Archive for the ‘Agenda Items’ Category

Further Info On The Memphis HEHFB Controversy

Wednesday, April 13th, 2016

April 13, 2016

Further Info On The Memphis HEHFB Controversy

I recently reported on the two Health Education & Housing Facility Boards, one from the City of Memphis and one from Shelby County. One is apparently well run and the other has had its’ authority temporarily suspended by the Tennessee Housing and Development Agency because of problem with properties run by Global Ministries.

 

I have attended two meeting of the Memphis board. The first one was not a regular monthly board meeting, but a reading of a proposed bond issue by Charles Carpenter, the board attorney. After the formal reading, I asked a few questions concerning transparency and open records and did not get a lot of information.

 

The second meeting, which was a regular monthly meeting, was attended by Channel 3, the Commercial Appeal, several business interests and myself. The only person, other than the business interests, to ask questions was myself. Before the start of the meeting, I asked the secretary for an agenda and she refused to give me one until the actual meeting started. At the end of the meeting I asked why the agendas and all attachments were not published at least two days before the meetings and I received no answer. I asked about the difference between the County ordinance that limits the amount that the Board Counsel can make. Mr. Carpenter said that he was not aware of the County ordinance. I pointed out that for just five Memphis bonds, the overpayment for the Memphis board Counsel was $59,000. Then I asked about a possible conflict of interest on the bonds for the Uptown Manor Senior Project by a board member and they said that they would have to consult the minutes of that meeting to see if the member recused herself. I asked for the minutes but received no reply. After the regular public meeting, they had an executive meeting and I asked if I could attend. They said that it was a closed meeting and the public was not able to attend.

 

Then several days later I, in fact, received the minutes from the two past board meetings concerning possible conflict of interests. I have attached those minutes and they are interesting.

 

Minutes of Wednesday, April 9, 2014

Lee Patton and  Monice Moore-Hagler recused themselves from the Inducement Resolution for the Uptown Manor Senior motion. Under Discussion Items, John Baker brought to the Board’s attention for further consideration a revised short term bond fee structure. Under New Business, Nancy Willis brought to attention a request for  an annual ethics statement to be signed by members of the board and provided an example copy for the Council’s review.

 

Minutes of Wednesday, December 3, 2014

Under action items, Dan Reid recused himself from consideration of inducement bond resolution for Global Ministries Foundation Bent Tree Apartments. Renasant Bank was to provide a private placement loan for the property.

Then Dan Reid re-entered the meeting and Monice Moore-Hagler and Lee Patton recused themselves before consideration of final bond resolution for Uptown Manor Senior Development LLC. Mr. Carpenter recommended approval.

Finally, Paige Walkup asked for an update regarding GMF Warren-Tulane property. Mr. Carpenter reported on his positive contact with Chris Lamberson and the ongoing response to correct issues and bring it up to standard.

 

This just goes to show that all these boards need to publish their agendas in advance along with all accompanied data and the public should see the same information that the board members get. I will look forward to your comments as you get ready to pay your federal taxes that funds all these projects.

Boards and Commissions in Memphis and Shelby County

Thursday, March 3rd, 2016

March 3, 2016

Boards and Commissions in Memphis and Shelby County

 

Recently I became interested in Memphis and Shelby County Boards and Commissions. My interest was piqued by all the news concerning Serenity Towers and Global Ministries. Here is a news article on the bond issue for this property.

The Health, Educational and Housing Facility Board of Memphis, Tennessee facilitated the GMF acquisition through the issuance of tax exempt 501(c)3 housing revenue bonds on behalf of the purchaser. Merchant Capital served as the bond underwriter in the placement of the bonds with investors, as the bonds were rated investment grade by Standard and Poor’s rating agency. Jones Walker served as Bond Counsel. Kristin Neun, Esquire, served as FHA counsel. Charles Carpenter, Esquire, served as counsel to the Issuer. The Bank of New York Mellon serves as Trustee. Glanker Brown serves as GMF’s corporate and owner counsel within its expanding national affordable multifamily housing portfolio.

A recent article in the Commercial Appeal stated the following.

About a third of all the units inside Serenity Towers have bedbugs, according to a Memphis Code Enforcement report released Friday.

The report says 134 units have bedbugs inside the senior high rise apartment complex. Other code enforcement violations included cockroaches, broken or damaged windows, leaks in the ceiling, broken thermostats, damaged toilet and faucets among other things.

City code enforcement officers inspected the 396 units in the property on Feb. 11, 2015. The inspection came after several tenants complained of bedbugs and other problems.

Rev. Richard Hamlet, founder of Global Ministries Foundation, said in a statement he was aware of the bedbug problem since his nonprofit bought the property. His staff is working to eradicate the infestation. GMF bought the senior property in 2014 using a $14.5 million bond issued by the Health, Educational and Housing Facilities board of Memphis.

