Times-Picayune, The (New Orleans, LA) - Sunday, May 15, 2005
Author: James Gill
Ray Nagin ran for mayor as a businessman and outsider, but he has now become a genuine 18-carat politician.
Nagin showed that his evolution is complete when, in his third annual state of the city speech, he started blaming the press.
It was like going back 20 years or more and listening to an embattled Dutch Morial laying into the Fourth Estate.
Perhaps Nagin is not yet in the Dutch Morial class when it comes to dealing with the press. But then Dutch Morial set a standard that few politicians can emulate.
One time he allowed that if he tried to correct every mistake that appeared in the newspaper, there would be no time left to run the city. He was quite the bantam, and, on another occasion, offered to boff a burly radio reporter on the noggin.
These recollections are not set down in rancor. Yours truly always found Dutch Morial a square guy and a very civil one too.
The same may be said of Nagin even as he resorts to the classic politician’s cop-out by suggesting that the press is determined to "change people’s perception" that he is "an honest guy with integrity."
Nobody every met an honest guy without integrity, but please let the tautology go and do not make fun of hizzoner. The press has already offended him quite enough. "You even stooped to mocking!" he cried. "You put my head on cartoon characters of Elvis Presley and a little man with a king’s outfit on."
How terrible that the press has hurt Nagin ’s feelings. But who knew he was such a delicate plant? Big-city mayors are usually made of sterner stuff.
But Nagin apparently thought he would be the first American politician ever to be spared criticism or jest. On his election, he recalled, "editors and news directors were giving each other high fives, sipping mint juleps and hurricanes." Sounds like a typical night at The Times-Picayune to me.
Nagin exaggerates, of course, but he did come to office, if not as a messiah then at least a breath of fresh air after the shady antics of the Marc Morial years. Now Nagin complains, as politicians are wont to do when the bloom wears off, that the media have turned against him.
Make that the local media, because Nagin avers that he is regarded as a hero on the national scene. "National publications tout our successes," he said. "In fact, a national media company recently gave me the scales of justice award."
Nagin , who used to work for Cox and is known as "cable guy," was indeed so honored -- by Court TV.
But if life for Nagin does consist of "local knocks and national boosts," he had better make the best of it, for, so long as there is one dubious contract or cozy insurance deal left, the media will take notice.
Nobody disputes that Nagin ’s administration is much straighter than Marc Morial’s or that great strides have been made in tackling corruption at City Hall. When Nagin says he is "not becoming richer being mayor," there are no snickers.
He may be "an honest guy" but no administration is perfect and local knocks are just part of the game. Nagin has been a politician long enough to know that there is no point in whining about it. If a cartoon depicts him as a king or the King, a brave mayor will manage a smile.
"My friends in the media," Nagin adjured, "you must help this city believe in itself."
What he means, of course, is that his friends in the media must help this city believe in Ray Nagin , politician.
Sunday, May 22, 2011
Saturday, December 12, 2009
Billboards not part of Nagin campaign - ALSO: Ad hits Landrieu with 'T' word; national arena for mayoral debate
Times-Picayune, The (New Orleans, LA) - Thursday, April 13, 2006
Author: Gordon Russell and Frank Donze Staff writer
A slew of small billboards that look remarkably like those erected locally by Mayor Ray Nagin's campaign have begun springing up in and around Atlanta and Houston.
They read: "Re-elect Our Mayor" and feature a picture of hizzoner above the slogan: "Let's Keep New Orleans Moving Forward."
But according to both the Nagin campaign and the buyer of the signs -- 54 of them, to be exact -- the ad blitz is a completely independent effort that has no relationship to the campaign.
As a result, the sponsor, Sewerage & Water Board member Ben Edwards , has been able to spend well over the $5,000 that any individual can normally pour into an effort to elect a candidate. In fact, Edwards -- a minister from the 9th Ward -- said he and members of his family have ponied up more than $100,000 so far, and they plan to spend more. Soon, he said, billboards and a radio ad supporting Nagin will be seen and heard in Baton Rouge and in the Memphis, Tenn., area.
Under state law, individuals or groups may spend as much money as they desire on "independent expenditures," defined as those not made in coordination with a political campaign. Anyone who does so is required to file reports with the state showing where the money came from and how it was spent -- a fact that came as a surprise to Edwards , who has not filed any reports.
Edwards appears to have overlooked another campaign law in donating $5,000 to Nagin's war chest recently through a nonprofit he runs, Third Shiloh Housing. Such organizations, which enjoy tax-free status, are prohibited from donating to political campaigns.
Edwards said he was aware of that rule, but unaware that Third Shiloh had cut a check to Nagin, which the mayor reported on his most recent filing. "I need to find out what happened there," Edwards said. "That will be corrected."
Though the similarity of Edwards ' billboards to those posted by Nagin might suggest a collaboration with the campaign, Edwards said he created the images he used independently by scanning one of Nagin's bumper stickers into a computer. The Nagin campaign told a similar story.
"I've never heard of him," said Nagin strategist Jim Carvin of Edwards .
But Nagin certainly has. After a more than a decade on the water board -- which earned Edwards a reputation for meddling with contractors and insisting on the hiring of disadvantaged businesses -- Nagin chose not to replace Edwards or reappoint him to a new term, but to have him serve at the mayor's pleasure.
Edwards ' largesse is impressive, dwarfing even that displayed by shipping magnate Boysie Bollinger, who has funneled $45,000 to Audubon Nature Institute executive Ron Forman's campaign through a raft of companies he controls. The $108,000 Edwards said he has spent so far is about one-fifth of what Nagin reported spending on his own behalf during the first three months of the campaign.
But while Bollinger's riches are well-known, Edwards is a minister in the devastated 9th Ward, where his church, home and other properties he controls were all trashed by Katrina, he said. Edwards said he is working to restore his properties while living in Algiers.
Although Edwards has been on the water board for well over a decade, he was never appointed by Nagin. He was first appointed by Mayor Sidney Barthelemy, and he was then reappointed by Mayor Marc Morial.
Edwards stressed that Nagin has never done him any favors, nor does he expect any in a second Nagin term. He's merely supporting a mayor he thinks has shown courage under fire.
"I think he did a superb job during the storm," Edwards said. "I think he showed leadership like I've never seen before. I'm not getting anything out of this. I just want to make sure we get the right man in office."
. . . . . . .
OFF WITH THE GLOVES: Just in time for Passover and the Easter holiday weekend, the on-air mayoral campaign has gone negative.
The first TV attack ad was launched by Forman against Lt. Gov. Mitch Landrieu, whom Forman repeatedly has described as his friend throughout the race.
The 30-second spot, which began airing Wednesday night, raises questions about Landrieu's support for taxes during his 16 years as a member of the state House, and refers to the low ratings Landrieu received from the Louisiana Association of Business and Industry.
The lone speaker in the ad identifies himself as a small contractor.
"We don't need a mayor who sees taxes as the answer to every problem," the man says as he loads painting supplies into the trunk of his car. "That's not how we rebuild New Orleans." Landrieu, who is leading in most polls, labeled the ad a pathetic attempt to win votes.
"We knew this day was going to come," Landrieu said in a prepared statement. "Ron is running a desperate campaign. Our city doesn't need divisive politics."
A campaign spokeswoman said Landrieu has the support of a coalition of small-business owners and was recognized as a legislator by the Chamber of Commerce as a "business champion."
Viewers who miss the first few seconds will miss the sole hint that the ad was produced by the Forman camp.
Forman does not appear or speak during the spot. His photo and the words "Forman for Mayor" flash on the screen at the outset.
. . . . . . .
COAST TO COAST: In an effort to reach many New Orleanians displaced by Hurricane Katrina, the next televised mayoral debate will be broadcast nationwide, an unprecedented event in the city's history.
WDSU, the local NBC affiliate, has joined hands with its cable parent, MSNBC, to stage a forum that will air both locally and across the county Monday from 7 to 8 p.m.
The joint venture will be co-moderated by WDSU anchor Norman Robinson and Chris Matthews, host of MSNBC's "Hardball." The program also will be available for viewing on WDSU.com and MSNBC.com
Candidates invited to attend are Forman, Landrieu, Nagin, lawyers Virginia Boulet and Rob Couhig, the Rev. Tom Watson, and former City Councilwoman Peggy Wilson.
A related blog post of mine.
Author: Gordon Russell and Frank Donze Staff writer
A slew of small billboards that look remarkably like those erected locally by Mayor Ray Nagin's campaign have begun springing up in and around Atlanta and Houston.
They read: "Re-elect Our Mayor" and feature a picture of hizzoner above the slogan: "Let's Keep New Orleans Moving Forward."
But according to both the Nagin campaign and the buyer of the signs -- 54 of them, to be exact -- the ad blitz is a completely independent effort that has no relationship to the campaign.
As a result, the sponsor, Sewerage & Water Board member Ben Edwards , has been able to spend well over the $5,000 that any individual can normally pour into an effort to elect a candidate. In fact, Edwards -- a minister from the 9th Ward -- said he and members of his family have ponied up more than $100,000 so far, and they plan to spend more. Soon, he said, billboards and a radio ad supporting Nagin will be seen and heard in Baton Rouge and in the Memphis, Tenn., area.
Under state law, individuals or groups may spend as much money as they desire on "independent expenditures," defined as those not made in coordination with a political campaign. Anyone who does so is required to file reports with the state showing where the money came from and how it was spent -- a fact that came as a surprise to Edwards , who has not filed any reports.
Edwards appears to have overlooked another campaign law in donating $5,000 to Nagin's war chest recently through a nonprofit he runs, Third Shiloh Housing. Such organizations, which enjoy tax-free status, are prohibited from donating to political campaigns.
Edwards said he was aware of that rule, but unaware that Third Shiloh had cut a check to Nagin, which the mayor reported on his most recent filing. "I need to find out what happened there," Edwards said. "That will be corrected."
Though the similarity of Edwards ' billboards to those posted by Nagin might suggest a collaboration with the campaign, Edwards said he created the images he used independently by scanning one of Nagin's bumper stickers into a computer. The Nagin campaign told a similar story.
"I've never heard of him," said Nagin strategist Jim Carvin of Edwards .
But Nagin certainly has. After a more than a decade on the water board -- which earned Edwards a reputation for meddling with contractors and insisting on the hiring of disadvantaged businesses -- Nagin chose not to replace Edwards or reappoint him to a new term, but to have him serve at the mayor's pleasure.
Edwards ' largesse is impressive, dwarfing even that displayed by shipping magnate Boysie Bollinger, who has funneled $45,000 to Audubon Nature Institute executive Ron Forman's campaign through a raft of companies he controls. The $108,000 Edwards said he has spent so far is about one-fifth of what Nagin reported spending on his own behalf during the first three months of the campaign.
But while Bollinger's riches are well-known, Edwards is a minister in the devastated 9th Ward, where his church, home and other properties he controls were all trashed by Katrina, he said. Edwards said he is working to restore his properties while living in Algiers.
Although Edwards has been on the water board for well over a decade, he was never appointed by Nagin. He was first appointed by Mayor Sidney Barthelemy, and he was then reappointed by Mayor Marc Morial.
Edwards stressed that Nagin has never done him any favors, nor does he expect any in a second Nagin term. He's merely supporting a mayor he thinks has shown courage under fire.
"I think he did a superb job during the storm," Edwards said. "I think he showed leadership like I've never seen before. I'm not getting anything out of this. I just want to make sure we get the right man in office."
. . . . . . .
OFF WITH THE GLOVES: Just in time for Passover and the Easter holiday weekend, the on-air mayoral campaign has gone negative.
The first TV attack ad was launched by Forman against Lt. Gov. Mitch Landrieu, whom Forman repeatedly has described as his friend throughout the race.
The 30-second spot, which began airing Wednesday night, raises questions about Landrieu's support for taxes during his 16 years as a member of the state House, and refers to the low ratings Landrieu received from the Louisiana Association of Business and Industry.
The lone speaker in the ad identifies himself as a small contractor.
"We don't need a mayor who sees taxes as the answer to every problem," the man says as he loads painting supplies into the trunk of his car. "That's not how we rebuild New Orleans." Landrieu, who is leading in most polls, labeled the ad a pathetic attempt to win votes.
"We knew this day was going to come," Landrieu said in a prepared statement. "Ron is running a desperate campaign. Our city doesn't need divisive politics."
A campaign spokeswoman said Landrieu has the support of a coalition of small-business owners and was recognized as a legislator by the Chamber of Commerce as a "business champion."
Viewers who miss the first few seconds will miss the sole hint that the ad was produced by the Forman camp.
Forman does not appear or speak during the spot. His photo and the words "Forman for Mayor" flash on the screen at the outset.
. . . . . . .
COAST TO COAST: In an effort to reach many New Orleanians displaced by Hurricane Katrina, the next televised mayoral debate will be broadcast nationwide, an unprecedented event in the city's history.
WDSU, the local NBC affiliate, has joined hands with its cable parent, MSNBC, to stage a forum that will air both locally and across the county Monday from 7 to 8 p.m.
The joint venture will be co-moderated by WDSU anchor Norman Robinson and Chris Matthews, host of MSNBC's "Hardball." The program also will be available for viewing on WDSU.com and MSNBC.com
Candidates invited to attend are Forman, Landrieu, Nagin, lawyers Virginia Boulet and Rob Couhig, the Rev. Tom Watson, and former City Councilwoman Peggy Wilson.
A related blog post of mine.
Tuesday, December 1, 2009
Damn.
Oops, wrong blog.
I guess we won't have a candidate for mayor of Dubai after all. In case you missed it, we can't afford visionary leadership any more than Dubai could.
I guess we won't have a candidate for mayor of Dubai after all. In case you missed it, we can't afford visionary leadership any more than Dubai could.
Sunday, November 22, 2009
Nagin may go on without Singleton - First offer rejected, second job unlikely
Times-Picayune, The (New Orleans, LA) - Saturday, July 6, 2002
Author: Gordon Russell Staff writer
Before proposing a six-figure job for former City Councilman Jim Singleton , Mayor Ray Nagin offered his campaign ally a City Hall position that would have paid roughly $60,000 a year. Singleton spurned the first job offer, a decision he may come to regret if he had his heart set on extending his career in city government. The lower-paying job would not have required approval by the City Council or Civil Service Commission -- unlike the second, a one-year post paying $110,482 that has attracted such stiff opposition on both fronts that Nagin is now talking openly about making do without Singleton on his staff.
