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!

HOT for HOTDA?

Hot for HOTDA?

Curmudgeon’s got a fever, and is simply so hot for HOTDA, the Heart of Texas Defense Alliance.

Just kidding.

Today, I’m goin’ with HOTDA from the other night's Copperas Cove city council meeting because that’s been tumbling like rocks in my brain for a while.

Howdy, y'all! 

Curmudgeon’s inner jury is still out on the Heart of Texas Defense Alliance. Not hatin’, not lovin’, just wonderin’.

What in the world is HOTDA, dear readers?

Sad to say, garden-variety citizens don’t know, prob’ly don’t care. They're more upset over a Popeye's comin' to town.

Anyhoo, the Heart of Texas Defense Alliance is a tax-exempt 501c6, the services for which it is tax-exempt are, according to its 2016 Form 990 filed with the IRS, the “Promotion of Fort Hood, Texas”. 

HOTDA received $281,520 in contributions in 2016. Among those contributions are funds from various cities and counties in Central Texas, to include Copperas Cove. Those contributions are listed on the 990 form as “Government Grants.”

HOTDA spent $126,757 in salaries for 2016. The main salary is for its executive director, at that time Kenneth Cox, a retired colonel, who was paid $101,000 for that full-time position. His salary is included in the “compensation of current officers, directors, trustees, and key employees” on the form.

Its non-interest-bearing cash was $170,626, and savings and temporary cash investments at the end of 2016 were $478,869.

HOTDA has a board of 13. In 2016, that board included individuals from various cities, which has included in the past Bradi Diaz (also a former EDC board chair) from Copperas Cove. Right now the rep from Copperas Cove is Mr. Clyde Glosson, a former Fort Hood garrison commander.

HOTDA has been around since 2003 when there was “an expressed need by the communities of Central Texas most effected by the activities of Ft. Hood. When HOTDA was first created, the City of Copperas Cove was the paying member. The second year of membership the City and Copperas Cove EDC shared the membership responsibilities equally. The third year of membership, the City Manager of that time requested the CCEDC Executive Director of that time to assume 100% responsibility for the payment of the membership fees.” (This quoted info comes from a March 2015 city council agenda when the council was requested to nominate someone locally to be on the HOTDA board)

Curmudgeon is done with the Cliff’s notes on HOTDA.

So, the hundreds of thousands of dollars question is  – what does the City of Copperas Cove – or The Copperas Cove EDC, depending on the budgets – pay to “belong” to HOTDA?

Or, how much are “they” spending OUR money to receive whatever benefit HOTDA brings to us?

It’s not a members’-only club, not like the Copperas Cove Camber of Commerce, but all you’ll hear from those HOT FOR HOTDA is the “benefit” the region receives from HOTDA.

Right now, to give HOTDA some credit, “they” are “in” on the talks for a future land swap between Copperas Cove and Fort Hood. This land swap would get the city a triangle of acreage between Business 190 and State Highway 9 that the city could use for development – as in, commercial development. But so is/was our city manager. Our Congressman is in on the talks, too! He already introduced a bill to make it happen. 

[CURMUDGEON ASIDE: This isn’t a bad idea. But, right now, we have The Narrows, which is owend by the EDC and that’s been available for THREE YEARS and only has one taker so far. AND then, there’s the property beside Cinergy that’s owned by the enigmatic Copperas Cove Industrial Foundation – not public but private, and they only have ONE piece of that property developed. Oops, a bunny trail. There are also four more pad sites still undeveloped by Endeavor Real Estate that owns the shopping center.|

Lemme get back to HOTDA and what it has cost the EDC and city.

The Copperas Cove EDC in the past paid $50,000 annually to HOTDA.

The EDC paid $50,000 in 2013, 2014, 2015 then dropped to $17,000 after city councilmember Matthew Russell made the question – what are we getting in “bang for our buck” for that $50,000 grand annually?

