Tag: Arrowflinger Gray

Augusta Commission Buries Old Sins with New SPLOST Abomination

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This holey bucket, made up as a prop for one of your SPLOST meetings, is stunningly perfect as a depiction of Augusta’s Sales Tax Program. Properly designed, your liquidity slowly meters out one hole in the bottom, but the way this one is, liquidity spurts out all over the place, leaving the tree to wither. Augusta has been to the well too often with a bucket like this and this might be the final trip before the well is dry.

When you have a $12 million parking deck funded with sales tax built on land you did not own, that is a pretty big hole. When you have $2 million of sales tax funded kitchen equipment you were not supposed to pay for, exchanged for land that was supposed to be donated, that is a doubly big hole. When those sales taxes build a facility that drain the general fund, to the tune of $250,000 a year for 50 years to pay staff that were free under another agreement, that hole becomes a gaping maw. When you use sales tax to fund a municipal building and don’t use the right contracting, $20 million doubles to $40 million, on the way to $65 million. When you don’t recapture what contractors owe you, you lose $750,000 on your sewage contract, close to $150,000 on an office building, and untold $ millions on a convention center. Those are the big holes. The liquidity lost from myriad smaller ones may be greater, because Augusta doesn’t even have a sales tax program control manual built into its sales tax management contract.

The liquidity coming in from SPLOST, shouted to the heavens in timely initiatives designed to promote the SPLOST vote, isn’t there and won’t be there. For instance, past SPLOSTs made streams of interest income that have evaporated and been further diminished by use of high cost or inefficient banks, as Columbia County may be learning.

People get excited about lining up with the holes in your new SPLOST too. The Marriott folks want a $1 million skywalk, we see. Before giving them the money, which a former commission approved, wouldn’t it be prudent to see if there are offsetting charges from Augusta back to the Marriott? The Augusta citizens whom I was helping two years ago looked into several areas potentially offsetting that $1 million but were stonewalled by Fred Russell. Most of those centered on the Conference Center contract that was extended.

The biggest hole of them all is a chasm where truth should be. When the “news media” is so embedded in the subject of a story, as the Chronicle was with the Convention Center management, even their closest allies lose. Poor Rick Allen, the TEE Center contractor, believed what he read in the daily newspaper and became so un-witting that there were any loose ends that he accepted $7,000 in campaign donations from the top Marriott executive.

Augusta has another year to take the time to fix all the holes in SPLOST while the city and the region wrest with the burgeoning TSPLOST debacle which centers on Augusta also.

Take the time. Fix the holes. There are not many whole buckets of money left.

Blame it on the Evans UFO

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The first report in this series, Conflict in Columbia County, peered into the April 2010 vote to grant the mass banking contract of Columbia County, Georgia to GB&T, Georgia Bank and Trust, a bank in which two commissioners, Ron Cross and Charlie Allen, held stock and a third, Ron Thigpen, serves as Chief Operating Officer.

The award came after an extensive Request for Proposal was issued to about a dozen local banks in January. Responses were due by February 18th. Four county employees were designated as evaluators of the proposals: Water Director Billy Clayton, Accounting Manager Debra North, Finance Director Lee Ann DeLoach (then Reece), and Phyllis Swain. After the evaluations were compiled and the scoring totaled, First Citizens Bank scored the highest of the responding banks, with GB&T in second place. First Citizens quoted a minimum interest rate on deposits of 1%, with DeLoach noting the lack of a floor with GB&T relative to First Citizens and Swain noting that First Citizens had the best rate. The initial recommendation was to award the agreement to First Citizens.

GB&T had quoted a variable rate with a floor of 0.75%, 0.25% less than First Citizens. This put the minimum interest rate income from First Citizens 33% higher than GB&T.

That is when the UFO landed and all sorts of communications were disrupted. In this case UFO means Unidentified Financial Official. Some member or members of the County Finance Committee put the award on hold and sought direction from Jeffries, the County’s sole-sourced Bond Underwriter. When asked the identity of the Finance Committee member(s) who initiated the request from Jeffries, the county administration could not provide it, not could it provide any correspondence from Jeffries other than an Analysis showing that the county would earn more with GB&T. That analysis became the basis for what came to the commission as “Option Two” and a revised recommendation to award the mass banking arrangement to GB&T.

Out of a Finance Committee comprised of then Chairman Scott Dean, who is now in prison on an unrelated conviction, commission chairman and GB&T shareholder Ron Cross and District one commissioner and GB&T executive Ron Thigpen, who was the UFO? If the UFO landed in the commission chambers, why is there no video, no tracks and no sign of his coming and leaving, only a mystery document which turned out to be wrong, predicting higher interest rates that never materialized and costing the county dearly?

