Tuesday, December 31, 2019

Global Warming Hoax from 2004

It has been many years since the global warming hoax has been forced onto the United States by globalist whose goal is control all the people of the world. Fortunately, the people of the United States have not bought into the brain washing.
"A secret report, suppressed by US defense chiefs and obtained by The Observer, warns that major European cities will be sunk beneath rising seas as Britain is plunged into a 'Siberian' climate by 2020. Nuclear conflict, mega-droughts, famine and widespread rioting will erupt across the world.
The document predicts that abrupt climate change could bring the planet to the edge of anarchy as countries develop a nuclear threat to defend and secure dwindling food, water and energy supplies. The threat to global stability vastly eclipses that of terrorism, say the few experts privy to its contents."
This report from sixteen years ago shows how the pseudo scientists and advocates tried to coerce global warming on the US through the US military and federal government.

It has become clear that all the dire predictions from 2004 have not come true and that scare tactics were used to try and coerce US citizens into giving up their future growth and living standards.

The same tactics are being used today and thankfully we are still rejecting the idea that the world warming is caused by mankind as well as rejecting the solutions that require giving up fossil fuels.

Georgetown Electric & Water Boards

The City Council is revising their ability to oversee the electric and water operations.

First, they have proposed to split the electric and water operations apart and create separate oversight boards.

Second, they propose to  expand the responsibility and authority of the boards to include all things financial.

Third, they propose including risk assessment for the electric operations.

The old Georgetown Utility Systems Board discussed the following issues with respect to changing the oversight of the utilities.


Here is the proposed charter for the Water Utility Board.

It is curious that there was no charter presented for the Electric Board. Why not?

Here are the proposed organizational charts for the two boards.



It is clear that two major stakeholders in the utilities have no representation on the boards.

Retail customers, ie homeowner, and commercial/industrial customers are NOT represented on these boards. WHY NOT?

This seems to be a serious flaw in the makeup of these boards. Was it an oversight or was it intentional that there are no members of the using community? Inquiring minds would like to know.

Contact your council person to provide your input before these changes are voted upon in the springtime.

Saturday, December 28, 2019

Ethics?

Is it ethical for the City Council to enter into contracts that require all Texas taxpayers pay for a portion of the contract cost that only benefits local citizens?

That is a question that arises when one looks at the wind and solar contracts entered into by the City.

Spinning Spur 3, the wind farm west of Amarillo
that serves Georgetown, applied to the Adrian ISD for a “Chapter 313” tax abatement July 8, 2013.

Taxable value of the $190 million project
drops to $5 million.

In return, the wind farm will create 5 jobs.
The abatement requires 10 jobs. Spinning Spur applies for, and gets a waiver.

Buckthorn Westex applied to the Ft. Stockton ISD for a “Chapter 313” tax abatement in February 2015. 

The taxable value of the $183 million project drops to $30 million.

In return, Buckthorn will create 2 jobs.
The abatement requires 10 jobs.
Buckthorn applies for, and gets a waiver.

Since Texas school finance laws require that
schools be “kept whole,” the state will reimburse
Adrian and Ft Stockton ISDs for the revenue lost by this abatement. So, where does the State get its money? From the tax payers of course.

So this transfer of renewable energy cost from the rate payers of Georgetown to all the tax payers in Texas is legal, but, is it ethical?

What say you?

P.S. The City's ethics code does not address this situation!

Friday, December 27, 2019

Georgetown Electric Debacle Timeline

The co-publisher of The Williamson County Sun has put together a timeline of the ill-fated foray into 100% renewable energy by the City.

It can be accessed by going to the website and clicking on the "Georgetown's Energy Timeline" in the upper left corner of the screen.

"As we researched the story, reading the national press coverage, listening to seminars and podcast interviews done well after the wind and solar farms went live, it became surreal to hear talk of how great things were while knowing how bad things actually were at the time. You may have the same experience as you read through the timeline.
The take-away in all this? We citizens will get the government we want. This expensive problem was caused by a lack of transparency in city government. The cost of secrecy is embedded in our electric bills.
We make a payment every month for it."
It is clear as one reads through the timeline that the Mayor and other city staff hid behind the state law that allows municipalities to keep utility financial information secret from the taxpayers/ratepayers. That law says they may keep financial information secret, but it does not require the information be withheld!

It's time to contact your state legislators and tell them it is time to change the law so that all utility information is available to the public.

