Max Powers

UMC and the $40 Million Question(s)

I got around to thinking about UMC and the $40 million that it will "forgive" by using some creative accounting that is owed to it from the El Paso Children's Hospital.

Why not just $40 million?  Why not $90 million?

And if you can book a loss of those proportions then that would mean UMC has enough or had enough money to have actually reduced the property tax rate.

You see where I am going?

If UMC can book a loss, then why can't the UMC, for that matter any other local jurisdiction like the County, not book a loss to reduce its property tax rate?

You cannot say on one hand, "We have to increase the tax rate because we need more money", when on the other hand you are throwing away millions.

Some folks think that the last Bush was reckless for cutting taxes without cutting spending, but compared to what UMC is doing, at least John Q. Taxpayer got something out of it.  

Now, I am sure the UMC can explain why it would not be able to reduce the property tax rate and book that lost revenue as it is doing with EPCH, but that explanation will not be simple, and would not make sense to you at all...unless you work on Wall Street.  

Think about it and ask...UMC, Commissioners Court, you name it.  Ask them.

 

 

 

Beto O'Rourke and Israel

Apparently some of you are upset about Congressman Beto O'Rourke bailing on Israeli Prime Minister Benjamin Netanyahu's speech before Congress.

Why did O'Rourke do it?  Because he represents El Paso, not Brooklyn or Miami Beach.  Politically, at home at least, he made a decision that otherwise would be political death in other parts of the country.

But even then The Tribe still overwhelmingly allies itself with the Democratic Party even though Republicans do everything short of having sex with Israel to show how much they love Israel.

Here's why.  While Republicans love the shit out of Israel, they have a perception, at least the well-to-do, of "We love Israel, but we don't want you in our country club."  Then there is the Republican base that has the "We love Israel, but in our heart-of-hearts we are trying to save you from eternal damnation."  Oh, and do not even mention to those who think Obama has turned America into a socialist hellhole about where Israel ranks in economic freedom.  Let's just say that Sweden ranks higher.

Israeli politicians know of this American Jewish conundrum.  Their job though is not to fix American problems, it is to fix Israeli problems.  So Netanyahu engages in some realpolitk by coming to the US to speak before Congress.  Yes, he may be violating some issues of American decorum, but those are American issues for Americans to sort out. 

I cannot blame Netanyahu for doing what he does.  Like other democratically elected leaders, which is a rarity in his neighborhood, he has to respond to all sorts of domestic politics. Yes, believe it or not, Israel probably has it share of Anthony Coboses and Paul Morenos.  That of course is coupled with the fact that there are people in his neighborhood that would like to see his house blown to smithereens.  You cannot blame him for acting alarmed.  Do not watch "Schindler's List", watch Conspiracy and see how educated men meeting at a beautiful lakeside villa enjoying fine wine and spirits, and great food, devise the Final Solution. 

But then again, when you think about it, his neighbors are given way too much credit.  Iran, which is Netanyahu's biggest concern, has to photo-shop rocket launch demonstrations.   Assuming Iran does fire a nuclear warhead towards Tel Aviv, and it prays to Allah that it does not crash in Jordan or the West Bank, Jerusalem will order about 20 nuclear warheads to be sent Tehran's way. 

But all this shit is something that 95 percent of El Paso does not care about. 

I mean come on, we got Paquita la del Barrio coming.

 

 

 

 

 

El Paso Children's Hospital Prognosis: Still The Same

Although EPCH did not file for bankruptcy, it basically went through a bankruptcy process with a notable exception.

Nothing about yesterday's agreement changes the fact the El Paso Children's Hospital is a failed model, that model has not changed, which a bankruptcy court would have required.

In order for EPCH to carry-on, UMC is using an accounting gimmick to write-off $40 million in liabilities.

The remaining balance of $50 million?  UMC and EPCH will be chasing the same pot of gold that EPCH said it was going to chase in order to be self-sufficient. 

