TerraForm Global, a subsidiary of SunEdison, filed a Form 8-K yesterday(3/28/2016) which contained the following statement:
"In addition, due to SunEdison’s liquidity difficulties, there is a substantial risk that SunEdison will soon seek bankruptcy protection."
SunEdison is currently trading at $0.80 per share. Its share value is expected to be no more than $0.23 by the end of the year according to some analysts.
Will the city share with its citizens the actions it has taken to protect itself from a SunEdison bankruptcy?
Tuesday, March 29, 2016
Monday, March 28, 2016
SEC Now Investigating SunEdison
The Wall Street Journal WSJ reported tonight that the Securities and Exchange Commission(SEC) is investigating SunEdison's statement to investors on its Nov. 10 earnings call, that it had $1.4 billion in cash and said it had “sufficient liquidity” to weather a sharp downturn in its stock price and cover upcoming obligations.
Knowledgeable people said the company had direct access to only a few hundred million dollars throughout September and October, and by November, the balance had dropped under $100 million.
SunEdison stock closed up about 4% at $1.26 today after rising as much as 15% earlier in the day on a debunked news report of a takeover bid for the company.
Knowledgeable people said the company had direct access to only a few hundred million dollars throughout September and October, and by November, the balance had dropped under $100 million.
The word around town is that Georgetown has taken some action to protect itself and its future electric supplies, but, so far no announcement has been forthcoming. Where is the transparency?
Airport Information
The Georgetown Transportation Advisory Board (GTAB) met on March 11, 2016 and reviewed the status and progress of the airport.
Almost 8,000(7977) take offs and landings were recorded in January, 2016, with 156 of those being at night.
For the first four months of the fiscal year, October 1 through January 31, total take offs and landings increased by 3,479 compared to the similar period the previous fiscal year. Folks, that is a 15.4% increase in one year!
Total fuel sales increased for January 2016 compared with January 2015 by 14,777 gallons. That was an increase in fuel sales of 24% and the new high capacity fuel tanks have yet to be installed!
Finally, it was reported that proceeds from $870,000 in bonds, that had been approved and sold the previous fiscal year, were transferred to TxDOT. This is the city's share of the $8.3 Million dollar project to relocate and increase the fuel storage tanks by 60%.
The city is well on it's way to increasing the capacity of Georgetown airport.
Almost 8,000(7977) take offs and landings were recorded in January, 2016, with 156 of those being at night.
For the first four months of the fiscal year, October 1 through January 31, total take offs and landings increased by 3,479 compared to the similar period the previous fiscal year. Folks, that is a 15.4% increase in one year!
Total fuel sales increased for January 2016 compared with January 2015 by 14,777 gallons. That was an increase in fuel sales of 24% and the new high capacity fuel tanks have yet to be installed!
Finally, it was reported that proceeds from $870,000 in bonds, that had been approved and sold the previous fiscal year, were transferred to TxDOT. This is the city's share of the $8.3 Million dollar project to relocate and increase the fuel storage tanks by 60%.
The city is well on it's way to increasing the capacity of Georgetown airport.
Lone Star Rail Update
The Capital Area Metropolitan Planning Organization(CAMPO) met last week and narrowly decided to continue funding LSR this fiscal year after Hays County Commissioner Will Conley, chairman of the CAMPO, had wanted to ask the state to freeze for two months about $8 million in CAMPO funding for the Lone Star Rail District. During that time, a committee of the CAMPO board, the area’s main transportation planning body, would have looked into the future for the rail project.
A more telling vote was taken later and initiated by Williamson County Commissioner Cynthia Long to revive Conley’s suggested money freeze failed on a 9-10 vote.
The vote to continue funding LSR was unanimous and included a provision to form a CAMPO study committee and report back to the CAMPO board by its June 6 meeting.
A more telling vote was taken later and initiated by Williamson County Commissioner Cynthia Long to revive Conley’s suggested money freeze failed on a 9-10 vote.
Lone Star officials traveled to Union Pacific’s Omaha, Neb., headquarters to convince them to change their mind on with drawing from the agreement, but the railroad did not change its stance.
That leaves Lone Star with three options, according to a March 21 memo to the CAMPO board by agency director Ashby Johnson: abandon the project, continue an ongoing environmental study but look at other potential routes such as Interstate 35 or Texas 130, or continue the study with the tarnished Union Pacific route in it.
That leaves Lone Star with three options, according to a March 21 memo to the CAMPO board by agency director Ashby Johnson: abandon the project, continue an ongoing environmental study but look at other potential routes such as Interstate 35 or Texas 130, or continue the study with the tarnished Union Pacific route in it.
There are several indisputable facts currently associated with Lone Star Rail.
1. There is no realistic capital plan to fund construction
2. There is no practical and realistic plan to fund operations and maintenance
3. No one has any idea where the rails will be located
This is after 20 years of effort!
Hays County Commissioners voted last week to send a letter to LSR indicating they will not continue their participation in FY 2017 absent some miracle.
It is time for Georgetown to withdraw their participation and focus their effort and funds are more practical and short term solutions to transportation and mobility issues.
Friday, March 25, 2016
EMS Update From March 22 Workshop
The EMS update at the City Council workshop was very disappointing. The funding to date to establish the EMS was not presented in a clear and unambiguous manner with several important elements missing and so was incomplete.
There was a lot of focus on the services provided and how well the recipients appreciated the response. New math was used to show that ambulances arrive at an incident 89.9% of the time within 10 minutes. Notice how the "goal posts" were moved from the 90% standard within 9 minutes. Thus, the City meets the newly invented standard.
Using the 9 minute standard for ambulance arrival, the City meets that less than 80% of the time and that is worse than the Williamson County ambulance responses.
For all EMS calls, the National Fire Protection Association NFPA 1710 standard establishes a turnout time of one minute, and four minutes or less for the arrival of a unit with first responder or higher level capability at an emergency medical incident. This objective should be met 90% of the time.
If a fire department provides ALS services, the standard recommends arrival of an ALS company within an eight-minute response time to 90% of incidents. This standard requires that Georgetown EMS, with advanced life support(ALS) capability, respond within 8 minutes 90% of the time. Looks like there is room for improvement.
It was also admitted that both a "big red" fire truck and an ambulance are dispatched on every medical call. This will go on until it doesn't! So much for reducing the wear and tear on the "big red" fire trucks with the concomitant financial savings.