Keep in mind that a City election is coming May 2, 2020 where the citizens have the opportunity to elect a new mayor and council members in districts 2 & 6.

Thursday, December 19, 2019

New Ways to Take Your Money Identified

The City has hired a contractor to help come up with new and innovative ways to pay for growth. The Contractor reported to the City Council at their workshop on Tuesday, November 26, 2019. The link to the presentation is here.

This presentation is focused on Impact Fees which would be asessed on developers who in turn would pass the increased costs along to the final owners of the developed property.

But, it was thoughtful of the contractor to identify all the ways the City can extract money from its citizens.


Sun Editorial on Ambush Votes


The co-publisher of the Wilco Sun has another insightful analysis concerning the operation of our City Council in the 12-18-2019 edition of the paper. The veil of secrecy that the Council operates under is astonishing.

There needs to be a mechanism put in place that provides for public input to the Council prior to an item showing up on a council agenda for a final vote.

The new state law that allows for public input at all official council meetings is perhaps a good first start. The workshop meetings held in the afternoon prior to a council meetings looks like such an opportunity for public input.

First, the Council needs to publicize this opportunity for citizen input.

Second, the Council should adopt a policy that no item discussed in a workshop will appear on a council agenda the same day. This would allow media the opportunity to publicize the issue prior to any council meeting.

Third, perhaps the workshops should be held in the evening, like council meetings, to allow working citizens the opportunity to attend and participate.

Here is the full Wilco Sun analysis on ambush votes.

"About this time last year, we Georgetown citizens saw the light, and it was red. In three years electricity had cost $27 million more than the city said it would cost. The budget misstatements continued into the fourth year, and we are now around $38 million down.

Each time we electricity users pay an electric bill, we should remember how our city officials, elected and hired, told us for years of the wise decision they had made. Actually, they told anyone who would listen, and this telling continued into the fourth year before it finally petered out.

The city’s original plan to get electricity from several sources (a prudent plan of using natural gas, renewables, and possibly nuclear power) had become an imprudent plan of single sourcing — renewables, wind and solar.

The decision to do something that had never been done before happened in closed meetings and even included a secret vote on the wind contract. During this discussion there was never a time when our city officials, elected or hired, included the collective wisdom of its citizens in the discussion. Had citizens been included, one of two things would have happened:

First, the high risk of going 100 percent wind and solar would have been spotted by people with experience in the power industry. Their knowledge could have influenced the decision, and we would most likely have adopted a more prudent plan.

Second, had that knowledge been considered, and we chose to go all in anyway, we wouldn’t be fussing about high bills. We would have known and accepted the risk. We might be unhappy, but we couldn’t blame anyone but ourselves. Our city government’s habit of secrecy has become a defacto public policy. We have a secret decision to build a parking garage at Sixth and Main. We have a secret decision to give Citigroup a below-cost price on electricity. We have a secret decision to spend $4.4 million on the Costco development.

These decisions were made by ambush votes, long-planned proposals that appear suddenly on the agenda for the next council meeting and are voted on before they can be debated, or even understood, by the citizen.

In practice, the ambush vote is used for those proposals that cannot stand cross-examination or debate. Perhaps it is time to amend our City Charter to limit this secrecy which can help so few and harm so many.

We have a good model. It is the history of our U.S. Constitution. The Constitutional Convention in 1787 proposed a constitution to replace the Articles of Confederation. The deliberations were secret, like the closed sessions of our council today. However, once the work was done, the Constitution was published and the larger, public discussion, began. During public debates, a flaw in the proposed constitution became clear. Although the proposal set up a system of government, it did not prevent that government from encroaching on the rights that people then enjoyed. It did not limit the powers of government.

So we got the Bill of Rights, the first 10 amendments to our Constitution, and today they are among the most cherished ideals of our political life.

Our own constitution, the City Charter, should be amended to prevent ambush votes and the secret dealings they make possible. The Charter should limit what can be discussed in closed session, and those limits should be more restrictive than the limits of the state law, which has been slowly eroded by special interests." 

Wednesday, December 18, 2019

Councilman Fought's Views on Suddenlink, Etc.


Steve Fought -- City Council District 4 Representative 
Newsletter
Earnest, open, informed debate  
leads to good public policy.

16 December 2019

DISCLAIMER: One of my responsibilities as a member of the Georgetown City Council is to provide information to the community. This newsletter helps me fulfill that responsibility. However, this newsletter is not a publication of the City Council; the views contained in this newsletter are mine alone and should not be taken as representing the views of the City Council or other Council Members. Please feel free to send me an e-mail.

