Category Archives: Rumor Control

Reports from inside the City of Houston, which are basically just rumors running through the grapevine. I do not vouch for the veracity of anything in this category; it’s just what I’m hearing.

New Director

The mayor just announced the new director of PW&E.

Moments ago the Mayor announced Mr. Krueger as the new Director of the Public Works and Engineering Department. Confirmation by City Council is anticipated as early as late July.

Very Respectfully, 

Daniel R. Menendez, P.E.
Deputy Director
Engineering & Construction Division

Menendez was the interim director for the last couple of days.

Frankly, the mayor should have announced a new ITD director. The website rollout is totally botched. As I write this, the city’s front page is HTV. I don’t mean it’s redirected there, I mean it is HTV.

Once again, ITD fubars a project. No surprises there.

So Long, and Thanks for all the… Grief? (Updated)

I have yet to see it on any news outlet in Houston, but the word at the office is that Director of Public Works and Engineering Michael Marcotte has tendered his resignation to Mayor Parker. The effective date is in two weeks. According to multiple sources, the Mayor was not happy with unspecified job performance issues and requested the Director vacate his position.

What prompted this action now? The City is embroiled in multiple controversies, as the new mayor puts her stamp on the city. A hefty water rate increase, a drainage “fee” initiative that has her tacit approval, upheavals at Metro; now would not seem to be the time to throw more fuel on the fire. All of those involve Public Works in some way. Yet the fact remains: Marcotte is out.

Several questions immediately occur:

  • Is Marcotte supposed to take the fall for the rate increase?
  • What was the mayor unhappy about?
  • Who else, if anyone, will be following, if the mayor is unhappy?
  • Did Marcotte balk at some demand involving the rates, cooperation with Metro, backing the initiative?

Taking the fall doesn’t make sense. There’s no way that Parker can shift the blame for needing the rate increase onto Marcotte; not while she was the controller and silently oversaw the vast expansion of debt funding from capital projects into everyday operations and maintenance. So what is going on?

Perhaps we’ll hear when the usual 3:48 pm Friday evening press release goes out, but I’m not holding my breath.

Update: My view of Marcotte is probably not that well informed; I don’t interact with him in any way. Still, my impression is that he’s an even-tempered administrator who doesn’t rush to judgment, isn’t prone to arrogance, and listens to his managers. He’s been a loyal soldier publicly, whatever he’s had to say privately. He’s tried, within budget constraints, to see to it that his employees are compensated as well as in the private sector.

If I had to take a wild guess, I’d say that the rift probably had to do with the rebate program, and/or contract administration and code enforcement. The latter areas have always given me a queasy feel when I’ve dealt with them; contract inspectors sometimes act like they’re working for the contractor, not the city. There’s nothing I can specifically point to as wrong-doing (or I’d be publishing it, screw OIG), but the creation of the rebate program risks letting the rot spread. Not to mention, it removes funding from the utility system and hands it to slumlords.

Stuck on…Rumors?

After a day back at work, the rumor mill is going at a pretty good clip. I do not attest to the accuracy of any of these; they’re unconfirmed, and given my resources, may remain so.

  • The current police cadet class has been on “lockdown” or mandatory duty like the rest of the officers; only not having graduated yet, they aren’t being assigned to any duties. In other words, they’re sitting around twiddling their thumbs or studying. Meanwhile POD’s are going without people to man them. Paging Chief Hurtt….
  • The city was looking for volunteers among employees to man POD’s, tomorrow they’re just going to assign people to them.
  • “Go ahead, write me a ticket for gouging. The fine is $10,000, I’ll make half a million today.” The gouge: $5.00/gal. gasoline. Not the smartest thing to say to the officer when the person behind him has the Attorney General’s office on speed-dial. The station was shut down within fifteen minutes. (Texaco somewhere on East Fwy, I’m told.) Oh, and the fine is $250,000 if the victim is elderly. I don’t believe that profit, not at $5 a gallon, unless we’re talking truck-stop sized tanks. One or more of these numbers is wrong…
  • I’m not sure what’s up with 311. As I noted earlier, people were pulled from other branches of Public Works to assist. Then they apparently went offline?
  • Parts of the city website are down. The city’s intranet is down. E-mail was down until midday. Voice mail is iffy. Word is, some emergency generators have failed, but this may include county and other organizations.
  • Long lines at gas stations today; I saw two stations with lines blocks long. Also, too many police are being tied up keeping an eye on them.
  • Did the state really screw up the response, or is White trying to look like Giuilani? I can’t find any information other than from local media; given Wayne’s performance the other day, I don’t trust any of them on this score.
  • Not a rumor: some evacuees complaining about limited hospitality in Austin.

Update: I saw a Texaco on the East Freeway that was shut down this morning, and it was a truck stop, albeit a small one.

