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Sunday, June 1, 2008
Judge grants restraining order against critic of Denton mayoral candidate
Denton mayoral candidate Mark Burroughs asked a judge Friday to stop a vocal critic from printing more ads attacking his campaign.
A state district judge granted Mr. Burroughs a temporary restraining order against the Watchdog Society of Denton and its leader, political activist Bob Clifton. A hearing to consider extending the order was set for June 12 – two days before the runoff election between Mr. Burroughs and incumbent Perry McNeill.
Mr. Clifton, who lost a mayoral bid in 2006, denied any wrongdoing.
He also criticized the restraining order, signed by visiting Judge Monte Lawlis.
"It's such a blatant violation of First Amendment rights it's unbelievable," Mr. Clifton said. "This is political desperation, because what he is doing is trying to stifle the truth."
The Watchdog Society funded two mailers before the May 10 election questioning Mr. Burroughs for alleged conflicts of interest. Mr. Burroughs, 50, a lawyer and former City Council member, said the mailers violated state laws that govern reporting of campaign spending.
"The intent [of the restraining order] is to prevent similar flaunting of the election laws," Mr. Burroughs said.
The Watchdog Society had not registered a campaign treasurer with the city secretary's office as of Friday afternoon. The state election code prevents political committees from spending or accepting more than $500 unless they file a campaign treasurer appointment.
Mr. McNeill, 72, a retired professor and engineer seeking a second term as mayor, said he was unaware of Mr. Burroughs' lawsuit and couldn't comment in detail.
Mr. Clifton has been working against Mr. Burroughs for months as part of a campaign against officials backed by former Mayor Euline Brock, Mr. McNeill's predecessor.
In April, Mr. Clifton sued unsuccessfully to keep Mr. Burroughs, Mr. McNeill and another candidate off the ballot for alleged violations of the city's term limits. A judge allowed the candidates to stay on the ballot, but the lawsuit over their eligibility is pending.
Later, the Watchdog Society funded two mailers questioning Mr. Burroughs over his law firm's government contracts. His firm, Sawko & Burroughs, collects delinquent taxes for many local governments, including the city of Denton, which some called a potential conflict of interest.
Mr. Burroughs has repeatedly said the contracts aren't a conflict because of how his firm is paid. The money comes from fees levied on taxpayers' past-due amounts, not from government coffers.
The judge's order Friday prevents the Watchdog Society from raising funds or distributing any materials related to the mayoral race. It also bars Mr. Clifton from collecting money or distributing political materials "without first complying with all applicable election laws."
Read more in the Dallas Morning News
Thursday, February 28, 2008
Art Hall Accepts Thousands From Valero PAC, Employees
Vince Leibowitz - February 28, 2008
AUSTIN--Former San Antonio City Councilman Art Hall has accepted more than $5,000 in contributions from Valero Energy's political action committee and several of its employees, according to records from the Texas Ethics Commission.
On February 8, Hall received a $5,000 contribution from the Valero Political Action Committee, a PAC notorious for giving thousands of dollars to Texas' most conservative Republicans-- and Railroad Commissioner Michael L. Williams, the man Hall and Dale Henry (D-Lampasas) seek to replace in the November general election.
In addition to the $5,000 from Valero's PAC, Hall also took more than $2,000 from Valero employees and attorneys in late January and February. According to Hall's most recent filing with the Texas Ethics Commission, he received the following contributions from Valero employees and attorneys:
Robert Bower, Valero Attorney, $500 2/23
Theodore Guidry, Valero employee, $500, 1/26
Diane Hirsch, Valero Attorney, $300, 2/23
Martin Loeber, Valero Attorney, $500, 2/23
Rich Walsh, Valero Attorney, $1,500, 2/23
Parker Wilson, Valero Attorney, $500, 2/23
"The money that Art Hall has accepted from Valero's PAC and its employees is especially troubling given the fact that he is very connected to Valero through the fact that his wife is an attorney for Valero," said Vince Leibowitz, campaign director for Dale Henry, Hall's principal opponent.
According to Hall's Personal Financial Statement on file with the Texas Ethics Commission, Hall's wife owns between 5,000 and 9,999 shares of stock in Valero which, if sold, would represent a net gain of $10,000 to $24,999.
"All of this is especially disturbing given the fact that Art Hall is actually getting advice from Valero on what constitutes a conflict of interest for his campaign," said Leibowitz.
At a forum in Decatur on January 29, Hall was asked if he believed it constituted a conflict of interest that his wife, Stephanie Hall, is an attorney for Valero considering the Railroad Commission regulates the oil and gas industry. Hall told the audience that he had contacted Valero and that he was advised by the company that her work would not constitute a conflict of interest for him.