It was admitted that the startup costs so far, $1.4 Million, are double the initial estimates. Because of the lack of transparency in the numbers, it is unclear if all the startup costs are included. It is pretty clear that the cost of maintaining a full-time medical doctor on staff is not included. Estimated revenues of $2.2 Million for insurance reimbursement will cover the operational costs,$1.89 Million. However, with little transparency, it is unclear if the bond payments for the purchase of the ambulances is included. There was nothing to show the city general fund being reimbursed for the startup costs either.
The City has 15 full-time paramedics on staff with authorization for the Council to hire 4 more. So, the costs continue to escalate!
It should also be noted that a majority of the insurance reimbursement comes from MediCare. The taxpayers of Georgetown get to pay for the reimbursement through their medicare premiums! What a great deal!
There was a lot of focus on the services provided and how well the recipients appreciated the response. New math was used to show that ambulances arrive at an incident 89.9% of the time within 10 minutes. Notice how the "goal posts" were moved from the 90% standard within 9 minutes. Thus, the City meets the newly invented standard.
Using the 9 minute standard for ambulance arrival, the City meets that less than 80% of the time and that is worse than the Williamson County ambulance responses.
For all EMS calls, the National Fire Protection Association NFPA 1710 standard establishes a turnout time of one minute, and four minutes or less for the arrival of a unit with first responder or higher level capability at an emergency medical incident. This objective should be met 90% of the time.
If a fire department provides ALS services, the standard recommends arrival of an ALS company within an eight-minute response time to 90% of incidents. This standard requires that Georgetown EMS, with advanced life support(ALS) capability, respond within 8 minutes 90% of the time. Looks like there is room for improvement.
It was also admitted that both a "big red" fire truck and an ambulance are dispatched on every medical call. This will go on until it doesn't! So much for reducing the wear and tear on the "big red" fire trucks with the concomitant financial savings.
It was admitted that the startup costs so far, $1.4 Million, are double the initial estimates. Because of the lack of transparency in the numbers, it is unclear if all the startup costs are included. It is pretty clear that the cost of maintaining a full-time medical doctor on staff is not included. Estimated revenues of $2.2 Million for insurance reimbursement will cover the operational costs,$1.89 Million. However, with little transparency, it is unclear if the bond payments for the purchase of the ambulances is included. There was nothing to show the city general fund being reimbursed for the startup costs either.
The City has 15 full-time paramedics on staff with authorization for the Council to hire 4 more. So, the costs continue to escalate!
It should also be noted that a majority of the insurance reimbursement comes from MediCare. The taxpayers of Georgetown get to pay for the reimbursement through their medicare premiums! What a great deal!
Wednesday, March 23, 2016
SunEdison Update
The Wall Street Journal had another article today about SunEdison and why it's inching closer to bankruptcy every day.
"That followed a Debtwire report saying the company was in talks for debtor-in-possession financing. That is often a precursor to a bankruptcy filing—a supposition reflected by the fact that its unsecured debt securities now fetch pennies on the dollar."
Subsequently Sun Edison's stock traded as low as $1.21 per share this morning before recovering slightly.
"That followed a Debtwire report saying the company was in talks for debtor-in-possession financing. That is often a precursor to a bankruptcy filing—a supposition reflected by the fact that its unsecured debt securities now fetch pennies on the dollar."
Subsequently Sun Edison's stock traded as low as $1.21 per share this morning before recovering slightly.
The City's silence on this subject reminds me of the "child whistling past the graveyard" hoping that nothing bad happens.
Stay tuned!
Monday, March 21, 2016
Breaking Georgetown EMS News
Georgetown EMS was featured on KXAN tonight and focused on saving a heart attack victim's life. The report also discussed Georgetown's takeover of the emergency medical services within the City from Williamson County's award winning service. A video clip was shown from a Williamson County 2014 presentation to the Georgetown City Council wherein it was predicted it would require several years of experience and training before Georgetown Fire would meet national response standards.
It was reported that Georgetown EMS currently is on scene in 9 minutes or less 80% of the time. One year ago under Williamson County EMS, the ambulance was on scene in 9 minutes or less 92% of the time. Georgetown EMS has a way to go to meet that standard.
It should be noted that this statistic was not included in the presentation material which is posted on the City's website for tomorrows presentation to the City Council in a workshop.
It was reported that Georgetown EMS currently is on scene in 9 minutes or less 80% of the time. One year ago under Williamson County EMS, the ambulance was on scene in 9 minutes or less 92% of the time. Georgetown EMS has a way to go to meet that standard.
It should be noted that this statistic was not included in the presentation material which is posted on the City's website for tomorrows presentation to the City Council in a workshop.
Are Traffic Circles a Good Idea?
Georgetown plans on installing a traffic circle at the intersection of the Rivery Blvd extension and Northwest Blvd. The City's traffic engineers may want to rethink that! Check out this photo from China:
I have personally experienced these traffic circles in Washington D.C. and they are a nightmare when there is any appreciable traffic.
They also have traffic circles in the Northeast in places like New Jersey and Massachusetts that are similar nightmares. It was reported several years ago that some Northeastern states were going to eliminate their traffic circles.
These circles are a source of confusion for older drivers and to people who do not regularly traverse them. They have trouble entering and positioning themselves for the exit on their desired street when traffic is heavy. There are a couple of circles in Cedar Park that are difficult to traverse at night because of poor lighting for those unfamiliar with them.
Traffic circles may be appropriate for lightly traveled intersections, but, I seriously doubt their efficiency for heavily traveled intersections.
I am sure they cost more than a standard intersection with smart traffic lights as they require more land, which must be taken from private landowners.
The City traffic engineers need to survey cities that have these circles and see how they are working when traffic increases. Regular citizens should be surveyed in addition to city officials.
I have personally experienced these traffic circles in Washington D.C. and they are a nightmare when there is any appreciable traffic.
They also have traffic circles in the Northeast in places like New Jersey and Massachusetts that are similar nightmares. It was reported several years ago that some Northeastern states were going to eliminate their traffic circles.
These circles are a source of confusion for older drivers and to people who do not regularly traverse them. They have trouble entering and positioning themselves for the exit on their desired street when traffic is heavy. There are a couple of circles in Cedar Park that are difficult to traverse at night because of poor lighting for those unfamiliar with them.
Traffic circles may be appropriate for lightly traveled intersections, but, I seriously doubt their efficiency for heavily traveled intersections.
I am sure they cost more than a standard intersection with smart traffic lights as they require more land, which must be taken from private landowners.
The City traffic engineers need to survey cities that have these circles and see how they are working when traffic increases. Regular citizens should be surveyed in addition to city officials.
Georgetown Airport's Future?