Stink on a Stick, and a Million-Dollar Carport

Well, the smell of filth and corruption downtown has finally reached Washington.

Two years ago the former head of Houston’s building department, Monique McGilbra, and Mayor Lee Brown’s former chief of staff Oliver Spellman were found guilty of bribery in Cleveland. Newspaper accounts at the time also claimed the government was prepared to prove McGilbra had also been bribed by a company called Keystone here in Houston. Surface was a partner in the company, but neither he nor anyone else at Keystone was charged with a crime.

In 2002 a Houston Chronicle editorial called the company the keystone of Harris County cronyism.

“I know for a fact the FBI certainly hasn’t talked to me, I wasn’t around when anything alleged to have occurred, occurred,” Emmett told us.

Commissioners El Franco Lee and Jerry Eversole led the effort to lease purchase county buildings from Keystone. Lee’s former company did business with Keystone, Jerry Eversole’s son shared office space with the company and while his company made millions from county contracts, Surface was reappointed chairman of the sports corporation by Commissioner Eversole.

Last fall we detailed Commissioner Eversole’s questionable work habits and raised questions whether he improperly used campaign funds for personal benefit. While examining his work calendars, we found evidence of his favorite golf foursome. One of the players was Michael Surface, another was Leroy Hermes who was one of the architects of Reliant Stadium. Hermes got contracts at Reliant while Surface was sports corporation chairman. We also know Hermes did engineering work on the Commissioner’s Eversole’s house. So far Eversole has refused to say how much, if anything he paid for it.

I bolded the above because of a related issue I am sure I wrote about here before (but can’t find): the parking garage at Public Works facility at 4200 Leeland. KBR had the contract for the garage design, as well as the Reliant roof. When the latter came through, they pulled all their “A-list” engineers, along with anyone competent to put a pencil to paper, and assigned them to the stadium. The only term that can describe the design produced by the remaining staff is “criminally incompetent.” I use that first word deliberately, mind you. There is no way the design should have passed muster when submitted for approval — yet it did. (Guess who was in charge of the “building department?” See the first paragraph quoted.) A few of the minor problems:

  • During the construction, the engineers missed an underground vault adjacent to the building, right where the ramp had to be placed. It was apparently a basement room that had been sealed off fifteen years before, and contained some old furniture. After several weeks delay, a change order was made to remove the concrete cover and fill in the room. Once the roof was removed, the vault turned out to include a major supporting beam that extended from under the building. Rather than unbolt or use a cutting torch to sever it, a large digging device (the kind we often call a “steam shovel”) was used to smash it loose. Needless to say, it shook the whole building.
  • The garage’s second level is supposed to be even with the office building’s second floor. It’s about eight feet lower. This made it impossible to have a level walkway directly to the 2nd floor as previously planned. (There’s just a floor to ceiling window where the door is supposed to be.)
  • The lower level of the roof means that several drain pipes are too low and directly over a sidewalk, lowering clearance so much, a portion of the sidewalk had to be blocked off.
  • The supports of the 2nd level are two rows of (rather small) I-beams, each of which supports a horizontal crosspiece; none of them are sheathed in concrete, and several are directly in parking spots, where they could be easily clipped or hit.
  • Each pair of crosspieces is linked by a large central beam that extends to the crosspieces mentioned above. These beams are larger than the crosspieces and support the center of the garage — but themselves have no support. They’re completely dependent on the smaller crosspieces which are supported by the paired I-beams.
  • Had the 2nd level been elevated to the required height, and the walkway placed where it was supposed to be, there would have been far less than the required 10′ clearance, and the ramp would have been prohibitively steep.
  • The corner is also blind; a truck coming up the ramp will have no choice but to swing wide to avoid clipping the edge of the structure, and woe to anyone trying to exit the 2nd level at the same time.
  • Technically, it’s not part of the garage, but at the rear of the lot there was supposed to be a 3rd gate and card reader, for use by utility trucks. Trucks which might be towing a trailer. However, due to the placement and design of the entrance, it was necessary to make a 90-degree left turn immediately after passing through the gate. The entrance lane is about 12 feet wide, and it is impossible to “go wide” due to a retaining wall, nor can you “cut close” due to a concrete post. I really doubt I could take that corner in my car. In an F150 longbed, even without a trailer? Laughable. The result was that the fence was retrofit with a sliding manual gate elsewhere. Unpowered, no security, and often left open.

The result of all this is that the city inspector responsible for the final approval refused to ok it for use. His assessment was that the building could hold itself up, but support no vehicles. Rumor has it he was shaking his head as he got out of his car, looking at it. I’ve seen the building myself, and frankly I’d be nervous walking under it — it looks flimsy even to the untrained eye. The I-beams are about ten inches across, and maybe a foot from the top to the bottom of the “I”. A former refinery worker of my acquaintance referred to it as “pipe racking” and suggested I park my car under it the next time a hurricane comes to Houston. (I pointed out that if I don’t work there, that would be suspicious; anyway, what makes him think the city would pay for it? They’re immune to liability.)

