cost Recovery Works, Inc. contributed multidisciplinary review techniques in support of this article. Cost Recovery Works is no longer in business, as of December 31, 2020.

Despite how some government officials and members of the local media have been trying to spin the events from this past Tuesday’s Augusta Commission meeting, the citizen watchdogs who have been leading the charge for more transparency and accountability in the ParkingGate debacle won two significant victories.

Lori Davis went before the commission to appeal to the conscience of city leaders to “park” a very lop-sided management contract for the $12 million publicly financed Reynolds Street Parking deck with Augusta Riverfront, LLC. As we detailed in a previous report, the lop-sided contract, that was drawn up by ARLLCs own attorneys (not those hired by the city) was riddled with loop holes and amounted to a blank check. To put it in simple terms, it was a bad deal for the taxpayers.

Earlier in the day on Tuesday we got word that there was some political maneuvering by Commissioner Jerry Brigham and Augusta Riverfront, LLC President Paul S. Simon, to try and ram through the contract at the last minute. This followed a finance committee workshop the previous Friday where a majority of commissioners said they were not prepared to vote in favor of the contract as it stood and wanted a thorough comparison of the deal with ARLLC and others that had been rejected by city administrator Fred Russell. City hired outside counsel Jim Plunkett was tasked by commissioners to provide that analysis. Many commissioners expected the parking deck management contract to be removed from the agenda for the July 17th commission meeting.

But surprisingly, early on Tuesday, a comparison magically appeared just in time for the commission meeting that supposedly said the ARLLC deal was $14,000 cheaper than one Ampco Parking Systems had submitted in an earlier bid. The only problem is, this comparison was drawn up by Paul S. Simon and Augusta Riverfront, LLC… the same folks who have been trying to get the lucrative parking deck management contract… hardly an unbiased source. Why didn’t Augusta’s hired outside counsel Jim Plunkett put together the comparison as he was tasked to do by commissioners at the Finance Committee work session the previous Friday? Paul Simon and Jerry Brigham probably thought they could catch commissioners off-guard like they did on February 7th, when a tentative management agreement was passed with similar last-minute political maneuvering. George Eskola, senior government reporter for WJBF news, pointed out the obvious conflict of interest in Augusta Riverfront, LLC providing their own comparison in his 5 pm report on July 27th. “But this comparison is coming from Paul Simon of Augusta Riverfront, LLC, the company that owns the Marriott, not the city’s attorney who worked on the deal ”

But this time things would not go in Paul Simon’s favor. The contract was tabled for the second time in a month after Commissioner Jerry Brigham announced that he did not have the votes lined up to pass it. So now it will go back to the drawing board… where hopefully the taxpayers can finally get a more favorable deal, one with caps on what ARLLC can bill the city  and minus all of the loopholes that gave Paul Simon practically a blank check courtesy of the city of Augusta. This is what we have been asking for months… to halt this hideously bad contract from being approved, and to get a better deal for the taxpayers. The results from Tuesday’s commission meeting now provide that opportunity.

But to listen to some in the local media, particularly a struggling weekly print tabloid, the results from Tuesday were somehow a rebuke of Lori Davis and a defeat for the citizen watchdogs at Augusta Today and CityStink.net. We have to wonder… what meeting did they attend? As we said, Paul S. Simon and Augusta Riverfront, LLC were unsuccessful in their last minute efforts to ram through a lop-sided management contract for the parking deck. Lori Davis, the citizen watchdogs, and the taxpayers of Augusta won that day.

Some in the media wanted to focus all of their attention on the vote to halt progress on the forensic audit looking into the questionable deals associated with the parking deck. Though certainly the circumstances and the evidence uncovered thus far warrant a full forensic audit, it has hardly been the primary goal for the citizen watchdogs like Lori Davis who have been investigating this matter since October of last year. The main goal has always been to make sure that the taxpayers get a better deal and a better return for their $12 million investment in the deck. This also means assuring that the city gets control of the land free and clear of all bank liens. The results from Tuesday’s meeting were a step in that direction.

The story that some in the media have been completely missing over the forensic audit is the hypocrisy of its most vocal opponents on the commission who have been complaining it is just a waste of taxpayer money, all the while these same people are more than eager to sign over a blank check to Paul Simon and Augusta Riverfront, LLC in a series of bad deals that would pay for many forensic audits.

However, something rather stunning happened at Tuesday’s meeting that also seemed to go unnoticed by some in the Augusta media, particularly the folks at that struggling weekly print tabloid. In lieu of proceeding with the forensic audit, commissioner Joe Jackson made a substitute motion to forward this whole debacle over to the District Attorney and the GBI. That motion passed with an overwhelming majority. Wow. Whatever Jackson’s motivation, he is on to something here. We have been having to go through a cumbersome and expensive process of initiating numerous government open records requests to uncover the evidence in ParkingGate. Jackson’s move could now give government watchdogs and investigators unfettered access to the volumes of government documents that exist on these deals. Again, this is yet another win for the citizen watchdogs and taxpayers.

Commissioner Jackson also suggested that perhaps we should “open Pandora’s box” and look into the deals associated with the Laney-Walker redevelopment project. We could not agree more, and we have also been at the forefront of that investigation, initiating numerous open records requests that have revealed more waste of tax-payer dollars and possible fraud in that massive project.