The Wall Street Journal has an article today about increasing the capacity of a small local airport that should serve as a future guide for the Georgetown airport if the City continues on the current path.Wall Street Journal
A retired airline pilot in Gainsville, GA decided that he could help the airport grow and that would keep him engaged in his retirement years and would ostensibly help the community, although nothing is mentioned about whether or not the airport is surrounded by homes, churches and schools.
Here is the money quote:
The 5,000 foot runway and 40,000 pound weight limit are exactly the limiting parameters at Georgetown's airport. It is easy to envision the growth in aircraft size and frequency of operations at Georgetown in the same manner that has occurred in Gainsville, GA. Georgetown's plans call for a doubling of runway weight capability, increased fueling capacity and improved navigational aids, exactly the kinds of improvements implemented at Gainsville, GA.
The City is currently on a disinformation campaign to convince the citizens that all of these improvements are not designed to increase the airport capacity, but, as the Gainsville experience shows, these improvements will cause larger airplanes to use the airport with more frequency.
The City staff and Council need to be honest with the citizens about the real objectives of the proposed and ongoing improvements. As the Council has said before, they want the airport to be profitable to the City and the only way to do that is to increase the number of aircraft that use the airport. The ongoing and proposed improvements are designed to exactly do that!
A retired airline pilot in Gainsville, GA decided that he could help the airport grow and that would keep him engaged in his retirement years and would ostensibly help the community, although nothing is mentioned about whether or not the airport is surrounded by homes, churches and schools.
Here is the money quote:
"For his project, Mr. Stradley persuaded the city and county to split the $25,000 cost of a study to evaluate the local airport’s capacity. During World War II, the airport had been designated as a small, 5,000-foot runway and given a limit of 40,000 pounds arbitrarily. The study determined the airport could handle four times that weight, and once the results were approved by the Georgia Transportation Department and published by the Federal Aviation Administration, the airport saw a noticeable increase in larger business aircraft.
“Operators that before were precluded from using our airport are now able to come into Gainesville…leading to a more vibrant business-friendly airport,” says airport manager Terry Palmer."The 5,000 foot runway and 40,000 pound weight limit are exactly the limiting parameters at Georgetown's airport. It is easy to envision the growth in aircraft size and frequency of operations at Georgetown in the same manner that has occurred in Gainsville, GA. Georgetown's plans call for a doubling of runway weight capability, increased fueling capacity and improved navigational aids, exactly the kinds of improvements implemented at Gainsville, GA.
The City is currently on a disinformation campaign to convince the citizens that all of these improvements are not designed to increase the airport capacity, but, as the Gainsville experience shows, these improvements will cause larger airplanes to use the airport with more frequency.
The City staff and Council need to be honest with the citizens about the real objectives of the proposed and ongoing improvements. As the Council has said before, they want the airport to be profitable to the City and the only way to do that is to increase the number of aircraft that use the airport. The ongoing and proposed improvements are designed to exactly do that!
Sunday, March 20, 2016
More Budget Analysis
It is the beginning of the budget season for Georgetown as they develop the budget for FY-2017, which begins October 1, 2016.
It is worth examining the trends in budget growth and debt growth over the past ten years. The rationale for the excessive, in my view, budget and debt growth is two fold. First, the population in Georgetown is increasing by eleven people per day. Secondly, the infrastructure has to be built before more people arrive so that more people will come to Georgetown.
To remove the population growth from the equation, let us examine the budget growth per person and the debt growth per person over the last ten years.
It is worth examining the trends in budget growth and debt growth over the past ten years. The rationale for the excessive, in my view, budget and debt growth is two fold. First, the population in Georgetown is increasing by eleven people per day. Secondly, the infrastructure has to be built before more people arrive so that more people will come to Georgetown.
To remove the population growth from the equation, let us examine the budget growth per person and the debt growth per person over the last ten years.
Even though the budget growth per person is somewhat "lumpy", the trend shows a compound growth rate of 4.17% over the last ten years. While the debt growth per person shows a 6.19% compound growth rate.
We need one more piece of information to adequately assess these growth rates and that is the inflation rate.
The compound growth rate for inflation is 1.76%
Now it is clear that the budget per person has been growing at 2.4 times the rate of inflation.
The debt per person has been growing at 3.5 times the rate of inflation.
Thus, it is clear that the City debt and budget are both growing at far greater rates than would be expected to accommodate both population growth and inflation. It appears that both the budget and debt growth rates should be scaled back or the citizens will be burdened with higher taxes and fees in the future.
SunEdison is Front Page News
The Williamson County Sun(Wilcosun) has finally discovered that the city's green energy electric provider is about to enter bankruptcy. The saga of SunEdison's financial problems have been chronicled on this blog for the last nine months.
I formally requested a redacted copy stripped of sensitive information of the City's contract with SunEdison in July 2015 so that an independent assessment of the risk to the city could be performed. My request was denied by the City (and upheld by the Texas Attorney General's office) on the grounds that the contract contained private competitive and trade secret information.
Now with SunEdison's stock price at around $2 per share, shedding assets, defending itself from multiple lawsuits, and lenders refusing to provide new loans, the City staff and elected leaders tell us not to worry, everything is fine and the city is at no risk financially and there are other sources of electricity under contract.
This reminds me of the Lucy and Linus scenario where Lucy tells Linus to trust her, she will hold the football while he kicks it.
It also brings to mind the Ronald Reagan adage, "trust, but verify". Show us the contracts so that the citizens of Georgetown can make their own assessments about the risk to our future electricity rates and supplies.
Let your City leaders know that you want transparency in city government and for them to release the relevant contracts. If they still hide behind legal mumbo-jumbo, talk with your state legislators and advocate for additional openness in the state's open records laws.
Friday, March 18, 2016
More City Pension Information
Even though the City has very little direct influence on the Texas Municipal Retirement System(TMRS), it behooves the staff and council to pay attention. As reported before, TMRS assumes a 7% investment rate of return on its portfolio, although unofficial reports indicate the Board has reduced that rate to 6.75%. Recall that as the investment return decreases, the more unfunded liability there is for the city and thus the taxpayers.
The annual investment return is quite erratic as shown in the following chart. The return was over 10% in 2009 after being -1.3% in 2008. The return for 2015 was 0.34%.
Every year TMRS calculates the return over the previous 10 years. Looking at the following chart it is clear the fluctuations are greatly reduced using the 10 year rates of return.
A couple of observations are apparent from the charts. First, the trends are downward sloping for both the annual returns and for the prior 10 year returns.
Secondly, it appears the assumed rate of return for the investments should be no more than 6% and perhaps should be more like 5.42%, which is the return over the past 10 years, rather than the 6.75% recently approved by the TMRS Board.