"Art Hall is getting ethics advice and money from Valero energy. What else is he getting from them? Are they advising him on energy policy as well? Art Hall represents no departure from the current rubber-stamp culture at the Texas Railroad Commission where Commissioners take thousands of dollars from oil company PACs and their employees and then give them whatever they want without regard for the best interest of Texas consumers or the environment," Leibowitz said.
"Valero's PAC is notorious for giving large sums of money to Republicans and pet conservative causes," Leibowitz said. "Valero has given Railroad Commissioner Michael L. Williams $20,000. Now Art Hall is taking Valero's money and telling Texans that he will bring 'balance' to the Texas Railroad Commission. What kind of 'balance' is that, exactly? The kind of 'balance' where Hall will simply be another hand out taking money from the oil industry? That's not 'balance,' that is merely more of the same," Leibowitz continued.
Valero has given incumbent Railroad Commissioner Michael L. Williams $10,000 on two occasions: once less than a year ago on June 28, 2007, and once on June 7, 2002. Valero has also contributed to some of Texans most anti-consumer, counter-progressive Republicans and Republican causes.
The company's PAC gave $15,000 to Tom Craddick's "Stars Over Texas" Leadership PAC ($10,000 on 10/11/06 and $5,000 on 10/25/04), and $30,000 to Speaker Craddick's personal campaign account since 2004 ($10,000 on 11/08/05 and $10,000 on 11/5/07, and $10,000 on 11/10/04). A small sampling of Valero's contributions to Republicans include:
Texas Conservative Coalition ($2,500 on 9/10/07)
Former State Rep. Joe Nixon ($1,000 on 3/5/04)
Lt. Governor David Dewhurst ($10,000 on 11/6/03)
Attorney General Greg Abbott ($10,000 on 7/11/03)
Railroad Commissioner Victor Carrillo ($5,000 on 1/29/04)
U.S. Senator John Cornyn ($2,500 while Cornyn was Texas' AG on 11/7/2000)
State Rep. Phil King ($2,500 on 10/23/07)
Texas Agriculture Commissioner Todd Staples ($5,000 on 11/27/07)
Former State Rep. Talmadge Heflin ($1,000 on 11/9/04)
The Valero-tied contributions aren't the only suspect contributions Hall has received as a candidate. While on the San Antonio City Council, Hall accepted money from executives and employees of the HB Zachry company, a San Antonio-based company which has paired with Spanish company Cintra and, in March 2005, signed a comprehensive development agreement authorizing $3.5 million in planning for the first phase of the controversial Trans-Texas Corridor. Hall accepted a $500 contribution from HB Zachry on April 26, 2005 and a $250 contribution from J.P. Zachry on August 8, 2005. As a San Antonio City Councilman, Hall also took money from Valero's PAC on May 3, 2005 ($500).
At the January 29 forum in Decatur, Hall also failed to state a position on a question that asked whether or not he favored continued development of the Trans-Texas Corridor, which will include "designated utility zones" which will facilitate the transport of oil and natural gas and could have a significant negative impact on Texas' environment and groundwater.
Henry faces Art Hall of San Antonio and Mark Thompson of Hamilton in the March 4 Democratic Primary. The winner of the March 4 Democratic Primary will face Commissioner Michael L. Williams in the general election.
Saturday, February 16, 2008
Texas House Elections Committee Public Hearing: Examines lobbyist disclosure and use of state e-mail for political communications
TIME & DATE: 1:00 PM, Monday, February 25, 2008
PLACE: E2.028
CHAIR: Rep. Leo Berman
The committee will hear invited testimony on the following charges:
Study the exemption in the Texas lobby contingent fee ban, which currently permits contingent fees and does not require lobby registration, for influenceing the purchasing of goods or servisces by a state agency.
Consider whether this exemption should be amended or repealed.
Research the current Texas law prohibiting the use of public resources
for political advertising, and determine whether the law needs to be amended to clarify that publicly funded e-mail systems may not be used for political communications.
Thursday, January 10, 2008
Ashcroft Deal Brings Scrutiny in Justice Dept.
WASHINGTON — When the top federal prosecutor in New Jersey needed to find an outside lawyer to monitor a large corporation willing to settle criminal charges out of court last fall, he turned to former Attorney General John Ashcroft, his onetime boss. With no public notice and no bidding, the company awarded Mr. Ashcroft an 18-month contract worth $28 million to $52 million.