With that background, I started investigating the various boards and commissions. What I found was 46 City Boards and Commissions and 36 County ones. Some are joint boards but many are stand alone ones. It was interesting that the City Health, Education and Housing Facility Board and the County Health, Education and Housing Facility Board have the same names but are completely different and separate

The City HEHF Board states its purpose as follows.

Function & Authority: 
The Health, Education and Housing Facility Board a public nonprofit corporation issues tax exempt revenue bonds for the development or rehabilitation of multi-family housing facilities to be occupied, according to the state statute ?by persons of low and/or moderated income, and/or elderly and/or handicapped persons.

The County HEHF Board states its purpose as follows.

Functions & Authority
The function of the Health, Education, and Housing Facility Board is to assist in the financing of health facilities, educational facilities, and housing facilities for low and moderate income families, disabled individuals and the elderly.  The financings are accomplished through the issuance of revenue bonds payable solely from the revenues of the project.  The taxpayers and the County of Shelby are never liable for the repayment of the bonds.

I asked both boards for their ethics documents and conflict of interest policies. From the County Board I received a prompt answer with the statement of policies and procedures revised 11/4/15 and By-Laws revised 2007.

From the City Board I got the 2008 By Laws and a financial statement.

I attended a meeting of the Memphis HEHF on February 29th for a required hearing concerning a request that the board issue its Multifamily Housing Revenue Bonds (Patterson Flats Project), Series 2016 in an aggregate amount not to exceed $12 million dollars. After the required reading I asked some questions concerning fees related to recent bond issues. Mr. Carpenter did not know but referred me to the State of Tennessee for this information. I asked him who was paid the $110,000 in legal and professional fees shown in the 2014 financial statement and he said that he was paid those fees. I asked about the details of the recent resignation of John L. Baker, 17 years as director of the Memphis HEHF board, and was told that that could be discussed only at a regular monthly meeting of the board and that the March meeting on the first Wednesday was cancelled as there was no business to discuss.

This whole matter of this housing for low and moderate income individuals and families, the cost and effectiveness of this approach needs a public discussion and possible alternatives to this expensive program. What do you think?

 

Massive Lawsuit By The Shelby County Board of Education

Tuesday, September 8th, 2015

September 8, 2015

Massive Lawsuit By The Shelby County Board of Education

In case you have not noticed, the Shelby County Board of Education just filed a lawsuit to compel the taxpayers of the State of Tennessee to fund whatever the state school boards feel is necessary to educate all children to what they feel is adequate education. It does not matter if the taxpayers can afford their idea of what constitutes an adequate education.

I must say on the front end that I want all children to get a good education. However I am a proponent of parental choice, good charter schools and parental vouchers. Let the money follow the child. They say that lack of money is the problem. I say that there is no proof that more money solves the problem. I say that the basic problem is the dissolution of the family structure and that this family structure problem started in the 1960s war on poverty and has gone downhill since then. This is a debate that I welcome.

However I just want to alert you to what is going on and I have several questions  that I feel should be answered by the Shelby County School Board and I intend to ask for this information in an open records request. I encourage you also to ask for this data.

  • What is the projected future cost of this lawsuit?
  • What has been spent so far?
  • Will all future legal bills be promptly put on line for the public to see?
  • Will all payments in connection with this lawsuit be promptly put on line?
  • Will all the cost of SCS legal and administrative work in connection with this lawsuit be recorded and put on line?

What they are asking is a blank check for education with the school boards able to write in the amount.

DO YOU AGREE? LET ME HEAR YOUR OPINION AND LET THEM KNOW YOU OPINION.

Here is the lawsuit and I have listed some of the highlights below.

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Are Smart Meters A Smart Purchase?

Monday, May 18th, 2015

May 18, 2015

Are Smart Meters A Smart Purchase?

Tomorrow there will be a City of Memphis committee meeting and in that meeting will be the subject of further purchase of smart meters as shown below.

MLGW COMMITTEE (Chairman Berlin Boyd)

  1. Resolution approving the purchase of a Mobile Energy Efficiency Educational Unit (vehicle) for an amount not to exceed $250,000
  2. Discussion of opting-out of Smart Meters
  3. Resolution awarding Contract No. 11776, Smart Meter Solution Full Deployment, to Elster Solutions, LLC, in the funded amount of $240,000,000 for work to be done over a period of approximately five years.

I have received the following email from a friend and a very active citizen in various local public policies.

