The agenda is scant. It entails a Housing and Community Development “Financial Update” with three speakers:
Keith Bynam, Deputy Director, Housing and Community Development
Temika Jones, Chief Financial Officer, Housing and Community Development
Andy Icken, Chief Development Officer, Mayor’s Office
I asked Mayor Pro Tem Martin for more detail. He replied, “Fiduciary update on City of Houston Housing, specifically CDBG and DR-17, and the status of the investigation from the City Attorney regarding his decision to bring in outside Firms and appropriate resources to ensure independence and completeness.”
Turner Vigorously Denies Allegations
The last part about the City Attorney refers to a self-investigation Mayor Sylvester Turner launched in the wake of explosive allegations by Tom McCasland, Housing and Community Development’s former director. Turner fired McCasland two weeks ago after McCasland accused the Mayor of improperly influencing the award of a housing grant. The Mayor skipped over the top seven recommendations by McCasland’s department to pick the eighth ranked project. The Mayor’s selection would have delivered one quarter of the affordable housing for basically the same price as the four projects recommended by the Department of Housing and Community Development. It just happened to turn out that the Mayor’s former law partner, Barry Barnes, is also a stakeholder in the eighth ranked project.
I spent the better part of the day reviewing complex documents in this case. I will post them below with some brief comments for those who like to refer to original source materials.
The 110-page contract between the GLO and City of Houston for $835 million. This is a subset of the $1.2 billion original contract that became the subject of a lawsuit between the same two parties last year. It lays out the expectations for each party, allocates totals to each program, sets performance goals for each, and lists deadlines. The Mayor signed it on Page 104.
The agenda for a review and a list of requested documents. Some of the acronyms in this may be puzzling. MQA stands for “Monitoring Quality Assurance.” MFRP stands for Multi-Family Rental Program. Page 4 lists the purpose of the review. Page 5 lists the scope. Page 11 lists the items that the City had not yet supplied as of 9/30/2021. Page 12 explains regulations that could penalize the City if it fails to provide the requested records.
The 40-page 2021 Notice of Funding Availability (NOFA) refers to Round 3 of the Disaster Recovery (DR-17) and Multifamily Program. It lays out the ground rules and selection criteria for the controversial Clear Lake apartment complex preferred by the Mayor. This was the “report card” for companies submitting proposals. It told them how they were going to be graded – i.e., what would increase or decrease their chances of success. It includes such factors as “flood resilience,” “experience,” “project readiness,” “cost reasonableness,” “disaster-recovery construction standards,” “location relative to the floodway,” and more.
Significantly, in the last document, the City’s Chief Procurement Officer, Jerry Adams, promises, “Bid proposals will be reviewed, underwritten and scored to select awardees based on a predetermined set of criteria outlined in the NOFA.”
Is There a Contract?
Yes and No.
No, in that a contract has not been signed with the Mayor’s hand-picked developer. The developer has not been paid any money. GLO has not even received a recommendation yet as to the developer. Everything blew up on the launching pad before things got that far.
However, the GLO and HUD contend that the NOFA is a contract. It obligates the City to solicit proposals according to criteria that have been agreed to beforehand.
The documentation calls into question whether bypassing seven higher scoring proposals in favor of a lower scoring project might violate the NOFA and federal procurement process regulations.
Here are some important federal requirements listed in the Code of Federal Regulations under 2 CFR Part 200:
Appendix I to Part 200 – Full Text of Notice of Funding Opportunity: “The intent is to make the application process transparent so applicants can make informed decisions when preparing their applications to maximize fairness of the process.” (E. Application Review Information)
§ 200.319 Competition: “All procurement transactions for the acquisition of property or services required under a Federal award must be conducted in a manner providing full and open competition consistent with the standards of this section and § 200.320.
From that perspective, there was and is a contract. As this controversy plays out, the contract question will likely play a central role. Don’t be fooled if someone says, “There was no contract.” Clarify what that means.