That contract, which Justice Department officials in Washington learned about only several weeks ago, has prompted an internal inquiry into the department’s procedures for selecting outside monitors to police settlements with large companies.
The contract between Mr. Ashcroft’s consulting firm, the Ashcroft Group, and Zimmer Holdings, a medical supply company in Indiana, has also drawn the attention of Congressional investigators.
The New Jersey prosecutor, United States Attorney Christopher J. Christie, directed similar monitoring contracts last year to two other former Justice Department colleagues from the Bush administration, as well as to a former Republican state attorney general in New Jersey.
Officials said that while there had been no accusations of wrongdoing on the part of Mr. Christie or Mr. Ashcroft, aides to Attorney General Michael B. Mukasey were concerned about the appearance of favoritism.
Mr. Mukasey, a former federal judge who was sworn in as attorney general in November, has vowed to remove political considerations from decision-making at the department in the wake of a series of scandals under his predecessor, Alberto R. Gonzales.
Mr. Ashcroft was awarded the contract last fall at the direction of Mr. Christie as part of his office’s settlement of criminal accusations against Zimmer Holdings and four smaller firms accused of paying kickbacks to doctors.
A spokesman for Mr. Ashcroft said that the Ashcroft Group had not lobbied for the contract but was pleased by the referral.
The disclosure of the monitoring agreement, in which Mr. Ashcroft’s fees are paid directly by Zimmer, prompted Democratic lawmakers from New Jersey to question if the contract was new evidence of political favoritism in the Bush administration’s long-embattled Justice Department.
Justice Department officials said the internal inquiry by the Criminal Division began several weeks ago with no public announcement.
Department officials said the review was expected to result this year in formal guidelines to prevent the appearance of conflicts in the choice of monitors to oversee out-of-court settlements reached between federal prosecutors and companies accused of wrongdoing.
In the Bush administration, federal prosecutors have increasingly relied on out-of-court settlements with large corporations in criminal investigations that in the past might have resulted in indictments and trials. The settlements often call for outside lawyers to be retained by the companies to monitor the agreements. The contracts call for the lawyers to monitor the company’s compliance with the settlements through financial audits and other types of internal investigations.
A new study by two Texas lawyers, Lawrence D. Finder and Ryan D. McConnell, found that the number of so-called deferred-prosecution or nonprosecution agreements between the department and large companies grew to 35 last year from 5 in 2003.
Often, the names of corporate monitors are not made public. The internal inquiry started after Zimmer Holdings revealed in filings with the Securities and Exchange Commission in late October that it had hired Mr. Ashcroft’s consulting firm, based in Washington, to monitor its settlement of criminal charges based on accusations of kickbacks to doctors involving the company’s knee and hip implants.
The firm said Mr. Christie had directed it to hire Mr. Ashcroft. Mr. Christie has acknowledged that he chose Mr. Ashcroft for the assignment. The disclosures in Zimmer’s filings about Mr. Ashcroft were first reported several weeks ago by The Star-Ledger of Newark and other New Jersey news organizations.
Mr. Christie directed similar contracts in settlements with other medical-supply companies to two other former Justice Department colleagues — David N. Kelley, the former United States attorney in Manhattan, and Debra Wong Yang, his counterpart in Los Angeles — and to David Samson, the former Republican attorney general in New Jersey.
In a telephone interview on Wednesday, Mr. Christie said he chose Mr. Ashcroft and the others for the monitoring assignments because they had impeccable legal credentials and he knew and trusted them.
“It’s really important that the working relationship between this office and the monitors is very, very close,” he said. “I can’t tell you how much work we do with these monitors.” He said he had selected Mr. Ashcroft to work with Zimmer, the largest of five companies in the criminal investigation, because “I knew he was somebody who understands these issues and would be taken seriously by the company as an authority figure.”
Mr. Christie has disputed accusations raised by Democratic lawmakers in New Jersey that it was a conflict of interest for him to direct large, no-bid contracts to former colleagues and friends, but he has referred those questions to the Justice Department in Washington.
Department officials said they had no formal comment but noted that the monitoring agreements were not given only to Republicans and that Mr. Christie’s recommendations of outside monitors in other large corporate investigations had been praised.
Although he was a prosecutor in the Bush administration, Mr. Kelley has registered as a Democrat in the past. Mr. Kelley, who has done legal work for The New York Times, did not respond to e-mail messages on Wednesday. Mr. Samson and Ms. Yang did not return phone calls.
The dollar value of the contracts obtained by Mr. Kelley, Ms. Yang and Mr. Samson is unclear, since the medical-supply companies they are monitoring have not revealed those details, suggesting that they are smaller than Mr. Ashcroft’s.
