Self-policing? Nah, MYOB!

No April foolin’ - Curmudgeon hasn’t gone anywhere although there was a lapse of posting for about a week, and last week there were several meetings of the Copperas Cove city council and the EDC. But Curmudgeon does have a life and was busy living it, although this post was just rollin’ through my brain.

Okay, so there was a very enlightening presentation last Wednesday at the Copperas Cove Economic Development board meeting. It was given by a Mr. Carlton Schwab, who is from the Texas Economic Development Council. That group provides training and insight to EDCs all over Texas.

He came to Copperas Cove because the interim executive EDD director Diane Drussell invited him to speak to the council and to the EDC board to educate everyone about what an EDC like Copperas Cove’s may and may not do legally.

Ms. Drussell said there has been a lot of confusion about what a type 4A EDC can and can’t do. She invited him to come and explain and “kill the myths that are out there”, and he is a third party to help everyone understand.

Mr. Schwab gave a brief history of how EDCs work and said in the early 2000s it was the “wild west” as to what cities were spending on.

Interestingly, he said the issue with the economic development sales tax really does not have much of an “enforcement mechanism.” There can be a $1,000 fine by the TX Attorney General’s office or a citizens’ lawsuit that can be filed in state district court, as he put it.

He also said there is not a lot of “policing” of the economic development sales tax and that his group would rather it be “self-policing” for communities and EDCs to “do the right thing.”

He said the EDC sales tax law is “vague” which is both a “great thing” and a “downside.”

Curmudgeon is quoting from his presentation because I do have a point with this explanation and I also don’t want people to say I’m pulling this stuff outta my rear end. Which, Curmudgeon is sure of, some people think anyway because they’re not hip on self-policing unless it is something THEY WANT. More to come on that farther down.

Come into my time machine and let us travel back to the Sept. 1, 2015 Copperas Cove city council meeting. It will shed a lot of light on things, that I am SURE councilman Charlie Youngs will enjoy because he is so fond to point to the past.

The self-policing that Mr. Schwab speaks of is not popular in Copperas Cove, not where the EDC nor where the chamber of commerce is. People get upset when you question them and what they are doing.

HELLO, Y’ALL ON THE EDC – YOU REPRESENT US VOTERS AND YOU NEED TO BE HELD ACCOUNTABLE BY THE COPPERAS COVE CITY COUNCIL. Caps intended. Just wanted to make sure y’all understand it.

So, during the 1 September 2015 city council meeting, the then-chair of the CCEDC, dapper Dan Yancey who is now place 3 on the City Council, was thoroughly grilled by councilman Mark Peterson about the cost for HOTDA.

Ah, I guess grilled is a bit extreme.

Mr. Yancey was “questioned.”  

Why?

Evidently, the Heart of Texas Defense Alliance was BILLING the Copperas Cove EDC for $17,000 BUT for WHATEVER REASON, the EDC was paying HOTDA $50,000. Per year.

Um, that doesn’t add up.

Why was the EDC paying $50,000 for something they were only invoiced $17,000?

(If you want to know what other cities pay, please refer to my other post Hot For HOTDA? in which Mr. Dapper briefed fellow councilmembers on what they pay to belong to the members-only HOTDA.

I will now quote the direct minutes transcript from that 1 September meeting:

Mr. Yancey stated the budget for HOTDA is $50,000.00 and HOTDA made a presentation to the EDC which most of Council attended.  Mr. Yancey stated the Copperas Cove Economic Development Corporation felt HOTDA brings a lot of value and the Board made a motion to approve the continued contribution of $50,000.00 to HOTDA.

Council Member Peterson questioned how much HOTDA invoices for.

Mr. Yancey confirmed the time period Council Member Peterson requested the invoices for.   Mr. Yancey confirmed the invoice paid by the City of Copperas Cove in 2005 was $15,000.00 and the City of Copperas Cove requested that the Economic Development Corporation continue the responsibility.  The Economic Development Corporation felt that HOTDA should be more closely involved with development in Copperas Cove.  Mr. Yancy stated the invoice that has to be paid to remain a member of HOTDA is $17,000.00.