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2021/10/20210520-RJR_6964.jpg?fit=1200%2C800&ssl=18001200adminadmin2021-10-06 21:52:062021-10-07 08:15:30Special City Meeting Thursday At 2 PM Will Address Multi-Family Housing Flap
The Houston Chronicle and Ted Oberg, ABC13’s investigative reporter, both filed new stories Tuesday about the controversy surrounding Houston Mayor Sylvester Turner and the City’s troubled Housing and Community Development Department. The story blew up on September 22 and immediately triggered a fraud investigation by the Texas General Land Office and the US Department of Housing and Urban Development. According to today’s stories, Harris County District Attorney Kim Ogg has also opened an investigation into the multi-family housing deal at the heart of the controversy.
Mayor Recommends Deal with 4X Less Bang for Bucknbg
Tom McCasland, the former department head, accused the Mayor in an open City Council Meeting of unduly trying to influence the outcome of a grant. The Mayor promptly fired McCasland. The deal favored by the Mayor would have sent millions of dollars in business to the Mayor’s former law partners although McCasland explicitly said he was not accusing the Mayor of fraud.
In the “what was he thinking department,” the Mayor also asserted that it was his right to award the project to the firm of his choice and overrule McCasland’s recommendation even though four times more affordable housing units could have been built for the same amount of money had Turner followed the recommendations of McCasland’s department.
Ogg Investigation Reportedly Looks Back into Old Deals Too
Allegedly, the investigation is widening. Oberg’s story said, “13 Investigates has also learned the District Attorney is asking for more – and this time far more detailed information – about contracts, agreements, invoices and all available payment information related to payments to Barry Barnes and Associates in 2018 and 2019.”
Mayor Turner’s office said in a statement, “The City has received no notice of an investigation. The DA asked through an informal request for all city policies and procedures related to procurement and the letting on contracts.” The mayor denies having done anything wrong.
McCasland declined to comment, as did Ogg. “Out of fairness to all involved, we neither confirm nor deny potential investigations into any matter until and if a charge is filed,” said Dane Schiller, Ogg’s spokesperson.
In separate news, the City’s Housing Committee will reportedly hold a hearing Thursday, October 7, at 2 pm on this matter and broadcast the meeting on its internet site. The Mayor is expected to tell his side of the story at that time.
More news to follow.
Posted by Bob Rehak on 10/5/2021
1498 Days since Hurricane Harvey
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2019/03/Turner.jpg?fit=1500%2C1125&ssl=111251500adminadmin2021-10-05 21:22:402021-10-05 22:13:41Chronicle, ABC13 Report Harris County District Attorney Opens Investigation into Mayor
Mr. Kelley employs a narrative approach in writing this book. It literally represents a six year voyage of discovery for him that started with a recreational journey down the Ohio River in a small boat. Before the book ends, Kelly takes us along the route of Lewis and Clark up the Missouri River to the Dakotas and Nebraska. He also takes us down the Mississippi from Illinois to to Louisiana and the Netherlands. And on a jaunt through history with the Army Corps of Engineers, French explorers, Mark Twain, William Faulkner, Thomas Jefferson, and Ulysses S. Grant.
Along the way, we learn about dikes, dams, diversions, cutoffs, and other flood-control measures superimposed on the American landscape in a well-intentioned effort to foster commerce and protect people.
Mr. Kelley has a gift for explaining complex engineering projects in down-to-earth ways that non-technical people can easily understand. And he describes those projects through the eyes of hundreds of interviewees whose lives have somehow been affected. It all underscores the difficulty of flood mitigation at the intersection of engineering, politics, and geology.
Unintended Consequences
From oystermen in Louisiana whose catches have been affected by fluctuating salinity to Sioux in Nebraska forced to relocate villages, first due to dam construction and then again due to sediment build up. Kelley’s stories about sediment buildup behind dams reminded me of the challenges faced by Lake Houston Area residents after Harvey living downstream from 20 square miles of sand mines.
