Another Massive Detention Pond Going In Next to Halls Bayou

Construction has begun on another massive detention pond along Halls Bayou. It stretches south from Isom Street to the bayou between Chrisman and Aldine-Westfield Roads. It covers approximately 26 acres and when complete will hold 180-acre feet of stormwater to reduce the risk of flooding. This is just one of 11 projects comprising the Halls Implementation Program. Together they have a total current value of $212 million dollars.

Looking NNW across the new detention pond. Construction started in August 2021. HCFCD expects completion by March 2022.

Such basins take in excess stormwater during heavy rain events and then release it slowly back to the channel when the threat of flooding has passed. Part of the basin will have a wet bottom and another part will have a vegetated shelf. Yet another part will go in between Isom and Aldine Mail Route Road, although that portion has not yet begun construction. (See below).

Map on left shows current extent of construction work. Eventually, project will also include channel conveyance improvements (right) for a tributary that will be directed into the new pond.

Harris County Flood Control District (HCFCD) lists the project as C-25 on its website. But the Flood Bond Program ID is P518-11-00. Ultimately, this will become part of a much larger project area that includes P118-21-00. Together, they will improve drainage in a large part of east Aldine.

Each of these projects falls into Commissioner Adrian Garcia’s Precinct 2. The description that accompanies the project in the flood-bond spreadsheet says, “This project could reduce the risk of flooding for over 90 buildings and could reduce the 1% floodplain for over 100 acres.” The HCFCD spreadsheet and website indicate a total cost of more than $14 million.

But keep this in mind. Project C-25 will work in conjunction with two proposed Harris County Engineering Department projects: neighborhood drainage improvements in the Western Homes subdivision and proposed roadway and drainage improvements along Aldine Mail Route Road. The detention capacity in the pond you see here will accommodate drainage improvements in those areas without flooding other areas. Thus, the pond will really help more than 90 structures.

The project shown in these photos is P-518. P-118 is still in preliminary engineering review.

C-25 is a partnership project. HCFCD received an approximately $9.5 million Community Development Block Grant for Disaster Recovery (CDBG-DR) from the US Department of Housing and Urban Development (HUD). Approximately $5.4 million comes from local funding.

Photos of Work to Date

Looking NE from the SE corner of the construction. Halls Bayou, center, runs along the southern edge of the new basin. The detention basin in the top center was developed by TxDoT. Another phase of this project will expand north into those trees in the upper left.
Looking north from over Halls Bayou. A large part of this basin will have a wet bottom, which contractors are beginning to excavate now. Only detention capacity above the permanent waterline counts toward the total of 180 acre feet. So this pond will have a depth of 7-8 feet from the top of bank to the waterline.
Reverse shot looking SE from Isom Street. The TxDoT basin and Keith Weiss Park are in the upper left of this shot.
The scale of the workers in this shot shows the depth of excavation as of 10/13/21.

This HCFCD presentation explains more about the project, a related project (P118-21-00/C-28) and their benefits.

Posted by Bob Rehak on 10/13/2021

1506 Days after Hurricane Harvey

San Jacinto East Fork Dredging Begins

This morning, for the first time, I photographed dredging on the San Jacinto East Fork. It was a welcome site and one that hundreds of East Fork residents who flooded will appreciate.

Three Months After Plans Unveiled

It was back on July 9, 2021, that Stephen Costello, the City’s Chief Recovery Officer, unveiled the City’s plans to begin East Fork dredging. At the time, Costello said crews would have to dredge their way there through a shallow channel south of Royal Shores in Kingwood.

On July 11, I first photographed dredging in the channel.

On September 23rd, I photographed crews about three quarters of the way through the channel.

Finally, today, October 12, three months later, I photographed a barge moving straight through the channel and into the East Fork. I even had to move locations a couple time to keep the drone within range.