  • 240 million dollars over five years is an astronomical amount of money. The rate payers in Shelby County will be stuck with the bill.
  • Firing meter readers and using their salaries to pay for smart meters does not add up. They are not paid that much!
  • Please share this with Shelby county friends. I know several people there who spoke out and opted out of smart meters without paying a monthly fee to mlgw. If they had not spoken out, refusing a smart meter would have resulted in a monthly fee.
  • The biggest reason for smart meters will be time-of-day-rates. While you will be sold on these rates because they are cheaper at certain hours, those rates will be much higher at other hours (example: summer rates in the afternoon hours 3-8 pm will double).
  • Smart meters take usage readings every fifteen minutes and send that information directly to mlgw. Many people consider that an invasion of privacy because your usage patterns are kept by mlgw. Anyone with access can know your routine by those usage patterns. There is also concern that these meters can be hacked.

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Pension Reform At The City Of Memphis

Thursday, December 4th, 2014

December 4, 2014

 

Pension Reform At The City Of Memphis

Finally the Memphis City Council has taken action to address our unfunded pension liability. Eight members decided that we needed reform and took decisive action to get this under control. The unions are not happy and will probably take this action to court in a lawsuit.

Mayor Wharton originally proposed that the City of Memphis go to a defined contribution system for all new employees and those unvested employees with less than 10 years of service. There were, of course, objections to including those unvested employees and later on a different proposal came out from the administration which was a cash balance plan. A cash balance plan needs some explanation and you can read about cash balance plans in the attached article.

In the City Council meeting it appeared that Myron Lowery’s plan which would include only new employees and would have the least savings for the City of Memphis would get the seven votes. However the City Council voted for the Hybrid cash balance plan (8 YES, 5 NO) and only those with more than 7.5 years of service would be covered under the old expensive defined benefit plan. Everyone else as of the start of the plan in 2016 would be under the new plan.

The impact on the unfunded liability of the approved plan in year one would be a savings of 6.8 million dollars and would reduce the unfunded liability in the first year by 60 million dollars. This is as compared to the Myron Lowery plan of zero savings the first year in dollars and unfunded liability reduction.

Again this is not the final decision and according to the commercial appeal this approval will be discussed again in committee in two weeks. Stay tuned. Attached are the Hybrid pension options.

A Change In Pension Changes

Tuesday, October 21st, 2014

October 21, 2014

A Change In Pension Changes

Just when I thought things were moving in a fiscally responsible direction, here comes another pension change proposal. I do not want to prejudge the proposal but just by reading a description of the plan, it sounds more expensive than what was previously proposed by the Administration. I hope that City elections being less than a year away are not a part of this change but we will see. Here is the information on the proposed new plan that I have to date.

  1. A letter to employees
  2. Plan for unvested employees to be sent to a cash balance plan
  3. Plan for a cash balance plan and a defined contribution plan

What we need is a look at the detailed cost analysis by Segal Consulting, the actuary consulting firm hired by the council. This will be given to the City Council at the private executive meeting today.

Stay tuned as this is only the beginning of a fight to save Memphis and don’t be surprised if the taxpayers are called upon to fill any fiscal gaps caused by coming election thoughts.

The November 4th Ballot

Sunday, October 19th, 2014

October 19, 2014

The November 4th Ballot

The upcoming ballot is important from a national, state and local level. As usual I will tell you how I am going to vote and give you my reasons as succinctly as possible. You, of course, will vote as you see fit based on your own conscience and principles.

For Governor I am voting for Bill Haslam.

For Senator I am voting for Lamar Alexander.

For the 8th Congressional District I am voting for Stephen Lee Fincher.

For the 31th Senatorial District I am voting for Brian Kelsey.

For the 83rd Representative District I am voting for Mark White

If I was in the 9th Congressional District I would vote for Charlotte Bergmann.

If I was in the 30th Senatorial District I would vote for Dr. George Shea Flinn.

Now as to the Wine at retail food stores, City of Memphis, I am reluctantly voting in favor as I have seen this as inevitable and it seems to work in other states without putting individual liquor stores out of business.

NOW THE FOUR CONSTITUTIONAL AMENDMENTS

Amendment #1(Gives Tennesseans back the right to legislate on abortions) – I am voting YES. The US Supreme County has already ruled that abortions are legal. This Amendment would allow the enactment of reasonable medical safety and sanitary provisions to prevent the terrible situation that occurred in the Gosnell clinic in Philadelphia which resulted in the murder conviction of Dr. Gosnell. Also remember that the Planned Parenthood v. Sundquist case (TN Sup Ct 2000), effectively prohibited any TN regulation, even for the safety of the mother. That’s why the approval of this amendment is crucial.

Amendment #2(Changes the way the Supreme Court or Appellate Judges are appointed) – I am voting NO. This is a close call but I trust informed common sense voters more than I trust the legal profession. I could go along with this amendment if it had a term limit provision limiting judges to one eight year term. Then at the end of a distinguished private legal career, outstanding fair minded lawyers could finish their career on the bench. Otherwise I would rather let the voters decide rather than lawyers and politicians.