Given the recent performance of stocks and bonds and the slow growth of the economy, the city should be prepared to increase its pension contributions to maintain a healthy funding ratio.
The annual investment return is quite erratic as shown in the following chart. The return was over 10% in 2009 after being -1.3% in 2008. The return for 2015 was 0.34%.
Every year TMRS calculates the return over the previous 10 years. Looking at the following chart it is clear the fluctuations are greatly reduced using the 10 year rates of return.
A couple of observations are apparent from the charts. First, the trends are downward sloping for both the annual returns and for the prior 10 year returns.
Secondly, it appears the assumed rate of return for the investments should be no more than 6% and perhaps should be more like 5.42%, which is the return over the past 10 years, rather than the 6.75% recently approved by the TMRS Board.
Given the recent performance of stocks and bonds and the slow growth of the economy, the city should be prepared to increase its pension contributions to maintain a healthy funding ratio.
State Highway 130 Toll Road Operator Bankrupt
Spanish toll operator Cintra, which filed for bankruptcy on Wednesday, citing $1.7 million in debt. Cintra is the owner of SH 130, Texas’ first foreign-owned toll road, which has the highest speed limit in the nation.
The toll road runs 91 miles from Austin to Seguin, and was first built in 2012. It has the highest speed limit in the nation at 85mph.
The road was built using controversial contracts called public private partnerships (P3s) that have ushered in the new railroad robber barons of our time — private toll companies operating state-sanctioned monopolies and charging Texans a premium to drive.
The contract included a “non-compete agreement prohibiting the expansion of free routes in the entire counties of Caldwell and Guadalupe”. Cintra has also been accused of bribing the Texas Department of Transportation (TxDOT) in order to increase the toll road’s speed limit to 85 MPH, while decreasing the speed limit on nearby U.S. 183 from 65 MPH to 55 MPH, in an attempt to both entice and force desperate drivers to pay tolls.
Thus one can see the obvious opportunities for graft and corruption in public private partnerships. The citizens of Georgetown need to be constantly alert to stop any such arrangements between Georgetown and private companies. There have been discussions at the city to use these types of contracts to further development in Georgetown.
The fate of SH 130 will now fall under the leadership of Gov. Greg Abbott, who has made strides to eliminate toll roads completely in Texas. House Transportation Committee Chair Joe Pickett strongly pushed removing tolls from the state-operated northern segments of SH 130 in order to immediately get some traffic relief on I-35 through downtown Austin. This bankruptcy filing may give the legislature the needed push to eliminate toll roads through-out the state.
The toll road runs 91 miles from Austin to Seguin, and was first built in 2012. It has the highest speed limit in the nation at 85mph.
The road was built using controversial contracts called public private partnerships (P3s) that have ushered in the new railroad robber barons of our time — private toll companies operating state-sanctioned monopolies and charging Texans a premium to drive.
The contract included a “non-compete agreement prohibiting the expansion of free routes in the entire counties of Caldwell and Guadalupe”. Cintra has also been accused of bribing the Texas Department of Transportation (TxDOT) in order to increase the toll road’s speed limit to 85 MPH, while decreasing the speed limit on nearby U.S. 183 from 65 MPH to 55 MPH, in an attempt to both entice and force desperate drivers to pay tolls.
Thus one can see the obvious opportunities for graft and corruption in public private partnerships. The citizens of Georgetown need to be constantly alert to stop any such arrangements between Georgetown and private companies. There have been discussions at the city to use these types of contracts to further development in Georgetown.
The fate of SH 130 will now fall under the leadership of Gov. Greg Abbott, who has made strides to eliminate toll roads completely in Texas. House Transportation Committee Chair Joe Pickett strongly pushed removing tolls from the state-operated northern segments of SH 130 in order to immediately get some traffic relief on I-35 through downtown Austin. This bankruptcy filing may give the legislature the needed push to eliminate toll roads through-out the state.
Monday, March 14, 2016
EMS Budgetary Update March 22, 2016 at Council Workshop
There will be a review of the Emergency Medical Services,
aka, the city operated ambulance service. It will ostensibly include
performance metrics relating to the efficacy of the service. It should also
include financial metrics, including total expenditures to date to start the
city operated service.
The city has identified start-up capital costs of $1,003,092.84
which includes five ambulances, four active and one backup. It also includes
some equipment like cardiac monitors, defibrillators and stretchers. Many of these
requirements were funded by issuing Certificate Obligations, otherwise known as
bonds.
It is unclear if the $450,000 that was provided by the
general fund for start-up costs is included, but, it is supposed to be paid
back to the general fund.
Other items to watch for are:
1. Emergency medical
supplies approved at the 11-24-15 council meeting, $250,000
2. Emergency medical
supplies approved at the 3-8-2016 council meeting, $275,000
3. Total costs of 15
paramedics including benefits
4. New laptops for
the paramedics and associated maintenance costs
5. One additional
diesel mechanic to service ambulances, salary plus benefits
6. The total cost of
the city employed medical doctor who certifies the EMS program
7. Bond repayment costs, annual, and total over the bonds life
One of the savings identified during the advocacy for the
city to start its own ambulance service would be a significant reduction in the
dispatch of the “Big Red” fire trucks for medical emergencies. Thus it is expected
that the reduction in fire truck dispatch and the associated cost savings will
be presented to offset some of the start-up and on-going costs.
Thursday, March 10, 2016
Lone Star Rail Update
Councilman Gipson, the Georgetown representative to Lone Star Rail(LSR) reported the latest status at the March 8 council meeting.
He reported that Union Pacific had looked at future service demands along the existing rail line and determined it was not in their best interest to give up the existing rail.
1. LSR plans to continue forward through the Environmental Impact Report(EIR) process.
2. LSR will consider alternate routes including along hwy 130, I35 and acquiring additional right-of-way along the existing rail.
3. The Capital Area Metropolitan Planning Organization(CAMPO) is apparently funding the EIR and LSR will request the funding to continue through completion of the EIR.
4. Councilman Gipson will update the Council through the Georgetown budget process to determine if Georgetown's participation will continue next fiscal year.
Mayor Ross, who is the Georgetown representative to CAMPO, indicated he will advocate for the continuation of CAMPO funding to completion at the March 21 meeting.
He reported that Union Pacific had looked at future service demands along the existing rail line and determined it was not in their best interest to give up the existing rail.
1. LSR plans to continue forward through the Environmental Impact Report(EIR) process.
2. LSR will consider alternate routes including along hwy 130, I35 and acquiring additional right-of-way along the existing rail.
3. The Capital Area Metropolitan Planning Organization(CAMPO) is apparently funding the EIR and LSR will request the funding to continue through completion of the EIR.
