Category: Public Policy

Politics, public administration, law, regulation, banking, and property rights

Cutting Through the Spin Over ParkingGate

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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

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Al Gray: Vote NO to TSPLOST (Video)

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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)

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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.

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.

 
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Behind Closed Doors, An Attitude Adjustment

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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.

Signs of Desperation for the Tax Hikers

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Money No Object to Ram T-SPLOST Down the People’s Throats
 
Originally posted on CityStink
Saturday, June 23, 2012
Appling, Georgia
Hwy221

The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.

From the $8 million Lobbyist Shill Group ConnectGA2012, birthed to pitch the Transportation ‘Investment’ Act, to the various tax-loving Chambers of Commerce cheerleaders, the “New Jobs!” cries from Helen to Hahira sound like some obsessive mantra, the people of Georgia have never seen a slicker effort to separate them from their money than from these TSPLOST salesmen.

With a little effort, salesman-in-thief Nathan Deal almost begins to look like Eustace Haney from Green Acres (go watch the old bit with Mr. Haney’s Airplane Service, from Economy Flight to Washington, Season 4 Episode 19). When old Nathan came back from Congress, pursued by an ethics investigation, yet elected in a landslide over Roy Barnes, he was encouraged to think that Georgians are all rubes like Sam Drucker and Oliver Wendell Douglas.

If we buy off on his TSPLOST scam, well maybe we are past all hope.

Take a gander at what folks headed west on Washington Road (Highway 104) have been treated to starting this week. Scarcely 100 yards apart, with no visible ROAD WORK between, are two signs like this, one on each side of the road.

 

For what purpose are they there?

Based upon the positioning of these signs and the obvious lack of road improvements around, our sales tax dollars are only at work buying loudly colored signs pitching more sales taxes.

These people are shameless in their manipulative hijinks aren’t they?

The sure sign that we see is very clear – COLUMBIA COUNTY HAS MORE SALES TAX MONEY THAN IT NEEDS!

TSPLOST? Let’s make that into the bug-on-a-windshield thing it sounds like.

Just say NO! to TSPLOST!***

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Al Gray Warns Rural County Leaders About ‘Shameful’ TSPLOST

Al Gray Warns Rural County Leaders About ‘Shameful’ TSPLOST

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Originally posted on CityStink
Friday, June 22, 2012
Lincolnton, GA
By Al Gray

The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.


Below is a presentation by tax activist Al Gray before the Lincoln County Commission on June 14, 2012, warning county leaders about the “shameful” TSPLOST and its disastrous effects on the region, especially small rural counties like Lincoln, which can be easily outvoted and forced into this abominable regional government with little to no representation.

*Click Video to play (Fast forward to the 1:20 min mark for Mr Gray’s remarks)*

*Below is the text of Al Gray’s remarks to the Lincoln County Commission concerning TSPLOST* (Graphs and charts referenced in the video are included below)

Chairman Johnson and Gentlemen of the Commission, thank you for allowing me to speak tonight. I have come to sound a warning about the proposed new 1% Transportation sales tax that comes before voters July 31st. Frankly, in all the years following public policy I have never seen anything this shameful.

The greater shame is on this county’s legislators – Bill Jackson, Lee Anderson, and Tom McCall for springing forth such an assault upon the people of this county. The bill that gave rise to this abomination was called the Transportation Investment Act. This bill set up a regional transportation roundtable for 13 counties, including Lincoln County. While it is true all had input, the law set up an executive committee of 5 to have the final vote for the 13 counties. They set it up so that Lincoln County is forced to be in this whole new level of regional government, whether we vote to pass or fail, so that our votes are diminished.

This is taxation without representation. Worst of all they committed EXTORTION against us all, by denying state funds if we say, “No!” Beyond this, this is a 14.2% tax increase that they swore to never vote for. Nor were any options even offered, like dedicating the 1% to our county.

Yes, the shame is upon them and tonight I come to ask you to stop embracing this nonsense lest you bring greater shame on yourselves and the Chamber of Commerce, a group that risks its reputation by hawking this tax.

Politicians and Chamber Representatives have been going around the CSRA saying this tax will raise $841 million under a base case. This is a LIE and the Promoters’ own data shows that. Here is a chart showing the base case. It is built on wild income growth numbers – 8% next year – that are a fantasy. The real numbers knock holes in these projections!

