Category: Aurelius Principle

Columbia County B.Y.O.B. Finances

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OPINION by The Arrowflinger

What you are about to hear in this poor quality audio recording is the last three minutes of The Austin Rhodes Show of Friday, May 18, 2018. Your arrowflinging protector shook things up, more than a little, one might think.

When GB&T Bank Board members Rick Allen and James G. Blanchard were mentioned in the present tense, it was in the context of a meeting with law enforcement several years ago, before the bank merged with South State Bank and that Board of Directors was disbanded. Also, neither was a voting member of the Board with management oversight.

As to former Columbia County Commissioner Scott Dean, who was the acting chairman of the county finance committee, he actually did not object AT THE AWARD MEETING, but just listen to what he said in making the astounding motion to let Ron Cross and Charlie Allen vote!

Dean’s conviction was on charges unrelated to this banking vote. Judge Blanchard being the judge who put him in prison and would not grant a retrial, despite recanted testimony, is more a demonstration of how weird events get twisted in Columbia County. The Arrowflinger tried to get Judge Blanchard, a former family business partner, to discuss this ugly banking matter back in 2014, but somehow we had trouble connecting. There is more there, perhaps, for a later date.

With respect to Edward J. Tarver, he was a member of the GB&T Audit Committee in 2008 and 2009, before becoming the US Attorney on December 17, 2009. Tarver had audit responsibility for the 2008 Financial Statements, which later became the basis for the Columbia County bank selection in April 2010. About a month before his nomination, The United States Securities and Exchange Commission sent the GB&T Chief Financial Officer Darrell Raines a letter expressing questions, possibly requiring a restatement of those 2008 financials.

Imagine that! A sitting US Attorney’s immediately preceding bank Audit Committee work was questioned by the SEC! None of this seems to have dawned on Columbia County Finance. Or did they know? Or did one of them know?

As for Rick Allen, perhaps he can confer with his cousins, who owned 40% of GB&T, and his brother, the GB&T shareholder who delivered the bank a timely $100 million cash infusion, and draft a banking bill like he wrote about in the Augusta Chronicle last year. We have the perfect title. We can call it the Rick Allen B.Y.O.B bill…..BAIL OUT YOUR OWN BANK bill.

-AF

The Mary Davis Sand and Gravel Company

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By Arrowflinger Al

Remember the good old days out here in the rural counties when your commissioner could rock, grade and maybe even pave your driveway if you supported him? Well, those days are gone out here because our commissioners don’t want to go to prison. Now, there is hope and help from our good neighbors down in Augusta, with their new Public-private partnership we are calling the Mary Davis Sand and Gravel Company. Call Augusta Mayor Pro tem Davis at (706) 821-1831 and you may be able to arrange what one of my neighbors got here in Lincoln County – men, trucks, trailers, supplies, fringe benefits, and heavy equipment expended fixing a private road. All for FREE!

No need to worry about tipping the Augusta workers, either because they get the greater of 3 months severance pay or a full retirement if they get caught.

Even getting 300 tons of stone like THIS isn’t impossible, because the Augusta Landfill down on Deans Bridge Road has stockpiles of everything you need – sand, gravel, screenings, surge stone and even rip rap. Those can be loaded up and sent out to us through the same gate that the equipment loaned to my neighbor was.

If you look at the pictures of my neighbor’s Augusta-built project, there is even drain pipe furnished with the deal you get from Mary Davis.

You don’t even have to pay a registered contractor with expensive insurance, permits, a business or contractor’s license in your county, either. Those gifts give a pretty big bonus to your free work value from Mary Davis.

If the equipment from the landfill is tied up and can’t get to you, then the nice sheriff down there has a guy who will meet your equipment needs with no delay, stationed at the shooting range next door.

Augusta taxpayers and residents, you do not qualify for this program, so don’t attempt to call. You give but cannot receive.