Other Parallels
The beauty of Kelley’s book is that even though the lessons learned come from other watersheds, many of those lessons can be applied to our own. As I read it, I found myself thinking back to stories I had reported during the last four years.
One of Kelley’s more gripping stories was about an Army Corps commander being forced to decide whom to flood during a major storm – the town upstream or the farmers downstream – and the political uproar that ensued. Remind anyone of the Lake Conroe release?
Another gripping story pitted the people on one side of the Mississippi with those on the other. Armed residents on each side patrolled dikes during a major storm, fearing sabotage from someone on the other side. Letting floodwaters escape through one dike would take pressure off the other and thereby prevent flooding on the other side.
Ounce of Prevention Worth a Half Billion $ of Cure
Then there were the stories about the hundreds of millions spent to mitigate flooding when damage to property could have been avoided for free just by building homes in less flood-prone areas. Alas, that would have required some private properties to be conserved for the public good – which led to a discussion of the political will (or lack thereof) to exercise eminent domain.
Those hundreds of millions, of course, turn into a tax on children and grandchildren over time. But expedience being the better part of re-election campaigns, it’s easier for politicians to say, “We’re going to fix it,” rather than “We’re going to take your property to save your neighbors.”
Relocating Problems
But the most tragic parts of this book were the stories about trying to outmuscle Mother Nature and how flood-control efforts in one area often simply relocated problems to another after a while. It made me thankful that one of Harris County Flood Control District’s core values is not flooding one area to save another. Time and again, throughout the pages of this book, you saw that scenario play out.
If you’re looking for insight into the dilemmas that engineers face everyday, this book is for you. It will help you understand the agonizing tradeoffs that professionals often have to make.
Posted by Bob Rehak on 10/5/2021 based on a book by Tyler Kelley, with thanks to Beth Leggieri for the recommendation
1498 Days since Hurricane Harvey
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2019/08/766866365_e2000a2d1c_o.jpg?fit=475%2C575&ssl=1575475adminadmin2021-10-05 18:38:492021-10-05 18:45:46Recommended Reading: “Holding Back the River” by Tyler J. Kelley
Special City Meeting Thursday At 2 PM Will Address Multi-Family Housing Flap
City of Houston called a special joint committee meeting for Thursday, October 7, at 2PM between Budget & Fiscal Affairs and Housing and Community Affairs. Mayor Pro Tem Dave Martin will chair the meeting.
The agenda is scant. It entails a Housing and Community Development “Financial Update” with three speakers:
I asked Mayor Pro Tem Martin for more detail. He replied, “Fiduciary update on City of Houston Housing, specifically CDBG and DR-17, and the status of the investigation from the City Attorney regarding his decision to bring in outside Firms and appropriate resources to ensure independence and completeness.”
Turner Vigorously Denies Allegations
The last part about the City Attorney refers to a self-investigation Mayor Sylvester Turner launched in the wake of explosive allegations by Tom McCasland, Housing and Community Development’s former director. Turner fired McCasland two weeks ago after McCasland accused the Mayor of improperly influencing the award of a housing grant. The Mayor skipped over the top seven recommendations by McCasland’s department to pick the eighth ranked project. The Mayor’s selection would have delivered one quarter of the affordable housing for basically the same price as the four projects recommended by the Department of Housing and Community Development. It just happened to turn out that the Mayor’s former law partner, Barry Barnes, is also a stakeholder in the eighth ranked project.
Turner vigorously denies any charges of impropriety and asked the City Attorney to investigate. However, the appointment of an appointed official to do the investigation was panned by the media.
Since then, the Texas General Land Office (GLO), HUD and the Harris County Attorney have each launched separate investigations. And now it appears that the City Attorney will also bow to public pressure by appointing an outside investigator.
Documents At Heart of Controversy
I spent the better part of the day reviewing complex documents in this case. I will post them below with some brief comments for those who like to refer to original source materials.