Will we get only $650 million? Sales tax revenues are WAYYYYYYY down as the blue charts show over the last 5 years. Can we pretend our way back to prosperity?

Gentlemen YOU HAVE BEEN HOODWINKED!!!!!!! What these real revenue numbers show is that area wide, revenues will probably only cover $500 million to $540 million of the investment list projects! This will mean that the ones in the last years of this deal won’t be funded. Incredibly $6.6 million of the $7.7 million of Lincoln’s projects are to be built in these final years.

 Source: Constrained List Spreadsheet from CSRA Regional Commission

The numbers say these projects will lack funding. You have been deceived and now are being asked to foist this deception upon the people of Lincoln County.

Beyond that, this is a terrible 14.2% increase in the sales tax. Frugal folks just cannot stand such an increase in any cost, for a 14.2% increase doubles living costs in 5 years. For this? This comes on top of a 23% sewer rate increase and several double-digit school tax increases. Look around! Who can afford that?

These deceivers have managed you get some of you excited over Lincoln County getting $722,000 a year in new discretionary funds. Well, based upon the data above this looks to be far less. This money is only coming to us because this scam makes Richmond and Columbia counties give up $7 million to bribe us into this wicked partnership with them. How is that right? A 1% new tax dedicated to Lincoln County would raise more revenue. Why are you excited about the same money or less with strings attached? Why are you willing to destroy your credibility for this?

Gov. Sonny Perdue said that DOT committed ENRON ACCOUNTING when it lost control of highway funds 4 years ago. Now they are all excited about getting their hands on this money. They want us to bail them out.

Mark Twain once said there were three kinds of lies….Lies….Damned lies and statistics……..now we can add a fourth lie – TSPLOST.

My warning is this: Don’t go forth using these phony numbers after tonight. You know better and the people now know better.

Just vote no on TSPLOST. It is the only honorable thing to do.

A.G.

Join the Anti-TSPLOST movement on Facebook here–>  Vote NO to TSPLOST

Special Report: A TEE Total Mess!

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Making a Hash over $1.3 Million Kitchen Equipment

Originally posted on CityStink
Thursday, June 21, 2012
Augusta, GA
By Al Gray

The author, Al M. Gray, was President of Cost Recovery Works, Inc., a provider of Cost Avoidance and Cost Recovery for America’s leading companies, businesses and governments desiring Superior Returns. Cost Recovery Works is no longer in business, as of December 31, 2020.

In the waning weeks of Winter 2012, Augusta Today contributor Lori Davis submitted an exploratory, wide ranging Georgia Open Records Act Request.

for the City of Augusta’s payments under major contracts. The documents response was massive. Deep in the supporting subcontractor billings to the R.W. Allen, LLC contract for the TEE Center was a most intriguing invoice from Norvell Fixture and Equipment Company showing that $199,656.00 of kitchen equipment as work completed and an additional $76,289.25 worth was stored, for a total billed and paid of $275,845.32! (less 10% retainage). The contract total for kitchen equipment is a surprising $1,329,418.00.

Why was this invoice noteworthy? There was no detailed partnership agreement executed between the City and its TEE Center Partner and Manager, Augusta Riverfront, LLC going into the contracts for construction, leaving the last word on the partnership being the unsigned, undated August 2007 Term Sheet. Repeated references to kitchen equipment are pretty clear that such equipment are the responsibility of the LLC, including this: “Augusta’s Capital Funds shall specifically not be used for items related to Kitchen Equipment, Laundry Equipment, and any Convention Center or Hotel Capital Cost.” Similar language making the LLC responsible for Kitchen Equipment remain within the executed 1999 Core Agreement of record in the Offices of the Clerk of Augusta Richmond County Superior Court.

No Augusta Funds are to be used to procure kitchen equipment, when $1.3 million of it is under contract?

During negotiations that have not yet produced a signed partnership agreement there was certainly a commitment for Augusta to construct new kitchen space within the TEE Center and relocate the combined kitchen from the existing Convention Center. That had no impact upon equipment ownership. Real property improvements and tangible personal property, such as equipment, are different.

In order to advance the investigation, Augusta Today member Dean Klopotic submitted a follow-up GORA request seeking the most recent R.W. Allen LLC billings under the Tee Center Contract. The City responded with Progress Billing Number 24, covering costs through March 24, 2012, including Kitchen Equipment Invoice Number 6, through March 20, 2012.