4. Councilman Gipson will update the Council through the Georgetown budget process to determine if Georgetown's participation will continue next fiscal year.
Mayor Ross, who is the Georgetown representative to CAMPO, indicated he will advocate for the continuation of CAMPO funding to completion at the March 21 meeting.
Tuesday, March 8, 2016
The Truth About the Affirmatively Furthering Fair Housing Rule
At tonight's city council meeting, Councilman Keith Brainard pulled item G from the consent agenda and placed it on the legislative part of the agenda. He then presented the well-reasoned, insightful and powerful analysis of the danger of applying for and receiving HUD grants.
Here is the text of item G; Consideration and possible action to approve the submission of an application to Williamson County to request FY2016-17 Community Development Block Grant(CDBG) funding.
Here is Councilman Brainard's analysis:
After it was clarified that the City was not committed until the grant was approved and sent to the City for signature, the council voted to approve the submission of an application.
Here is the text of item G; Consideration and possible action to approve the submission of an application to Williamson County to request FY2016-17 Community Development Block Grant(CDBG) funding.
Here is Councilman Brainard's analysis:
"Item G is consideration and possible action to approve the
submission of an application to Williamson County to request Community
Development Block Grant (CDBG) funding.
As the staff writeup says, starting this year, the so
called Affirmatively Furthering Fair Housing rule requires any jurisdiction
that accepts funds from the U.S. Department of Housing and Urban Development to
perform a study to examine any possible patterns of housing discrimination.
Who, you may ask, will decide whether or not Georgetown is
engaging in housing discrimination? That would be the federal government in
Washington, DC. On what criteria will it be determined that Georgetown may be
engaging in housing discrimination? Race and ethnicity, which are being used as
proxies for class.
Under AFFH, once a town takes HUD money, it effectively loses
control not only over housing, but schools, zoning, transportation, the
environment, and business location. If we take HUD money, we play by their
rules. The AFFH could spell the end of local government in America. Once
Georgetown is lumped into the same region as Austin, then Georgetown's, housing
demographics will be considered as part of those of Austin, and we essentially
become a satellite of Austin.
Once this happens, we will have handed over to the federal
government control of vital decisions that determine the content and character
of our city.
The staff writeup indicates Williamson County is the
participating jurisdiction in this application, and the county will conduct the
study as part of the grant requirements. Georgetown will be included within the
study, regardless of whether grant funds are accepted by the city. This means
that Williamson County will be subjecting itself to federal scrutiny over the
key areas that historically have been the bailiwick of local governments this
nation.
The day is coming when Georgetown will apply for HUD monies
on its own, without having to go through
the county. And when we accept one dollar of HUD money, we will have
potentially handed over local control to Washington DC.
I may not be on the city council when that day arrives. I
hope before I leave for this council to have a discussion of whether or not
accepting federal monies for sidewalks and other projects justifies the
Faustian bargain of handing over our city's soul to the federal government."
Hopefully the ground work has been laid for real discussions on the dangers of accepting HUD money. The city needs to reject any and all federal funds that come with strings attached that limit the city council's ability to govern in accordance with the wishes of the citizens.
Workforce Housing, AKA Low Income Housing
The Council has on their March 8 agenda, item M, to modify the Unified Development Code to accommodate low income housing. This is the second reading of this ordinance and if approved will make the changes permanent.
Notice that the descriptive words are being changed from low income housing to workforce housing as a means for deceiving the citizens of Georgetown about what is really going on. The language explicitly states that this housing will only be available to those with income of 80% or less of the median family income as determined by HUD.
This is another wedge into the City to allow HUD to impose rules and regulations onto the citizens of Georgetown. It also restricts the rights of property owners to either keep the properties for 10 years, sell to another low income family, or pay fees to the city. This is more over-reach by the Federal Government as they continue their quest for control over all aspects of your life.
Here is the exact language to be included:
6.07.030 Workforce Housing Development
A. Purpose To encourage affordable housing for the workforce, this Code allows flexibility to the development standards and allowable housing types for projects that foster housing affordability.
B. Dimensional Standards The following Table provides the dimensional standards for each residential district that can be used in lieu of the dimensional standards otherwise applicable.
Table 6.07.030 Workforce Housing Dimensional Standards
Standard RS, TF, TH, MF‐1, MF‐2
Lot Size, Minimum 4,500, 6,000, 1,750, 12,000, 2 acres
Dwelling Units per acre, max ‐‐, ‐‐, ‐‐, 14, 24
Dwelling Size, Minimum ‐‐, 3,000, 1750, ‐‐
Dwellings per structure, Max ‐‐, 2, 8, 20, 50
Lot Width, minimum feet 35, 60, 20, 50, 50
Front Setback, minimum feet 10, 10, 10, 15, 15
Side Setback, minimum feet 5.5, 5.5, 7.5, 10, 10
Side Setback to Residential District, minimum feet ‐‐ ‐‐ ‐‐ 20, 30
Rear Setback, minimum feet 7.5, 7.5, 10, 10, 15
Rear Setback to Residential District, minimum feet ‐‐ ‐‐ ‐‐ 20, 30
Building Height, max feet 40, 40, 45, 35, 45
Impervious Coverage, max % See Section 11.02 "impervious Cover"
1. All Standards in Table 6.070 C B shall meet any specific requirements of the allowed housing type, as detailed elsewhere in this Chapter. When a conflict occurs between such requirements and the standards of this Table, the Table shall apply.
2. Lots less than 40 feet in width must be alley loaded lots, with the exception of townhouse lots.
C. Interpretations and Exceptions All dimensional standards in Paragraph (C), above, are subject to the interpretations and exceptions in Section 6.05.
D. Alternative Sidewalk Design Refer to Section 12.02040 Alternative Design and Financing for sidewalk options in Workforce Housing Developments.
Notice that the descriptive words are being changed from low income housing to workforce housing as a means for deceiving the citizens of Georgetown about what is really going on. The language explicitly states that this housing will only be available to those with income of 80% or less of the median family income as determined by HUD.
This is another wedge into the City to allow HUD to impose rules and regulations onto the citizens of Georgetown. It also restricts the rights of property owners to either keep the properties for 10 years, sell to another low income family, or pay fees to the city. This is more over-reach by the Federal Government as they continue their quest for control over all aspects of your life.
Here is the exact language to be included:
6.07.030 Workforce Housing Development
A. Purpose To encourage affordable housing for the workforce, this Code allows flexibility to the development standards and allowable housing types for projects that foster housing affordability.