Significantly, in the last document, the City’s Chief Procurement Officer, Jerry Adams, promises, “Bid proposals will be reviewed, underwritten and scored to select awardees based on a predetermined set of criteria outlined in the NOFA.”
Is There a Contract?
Yes and No.
No, in that a contract has not been signed with the Mayor’s hand-picked developer. The developer has not been paid any money. GLO has not even received a recommendation yet as to the developer. Everything blew up on the launching pad before things got that far.
However, the GLO and HUD contend that the NOFA is a contract. It obligates the City to solicit proposals according to criteria that have been agreed to beforehand.
The documentation calls into question whether bypassing seven higher scoring proposals in favor of a lower scoring project might violate the NOFA and federal procurement process regulations.
Here are some important federal requirements listed in the Code of Federal Regulations under 2 CFR Part 200:
Additionally, in CONTRACT NO. 21-134-000-C788 above (section 8.05, page 19), the City of Houston agreed to strictly adhere to sections 318-326 of 2 CFR Part 200.
From that perspective, there was and is a contract. As this controversy plays out, the contract question will likely play a central role. Don’t be fooled if someone says, “There was no contract.” Clarify what that means.
To View Special Meeting Thursday At 2PM
To view the Microsoft Teams Live Meeting, go to: https://tinyurl.com/JOINTMTGBFAHOU.
Presentation handouts may be available at: https://www.houstontx.gov/council/committees/bfa.html. As of this posting, no handouts were available.
This meeting will also be broadcast on HTV, the City of Houston’s Municipal Channel.
Posted by Bob Rehak on 10/6/2021
1499 Days since Hurricane Harvey
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
Chronicle, ABC13 Report Harris County District Attorney Opens Investigation into Mayor
The Houston Chronicle and Ted Oberg, ABC13’s investigative reporter, both filed new stories Tuesday about the controversy surrounding Houston Mayor Sylvester Turner and the City’s troubled Housing and Community Development Department. The story blew up on September 22 and immediately triggered a fraud investigation by the Texas General Land Office and the US Department of Housing and Urban Development. According to today’s stories, Harris County District Attorney Kim Ogg has also opened an investigation into the multi-family housing deal at the heart of the controversy.
Mayor Recommends Deal with 4X Less Bang for Bucknbg
Tom McCasland, the former department head, accused the Mayor in an open City Council Meeting of unduly trying to influence the outcome of a grant. The Mayor promptly fired McCasland. The deal favored by the Mayor would have sent millions of dollars in business to the Mayor’s former law partners although McCasland explicitly said he was not accusing the Mayor of fraud.
In the “what was he thinking department,” the Mayor also asserted that it was his right to award the project to the firm of his choice and overrule McCasland’s recommendation even though four times more affordable housing units could have been built for the same amount of money had Turner followed the recommendations of McCasland’s department.
Turner Unleashes Firestorm
The Chronicle reported today that an investigator from Ogg’s office was seen knocking at the door of McCasland’s home. When there was no answer, he left a business card with a neighbor. The headline read: “Harris County DA Investigating deal at center of allegations that Turner steered money to developer.”
Oberg’s segment on the evening news led off with, “Harris Co. DA asks for documents on City Hall spending, payments to Mayor’s former law partner.” Oberg said he had obtained a copy of Ogg’s request, though he did not post the document.
Ogg Investigation Reportedly Looks Back into Old Deals Too
Allegedly, the investigation is widening. Oberg’s story said, “13 Investigates has also learned the District Attorney is asking for more – and this time far more detailed information – about contracts, agreements, invoices and all available payment information related to payments to Barry Barnes and Associates in 2018 and 2019.”
Mayor Turner’s office said in a statement, “The City has received no notice of an investigation. The DA asked through an informal request for all city policies and procedures related to procurement and the letting on contracts.” The mayor denies having done anything wrong.
McCasland declined to comment, as did Ogg. “Out of fairness to all involved, we neither confirm nor deny potential investigations into any matter until and if a charge is filed,” said Dane Schiller, Ogg’s spokesperson.