I hope everyone had a wonderful Thanksgiving, that your teams won, and that you enter the Holiday Season in good health, high spirits, and full of enthusiasm for the New Year.

Our last Council Meeting of the Year was eventful, including a spirited discussion with representatives from Suddenlink.  I'll begin this final edition of 2019 with that topic, then move ahead with a preview of the "growth" that is on the horizon for 2020 with a new "development map", and then offer an invitation to join one of the City's Boards and Commissions, including the new GUS structure, in the coming year.  I'll conclude with the usual, and ever-popular, "Curious minds want to know...." which I'll use this time to respond to some questions that have come up during a few presentations I've made in recent weeks.
In this issue
Suddenlink

Over the last 6 months or so, I have received more complaints about Suddenlink than on any other topic.  As a consequence, fellow Council Member Kevin Pitts (District 5) and I co-sponsored an item on the 10 December Council Agenda: "Consideration and possible direction to the City Attorney to draft a Resolution expressing City Council's dissatisfaction to the Public Utilities Commission of Texas regarding customer service provided by Suddenlink Communications on behalf of the citizens of the City of Georgetown and discussion and possible direction to the City Manager to investigate ways to incentivize and/or encourage competition to Suddenlink Communications' service offerings to the citizens of the City of Georgetown."

After considerable discussion, the Council voted unanimously in favor of the resolution.  The Staff will bring back a draft letter, and recommendations for incentives to stimulate competition, in January. That's obviously important, but in my opinion the more immediate aspect of the discussions concerned how, as customers, we could get better service and more rapid problem resolution.

In that regard I really think it's important to actually view the video rather than having me attempt to repeat and summarize.  I'll simply say that Suddenlink stressed they have just gone through some major software changes and believe they have more or less resolved most of the customer service issues.  However, most of the individuals who spoke at the meeting (customers in the audience) expressed doubt about that claim.

Please click here to view the Agenda Item Summary Sheet and here, then go to Item "AS" to view the discussions on video.  

In the end, I asked what we should do when a customer appears to have exhausted all reasonable attempts at problem resolution but the problem remains.  The Suddenlink Representative (Mr. Travis Nance, Regional VP) said to contact him directly -- I have his contact information.  OK, that seemed like a bold statement, but I'm willing to give that a shot, for a while.  So here's what we can do.

First, let's give Suddenlink an opportunity to prove they have resolved the issue.  Go through the reasonable and normal steps to solve whatever issue(s) you are facing.  Then, if you have called, gone to the store, spent time on line, and generally feel as though you are at the end of the rope (exhausted all reasonable attempts to solve the problem, etc.), send me an e-mail with the information (and please include your full name and address so they can locate the account) and I'll shoot it up the line to Mr. Nance.

I suspect doing that will either: (1) establish that Suddenlink has indeed resolved the issues; (2) exhaust and so irritate the VP and that will get the system working as it should work; or, (3) prove that there is a larger problem, in which case we'll find another way to approach the issue.

One last comment -- yes, I do understand I am potentially going to get swamped with e-mails.  I'm prepared for that -- gotta start somewhere, this problem has been festering for too long.....*
_____________________
* I am especially looking to identify billing issues -- issues where Suddenlink may have overcharged customers and is making it difficult to eliminate and/or recover the charges.


Development Pipeline 

"Growth" continues to dominate the landscape. In order to accommodate this level of growth, the City Council has made a wide range of decisions on infrastructure, zoning, and economic development, much of which has been addressed in previous newsletters. The objective is to stay ahead of the growth curve, but not so far ahead as to incur a tax burden that is excessive.

So far I think we've been successful.  Keep in mind that in the face of all this growth, we have the lowest City Property Tax Rate in the region and are among the lowest overall cost for City Services in the area.  But there are new challenges every day.

Please click here for the latest development pipeline chart. You can use your computer keyboard to enlarge and move around the chart to focus in on specific areas.  I will use this newsletter to keep you up to speed on significant developments in each area as they come before the Council or approach completion.
Boards and Commissions (Especially GUS)

The City of Georgetown is currently recruiting highly qualified and dedicated individuals to serve on one of the City's thirty Advisory Boards or Commissions. The City Council depends on these citizen board members to assist in evaluating local issues which enrich, develop and promote the community.