Under the settlements with the Justice Department, the companies negotiate the fees with the monitors themselves, a situation legal scholars say has the potential for abuse because companies might be overly generous to encourage leniency.
Department officials said that there were few internal guidelines for hiring independent monitors and that Mr. Christie was not required to seek approval from the Justice Department to name Mr. Ashcroft and the others and had not done so.
A spokesman for Mr. Ashcroft’s firm, Mark Corallo, said that Mr. Ashcroft was an obvious choice as a monitor.
“I know John Ashcroft, I know his capabilities,” Mr. Corallo said. “No matter what people think of his politics, he ran an unbelievably efficient operation at Justice as a manager. He understands the law. He understands how to manage an enormous organization.”
He said that Mr. Ashcroft knew nothing about the assignment until the possibility was raised by Mr. Christie, who was confirmed as United States attorney in 2002, shortly before Mr. Ashcroft was sworn in as attorney general. Mr. Christie had been a lawyer in private practice and a Republican fund-raiser in New Jersey.
Mr. Corallo said that Mr. Ashcroft’s firm had hired more than 30 employees and outside advisers, including accountants and lawyers, to oversee the monitoring contract and that Mr. Ashcroft had traveled to Indiana several times for the assignment.
“It’s taken a large personal commitment from him,” Mr. Corallo said, adding, “In coming months, people will realize that Chris Christie did exactly the right thing in choosing these folks to be monitors.”
In its filing with the Securities and Exchange Commission, Zimmer said it had agreed to pay the Ashcroft firm a monthly fee of $750,000, and to reimburse it for expenses that were expected to total $150,000 to $250,000 a month.
Read more in The New York Times
Monday, October 22, 2007
City of Mansfield changes Debt Collectors due to questionable political campaign contribution
By ROBERT CADWALLADER - Special to the Star-Telegram - Oct. 22, 2007
MANSFIELD -- The City Council tonight will consider hiring a Round Rock-based law firm to replace the city's fired debt collector.
The staff has recommended McCreary, Veselka, Bragg & Allen, which collects delinquent property taxes or court fees and fines for about 450 taxing jurisdictions statewide. The firm has no collection clients in Tarrant or Dallas counties.
The council terminated the city's contract with Linebarger, Goggan, Blair & Sampson of Fort Worth on Sept. 28, taking issue with a $2,000 campaign contribution the firm made to Mayor Barton Scott after his election in May. The move apparently did not violate local or state campaign finance laws, but the council called it inappropriate and also voiced concerns about investigations of Linebarger contributions in other cities.
Scott, who blamed council politics for Linebarger's firing, said he will question the recommendation for McCreary because the staff did not conduct a full selection process, including advertising for proposals.
"When we start playing political games with vendors, we are not acting in the best interests of the citizens," Scott said.
Staff officials said they didn't advertise for proposals because the process would have taken at least 90 days. The city has no one collecting back taxes.
As a corporation, McCreary is prohibited by law from making political contributions, a McCreary official said. Although individual employees are allowed to donate to local candidates, no employees will donate to Mansfield public officials, President Harvey Allen said.
That could become the law in Mansfield anyway. A council subcommittee is considering revising the city's ethics ordinance.
"I will tell you, we as a firm get virtually no solicitations for campaign contributions from anybody," Allen said. "And I think that's because we have the reputation of not doing it."
Linebarger, as a limited liability partnership, is allowed to make political contributions.
Read more in the Fort Worth Star Telegram
Saturday, September 29, 2007
City staffers accused of taking sides on Trinity toll road
Top Dallas city staff members appear to have a cozy relationship with leading advocates for the Trinity River toll road, a series of e-mails among them shows. The disclosure has infuriated toll road opponents and caused City Manager Mary Suhm to caution her top deputies about politicking on the job.
For instance, in a July 6 e-mail, Rebecca Dugger, director of the city office overseeing the Trinity project, encouraged toll road supporters to call a radio talk show to give a positive view of the project.
"I am not going to call. Hope you can," Ms. Dugger wrote in response to a request that she call the show.
Twenty days later, toll road backer and former City Council member Craig Holcomb asked Ms. Dugger if she could assist him in making a presentation before the Oak Cliff Chamber of Commerce.
"I would LOVE to partner with you. ... Do you want me to attend as a backup/visual eye candy?" Ms. Dugger responded.
And in an Aug. 15 e-mail to Ms. Suhm, Ms. Dugger and other staff members, Mr. Holcomb felt free to take a swipe at council member Angela Hunt, the toll road's chief opponent.