In separate news, the City’s Housing Committee will reportedly hold a hearing Thursday, October 7, at 2 pm on this matter and broadcast the meeting on its internet site. The Mayor is expected to tell his side of the story at that time.
More news to follow.
Posted by Bob Rehak on 10/5/2021
1498 Days since Hurricane Harvey
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
Recommended Reading: “Holding Back the River” by Tyler J. Kelley
A reader recommended a book recently. I found it so interesting that I’m recommending it to you. It’s called “Holding Back the River: The Struggle Against Nature on America’s Waterways” by Tyler J. Kelley. It’s about the unintended consequences of mankind’s struggle to reduce flooding.
Author’s Voyage of Discovery
Mr. Kelley employs a narrative approach in writing this book. It literally represents a six year voyage of discovery for him that started with a recreational journey down the Ohio River in a small boat. Before the book ends, Kelly takes us along the route of Lewis and Clark up the Missouri River to the Dakotas and Nebraska. He also takes us down the Mississippi from Illinois to to Louisiana and the Netherlands. And on a jaunt through history with the Army Corps of Engineers, French explorers, Mark Twain, William Faulkner, Thomas Jefferson, and Ulysses S. Grant.
Along the way, we learn about dikes, dams, diversions, cutoffs, and other flood-control measures superimposed on the American landscape in a well-intentioned effort to foster commerce and protect people.
Mr. Kelley has a gift for explaining complex engineering projects in down-to-earth ways that non-technical people can easily understand. And he describes those projects through the eyes of hundreds of interviewees whose lives have somehow been affected. It all underscores the difficulty of flood mitigation at the intersection of engineering, politics, and geology.
Unintended Consequences
From oystermen in Louisiana whose catches have been affected by fluctuating salinity to Sioux in Nebraska forced to relocate villages, first due to dam construction and then again due to sediment build up. Kelley’s stories about sediment buildup behind dams reminded me of the challenges faced by Lake Houston Area residents after Harvey living downstream from 20 square miles of sand mines.
Other Parallels
The beauty of Kelley’s book is that even though the lessons learned come from other watersheds, many of those lessons can be applied to our own. As I read it, I found myself thinking back to stories I had reported during the last four years.
Do I flood A or B?
One of Kelley’s more gripping stories was about an Army Corps commander being forced to decide whom to flood during a major storm – the town upstream or the farmers downstream – and the political uproar that ensued. Remind anyone of the Lake Conroe release?
Another gripping story pitted the people on one side of the Mississippi with those on the other. Armed residents on each side patrolled dikes during a major storm, fearing sabotage from someone on the other side. Letting floodwaters escape through one dike would take pressure off the other and thereby prevent flooding on the other side.
Ounce of Prevention Worth a Half Billion $ of Cure
Then there were the stories about the hundreds of millions spent to mitigate flooding when damage to property could have been avoided for free just by building homes in less flood-prone areas. Alas, that would have required some private properties to be conserved for the public good – which led to a discussion of the political will (or lack thereof) to exercise eminent domain.
Those hundreds of millions, of course, turn into a tax on children and grandchildren over time. But expedience being the better part of re-election campaigns, it’s easier for politicians to say, “We’re going to fix it,” rather than “We’re going to take your property to save your neighbors.”
Relocating Problems
But the most tragic parts of this book were the stories about trying to outmuscle Mother Nature and how flood-control efforts in one area often simply relocated problems to another after a while. It made me thankful that one of Harris County Flood Control District’s core values is not flooding one area to save another. Time and again, throughout the pages of this book, you saw that scenario play out.
If you’re looking for insight into the dilemmas that engineers face everyday, this book is for you. It will help you understand the agonizing tradeoffs that professionals often have to make.
Posted by Bob Rehak on 10/5/2021 based on a book by Tyler Kelley, with thanks to Beth Leggieri for the recommendation
1498 Days since Hurricane Harvey