There are 220 seats on the thirty active Boards and Commissions.  Each member is asked to serve a two year term and the terms are staggered.  This February approximately 100 seats will need to be filled.  Individuals interested in serving as a board member must complete an application which are now open and being accepted online.

To read about specific Boards and Commissions, please click here and scroll down.  To apply for a specific Board or Commission, simply click on the "APPLY" Tab in the upper right corner of the page for each Board or Commission.

One of the major changes this time around in the Board structure will be to divide the Georgetown Utility Board into two parts, one for Electric and one for Water and Wastewater.  The composition of those two boards will obviously change, and will require new levels of experience/expertise.

Although the Council has not yet finalized the decision, I anticipate the presentation we received at the 10 December workshop to be very close to the final product.  Please click here for the Agenda Item Summary Sheet and link to Presentation, and here and go to Item "D" to view the video.  If either of these new boards interests you, please let me, or your Council Representative know, and submit an application once the decision to open applications for those new Boards is announced.


Curious minds want to know....

Question-1.  I read the other day where the City Council "reallocated" money in the GUS-Electric fund.  Looks like smoke and mirrors to me. What's going on?

ANS-1.  The GUS-Electric fund has long been a "cash-cow" for other funds.  Over the years, a lot of overhead has been assigned to GUS-Electric which was more a matter of convenience than logic (e.g., the entire cost of the computer system which serves GUS Water, Wastewater and GUS-Electric, the entire cost of the Westside Service Center, which serves all of GUS, etc). Those costs needed to be apportioned properly to other parts of GUS.  Prior actions have corrected some of these allocations. The actions recommended at the end of the 2019 budget cycle continued that strategy.

The Council also decided to sell some long-standing energy credits along with transferring other assets between funds in order to align fund accounting properly.  The entire set of transactions can be seen by clicking here, and linking to the presentation.

I'll add that these are not only proper adjustments, as I mentioned during the discussions (and as reinforced by Council Member Triggs, District-3), but they are a prerequisite to consideration of putting GUS-Electric on the market (for sale) or for opening the GUS-Electric market to competition, both of which will be discussed at a future date. (Please click here and go to Item "B" to view a video of the discussions).

Question-2.  Why in the world is the City Council giving $20 Million to COSTCO to build a store here?

ANS-2.  The simple answer is, "We are not giving $20 Million to COSTCO to build a new store.  Quite the contrary, COSTCO is investing at least $20 Million of their own funds to build a new store."  But, given the way numbers seem to be getting tossed around these days, I can understand things getting confused.  So, let me see if I can provide some clarity.

The City has entered into several agreements bringing COSTCO to Georgetown and as part of developing the area around the COSTCO site.  COSTCO is expected to create 235 new jobs and have a net benefit (taxes) to the City of more than $11 Million over 10 years.  

The area around COSTCO will eventually include other commercial development.  Part of overall COSTCO agreement includes widening a road that will service the entire area. COSTCO's developer will build the road and the City will reimburse COSTCO for a portion of the cost of the road ($2 Million) once the project is complete.

Another project is a partnership with ATMOS Energy, to expand natural gas service in the area, which ATMOS Energy will accomplish, and which the City (through the Georgetown Economic Development Corporation) will provide a partial reimbursement ($400,000) once it is complete.  That will provide natural gas to COSTCO as well as other development in the area.

Finally, the City will refund, through Sales Tax, an amount not to exceed $2 Million over a period of 10 years, to COSTCO, if and only if COSTCO's investment in the project exceeds $20 Million and if COSTCO's sales produce sufficient sales tax to earn that amount of refund (50% share).  This is not an "up front" award, it must be earned, and the earnings are shared with the City as well as capped.

Now, in order to earn any of those amounts, COSTCO must invest a minimum of $20 Million in the project.  That's where the $20 Million figure comes from -- it's COSTCO's minimum investment. To summarize, the City's contribution to the project is, at a maximum:

-- $2 Million (Cost Sharing with COSTCO on road construction as a reimbursement upon completion of the road)
-- $400,000 (Cost Sharing with ATMOS to add natural gas to the area for economic develop)
-- $2 Million (maximum), paid in annual increments over a 10 year period to COSTCO as a 50% reimbursement from sales tax if they meet sales and investment targets.

Question-3.  Why are we giving Citigroup such a sweetheart deal on electricity and not even requiring that they buy a minimum amount from us before they get discounts.  Sounds like we gave away the store and didn't get anything for it.  What's going on here?