In turning down the original offer, Singleton told Nagin that his 24 years as a councilman and deep institutional knowledge of the city budget process meant he was worth more money.
Singleton , who threw his support to Nagin in February after an unsuccessful mayoral bid, said he should be paid in step with other top officials in the new administration, many of whom now draw six-figure salaries.
According to Nagin , Singleton told him: "I can add value to the administration. You’ve already established market rates at this level. And that’s where I think I should be compensated."
The former councilman added that he "could go into the private sector and get a consulting contract and probably make double what’s on the table now," Nagin said.
But Nagin said he doubts the City Council will approve the new, one-year position -- executive assistant for government reorganization/operations -- that he is trying to carve out for Singleton .
Last week, a key council committee deferred action on the new position, along with 14 other jobs. Except for Councilwoman Renée Gill Pratt, none of the council members mentioned Singleton by name in voting to delay action.
But Nagin said more than half of the council members have told him privately that they won’t approve the new position because it’s for Singleton . They cited old political grudges, he said.
To recount a bit of the recent bad blood, Singleton supported the candidates who ran against council members Cynthia Willard-Lewis and Marlin Gusman two years ago. Gusman now chairs the Budget Committee that is delaying action on the job that would be Singleton ’s. Ironically, Gusman took the reins of that committee from Singleton early last year as part of a shift in power on the council.
Political rivalries
Meanwhile, Singleton ’s BOLD political group has long been a rival to the Progressive Democrat organization, of which Pratt is a member. The two groups tangled most recently in the 91st District House race two months ago, in which BOLD-backed Rosalind Peychaud beat Progressive Democrat Jalila Jefferson.
"When you have somebody who is running for a position and someone else puts someone in to run against them and it’s a very negative campaign, they don’t forget that easily," Nagin said. "I think that’s what we’re running into.
"They’re saying ‘Look, when I was running, ( Singleton ) did this . . . He put this candidate in against me.’ And those wounds seem to be fairly fresh."
Nagin called the council’s apparent reluctance to endorse the new job "unfortunate." But at the same time, he doesn’t appear interested in investing much more political capital lobbying for the job. He’s concerned that the controversy over the Singleton spot could hold up his other proposals.
"I’m still going to push, but I’m not willing to sacrifice the other positions," Nagin said. "I think we would move forward with those and then try to clean it up on the back end."
But if the council Budget Committee, the group that last week deferred action on the Singleton position, does not approve the new job at its next meeting, Nagin figures the position might be dead.
"I think if they do that, it would send a strong signal that they’re really not going to pass it," he said.
In an appearance Wednesday on David Tyree’s radio talk show, Nagin sounded like a man ready to quit pleading his case to the City Council.
"I’ve tried everything," he said. "I’ve tried talking to them nicely. I’ve tried talking to them strongly. But they have dug their heels in and basically said, ‘Look, this is inconsistent, Mr. Mayor, with what you’ve been talking about.’ "
Singleton frustrated
Singleton , while saying he doesn’t want to engage in a public back-and-forth with Nagin , seems frustrated that the new mayor has not argued more forcefully on his behalf.
"If he feels that the council should dictate to him his staff, and how it’s set up, and how it works, that’d be the first time I’ve seen a mayor do that," Singleton said. "But if he wants to do it like that, he can.
"If the council doesn’t approve (the new job), that’s the mayor’s problem. I’m going to survive one way or another."
Nagin called the job he initially offered Singleton the "Joe Giarrusso" position.
He was referring to a slot that former Mayor Marc Morial created in 1994 for Giarrusso, like Singleton a longtime councilman and political force in the city. Giarrusso, who also served as police chief for 10 years, became the city’s "criminal justice coordinator" under Morial.
Some political observers criticized that deal, just as many have criticized the Nagin - Singleton proposal, as a textbook example of political payback.
Giarrusso had endorsed Morial in the 1994 mayoral race, helping Morial shore up his share of the white vote. Likewise, Singleton ’s post-primary endorsement of Nagin was key to beefing up Nagin ’s share of the black vote in the general election.
Should the City Council refuse to approve the new position for Singleton , he won’t be able to simply go back and accept the first offer, Nagin said. The position has since been retooled: It now carries the title "commissioner of homeland security," and has a salary of $80,987.
"That’s off the table," Nagin said of the security position. "I need someone who has specific expertise in that area, and he wouldn’t qualify. Unless we can figure out another solution, we’re at a standstill right now."
Author: Gordon Russell Staff writer
Before proposing a six-figure job for former City Councilman Jim Singleton , Mayor Ray Nagin offered his campaign ally a City Hall position that would have paid roughly $60,000 a year. Singleton spurned the first job offer, a decision he may come to regret if he had his heart set on extending his career in city government. The lower-paying job would not have required approval by the City Council or Civil Service Commission -- unlike the second, a one-year post paying $110,482 that has attracted such stiff opposition on both fronts that Nagin is now talking openly about making do without Singleton on his staff.
In turning down the original offer, Singleton told Nagin that his 24 years as a councilman and deep institutional knowledge of the city budget process meant he was worth more money.
Singleton , who threw his support to Nagin in February after an unsuccessful mayoral bid, said he should be paid in step with other top officials in the new administration, many of whom now draw six-figure salaries.
According to Nagin , Singleton told him: "I can add value to the administration. You’ve already established market rates at this level. And that’s where I think I should be compensated."
The former councilman added that he "could go into the private sector and get a consulting contract and probably make double what’s on the table now," Nagin said.
But Nagin said he doubts the City Council will approve the new, one-year position -- executive assistant for government reorganization/operations -- that he is trying to carve out for Singleton .
Last week, a key council committee deferred action on the new position, along with 14 other jobs. Except for Councilwoman Renée Gill Pratt, none of the council members mentioned Singleton by name in voting to delay action.
But Nagin said more than half of the council members have told him privately that they won’t approve the new position because it’s for Singleton . They cited old political grudges, he said.
To recount a bit of the recent bad blood, Singleton supported the candidates who ran against council members Cynthia Willard-Lewis and Marlin Gusman two years ago. Gusman now chairs the Budget Committee that is delaying action on the job that would be Singleton ’s. Ironically, Gusman took the reins of that committee from Singleton early last year as part of a shift in power on the council.
Political rivalries
Meanwhile, Singleton ’s BOLD political group has long been a rival to the Progressive Democrat organization, of which Pratt is a member. The two groups tangled most recently in the 91st District House race two months ago, in which BOLD-backed Rosalind Peychaud beat Progressive Democrat Jalila Jefferson.
"When you have somebody who is running for a position and someone else puts someone in to run against them and it’s a very negative campaign, they don’t forget that easily," Nagin said. "I think that’s what we’re running into.
"They’re saying ‘Look, when I was running, ( Singleton ) did this . . . He put this candidate in against me.’ And those wounds seem to be fairly fresh."
Nagin called the council’s apparent reluctance to endorse the new job "unfortunate." But at the same time, he doesn’t appear interested in investing much more political capital lobbying for the job. He’s concerned that the controversy over the Singleton spot could hold up his other proposals.
"I’m still going to push, but I’m not willing to sacrifice the other positions," Nagin said. "I think we would move forward with those and then try to clean it up on the back end."
But if the council Budget Committee, the group that last week deferred action on the Singleton position, does not approve the new job at its next meeting, Nagin figures the position might be dead.
"I think if they do that, it would send a strong signal that they’re really not going to pass it," he said.
In an appearance Wednesday on David Tyree’s radio talk show, Nagin sounded like a man ready to quit pleading his case to the City Council.
"I’ve tried everything," he said. "I’ve tried talking to them nicely. I’ve tried talking to them strongly. But they have dug their heels in and basically said, ‘Look, this is inconsistent, Mr. Mayor, with what you’ve been talking about.’ "
Singleton frustrated
Singleton , while saying he doesn’t want to engage in a public back-and-forth with Nagin , seems frustrated that the new mayor has not argued more forcefully on his behalf.
"If he feels that the council should dictate to him his staff, and how it’s set up, and how it works, that’d be the first time I’ve seen a mayor do that," Singleton said. "But if he wants to do it like that, he can.
"If the council doesn’t approve (the new job), that’s the mayor’s problem. I’m going to survive one way or another."
Nagin called the job he initially offered Singleton the "Joe Giarrusso" position.
He was referring to a slot that former Mayor Marc Morial created in 1994 for Giarrusso, like Singleton a longtime councilman and political force in the city. Giarrusso, who also served as police chief for 10 years, became the city’s "criminal justice coordinator" under Morial.
Some political observers criticized that deal, just as many have criticized the Nagin - Singleton proposal, as a textbook example of political payback.
Giarrusso had endorsed Morial in the 1994 mayoral race, helping Morial shore up his share of the white vote. Likewise, Singleton ’s post-primary endorsement of Nagin was key to beefing up Nagin ’s share of the black vote in the general election.
Should the City Council refuse to approve the new position for Singleton , he won’t be able to simply go back and accept the first offer, Nagin said. The position has since been retooled: It now carries the title "commissioner of homeland security," and has a salary of $80,987.
"That’s off the table," Nagin said of the security position. "I need someone who has specific expertise in that area, and he wouldn’t qualify. Unless we can figure out another solution, we’re at a standstill right now."
Sunday, March 15, 2009
Persistence pays off for trio behind CBC - Business ventures fell apart in the past
Times-Picayune, The (New Orleans, LA) - Wednesday, March 16, 2005
Author: Martha Carr Staff writer
The third time’s the charm, as the saying goes.
That’s certainly the case with the well-connected trio of Jimmie Woods, Ray Valdes and Burnell Moliere, who for the past two years have been working to craft a new business venture.
It took members of the group, who have formed at least three separate corporations, awhile to land a deal.
But in late December, Community Based Corrections finally inked its first contract, with Mayor Ray Nagin’s administration to provide home monitoring for offenders found guilty in Municipal Court. Although the value of the contract depends on how many offenders are ordered to enroll, the one-year agreement has a cap of $3 million and can be renewed for up to five more years.
Valdes and Woods began their hunt for new public contracts in January 2003, when they incorporated a company called Educational Websites of America. The pair tried to persuade the Jefferson Parish public school system to sell advertisements on the district’s Web site. Under the proposal, the school system could keep 20 percent of the profits, with the remaining 80 percent going to the company.
The idea was quickly dashed by Superintendent Diane Roussel after she sought an opinion from the state attorney general’s office that suggested that by allowing ads on its Web site, the School Board could be creating a public forum. That would make it trickier for the board to restrict advertising on the site, possibly opening up the system to adult advertisements and other inappropriate messages.
So the pair moved on.
Valdes and Woods formed a second company, Nolada LLC, in April 2003, and this time included Moliere’s daughter, Shelley Rainey.
They approached Orleans Parish District Attorney Eddie Jordan with the same idea that flunked with the Jefferson Parish school system, and they got as far as posting a district attorney’s Web site and selling a few ads.
But when the Web site became public in late January 2004, controversy engulfed Jordan, and the company dismantled the site a few days later.
A state attorney general’s opinion supported the venture in some respects, saying as long as the site was not the official Web site of the district attorney’s office, the owners could decide which ads to post. But the opinion also said there could be legal problems for Jordan if the Web site accepted ads from criminal defense attorneys or if he had to prosecute any of the advertisers.
The group said they hoped to gross $2 million in ad revenue per year, which would have meant $1.6 million in revenue for the company, or a whopping 80 percent piece of the pie.
Meanwhile, Valdes and Woods were already pursing a third venture. This time, with Moliere at the helm, the group had become exclusive agents for a Covington company called ShadowTrack Technologies, a voice-based home-incarceration tracking system. In February 2004, just days after nolada.com hit the skids, the group made a pitch at an en banc meeting of Orleans Parish Criminal District Court judges. They had been escorted there by their attorney, Marlin Gusman, who at the time was a New Orleans city councilman. Gusman has since been elected criminal sheriff.
Then last March, Nagin issued a request for proposals for an expansive, government-financed home incarceration system for suitable cases in Municipal and Magistrate courts. Community Based Corrections , despite being the most expensive and lowest-rated bidder, was selected by the mayor for the Municipal Court job, on the condition that the company bring down its prices.
The company did and is now fully engaged in the contract, which started Jan. 1.
Moliere said CBC is actively seeking contracts in other cities and states. He also indicated that he is still interested in working in Erie County, N.Y., despite controversy there about the company’s no-bid contract.
"We are proposing to several state and city governments," Moliere said. "I also plan to attend the National Conference of Black Mayors conference in April of this year in Columbus, Ohio, to further market CBC’s services."
Author: Martha Carr Staff writer
The third time’s the charm, as the saying goes.
That’s certainly the case with the well-connected trio of Jimmie Woods, Ray Valdes and Burnell Moliere, who for the past two years have been working to craft a new business venture.
It took members of the group, who have formed at least three separate corporations, awhile to land a deal.
But in late December, Community Based Corrections finally inked its first contract, with Mayor Ray Nagin’s administration to provide home monitoring for offenders found guilty in Municipal Court. Although the value of the contract depends on how many offenders are ordered to enroll, the one-year agreement has a cap of $3 million and can be renewed for up to five more years.
Valdes and Woods began their hunt for new public contracts in January 2003, when they incorporated a company called Educational Websites of America. The pair tried to persuade the Jefferson Parish public school system to sell advertisements on the district’s Web site. Under the proposal, the school system could keep 20 percent of the profits, with the remaining 80 percent going to the company.
The idea was quickly dashed by Superintendent Diane Roussel after she sought an opinion from the state attorney general’s office that suggested that by allowing ads on its Web site, the School Board could be creating a public forum. That would make it trickier for the board to restrict advertising on the site, possibly opening up the system to adult advertisements and other inappropriate messages.
So the pair moved on.
Valdes and Woods formed a second company, Nolada LLC, in April 2003, and this time included Moliere’s daughter, Shelley Rainey.
They approached Orleans Parish District Attorney Eddie Jordan with the same idea that flunked with the Jefferson Parish school system, and they got as far as posting a district attorney’s Web site and selling a few ads.
But when the Web site became public in late January 2004, controversy engulfed Jordan, and the company dismantled the site a few days later.