B. Dimensional Standards The following Table provides the dimensional standards for each residential district that can be used in lieu of the dimensional standards otherwise applicable.
Table 6.07.030 Workforce Housing Dimensional Standards
Standard RS, TF, TH, MF‐1, MF‐2
Lot Size, Minimum 4,500, 6,000, 1,750, 12,000, 2 acres
Dwelling Units per acre, max ‐‐, ‐‐, ‐‐, 14, 24
Dwelling Size, Minimum ‐‐, 3,000, 1750, ‐‐
Dwellings per structure, Max ‐‐, 2, 8, 20, 50
Lot Width, minimum feet 35, 60, 20, 50, 50
Front Setback, minimum feet 10, 10, 10, 15, 15
Side Setback, minimum feet 5.5, 5.5, 7.5, 10, 10
Side Setback to Residential District, minimum feet ‐‐ ‐‐ ‐‐ 20, 30
Rear Setback, minimum feet 7.5, 7.5, 10, 10, 15
Rear Setback to Residential District, minimum feet ‐‐ ‐‐ ‐‐ 20, 30
Building Height, max feet 40, 40, 45, 35, 45
Impervious Coverage, max % See Section 11.02 "impervious Cover"
1. All Standards in Table 6.070 C B shall meet any specific requirements of the allowed housing type, as detailed elsewhere in this Chapter. When a conflict occurs between such requirements and the standards of this Table, the Table shall apply.
2. Lots less than 40 feet in width must be alley loaded lots, with the exception of townhouse lots.
C. Interpretations and Exceptions All dimensional standards in Paragraph (C), above, are subject to the interpretations and exceptions in Section 6.05.
D. Alternative Sidewalk Design Refer to Section 12.02040 Alternative Design and Financing for sidewalk options in Workforce Housing Developments.
E. Workforce Housing
1. Workforce Housing Developments in Single‐Family Residential, Two‐Family and Townhouse Districts that include 20% of the housing units available for those whose incomes are less than or equal to 80% of the area median family income (as set by the Department of Housing and Urban Development) are eligible to use the standards in Table 6.070.030 for all lots within the subdivision. The deed restrictions, approved by the City Attorney, must include language that requires all workforce housing lots be restricted for ten years from the date of the original home sale to the qualifying buyer any resale shall be to a party whose income is less than or equal to 80% of the area median family income or, absent that, shall require a payment to the City of their proportionate and prorated share of fees that were waived for their lot.
2. Workforce Housing Developments in Low‐Density Multifamily (MF‐1) and High‐Density Multifamily (MF‐2) Districts are eligible to use the dimensional standards in Table 6.07.030 with the provision of the following workforce housing units.
a. Dwelling Units per structure maximum can be reached by providing 5% of the total development as workforce units.
b. Front Setback can be reduced by 5 feet for every 10% of total development set as workforce units, to the minimum.
c. Impervious cover can be increase by 10 % for every 10 % of the total development set as workforce units, to the maximum of 70%, with required water quality improvements as required in Section 11.02.
F. Fee Waivers Workforce Housing Developments are eligible for administrative fee waivers, as adopted and published by the City of Georgetown.
1. Workforce Housing Developments in Single‐Family Residential, Two‐Family and Townhouse Districts that include 20% of the housing units available for those whose incomes are less than or equal to 80% of the area median family income (as set by the Department of Housing and Urban Development) are eligible to use the standards in Table 6.070.030 for all lots within the subdivision. The deed restrictions, approved by the City Attorney, must include language that requires all workforce housing lots be restricted for ten years from the date of the original home sale to the qualifying buyer any resale shall be to a party whose income is less than or equal to 80% of the area median family income or, absent that, shall require a payment to the City of their proportionate and prorated share of fees that were waived for their lot.
2. Workforce Housing Developments in Low‐Density Multifamily (MF‐1) and High‐Density Multifamily (MF‐2) Districts are eligible to use the dimensional standards in Table 6.07.030 with the provision of the following workforce housing units.
a. Dwelling Units per structure maximum can be reached by providing 5% of the total development as workforce units.
b. Front Setback can be reduced by 5 feet for every 10% of total development set as workforce units, to the minimum.
c. Impervious cover can be increase by 10 % for every 10 % of the total development set as workforce units, to the maximum of 70%, with required water quality improvements as required in Section 11.02.
F. Fee Waivers Workforce Housing Developments are eligible for administrative fee waivers, as adopted and published by the City of Georgetown.
If you are concerned about this, show up at the council meeting and let your voice be heard! Keep in mind that Georgetown has significantly more low income housing than any of the surrounding communities or the county.
Sunday, March 6, 2016
Proposed Allocation of FY-15 Excess Funds on Council Agenda
The City has identified funds which were appropriated for FY-15, but, were not spent for a variety of reasons. The bulk of those funds are identified for expenditure in agenda item U that the Council will consider at the March 8 meeting. Citizens who want to influence where those excess funds are spent should attend the Council meeting and make their recommendations known. Here is the agenda item:
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Georgetown and Lone Star Rail
After reporting here and elsewhere that Union Pacific has pulled out of talks with Lone Star Rail(LSR) over the building of a new freight line between Taylor and San Antonio and surrendering the exisiting tracks for use by LSR, Georgetown has finally taken notice. Evidently LSR has not communicated to the city the impact of the breakdown in talks with Union Pacific and now the city is trying to find out the impact.
City Councilman, John Hesser thinks its time for Georgetown to withdraw and stop pouring money into a losing proposition. LSR has not provided Georgetown with a budget estimate of the total cost or Georgetown's share of the cost. The last publicly known estimate was over $2 Billion and that was over 2 years ago. The estimate has likely escalated significantly since then.
Some in the city management believe continued participation in LSR is worth it because in 2017 the city will receive an environmental impact report that covers the area that the proposed rail-line would impact in the city limits. It is highly unlikely that this system wide report will be of any value to Georgetown. Any development in southern Georgetown that requires an environmental report will require a new assessment based on the particular property and the proposed development.
The funds already spent on the current effort should be considered as "sunk funds", not relevant to decisions to spend money in the future, and Councilman Hesser's effort to exit LSR should be supported.
City Councilman, John Hesser thinks its time for Georgetown to withdraw and stop pouring money into a losing proposition. LSR has not provided Georgetown with a budget estimate of the total cost or Georgetown's share of the cost. The last publicly known estimate was over $2 Billion and that was over 2 years ago. The estimate has likely escalated significantly since then.
Some in the city management believe continued participation in LSR is worth it because in 2017 the city will receive an environmental impact report that covers the area that the proposed rail-line would impact in the city limits. It is highly unlikely that this system wide report will be of any value to Georgetown. Any development in southern Georgetown that requires an environmental report will require a new assessment based on the particular property and the proposed development.