The details show $792,984.52 equipment work completed, materials stored of $162,544.34 and a total billed of $955,528.86, less 10% retainage. The R.W. Allen monthly invoice shows no additional kitchen equipment stored. Both Construction Manager and Subcontractor show most of the kitchen equipment as work completed.

At 11:00 AM on Thursday, June 7, Barry White of the Convention and Visitors Bureau conducted a TEE Center tour, which was attended by Ms. Davis and this writer. Project Manager Jacques Ware of Program Management firm Heery International would not permit the use of a video camera, suggesting that we come back for the Media Tour to be held Thursday June 14.

When the entourage reached the second floor of the TEE Center, the empty space was pointed out where the kitchen is to be located. At that juncture, an inquiry was made about the kitchen equipment invoiced back in December. Mr. Ware said that he didn’t authorize payment for a kitchen equipment invoice, asking what kind of equipment was on it. This writer responded, “A number of tilting kettles and ranges,” then pondering out loud if they might be stored. Mr. Ware said the only kitchen equipment there would have to have been, “for the Marriott.” (The Marriott is owned and operated by Augusta Riverfront, LLC.)

An email request to Mr. Barry White to be included in the Media Tour on the 14th received no response. Other attempts were made to get a separate tour along with one or a group of commissioners to investigate the matter. Commissioner Joe Jackson had just returned from vacation and could not schedule a tour in the next week. Commissioner Bill Lockett managed to get the Heery project liaison to get permission to join another June 14 tour, only to see it canceled after several hours.

Commissioner Wayne Guilfoyle was provided with a copy of Kitchen Equipment Invoice on the morning of June 20, whereupon he sought explanation of where the kitchen equipment is from Program Manager Heery International, receiving assurance that the materials were, “either stored or installed.”

It is fairly common practice to bill stored materials. There is clear language on billing documents that they are, “Materials Stored on Job Site (Invoices if Required).”

Where does the situation stand? What are the issues?

Issues and Questions

  • Where is the equipment that Augusta paid for?

  • Has Augusta Riverfront, LLC been relieved of its responsibility for the purchase of kitchen equipment? If so, where? If not, is Augusta being reimbursed for the $1.3 million cost?

  • If the Kitchen Equipment was delivered and used in Conference Center operations and events ($955,528.86 having been delivered, installed or stored prior to the Masters upswing in events) where is the accounting for the revenues?

  • Without an Effective Date having been established for the successor catering agreement, where does accountability lie, especially since Augusta Riverfront, LLC’s Paul Simon having declared the TEE and Conference Center merged months ago?

  • Why do both the R.W. Allen and Norvell Fixture and Equipment Company invoicing show the equipment as “Work Completed” if the equipment is “Stored?”

  • Should Augusta have paid for nearly a $million of equipment months before it is installed in the new kitchen?

  • Why does the invoicing include future charges for repairing Augusta Riverfront, LLC equipment? Whose equipment will it be after Augusta repairs it?

———–

Commissioners Joe Bowles, Joe Jackson, Wayne Guilfoyle, and Bill Lockett have provided Augusta Today and CityStink.net with substantial cooperation in this investigation and report. The public can feel confident that these gentlemen will pursue this matter to a conclusion.

Several of them need to participate in a tour and inspection of the paid-for kitchen equipment. Perhaps the city’s internal auditor can vouch for the accountability of the equipment, including verification of delivery documents to a storage facility before the dates that the invoicing was submitted.

It is hoped that all will aggressively protect the interests of the citizens of Augusta and seek wise counsel as they deal with the aftermath of the total mess that the TEE Center currently represents.*** Stay tuned, more to come.

A.G.

15 Reasons to Detest TSPLOST and Punish its Promoters

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TSPLOST creates 12 new “regional” governments

Originally posted by CityStink
Tuesday, June 12, 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.

*Please see a video presentation by Al Gray warning county leaders about the perils of TSPLOST—>Here

The Transportation Investment Act of 2010 (also referred to even in the legislation as the ‘Transportation Investment Act’) is being called TSPLOST all over Georgia. The legislation establishes a new 1% sales tax supposedly dedicated to regional transportation.

Our region is the Central Savannah River Region, consisting of populous Richmond and Columbia counties, along with 11 rural counties. The tax covers a 10 year period. The funds are totaled for the region, then allocated based upon 75% a “constrained investment list” of projects and 25% discretionary funds based upon an 80% non-state road miles per county, and 20% based upon population. Funds are collected by the Georgia Department of Revenue, then transferred to the Georgia Finance and Investment Commission for distribution.