We out here in the sticks thank you for your generosity and the kind treatment we get from Mary Davis Sand and Gravel.

Mary rocks our world.

-AG

Double-crossed at the Doubletree, Augustans Got a 22% Property Tax Increase

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When your humble flinger of arrows climbed into his pickup truck one afternoon in the late summer of 2010, it was not dreamed that the trip was worth $4 million to $5 million to the people of Augusta Richmond County, Georgia, yet it was.

The Georgia General Assembly had empaneled a Tax Reform Council, chaired by former Atlanta Olympic Games chairman A.D. Frazier, and charged it with recommending a tax reform plan. Earlier, in 2008, the legislature had wisely rejected disgraced House Speaker Glenn Richardson’s G.R.E.A.T. (Georgia Repeal Every Ad valorem Tax) plan, but still held the notion of “tax reform” dear, spurred on by the Georgia Traditional Manufacturers Association and others. Manufacturers wanted relief from Georgia’s sales-tax-exemption-limiting “Direct Use” requirements. Agricultural interests wanted sales tax relief, too.

The Tax Reform Council met in cities across Georgia. The meeting in Augusta came within 3 weeks of a furious Republican Party runoff for governor, which diverted attention from what was at risk. The Council convened at the Doubletree Hotel on August 30, 2010. A number of presenters had prepared remarks which were posted on the Tax Council website. This writer had not come to speak, but rose and gave an impromptu talk in opposition, based upon the enormous revenue loss that appeared to be in the making, including a critique of surviving elements of G.R.E.A.T. A sitting member of the Georgia House of Representatives, Don Parsons, was not paying attention enough to catch the name and dismissed the talk as uninformed.

The frightening thing was that the Tax Council withheld its report, despite promises it would be published in November, until the start of the 2011 session, and the stated intent was for the plan to rocket through the General Assembly for a straight “up or down” vote.

The Augusta presentations included one that tipped off how draconian the sales and use tax losses would be for Augusta. An email to a key member of the Augusta Commission warned of the losses. Another to an organization promoting the bad tax deal laid out the reasons that killing it in 2011 were good.

Taxreformwarning_Page_1Tax Reform 2011 Killed_Page_1Lobbyists didn’t care.

The Augusta Chronicle reported, “Twice panel members asked how to replace the revenue from new tax breaks such as elimination of the inventory tax. John Krueger, senior vice president of the Georgia Chamber of Commerce, replied that he hadn’t polled his members about that.

“To be honest, I really don’t have an answer to that,” he said.”

The next year tax reform returned and passed. Not one of the location legislative delegation voted against it, not even “conservative” Representative Barbara Sims or Senator Bill Jackson. Just as night follows day, the tax losses hit Augusta Richmond County so hard that in 2014 the Augusta Commission had to pass a 22% property tax increase to compensate for them.

The Augusta Commission got the blame, but the damage was clearly inflicted by the General Assembly, with the local delegation going right along with it.

The sales taxes given up were were being passed on to purchasers of the manufactured goods outside of Augusta, Richmond County, and now are being replaced by your property taxes, if you live in Augusta-Richmond County. The manufacturers were not likely to leave Augusta over taxes they had been paying for years, and “tax reform” means that new businesses won’t be paying new taxes, either. Theories and subsidized jobs excited the politicians, but this was a DEAD LOSS to the people, if one looks at the only thing that counts with revenue – CASH FLOW!

The entire progression of events might not have turned to the public’s favor, but it was a wonderful chance to demonstrate how The AURELIUS PRINCIPLE works to identify millions of dollars of savings to clients who might just be interested in saving those millions rather than paying them out. Cost Recovery Works, Inc. has used these techniques to stunning effect for clients many times, and the tax reform participation showed how they work to potentially effect tens of millions in savings.

Millions of dollars in savings come from projects like this one – Just not for the poor, tax-besieged citizens of Augusta.

Thank your politicians.