The entire revamp of 4200 and 4215 Leeland was supposed to cost about $5.8m, but ran closer to $7m by the time it was done. At least one million of that was the “carport.” For six years, it has been nothing more than an expensive carport. Every repair plan kept getting put off as the Legal Department kept trying to find someone to sue. KBR escaped responsibility as it sold that division, split into about three different entities, all of whom said “hey, it wasn’t us, we didn’t exist back then.” I don’t know if the name “Hermes” is connected with this little fiasco or not, but rumor (again) said it was some Greek guy doing the design — and “Hermes” ain’t a Spanish name. I hope the FBI is aware of this fiasco also and checks into that angle. It’s cost Public Works a great deal of money aside from the obvious waste; part of the reason for the garage was to consolidate two satellite facilities at Leeland. PW ended up continuing to lease a facility elsewhere for four more years before shrinking staff allowed it to jam the remaining people and vehicles into other facilities. Of course, now that the need for increased staff has become glaringly obvious (an issue I could write tons more on), there’s no place to put them.

Tonight we learn the city hall subpoenas involve Hermes Firm and design work it may have done on a fire training academy. The subpoena also asks about expense records for a trip McGilbra took to Los Angeles. Add to this the ongoing controversy swirling around the District Attorney Chuck Rosenthal and you get why the county judge was waiting for the next shoe to drop. Now it’s dropped.

“It’s like a spider with eight legs, shoes keep dropping here,” Emmett said.

Michael Surface has refused to talk with us for weeks as we’ve begun to spread our investigation to the sports corporation and the Reliant Stadium. And once again emails are in the mix. The sports corporation lawyer told us Surface deleted emails involving sports corporation business written on his Keystone company computer.

Ed Emmett wants to make a big deal about that, but while it might be suspicious, it’s not illegal. It’s his company computer and as long as he’s operating within company policy, big deal. Of course, if such emails were incriminating, we do have a crime here. Kinda hard to prove it without the e-mails, though….

Of course if any of those e-mails were to or from the Authority, then they should be on those computers also.

(Edited to fix a few typos. Edited for content at 15:26 cst.)

Aftermath of the Scam

This entry marks the first post in a new category “Rumor Control.” Information found in these posts is not verified, and accuracy may be lacking. Any opinion I express on its veracity is just that, opinion. It is mostly, as the category title says, rumor.

A little over a month ago, a story broke about Cheryl Jackson, a city employee in the water department, that was allegedly accepting bribes to give people non-existent city jobs. It seems that, aside from the damage that it did to employee reputations and morale, there have been some more lasting effects. Apparently, Ms. Jackson was not familiar to many of the employees in the building where she worked, as she was an evening or night-shift manager in the IT section. In this position, she had access to a mainframe system containing SSN’s and TDL’s of over 400,000 Houston residents, a nightmare-inducing headache for the COH. (Bear in mind that there is a big difference in having access to the system and having access to the data.) Apparently, she was also running a “credit repair” business on the side, and the way she came into contact with some of her victims may have been through her business.

The rather obvious possibility that she might have obtained their information and targeted victims through use of city resources has no doubt occurred to investigators. It will be interesting to see if anything on that comes out in the trial. Whenever that is. Prediction: considering that the Bonusgate 4 aren’t going on trial until conveniently after the November election, I bet that’s about the time Ms. Jackson will also be tried.

Apparently, she didn’t just take money and offer a fake class. The rumor mill has it that she actually brought people to her office and administered bogus drug tests! Not working during regular hours, she escaped the notice of senior managers, and other employees were not willing to challenge an assistant manager about bringing people into the building after hours. I don’t know about the drug tests, but the part about bringing people into the building is probably true, as management at 4200 Leeland has apparently cracked down on badge wearing, ordered formerly insecure doors to be kept closed, and now requires employee badges to enter the building (for employees anyway — customers can still walk in the front door.) Most employees are said to be supportive of the greater security, so at least that’s a positive.

Far more speculative and unverified are persistent rumors that management has initiated a thorough review of all applications and employee files, looking for discrepancies and/or obvious problems. (Well, at least as obvious as putting someone convicted of document tampering in a sensitive job.) At least one supervisor is said to have been terminated for a problem with their application. One version says the person lied about prior employment. Alternate rumors say it was a random drug test that got him or her. Veracity: unknown.

An unrelated security issue is the new temp hiring agency that opened next door. Apparently, there have been problems with its “not-employees” trying to park inside the city’s gated lot, urinating in public, and accosting city employees.

That’s all I’ve got for now folks.