The e-mail was intended to arrange a meeting between city staff and the nonprofit Trinity Trust organization and asked if the group could meet at the Original House of Pancakes. Mr. Holcomb liked the location "[f]or nostalgia's sake, to remember the days before AH," he wrote in reference to Ms. Hunt.
Mr. Holcomb said Friday that he had never asked the city staff to do anything inappropriate and that the staff never had.
He acknowledged being friends with Ms. Dugger and many others at City Hall, and he made no apologies for that.
"If you work with somebody for five years on a project, you get to be friends," he said. "It's deeply troubling to me that because you share a joke with someone in an e-mail, that anyone would question your integrity."
Regarding his joke about Ms. Hunt, he said, "One council member out of 15 wants to derail the Trinity project, and I don't see anything wrong with being nostalgic for a time when that was not the case and we could all work together."
City staffers are prohibited from advocating for one side during an election, and Ms. Suhm said her staff has been careful to avoid taking a position on the Nov. 6 referendum on the toll road project.
But long-standing friendly relationships between some staff members and toll road proponents have at least led to the appearance that the city has gone out of its way to assist those who would see the referendum fail so the road can be built.
Former Dallas City Council member Donna Blumer, who opposes the toll road project, said she was shocked by the e-mails.
"They're pretty damning ... city staff is collaborating with the Vote No! campaign," she said.
Ms. Hunt said that the e-mail exchanges "undermine any argument the city has that they're being neutral on this issue." But she does not plan to pursue the matter through legal or ethical channels.
"I'm focused on November 6th, getting our referendum passed and making sure we get the park we want and not a giant toll road in a floodway. Going forward with it doesn't win this election," Ms. Hunt said.
Mayor Tom Leppert, who said he had not seen the e-mails in question, said the city staff should remain neutral and has tried to do so.
Voters will decide Nov. 6 whether a high-speed highway can be built inside the Trinity River levees. A yes vote prohibits such a highway. A no vote would allow the city's plans to go forward.
The Dallas Morning News obtained hundreds of e-mails originating at City Hall regarding the toll road project, using the state's open records law. The vast majority were between city staff and toll road proponents. Only a handful were from those who oppose the toll road and did not involve requests for information.
Defending the staff
Ms. Suhm broadly defended her staff's handling of what she said has become a delicate, even precarious, balancing act on the Trinity project.
City staffers are required to help the city realize a "Balanced Vision Plan," ordered by the City Council, that calls for the construction of a toll road between the Trinity levees downtown, Ms. Suhm said.
But they aren't permitted to advocate for or against a referendum that, if successful, would undermine that plan.
Further complicating matters is the fact that leading referendum opponents are City Hall insiders, from former council members and mayors to a former city manager.
"It's a hard line. We talk about it all the time," Ms. Suhm said.
As recently as Tuesday, Ms. Suhm cautioned her top deputies about how to handle requests for information about the Trinity project, she said.
"I have been completely wound up about this since the start. I have been a major league nag," she said.
As for Ms. Dugger's e-mails with Mr. Holcomb, Ms. Suhm acknowledged the two are personally close and said that led to an overly friendly tone in the e-mails between them.
"I talked to her. I said, 'I know y'all are friends, but you need to keep the friendship part out of the business part,' " Ms. Suhm said.
She added that while she might have handled the matter of the radio talk show differently, she believes Ms. Dugger acted appropriately when she declined to go on the show.
"I would be concerned if she had called [in]," Ms. Suhm said.
Ms. Dugger also defended her correspondence.
"My basic concern is for the facts to be told. If I feel like the facts are not being told, and if others have the facts, then they should get those facts out there," she said.
Other e-mails
Ms. Suhm also was the recipient of friendly e-mails from toll road backers seeking help or information.
On July 5, she received a request from former City Manager Jan Hart Black, now the president of the Greater Dallas Chamber of Commerce.
"We will need a presentation from city staff on the issues and consequences of a successful election," Ms. Hart Black wrote.
Ms. Suhm said Friday that the city regularly fulfills requests for presentations on the Trinity project. Ms. Hart Black also defended the request.
"The city has a responsibility to respond and to provide us information and answer our questions. We request information from City Hall on many issues," Ms. Hart Black said in a prepared statement. "I am sorry that Angela Hunt is attacking city staff for simply doing their job."
In a July 18 e-mail, toll road backer and former City Council member Donna Halstead asked Ms. Suhm to personally review a poll intended to gauge support for the Trinity River toll road plan.
