Reality Checker asked that we post the city’s email in its entirety.
The City of El Paso is once again reaffirming its commitment to restoring public trust by being transparent and making changes to address concerns raised by City Council last summer when they hired City Manager Tommy Gonzalez.
When Gonzalez arrived council asked him to assess certain areas and develop solutions, if necessary, to address their concerns related to the City’s:
- Fund balance
- Revenue projections
- Ballpark subsidies
- Capital improvement projects
“Council was justified in having concerns in all these areas. We continue to find deficiencies in operational issues and organizational processes and procedures,” Gonzalez said. “An audit requested by council in the fall of 2014 has allowed us to identify and address issues with the fund balance. Revenue projection concerns were taken care of through our new budget process, which is now tied to the City’s strategic plan. Our Chief Financial Officer successfully resolved ballpark subsidy issues. Where we are continuing to face challenges is with our capital improvement projects.”
CIP Background
The Engineering and Construction Management Department was recently reorganized recently to overhaul the department and to add additional resources and personnel to strengthen the Capital Improvement Program and to address contractor issues, payments, performance and delivery on projects.
Significant changes include:
- Adding additional engineering staff
- Providing weekly updates to Mayor and Council on capital improvement projects
- Creating the CIP Team consisting of several departments that are receiving the completed projects. The change has allowed for operations and maintenance costs to be included in the projects, something that was not factored into the plans in 2012.
- Implementing a CIP Quarterly Report to update Council and to enhance transparency and communication on projects
- Initiating an internal audit that was conducted in September 2014 to assess the Capital Improvement Program budget process
“What we’ve found as we dived deep into the CIP operations is that there is more work to be done. Through our reorganization in this area, we are addressing deficiencies related to operations and procedures,” Chief Financial Officer Mark Sutter said.
Effective immediately, Airport Director Monica Lombrana will serve as an on-loan administrator to the Capital Improvements Department while continuing with her airport duties. Her extensive experience with state and federal grants and reimbursements will be an asset to the Capital Improvements Department, which manages projects funded through state and federal grants.
The special assignment of Ms. Lombrana comes on the heels of City Manager Gonzalez recently requesting an internal audit to examine all aspects involving city construction projects, including those funded partly through state and federal grants.
“I had requested the audit on July 1 because I have been asking staff for improved tracking of all documentation related to construction projects. Now, after learning that we had errors in our submittals seeking state and federal funding I am even more confident that this audit is clearly justified and necessary,” Gonzalez said.
The City was recently informed of errors in documentation submitted for projects through the Metropolitan Planning Organization (MPO). On Wednesday, July 15, 2015, the City for the first time received a document from the Texas Department of Transportation (TxDOT), which it had shared with the media prior to providing it to the City, indicating that the City is pending approximately $21 million in reimbursements from TxDOT.
A review by the City shows the pending reimbursements based on the state’s Letter of Authority for the projects are closer to $9 million, not $21 million and the City is aggressively pursuing 100 percent reimbursement.
For example, as per the state’s Letter of Authority (LOA) the Country Club project total is $14.7 million, which includes the city’s match. The City is pending $3.9 million in reimbursements from TxDOT not $11.3 million.
|
Country Club Project |
|
|
City Match |
$6.8 million |
|
TxDOT Match |
$7.9 million |
|
Project Total |
$14.7 million |
“TxDOT will continue working closely with the City of El Paso to assist them in obtaining their pending reimbursements for these important projects,” El Paso District Engineer Bob Bielek said.
Additionally, the City is bringing in two engineering and consulting firms, Freese and Nichols and HNTB, to assess the Capital Improvement Department’s policies and procedures and recommend sound solutions to improve their operational efficiencies and delivery of project management, and to manage the Metropolitan Planning Organization (MPO) submittal process for transportation projects.
“The community trusted me with the responsibility to change the way city business was done,” Mayor Oscar Leeser said. “I knew there were business practices that needed changing and for that reason, shortly after taking office, I requested a full audit to help identify issues that needed immediate attention. Everyone wants instant change, but the issues we have now have been in existence well over three years and corrective action and implementation cannot occur overnight. Additionally, as the audit progresses I know we might find more issues that will also need to be addressed. One major change that we have done is to hire a new city manager with a strong financial background, who has the ability to lead the City and to make the necessary changes for the City to prosper.”
What a mess. We can only hope that the new team can clean it up.
We deserve better.
Brutus
elpasospeak 
You know what I get when I try to read this? It is much like when adults talk to the kids on the Charlie Brown specials. Just a bunch of noise. We don’t need half the top heavy admin staff we’ve got. We need some local people who give a damn about their city to get in there, roll up there sleeves, and get to work!
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The city reported yesterday that it will end the current fiscal year with a $3.9 million surplus, which is slightly more than the original projected shortfall that prompted the new water fee we are all now paying. So, rather than make the cut on the front end during budgeting, they imposed the water tax (call it what it is) for no good reason.
But that surplus is already burning a hole in their pocket. Management is now saying that one of the uses of the surplus might be to fund a pay raise for city employees.
Let’s not forget that budget surplus would probably have been greater if management had not funded an employee wellness program that includes financial incentives. Now, we have to pay our city employees a bonus to eat right and work out.
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Restore public trust? This e-mail went out the end of last week. Yesterday, council voted against a motion to ask voters whether they want to have to have a strong-mayor form of government rather than the current city manager system.
No surprise; the motion was not one of the charter advisory committee’s recommendations. The committee included the former city manager and the former mayor who installed the city manager form of government. The deck was stacked. So much for Leeser’s promise to put it to a public vote. Instead, a biased charter advisory committee and a biased city council chose not to let you vote.
Leeser poisoned the well of objectivity by naming the former mayor to the charter advisory committee. Niland contributed by naming the former city manager.
So much for trust.
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Leesor trying to take credit for correcting problems is a joke. I cannot imagine him as a “strong mayor.” Keep the city manager. He appears to be the only one with any financial and management understanding.
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I am seeing conflicting media reports about the supposed $3.9 million surplus. Early reports said the city manager and city council had not yet decided what to do with the surplus. One report last night indicated that they have already “reinvested” a substantial amount of that money on things like police cadets, new police cars, fire trucks, and ambulances, more capital improvement staff, and more police patrols in the downtown area on weekends. Which is it?
It’s important to point out that they are having to hire more people to spend our money. I doubt that those positions will be eliminated after the money is spent or the projects are completed. These hirings also fly in the face of the city manager bragging a while back about streamlining staff and eliminating positions.
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