A state attorney general’s opinion supported the venture in some respects, saying as long as the site was not the official Web site of the district attorney’s office, the owners could decide which ads to post. But the opinion also said there could be legal problems for Jordan if the Web site accepted ads from criminal defense attorneys or if he had to prosecute any of the advertisers.
The group said they hoped to gross $2 million in ad revenue per year, which would have meant $1.6 million in revenue for the company, or a whopping 80 percent piece of the pie.
Meanwhile, Valdes and Woods were already pursing a third venture. This time, with Moliere at the helm, the group had become exclusive agents for a Covington company called ShadowTrack Technologies, a voice-based home-incarceration tracking system. In February 2004, just days after nolada.com hit the skids, the group made a pitch at an en banc meeting of Orleans Parish Criminal District Court judges. They had been escorted there by their attorney, Marlin Gusman, who at the time was a New Orleans city councilman. Gusman has since been elected criminal sheriff.
Then last March, Nagin issued a request for proposals for an expansive, government-financed home incarceration system for suitable cases in Municipal and Magistrate courts. Community Based Corrections , despite being the most expensive and lowest-rated bidder, was selected by the mayor for the Municipal Court job, on the condition that the company bring down its prices.
The company did and is now fully engaged in the contract, which started Jan. 1.
Moliere said CBC is actively seeking contracts in other cities and states. He also indicated that he is still interested in working in Erie County, N.Y., despite controversy there about the company’s no-bid contract.
"We are proposing to several state and city governments," Moliere said. "I also plan to attend the National Conference of Black Mayors conference in April of this year in Columbus, Ohio, to further market CBC’s services."
Wednesday, February 18, 2009
Price no object in N.O. car - removal - City appears to choose top-dollar contract
Times-Picayune, The (New Orleans, LA) - Wednesday, March 22, 2006
Author: James Varney Staff writer
In seeking a contract to remove thousands of flooded and wrecked cars from New Orleans, Mayor Ray Nagin 's administration recommended that the city go with the highest quoted price for the job, a review of the 14 proposals submitted last year shows.
It appears the chosen proposal, a $1,000-per- car bid from Colorado-based CH2M Hill, was nearly triple the cost of at least three other bids, records show. The gap between CH2M Hill and the other companies cannot be precisely ascertained, because not every proposal included a price, and some of those that did listed tasks that others did not.
It is clear, however, that CH2M Hill's price has remained relatively constant, because administrators confirmed last week that the contract still being finalized would cost approximately $23 million and the number of uninsured junkers still clogging city streets is between 20,000 and 25,000.
That contrasts with $350 per car , the "firm, fixed price," offered by a consortium led by the Shaw Group, which a five-person review committee ranked as the second-best bid, just two points behind CH2M Hill, according to the committee's scoring sheet.
At least two other offers, from Contingency Management Solutions of Metairie and from MWH Global of Denver, were in the same ballpark as Shaw's, records show.
The contract for removing "abandoned and damaged vehicles" is a professional services one, meaning the mayor is not required by law to select the lowest bidder. On the other hand, price was supposed to figure as 20 percent of each proposal's grade, but the committee gave almost every submission the full 20 points in that category, meaning no advantage accrued to the cheaper submissions.
Jack Dupree, president of Southern Scrap Materials Co., which partnered with Shaw, said those curious figures are a warning sign that the contract doesn't pass the smell test.
"Something's not adding up here," he said. "I've never seen so little transparency in a deal, and it's a mystery why, if you've got a price and picked a winner, nothing has been signed. Why haven't they done it at the price CH2M Hill said they could do it for?"
Controversy has begun to swirl around the issue almost seven months after Katrina made thousands of water-stained, abandoned cars as much a symbol of the city's streets as potholes were before the storm. Queries first arose after revelations that a Texas car -crushing company had offered, in the aftermath of Hurricane Katrina, to pay the city $100 per junked car . The bid, made informally by K&L Auto Crushers at one of Nagin 's town hall meetings, still stands, although the terms would have to be renegotiated, K&L's Dan Simpson said last week.
Making money
A rarely invoked city ordinance could also pave the way for the rapid and potentially lucrative removal of the vehicular blight, according to some legal experts.
At the original price and with the original estimate of 30,000 flooded cars , K&L's offer would have netted the cash-starved city $3 million. In contrast, the city is proceeding with the CH2M Hill deal, which includes towing, cataloging and storing the cars at an estimated cost of about $23 million, administrators said.
Thus, even at somewhat lower rates, the city would have taken in more than $3 million if it went with K&L or one of the other car -crushing companies that have proposed similar arrangements, according to the State Police.
Meanwhile, as some national conservative pundits pounded Nagin on the topic this week, the administration appeared to circle its wagons. Neither the mayor nor his staffers have answered questions about the car - removal contract in the past few days.
In the face of the Nagin administration's silence, New Orleans City Council members questioned the deal, with some of them saying a costly arrangement makes no sense if feasible money-making ideas are on the table.
"It seems to me it would have made sense to investigate this," said Councilwoman Renee Gill Pratt. "If someone was willing to pay us money, why wouldn't we want to do that and save money, too?"
Gill Pratt said she plans to raise the issue at the council's budget committee meeting Thursday.
Slow pace?
Council members also expressed frustration at the protracted pace of events. In an interview last week before the car -crushing offers and proposal discrepancies made headlines, Parking Administrator Richard Boseman estimated it could be another six months from the time the deal is signed before the cleanup is finished, though he held out hope it could be quicker. Either way, it's been too long, Councilman Jay Batt argued.
"To take six more months at least, when maybe we could have the cars off the street right now? That's just ridiculous," he said.
Batt said he's not sure the car -crusher options are solid, given they have been presented informally. Nevertheless, if the Nagin administration were less secretive about its contracting practices, some of this embarrassment might have been avoided, Batt said.
"The mayor is tweaking his contracts while the streets look terrible," he said.
Such comments suggest the pending contract with CH2M Hill, whose press office has also not responded to phone calls, is poised to become another contentious issue between a council and an administration already at odds on a host of post-Katrina spending matters.
More spending matters could arise when the second half of the car job is being considered.
In the short term, the city is simply inking a deal with CH2M Hill to cart off the cars and warehouse them. Future work, on the other hand, will involve a second contract that includes the remediation and recycling of environmentally hazardous materials and then the scrapping of the cars . In theory, the city could make some money back at that point, but the outline of that contract hasn't even been sketched out yet, let alone advertised, officials said.
The holdups on the current contract remain maddeningly vague to some players such as Dupree of Southern Scrap. City officials said they are simply awaiting the green light from FEMA, which could reimburse the city 100 percent of the costs if it approves the contract. But the Federal Emergency Management Agency said it is waiting on paperwork from the city.
Dupree accused the city of shifting the scope of the work and blamed some of the delays on those constant changes.
"The scope of this thing has been changed by the city four or five times already," he said. "This whole thing should be much further along, and we're severely frustrated by what's happened."
Author: James Varney Staff writer
In seeking a contract to remove thousands of flooded and wrecked cars from New Orleans, Mayor Ray Nagin 's administration recommended that the city go with the highest quoted price for the job, a review of the 14 proposals submitted last year shows.
It appears the chosen proposal, a $1,000-per- car bid from Colorado-based CH2M Hill, was nearly triple the cost of at least three other bids, records show. The gap between CH2M Hill and the other companies cannot be precisely ascertained, because not every proposal included a price, and some of those that did listed tasks that others did not.
It is clear, however, that CH2M Hill's price has remained relatively constant, because administrators confirmed last week that the contract still being finalized would cost approximately $23 million and the number of uninsured junkers still clogging city streets is between 20,000 and 25,000.
That contrasts with $350 per car , the "firm, fixed price," offered by a consortium led by the Shaw Group, which a five-person review committee ranked as the second-best bid, just two points behind CH2M Hill, according to the committee's scoring sheet.
At least two other offers, from Contingency Management Solutions of Metairie and from MWH Global of Denver, were in the same ballpark as Shaw's, records show.
The contract for removing "abandoned and damaged vehicles" is a professional services one, meaning the mayor is not required by law to select the lowest bidder. On the other hand, price was supposed to figure as 20 percent of each proposal's grade, but the committee gave almost every submission the full 20 points in that category, meaning no advantage accrued to the cheaper submissions.
Jack Dupree, president of Southern Scrap Materials Co., which partnered with Shaw, said those curious figures are a warning sign that the contract doesn't pass the smell test.
"Something's not adding up here," he said. "I've never seen so little transparency in a deal, and it's a mystery why, if you've got a price and picked a winner, nothing has been signed. Why haven't they done it at the price CH2M Hill said they could do it for?"
Controversy has begun to swirl around the issue almost seven months after Katrina made thousands of water-stained, abandoned cars as much a symbol of the city's streets as potholes were before the storm. Queries first arose after revelations that a Texas car -crushing company had offered, in the aftermath of Hurricane Katrina, to pay the city $100 per junked car . The bid, made informally by K&L Auto Crushers at one of Nagin 's town hall meetings, still stands, although the terms would have to be renegotiated, K&L's Dan Simpson said last week.
Making money
A rarely invoked city ordinance could also pave the way for the rapid and potentially lucrative removal of the vehicular blight, according to some legal experts.
At the original price and with the original estimate of 30,000 flooded cars , K&L's offer would have netted the cash-starved city $3 million. In contrast, the city is proceeding with the CH2M Hill deal, which includes towing, cataloging and storing the cars at an estimated cost of about $23 million, administrators said.
Thus, even at somewhat lower rates, the city would have taken in more than $3 million if it went with K&L or one of the other car -crushing companies that have proposed similar arrangements, according to the State Police.
Meanwhile, as some national conservative pundits pounded Nagin on the topic this week, the administration appeared to circle its wagons. Neither the mayor nor his staffers have answered questions about the car - removal contract in the past few days.
In the face of the Nagin administration's silence, New Orleans City Council members questioned the deal, with some of them saying a costly arrangement makes no sense if feasible money-making ideas are on the table.
"It seems to me it would have made sense to investigate this," said Councilwoman Renee Gill Pratt. "If someone was willing to pay us money, why wouldn't we want to do that and save money, too?"
Gill Pratt said she plans to raise the issue at the council's budget committee meeting Thursday.
Slow pace?
Council members also expressed frustration at the protracted pace of events. In an interview last week before the car -crushing offers and proposal discrepancies made headlines, Parking Administrator Richard Boseman estimated it could be another six months from the time the deal is signed before the cleanup is finished, though he held out hope it could be quicker. Either way, it's been too long, Councilman Jay Batt argued.
"To take six more months at least, when maybe we could have the cars off the street right now? That's just ridiculous," he said.
Batt said he's not sure the car -crusher options are solid, given they have been presented informally. Nevertheless, if the Nagin administration were less secretive about its contracting practices, some of this embarrassment might have been avoided, Batt said.
"The mayor is tweaking his contracts while the streets look terrible," he said.
Such comments suggest the pending contract with CH2M Hill, whose press office has also not responded to phone calls, is poised to become another contentious issue between a council and an administration already at odds on a host of post-Katrina spending matters.
More spending matters could arise when the second half of the car job is being considered.
In the short term, the city is simply inking a deal with CH2M Hill to cart off the cars and warehouse them. Future work, on the other hand, will involve a second contract that includes the remediation and recycling of environmentally hazardous materials and then the scrapping of the cars . In theory, the city could make some money back at that point, but the outline of that contract hasn't even been sketched out yet, let alone advertised, officials said.
The holdups on the current contract remain maddeningly vague to some players such as Dupree of Southern Scrap. City officials said they are simply awaiting the green light from FEMA, which could reimburse the city 100 percent of the costs if it approves the contract. But the Federal Emergency Management Agency said it is waiting on paperwork from the city.
Dupree accused the city of shifting the scope of the work and blamed some of the delays on those constant changes.
"The scope of this thing has been changed by the city four or five times already," he said. "This whole thing should be much further along, and we're severely frustrated by what's happened."
Saturday, February 7, 2009
Pastor's business got big sewer contract - Firm incorporated after work began
Times-Picayune, The (New Orleans, LA) - Saturday, May 13, 2006
Author: Gordon Russell Staff writer
A multimillion-dollar subcontract involving the inspection of the city's damaged sewer system was awarded in October to a company organized by a politically active minister who incorporated the firm months after the work began.
State records show the company, Management Construction Consultant Inc., was formed Dec. 20 by Bishop O.C. Coleman of Greater Light Ministries and two of Coleman's associates.
The company was incorporated nearly three months after the firm began sending invoices to Montgomery Watson Harza, the prime contractor overseeing the job for the Sewerage & Water Board. In total, MCCI was given subcontracts worth $2.5 million for work on the city's water and sewer systems.
The company also was a subcontractor on a separate $24 million contract awarded by the city's Department of Public Works to assess the drainage system, according to Sal Mansour, a vice president at Montgomery Watson. Mansour could not provide the amount of that subcontract, and it could not be obtained by The Times-Picayune by the close of business Friday.
Coleman has been a vocal supporter of Mayor Ray Nagin. Nagin said he had "no knowledge" of the subcontracts landed by Coleman, and said he hadn't intervened on the minister's behalf.
"The bishop (Coleman) hangs around City Hall quite a bit and was there before I became elected," Nagin said in an e-mail. "I have never lobbied on behalf of him" or his companies, he said.
Thus far, FEMA has paid only a fraction of the $14 million contract given to Montgomery Watson for the sewer analysis, though the work is complete. A "working document" prepared by FEMA said much of the work performed by subcontractors, including that done by MCCI, is "not eligible for reimbursement" because of a lack of a "clear scope of work."
According to Mansour, most of MCCI's work involved taking off manhole covers to visually assess damage. Records show the company billed between $90 and $106 per hour for such labor.
Mansour of Mongomery Watson said the back-and-forth with FEMA over record-keeping is routine and is likely to be resolved. MCCI, as well as all the other subcontractors, did everything expected of it, he said.
"Unfortunately, this is what it means to work with FEMA," Mansour said. "It's torture."
'A private matter'
How MCCI came to be hired -- given that it didn't exist on paper and still lacks a listed phone number -- is something of a mystery.
Coleman, who was one of a group of African-American ministers to express support for Nagin midway through his first term after the mayor came under fire from another powerful group of black ministers led by Bishop Paul Morton, declined to discuss the contract , calling it a private matter.
"I don't feel I need to explain myself," he said, adding that his lawyers had advised him not to talk to the media.