Ms. Halstead said the request was one of many she has made of Ms. Suhm regarding a variety of topics.
"Mary and I have known each other for many years. I ask her and others at City Hall questions all the time," said Ms. Halstead, who heads the Dallas Citizens Council. "I'm very lucky that they feel comfortable giving me answers."
Ms. Suhm acknowledged receiving Ms. Halstead's e-mail regarding the poll. She said she reviewed the poll for factual errors.
"If the other side came and asked us questions or asked us to speak about [the project], we would," she said.
City staff members are permitted to answer factual questions from the public regarding city projects, but Ms. Hunt questioned Ms. Suhm's decision to review the poll.
"I find it unusual that the city manager of the ninth-largest city in America is doing fact-checking on a partisan poll. ... What's she doing? Spell-checking?" Ms. Hunt said.
Texas Ethics Commission attorney Tim Sorrells said e-mail traffic of this nature doesn't appear to fall under his office's purview.
City Attorney Tom Perkins, meanwhile, declined to comment on his office's involvement, if any, in such a matter. Mr. Perkins did note that "we have certainly discussed with staff the permissible parameters of what they should or shouldn't do in a campaign."
Mr. Leppert, meanwhile, said he wants to make sure there isn't any appearance of bias on the part of the city's staff.
"My view is everybody is doing their best to play this thing as neutral and down the middle as they can," he said.
Mr. Leppert, who has become the major voice of the toll road supporters, said that it doesn't help his cause to have the staff seen as tilting toward one side or the other.
"I don't want it to be an issue," he said.
THE RULES FOR CITY OFFICIALS, EMPLOYEES
Dallas Administrative Assistant City Attorney Jesus Toscano sent a four-page memorandum to the City Council, City Manager Mary Suhm and her assistant city managers in August explaining what actions city officials and employees may take during the Trinity campaign. Mr. Toscano wrote that employees:Dave Levinthal
• May not use city facilities, personnel, equipment or supplies in support of or in opposition to the measure, except to the extent and in accordance with the terms that those city resources are generally available to the public.
• May be involved in political activities outside of work that support or oppose the measure, but cannot use their city titles.
• May participate in fundraising activities supporting or opposing the measure in his/her individual capacity, but not on city time.
• May not use the prestige of their position with the city on behalf of a political committee. This also applies to a city measure, if political committees have been formed to support or oppose the measure.
• May make personal contributions to political committees supporting or opposing the measure.
• May place campaign signs in their yards and on the premises of their homes supporting or opposing the measure.
• May display campaign bumper stickers supporting or opposing the measure on their personal vehicles (but not on any city vehicles under the employee's control).
• Should not push any subordinate employee to participate in an election campaign, contribute to a political committee, engage in any other political activity or refrain from engaging in any lawful political activity. A general statement merely encouraging another person to vote does not violate this provision.
Read more in the Dallas Morning News
Sunday, July 22, 2007
TxDOT’s Sunset Review Kick-Off Party & Media Blitz
In what looks like a media blitz to show that TxDOT was right all along, and to justify it’s continuing existence in relation to it’s upcoming Sunset review, TxDOT this week is holding it’s Texas Transportation Forum toll-gasm conference.
Much of the focus has been on a draft report of a soon to be released “independent” report - TxDOT paid $3.5 million for the report - that says:
Texas needs more toll roads, and drivers should pay more to use them, an external audit of the Texas Department of Transportation suggested Wednesday.
(Kuff’s response):
I like that “priced to reflect the value - including the time saved” line. Because, of course, if you keep your toll roads expensive enough to guarantee that they’re never crowded, then it’s a self-perpetuating justification. Better yet, if you ensure that the remaining non-toll roads are sufficiently decrepit and jammed up, you’ll also have a built-in reason to keep raising tolls in the future. What more could a local toll road authority want?
A TxDOT paid for “independent” audit that reaffirms TxDOT’s toll every road stance. That’s just a happy coincidence for TxDOT I’m sure. Although the forum is billed as a chance to, “Experience the vision. Share your ideas. Join the conversation. Keep Texas moving”, in reality it appears to be more a way to bring lawmakers and those who make money off of government transportation deals together:
…the need for toll financing and other alternatives to gasoline taxes is a major theme of the conference that brought together public officials and private contractors from across the state.
The audience that packed the Hilton ballroom found in each chair a Texas Department of Transportation brochure titled “TxDot: Open for Business — A Guide to Accelerating Transportation Projects.” [.PDF]
The booklet explains various strategies approved by the Legislature in 2003 to supplement tax revenue with toll financing, public-private partnerships and regional mobility authorities.