ANS-3.  Let's begin by noting that Citigroup is the single largest customer in the GUS-Electric account (8% of the demand).  As the biggest user, a discount of some sort is logical to retain their business and even encourage expansion.  There are two agreements with Citigroup. Both require them to use a base amount of energy.

The first agreement is a retention agreement and reduces Citigroup's current electric rate, but requires the company to use 4,000 Megawatt hours of energy each month.  (To put that in perspective, recall that one Megawatt is 1,000 Kilowatts.  An average house uses 1,000 Kilowatt hours per month (i.e., 1 Megawatt hour).  In order to get the discounted rate under the agreement Citigroup has to use 4,000 Megawatts hours per month, or 4 Thousand times the rate of the average house. 

The second agreement encourages Citigroup to expand its operations through incentive reimbursements.  After exceeding electric usage above an average of 5,000 Megawatt hours per month (or 5 Millions time the rate of the average house, and a 25% increase above the retention rate just mentioned).

Sales tax payments above the base amount of $1.25 million per year would be eligible for a 25 percent reimbursement. 

Property tax payments above the base amount of $275 million would be eligible for a 50 percent reimbursement.
  



Friday, December 13, 2019

Update on Suddenlink Issues

 The issue of poor customer service was a topic on the last City Council meeting agenda. Councilmen Pitts and Fought submitted a resolution to be sent to the Texas Public Utility Commission requesting action to improve the customer experience in Georgetown.

Councilman Fought explained in detail why the City has no authority over Suddenlink. He cited Texas law that transferred authority over cable providers from local government to the Texas PUC. He also quoted the law that prohibits the PUC from resolving customer complaints. 

Several Suddenlink customers testified to their experience with the poor customer service. One customer testified that from his research the issues with customer service were not limited to Georgetown, but existed in all Suddenlink service areas across the United States.

A Suddenlink representative also testified and admitted there had been problems caused by a change to a new computer system, but that was behind them and customer service metrics were improving.

The Council directed the City Attorney to draft the resolution for approval at the next Council meeting. They also directed the attorney to send copies to Senator Schwertner and Representative Wilson as legislative action may ultimately be required.

City staff was also directed to examine any methods the city could employ to foster competition in the cable service area.

Thursday, December 12, 2019

Wilco Sun Analysis of Costco Deal

The co-publisher of the Wilco Sun continues to do the heavy lifting to expose the questionable dealings of the City. Here is the editorial from the December 11, 2019 edition of the paper.

"The Costco business has been cooking for a while, and we’re finally seeing the details of a proposal that the city give back to Costco $20 million in sales taxes, taxes on their own sales and on the sales of the other stores that come to their development. They have seven additional pads besides their own. The city says the $20 million over a 10-year period is an inducement to get them to come to Georgetown. 


Before this, our city leaders have said that sales tax is a reason for more retail development, telling us that sales taxes help keep property taxes down. 

You may wonder why, then, should we give it back? How can it help if we don’t have it? *** Tax abatement talk is heavy going, about as fun as working out square roots with a pencil. 

As a result, we taxpayers are at risk of becoming gullible sitting ducks, influenced by dull figures and vague, plausible-sounding talk. When we think of economic development, we think of attracting industry from outside — manufacturing, or a high-level service business with good jobs and taxable property that can help lower taxes for the residential taxpayer. 

When Thing, Inc. needs a new location, it looks for land, a suitable labor pool and good infrastructure: roads, rail, airports, reliable electricity, etc. Since many communities have what Thing, Inc. needs, it starts a bidding war between them. 

Who will give the best tax break? Who will donate land? Who will build, at taxpayer expense, the new roads needed? If Thing, Inc. is a strong company, it doesn’t need the tax breaks, but will take them if it can. 

The tax breaks rarely make a difference in which site Thing chooses, but the breaks can be pitched to the citizen as a do-or-die choice and that scares people into folding. Thing, Inc. has knowledge and skill. It has customers. It has cash flow from outside. The town has land, people and infrastructure. But so do many other towns. At the negotiating table, Thing has a strong position. The town can’t easily find another Thing, but Thing can easily find another town. So tax breaks happen. 

*** But with retail, the negotiating positions are different. The town has the cash. When Big Retail wants to go into a town, it is because the town already has rooftops and roads with lots of traffic and more to come. BigR does not come to town before the money is there. Otherwise, a tax abatement would get us a grocery store on the east side of Georgetown, where there are not yet enough homes to support a grocery. 