Mansour said Montgomery Watson largely relied on subcontractors or individuals it had previously done business with, but said he is not sure if MCCI fell into that category.
Mansour said he was not surprised or bothered to learn that MCCI didn't exist on paper at the time it was hired by Montgomery Watson. In the post-Katrina chaos, he said, everyone was focused on getting work done rather than filling out paperwork; in fact, he noted, Montgomery Watson's contract with the S&WB wasn't actually signed until March.
He said he believes someone from MCCI called his company after learning about the contract and offered to help.
"I don't recall how we found them," he said. "We were short on labor, and we tried to go to different places. This company was able to provide us with manpower."
Friendly relationship
The answer may lie in the person of Benjamin Edwards Sr., a longtime member of the water board who also is a politically active minister and a friend of Coleman.
Edwards, who was originally appointed to the water board by former Mayor Sidney Barthelemy -- and who was retained by Barthelemy's successor, Marc Morial -- has long been known for his activism in the board's contracting practices. Nagin has never appointed Edwards, but has allowed him to continue serving even though his term expired in late 2003.
Edwards has long been a staunch advocate for minority-owned businesses getting a fair slice of the board's work. He said he became aware of MCCI's existence last year, but has no relationship with the firm. "I've heard of every company that comes to the Sewerage & Water Board," he said.
Edwards described his relationship with Coleman as friendly, saying Coleman attends services at his 9th Ward ministry, Third Shiloh Missionary Baptist Church, about once a year. But they've never done business together, Edwards said.
However, there is a pattern of coincidences between Edwards and Coleman. The two men, or entities they control, donated money in recent months on the same day and in the same amount to both Nagin and several City Council candidates.
In most cases, the donations are listed consecutively on campaign finance forms, suggesting they were received simultaneously.
For instance, City Councilman Oliver Thomas reported receiving $5,000 apiece on March 2 from Coleman's Management Construction Consultant Inc. and Third Shiloh Housing Inc., a nonprofit run by Edwards.
Moreover, Thomas' report notes that both were cashier's checks -- the only two contributions Thomas received that were so designated. The checks bear similar numbers as well, though they are not consecutive.
Nagin, meanwhile, reported receiving $5,000 apiece from the same two firms on March 27. The contributions are not listed consecutively -- Nagin's reports are filed electronically, in alphabetical order. The address Nagin's campaign listed for Third Shiloh, Edwards' nonprofit, is 4948 Chef Menteur Highway. That is the same address MCCI gives as its home base in state corporate filings.
Edwards said he has no idea why a check would have been recorded by the Nagin campaign that way. Nagin adviser David White said the campaign enters the address based on what's listed on the check, but he could not locate the actual checks late Friday.
Another detail shows that many of MCCI's employee time sheets, which were submitted to Montgomery Watson to back up its billing invoices, were signed by a supervisor whose name appears to be "B. Edwards."
Ben Edwards said he did not sign any invoices, and a check of Third Shiloh corporate documents he has signed shows a signature that is not similar to his. Coleman would not say who "B. Edwards" was. He referred questions to a cousin, who also said he did not have the answers.
Edwards said he does not know who "B. Edwards" is but said it is not his son, Benjamin Edwards Jr., who he said is a financial adviser based in Atlanta. Edwards added that he has "400 or 500 relatives" and does not know of any who work for MCCI. But he said he couldn't be sure that none did, either.
Independent spending
In total, MCCI has given Nagin's campaign $10,000, while Third Shiloh Housing Inc. has kicked in another $5,000 to the mayor's war chest. Neither firm has donated to Nagin's runoff opponent, Lt. Gov. Mitch Landrieu.
Edwards has acknowledged that the contributions from Third Shiloh, which is exempt from federal taxes, violates the housing group's nonprofit charter, which prohibits it from making political donations. He said he has asked some of the candidates who received the checks to return the money as a result.
White, Nagin's treasurer, said Edwards asked the campaign Thursday to return his $5,000 contribution because of the violation. White said he planned to send the money back, and noted that it's not the candidate's job to determine whether a corporation making a contribution is violating its tax-free status.
Even with his money being returned, Edwards has gone well beyond the traditional cap of $5,000 on individual donations to help Nagin's re-election campaign.
Last month, Edwards said he and other family members had spent more than $100,000 on pro-Nagin billboards in Atlanta, Houston and other hubs of Katrina evacuees. He said he planned to sponsor radio ads outside the city as well. By Friday, Edwards said his family's efforts had topped $171,000, and would exceed $200,000 by the May 20 runoff.
Nagin has raised only about $500,000 on his own behalf since Jan. 1.
"It's been a good run, and it's not over with yet," Edwards said. "I haven't spent this kind of money and been this excited about a race since I ran a campaign in 1985. I'm very excited about the direction this city is heading. I'm excited about the mayor and what he's doing."
Such spending is allowed under state law provided it is "independent," meaning the person or group paying for the ads does not collude or coordinate with the campaign. Both Edwards and Nagin campaign staffers said there has been no coordination between the two camps.
Under state law, individuals or groups who engage in such "independent expenditures" are required to file reports with the state showing where the money came from and how it was spent. Edwards said last month he was not aware of that law. He said Friday, however, that he planned to visit the state Ethics Commission, which supervises campaign-finance laws, to clarify the situation.
Edwards stressed that his strong backing of Nagin springs not from any sense of debt to the mayor but from a strong feeling that Nagin is the right man for the job.
Edwards also said he has spent about $700,000 of his own money since the storm offering rental assistance and free gutting to homeowners around the 9th Ward.
"My character and integrity speaks for itself," he said.
Edwards said he was able to bankroll the nearly $1 million cost of supporting both Nagin and his neighbors through a combination of hard work and wise investments.
In a long career at BellSouth, Edwards said he racked up thousands of hours of overtime, in part by working storm-damage details. After he left, he said, he formed a company called Edwards Telecommunications that was "very successful." Since then, the money has continued to accrue because of sound investments, he said.
Author: Gordon Russell Staff writer
A multimillion-dollar subcontract involving the inspection of the city's damaged sewer system was awarded in October to a company organized by a politically active minister who incorporated the firm months after the work began.
State records show the company, Management Construction Consultant Inc., was formed Dec. 20 by Bishop O.C. Coleman of Greater Light Ministries and two of Coleman's associates.
The company was incorporated nearly three months after the firm began sending invoices to Montgomery Watson Harza, the prime contractor overseeing the job for the Sewerage & Water Board. In total, MCCI was given subcontracts worth $2.5 million for work on the city's water and sewer systems.
The company also was a subcontractor on a separate $24 million contract awarded by the city's Department of Public Works to assess the drainage system, according to Sal Mansour, a vice president at Montgomery Watson. Mansour could not provide the amount of that subcontract, and it could not be obtained by The Times-Picayune by the close of business Friday.
Coleman has been a vocal supporter of Mayor Ray Nagin. Nagin said he had "no knowledge" of the subcontracts landed by Coleman, and said he hadn't intervened on the minister's behalf.
"The bishop (Coleman) hangs around City Hall quite a bit and was there before I became elected," Nagin said in an e-mail. "I have never lobbied on behalf of him" or his companies, he said.
Thus far, FEMA has paid only a fraction of the $14 million contract given to Montgomery Watson for the sewer analysis, though the work is complete. A "working document" prepared by FEMA said much of the work performed by subcontractors, including that done by MCCI, is "not eligible for reimbursement" because of a lack of a "clear scope of work."
According to Mansour, most of MCCI's work involved taking off manhole covers to visually assess damage. Records show the company billed between $90 and $106 per hour for such labor.
Mansour of Mongomery Watson said the back-and-forth with FEMA over record-keeping is routine and is likely to be resolved. MCCI, as well as all the other subcontractors, did everything expected of it, he said.
"Unfortunately, this is what it means to work with FEMA," Mansour said. "It's torture."
'A private matter'
How MCCI came to be hired -- given that it didn't exist on paper and still lacks a listed phone number -- is something of a mystery.
Coleman, who was one of a group of African-American ministers to express support for Nagin midway through his first term after the mayor came under fire from another powerful group of black ministers led by Bishop Paul Morton, declined to discuss the contract , calling it a private matter.
"I don't feel I need to explain myself," he said, adding that his lawyers had advised him not to talk to the media.
Mansour said Montgomery Watson largely relied on subcontractors or individuals it had previously done business with, but said he is not sure if MCCI fell into that category.
Mansour said he was not surprised or bothered to learn that MCCI didn't exist on paper at the time it was hired by Montgomery Watson. In the post-Katrina chaos, he said, everyone was focused on getting work done rather than filling out paperwork; in fact, he noted, Montgomery Watson's contract with the S&WB wasn't actually signed until March.
He said he believes someone from MCCI called his company after learning about the contract and offered to help.
"I don't recall how we found them," he said. "We were short on labor, and we tried to go to different places. This company was able to provide us with manpower."
Friendly relationship
The answer may lie in the person of Benjamin Edwards Sr., a longtime member of the water board who also is a politically active minister and a friend of Coleman.
Edwards, who was originally appointed to the water board by former Mayor Sidney Barthelemy -- and who was retained by Barthelemy's successor, Marc Morial -- has long been known for his activism in the board's contracting practices. Nagin has never appointed Edwards, but has allowed him to continue serving even though his term expired in late 2003.
Edwards has long been a staunch advocate for minority-owned businesses getting a fair slice of the board's work. He said he became aware of MCCI's existence last year, but has no relationship with the firm. "I've heard of every company that comes to the Sewerage & Water Board," he said.
Edwards described his relationship with Coleman as friendly, saying Coleman attends services at his 9th Ward ministry, Third Shiloh Missionary Baptist Church, about once a year. But they've never done business together, Edwards said.
However, there is a pattern of coincidences between Edwards and Coleman. The two men, or entities they control, donated money in recent months on the same day and in the same amount to both Nagin and several City Council candidates.
In most cases, the donations are listed consecutively on campaign finance forms, suggesting they were received simultaneously.
For instance, City Councilman Oliver Thomas reported receiving $5,000 apiece on March 2 from Coleman's Management Construction Consultant Inc. and Third Shiloh Housing Inc., a nonprofit run by Edwards.
Moreover, Thomas' report notes that both were cashier's checks -- the only two contributions Thomas received that were so designated. The checks bear similar numbers as well, though they are not consecutive.
Nagin, meanwhile, reported receiving $5,000 apiece from the same two firms on March 27. The contributions are not listed consecutively -- Nagin's reports are filed electronically, in alphabetical order. The address Nagin's campaign listed for Third Shiloh, Edwards' nonprofit, is 4948 Chef Menteur Highway. That is the same address MCCI gives as its home base in state corporate filings.
Edwards said he has no idea why a check would have been recorded by the Nagin campaign that way. Nagin adviser David White said the campaign enters the address based on what's listed on the check, but he could not locate the actual checks late Friday.
Another detail shows that many of MCCI's employee time sheets, which were submitted to Montgomery Watson to back up its billing invoices, were signed by a supervisor whose name appears to be "B. Edwards."
Ben Edwards said he did not sign any invoices, and a check of Third Shiloh corporate documents he has signed shows a signature that is not similar to his. Coleman would not say who "B. Edwards" was. He referred questions to a cousin, who also said he did not have the answers.
Edwards said he does not know who "B. Edwards" is but said it is not his son, Benjamin Edwards Jr., who he said is a financial adviser based in Atlanta. Edwards added that he has "400 or 500 relatives" and does not know of any who work for MCCI. But he said he couldn't be sure that none did, either.
Independent spending
In total, MCCI has given Nagin's campaign $10,000, while Third Shiloh Housing Inc. has kicked in another $5,000 to the mayor's war chest. Neither firm has donated to Nagin's runoff opponent, Lt. Gov. Mitch Landrieu.
Edwards has acknowledged that the contributions from Third Shiloh, which is exempt from federal taxes, violates the housing group's nonprofit charter, which prohibits it from making political donations. He said he has asked some of the candidates who received the checks to return the money as a result.
White, Nagin's treasurer, said Edwards asked the campaign Thursday to return his $5,000 contribution because of the violation. White said he planned to send the money back, and noted that it's not the candidate's job to determine whether a corporation making a contribution is violating its tax-free status.
Even with his money being returned, Edwards has gone well beyond the traditional cap of $5,000 on individual donations to help Nagin's re-election campaign.
Last month, Edwards said he and other family members had spent more than $100,000 on pro-Nagin billboards in Atlanta, Houston and other hubs of Katrina evacuees. He said he planned to sponsor radio ads outside the city as well. By Friday, Edwards said his family's efforts had topped $171,000, and would exceed $200,000 by the May 20 runoff.
Nagin has raised only about $500,000 on his own behalf since Jan. 1.
"It's been a good run, and it's not over with yet," Edwards said. "I haven't spent this kind of money and been this excited about a race since I ran a campaign in 1985. I'm very excited about the direction this city is heading. I'm excited about the mayor and what he's doing."
Such spending is allowed under state law provided it is "independent," meaning the person or group paying for the ads does not collude or coordinate with the campaign. Both Edwards and Nagin campaign staffers said there has been no coordination between the two camps.
Under state law, individuals or groups who engage in such "independent expenditures" are required to file reports with the state showing where the money came from and how it was spent. Edwards said last month he was not aware of that law. He said Friday, however, that he planned to visit the state Ethics Commission, which supervises campaign-finance laws, to clarify the situation.
Edwards stressed that his strong backing of Nagin springs not from any sense of debt to the mayor but from a strong feeling that Nagin is the right man for the job.
Edwards also said he has spent about $700,000 of his own money since the storm offering rental assistance and free gutting to homeowners around the 9th Ward.
"My character and integrity speaks for itself," he said.
Edwards said he was able to bankroll the nearly $1 million cost of supporting both Nagin and his neighbors through a combination of hard work and wise investments.
In a long career at BellSouth, Edwards said he racked up thousands of hours of overtime, in part by working storm-damage details. After he left, he said, he formed a company called Edwards Telecommunications that was "very successful." Since then, the money has continued to accrue because of sound investments, he said.