The conference coincided with the release of an audit by TxDOT, suggesting the state’s best chance for keeping up is to build more toll roads with higher fees.
Now the report, as Move It! explains, has one point that may be worth further exploration. It’s a plan based on making ALL drivers pay a user fee based on vehicle miles traveled:
A long-term answer is to switch from a tax on gas to a tax on how much people drive, called a vehicle miles traveled charge or VMT charge. Oregon finished testing such a system in March and a report is due this summer.
“Texas needs to lay the ground work to move to a VMT charge over the next 20 years,” the report says. (see Oregon Test [.PDF]).
The technology for the implementation may still be a little ways off but this has the potential to be a fair, broad-based tax that charges drivers for the amount of driving they do.
One last thing. Gov. Perry was quoted as saying this:
And the fuel tax “has problems on its face,” he said. Unlike toll roads, which typically have a free alternative, fuel taxes are paid by all drivers, and hit rural residents hardest.
“The boys out in Lubbock, Odessa and Marfa really don’t see the benefit in it for them,” he said.
When Gov. Perry runs around the state telling Texans that we have to build the Trans-Texas Corridor, and take away precious farmland and family legacies, he says it must be done to benefit all of Texas. The “conservative” staple excuse of using economic development as the reason when it benefits their cause. But in those sentences he’s refuting that statement by saying that toll roads only benefit urban/suburban Texans. Which is it governor? Either our highways are built for the benefit of ALL Texans and should be funded by ALL Texans or they shouldn’t. You can’t have it both ways.
Again I’ll refer you back to EOW’s earlier post on the “independent” audit, It’s Not The Size Of The Shorfall, It’s How It’s Made Up That Matters. No matter how we want to slice it, the ultimate question is, How do Texans want to pay to make up for the disrepair and neglect our state leaders, and ultimately ourselves, have allowed our transportation infrastructure to fall into in this state? EOW believes the best way to do this is in the fairest, and most broad-based, way possible, which at this time happens to be raising and indexing the gas tax.
Read more
Sunday, June 17, 2007
Citizen's observations of Thursday June 14 RTC meeting and presentations by NTTA and CINTRA
I attended the June 14 RTC Public Meeting.
I heard no mention of either the NTAA nor Cintra bid presentation regading repaying the taxpayers of the DFW region for money already expended for the SH 121 right of way.
I also heard no mention if the NTCOG or RTC will need to repay those funds to other entities.
I was shocked ethics and conflict of interests were not addressed in a knowledgeable way. · It seemed amazing that legal opinion is needed less than 4 days before a major decision is made for the region.
· Being a member of the NASCO or NTAA Board to me means a member should recluse themselves in the vote.
· I do not believe a vote should be taken prior to all 40 members filling out the necessary ethic and conflict of interest forms and putting them on the internet.
· The City Councils and the public have the right to know what Boards and Commissions a member holds office in or serves on the Board of Directors, what businesses they and their family own, as well as stocks relating to contracts let out for bid.
I was also amazed at the deceit in the numbers in the Cintra slide presentation.
· The answers to the questions asked and answered by both Cintra and Price Waterhouse should have been reflected in the slide presentation.
· Phony numbers are not something to rely on.
· If the numbers presented at this late date cannot be counted on, why should any future numbers be trusted?
· In the Cintra presentation, interoperability (a pass through) was presented as income.
· Federal taxes were presented in the slideshow as income, and the mysterious 20-30 billion dollar "future development" is not a tangible return, especially when Mr. Munos DID NOT AGREE to commit to future projects.
The PriceWaterHouseCooper speaker when asked about it by a Board member said "it is a wash" between the two bidders.
· Most importantly, the multiplier rate stated ($ 1:3) was not backed up with facts.
· This is especially true as most multiplier effects depend on the money remaining in the local economy .
· With the money simply collected then sent to other US states and overseas, the multiplier effect lessens because loan funds are not as available.
· The number of jobs provided was not broken out on whether the jobs would be spread over the lifetime of the contract or in the immediate future.
The NTAA presentation was short on substance. There was nothing that was said that seemed firm enough to make a decision on. I recognize that they did not have a lot of time to prepare, but their statement "that we will not seek federal funds today" reminded me of the Dart pledge
· I am concerned about the raising of tolls on other roadways and possible lessening of maintenance to build SH 121.
· I am concerned on whether the NTAA is using the highest construction standards, not the lowest.
· I liked the NTAA bid better because local accountability will be possible, there will be federal laws followed, and the books will be audited every three months.