GOP Cookie Jar Lid Slams on Rep. Jodi Lott

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LottJodi4879

The November 2014 race to fill Georgia’s House District 122 seat, vacated by retiring Representative Ben Harbin of Evans, was the ugliest, most hotly contested election in the modern history of Columbia County. It saw 2 months of nonstop attacks by radio station talk show host Austin Rhodes on hapless candidate Joe Mullins conjoined with the collapse of the campaign of departing Columbia County District 3 Commissioner Mack Taylor. Taylor’s efforts became mired in a nasty war with Mullins, complete with subterfuge, private investigators, and backdoor conniving with the radio talker. Columbia County, sick of the carnage, chose political newcomer Jodi Lott in the December runoff.

Representative-elect Lott was probably giddy with excitement still when she was sworn in this January. Her refreshing enthusiasm, undiminished by the grinding reality check of public life, was apparent to everyone in the area. Her primary campaign issue, a “fairtax” (a sales tax) to replace the state income tax, seemed unstoppable in the Georgia House of Representatives, as leadership and the membership voiced support.

Like the rest of us, Jodi Lott found the meaning of “lip service,” that when grizzled politicians like House leaders move their lips, you can count on it being in service to a lie. In this case her treasured tax relief met uncompromising doom at the hands of Governor Nathan Deal, who cited the danger that moving from an income tax to a sales tax would pose to Georgia’s burgeoning film industry, which heavily benefits from income tax credits. The House leadership beat a retreat, citing the futility of going against the governor’s wishes.

That is the “official story.” Here is a much more accurate explanation. The reason that the citizenry of Georgia will never see their income taxes cut, or replaced by a sales tax, is that other income tax credits have been a back-door, almost totally-unaccounted for, stream of public funds to connected political donors from the Republican hierarchy in the legislative and executive branches. They give away income taxes that have to be made up by increased income taxes on us. No income tax means that the payola scheme dies.

Our City Stink/Agraynation.com collaborative effort uncovered the scandal in 2012, during investigation into the details of the Magnolia Trace subsidized housing development uproar. After the public fury, this writer had traveled to the Georgia Department of Community Affairs (DCA) offices and spent an afternoon pouring over records of the Magnolia Trace income tax credit applications in the company of DCA attorney Phyllis Carr. The review did not uncover any smoking guns assignable to Columbia County Officials, but found a huge one wafting smoke toward the Georgia Republican Party and its senior officeholders in government.

You see, the availability of income tax credits, especially the low income housing tax credit, had been around for years. Most of these credits expired unused. That was until Missouri based Affordable Equity Partners got measures through the Georgia legislature allowing the credits to be exchanged, marketed and sold to taxpayers, who could use the tax credits.  Affordable Equity and its sister Capital Health Management, Inc. funded a bevy of GOP-beneficent PACs and made direct contributions to nearly all of the important party office holders. To date, Governor Deal has received $10,000, House Speaker David Ralston has received $9,500, and Lieutenant Governor Casey Cagle has received more than $17,000 from this stable of companies and related PACs. The GOP, its incumbents in the legislature, and other supporting PACs have received another $240,000.

The Magnolia Trace affair was also a scandal in its approval process and the political donation largess was a deciding factor for approval, in this writer’s opinion. How widespread are these failures and malpractices by DCA and how much is it costing the people of Georgia?

Representative Lott and tax reformers, take note! To get tax reform for the people the path is directly through your leaders’ hefty campaign finances.

Let’s see if the candidates now running for Senate 24 and House 123 seats on passing a “fairtax” have that much tenacity.

RW Allen’s Guaranteed Money Pits

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IMG_4374Owners like to use a contract delivery method called “Design Build” when they don’t know what the heck they are building, don’t want to take the time to design it before bidding it out, or have a site with too many unknown conditions.  Since they don’t know these things they put a fig leaf of protection against unlimited costs called a “Guaranteed Maximum Price” or GMP. Even in commercial or industrial construction, supposedly knowledgeable in cost controls and with fewer unknowns, GMP contracts are a challenge to administer, because the assumptions the contractor gives in quoting a GMP generally last only days or weeks. Owners would be better off with a pure cost-plus contract with great controls, but the owner’s internal politics command at least a fiction of a fixed price.