Wednesday, July 30, 2008
Attack-ad financiers revealed under deal -- Times-Picayune June 3, 2005 Friday
Morial allies backed anti-Irons TV spots
BYLINE: By Gordon Russell and Frank Donze, Staff writers
SECTION: NATIONAL; Pg. 1
LENGTH: 810 words
A lingering mystery from the 2002 mayoral campaign -- who exactly was behind a series of television spots that helped sink then-state Sen. Paulette Irons' campaign -- was quietly put to rest Thursday when the state Board of Ethics approved a settlement that named names.
And the record shows that Irons wasn't far off the mark when she blamed allies of former Mayor Marc Morial for the attack ads, which took her to task for holding two public jobs and for misrepresenting the death of her brother.
The group of 16 contributors includes a number of Morial confidants or corporations they control: restaurateur Stan "Pampy" Barre; Civil District Judge Herbert Cade, who was then a lawyer; businessman Bobby Major; airport planner Anthony Mumphrey; lawyer Roy Rodney; businesswoman and Sewerage & Water Board member Penelope Randolph; businessman and former Regional Transit Authority Chairman Robert Tucker; financier Rafael "Ray" Valdes; contractor Reginald Walker; and Jimmie Woods, who owns a trash hauling company.
The group also includes businessman John Georges, who along with Barre and Rodney was a partner of Mayor Ray Nagin in the New Orleans Brass minor-league hockey team; T.R.C. Construction LLC, whose directors are listed as Sandra Kruebbe and Jamie Santopadre; Management Services USA Inc., whose director is listed as S.F. Brechtel Jr.; and Louisiana Fleet Consultants LLC, whose directors are listed as David Picou and Michael Ecuyer.
The settlement, known as a consent opinion, is a product of a years-long effort by the ethics panel to determine whether the group ran afoul of campaign finance laws. Contributors had to agree to its terms, which include listing the donors' names as well as a $12,000 fine imposed on the four corporations and a political action committee they set up.
Irons, who wound up finishing third in the race behind Nagin and former Police Superintendent Richard Pennington, is now a Civil District Court judge.
She reacted with bemusement to the news.
"This is an old chapter from my life," Irons said. "It's finished, and I've moved on. No one on this list surprises me, except for one."
Irons would not say which of the donors she was referring to.
According to the consent opinion, all but one of the 16 contributors gave $10,000 to one of four corporations set up just weeks before the ads began running to pay for the anti-Irons effort. The exception was Tucker, who gave $20,000. Louisiana Fleet Consultants was later refunded $5,000.
The four companies shared a common registered agent -- accountant Gail Masters, a cousin of Barre -- and were incorporated pro bono by lawyers at Rodney's firm. Though the group set up a political action committee, the New Alliance Business PAC, which also listed Masters as chairwoman, the ads were purchased directly by the four companies Masters represented. That made them political action committees and obliged them to disclose their donors, the ethics opinion said.
Irons, who launched her mayoral campaign with a pledge to "take the for-sale sign off City Hall" -- a clear jab at the patronage practices of the Morial era -- shot up in early polls and was considered the front-runner in fall 2001 as the race began to heat up.
In the final weeks before the 2002 primary, she came under fire for holding more than one public-sector job, as well as for her campaign's insinuation that her brother, who was killed by police during a chase after an armed robbery, had been an innocent victim of violence.
The Irons camp, with its lead slipping away, sought to blame the Pennington and Nagin campaigns for the ads. Irons filed suit in Civil District Court, seeking without success to unmask who was paying for the ads Masters purchased.
The Irons camp questioned Masters' motives, pointing out her relationship to Barre, but Masters at the time said it had been more than 20 years since she took part in a New Orleans political campaign and scoffed at the implication that she was doing someone else's bidding.
Rodney insisted he knew nothing about the attack ads. "The only reason Ms. Irons put me in the suit was so that she could take a shot at Mayor Morial," he said at the time.
Political consultant Cheron Brylski, who advised Irons during the campaign, said that "the attacks were beyond the pale of what is hardball politics. Here is the evidence of what we all believed: that there was an organized effort to destroy her personally and professionally, not just politically."
Attorney John Rawls, who represented the four companies set up to place the ads, countered: "I stand behind those ads. They were truthful, and they performed a valuable public service. And they put the spotlight on misrepresentations and misstatements by a person trying to become mayor of New Orleans."
BYLINE: By Gordon Russell and Frank Donze, Staff writers
SECTION: NATIONAL; Pg. 1
LENGTH: 810 words
A lingering mystery from the 2002 mayoral campaign -- who exactly was behind a series of television spots that helped sink then-state Sen. Paulette Irons' campaign -- was quietly put to rest Thursday when the state Board of Ethics approved a settlement that named names.
And the record shows that Irons wasn't far off the mark when she blamed allies of former Mayor Marc Morial for the attack ads, which took her to task for holding two public jobs and for misrepresenting the death of her brother.
The group of 16 contributors includes a number of Morial confidants or corporations they control: restaurateur Stan "Pampy" Barre; Civil District Judge Herbert Cade, who was then a lawyer; businessman Bobby Major; airport planner Anthony Mumphrey; lawyer Roy Rodney; businesswoman and Sewerage & Water Board member Penelope Randolph; businessman and former Regional Transit Authority Chairman Robert Tucker; financier Rafael "Ray" Valdes; contractor Reginald Walker; and Jimmie Woods, who owns a trash hauling company.
The group also includes businessman John Georges, who along with Barre and Rodney was a partner of Mayor Ray Nagin in the New Orleans Brass minor-league hockey team; T.R.C. Construction LLC, whose directors are listed as Sandra Kruebbe and Jamie Santopadre; Management Services USA Inc., whose director is listed as S.F. Brechtel Jr.; and Louisiana Fleet Consultants LLC, whose directors are listed as David Picou and Michael Ecuyer.
The settlement, known as a consent opinion, is a product of a years-long effort by the ethics panel to determine whether the group ran afoul of campaign finance laws. Contributors had to agree to its terms, which include listing the donors' names as well as a $12,000 fine imposed on the four corporations and a political action committee they set up.
Irons, who wound up finishing third in the race behind Nagin and former Police Superintendent Richard Pennington, is now a Civil District Court judge.
She reacted with bemusement to the news.
"This is an old chapter from my life," Irons said. "It's finished, and I've moved on. No one on this list surprises me, except for one."
Irons would not say which of the donors she was referring to.
According to the consent opinion, all but one of the 16 contributors gave $10,000 to one of four corporations set up just weeks before the ads began running to pay for the anti-Irons effort. The exception was Tucker, who gave $20,000. Louisiana Fleet Consultants was later refunded $5,000.
The four companies shared a common registered agent -- accountant Gail Masters, a cousin of Barre -- and were incorporated pro bono by lawyers at Rodney's firm. Though the group set up a political action committee, the New Alliance Business PAC, which also listed Masters as chairwoman, the ads were purchased directly by the four companies Masters represented. That made them political action committees and obliged them to disclose their donors, the ethics opinion said.
Irons, who launched her mayoral campaign with a pledge to "take the for-sale sign off City Hall" -- a clear jab at the patronage practices of the Morial era -- shot up in early polls and was considered the front-runner in fall 2001 as the race began to heat up.
In the final weeks before the 2002 primary, she came under fire for holding more than one public-sector job, as well as for her campaign's insinuation that her brother, who was killed by police during a chase after an armed robbery, had been an innocent victim of violence.
The Irons camp, with its lead slipping away, sought to blame the Pennington and Nagin campaigns for the ads. Irons filed suit in Civil District Court, seeking without success to unmask who was paying for the ads Masters purchased.
The Irons camp questioned Masters' motives, pointing out her relationship to Barre, but Masters at the time said it had been more than 20 years since she took part in a New Orleans political campaign and scoffed at the implication that she was doing someone else's bidding.
Rodney insisted he knew nothing about the attack ads. "The only reason Ms. Irons put me in the suit was so that she could take a shot at Mayor Morial," he said at the time.
Political consultant Cheron Brylski, who advised Irons during the campaign, said that "the attacks were beyond the pale of what is hardball politics. Here is the evidence of what we all believed: that there was an organized effort to destroy her personally and professionally, not just politically."
Attorney John Rawls, who represented the four companies set up to place the ads, countered: "I stand behind those ads. They were truthful, and they performed a valuable public service. And they put the spotlight on misrepresentations and misstatements by a person trying to become mayor of New Orleans."
Monday, February 18, 2008
Bomb-proof, not whim-proof: Times-Picayune, October 3, 2007 Wednesday
New Orleans has plenty of pressing needs as it struggles to recover from Hurricane Katrina, but new trash cans surely don't belong on the list.
The city just bought new trash cans three years ago, and there is plenty to criticize about that deal. The 600 receptacles, which cost $450,000, were bought through a no-bid contract, even though trash cans that provide advertising are typically free to cities, which usually get a share of the ad revenue. What's more, the company that supplied them, Niche Marketing USA, acknowledged a business connection with Terrence Rice, brother of then-Chief Administrative Office Charles Rice -- a relationship that the Rices deny.
But even though the purchase was plainly a bad business move, the trash cans -- touted as bomb-proof -- certainly hadn't worn out this quickly.
That's why it's hard to understand the Nagin administration's decision to get rid of them and spend $335,000 for 500 new wrought-iron trash cans. Sanitation Director Veronica White says she wants to get another 500 if the City Council gives her a large enough budget to do so, which would mean a whopping $670,000 for new trash cans.
The replacements might be more attractive than the receptacles that Mayor Nagin now mocks as "little munchkin trash cans." But if a concern for aesthetics is the driving force here, the administration should be able to find much better uses for the money.
There's a real danger, for example, that New Orleans could lose its distinctive appearance and history to the wrecking ball if salvageable homes and businesses are torn down. Why not give the New Orleans Redevelopment Authority some additional money to hire staff to clear titles of blighted properties so that they can be returned to commerce?
For $335,000, the city could hire additional building inspectors to meet the demand as more and more people rebuild and renovate their flood-damaged homes. The Nagin administration has also promised to add safeguards to prevent unwarranted demolitions, including a final review 48 hours before a teardown is scheduled. That's an important protection, but it's bound to add to the work load.
New Orleans doesn't need a trash can makeover, and the city should have better sense than to waste scarce resources in the midst of recovery.
The city just bought new trash cans three years ago, and there is plenty to criticize about that deal. The 600 receptacles, which cost $450,000, were bought through a no-bid contract, even though trash cans that provide advertising are typically free to cities, which usually get a share of the ad revenue. What's more, the company that supplied them, Niche Marketing USA, acknowledged a business connection with Terrence Rice, brother of then-Chief Administrative Office Charles Rice -- a relationship that the Rices deny.
But even though the purchase was plainly a bad business move, the trash cans -- touted as bomb-proof -- certainly hadn't worn out this quickly.
That's why it's hard to understand the Nagin administration's decision to get rid of them and spend $335,000 for 500 new wrought-iron trash cans. Sanitation Director Veronica White says she wants to get another 500 if the City Council gives her a large enough budget to do so, which would mean a whopping $670,000 for new trash cans.
The replacements might be more attractive than the receptacles that Mayor Nagin now mocks as "little munchkin trash cans." But if a concern for aesthetics is the driving force here, the administration should be able to find much better uses for the money.
There's a real danger, for example, that New Orleans could lose its distinctive appearance and history to the wrecking ball if salvageable homes and businesses are torn down. Why not give the New Orleans Redevelopment Authority some additional money to hire staff to clear titles of blighted properties so that they can be returned to commerce?
For $335,000, the city could hire additional building inspectors to meet the demand as more and more people rebuild and renovate their flood-damaged homes. The Nagin administration has also promised to add safeguards to prevent unwarranted demolitions, including a final review 48 hours before a teardown is scheduled. That's an important protection, but it's bound to add to the work load.
New Orleans doesn't need a trash can makeover, and the city should have better sense than to waste scarce resources in the midst of recovery.
Clean up the mess; Times Picayune: November 29, 2007 Thursday
The city of New Orleans has made an utter mess of its deals with two trash-hauling companies, signing expensive contracts that don't adequately address the needs of residents who are still cleaning up after Hurricane Katrina.
The contracts refer to unlimited collection of bulky waste, but the city is not holding the companies to that standard. Complicating matters further, the City Council passed an ordinance at the adminstration's request last April that spells out an overly narrow definition of bulky waste.
The Nagin administration needs to renegotiate the contracts with Richard's Disposal and Metro Disposal to get a better deal, one that gives the city its money's worth and doesn't leave residents wondering what they can put out on the curb. The city also may need to revisit the ordinance and fix the definition of bulky waste so that residents get the service they were promised and for which they are footing the bill.
New Orleans is paying roughly double what it spent on trash collection before the storm and more than twice what Jefferson Parish is paying now per capita for more comprehensive service. It doesn't make sense for New Orleans to pay so much more -- a combined $24.6 million -- if the city isn't actually getting more for the money.
That something more could be the "unlimited bulky waste," including demolition matter, that is mentioned in the contracts. But City Attorney Penya Moses-Fields maintains that nothing in the contracts suggests that they were intended to take over storm debris removal.
Even so, the broad, vague language in the contracts leaves room for question. Several companies decided not to bid because they said the unlimited bulky waste provision made it too difficult to estimate costs.
Redoing the contracts would make it possible to spell out in detail what the companies are expected to pick up when it comes to bulky waste. That's something that would benefit the trash haulers as well as the city since the seven-year contracts extend past Mayor Nagin's term. A future administration could have a different interpretation of the contracts' demands.
Clearly, New Orleans still needs more extensive service when it comes to storm debris. Since FEMA quit paying the Army Corps of Engineers to haul away debris in September, waste piles have been springing up across the city. People who are trying to restore their storm-damaged homes have been forced to pay private haulers, and that's not an acceptable situation.
Mayor Nagin's solution is to spend $1.5 million on a separate debris-removal contract, and certainly the city needs to do something to remove the debris and lift the burden from homeowners. City Council President Arnie Fielkow wants to press FEMA to resume paying for the pickup, and that's worth a try.
However, the city shouldn't at the same time continue paying Richards and Metro so much money for routine service. The issue here isn't the performance of the haulers; by all accounts they've done a good job. But a recovering city with pressing needs and limited resources can't afford to overpay for services.
The contracts refer to unlimited collection of bulky waste, but the city is not holding the companies to that standard. Complicating matters further, the City Council passed an ordinance at the adminstration's request last April that spells out an overly narrow definition of bulky waste.