Yes, EPCH will remain independent, but it will remain independent in the same way Puerto Rico is independent.  UMC is basically acting as trustee for EPCH.

Right now, County Judge Veronica Escobar has to be praying that she did not run-off UMC CEO Jim Valenti.  If not for Jim Valenti's "creativity", Escobar would be facing a media firing squad regarding EPCH filing for bankruptcy.  But even with Valenti's creativity, all he did was delay the inevitable. 

If it was not already, EPCH is on borrowed time now.

That being said, it is not too late to...ask questions about those clinics that Escobar is pushing.

 

El Paso Children's Hospital and Bankruptcy

Since former Commissioner Sergio Lewis insisted, well, let's talk the El Paso Children's Hospital and bankruptcy.

Now County Judge Veronica Escobar does not want the Children's Hospital to file for Chapter 11 bankruptcy. 

Why?

Because that would bankrupt Escobar's political career.

There is another more practical reason.  In a Chapter 11 bankruptcy, Escobar does not matter.  For that matter neither does anybody else.  The only people who matter in a Chapter 11 bankruptcy is the federal judge and trustee assigned to oversee this bankruptcy. 

Now Chapter 11 bankruptcy is a legitimate financial and legal tool available to almost all organizations.  If done correctly it can be the smartest thing an organization does.  That being said, it is also super risky.  An organization has about a 1 in 5 chance surviving Chapter 11. 

When an organization does not survive Chapter 11 it will go to Chapter 7 - liquidation.

Back to EPCH, here's the weird thing about its situation.  EPCH is a non-profit. 

The most important thing an organization must do to survive bankruptcy is demonstrate that it is viable. 

That's a problem with EPCH.  It is not viable.  So how does it intend to demonstrate to a trustee that is?

Now, let's talk creditors.

Not all creditors are created equally in bankruptcy.  Some creditors are in fact more equal than others.  There are secured creditors and unsecured creditors.  Even among those two types of creditors there are different classes of creditors.  I have no idea where UMC would fit in a bankruptcy schedule.  UMC might not get the haircut that some who are pushing for a EPCH bankruptcy hopes it would get. 

Now, let's talk assets. 

I am going to hazard a guess that EPCH has very little in assets.  Yes, it may own some medical equipment, which I assume has been paid in full, but that equipment is now used, and can be bought pennies on the dollar.   The most valuable assets EPCH has are its doctors and nurses, but that's not an asset EPCH can list, unless there are contracts between medical staff and EPCH.  But even then, those contracts may have opt-out clauses in the event of bankruptcy. 

So you have an organization with little to no assets, and no viable business model...what do you think will happen?

I can see Sierra Providence swooping in and buying EPCH for next to nothing, and shutting it down.

There are no good options.

 

 

 

 

End Ascarate Golf

Just a few days ago I posted my crazy idea about moving the El Paso Zoo to Ascarate with kicking the golf course out in mind. 

My crazy idea aside, maybe the County should really consider ending golf at Ascarate. 

First of all, the County should not be using all of that water on a golf course.  If I think pecan growers in the Lower Valley are assholes for sucking the region dry, it goes double for the County.

But there is another reason why the County should get out of the golf business...it's bad business.

People ain't play golf like they used to.

Per the Washington Post:

"Every macro-indicator that we've been looking at for the past 20 years -- rounds played, number of minorities playing, women coming into the game -- all of these things that we tracked says that there's less people playing," Mark King, a former TaylorMade president and current president of Adidas North America, told HBO's "Real Sports" last year. "I don't like where the game looks like it's going."

When less people play golf:

That drop-off has hit America's greens and links hard. More golf courses closed than opened in 2013 for the eighth straight year, according to the National Golf Foundation. And the number of course closures has sped up, averaging 137 closings every year since 2011, data from golf-industry researcher Pellucid show.