The funds already spent on the current effort should be considered as "sunk funds", not relevant to decisions to spend money in the future, and Councilman Hesser's effort to exit LSR should be supported.
Acrimony Continues Over History and the Old South Ball
The Old South Ball, which was recently held in Georgetown, continues to generate angry letters and opinion pieces from those who want to erase history and those who want to preserve and celebrate history.
Those who argue against celebrating anything to do with the Civil War conflate the current celebrations with a celebration of the institution of slavery. This includes the removal of the Confederate Soldiers and Sailors statue on the city square in front of the courthouse. Nothing could be further from the truth!
Those who argue for the preservation of the traditions of the Old South emphasize the recognition of those who gave their life in the civil war. They argue that the fallen soldiers and sailors should be honored for their sacrifice.
It seems that as part of the progressive's agenda of "political correctness" they want to erase those parts of history which they find objectionable. This is a typical ploy of the progressives who really want to control every aspect of human life, including the redistribution of wealth.
There are those who deny the existence of the "Holocaust" wherein millions of Jewish people were exterminated by the Nazis and want to erase all mention of these atrocities from our history. They also ignore the millions of people killed by Stalin, Mao and Pol Pot in order to advance the socialist agenda here in the United States. After all, NAZI was the acronym for the National Socialist German Workers' Party.
More recently, progressive are trying to rewrite the history of the Earth's temperature record by erasing the existence of the little ice age. Here in fact is a representation of global temperatures that do not rely on tree rings as proxy temperature records.
Currently the progressives are trying to rewrite U.S. history by changing history text books and most importantly the U.S. History Advanced Placement test that many college bound high school students must take. This rewrite portrays the American Indian as the victim of the vicious, greedy and oppressive white European settlers.
People need to push back against all these rewrites of history. The facts are there were people in Georgetown who were against slavery and there were those who supported slavery. History needs to show the facts and not attribute motives to current citizens when it is impossible to know what is in their hearts and minds.
In fact, there is a large body of historical information that supports the idea that the Civil War was not fought over the issue of slavery, but, rather over whether there should be a strong central government or whether the power should reside with the states. Up until the time of the Civil War, it was widely accepted that the states voluntarily joined the union of the states and therefore they could also withdraw from the union. The civil war established the principle that the Federal Government was supreme and the states could NOT withdraw from the union.
The bottom line is people need to get down off their moral high horse and let history be history and not try and impose their moral values on others.
Those who argue against celebrating anything to do with the Civil War conflate the current celebrations with a celebration of the institution of slavery. This includes the removal of the Confederate Soldiers and Sailors statue on the city square in front of the courthouse. Nothing could be further from the truth!
Those who argue for the preservation of the traditions of the Old South emphasize the recognition of those who gave their life in the civil war. They argue that the fallen soldiers and sailors should be honored for their sacrifice.
It seems that as part of the progressive's agenda of "political correctness" they want to erase those parts of history which they find objectionable. This is a typical ploy of the progressives who really want to control every aspect of human life, including the redistribution of wealth.
There are those who deny the existence of the "Holocaust" wherein millions of Jewish people were exterminated by the Nazis and want to erase all mention of these atrocities from our history. They also ignore the millions of people killed by Stalin, Mao and Pol Pot in order to advance the socialist agenda here in the United States. After all, NAZI was the acronym for the National Socialist German Workers' Party.
More recently, progressive are trying to rewrite the history of the Earth's temperature record by erasing the existence of the little ice age. Here in fact is a representation of global temperatures that do not rely on tree rings as proxy temperature records.
People need to push back against all these rewrites of history. The facts are there were people in Georgetown who were against slavery and there were those who supported slavery. History needs to show the facts and not attribute motives to current citizens when it is impossible to know what is in their hearts and minds.
In fact, there is a large body of historical information that supports the idea that the Civil War was not fought over the issue of slavery, but, rather over whether there should be a strong central government or whether the power should reside with the states. Up until the time of the Civil War, it was widely accepted that the states voluntarily joined the union of the states and therefore they could also withdraw from the union. The civil war established the principle that the Federal Government was supreme and the states could NOT withdraw from the union.
The bottom line is people need to get down off their moral high horse and let history be history and not try and impose their moral values on others.
Thursday, March 3, 2016
The Fight Against Airport Expansion Continues
The city continues to deny that it has plans to increase the capability of the Georgetown airport. It was reported in the Wilco Sun that the city plans to update the airport master plan to provide guidance on improving airport safety through infrastructure upgrades. The updated plan is to also identify new business opportunities - code words for increased aircraft operations.
The city refuses to address why the current plans include a 60% increase in aircraft refueling capacity and a doubling of the main runway load bearing capacity.
Here is a letter to the editor of the Wilco Sun expanding on the short comings of the Sun's reporting on the airport.
From: Carl Norris
Sent: Thursday, March 03, 2016 10:49 AM
To: Michael Freeman- Mgr Editor-Wilco Sun
Subject: GTU 20 Yr.MP Update-Sun 030216 Article-16PMGRGTN
Mr. Freeman,
The attached article that appeared under title "City moves ahead with
airport plan" on page 5A of the Wednesday Sun seemed to disregard the ACC
opposition as minor. Nothing could be farther from the truth!
The added attachments to this message will verify that the ACC has been
validly concerned about the issues of this new master plan and its inclusion
of runway upgrade to serve larger, heavier and noisier aircraft since it
first arose on GTAB and CC agendas in 2014 and 2015.
The city staff continues to dismiss ACC concerns of city plans to increase
and expand GTU aviation operations as kooky and unfounded. Some city
position supporters even claim that the proposed strength upgrade for RW
18-36 has no merit for supporting heavier and noisier aircraft on the basis
of the existing 5000 LF of RW 18-36 being too short to service such aircraft
of 150,000 Lb dual wheel design. The Sun staff is suggested to investigate
the model Bombardier CS100. This model has the capability of accommodating
133 charter passengers or the equivalent air cargo weight, it's Maximum Take
Off Weight (MTOW) is 133,999 Lb., Maximum Landing Weight (MLW) is 115,000
Lb., its Landing Field Length at MLW is 4,499 LF. Cargo and/or charter
passenger weights of aircraft can be managed. If properly managed, the
Bombardier model CS300 with increased capacities could also operate off a
5000 LF runway.
Recall that GTU is an FAA approved "Reliever" airport. That means it is
authorized to service any general aviation needs save and except for regular
scheduled passenger service (Southwest, American, etc.). Accommodation by
GTU of charter passenger service and/or equivalent cargo operations is FAA
approved within operational conditions.