The Nagin administration needs to renegotiate the contracts with Richard's Disposal and Metro Disposal to get a better deal, one that gives the city its money's worth and doesn't leave residents wondering what they can put out on the curb. The city also may need to revisit the ordinance and fix the definition of bulky waste so that residents get the service they were promised and for which they are footing the bill.
New Orleans is paying roughly double what it spent on trash collection before the storm and more than twice what Jefferson Parish is paying now per capita for more comprehensive service. It doesn't make sense for New Orleans to pay so much more -- a combined $24.6 million -- if the city isn't actually getting more for the money.
That something more could be the "unlimited bulky waste," including demolition matter, that is mentioned in the contracts. But City Attorney Penya Moses-Fields maintains that nothing in the contracts suggests that they were intended to take over storm debris removal.
Even so, the broad, vague language in the contracts leaves room for question. Several companies decided not to bid because they said the unlimited bulky waste provision made it too difficult to estimate costs.
Redoing the contracts would make it possible to spell out in detail what the companies are expected to pick up when it comes to bulky waste. That's something that would benefit the trash haulers as well as the city since the seven-year contracts extend past Mayor Nagin's term. A future administration could have a different interpretation of the contracts' demands.
Clearly, New Orleans still needs more extensive service when it comes to storm debris. Since FEMA quit paying the Army Corps of Engineers to haul away debris in September, waste piles have been springing up across the city. People who are trying to restore their storm-damaged homes have been forced to pay private haulers, and that's not an acceptable situation.
Mayor Nagin's solution is to spend $1.5 million on a separate debris-removal contract, and certainly the city needs to do something to remove the debris and lift the burden from homeowners. City Council President Arnie Fielkow wants to press FEMA to resume paying for the pickup, and that's worth a try.
However, the city shouldn't at the same time continue paying Richards and Metro so much money for routine service. The issue here isn't the performance of the haulers; by all accounts they've done a good job. But a recovering city with pressing needs and limited resources can't afford to overpay for services.
Thursday, October 18, 2007
S and WB sell-off is sunk
Times-Picayune (New Orleans, LA)
April 20, 2004 Tuesday
Sand WB sell-off is sunk, Nagin says;
New draft bid hasn't drawn firms' interest
BYLINE: By Martha Carr; Staff writer
SECTION: NATIONAL; Pg. 1
LENGTH: 1092 words
After seven months of silence, Mayor Ray Nagin said he's finally ready to call an end to the contentious privatization drive that has consumed the Sewerage and Water Board for the past five years, as two administrations and scores of residents debated -- often hotly -- whether to turn over the city's sewer and water systems to a private company's control.
Nagin last week said he will officially declare the $5 million effort dead at one of the board's next several monthly meetings, primarily because a new draft bid has failed to attract three private firms interested in operating both the sewer and water systems. The water board meets Wednesday and again on May 19.
"In the next couple of meetings, it will be done," Nagin said last week. "We've got three companies that are interested, but one wants the whole piece and the other two just want part of it. And you know that's not going through. I just don't see it, unless some miracle happens."
Drive began in 1999
The effort to privatize the city's sewer and water systems was initiated in 1999 by City Councilman Eddie Sapir, who presented the idea as a way to stave off future rate increases by holding down costs at the troubled agency.
At the time, the water board had inked a deal with the U.S. Environmental Protection Agency to spend more than $200 million repairing leaky underground sewer pipes that had been polluting Lake Pontchartrain, or suffer massive fines. Board members knew the expense of the 14-year job -- whose price tag has since grown to $650 million -- would mean huge rate increases, a politically dicey prospect. So they began investigating private management as a way to save money.
Former Mayor Marc Morial became the effort's key proponent and went on to shepherd the 20-year, $1 billion prospective contract through its first incarnation. Observers found plenty to criticize: Millions of taxpayer dollars went to consultants who drafted the bid proposals, while the three major companies interested in the job -- United Water, US Filter and OMI/Thames -- each put politically connected consultants on the payroll. Critics also said the process was often disorganized, confusing and not in the public's best interest.
The effort ended abruptly in October 2002 with a 6-5 vote, when opponents on the board orchestrated a coup to reject all bids.
Not enough bidders
Despite the controversy, Nagin chose to revive the beleaguered drive, promising to fast-track the process and solicit new bids by February 2003. More than a year later, the water board has yet to issue a second bid document.
Nagin says that's because there aren't enough private companies showing interest in the job to ensure the water board will get a competitive price. At least one company, United Water, has said it pulled back in part because of a move by privatization opponent and former City Councilman Jim Singleton to change the City Charter to require voter approval for any large water and sewer privatization contract.
Last year legislators wrote the same provision into state statutes, further solidifying what proponents called a major roadblock to attracting multiple companies. United Water withdrew from the process last June, leaving only Veolia Water North America, formerly known as US Filter, and a S and WB employee group publicly saying they would bid on the job. A Veolia spokesman declined to comment Monday.
Nagin said he's talked to companies about the possibility of splitting the job into smaller parts, such as water only or sewer only, but still hasn't gotten the response he thinks he needs.
"So we are probably going to exit out," he said.
'Organism' repels change
It won't be the first time.
Nagin, at his own admission, has run into numerous political roadblocks in his other attempts to reform the quasi-state agency. Most recently he found himself unable to garner the support he needed among New Orleans lawmakers to pass two proposed bills in the current legislative session. One bill would have removed the mayor and three City Council members from the 13-member board, and a second would have brought the agency under city control.
Nagin has since agreed to ask the Legislature for permission to convene a committee to study the idea.
"I think it's an organism that has its own white blood cells and it attacks anything that looks like it's different and is invading the body," Nagin said of the water board. "Think about it. It is an organism that repels change. It's unbelievable."
So now Nagin is setting his sights on finding a permanent replacement for former Executive Director Harold Gorman, who was fired last June. City Councilman Marlin Gusman, who is chairing the board's search committee, said a list of finalists for the job should be presented to Nagin in the next several months.
Once a new executive director is in place, Nagin said he wants to work with that person to re-engineer the agency. That task, he hopes, will be made easier after more changes are made to the board.
Support for shifting focus
The terms of board members Henry Dillon and Bill Grace expire this year, according to a board spokesman. A third board member, Ben Edwards, is serving at the mayor's pleasure after his nine-year term expired last November.
"By that time the board's makeup should change a little more, and we should be able to get it done," Nagin said.
That's music to the ears of John Wilson, who led the employee group that bid on the first privatization proposal. Employees have long advocated keeping the agency under public control and restructuring it to provide better, cheaper services to customers.
"That would completely make sense," Wilson said. "The leadership of the organization is an issue that has to be settled, and we could definitely go along with that."
Gusman and board member Tommie Vassel said they also would support shifting focus from privatization to the executive search and re-engineering, after months of the issue lying dormant.
"I do think it is right for us to move forward," Gusman said. "When you have issues of that magnitude hanging over your head, it is difficult to move at the speed you ought to."
Vassel said: "We've explored the options, looked at what other cities and agencies have done, and we're probably at that point where the board feels comfortable voting one way or another. The mayor has apparently reached that conclusion as well."
Note: For some reason, blogger wouldn't publish ampersands, hence the "S and WB's"
April 20, 2004 Tuesday
Sand WB sell-off is sunk, Nagin says;
New draft bid hasn't drawn firms' interest
BYLINE: By Martha Carr; Staff writer
SECTION: NATIONAL; Pg. 1
LENGTH: 1092 words
After seven months of silence, Mayor Ray Nagin said he's finally ready to call an end to the contentious privatization drive that has consumed the Sewerage and Water Board for the past five years, as two administrations and scores of residents debated -- often hotly -- whether to turn over the city's sewer and water systems to a private company's control.
Nagin last week said he will officially declare the $5 million effort dead at one of the board's next several monthly meetings, primarily because a new draft bid has failed to attract three private firms interested in operating both the sewer and water systems. The water board meets Wednesday and again on May 19.
"In the next couple of meetings, it will be done," Nagin said last week. "We've got three companies that are interested, but one wants the whole piece and the other two just want part of it. And you know that's not going through. I just don't see it, unless some miracle happens."
Drive began in 1999
The effort to privatize the city's sewer and water systems was initiated in 1999 by City Councilman Eddie Sapir, who presented the idea as a way to stave off future rate increases by holding down costs at the troubled agency.
At the time, the water board had inked a deal with the U.S. Environmental Protection Agency to spend more than $200 million repairing leaky underground sewer pipes that had been polluting Lake Pontchartrain, or suffer massive fines. Board members knew the expense of the 14-year job -- whose price tag has since grown to $650 million -- would mean huge rate increases, a politically dicey prospect. So they began investigating private management as a way to save money.
Former Mayor Marc Morial became the effort's key proponent and went on to shepherd the 20-year, $1 billion prospective contract through its first incarnation. Observers found plenty to criticize: Millions of taxpayer dollars went to consultants who drafted the bid proposals, while the three major companies interested in the job -- United Water, US Filter and OMI/Thames -- each put politically connected consultants on the payroll. Critics also said the process was often disorganized, confusing and not in the public's best interest.
The effort ended abruptly in October 2002 with a 6-5 vote, when opponents on the board orchestrated a coup to reject all bids.
Not enough bidders
Despite the controversy, Nagin chose to revive the beleaguered drive, promising to fast-track the process and solicit new bids by February 2003. More than a year later, the water board has yet to issue a second bid document.
Nagin says that's because there aren't enough private companies showing interest in the job to ensure the water board will get a competitive price. At least one company, United Water, has said it pulled back in part because of a move by privatization opponent and former City Councilman Jim Singleton to change the City Charter to require voter approval for any large water and sewer privatization contract.
Last year legislators wrote the same provision into state statutes, further solidifying what proponents called a major roadblock to attracting multiple companies. United Water withdrew from the process last June, leaving only Veolia Water North America, formerly known as US Filter, and a S and WB employee group publicly saying they would bid on the job. A Veolia spokesman declined to comment Monday.
Nagin said he's talked to companies about the possibility of splitting the job into smaller parts, such as water only or sewer only, but still hasn't gotten the response he thinks he needs.
"So we are probably going to exit out," he said.
'Organism' repels change
It won't be the first time.
Nagin, at his own admission, has run into numerous political roadblocks in his other attempts to reform the quasi-state agency. Most recently he found himself unable to garner the support he needed among New Orleans lawmakers to pass two proposed bills in the current legislative session. One bill would have removed the mayor and three City Council members from the 13-member board, and a second would have brought the agency under city control.
Nagin has since agreed to ask the Legislature for permission to convene a committee to study the idea.
"I think it's an organism that has its own white blood cells and it attacks anything that looks like it's different and is invading the body," Nagin said of the water board. "Think about it. It is an organism that repels change. It's unbelievable."
So now Nagin is setting his sights on finding a permanent replacement for former Executive Director Harold Gorman, who was fired last June. City Councilman Marlin Gusman, who is chairing the board's search committee, said a list of finalists for the job should be presented to Nagin in the next several months.
Once a new executive director is in place, Nagin said he wants to work with that person to re-engineer the agency. That task, he hopes, will be made easier after more changes are made to the board.
Support for shifting focus
The terms of board members Henry Dillon and Bill Grace expire this year, according to a board spokesman. A third board member, Ben Edwards, is serving at the mayor's pleasure after his nine-year term expired last November.
"By that time the board's makeup should change a little more, and we should be able to get it done," Nagin said.
That's music to the ears of John Wilson, who led the employee group that bid on the first privatization proposal. Employees have long advocated keeping the agency under public control and restructuring it to provide better, cheaper services to customers.
"That would completely make sense," Wilson said. "The leadership of the organization is an issue that has to be settled, and we could definitely go along with that."
Gusman and board member Tommie Vassel said they also would support shifting focus from privatization to the executive search and re-engineering, after months of the issue lying dormant.
"I do think it is right for us to move forward," Gusman said. "When you have issues of that magnitude hanging over your head, it is difficult to move at the speed you ought to."
Vassel said: "We've explored the options, looked at what other cities and agencies have done, and we're probably at that point where the board feels comfortable voting one way or another. The mayor has apparently reached that conclusion as well."
Note: For some reason, blogger wouldn't publish ampersands, hence the "S and WB's"
Friday, September 21, 2007
3rd place fits bill for N.O. contract Times Picayune
Times-Picayune (New Orleans)
March 16, 2005 Wednesday
3rd place fits bill for N.O. contract;
Winning firm rated last, lacks experience
BYLINE: By Martha Carr, Staff writer
SECTION: NATIONAL; Pg. 1
LENGTH: 2734 words
Mayor Ray Nagin has awarded a politically active company with no experience in the criminal justice field a contract to create a home monitoring program for municipal offenders, a deal the Nagin administration says could save the city hundreds of thousands in jail costs this year alone.
The mayor passed over two higher-scoring bidders to award a one-year contract with five one-year extensions to Community Based Corrections LLC, a local, minority-owned company created in October 2003 by Burnell Moliere, Jimmie Woods and Ray Valdes. All three have close political ties to District Attorney Eddie Jordan and former Mayor Marc Morial.
A three-person selection committee gave Community Based Corrections the lowest score of the three qualifying bidders, city documents show. The company's price also was the highest, but the mayor allowed CBC to rework its proposal to bring costs more in line with the other two bids, records show.
The contract is capped at $3 million, but the value depends on how many offenders are ordered to enroll.
Neither of the two competing bidders, which included another local, minority-owned firm, was allowed to resubmit their proposals for the Municipal Court job.
The city did renegotiate, however, with minority-owned Total Sentencing Alternatives Program, which received the second highest score, to provide electronic monitoring in Criminal District Court under a separate contract. That contract has yet to be finalized.
Because the contracts are for professional services, Nagin is not required by law to select the lowest bidder.
While the mayor previously has clashed with some of the politicians that CBC's officers are close to, campaign records show that companies owned by Moliere and Woods have begun contributing to Nagin since he took charge at City Hall.
Metro Disposal, a trash-hauling company owned by Woods, gave the mayor $2,500 in February 2003 and another $2,500 in May 2004. Moliere's janitorial company, AME Services, contributed $5,000 to Nagin in February 2003. Both companies received public contracts under Morial and have maintained them during the current administration.
Nagin campaign finance records filed with the state report no donations by either of the two firms that bid unsuccessfully against CBC or by their chief executive officers.