But BigR saw how well the arguments worked for industrial tax abatements, and it adapted them to pitch abatements for retail. The arguments, though faulty, are effective, since we are used to hearing them in another context. But ask yourself this: When the city tells us that these abatements are needed as “inducements,” do we really think that BigR will go to Muleshoe, Texas, if Muleshoe offers a better tax break? Thing, Inc. might go to Muleshoe, but not BigR. Abatements are useful for landing export businesses — businesses that earn money from outside the area. 

When the city gives a special tax break to one retail business, it harms the others. Is this fair?"

Transparency

This week, @mayes_middleton, a Texas State Representative, sent out letters to local governments across Texas requesting taxpayer-funded lobbying disclosures be posted publicly in compliance with a new state law.

The Texas Municipal League, an association of Texas Cities, is advising their members to submit the "official contracts" for lobbying, but, not to include their dues to TML as there are no specific contracts between TML and cities even though TML lobbies on behalf of cities.

Leave it to weasel lawyers to try an circumvent the intent of the legislation which is to inform citizens on the amount of taxpayers money being spent on lobbying, often against the best interest of the taxpayers.

Keep watch on the city website to see if the city complies with the intent of the law!

Georgetown Giving $4.4M to Costco

Now we know that the City is giving at least $4.4M to Costco to induce them to build a store in Georgetown.

City officials said the project is expected to bring more than $11 million in 10 years to the city and create 235 jobs once the store opens. Part of the incentives include a $2 million sales tax rebate to Costco. It also includes $2 million from the Georgetown Transportation Enhancement Corp. for two public roads for the project. The corporation is funded with a half-cent sales tax for transportation projects for economic development.

The Georgetown Economic Development Corp. is paying $400,000 for a $1.2 million gas line to serve the store; Atmos Energy is paying the rest of the cost for the gas line. The city’s economic sales corporation is paid for with a quarter-cent sales tax.

It is fair to ask the council members that voted for this package of incentives why they are willing to give away $4.4 M of sales tax dollars while they are still sticking it to the electric customers with higher rates and shifting funds around within the city budget to hide the $38 M in losses generated since 2018.

There are many studies have shown that these taxpayer funded incentives are not net positive as stores like Costco would come without the incentives as that is where the customers are located. A lot of lessons in economic development have been learned over the previous decades, and one of the key lessons is that many incentives go to companies that were going to come even without incentives. This is particularly for businesses, like a Costco or even distribution centers, that are trying to serve a region.

Of course the city staff disputes these findings and point to their predictions that they will recover $2.4 M within the first 3 years after the store opens, which maybe up to 5 years in the future.

It is time for the City to perform a rigorous financial analysis to identify the true costs to the city along with the expected payback period and the opportunity costs associated with the tax revenue given to Costco. This analysis needs to be made available to the public.

Also the City should keep separate accounts for revenue and expenses for at least 5 years after the store opens so that taxpayers can hold the staff and Council accountable by comparing actual results with the analytical predictions.

Wednesday, December 4, 2019

What is Going On with Georgetown's City Council?

To those who follow the City Council, it seems it has taken a turn for increased secrecy. The City has long kept information about the electric company secret, but now we are seeing "sweetheart deals" with Citibank for electricity . Another tactic being employed to keep the public in the dark is to schedule votes on potentially controversial issues at the end of council meetings when the public has gone home.

Another secret deal seems to be the placement of the proposed downtown parking garage. The city plans to build the garage at the southeast corner of Main and Sixth streets on the site of an existing city parking lot behind the old council chambers building. The existing lot has 50 parking spaces and the multistory garage will have 200 spaces.

There has been no traffic study conducted to assess the impact of the additional traffic on Main Street and the surrounding streets. Why not?

The City has already signed a contract for the garage design and they has been no public hearings on the current need for a parking garage and where it should be placed if needed now.

This location requires the closure of 12 feet on Sixth Street and will eliminate six on-street parking spaces.

There are other issues, including conflict with the Downtown Master Plan.

What is the rush many citizens would like to know?

Council Persons Jonrowe and Triggs voted against the taking of part of 6th street and said they were very disappointed in the secret and incomplete process used to select the location for the garage.

What is going on with the other Council People? Don't they want to engage the public on this issue? Are they hiding something, or is it a bad case of ignorance? Where is the transparency?