Imagine trying to catch a butterfly in a windstorm – that is how elusive the “guarantee” becomes.

In government there is no better money-hemorrhaging device than these contracts, hence perhaps GMP should automatically be understood by citizens as being “Guaranteed Money Pit.”

The City of Augusta, Georgia loves to squander money using GMP contracts, having thoroughly embarrassed itself with the things. Augusta built a $30 million Convention Center across land the city didn’t own, and then had to pay for it with Kitchen Equipment added by change order to a “guaranteed” price, spent about $50 million on a Municipal Building Remodeling that was supposed to cost $20 million, mostly covered by another GMP contract, and built houses in the Laney Walker district with maximum-price, not to exceed contracts that never were adjusted to actual cost.

There were only three finalists selected by Augusta for the Old Green Street Library remodeling, and two of the three had “Allen” in their name. The low bidder who didn’t have “Allen” in its name and who bid on the whole project in its bid, with a Guaranteed Price for all of the work, somehow didn’t get the award. RW Allen, LLC was awarded the work on a piecemeal basis, destroying any figment of a guarantee, in this writer’s estimation.

John Allen, nephew and contributor to Congressman Richard W. Allen, is a principal in the Allen-Batchelor firm, which was also on the finalist listing.

District 8’s Wayne Guilfoyle said it best, “If all three firms are proposing this project, the following including the proper scope, met the required schedule and fully capable of completing the RFP, why are we selecting the highest bidder?” Then later Commissioner Guilfoyle said, “So we’re approving something we don’t have a clue, only a partial.”

It must be nice to be RW Allen, LLC, and to have Augusta push you into yet another money pit where nothing is guaranteed but more profits.

No Opting Out of The Greatest Transition

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You got your demons, you got desires, well I’ve got a few of my own – Don Henley

Four years ago, a loose coalition of citizens came together to bring a powerful blend of research, online publication, media presence, and reform to Augusta, Georgia and East Central Georgia. One started a blog named City Stink, that moniker being a statement of admiration for long-time Augusta Chronicle columnist Sylvia Cooper and her column City Ink, yet impishly labeling the town as the source for all manner of unsavory things. Augusta wasn’t the sole target, either. The archives of Agraynation are amply populated with the City Stink posts, which retain power and utility for change.

As with all human endeavors, members grew weary, lost stomach for the political idiocy, and allowed personal differences to intercede in what was a wonderful community effort. During a nearly two year hiatus, individuals in the group ventured out on various initiatives, successfully defeating SPLOST 7a in Augusta and forcing SPLOST 7b proponents to slash waste, while promising reforms. Members of the Facebook groups Augusta Today and Augusta Political Watch, along with old participants in the City Stink effort, have used the interruption in the fray to observe what transpired in the vacuum and how positive developments proceeded from those action-filled 30 months.

The methods were proven. Mistakes were made, but those were instructive. Glenn Frey, the late Eagle and co-writer of, “One of these Nights,” said, “We all have our dreams, a vision we hope will come true someday. When that ‘someday’ will come is up to each of us.” Yes, our demons and desires got in the way of continued success, but the need for action has never been greater.

America has lost nearly every institution with direct responsibility to control financial matters and the Rule of Law. The foundation of social stability is, for all practical matters, dead. The Accountants have abandoned financial standards that protected us for decades. The Lawmakers have rewritten the Law to legalize fraud. The Ministry has thrown, “THOU SHALT NOT STEAL,” out of the Ten Commandments. The Bankers have destroyed one of the two functions that make the United States Dollar, “money,” and are on the brink of killing the other. The Media have been either silenced or captivated.