Drone Photos of East Fork Dredging from 10/12/2021

Two mechanical dredges on East Fork, just upstream from the entrance to Luce Bayou.
Today’s dredging location circled in red. Arrow points way back to where crews are depositing the spoils on the West Fork just south of River Grove Park.
Tug pushing empty pontoon through Royal Shores Channel toward East Fork (top). Looking SE. Note FM1960 Causeway in upper right.
Looking NE toward Luce Bayou on opposite shore to begin Dredging
Empty barge turns NNE. East Fork dredging location is around the finger that sticks out into the river from the upper left. After loading up with silt and sediment, the barge will return to the West Fork to deposit the spoils.

More Dredging $$$ Voted by Commissioners Today

This morning, in Harris County Commissioners Court, Agenda Item 102 passed unanimously without discussion. The motion will contribute $10 million from the Harris County 2018 flood bond funds to extend the dredging on the East Fork, West Fork, and Lake Houston, including the entrance to Rogers Gully.

Posted by Bob Rehak on 10/12/2021

1505 Days since Hurricane Harvey and 756 since Imelda

Flood Digest: Updates on TWDB Grants, Affordable Housing Investigations, Subsidence

Below are updates on three items recently in the news: Texas Water Development Board (TWDB) Grants, Affordable Housing Investigations, and Subsidence.

Texas Water Development Board Grants Affecting Houston Region

Last week, I posted a story about flood mitigation assistance grants being considered by the TWDB. The Houston region qualified for eight and the TWDB approved them all…unanimously. However, the checks aren’t in the mail yet.

TWDB approved the following subject to FEMA final approval:

  • 32 structures in Houston, Jersey Village, Pearland and Taylor Lake Village will receive financial assistance for elevating structures.
  • 1421 structures in Bear Creek Village (near Addicks Reservoir and Highway 6) will see their drainage improved by Harris County Flood Control District HCFCD).
  • 61 repetitive loss structures will be bought out by HCFCD.
  • 1 hotel with a severe repetitive loss history dating back to 1979 will also be bought out by HCFCD.
  • 40 repetitive-loss structures in Montgomery County will also be bought out.

FEMA requested more information for further review on each project. So when/if FEMA gives final approval to each of the above, they should be good to go. That usually happens by January.

Texas projects considered for further review by FEMA

Clear Lake Apartment Complex Recommended by Mayor

On September 21, the former director of Houston’s Housing and Community Development Department (HCDD) turned whistleblower and accused the mayor of recommending a multi-family housing deal in Clear Lake that was not in taxpayers’ best interests. It turns out the Mayor’s former law partner would have benefited by $15 million from the deal, but the department’s recommendations would have provided four times more affordable housing for essentially the same amount of money.

That ignited a firestorm in the media and on City Council. HUD, GLO, the County Attorney, and the City Attorney (with the help of two US Attorneys) and City Council are all investigating.

In the face of this withering onslaught, the Houston Chronicle today reported that the Mayor has dropped his recommendation to back his former law partner’s project in Clear Lake. The Mayor said he didn’t want it to become a “distraction.”

However, getting the genie back in the bottle may not be that simple. Since the Clear Lake deal imploded on September 22, 2021, more allegations of financial mismanagement arose in City Council last week.

Also this afternoon, investigative journalist Wayne Dolcefino issued a press release about a Federal lawsuit he filed. It alleges a cover-up at the Houston Housing Authority on other housing deals that appear to be linked to the same players Tom McCasland and the Mayor.

This has the stink of Watergate about it.

Houston Mayor Sylvester Turner at Kingwood’s last town hall meeting in October of 2018.

GMA-14 Makes Subsidence DFC Optional

For several years now, the state’s Groundwater Management Area 14 (GMA-14) in southeast Texas has struggled to define Desired Future Conditions (DFCs). These are long-term goals that address groundwater conservation and the maximum amount of subsidence allowable.

The Lonestar Groundwater Conservation District has denied subsidence exists in Montgomery County and stonewalled efforts to include a subsidence metric in DFCs.