Amendment #3- (Prohibits any Tennessee tax on payroll or earned income). YES, YES, YES

Amendment #4- (Empowers the General Assembly to permit lotteries). I am voting NO. I am against gambling in general and there has been corruption in these lotteries in the past.

FINALLY- For City of Memphis voters there is a little understood Memphis City Ordinance change to Ordinance #5512 to Improve Effectiveness of Civil Service Hearings. I am reluctantly voting YES for the amendment as I have been assured by the proponent of this amendment (City Council member Kemp Conrad) that it will help reduce the backlog of civil service cases and make it easier to discharge non productive employees of the City. It seems strange that this proposal is adding 7 members for a total of 14 members of the Civil Service Commission and asking to pay them $400 per day (or more) whereas the Shelby County’s civil service merit board has 5 members who are paid $50 per day and seems to be quite efficient. I think the difference is the culture of the City versus the County. The City has a history of tough union agreements and the unions support keeping their members employed by the City regardless of their job performance and history.

I will be glad to answer any questions that you might have about the election. Vote your preference but please vote.

Finally A Defined Contribution Pension Plan

Tuesday, October 7th, 2014

October 7, 2014

 

Finally A Defined Contribution Pension Plan

 

Today the City Council will consider a defined contribution pension plan for City employees with less than 10 years of service (as of July 1, 2015) and new employees hired after that date. I have been recommending this for years and finally the City Council will consider this reasonable plan. Here are the proposed ordinances.

Ordinance #5554-Adopt a defined contribution pension plan.

Ordinance #5553- Transferred participants to the defined contribution plan.

Ordinance #5552- Five or more years of service and age 65.

I have been recommending a defined contribution pension plan for years ever since I was on the Shelby County pension revision committee. This is fair for the private sector taxpayers who generally have no defined benefit retirement plan. It will probably be better for those City of Memphis employees in the future if the City’s pension investments perform as they have over the last 25 years (over 9% return).

Will the City Council and the Administration follow through and pass these ordinances? We will see but you have to consider that a year from now there will be an election for the new City Council and the city Mayor. What do politicians do when faced with an upcoming election? You have to look no further than the upcoming November 2014 national election. These changes are needed and should also apply eventually to the MLGW. Shelby County should adopt a similar plan but only for new employees, not those currently employed but not vested. This exception is in recognition of their past good fiscal responsibility as compared to the City of Memphis.

Holy Pot Hole Batman

Thursday, June 5th, 2014

June 5, 2014

More Talk, Delays And No Answers

The clock is ticking and all we get is more delays and can kicking down the road from the city Council. Positions seem to have hardened. Janice Fullilove and Joe Brown are in the “over my dead body” camp. Bill Boyd has ruled out any retiree OPEB reductions for health care. Jim Strickland and Shea Flinn want to pay up in 2 years instead of 5 but don’t come up with where the money is coming from.

The most clear eyed vision seems to come from the PFM January 2014 City of Memphis Fiscal and Management Plan. For instance on page 46 while employees were supposed to pay 30% of the cost of health insurance, the City only collected 24.2%, leaving the taxpayers to pick up nearly $4 million in cost left on the table. This under billing has been going on for a number of years.  Then on page 43, we see that we pay employees (Fire and Police Services) college incentive pay amounting to $6 million per year.

NEWS FLASH FROM THE BAT CAVE. IT IS REPORTED IN THE MORNING PAPER THAT THE CITY HAS A NEW POT HOLE BAT TRUCK REPORTED TO FILL HOLES FASTER AND CHEAPER. THE MAYOR ASKS ALL CITIZENS TO REPORT ALL HOLES DEEPER THAN KNEE HIGH.

Then on page 130 we see that one of the biggest problems we have in Memphis (potholes) is reported. According to the Division, the number of lane miles pavedl has dropped from 236 in 2007 to 105 in 2011, a decline of 56%. “WATCH OUT, HOLY POT HOLE BATMAN”.

As to the proposed health care cost reductions, this is where the real money is. According to the Affordable Care Act, costs will be reduced by $2500 dollars per family, you can keep your doctor and you can keep your plan. PERIOD. Let us take them up on this promise.

Line Of Duty Disability Reform

Thursday, February 13th, 2014

February 13, 2014

There are lots of things that need reform in the Memphis pension system and we have talked about the need for going to a defined contribution system rather than the current defined benefit system. Hopefully we will get there if the Mayor and the City Council do the right thing.

However I have often spoken about the need for line of duty disability reform. The Memphis pension board regularly approves applications for line of duty disability applications and has ten times more former employees on line of duty disability than Shelby County government or the MLGW. (These people on line of duty disability get 60% of their final average salary for their lifetime tax free).

Now I find out from Jeni Diprizio (a great reporter for Channel 24) that last month (January 30, 2014) Jason Webb applied for and (more…)