Sunday, December 1, 2019

Suddenlink Issues????

Many Georgetown residents are having problems with Suddenlink and it's poor service. It apparently has gained the attention of our City Council.

"Email from Kevin Pitts I posted the below on my council Facebook page. Earlier today I sent in the required documents to add an item to the agenda of our next City Council meeting on December 10th. The agenda item will be for the council to direct the City Attorney to send a resolution expressing the dissatisfaction of the service provided to the citizens of Georgetown by Suddenlink Communications. If passed, the resolution will be sent to the Public Utilities Commission of Texas as well as our State Representatives and State Senator. Additionally, council will discuss and possibly give direction to the City Manager to investigate ways to encourage competition to Suddenlink’s services they offer to the citizens of Georgetown. Stay tuned, but if you are dissatisfied with Suddenlink, plan to come to the December 10th council meeting. This agenda item is being co-sponsored by District 4 Council Member Steve Fought. Thanks - Kevin Pitts"

Wilco Sun Doing Yeomen's Work on Georgetown Electric Fund

The Wilco Sun is doing the work that one expects from a robust newspaper. The front page article of the December 1 edition provides insight on the continuing losses of the electric fund, another $11.1M  last fiscal year.

Three electric rate in­creases this year were not enough to offset Georgetown’s $11.1 mil­lion over-budget cost of wholesale electricity for 2019, bringing the four-year over-budget total to $38 mil­lion. 
At the November 24 council meeting the scram­ble to find cash to cover the expense and replenish reserves was revealed as the council approved an amendment to the original 2019 budget to record the move of $4.4 million from other city departments into the electric department. 
Additionally, the electric department sold $722,000 worth of Renewable Ener­gy Credits (RECs) 
The city is allocated one REC for each megawatthour of electricity pro­duced by its wind and solar contracts. 
RECs can be sold for cash or can be used to offset the city’s use of fossil-fuel gen­erated electricity.Previously, the city had used its RECs to offset its fossil-fuel electricity, allow­ing it to say Georgetown was 100 percent renewable.

“The sale of the RECs does affect Georgetown’s status as a 100 percent re­newable electric utility,” City Manager David Mor­gan said. “Right now it is more important that we sta­bilize the utility’s finances than maintain our renew­able energy status.”

The budget move is the most recent attempt to deal with budget shortfalls that began in 2016.

In fiscal 2019 the city budgeted $44.5 million for electricity but spent $55.6 million.

The fiscal year begins Oc­tober 1 each year.

In 2019, the city moved cash from other depart­ments by having the elec­tric department “sell” as­sets to them.

• The water department bought the electric depart­ment’s share of the West­side Service Center: $2.6 million,• The fleet department bought the electric depart­ment’s land on FM 1460: $482,000• The IT department bought the electric de­partment’s fiber network: $645,000. 
The city also increased payments from the South Georgetown Tax Increment Reinvestment Zone fund to the electric department: $85,000 and reduced the electric department’s pay­ment into the general fund: $500,000. 
The electric department also sold scrap metal for an extra $10,340. 
The moves allow fiscal 2019 to end with reserves of more than $6 million, up from less than $2 million the year before. The city says its goal is to eventually have reserves of $19 mil­lion. 
The increased cost of wholesale electricity is the result of selling excess con­tracted electricity at a loss on the open market, com­pounded by high conges­tion pricing on the electric grid in the Panhandle and West Texas. Electricity gen­eration at the Buckthorn Westex solar farm has fall­en considerably below its expected level. 
The city expects to spend $59.5 million on electricity next year.
Staff is working to improve the utility’s fi­nancial condition by selling assets, increasing electric rates, decreasing expenses and completing a manage­ment assessment. Based on the assessment, the city is updating its risk policy and retaining a new team to manage the city’s electric contracts.

Georgetown is negoti­ating with Shell Energy North America and Tenas­ka Power Services to man­age the city’s energy port­folio, with a final contract expected to go to the council in December. 
Daniel Bethapudi was hired to manage the electric utility in October. “I am focused on ensur­ing our electric utility is safe, reliable and cost-com­petitive,” he said. “It is a top priority of mine to reduce our customer’s electric rates, but my immediate concern is to ensure that our community’s electric utility is financially stable.”
The financial engineering is also known as "putting lipstick on a pig", so that in the future the City plans on showing you how fiscally responsible they are by comparing the revised $numbers with their planned expenditures. They think we will forget, but we will not.