Going into a board meeting last week, GMA 14 had proposed DFCs that read:

In each county in GMA 14, no less than 70 percent median available drawdown remaining in 2080 and no more than an average of 1.0 additional foot of subsidence between 2009 and 2080.

Initial DFCs

However, days before the final vote on this statement, State Senator Robert Nichols, intervened. He wrote a letter to each of GMA-14’s groundwater conservation district leaders “urging” them to make the subsidence metric optional. At that point, the debate ended. The final DFCs adopted by GMA-14 read:

In each county in Groundwater Management Area 14, no less than 70 percent median available drawdown remaining in 2080 or no more than an average of 1.0 additional foot of subsidence between 2009 and 2080. 

Final DFCs

This “opt-out option” defeats the purpose of even having a GMA and a subsidence metric.

This revised statement was quietly approved on October 5, 2021. At its January 5, 2022, meeting, GMA-14 will approve the report that accompanies the DFCs when they are submitted to the TDWB.

Of the five groundwater conservation districts in GMA-14, four voted for the new DFCs and one abstained. The new DFCs will likely be challenged in court by areas threatened by subsidence.

Makeup of Groundwater Management Area 14

Posted by Bob Rehak on 10/11/2021

1504 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.

CoH Excavating Silt from Diversion Ditch at Kingwood Drive

After finishing excavating silt from under the Kingwood Drive Bridge over Ben’s Branch, City crews are now doing the same under the bridge over the Diversion Ditch near the fire station on Kingwood Drive.

Before excavation began. Looking south at the Kingwood Drive Bridge over the Diversion Ditch in August.

Bridges are often chokepoints during floods because of their supports that reduce and sometimes slow the flow of water and contribute to sediment buildup.

Closer shot of same bridge, still looking south. Note sediment buildup. Also note how bridge supports catch debris.

The City of Houston is responsible for excavation under the bridges because the bridges are City property.

On Ben’s Branch, Harris County Flood Control District (HCFCD) had excavated both north and south of the bridge at Kingwood Drive. Then the City did its part.

Pictures of Work in Progress At Kingwood Drive.

However, at the Diversion Ditch Bridge, HCFCD has not yet begun excavation. CoH went first.

Dan Monks, a Kingwood resident, captured work in progress last week and gave ReduceFlooding.com permission to use his photos.

Photo By Dan Monks shows excavation in progress under east side of Kingwood Drive Bridge over Diversion Ditch.
The City is stacking the dirt on the bank, letting it drain and then hauling it off. Another shot courtesy of Dan Monks.
There’s still more work to do on the western side, but that should happen soon. Photo courtesy of Dan Monks.

The Second of Many Such Projects

According to Mayor Pro Tem Dave Martin’s office, the City’s Public Works Department will also be investigating other bridges in the Kingwood area to see if they too need to have silt removed from under them. These projects aren’t glamorous, but they are necessary to restore conveyance of area ditches. HCFCD’s Kingwood Area Drainage Analysis showed that some area ditches were down to a 2-year level of service. That means they were so constricted that they would flood in a two-year rain.

Bridges along Kingwood Drive and Northpark Drive can least afford flooding. They are vital links in crucial evacuation routes.

Thanks to the folks in the District E Council Office and the Public Works Department for addressing these issues.

It’s not yet clear when HCFCD plans to start excavation of the Diversion Ditch in this area.

If you have photos you would like to share with the public, please submit them through the Submissions Page of this website.

Posted by Bob Rehak on 10/10/21

1503 Days since Hurricane Harvey

Should City Be in Disaster Relief? For One Program, It Spent $3 Million to Get $3 Thousand

One of the more alarming facts that came out of Thursday’s City Council meeting is that Houston’s Housing and Community Development is spending far more on disaster relief than it gets back in reimbursements. In the case of one program, Economic Development, the ratio between costs and reimbursements to date was actually 1100 to 1, even higher than the headline indicates ($3,596,821 spent vs. $3,260 reimbursed).