The Ascarate golf course which has been around since the Eisenhower Administration.  So I do not see a reason why Commissioners Court would be so tied down to not at least consider the idea of closing the golf course.

Imagine had the County closed the golf course, it could have plopped the Sportspark there. Oh well.  Never mind the fact that the County does not need to be developing a Sportspark when the City has something similar. 

It is really a no-brainer for the County.   The Commissioners Court can save money at the park by reducing costs associated with operations and maintenance of the golf course, and show its commitment to water conversation.

 

RIP Ted Houghton's Stint in Austin

The El Paso Time's Marty Schladen basically wrote a paean to outgoing Texas Transportation Commissioner Ted Houghton.

I bet Houghton popped a few Cialis pills before reading the article.

Despite the verbal fellatio given to Houghton by a fellow Commissioner as well as County Judge Veronica Escobar in the paean, what Houghton did as Transportation Commissioner is not really remarkable.

All Houghton did was re-arrange the deck chairs on what is our Titanic - our transportation system. 

You really have to have your head up your ass to think highways pay for themselves like State Representative Joe Pickett. 

Which to his credit, at least on this matter, Houghton does not have his head as far stuck as Pickett.

But instead of re-thinking our transportation system, Houghton has pushed for toll roads. 

In principle, I have no problem with toll roads.  But there is principle and then there is reality.  When Tollroad X does not see projected traffic, thereby not meeting projected revenue targets, guess who pays the toll? Anybody and everybody.   Austin created a tollroad alternative to I-35 in hopes of alleviating traffic, and guess what?  Nobody uses that tollroad.  Oops.

Then there is the fact fewer people in this country are buying cars, which means less in fuel tax revenue.  Cars use to mean freedom, but not anymore.  When you are not bailing out an auto company, you are paying yearly registrations, spending a quarter to half of a paycheck on overpriced tires for a depreciating asset, or voting on municipal bonds for road repair, you start to wonder whether you drive your car or if your car drives you. 

None of the these things has stopped TxDOT from pouring more concrete.

But transportation system aside, let me get back to Houghton.

Call me skeptical, but I am not buying Houghton's story that he sold Schladen that the Transportation Commissioner gig fell in Houghton's lap.  The way Houghton sold his story he acted like he was doing everyone else the favor.  Then again that is par for course for Houghton...acting like he is doing you a favor.

So what's next for Houghton?  I am sure he'll get a nice six-figure consulting gig with a construction firm. 

 

 

 

 

 

 

 

 

If Commissioner Ted Houghton says something...

...does anybody give a shit?

It's a serious question.

There are rumors that have come to my attention that Texas Transportation Commissioner Chair and El Paso resident, Ted Houghton, will not contribute to political campaigns that work with the Forma Group.

Houghton, like bloggers Martin Paredes and Jaime Abeytia, and some elected officials, like County Judge Veronica Escobar, think that Max really is Rick Armendariz, the owner of the Forma Group.

So because of this Houghton is not going to write a check for a $100 to City Representative Cortney Niland. 

You think I am being funny, but it is true.  Actually on the amount I am not sure, it could be less than that.

When it comes to candidates not named James Richard Perry, Houghton is cheap-ass, or depending on your perspective, a broke-ass.  For sure Houghton does not have Woody Hunt or Paul Foster money.  As I have mentioned before he does not even have Bobby Bowling money. 

It's really no skin off of Niland's back.  She has backers with deeper pockets than Houghton's.

Even then, Houghton's issue with me really makes no sense.

For the sake of conversation, let's say I am Rick Armendariz. 

Why does Houghton give a shit?

Seriously.

Since when do rich, old white guys give a shit about bloggers? 

Part of it probably has to do with the fact that Houghton never really graduated socially from Coronado.  The jackass that is he now is the same one that roamed the halls of Coronado.

But even then it still does not make sense. 