We have the tools to overcome it all. The Augusta reformers proved several important techniques and strategies. As great as the challenges are, the technology and methods are here to overcome them all. All that is missing is desire to make it happen.

Laughter is the best medicine and there are bounteous sources of outrageous humor that only need a little attention to have everyone laughing on the way to restoring our cities, counties, states and America. We are in the midst of the greatest transformation and transition in 400 years, if not all of human history.

“Agraynation” perhaps sounds a lot like “aggravation” to some. The subscribers list is stale, yet there are many in the community and state included in the automatic notification feature. Posts may be coming faster than you like via your email account. If so, please UNSUBSCRIBE if you get one notification too many. Please accept my apology if notification that accompanies this post is that, “one too many.”

Thanks to everyone for you encouragement, support, and participation. And… … … welcome back to the fray.

– The Arrowflinger

Equal Protection, Equal Accountability

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Comments of Al M. Gray to the Augusta Commission
Equal Protection, Equal Accountability
March 1, 2016

Mayor Davis, lady and gentlemen of the commission, thank you for the opportunity to speak today.

The baseball great Yogi Berra once said, “If you come to a fork in the road, take it,” but after its last two meetings perhaps this body should stop, back up and try another fork before the wheels come off of Augusta’s government like one of those KME firetrucks. Citizens, officials, and observers far and wide have been taken aback by votes to remedy a pay-increase scandal which represents a horrendous breach of Constitutional equal protection for the one employee, and the simultaneous dismissal of equal accountability for three others, who arguably had more responsibility.

The vote, and particularly the commentary during the last commission meeting, filled me and most observers with dismay, not just because of the ugly tone, but because the transparency so loudly promised during the SPLOST campaign is obviously dead. A citizenry who saw its garbage collection service cut in half now sees, yet again, tomfoolery to shift money between accounts to cover benefits to the downtown. They see the time-consuming machinations this administration has undertaken to do it during a time in which new SPLOST controls were supposedly a priority.

The biggest scandal in Augusta history – the financially ruinous TEE Center/Laney Walker Development deal – wasted more $tens of millions than a convention of con artists could dream up. The principle TEE contract required extensive records to be kept until the year 2020, yet neither side of the ugliness of the last 2 weeks wants to empower Augusta by learning from its mistakes there. One faction wouldn’t want it out during the state Republican Party Convention at the Convention Center out of fear of embarrassing party officials and the city. The other seems to want to maintain the sloppiness to get tens of millions more in loot with assertions of, “it’s our turn, now”, or, “we are getting our share.”

Politicians like to create a façade of controls to hide the looting, but not controls to stop the looting. With the TEE Center, Augusta wound up with the daisy chain of “expert” controllers, costing a combined $1250 per hour, who controlled almost nothing and rubberstamped nearly everything. The powerfully-written construction management contract that Augusta won was turned into mush at their hands. Why?

Another Yogism by Berra– “It is Déjà vu all over again” – fits my 40 year odyssey out of Augusta, back, and now into this chamber. The mid 1970’s found me at the Labor Department in Augusta working to administer the old 13 county CETA employment programs. Fury erupted among the mostly black program management in Augusta that Columbia County had preselected an overwhelmingly white contingent of ineligible folks, but then came the embarrassing find that Augusta’s enrollees were mostly black ineligible folks.

A poor, blind, black woman with a young lad in tow came into the Program Director’s office to see the Reverend F. Francis Cook. “This is my grandson, Jonathan, who sees about me, the best he can, but he needs one of those CETA jobs you all are handing out,” she said. Deputy Director Cook was in tears. There were no jobs left for the eligible and deserving grandson. He got crowded out by black politics. F. Francis Cook made sure we quit running a program for cronies, to make room for his people and for ALL people.