Citizens-activists working with agraynation.com also sought whether First Citizens or the other banks responding to the RFP were invited to rebid or comment on the Jeffries analysis.The county answered that there was no written contact found with First Citizens after notification that their bank was on the list of finalists.

Finally, a response to a Georgia Open Records request to Columbia County, shows that the county was paid the 0.75% minimum throughout 2011 and 2012 on nearly all of the accounts covered by the mass banking RFP, rather than the much higher rates expected when the deal was awarded to the three commissioners’ bank.

Doesn’t an old construction guy like Chairman Cross know that nothing produces more controversy and lawsuits in procurement than awarding bids based on new criteria that have been denied to the other bidders? Isn’t doing something like that and having it lose 33% more revenue than the recommended vendor even worse? How much of his net worth is in that bank stock and its related business ventures, anyhow?

A lot of answers are due Columbia County voters before May 20.

Here is a video presentation recorded in the waning days of April 2014.

Next up in the series – County Revenue Vaporized by the Evans UFO?

Conflict in Columbia County?

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Would y’all just look what we have here! In April 2010 the award of Columbia County’s Major banking agreement was on the Columbia County Commission agenda. Uncomfortably, three commissioners had stock in Georgia Bank & Trust at the time of this vote. The county attorney seemed concerned about the whole area of ethics, but it looks from up here in the pine woods that the entire commission was prepped to put on ballerina slippers and tiptoe through the minefield of awarding the county’s mass banking agreement to, well, Georgia Bank & Trust.

District One Commissioner Ron Thigpen was Chief Operating Officer of GB&T (very recently promoted to President). The county attorney found he could avoid the technical definition of a “Conflict of Interest” by recusing himself from this, an official vote of the commission. The county attorney found that the other GB&T shareholders, Ron Cross and Charles Allen, Jr., held less than 5% of the bank’s shares, and the bank being publicly held fit another exception in the Ethics Ordinance. The final step in the fanciful footwork that carried them to apparent safety was getting the not-ensnared commissioners Scott Dean and Trey Allen to bless the choreography and allow Cross and Charlie Allen to vote, which they did, awarding the banking deal to their bank.

Did the commission gracefully tiptoe across the ethics minefield on gilded slippers, as they would have us believe? Or were they really tap-dancing across it wearing snowshoes?

One of the Rons sure looks like he stepped on one of those Vietnam -era “Bouncing Betty” mines with a slow trigger. After all, it has taken 4 years for the damage to pop up and show itself to the taxpayers of Columbia County.

The mine had “Appearance of a Conflict” written all over it. The shrapnel might just now be striking. Wasn’t the key issue for Cross and Allen really how much their stock made up of their total assets and how much they stood to gain? How could Thigpen make myriad impartial decisions, beyond just that commission vote, like whether to increase or pay down debt when his bank stood to gain or lose revenue from the county’s deposits there?

Coming up next in the series is “Blame it on the UFO!”

-AF

The Costly Energy Bills from Hardie Davis

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This week Augusta radio talk show host Austin Rhodes of WGAC was heard being dismissive of the 7% increase in homeowner electric utility bills over the past five years from the controversial Georgia Senate Bill 31, which passed in 2009 with help from Senator Hardie Davis. SB 31 was heatedly debated because the bill guaranteed Georgia Power a separate 11.5% return on two new nuclear reactor units being constructed at Plant Vogtle on the Savannah River in Burke County, giving opportunity for all manner of cost-shifting hanky-panky. The law also came under fire for paying advance profits of over $1 billion over and above the costs of building the units. The Georgia Public Service Commission, who had the staff to evaluate the technical parts of the bill and who actually has the rate setting authority in the state, was bypassed by the legislature, prompted and cheered on by a flock of as many as 70 lobbyists clogging the aisles. Finally, the legislation exempted industry from the onerous special rate increases, meaning that the full burden falls on small businesses and residential payers.

Augusta’s Senator Hardie Davis was hardly alone in focusing on the jobs created for several thousand workers, many of them temporary construction craftsmen, while disregarding the costs to the millions of Georgians of the burgeoning rates.

Let’s take a look at the effects of SB 31 so far on a residential power bill. On top of the SB 31 costs, one must also add the additional 1% TIA 2010 or TSPLOST tax that Hardie also voted for. The Hardie Tax and Rate Increase Total is nearly 13%.

Now consider how much the wages to cover that 7% increase have increased since 2009 to the latest available in 2012. WHOA! The average Georgian has actually lost almost another percent because of wage reductions. (Now to be honest, the TSPLOST tax did not come in until 2013, but it certainly is in the mix now.)

The Hardie cost increases are compounding every year against falling wages and salaries.

To conclude, that is a power play Augustans cannot afford.