But Nagin's chief administrative officer, Charles Rice, said politics played no part in the mayor's selection of CBC. Rather, the mayor wanted to save the city money and help out local, minority-owned businesses. When asked why the city didn't award both contracts to Total Sentencing Alternatives Program, the minority bidder with the most experience and a higher rating by the selection committee, Rice said the mayor wanted to "spread the wealth."
"I think what the public needs to know is that we selected two vendors, both African-American owned companies, both local vendors, and if we can receive the same service at virtually the same cost from a local vendor, I think it's in the city's best interest to keep the money here at home and employ local people rather than send the money to Georgia," Rice said, referring to the highest-rated and cheapest bidder, PPS of Lawrenceville, Ga.
PPS is a subsidiary of the publicly traded company Universal Health Services.
Rice also said it is his understanding that Valdes is no longer a principal of CBC. Moliere said that's true, but that Valdes continues to provide marketing services for the company. Former Jefferson Parish Council President Robert Evans Jr. also worked for a time as the company's executive vice president, according to CBC's bid documents. Moliere said Evans is no longer with the company.
Cheaper way to monitor
Home monitoring systems have become popular in recent years as cities nationwide grapple with the skyrocketing costs of incarceration. Using voice recognition technology, electronic bracelets or GPS tracking, home monitoring allows nonviolent offenders to remain out of jail while fulfilling the terms of their court sentence.
Proponents say it's an especially viable concept in Municipal Court, where judges typically deal with minor offenses, such as public drunkenness, lewd conduct or criminal trespassing.
But until now, Municipal Court has used home monitoring on a limited basis, with the offender picking up the cost. Rice said enrollment wasn't high enough to significantly cut the city's jail costs, which have ballooned from $29 million in 2002 to $35.1 million last year for all offenders.
"We live in a very poor city, and most of the individuals in Municipal Court are indigent and do not have the financial wherewithal to pay costs," Rice said.
So the city has moved to government-financed home monitoring system, which Municipal Judge John Shea said gives judges an alternative to throwing offenders in jail when they don't pay fines. Last year, almost 34,000 offenders went to jail after failing to pay court-ordered fines, Municipal Court Clerk Ronald Lampard said.
Now, instead of paying $22.39 a day to keep a municipal prisoner in jail, the city will pay $7.73 to CBC for voice monitoring and probation management, a potential savings of $14.66 per day.
The city is required to pay the cost of jailing residents who break city laws, as well as those awaiting trial on state charges.
If CBC monitors 250 to 400 offenders a day -- an average that city officials say is a reasonable estimate -- it could save taxpayers $1.3 million to $2.1 million a year.
In the program's first two months, a total of 364 offenders were enrolled, at a cost savings of $159,030, Moliere said.
How it works
The monitoring works like this:
An offender is sentenced to home monitoring, and a case worker develops a call schedule to fit the nature of the offense. The offender then calls in and registers his or her voice, and is paged, or required to call in on a prescribed schedule, depending upon where the offender is supposed to be at a certain time. If an offender fails to call in or the system detects another voice, the authorities are notified.
Rice said there is no way the city can lose under the program. CBC doesn't get paid unless offenders enroll in the program, and the more offenders enroll, the greater the savings in jail costs, he said. Judges also have the option of requiring an offender to pay for the monitoring, city officials said.
"I assure you this is not set up for anybody to make a killing off of anything," Rice said. "It's all about reducing the amount of money we pay to the sheriff, and making things more efficient."
A spokeswoman for Orleans Parish Criminal Sheriff Marlin Gusman, whose budget could be adversely affected by a decrease in jail population, said the sheriff has seen little impact thus far.
Lowest bidder skipped
But records show the city could have saved more had it awarded the contract to the low bidder.
The city's request for proposals was broken down into three parts: home monitoring, probation management and fine collection.
If the city had hired PPS, the cheapest bidder and the company with the highest score from the selection committee, it would be paying $7.50 per day for voice monitoring and probation management, compared with $7.73 a day with CBC.
Although the difference is nominal, CBC also gets 10 percent of every delinquent fine it collects, down from the 38 percent it originally proposed. PPS offered to do fine collection free of charge.
Clay Cox, chief executive officer for PPS, said even CBC's lowered price accounts for some "good margins." He also said his company would have welcomed an opportunity to renegotiate its bid.
"Getting a percentage of a fine and a fee, that's crazy," Cox said. "There is plenty of money to be made by doing it right and treating people fairly. The fine money belongs to the taxpayers."
William Welch, chief executive officer of Total Sentencing Alternatives Program, declined to comment because of his company's ongoing negotiations to monitor pretrial detainees in criminal court using electronic bracelets.
But the president of ShadowTrack Technologies, the Covington subcontractor CBC originally proposed to do the voice monitoring, said his company typically charges offenders $4.50 a day to enroll in the program, which accounts for the cost of the service and a profit to his company. Comparatively, the city has agreed to pay CBC $6.75 a day for the same type of service.
ShadowTrack did not submit an independent bid.
Short on experience
In addition to the price issue, the city selected the firm with the least experience in the criminal justice field.
Woods runs a trash-hauling company. Moliere's experience is in janitorial services and public housing, according to his resume. Valdes has worked as a financier specializing in large municipal leases.
In comparison, PPS has been in the electronic monitoring business for 16 years and holds contracts with the cities of Atlanta, Salt Lake City and Montgomery, Ala., to name a few. The company also worked with judges in New Orleans municipal and traffic courts for two years doing electronic monitoring, probation monitoring and fine collection, with offenders picking up the cost of the service, according to its bid.
TSAP began working as a protégé of PPS when the company was under contract to New Orleans' municipal and traffic courts in 2000 and 2001, and it has run the program on its own since then. It has five years of experience working in Orleans Parish courts, according to its bid.
As for CBC, the New Orleans contract is its first major job. The company has no real experience. In its bid, it cited instead the experience of three subcontractors it proposed using, including ShadowTrack.
None of the subcontractors listed in the bid is now working on the contract, Rice said.
Subcontractor severs ties
ShadowTrack president Robert Magaletta said he cut off his relationship with CBC late last year after the company first asked him to lower his price, then, without notifying him, approached a competing vendor about working on the city contract.
ShadowTrack had been with CBC from the start, signing the company on as its exclusive dealer in the metro area in October 2003. But CBC produced no significant business for ShadowTrack, Magaletta said, never having more than 10 private-pay offenders on the service at any one time.
Magaletta also said he grew increasingly leery of dealing with Woods and Valdes, who have received subpoenas from a federal grand jury investigating city contracts meted out during Morial's administration.
"I had been hearing about the problems these people were having involved with city of New Orleans," he said. "I just preferred to stay away from this group."
Moliere said in a written statement that the separation was because of "philosophical business differences and different approaches to the marketplace."
He also said CBC has provided services to criminal courts in Orleans and Jefferson parishes, New Orleans Traffic Court, and the Louisiana Department of Parole and Probation. When asked whether the company held any contracts with those agencies, Moliere said it had relationships with individual judges and agencies, but no formal contracts. He did not specify a total number of clients enrolled.
CBC replaced ShadowTrack with Biometric Corp. of Dallas, whose president says the company has six years of experience in voice-based home incarceration systems.
CBC has hired its own staff to provide probation services, Rice said. For fine collection, the company has partnered with Gavin & Associates, a woman-owned company that will fulfill the 35 percent disadvantaged business enterprise goal for the contract, Rice said.
New York deal under fire
But what CBC lacks in practical experience, it more than makes up for when it comes to the politics of cutting deals with governments.
Although the New Orleans contract has drawn little attention, a similar CBC arrangement in Buffalo, N.Y., is being investigated by the FBI.
Erie County comptroller Nancy Naples has alleged that George A. Holt Jr., chairman of the county legislature, attempted to secretly award CBC a $3 million no-bid contract by slipping in a last-minute budget amendment in a late-night meeting Dec. 8. Naples told the Buffalo News last week that she was interviewed by federal agents for more than an hour about what she says was an "illegal" deal.
When questioned about the amendment, Holt told the Buffalo News that his staff inadvertently specified Community Based Corrections in the resolution, when his intent was only to reserve money for a later competitive bidding process. Holt has agreed to meet with FBI agents later this week.
He also told the newspaper that he flew to New Orleans in August to visit the firm, during which time CBC's principals held a fund-raiser for him at Pampy's Creole Kitchen, a political hot spot owned by Morial confidant Stan Barre. Campaign finance reports show that Holt received three checks at that function: $500 from Woods, $200 from Barre and $250 from bail bondsman Blair Boutte.
Barre, who has been subpoenaed in the ongoing federal probe of contracts awarded under Morial, said he has nothing to do with Community Based Corrections.
"I'm telling you, I wish those guys well, but I've got nothing to do with that bracelet stuff."
As for his contribution to Holt, Barre said: "I think I wrote him a check because Burnell (Moliere) begged like I don't know what, and he's a good customer," Barre said.
Boutte, president of the small eastern New Orleans political organization DOVE, also confirmed writing Holt a check. But he said he is not affiliated with CBC and did not attend the fund-raiser at Pampy's.
Holt got only one other contribution during the six-month reporting period that ended Jan. 15. He told the Buffalo News that accepting the $500 from Woods was a mistake and that he intends to return the money.
Active in politics
In New Orleans, the political connections necessary for deal-making were already well established.
Woods has a piece of the city's waste disposal contract through his company Metro Disposal Inc. Woods also has served on fund-raising committees for Jordan and donated $10,000 to Morial's third-term effort through Metro Disposal.
Moliere's Norco-based janitorial company, AME Services, has major contracts with the Orleans Parish School Board and the New Orleans Aviation Board. However, Schools Superintendent Tony Amato has threatened in recent months to cancel AME's contract, claiming the company has collected millions while leaving campuses filthy.
Moliere also contributed to Jordan, served on his fund-raising committees and headed his transition team. Moliere and AME Services contributed $10,000 to Morial's attempt at a third term.
Valdes, based in Metairie, arranged the financing for numerous high-dollar equipment leases at City Hall during Morial's tenure, including a controversial $81 million energy-efficiency contract with Johnson Controls Inc. that has been a focus of the ongoing federal investigation of Morial-era contracts. Valdes also arranged leases for hundreds of city buses, police cars and other vehicles. Top Nagin officials have complained bitterly about the above-market financing fees in some of those deals, which won't be completely paid off until 2022.
The financier contributed $5,000 to Jordan's 2002 campaign for district attorney through one of his companies, American Lease Financing LLC. He and a relative also made corporate and personal contributions of $15,000 to Morial's third-term bid. Valdes is the ex-husband of former Jefferson Parish Councilwoman Anne Marie Vandenweghe.
Metro Disposal and AME Services have likewise come under criticism from the Nagin administration.
In hiring Kimberly Williamson Butler as his first chief administrative officer, Nagin approvingly cited an episode in which Butler, as director of the Downtown Development District, refused to cave into political pressure and award a street-cleaning contract to AME.
Metro Disposal, meanwhile, was written up and briefly put on probation by former Sanitation Director Lynn Wiltz, who said in memos that the company had failed to live up to parts of its contract. Wiltz was fired a few months later, and Rice has said he is satisfied with Metro Disposal's performance.
Ditto for AME, he said.
"My experience with AME has been positive," he said. "They've done a pretty good job for us maintaining Gallier Hall and several other buildings."
March 16, 2005 Wednesday
3rd place fits bill for N.O. contract;
Winning firm rated last, lacks experience
BYLINE: By Martha Carr, Staff writer
SECTION: NATIONAL; Pg. 1
LENGTH: 2734 words
Mayor Ray Nagin has awarded a politically active company with no experience in the criminal justice field a contract to create a home monitoring program for municipal offenders, a deal the Nagin administration says could save the city hundreds of thousands in jail costs this year alone.
The mayor passed over two higher-scoring bidders to award a one-year contract with five one-year extensions to Community Based Corrections LLC, a local, minority-owned company created in October 2003 by Burnell Moliere, Jimmie Woods and Ray Valdes. All three have close political ties to District Attorney Eddie Jordan and former Mayor Marc Morial.
A three-person selection committee gave Community Based Corrections the lowest score of the three qualifying bidders, city documents show. The company's price also was the highest, but the mayor allowed CBC to rework its proposal to bring costs more in line with the other two bids, records show.
The contract is capped at $3 million, but the value depends on how many offenders are ordered to enroll.
Neither of the two competing bidders, which included another local, minority-owned firm, was allowed to resubmit their proposals for the Municipal Court job.
The city did renegotiate, however, with minority-owned Total Sentencing Alternatives Program, which received the second highest score, to provide electronic monitoring in Criminal District Court under a separate contract. That contract has yet to be finalized.
Because the contracts are for professional services, Nagin is not required by law to select the lowest bidder.
While the mayor previously has clashed with some of the politicians that CBC's officers are close to, campaign records show that companies owned by Moliere and Woods have begun contributing to Nagin since he took charge at City Hall.
Metro Disposal, a trash-hauling company owned by Woods, gave the mayor $2,500 in February 2003 and another $2,500 in May 2004. Moliere's janitorial company, AME Services, contributed $5,000 to Nagin in February 2003. Both companies received public contracts under Morial and have maintained them during the current administration.
Nagin campaign finance records filed with the state report no donations by either of the two firms that bid unsuccessfully against CBC or by their chief executive officers.
But Nagin's chief administrative officer, Charles Rice, said politics played no part in the mayor's selection of CBC. Rather, the mayor wanted to save the city money and help out local, minority-owned businesses. When asked why the city didn't award both contracts to Total Sentencing Alternatives Program, the minority bidder with the most experience and a higher rating by the selection committee, Rice said the mayor wanted to "spread the wealth."
"I think what the public needs to know is that we selected two vendors, both African-American owned companies, both local vendors, and if we can receive the same service at virtually the same cost from a local vendor, I think it's in the city's best interest to keep the money here at home and employ local people rather than send the money to Georgia," Rice said, referring to the highest-rated and cheapest bidder, PPS of Lawrenceville, Ga.
PPS is a subsidiary of the publicly traded company Universal Health Services.
Rice also said it is his understanding that Valdes is no longer a principal of CBC. Moliere said that's true, but that Valdes continues to provide marketing services for the company. Former Jefferson Parish Council President Robert Evans Jr. also worked for a time as the company's executive vice president, according to CBC's bid documents. Moliere said Evans is no longer with the company.