Confusing? You bet. That is intentional.

Here is the evaluation, from a cost recovery and fiscal conservative policy point of view, of why TSPLOST is an abomination:

  1. The bill says only the 5 member executive board has a vote on the final project list. Rural voters have no representation in that vote. See the Executive Committee paragraph halfway down the page. This is Taxation without Representation #1.

  1. Rural voters in 11 counties can vote it down, but still are subjected (See Special Districts, paragragh 2) to this regional government, if it massively passed in urban counties. This is Taxation without Representation #2.

  1. It is an Act of Extortion. The bill says regions that do not pass it see their state funds matching TRIPLED from 10 percent to 30 percent. (See Line 687-692, page 20, House Bill 277) Good news is that it will fail in a region or two prompting a HUGE lawsuit. Bill Jackson, Ben Harbin, and Lee Anderson voted to allow Nathan Deal to extort money out of us in this manner.

  1. Richmond County and Columbia Counties are Donor Counties, giving up an estimated $5 million and $2 million respectively, to fund the 25% discretionary funds for the other 11 counties. McDuffie County is said to be also a minor donor county, although the author’s analysis suggests it has a very slight benefit of less than $100,000 over 10 years.

  1. It is a 14.2% tax increase. Frugal folks get WIPED OUT by anything that increases living costs by double digits as your living costs double in less than 5 years (see Rule of 72). Worse, it compounds the 14% Georgia Power rate increases that Jackson, Anderson and Harbin gave us.

  1. The $840 million figure the Chamber is presenting is A LIE AND THEY KNOW IT. It is built on a wild income growth figure of 8% next year. WHO is getting 8% pay increases???? Their own figure is $689 million, apples to apples. Even that is too high by $50 million because the “low case” numbers are known to be off for this year by more than 50%. (More on this later.)

  1. It introduces a whole NEW LEVEL OF GOVERNMENT!!!! Ron Cross contests that with your author, but it has its own governing body, revenue stream, financial apparatus, and it calls for NEW STATE/REGIONAL positions (House Bill 277 New Code section, lines 236-329) written into the bill.

  1. It turns over nearly all funding in the rural counties (HB 277, line 786-789) to DOT, an agency this whole deal is bailing out after it lost track of its contract obligations, a failure so bad that Governor Perdue accused DOT of “ENRON ACCOUNTING.“

  1. Politicians already see this as a NEW way to divert or tie highway funds to such things as deepening the port at Savannah. This shouts WARNING!!!!!,for the state cannot be trusted with its TRUST FUNDS. Look up the Tire Fund, 911 fund, and Tobacco funds. What really is absurd is that this whole imbroglio was set up to CLAIM that it protected us from these SCAMS.

  1. This legislation creates a NIGHTMARE FOR RETAILERS as it requires separate sales and use tax reporting for each location! (See HB 277 lines 762-768).

  1. 17% of the revenues collected on motor fuels in Georgia go into the General Fund, not transportation. If transportation is the priority claimed, WHY is this true? What about the $750,000 to take a black bear census and to build bear underpasses on a state highway? Is that a transportation ‘priority?’

  1. Columbia County has huge funds from SPLOST which it uses for road improvements even on state highways. DOT keeps the motor fuel taxes. THIS IS A THIRD HUGE POT OF MONEY. Neither of the other two go away!

  1. Looking at the bill, it allows COUNTIES to charge Administrative costs (HB 277 Line 474). This is HIDDEN from cursory examination of this bill. No wonder the county administrators are drooling.

  1. Looking at the bill, it forces counties (HB 277 lines 800-850) to use DOT and envisions DOT as ‘consultant’ on the discretionary projects. The DOT’s Todd Long alluded to this during the Chamber of Commerce forum in Evans on Wednesday, June 6.

  2. House Bill 277 also states that the collection of TSPLOST funds is subordinated to collection of the state sales and use taxes (see HB 277, lines 750-752).

As a past member of the Greater Augusta Chamber of Commerce, this writer is concerned that championing this outrageous deception will ruin recruitment for Chambers of Commerce. It might be an easier sell for the Communist Party to sign up new members after this misguided foray into public policy!

Let’s defeat TSPLOST on July 31.

Along the way we need to make ALL of the county commissioners tell us their positions on this new tax so that we can be informed voters. They are calling it a “fair” tax, so isn’t requiring disclosure of their stance on TSPLOST likewise FAIR?