The program’s purpose: to help small businesses damaged by Harvey. But the City launched the program just this year. And four years after the storm, those who needed assistance the most have already gone out of business. Most small businesses can’t survive that long after losing essential equipment. Is this program chasing business applicants that no longer exist? It’s hard to tell without more information. (The City’s most recent pipeline report, published just yesterday, doesn’t even mention the Economic Development Program.)

Regardless, the Economic Development Program isn’t the only area where expenses seem out of whack. This raises the questions, “Should the City even be in the disaster-relief business?” And “Can others do it better?”

Disaster Relief Costs Exceed Reimbursements and Budgets in Multiple Areas

Temika Jones, the Department’s new Chief Financial Officer and Assistant Director showed the chart below as part of her presentation. She has one year on the job. Before that, she served as an auditor for a major accounting firm. Her presentation spotlighted two giant problems: Costs exceed reimbursements. And costs exceed budgets – so some may never be reimbursed.

From a Presentation by HHCD to A Joint Committee Meeting of Budget & Fiscal Affairs, and Housing and Community Affairs

In the chart above, focus on the last two columns in the Total row. They show that the City is incurring disaster relief costs that average 2.3X higher than reimbursements – across the board.

Also focus on the big red numbers at the bottom of the slide. They show budgets that have already been exceeded.

Now compare Columns 3 and 6 in Line 1. The City has already overspent its four-year budget for administration in the first year of its contract with the GLO by $1+ million. Oops. The budget was $15 million. But the City already spent $16 million and has only had draws approved for $1.2 million.

Finally, compare Columns 3 and 5 on Line 4: The Homeowner Assistance Program. The department budgeted only $8.2 million for project delivery, but has already spent $30.6 million – almost quadruple. That means they have no budget remaining to finish the program. Worse, reimbursement for $22.3 million could be in jeopardy.

City Operating Outside of Its Core Competencies

There are several reasons for the problems discussed above:

  • HUD and the GLO operate on a reimbursement basis. The City can give money to flood victims and expect reimbursement, but then have the victim’s application refused for some reason – often missing forms or incomplete data.
  • The City’s track record with successfully completing applications has not been good. Many have been kicked back because they are incomplete.
  • That’s apparently because of staffing, training, and management issues.
  • The City’s accounting systems don’t handle disaster relief programs well, so the problems lack visibility.

Disaster relief just doesn’t seem to be one of the City’s core competencies.

The City is operating waaaaay outside of its areas of expertise. Police. Fire. Water. Streets. Trash. Those are the things people expect from the City and what the City should focus on. In business, any time you tread outside of your core competencies, your costs and risks escalate exponentially. That takes money away from flood victims.

It appears that the City was so eager to get its hands on hundreds of millions of dollars in disaster relief money that no one asked whether the City even should be in that business. Or whether the City should just have let the GLO handle disaster relief – as it did so well in 48 other counties.

As of the end of last year, the GLO had reimbursed 2961 homeowners; Houston reimbursed 119.

And while the GLO reconstructed 2500 homes, the City reconstructed only 117.

Increasing the Pace, But Falling Father Behind

The City has accelerated its pace this year, but Jones’ presentation also shows that the City is still sitting on top of applications worth $114 million that have yet to be filed. That’s almost triple the previous year’s number. Meanwhile, expenses have more than tripled.

From Page 16 of Jones’ Presentation to City Council

That brings us full circle. The City’s Economic Development Program has spent more than $3 million to get $3 thousand approved. It makes one wonder whether the purpose of pursuing HUD money was to create employment in Housing and Community Development or to help flood victims.

Turfing this to the GLO could have helped many more flood victims much faster at a lower cost.

The City put a third bureaucracy between money in Washington and the flood victims who need it. Two could have done the job faster, easier, and better.