I have the following questions:
· Will the NTAA bid lower the rate of toll increases or
will the the same .145 to 58 be in place?
· Why would a business move to Dallas or Tarrant County if businesses and employees will have to devote a significant portion of transportation dollars to toll costs?
Is there a commitment in the contract that a certain percentage of the money remain in the banks locally for loans?
Friday, June 15, 2007
Board members and conflict of interest ethics violations
(4) describe each affiliation or business
relationship with a corporation or other business entity with
respect to which a local government officer of the local
governmental entity:
(A) serves as an officer or director; or
(B) holds an ownership interest of 10 percent or
more;
(5) describe each affiliation or business
relationship with an employee or contractor of the local
governmental entity who makes recommendations to a local government
officer of the local governmental entity with respect to the
expenditure of money;
(6) describe each affiliation or business
relationship with a person who:
(A) is a local government officer; and
(B) appoints or employs a local government
officer of the local governmental entity that is the subject of the
questionnaire; and
(7) describe any other affiliation or business
relationship that might cause a conflict of interest.
(d) A person described by Subsection (a) shall file an
updated completed questionnaire with the appropriate records
administrator not later than:
(1) September 1 of each year in which an activity
described by Subsection (a) is pending; and
(2) the seventh business day after the date of an event
that would make a statement in the questionnaire incomplete or
inaccurate.
Refer to the Chapter 176 Local Government Code
The By Laws of the RTC cites adherence to Chapter 171 of the Local Government Code which has a more narrow interpretion of Conflict of Interest.
At the June 14 RTC Meeting of the NCTCOG, a member inquired about possible conflicts of interest by RTC members specifically in relation to the upcoming vote on awarding the lucrative SH121 contract at the Monday, June 18th RTC meeting. A specific question was asked about members of the RTC who are TxDOT officials refraining from voting. A NCTCOG official replied that it would be left to the members, including NTTA Board Member Dallas Mayor Lauri Miller to decide whether they have a conflict of interest.
In a February phone call to NCTCOG Executive Director Mike Eastland, he stated that "We (the NCTCOG) do not usually attempt to enforce ethics conflict of interest rules on members of committees who are appointed by member governments." When questioned about a specific member with alliances which created at the very least, the impression of a conflict of interest, Eastland replied: "You'll have to go to the District Attorney in the county where the member lives to file a complaint of ethics violations." Concern was expressed to Mr. Eastland that the NCTCOG did not attempt to monitor ethical conduct of members serving on their boards and commissions in regard to actions in relation to their service on NCTCOG Boards and Commissions.
Application of ethics rules by Councils of Governments varies:
in March 2007, the Executive Director of the East Texas Council of Governments said: "We take very seriously the actions of members of boards and commissions as well as staff in service to the COG. Our attorney explains very clearly to all our members that they are to avoid conflicts of interest and the perception of conflicts of interest." He said that they "monitor and try to avoid possible violations," rather than referring them to the home county of the members. This statement was made in a telephone call within days of NCTCOG Executive Director Mike Eastland's explanation that at the NCTCOG they leave it to each member to determine if they have a conflict of interest.
At the RTC June Public Meeting in Arlington, concern was expressed that three members of the RTC serve on the Board of Directors of NASCO CORRIDOR, an organization with a mission statement to influence local, regional, state and federal governments to enact laws and fund improvements and construction of multi state tranportation corridors to priotize the shipment of international cargo over passenger transportation solutions. NCTCOG Transportation Director Mike Morris stated he saw no conflict of interest in three NASCO CORRIDOR Board Members (Tarrant County Judge Glen Whitley, RTC Chairwoman Denton County Commissioner Cynthia White and RTC member Denton Mayor Pro-tem Tex Kamp) serving on the Regional Transportation Committee, where they set policies for this region and vote awarding contracts for construction projects.
Thursday June 14 at the RTC meeting was the first time since these queries earlier in the Spring to Executive Director Mike Eastland, that RTC members have openly discusses possible conflicts of interest of RTC members. Those members who voiced the subject are to be commended. Commissioner Maurine Dickey of Dallas asked how the NCTCOG RTC bylaws address conflict of interest. Staff replied that they 'were not sure' but would research it and post the bylaws on the RTC website before the Monday meeting.
Examining the bylaws today revealed that the bylaws address adnerence to Chapter 171 of the Texas Local Government Code. It is recommended that the NCTCOG instruct its members and vendors that they must also adhere to Chapter 176, which addresses Members of Board of Directors as having conflicts of interest in addition to those who own 10% financial interest in a business or investment.
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