All the confirmation Austin and everyone else should need was said by fellow WGAC show host Clark Howard in the clip below.

Hardie Davis is Georgia Power’s best friend. Can Augusta afford him as its mayor with such disregard for the people?

(Editor’s Note: The above clip is included here under the terms of FAIR USE for journalistic and educational purposes. As part of the public record, this material is not available through non-archive means, and is hereby presented for the public good.)

Rick, You Forgot to Call

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In 2012, when you made a run for the Republican nomination for the 12th Congressional seat, the radio talker Austin Rhodes immediately attacked you for a long-ago donation to the infamous Champ Walker, a Democrat. I called in that day to defend you, recalling your teen years as a Republican.

Then Brad Owens of the Augusta Today Facebook group wrote a City Stink piece questioning added overhead charges on RW Allen, LLC’s partial bill to Augusta for the TEE Center y’all were building. The contract said those costs were capped. You were incensed and maybe with justification because it wasn’t the final bill.

You and I had a lot of discussions during the 2012 primary season, but there is one worthy of recounting. We reminisced about our frequent childhood gatherings at Uncle Land and Aunt Carols’. I told you that, despite having created constructionaudits.com, I stayed out of Augusta because RW Allen had such a presence there that your company was unavoidable. A warning was that RWA operated in a cloistered environment of Augusta for decades, building complacency. Rising to executive status as you did meant not really knowing what was in the contracts RWA signed, but those would become campaign issues. We talked about the one Augusta project that my firm did at Reid Church, where RWA was contractor, doing an admirable job under tough circumstances. Finally, we got to how the epidemic of financial corruption decimating my retirement savings forced me to use Augusta as a lab to see if the old skills were still good enough to produce.

After two years of stunning results, that question has been answered.

Before that call concluded, this was said and is still meant. You are a very fine man, Rick Allen, and America and Georgia need fine men to step forward. There was an offer to work with you to develop positions that the people truly need, not the old tired Republican Party rhetoric. Finally there was an offer to prepare you for greater things – a run for the US Senate.

The words of warning remain the same. You have long alliances with people in whom you trust, but the people don’t. There is a record of commitments in those RWA contracts that you are oblivious to, but the two Johns, Stone and Barrow, won’t be. You have major contributors with interests in the Augusta TEE Center scam that the Augusta Chronicle can’t hide much longer. You are tied to banking in a state that was and is the epicenter of global bank fraud decimating responsible people. Perhaps the entire 12th is reluctant to yield representation and their children’s futures to the Augusta bluebloods, perhaps the most aggressively greedy plutocrats on Earth.
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My promise was to help you understand and rectify those things. We last talked just before the TEE Center budget meeting in February of last year. You said the political future was undecided. You were going to call before launching another run at the 12th. That call never came.

Good luck Rick. You are going to need it.

Victimized or Triumphant in a Gray State

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Yes, I am A. Gray, but we are all in a gray nation now. It is a nation of 75 million aging Baby Boomers and the massive pressures the simple math of that portends. It is a nation where the polydamnticians and manipulators want to hide the clear and simple truths found in the Bible and the Constitution of the United States in a gray fog. We find the rule of law being covered in a gray burial shroud by the very people sworn to uphold it. Swirls of gray dust billow out from our imploding institutions to cover us in what would be shame if we even pretend to be a civilized people.


These words were crafted from a perch 20 feet up an East Central Georgia pine tree overlooking a sparkling lake. One vigilant squirrel had just alerted the entire squirrel network all of whom chattered, “HAWK!” in unison, lest even one fall victim. The squirrel feeding under the white oak below scurried next to a hollow log. It was a good thing, too, for the hawk eye had picked him as prey. The sharp talons grazed his back just as that tree dweller popped into safety in a knothole. So it is with us. We have waited perhaps too long to escape danger. THIS is agraynation, but a bright future beckons those who join in a network vigilant to the dangers lurking in the gray state we are in. Here in agraynation, we are going to wrest ourselves from being prey, laughing all the way at the polydamnticians, gold dome cowboys, exposed manipulators, crazy schemers, cozy crooks, devilish democrats, and especially the Pharisee Republicans who have gotten control of Georgia.

Augusta Sales Tax Program Management Contract Extension

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Augusta’s Sales and Use Tax-funded project management firm was up for contract renewal. After behind-the-scenes support of the commissioners, the contractor reduced the contract price by about $184,000.

A Tax Recovery Yarn

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How a multidisciplinary review of an already-negotiated sales and use tax exemption package, including analysis of equipment purchase orders and contracts, produced $millions in additional savings.

This effort required study of the technical data and vendor operating manuals, knowledge of sales tax exemptions and application in a “direct-use” state, understanding of how tax codes were input to produce tax accrual reports, and taking the initiative to appeal that which had already been established.