Then make the politicians PAY.***
A.G.
Join the Anti-TSPLOST movement on Facebook here–>  Vote NO to TSPLOST

ETCOD Center, The Land of Tomorrow Doomed by Its Own Flaws & The Rule of Law

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Monday, June 4, 2012
Evans, GA
By Al Gray

In last weekend’s article, Overlay Somebody Else: My Battle With Columbia County Over Property Rights, the birth pangs of the ill-fated Evans Town Center Ordinance and the Evans Town Center Overlay District (aka ETCOD) in 2000 were revisited. This week, let’s look at what happened two years later, after the ‘rules’ had been in place long enough to judge how well they were applied.

 

During the heated debate of 2000, the spirit of economist and philosopher Frederic Bastiat had to have been there. Among his relevant quotes were these:

 
It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder… Sometimes the law defends plunder and participates in it. Thus the beneficiaries are spared the shame and danger that their acts would otherwise involve… But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them and gives it to the other persons to whom it doesn’t belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime…. Legal plunder can be committed in an infinite number of ways…

 

We can add to his list of legal plunder “town center ordinances” and “overlay zoning.”

Augusta attorney Gail Duffie Stebbins might not know Frederic Bastiat but she knew that the Evans Town Center was legal plunder. In 2002 Ms. Stebbins sued to have the Evans Town Center Overlay Zoning Ordinance set aside for failure to give her and other property owners sufficient, defensible notice. A Superior Court Judge agreed with her. Columbia County responded by curing the technical defects, then reintroducing the same ordinance.

The As the Columbia County News-Times reported about the November, 2002 meeting: “It wasn’t any more quiet the second time around,” an obvious reference to the near-riot that broke out in 2000 in a Planning Commission meeting at which the original ordinance was advanced to the Columbia County Commission.

 

Ms. Stebbins’ temporarily-successful law suit was easily sidestepped. The findings of the another speaker turned out to be fatal. The News Times report continued in its report: “The Evans Town Center is as dead as some misguided possum crossing I-20, run down by high-speed development,” said Al Gray, whose family owns land in the town center district.

Brash statements? Not really. You see, there are concepts as old as society itself that found themselves into the Constitution of the United States of America and the Bill of Rights. Citizens cannot be deprived of EQUAL PROTECTION OF THE LAW under the 5th Amendment and cannot be deprived of property without DUE PROCESS OF LAW under the 14th Amendment. By these standards the ETCOD ordinance was doomed, because there had been scores of noncomplying structures and developments built with county approval. The proof was demonstrated in this presentation, made to the county commission that night.

**(See the ETCOD Nonconformity presentation below. ETCOD Nonconformity (1)

 

The approach was this. First, the ETCOD ordinance was broken down into the component standards. Second, digital photos were taken of all structures, buildings, parking lots, and landscaping represented by approved and constructed projects since the Town Center was launched in 2000. Third, the noncomplying features were categorized under the pertinent design standard that was violated. Fourth, the fact that there were scores of noncomplying projects and only 5 variances requested and granted was documented. Fifth, it was pointed out that the near-universal approval of nonconforming structures would simply doom the ordinance in court. 

This is how one defeats an overly aggressive government. One can turn the planners own ordinances, actions, and lack of enforcement against them. A property owner cannot be singled out for not conforming when equal protection says he must be accorded the same leniency of those who came before. Yes, that night Columbia County fixed Ms. Stebbins’ objections, only to run into decisive defeat before the meeting concluded. 

The county never was able to subdue a patient determined landowner after that night, because they were armed with knowledge of their rights and how to successfully demand the same standards as those who came before them. Those standards had been gutted by the county’s own hand. “Columbia County does not have the resources to manage 5-square-miles with the ordinance as it is written,” said Richard Sorensen, a Northwoods subdivision resident. “What you are biting off is more than you can chew.”
Indeed.

After all, equal protection has its roots in the Bible admonition, “Do unto others as you would have them do unto you.” Even politicians find themselves nodding in agreement with that.

 

The Town Center plan ended up being a collection of upgraded architectural finishes and landscaping, but the unenforceable parts died that night.

 

Today, Columbia County’s Richard Harmon is putting the finishing touches on a comprehensive rewrite of the Evans Town Center ordinances, based upon these realities. Wise heads prevailed in the end. ***

AG
 
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