The continued mantra of the city that "We're not expanding anything at the
airport - just doing some safety and maintenance for the pilots" has long
since lost its truth and respect.
In opinion of ACC, the Sun could do a far better job of community awareness
of GTU issues and ACC concerns. We wish you well in your Managing Editor
position. We hope you maintained the extensive GTU files information we
provided in the past to Will Anderson. If not, please advise. We will try
to update that file for you.
Best Regards,
Hugh (Carl) Norris
Member: ACC
Here is a picture of the Bombardier CS100 mentioned in Carl Norris's letter.
As one can observe, this is not a "small" aircraft that normally uses the Georgetown airport!
The city refuses to address why the current plans include a 60% increase in aircraft refueling capacity and a doubling of the main runway load bearing capacity.
Here is a letter to the editor of the Wilco Sun expanding on the short comings of the Sun's reporting on the airport.
From: Carl Norris
Sent: Thursday, March 03, 2016 10:49 AM
To: Michael Freeman- Mgr Editor-Wilco Sun
Subject: GTU 20 Yr.MP Update-Sun 030216 Article-16PMGRGTN
Mr. Freeman,
The attached article that appeared under title "City moves ahead with
airport plan" on page 5A of the Wednesday Sun seemed to disregard the ACC
opposition as minor. Nothing could be farther from the truth!
The added attachments to this message will verify that the ACC has been
validly concerned about the issues of this new master plan and its inclusion
of runway upgrade to serve larger, heavier and noisier aircraft since it
first arose on GTAB and CC agendas in 2014 and 2015.
The city staff continues to dismiss ACC concerns of city plans to increase
and expand GTU aviation operations as kooky and unfounded. Some city
position supporters even claim that the proposed strength upgrade for RW
18-36 has no merit for supporting heavier and noisier aircraft on the basis
of the existing 5000 LF of RW 18-36 being too short to service such aircraft
of 150,000 Lb dual wheel design. The Sun staff is suggested to investigate
the model Bombardier CS100. This model has the capability of accommodating
133 charter passengers or the equivalent air cargo weight, it's Maximum Take
Off Weight (MTOW) is 133,999 Lb., Maximum Landing Weight (MLW) is 115,000
Lb., its Landing Field Length at MLW is 4,499 LF. Cargo and/or charter
passenger weights of aircraft can be managed. If properly managed, the
Bombardier model CS300 with increased capacities could also operate off a
5000 LF runway.
Recall that GTU is an FAA approved "Reliever" airport. That means it is
authorized to service any general aviation needs save and except for regular
scheduled passenger service (Southwest, American, etc.). Accommodation by
GTU of charter passenger service and/or equivalent cargo operations is FAA
approved within operational conditions.
The continued mantra of the city that "We're not expanding anything at the
airport - just doing some safety and maintenance for the pilots" has long
since lost its truth and respect.
In opinion of ACC, the Sun could do a far better job of community awareness
of GTU issues and ACC concerns. We wish you well in your Managing Editor
position. We hope you maintained the extensive GTU files information we
provided in the past to Will Anderson. If not, please advise. We will try
to update that file for you.
Best Regards,
Hugh (Carl) Norris
Member: ACC
Here is a picture of the Bombardier CS100 mentioned in Carl Norris's letter.
As one can observe, this is not a "small" aircraft that normally uses the Georgetown airport!
City Council Election Coming May 7. 2016
The Georgetown election for three city council positions is rapidly approaching. The positions for districts 3, 4, and 7 are to be filled. Councilman Fought, District 4, and Councilman Gonzales, District 7, are running unopposed.
Councilman Hesser, District 3, has a challenger, Dwaine Boydstun of Sun City. Mr. Boydstun is a retired lawyer and teacher. He is also the president of the Sun City Democrats club, treasurer of the Democrat Club's Political Action Committee, and the Chair of Democaratic Precinct 394.
Mr. Boydstun is currently soliciting funds from his Democratic Club members to wage a vigorous campaign against Mr. Hesser.
Now is the time to get involved in the election if you want to have an input on the future direction of the city.
Councilman Hesser, District 3, has a challenger, Dwaine Boydstun of Sun City. Mr. Boydstun is a retired lawyer and teacher. He is also the president of the Sun City Democrats club, treasurer of the Democrat Club's Political Action Committee, and the Chair of Democaratic Precinct 394.
Mr. Boydstun is currently soliciting funds from his Democratic Club members to wage a vigorous campaign against Mr. Hesser.
Now is the time to get involved in the election if you want to have an input on the future direction of the city.
SunEdison in More Trouble
New troubles for SunEdison as there are now calls for the replacement of the CEO.
SunEdison (NYSE: SUNE)
CEO: Ahmad Chatila
Year started: 2009
One year stock price change: -94.5%
Annual compensation: $7.7 million
SunEdison Inc said on Wednesday it suspended payment of quarterly dividends on its preferred stock. The company said it suspended payment of quarterly dividends on its 6.75 percent series A perpetual convertible preferred stock. This is another indication that the company is running out of cash.
The Wall Street Journal reported that Goldman Sachs, Barclays, Citigroup and UBS have balked at providing loans they had committed to fund TerraForm Power Inc's , SunEdison's yield company, takeover of some of Vivint Solar Inc's assets.
SunEdison (NYSE: SUNE)
CEO: Ahmad Chatila
Year started: 2009
One year stock price change: -94.5%
Annual compensation: $7.7 million
The Wall Street Journal reported that Goldman Sachs, Barclays, Citigroup and UBS have balked at providing loans they had committed to fund TerraForm Power Inc's , SunEdison's yield company, takeover of some of Vivint Solar Inc's assets.
The question remains. How much longer can SunEdison continue as a "going concern"?
Tuesday, March 1, 2016
More SunEdison Trouble
SunEdison said in a regulatory filing yesterday that they could not complete its annual financial filing due to ongoing investigations by the audit committee.Link
"If some or all of the allegations made by these former executives and current and former employees are determined to have merit, management may be required to reassess the Company’s liquidity position, as well as disclosures in the annual report, company officials said."
SunEdison reported a third-quarter loss of $328 million on revenue of $476 million compared with a loss of $317 million on revenue of $469 million in the prior-year period.
"If some or all of the allegations made by these former executives and current and former employees are determined to have merit, management may be required to reassess the Company’s liquidity position, as well as disclosures in the annual report, company officials said."
We have yet to hear or see Georgetown's backup plan for providing electricity to the citizens of Georgetown next year.
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