Maybe Martin Paredes and Jaime Abeytia have Houghton's ear.  Nope.  That doesn't make any sense either.  Houghton does not like dealing with the help.

My hunch?  County Judge Veronica Escobar.  Seriously.  She's not exactly thick-skinned (I got the emails to prove it).  I can see her telling Houghton, "It's Rick!  Rick is Max! And he is saying mean things about me!!!"

Of course, Houghton always desperate to impress wants to show his muscle, if you call it that, by withholding his $100 checks.

One of these days I am going to do "Meet Max" night at the PI, I'll get pizza and shots for Escobar and Houghton, and we can laugh about how so wrong they were, and play "Death is not an option".  For Escobar, it would be: John Cook or Mary Gonzalez...death is not an option.  For Houghton it would be: Cesar Blanco or Belen Robles...death is not an option.  It will be great.

'Til then Cortney just has to raise another hundred bucks from somewhere else.

 

 

 

 

 

The El Paso Zoo

I am not golf's biggest fan.  I don't even play.

That being said, I will watch any of the Major's.  As an aside, the problem with watching golf is that you really need to watch your alcohol intake.  It's a phucking marathon. 

Anyways.

Golf.  In and around El Paso there are several golf courses, but probably the crappiest one is Ascarate.  Why the County is in the golf business is beyond me.  That decision was made during the Eisenhower administration.  

The course only serves a few, and it really does not do anything for the folks that live around the golf course.

So I got a crazy idea.

Why not transfer Ascarate from the County to the City?  And then the City relocate the zoo to the former golf course known as Ascarate and then some.   Currently, the zoo is stuck with 35 acres. 

For comparison's sake, the Texas town of Waco has a zoo of 52 acres.  

Folks may not necessarily travel to visit a minor league ball club, but folks will travel to visit a zoo.   Why do families go to San Diego?  Not necessarily cos' of the beach.  The water is too damn cold nearly all year around.  It's got a kick ass zoo.  Why on God's green earth would you go to Columbus, Ohio? The zoo. 

People of all ages like zoos...unlike golf. 

You'll hear crazy Moby Dick tales here in El Paso about SeaWorld, even crazier still are some people who think they can bring Disney to El Paso.  Seriously some people said that as part of an effort to shut down Alejandro Lozano's crazy version of Ascarate.  Say what you will about Lozano, but his nutty idea and the response to it was an acknowledgement Ascarate sucks in it's current form.

But if you don't like this crazy idea, I still got a crazier one yet.  Get rid of Chamizal and put the zoo there.   In general, I am a homer for the National Park Service, but I also know there are some things in the NPS system that absolutely make no season what so ever.  I mean the Chamizal has the designation as Yellowstone and the Grand Canyon, which is an insult to all things Holy.

 

 

 

 

 

What's Veronica Escobar Going To Do?

When current City Representative Claudia Ordaz ran for the seat she now holds, County Judge Veronica Escobar threw her weight behind her. 

But then again it is not unlike Veronica Escobar to not only pick a side, but campaign for that side as well.

But will the District 1 race change that?

Veronica will likely NOT endorse or campaign for a candidate associated with the Forma Group.   So that will eliminate a candidate - likely David K's attorney.

Manny Hinojosa? Nope.

Daniel Lopez? Nope.

Bertha Gallardo?  You would think so because of that whole Latina thing, but that stuff is only skin deep.   So I am gonna say no.

Rick Bonart? Nah.  Bonart is not the "kiss the ring" type.

So Svarzbein?  I think it was David K that said Commissioner Vince Perez, City Representative Claudia Ordaz and Jaime Abeytia that are helping Svarzbein with his ground game.  But even then I am not sure that's enough for Escobar.  You see for Escobar the dog wags the tail, the tail never wags the dog. 

This actually might be a race that Escobar sits out.

If there is a race that she wished she got get involved in it's Niland's race and it would be to unseat Niland, not re-elect her.  Escobar doesn't like competition.