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Listener: John Barr, Esq.
Category: Lubbock City Politics
Date: 10 Apr 2008
Time: 11:56:29 -0700
Remote Name: 66.140.100.171
PDF of the
letter below is here.
Documents (pdf) cited in the letter are:
Dear Mr. Pratt:
I write you to respond to comments made by Mayor David Miller as relates to an FBI investigation of former city council members and AAG.
The facts are:
(1) AAG was contacted by the FBI Special Agent Orendorf, Lubbock, Texas in March 2007, last year. He informed me that he would like to see all documents related to the City of Lubbock's self funded health insurance plan. I gave him every document he requested and some he didn't. AAG's CEO met with Special Agent Orendorf in March of last year without any lawyers and fully answered the agent's questions. It has been 13 months and now David Miller asserts "indictments may follow or not".
(2) I hired the immediate past Special Agent in charge of the FBI for North Texas, Northern District of Texas, Danny Defenbaugh of Defenbaugh and Associates, and Mr. Bob Mathews, immediate past agent in charge of the FBI office in Lubbock. Their assignment was to independently investigate and review all documents, emails, letters, transmittal documents, plan related material and to advise if there were any irregularities. They found none with our client's company. The Defenbaugh report was filed in Judge Reyes Court. A copy of that report is dispatched with this transmittal.
(3) I am troubled that Mayor Miller would use the City Attorney's office as well as outside attorneys retained by the City to move the Texas Court of Appeals for a writ of mandamus, which was denied. Tax payer dollars were spent to seek Judge Reyes' lifting of the gag order. Now that Mayor Miller has had the gag order lifted he proceeds to make allegations which do not assist an investigation, if one is still on going; but, harm the reputation of a company that has fully cooperated in the vary government investigation, of which his staff requested.
(4) As to his chart and press conferences, he fails to inform the public that:
a. the City added over 100 additional employees to the health plan, some with spouses and children, that caused health cost to increase;
b. he fails to state that his staff requested "out of network health care" providers which were 130% of in plan costs be allowed;
c. he does not talk about the fact that city staff's salaries were placed into the health care budget-without denoting that. These facts were told to Mayor Miller during a filmed budget meeting, a copy of which is sent under separate cover.
d. He further fails to point out that Covenant (who was 87% of all city health care expenditure dollars in 2003) contractually agreed not to raise their costs. (Please see addendum 7 to the city contract attached hereto);
e. he fails to disclose that the Covenant contract provides for audit and reimbursement by Covenant to the City , not AAG, should the charges exceed 2003 prices;
f. he does not point out that AAG has requested, in writing twice, permission to seek reimbursement, at AAG's expense, for any instance found of an overpayment, to which he and his staff have refused;
g. he fails to mention that AAG, in its response to Lubbock's suit and first press conference, requested that Judge Reyes appoint an independent CPA, of Judge Reyes' selection, to audit AAG's and the City's contract. The city objected to having an independent CPA of the Court's choice; but, insists upon using an unlicensed auditor. State law requires CPA's be licensed to audit.
Mayor Miller has made allegations which are simply designed to further his political gains at the expense of others. Most noticeably, Lubbock’s citizens. His behavior has injured former officials and others who do not have the Mayor's office to speak from. In my opinion, the use of the Mayor's office in this matter has been regrettable.
I do not have the ability to call the press and ask for equal time. I do request that my opinion be published to your listeners.
Respectfully,
John Barr
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