Yes, you can use the system perfected by the last administration to loot the people and discriminatingly spread $millions, but, “They did it, and we are, too!” makes a twisted concept of equal protection, while hurting the wrong people -people in your community.

What happened over the last two weeks destroyed confidence that this commission desires the promised transparency and reform. Choose another fork, one of real reform; this one is a dead end for Augusta.

Thank you.

Here is the video

Mother (of) Goofs – The Convention Center that Rick Built

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This is the Convention Center that Rick built.

This is the parcel

That lay under the Convention Center that Rick built.

This is the Center Manager/Owner

That had the parcel
That lay under the Center that Rick built.

This is equipment the partnership deal said would be paid for by

That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the Administrator

Who worked with Rick to bill the city for

That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the lawyer who looked in vain for the city commission-executed PARTNERSHIP CHANGE

Permitting

That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the Architect

Paid to prevent contracting snafus
Who got excluded from reviewing the purchase for which

That lawyer found no partnership change to allow
That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the land right

Augusta found it had under its Convention Center after

That Architect noted his exclusion from the purchase review that might have stopped
That which the lawyer found no partnership change to allow
That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the Manager/owners parcel value

for which Augusta was forced to trade the equipment to use its own building
on
That empty land right Augusta found it had after
That Architect noted his exclusion from the purchase review that might have stopped
That which the lawyer found no partnership change to allow
That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

These are the $8250 in 1, 2, 3, 4, 5, 6 campaign contributions from the Center Manager/Owner

Rick got after buying

That equipment value it became necessary to trade for
That empty land rights Augusta found it had after
That the Architect noted his exclusion from the purchase review that might have noted
That which the lawyer found no partnership change to allow
That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

This is the rival donkey in Congress grinning like a mule eating briars

That Rick got those campaign contributions from the Center Manager/Owner seeing
That equipment value it became necessary to trade for
That land right Augusta found it had after
That Architect noted his exclusion from the purchase review that might have noted
That which the lawyer found no partnership change to allow
That Administrator to work with Rick to bill the city for
That kitchen equipment that was going to be the cost of
That Center Manager/Owner
That had the parcel
That lay under the Convention Center that Rick built.

Intimidation in Evans?

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During the recent look at Columbia County Georgia’s controversial 2010 Banking Services Request For Proposal, which was awarded to Georgia Bank and Trust, a bank in which two county commissioners held stock and a third is now President of the bank, Ms. Leanne Reece was seen at the County Commission meeting accompanied by a young lad taken to be her son. You can see the boy in this video.

His presence was enough to change the topic of the presentation that night from Banking Services to the TIA 2010 scandal, because there was no desire to pressure his mom in front of him.

It is a shame the county commissioners aren’t so forgiving when it comes to applying pressure to county employees to get an intended outcome.

The banking RFP seems to have gone through the entire process up to a week or so prior to the meeting as Bid Title: Banking Services for Columbia County, GA Board of Commissioners Bid Number: 2010-005 but was on the Agenda April 20, 2010, the fateful night that the commission awarded the contract, as RFP 2010-005 Banking Services for the County and Water Utility.

Why is the title change potentially significant? Based upon the submissions by responding banks, the evaluation team only recommended Georgia Bank and Trust for the Water Utility accounts, county accounts the bank already had. Finance Director Reece was one of the evaluators and had even noted that the apparently winning bank based upon the evaluation, First Citizens Bank, had offered a 1% interest rate minimum. She wrote there was “no floor” in the GB&T proposal, an odd statement since GB&T is shown to have offered a floor of 0.75%. Can it be that was true with the original submittals, since replaced by altered documents? With this gang of manipulators, who knows?

If she was that attuned to the greater interest earnings potential of First Citizens, why would Director Reece go along with the lesser proposal based upon a speculative analysis from county bond underwriter Jeffries?

This entire affair reeks of pressure put on a professional woman with a family by powerful men with control over her job.

You have to hope that job isn’t in jeopardy for yielding to human fear.