Posted by Bob Rehak on 10/9/2021

1502 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.

How to Speed Up Flood Assistance

Since Harvey, Houston’s Housing and Community Development Department has been criticized severely by HUD, the GLO, media, and flood victims alike for poor performance and non-performance in flood assistance efforts. Thursday, Keith Bynam, the Interim Director of the Department, and Temika Jones, the Department’s Assistant Director and Chief Financial Officer, informed city council members about other issues: severe and repeated budget overages in their department.

Their explosive testimony drew sharp questions and raised many more about the department’s management and oversight by the City.

Eight Main Recommendation to Improve Disaster Assistance

Bynam and Jones never did get to finish their presentation. Unfortunately, recommendations on how to fix the department’s problems were at the end. Arguably, Pages 22 and 23 should have been the focus of their presentation.

Bynam and Jones made eight recommendations as part of their Corrective Action Plan for flood assistance.

  1. Reduce future Admin spending and forecast Admin dollars needed to execute programs.
  2. Restructure reporting lines to other city departments in consultation with Central HR.
  3. Re-evaluate all staffing decisions approved by the former director, Tom McCasland.
  4. Align future expenditures with program spending.
  5. Implement strike teams to focus on GLO submissions
  6. Timely submission of draw requests to GLO (within 90 business days)
  7. Continue operating successful programs (such as Multifamily, Public Services)
  8. Ensure new CDBG-DR 2017 (Harvey) programs are implemented successfully (Economic Development, Small Rental, Single Family)

Flood Assistance: A Multi-level Problem

The meeting yesterday focused on fixing the negative financial impact to the City. But the impact to flood victims caught up in this bureaucratic miasma needs to be considered simultaneously.

During my business career, I found it hard to go wrong if you structured your organization around clients’ needs. In this case, there are two sets of clients: the GLO and HUD on one hand. And flood victims on the other. Both have one primary need: speed.

  • Some victims are still struggling to fix their homes or recover from the financial devastation caused by Harvey.
  • The GLO needs to use the money appropriated by Congress and HUD or lose it when program deadlines expire.

One program (Home Repair) has already expired. And 1501 days out from Hurricane Harvey, hundreds of millions in funds remain to be distributed – despite overspending on administrative expenses, such as employee salaries and computer expenses, by 400% last year.

City Council needs to look at the flood assistance from their clients’ perspectives and start there. How can they speed up the assistance?

Insights from Former Employees, the GLO, and Flood Victims

Not wanting to rely solely on Bynam and Jones recommendations, I also talked to former employees of the department, the GLO, as well as flood victims who described several problems:

  • An accounting system that can’t recognize liabilities incurred on behalf of the federal government in reimbursement programs
  • Featherbedding (keeping and protecting political friends on a payroll, often by stretching out work)
  • Personnel with lack of experience who don’t know what to do
  • Inadequate management and training
  • Refusing help from the GLO
  • Turnover in managerial ranks (five managers in the Home Repair program alone since Harvey, according to Bynam)
  • No one from the Mayor on down ever asking the questions, such as “Why are we in this business? Do we want to stay in it?”

It’s amazing how closely these comments map back to the recommendations made by Bynam and Jones. The two lists closely parallel each other, though they are not identical.

Ten People to Pay Two Bills?

In her testimony yesterday, Ms. Jones, who joined the department a year ago, said that, shortly after arriving, she discovered that, “We had 10 people paying bills in accounts payable and two people requesting reimbursements. That change was made immediately.” She said, “The GLO compliments us at least weekly on the progress we are making, but we have a long way to go.”

Friends in the media who have covered the department for decades describe persistent problems that previous mayors and city councils found convenient to ignore.

I applaud Jones and Bynam for having the courage to air dirty laundry in public. That is the only way these problems will ever get fixed. Departments like Housing and Community Development cannot become fiefdoms for featherbedding, or as one former employee put it “a receptacle for misfits and castoffs from other departments.”