These are all quite major revelations in this story, and a bit of a vindication for government watchdogs like Davis, but the narrative the folks over at that struggling weekly print tabloid have been attempting to pursue is one of ridiculing Davis over the childish behavior and disrespect shown by some government officials. In particular, the writer at the tabloid mentions an incident at the Finance Committee work session last Friday, where Paul S. Simon tried to belittle Lori Davis and us here at CityStink.net for our investigative reports into the parking deck debacle. Simon called us the “bad press.” Well, we will gladly wear that title as a badge of honor, coming from Simon.

We of course wouldn’t expect him to rave about our reporting, as we have pretty much thrown a wrench into his grand plans to get a lop-sided management contract for not just the parking deck but also the even more lucrative TEE Center. Mr Simon probably never expected anyone to question these deals, better yet dig deep into them with open records requests. They have become accustomed to a largely complacent local media, like the folks at the struggling weekly print tabloid, who find these matters just “too complex” to pursue. This has allowed Simon and the folks at Augusta Riverfront, LLC near free reign in Augusta to get pretty much whatever they want courtesy of the taxpayers. This lead to them becoming complacent and feeling emboldened, and always looking for more. They never saw us coming.

The folks over at that struggling weekly print tabloid thought it was funny that some Augusta commissioners snickered when Paul S. Simon admonished Lori Davis and us here at CityStink.net for an article we did a couple of weeks ago that showed how the management contract under consideration with Simon’s company was riddled with loopholes that had Augusta on the hook for maintenance and equipment costs for the entire 640 space parking deck, when Simon’s company would still own and control the entire ground floor. We rightly pointed out this did not appear to be a fair deal for the city. But Simon took to the podium last Friday to complain,
“You see all this stuff on these blogs that’s just wrong… they had me on a little street sweeper.” This prompted giggles from some commissioners in a scene that the weekly tabloid described as a “bunch of fraternity brothers” and according to the tabloid, this surely must have been embarrassing for that pesky Davis woman.

Notwithstanding the not-so-subtle undertones of sexism in all of this, the point that was also completely missed by the weekly tabloid is that amid all of these snickers from the good-ole-boys club, no statesman emerged to call Mr. Simon out, instead they fell over themselves to kiss his ring. Here was a man coming before them acting as though his company was doing Augusta a huge favor by allowing the city to use the Marriott brand on the $12 million parking deck the taxpayers had paid to build on his land. Simon’s company not only got a wonderful $12 million new parking deck courtesy of the taxpayers, but also a $38 million gift in a brand new convention center attached to his hotel, giving his company exclusive use of the facility. And we pay him hundreds of thousands of dollars a year for this honor. And now he was coming before the commissioners pretty much demanding that they sign off on a hideously lop-sided management contract that added more insult to injury. Talk about looking a gift horse in the mouth!

And Lori Davis should be made to feel humiliated in all of this? If anyone should feel humiliated, it’s the city leaders who have allowed themselves to be taken for such a ride. You build a $12 million parking deck on land you don’t even own, and even worse it has over $7 million worth of bank liens on it. You build a $38 million convention center without an executed CORE agreement and also on a parcel of land still owned by Paul Simon’s company. Maybe the snickers should have been directed at themselves. Surely, Paul Simon was probably saying “you suckers” under his breath.

But at the end of the week a majority of commissioners saw the bad deal for what it was and put a halt to it. Good for them. Commissioners Wayne Guilfoyle, Bill Lockett and Mayor pro-tem Joe Bowles have shown particularly outstanding leadership on this matter and should be applauded by the taxpayers. Sure, the buildings cannot be unbuilt now, but commissioners can now see to it that the taxpayers get the best return on their investment, and that has always been our primary goal from the beginning. People like Lori Davis should feel proud and the taxpayers of Augusta should thank her for her courage and perseverance in this ordeal.

And despite the ridicule from the folks at that struggling weekly print tabloid, there have been others in the local Augusta media who have provided commendable coverage of this story. Particular accolades go out to George Eskola of WJBF, Chris Thomas of WRDW, Renee DeMedicis and Doug at WNRR 1380 AM, Ben Hasan’s Urban Pro Weekly, The Metro Courier, Austin Rhodes and Scott Hudson at WGAC.

A free press is an integral part of any democracy, holding our government accountable to the people. The role of a free press is to cut past the spin and propaganda to get at the truth. This is a duty that some in the Augusta media obviously still believe in. Some though, like the folks at that struggling weekly print tabloid, seem to think it is more important to ridicule those of us who still believe in that principle. As they belittle the government watchdogs who have been breaking the big news stories over the past 8 months, perhaps it is out of frustration, as they see the writing on the wall and their role in Augusta’s media world slipping rapidly into irrelevancy. Oh and by the way, we can handle the ridicule. If we are making this many people angry in Augusta’s establishment, then we must be doing something right.***

OS

Related Stories:

Al Gray: Vote NO to TSPLOST (Video)

  By , , , ,

Originally posted on CityStink
Thursday, July 19, 2012
Augusta, GA
From CityStink.net Reports

In his latest video, Al Gray, of ArrowFlinger Reports and a CityStink.net contributor, explains why it is so important for Georgia voters to defeat TSPLOST on the July 31st General Primary ballot.

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 Explains Why TSPLOST Must Be Defeated (Video)

  By , , ,

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.