Tuesday, November 26, 2019

Putting Lipstick on the Georgetown Electric Fund Pig

The City is moving money around within City accounts to make the Electric Fund look better. But, it does not change the bottom line that the Fund has and continues to lose money. Check the 11/27/2019 edition of the Wilco Sun to see more analysis. According to the co-publisher of the Sun, the Electric Fund has lost $11.1M this year for cumulative losses of $38M since this debacle started.

Here is the chart being presented at the 11/27/2019 Council Workshop.

Click to enlarge

Here is the City explanation of the adjustments.

2019 Electric Fund adjustments

There are several proposed amendments in the Electric Fund both on the revenue and expense accounts. The purchased power budget must be amended to $58,465,559 and the CRR Credits be amended to $-2,821,759. This is a result of increased costs for purchase power and transmission of purchased power. The following actions mitigate these increased costs. First, staff proposes to sell land owned by the Electric fund to the Fleet Fund. This site on FM1460 will be the future home of the Fleet Services Shop identified in the facilities study. The land sale totals $481,927. There is a corresponding amendment in the Fleet Fund.Next, staff proposes the Water Fund purchase the Electric Fund’s portion of the Westside Service Center as well as reimburse the debt service payments made for the facility in the past. The purchase of the building totals $356,895, while the previously paid debt service principal and interest totaled $470,000 and $305,234 respectively. The Water Fund will also assume the remaining liability on the facility, shown as $1,562,500 under non-operating transfers in.The third proposed amendment is to increase the transfer amount from the South Georgetown TIRZ Fund to the Electric Fund by an additional $85,405 for capital infrastructure investment from previous fiscal years. This is also under non-operating transfer in.Fourth, the amendment proposes selling a portion of the City's fiber network owned and operated by Electric to the IT Fund for $645K. A multi-year plan will be developed to sell the remainder to IT and allocate costs to all using departments. Other amendments include recognizing utility revenue ($1.2M), decreasing operating expenses ($440K), decreasing the Return on Investment transfer to the General Fund ($500K), recognizing not moving forward with the Bloomberg Grant ($100K), selling Renewable Energy Credits in the amount of $722K, selling scrap material for an additional $10K, increasing debt service expense by $500 to account for handling fees, and decreasing capital project expense by $160K.

Monday, November 25, 2019

Georgetown Giving Away Your Money Again!

It looks like the City is giving away your money to big corporations again. Check out this agenda item on tomorrows City Council agenda.

In addition to very favorable electric rates, the City is prepared to give away a portion of the City's sales taxes and property taxes. 

Its time to ask your council person how much this is estimated to cost. Don't take "it depends" for an answer! Make them give you a credible estimate.

City of Georgetown, Texas
City Council Regular Meeting
November 26, 2019
SUBJECT:
Consideration and possible action to approve an economic development retention agreement with Citigroup Technology, Inc. -- David Morgan, City Manager
ITEM SUMMARY:
Citigroup Technology, Inc. opened a 300,000-square-foot data center in Georgetown in 2008 and has since become one of the most significant energy consumers in the City. The previous economic development agreement with them expired last year, and a new agreement is necessary to retain the current operations and encourage capacity growth within the existing facility.

Retention Incentive: The all-inclusive rate of $0.062675 per kWh will be applied for energy used at the property beginning November 1, 2019. Following a May 1, 2020 compliance certification, the rate will be reduced to $0.053170 per kWh, and will be reduced a final time to $0.033465 following a compliance certification on November 1, 2020. The requirements to qualify for these rates are to maintain a 12-month average of a minimum of (i) 92% load factor for electricity for the Property; (ii) 6,000 kW of demand usage of electricity for the Property; and (iii) and a minimum of 4,000,000 kWhs of usage of electricity for the Property calculated by City for the prior 12-month period prior to each May 1 and November 1 of each calendar year during the five-year eligibility period.

If Citigroup falls out of compliance with any of the minimum qualifications for the retention or expansion incentive, all incentives would be forfeited for the following 6-month period and an all-inclusive rate of $0.076920 per kWh would be applied until the next compliance certification showing they have met the requirements.
FINANCIAL IMPACT:
Total financial impact would depend on final usage by Citigroup.
SUBMITTED BY:
David Morgan, City Manager
ATTACHMENTS:
Description
Agreement - Citi Retention
Citi Presentation