Some Unsolicited Advice: Restructure Around “The Right Five”

I had a highly successful information technology (IT) client for 30 years that did government as well as private-sector work. They believed that for their clients to be successful, IT systems had to deliver the “right five”:

  • The right information
  • In the right form
  • For the right people
  • In the right place
  • At the right time

Example: a successful airline must juggle equipment availability, maintenance, reservations, pricing, baggage, seating, staffing, gate availability, check-in, air traffic control, weather, seating and other variables…for each flight, thousands of times a day.

For the system to work efficiently, customers, employees, and vendors see only what they need, when they need it, where they need it, in a form that lets them do the task at hand. Software guides them through each step.

It’s safe to say that Houston’s Housing and Community Development Department does not have “the right five.” I say that based on the testimony we heard yesterday, from City Council reactions, from former employees, and from the persistent criticisms offered by HUD, the GLO, and flood victims.

Checking the “Flight Status” of Flood Applications

Neither the City Controller, City Council, Mayor, HUD, GLO, the Department, nor flood victims can tell the “flight status” of pending applications at a glance. That’s how you get an economic development plan where the City has spent $3.6 million to get $3,260 of aid approved (see line 3, page 14). That needs fixing.

And part of the fix will require managing the information so that low-wage employees can perform their individual roles in a very complex process.

The whole notion of “trying” to file paperwork within 90 business days feels repugnant to me. But with the “right five,” filing those applications in real time with a fraction of the people could happen automatically.

If the City were a private business, it would not be trying to figure out how to timely file flood assistance applications right now. It would be filing for bankruptcy. We seriously need to fix this.

Posted by Bob Rehak on 10/8/2021

1501 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.

Bombshells in Council Meeting Raise More and Bigger Questions about Housing and Community Development

Weeks ago, Mayor Sylvester Turner said he would provide a complete explanation for allegations of interference in a $15 million contract that would have benefitted his former business partner. Many people thought that would happen today at a joint meeting between the Budget & Fiscal Affairs and Housing & Community Development Committees. But it didn’t.

The Mayor didn’t appear. His representative didn’t speak. And Tom McCasland, the fired director of Housing & Community Development wasn’t even invited. Instead of explanations, we got more bombshells and even bigger, more troubling questions that pointed to what Mayor Pro Tem Dave Martin called “a train wreck” that was years in the making.

The Longest Three Hours Ever

Keith Bynam, the department’s Interim Director, and Temika Jones, Assistant Director and Chief Financial Officer (also a former auditor) sat in the hot seats for three hours. They gave a presentation about the department’s finances.

The meeting almost ended before it started. Council members received the presentation from Bynam and Jones less than an hour before the start of the meeting. The members had so little time to prepare that several wanted to postpone. Based on their initial review, some also called the presentation a “diversion.” The acrimonious discussion about whether to adjourn the meeting consumed the first 33 minutes and set the tone for the rest of the day. One council member, Mike Knox, walked out.

While the presentation was certainly not what council members expected, it also wasn’t a “diversion.” It more closely resembled open heart surgery on an entire city department in front of live TV…using hand grenades instead of scalpels.

Most of the presentation focused on budget shortfalls in the department, and who knew what about those shortfalls when.

Sadly, Bynam and Jones had planned to talk about a “corrective action plan” for the department, but never got to their recommendations because of persistent interruptions from council members whose jaws were scraping the floor.

At the end of the meeting, the City Attorney said the internal investigation that the Mayor assigned to him had been turfed to outside counsel – former US attorneys. He knows a hot potato when he sees one!

If this presentation was an attempt to support the mayor (who was reportedly at an Astros game), it backfired. Bynam and Jones spent half their time fielding questions from council members about why they didn’t turn whistleblower years ago. They claimed: 1) that they repeatedly raised spending issues with McCasland, 2) that McCasland supposedly discussed them with the Mayor, and 3) that they weren’t really sure if he ever did.