Council Member Peterson stated Mr. Cox stated the City of Copperas Cove should be paying $17,000.00 the same as Harker Heights, TX.  Council Member Peterson stated the Economic Development Corporation is not being good stewards of the tax payers' money since it is paying $33,000.00 more than what it is invoiced. Council Member Peterson does not disagree that HOTDA does a great job for the City. Council Member Peterson stated when the invoice comes in for $17,000.00 that is the amount that should be paid.

Mr. Yancey stated that amount was discussed with HOTDA and the Economic Development Corporation felt there was more that was going to be required than other surrounding cities and City of Copperas Cove has the most to gain.

Council Member Peterson stated in the By-laws Section 1.04 states the anything that exceeds $25,000.00 or more should be approved by Council and to increase it was never brought before Council.

Mr. Yancey stated it was approved each year.

Council Member Peterson stated the first one was executed in 2004 and then there is not another executed contract until October 2014. Council Member Peterson stated the line item should be changed back to $17.000.00.

Council Member Duncan questioned if it was known the invoice was for $17,000.00 and payment of $50,000.00 had been made.  

Mr. Yancey stated internally he was not aware of the invoice for $17,000.00.  Mr. Yancey discussed the item as a Board and the Board felt it was the most prudent action to take.

Mr. Yancey stated the Budget has been brought to Council for inspection.

(CURMUDGEON HERE – CHECK THIS OUT, Y’ALL -)

Council Member Peterson stated he agrees and disagrees the difference is that this year the Council required the Economic Development Corporation Budget be presented in accordance with the way the City presents theirs and that is why this year it became transparent.

Council Member Peterson stated he would like that item changed to $17,000.00.

Mr. Yancey stated that can be brought back to the Economic Development Corporation Board.

Council Member Russell stated he is still looking at what benefit the City of Copperas Cove is getting from HOTDA.

Council Member Russell stated he recommends Council direct the CCEDC to provide the City Council its future expenditures thresholds for Council approval.  Council Member Russell states $25,000.00 does not allow the checks and balances that Council needs.

So, where’s the rub? The fact that the EDC was putting things through the council, as they should, but as soon as there were council members asking for more information and detail, this came to light.

Back to the present – at the City Council and EDC joint meeting on Wednesday, councilman Kirby Lack whipped out a letter which he said the EDC said they’d give the HOTDA $33,000 more because they were doing such as great job, as a “bonus.”

It's the Peanut Gallery! Except for one, who seems to have some good information.

Curmudgeon sez: I’d like to see that letter in its entirety.

But self-policing? Nah, the Good Old Boys Club doesn’t like that. To them, asking questions is bad, and being negative.

We SHOULD be policing! Anyone from the olden days remember the No-Touch fiasco of the early 90’s when the EDC co-signed for loans for a company that made lots of promises and then folded and skipped town?  

Folks, we desperately NEED those primary jobs in our area – the $15 per hour minimum job.

But we are continually spinning our wheels in a pissin’ contest led by ax-swinging Charlie Youngs, who during the EDC and city council joint meeting was bemoaning the good old days of the EDC. 

I’m guessing it was his heart's cry for the days in which nobody on the council asked questions and just let the EDC do its thing.(insert violin music. Dang, another snark leak. Sorry-not-sorry)

I agree with Mr. Youngs when he said: “We have no staff, no recruiting business plan, not retention plan, no marketing plan for our city, no building for our EDC.”

I don’t hold the council responsible. I hold the EDC and its board itself.  Oh, wait! Yes, I do hold the council responsible. They wanted more accountability than in the past and everyone involved who didn't see anything wrong bucked that accountability!

On a positive note: current board chair Adam Martin seems quite smart and knowledegable and at Wednesday's meeting, it was the most he's spoken at one time since he's been on the board. Use your voice, Mr. Martin! Please. 

I say, let the EDC do their thing but keep an eye on them.

 THAT’S OUR SALES TAX DOLLARS, VOTERS! 3/8 of one cent, more than ONE MILLION DOLLARS EVERY YEAR, that has been pretty much sitting there for a few years.

LET’S LET THE EDC MOVE FORWARD BUT LET’S KEEP AN EYE ON THEM.

Two words: citizen lawsuit.

Peace, love, and bunnies, y’all!