Mr. Russell pissed a lot of people off by questioning the annual expense and contribution by the EDC. More than $200,000 of our money, collectively, over the years. (That amount was eventually slashed to $17,000 (same as Harker Heights), then cut to $5,630). Tuesday night, the council bumped that back to $17,000.

50-grand of OUR sales tax dollars every year.

Did you know, dear reader, that the EDC is funded by our sales tax dollars? More than $1 million every year? 50-grand compared to a million isn’t much, but –

WHAT DO WE ‘GET’ FOR THAT?

And, Fort Hood isn’t going anywhere. Not sure why HOTDA thinks it needs promoting.

The idea of the EDC and groups like HOTDA is to spur economic development and help our area. I totally get that.

But what do we AS A CITY all together, get for funding HOTDA?

[ANOTHER ASIDE HERE: We (via HOTDA) aren’t really helping Fort Hood. Fort Hood doesn’t care as much about the area’s economic development as much as we think they do.

If they did, why would Fort Hood have built a $47 million PX that it opened in 2015 to encourage service members to stay on post and shop tax-free, instead of shopping off post “on the economy” which would boost local sales tax coffers? 

See this 2015 news article on that grand opening: http://kdhnews.com/business/grand-opening-thousands-flock-to-fort-hood-s-new-px/article_1b30e780-68ac-11e5-83cf-33d7c6124922.html

Fort Hood is constantly building new things/retail experiences for its soldiers and their families, which is great for them. But doesn’t help our local economy much.]

Councilman Dapper-Dan Yancey (Sorry, snark leak - but those TIES! And he’s so dang polished/smooth) made his case for HOTDA the other evening at the council meeting, because he LOVES HOTDA. A lot.

He even showed the payments by the numbers, what other cities etc. “pay” to HOTDA:

Killeen $109,000

Harker Heights $17,000

Copperas Cove $17,000 (requested – Currently $5,630 approved per City of CC budget)

Temple $12,000

Bell County $12,000

Belton $5,630

Coryell County $5,630

Gatesville $5,630

Lampasas $5,630

Lampasas County $5,630

TOTAL $195,150

Curmudgeon here again:

I think we get maybe a little benefit from HOTDA, but because Mr. Russell dared question the EDC budget and Mr. Yancey in 2015 (Mr. Yancey, as you ought to know is the former EDC chair who signed off on these agreements repeatedly), Mr. Yancey took it as a personal offense that someone would question his judgment. As did others.

Don’t forget Ms. Bradi Diazs' blasting the council during another “attack” on the EDC not long after that questioning of the EDC’s spending.

They believe HOTDA is golden and worth every penny, even if it’s 50-grand and what we “get” hasn’t changed even if we spend less.

Mr. Yancey tried to make the case Tuesday night that it was “right” to pay what was “proportionately correct” compared to other cities. As in, because Copperas Cove is closer to Fort Hood, we would see more impact or benefit. 

But funny thing, he has never mentioned being proportionally correct in all the previous discussions about HOTDA, when it was questioned by Mr. Russell WHY Copperas Cove was spending $50,000 and Heights was only spending $17,000.

Things that make ya go hmmm……

Thanks for reading and stickin’ with me. Money talk can be “boring” but in this case it’s vital to look at motives and people’s connections to groups and past track records. 

On a graver note, some could even speculate HOTDA decided to pay its director a six-figure salary just to help a retired army officer pal during his retirement and let’s call it a nonprofit. 

Why so pricey? Why not do something just to be helpful and let’s cover their expenses and a stipend for their time, each trip to D.C. or wherever? Is it an Army-pal cash cow? Yikes! Wouldn't wanna think so.

HOT for HOTDA?

Nah, Curmudgeon believes some of this comes down to a matter of personal pride, y’all, that this clash in the council and EDC even took place to begin with. All because of questions by one of our own elected officials.

Question. Read. Look things up.

Peace, love, and bunnies , y’all!