Bombshell Revelations

Among the bombshells:

  • The department’s annual administrative budget for ongoing HUD Community Development Block Grant (CDBG) programs (separate from Harvey programs) went over budget during the last fiscal year by 175%. It budgeted $3,987,480 and spent $11,084,775.
  • TIRZ (tax increment reinvestment zone) money made up the difference, but by law TIRZ money is supposed to be spent within the zone where the tax increment is collected.
  • During the last 5 fiscal years combined, the department overspent its admin budget by 143%. It budgeted $21,088,015 and spent $51,322,491 on admin.
  • Admin expenses for the Harvey CDBG fund exceeded the four-year budget of the program by 14% in the first year of the program.
  • For the department’s Homeowner Assistance Program (HoAP), the department incurred $70 million in expenses as of the end of the third quarter, but has only had reimbursements approved and/or paid that totaled $12,475,085. They missed that one by almost 6X. As a result, they are now $22 million short in their project delivery funds.
  • Only one of nine programs in the Harvey fund is on track to meet its performance benchmarks by the end of the year.
  • The former director’s wife owns a company that was doing business with the department to reduce “duplication of benefit” (DOB) gaps for HoAP applicants. But the company actually increased the gap for each applicant, according to the GLO. To cover the difference, the department will have to reduce each homeowner reimbursement request.
  • The GLO capped Relocation Assistance at $6,000 per applicant, but the department is spending $8 to 10K.
  • Change orders were not accounted for properly.

Virtually all city council members appeared to be surprised by the revelations.

12 Bigger Questions Remain

Compared to his role in one dubious financial transaction, Mayor Turner now has many bigger questions to answer.

  1. Did the Mayor provide proper oversight to the Housing and Community Development Department?
  2. Why did he continue to back McCasland when management issues arose years ago? HUD and the GLO had warned him. The problems were widely reported in the media.
  3. Are the numbers reported today accurate and complete, or are there more surprises waiting?
  4. How could admin expenses swell so much? Previous GLO and HUD audits suggested that the department was understaffed. And McCasland claims he held admin expenses below 13%. And typically, first-year admin startup costs for a new program run about 20-30% of the total allocated for the entire program. They don’t consume 4+ years of budget in one year.
  5. Does the City’s accounting software need improvement? The City doesn’t even recognize liabilities incurred to HUD and the GLO. It only covers the general fund.
  6. Were these numbers being timely reported to the Mayor? Bynam and Jones say they reported them to McCasland every month, and that McCasland supposedly discussed them with the Mayor. But Bynam and Jones claim McCasland kept them out of meetings with the Mayor. So they don’t know what McCasland told the Mayor.
  7. Did McCasland make the Mayor aware of the overages?
  8. What is McCasland’s side of the story?
  9. How is it possible that the City Controller was writing checks and these overages did not show up on a balance sheet?
  10. The City’s general fund advances cash to complete projects in anticipation of reimbursements from the GLO once the work is approved. Are there audited financials that show more detail on how these funds were spent AND additional liabilities which may be accruing?
  11. McCasland says he sent a memo to the Mayor, the Housing Committee and every City Council Member that disclosed the role his wife played. Where is that memo?
  12. Why did the City sue the GLO to keep these programs last year if they were losing so much money?

Rule #1

Rule #1 in business is that when you’re in a hole, stop digging. Evidently, NO ONE at the City got that memo.

Posted by Bob Rehak on 10/7/2021

1500 Days after 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.

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:

  • 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.

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.

  • 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.
  • A letter from the GLO to Keith Bynam, Interim Director of Housing and Community Development. It requested a review of the City’s Multi-Family Rental Program, starting no later than September 29, 2021.
  • 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.

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.

From a series of maps produced by the Army Corps Map showing how the Mississippi has changed paths hundreds of times. From a 2018 post about river migration.

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