Cheaper way to monitor
Home monitoring systems have become popular in recent years as cities nationwide grapple with the skyrocketing costs of incarceration. Using voice recognition technology, electronic bracelets or GPS tracking, home monitoring allows nonviolent offenders to remain out of jail while fulfilling the terms of their court sentence.
Proponents say it's an especially viable concept in Municipal Court, where judges typically deal with minor offenses, such as public drunkenness, lewd conduct or criminal trespassing.
But until now, Municipal Court has used home monitoring on a limited basis, with the offender picking up the cost. Rice said enrollment wasn't high enough to significantly cut the city's jail costs, which have ballooned from $29 million in 2002 to $35.1 million last year for all offenders.
"We live in a very poor city, and most of the individuals in Municipal Court are indigent and do not have the financial wherewithal to pay costs," Rice said.
So the city has moved to government-financed home monitoring system, which Municipal Judge John Shea said gives judges an alternative to throwing offenders in jail when they don't pay fines. Last year, almost 34,000 offenders went to jail after failing to pay court-ordered fines, Municipal Court Clerk Ronald Lampard said.
Now, instead of paying $22.39 a day to keep a municipal prisoner in jail, the city will pay $7.73 to CBC for voice monitoring and probation management, a potential savings of $14.66 per day.
The city is required to pay the cost of jailing residents who break city laws, as well as those awaiting trial on state charges.
If CBC monitors 250 to 400 offenders a day -- an average that city officials say is a reasonable estimate -- it could save taxpayers $1.3 million to $2.1 million a year.
In the program's first two months, a total of 364 offenders were enrolled, at a cost savings of $159,030, Moliere said.
How it works
The monitoring works like this:
An offender is sentenced to home monitoring, and a case worker develops a call schedule to fit the nature of the offense. The offender then calls in and registers his or her voice, and is paged, or required to call in on a prescribed schedule, depending upon where the offender is supposed to be at a certain time. If an offender fails to call in or the system detects another voice, the authorities are notified.
Rice said there is no way the city can lose under the program. CBC doesn't get paid unless offenders enroll in the program, and the more offenders enroll, the greater the savings in jail costs, he said. Judges also have the option of requiring an offender to pay for the monitoring, city officials said.
"I assure you this is not set up for anybody to make a killing off of anything," Rice said. "It's all about reducing the amount of money we pay to the sheriff, and making things more efficient."
A spokeswoman for Orleans Parish Criminal Sheriff Marlin Gusman, whose budget could be adversely affected by a decrease in jail population, said the sheriff has seen little impact thus far.
Lowest bidder skipped
But records show the city could have saved more had it awarded the contract to the low bidder.
The city's request for proposals was broken down into three parts: home monitoring, probation management and fine collection.
If the city had hired PPS, the cheapest bidder and the company with the highest score from the selection committee, it would be paying $7.50 per day for voice monitoring and probation management, compared with $7.73 a day with CBC.
Although the difference is nominal, CBC also gets 10 percent of every delinquent fine it collects, down from the 38 percent it originally proposed. PPS offered to do fine collection free of charge.
Clay Cox, chief executive officer for PPS, said even CBC's lowered price accounts for some "good margins." He also said his company would have welcomed an opportunity to renegotiate its bid.
"Getting a percentage of a fine and a fee, that's crazy," Cox said. "There is plenty of money to be made by doing it right and treating people fairly. The fine money belongs to the taxpayers."
William Welch, chief executive officer of Total Sentencing Alternatives Program, declined to comment because of his company's ongoing negotiations to monitor pretrial detainees in criminal court using electronic bracelets.
But the president of ShadowTrack Technologies, the Covington subcontractor CBC originally proposed to do the voice monitoring, said his company typically charges offenders $4.50 a day to enroll in the program, which accounts for the cost of the service and a profit to his company. Comparatively, the city has agreed to pay CBC $6.75 a day for the same type of service.
ShadowTrack did not submit an independent bid.
Short on experience
In addition to the price issue, the city selected the firm with the least experience in the criminal justice field.
Woods runs a trash-hauling company. Moliere's experience is in janitorial services and public housing, according to his resume. Valdes has worked as a financier specializing in large municipal leases.
In comparison, PPS has been in the electronic monitoring business for 16 years and holds contracts with the cities of Atlanta, Salt Lake City and Montgomery, Ala., to name a few. The company also worked with judges in New Orleans municipal and traffic courts for two years doing electronic monitoring, probation monitoring and fine collection, with offenders picking up the cost of the service, according to its bid.
TSAP began working as a protégé of PPS when the company was under contract to New Orleans' municipal and traffic courts in 2000 and 2001, and it has run the program on its own since then. It has five years of experience working in Orleans Parish courts, according to its bid.
As for CBC, the New Orleans contract is its first major job. The company has no real experience. In its bid, it cited instead the experience of three subcontractors it proposed using, including ShadowTrack.
None of the subcontractors listed in the bid is now working on the contract, Rice said.
Subcontractor severs ties
ShadowTrack president Robert Magaletta said he cut off his relationship with CBC late last year after the company first asked him to lower his price, then, without notifying him, approached a competing vendor about working on the city contract.
ShadowTrack had been with CBC from the start, signing the company on as its exclusive dealer in the metro area in October 2003. But CBC produced no significant business for ShadowTrack, Magaletta said, never having more than 10 private-pay offenders on the service at any one time.
Magaletta also said he grew increasingly leery of dealing with Woods and Valdes, who have received subpoenas from a federal grand jury investigating city contracts meted out during Morial's administration.
"I had been hearing about the problems these people were having involved with city of New Orleans," he said. "I just preferred to stay away from this group."
Moliere said in a written statement that the separation was because of "philosophical business differences and different approaches to the marketplace."
He also said CBC has provided services to criminal courts in Orleans and Jefferson parishes, New Orleans Traffic Court, and the Louisiana Department of Parole and Probation. When asked whether the company held any contracts with those agencies, Moliere said it had relationships with individual judges and agencies, but no formal contracts. He did not specify a total number of clients enrolled.
CBC replaced ShadowTrack with Biometric Corp. of Dallas, whose president says the company has six years of experience in voice-based home incarceration systems.
CBC has hired its own staff to provide probation services, Rice said. For fine collection, the company has partnered with Gavin & Associates, a woman-owned company that will fulfill the 35 percent disadvantaged business enterprise goal for the contract, Rice said.
New York deal under fire
But what CBC lacks in practical experience, it more than makes up for when it comes to the politics of cutting deals with governments.
Although the New Orleans contract has drawn little attention, a similar CBC arrangement in Buffalo, N.Y., is being investigated by the FBI.
Erie County comptroller Nancy Naples has alleged that George A. Holt Jr., chairman of the county legislature, attempted to secretly award CBC a $3 million no-bid contract by slipping in a last-minute budget amendment in a late-night meeting Dec. 8. Naples told the Buffalo News last week that she was interviewed by federal agents for more than an hour about what she says was an "illegal" deal.
When questioned about the amendment, Holt told the Buffalo News that his staff inadvertently specified Community Based Corrections in the resolution, when his intent was only to reserve money for a later competitive bidding process. Holt has agreed to meet with FBI agents later this week.
He also told the newspaper that he flew to New Orleans in August to visit the firm, during which time CBC's principals held a fund-raiser for him at Pampy's Creole Kitchen, a political hot spot owned by Morial confidant Stan Barre. Campaign finance reports show that Holt received three checks at that function: $500 from Woods, $200 from Barre and $250 from bail bondsman Blair Boutte.
Barre, who has been subpoenaed in the ongoing federal probe of contracts awarded under Morial, said he has nothing to do with Community Based Corrections.
"I'm telling you, I wish those guys well, but I've got nothing to do with that bracelet stuff."
As for his contribution to Holt, Barre said: "I think I wrote him a check because Burnell (Moliere) begged like I don't know what, and he's a good customer," Barre said.
Boutte, president of the small eastern New Orleans political organization DOVE, also confirmed writing Holt a check. But he said he is not affiliated with CBC and did not attend the fund-raiser at Pampy's.
Holt got only one other contribution during the six-month reporting period that ended Jan. 15. He told the Buffalo News that accepting the $500 from Woods was a mistake and that he intends to return the money.
Active in politics
In New Orleans, the political connections necessary for deal-making were already well established.
Woods has a piece of the city's waste disposal contract through his company Metro Disposal Inc. Woods also has served on fund-raising committees for Jordan and donated $10,000 to Morial's third-term effort through Metro Disposal.
Moliere's Norco-based janitorial company, AME Services, has major contracts with the Orleans Parish School Board and the New Orleans Aviation Board. However, Schools Superintendent Tony Amato has threatened in recent months to cancel AME's contract, claiming the company has collected millions while leaving campuses filthy.
Moliere also contributed to Jordan, served on his fund-raising committees and headed his transition team. Moliere and AME Services contributed $10,000 to Morial's attempt at a third term.
Valdes, based in Metairie, arranged the financing for numerous high-dollar equipment leases at City Hall during Morial's tenure, including a controversial $81 million energy-efficiency contract with Johnson Controls Inc. that has been a focus of the ongoing federal investigation of Morial-era contracts. Valdes also arranged leases for hundreds of city buses, police cars and other vehicles. Top Nagin officials have complained bitterly about the above-market financing fees in some of those deals, which won't be completely paid off until 2022.
The financier contributed $5,000 to Jordan's 2002 campaign for district attorney through one of his companies, American Lease Financing LLC. He and a relative also made corporate and personal contributions of $15,000 to Morial's third-term bid. Valdes is the ex-husband of former Jefferson Parish Councilwoman Anne Marie Vandenweghe.
Metro Disposal and AME Services have likewise come under criticism from the Nagin administration.
In hiring Kimberly Williamson Butler as his first chief administrative officer, Nagin approvingly cited an episode in which Butler, as director of the Downtown Development District, refused to cave into political pressure and award a street-cleaning contract to AME.
Metro Disposal, meanwhile, was written up and briefly put on probation by former Sanitation Director Lynn Wiltz, who said in memos that the company had failed to live up to parts of its contract. Wiltz was fired a few months later, and Rice has said he is satisfied with Metro Disposal's performance.
Ditto for AME, he said.
"My experience with AME has been positive," he said. "They've done a pretty good job for us maintaining Gallier Hall and several other buildings."
Monitoring political games -- Times Picayune editorial
Times-Picayune (New Orleans)
March 17, 2005 Thursday
Monitoring political games
SECTION: METRO - EDITORIAL; Pg. 6
LENGTH: 535 words
You'd think Mayor Ray Nagin would want to foster companies like Total Sentencing Alternatives Program.
The company is locally based. It has several years of experience in running a home monitoring program for Orleans Parish courts. Its owners are African-American, and encouraging the growth of minority-owned businesses has been a goal of Mayor Nagin and his recent predecessors.
After New Orleans advertised a contract to create a home-monitoring program for municipal offenders, an evaluation committee ranked TSAP's proposal second among three. But you could argue that the company deserved the contract -- or at least a chance to improve its bid.
Apparently, though, TSAP lacked the connections necessary to land the Municipal Court contract. So did the highest-rated firm, Georgia-based PPS, which offered the best prices and has been doing similar work across the country for 16 years.
In a decision that looks like pure political hackery, city officials gave the Municipal Court job to the lowest-ranked bidder, Community Based Corrections LLC. Never mind that the company submitted the highest-price proposal; the city gave CBC, but not its competitors, the chance to come back with a lower price, and the firm obliged.
Home monitoring systems use electronic technology to keep track of nonviolent offenders, and it can be an effective, low-cost alternative to putting people in jail. Chief Administrative Officer Charles Rice is touting the contract as a money-saver.
And maybe it will be. But it's hard to imagine an innocent reason why Mayor Nagin would award a monitoring contract to a company with no significant experience in the area.
The firm was created only in October 2003 by Burnell Moliere, Jimmie Woods and Ray Valdes. Mr. Moliere has a janitorial business. Mr. Woods runs a trash-hauling company. Mr. Valdes, whom company officials say is no longer a principal there, has worked as a financier in large municipal leases. All three men have been involved in lucrative public contracts in New Orleans in the past, and all three have political ties to District Attorney Eddie Jordan and former Mayor Marc Morial.
In awarding them the Municipal Court contract, Mayor Nagin wasn't just helping someone else's supporters. Companies owned by Mr. Woods and Mr. Moliere have contributed thousands of dollars to Mayor Nagin's campaign fund since 2003. Campaign finance records show no such contributions from PPS or TSAP.
PPS' experience might give nonlocal firms pause about bidding on contracts in New Orleans. On some level, taxpayers needn't shed too many tears for TSAP. The Nagin administration is negotiating with the company for a separate monitoring contract at Criminal District Court.
Nevertheless, it's unfortunate that an experienced, locally-based, minority-owned firm lost the Municipal Court job to a politically connected company -- one that will give much of the work to a subcontractor in Dallas. Asked why TSAP didn't get both contracts, Mr. Rice said the mayor wanted to "spread the wealth" between two firms owned by African-Americans. But CBC's owners have benefited handsomely from public largess in the past. Far from helping New Orleans' have-nots, the CBC deal has rewarded the already-haves.
March 17, 2005 Thursday
Monitoring political games
SECTION: METRO - EDITORIAL; Pg. 6
LENGTH: 535 words
You'd think Mayor Ray Nagin would want to foster companies like Total Sentencing Alternatives Program.
The company is locally based. It has several years of experience in running a home monitoring program for Orleans Parish courts. Its owners are African-American, and encouraging the growth of minority-owned businesses has been a goal of Mayor Nagin and his recent predecessors.
After New Orleans advertised a contract to create a home-monitoring program for municipal offenders, an evaluation committee ranked TSAP's proposal second among three. But you could argue that the company deserved the contract -- or at least a chance to improve its bid.
Apparently, though, TSAP lacked the connections necessary to land the Municipal Court contract. So did the highest-rated firm, Georgia-based PPS, which offered the best prices and has been doing similar work across the country for 16 years.
In a decision that looks like pure political hackery, city officials gave the Municipal Court job to the lowest-ranked bidder, Community Based Corrections LLC. Never mind that the company submitted the highest-price proposal; the city gave CBC, but not its competitors, the chance to come back with a lower price, and the firm obliged.
Home monitoring systems use electronic technology to keep track of nonviolent offenders, and it can be an effective, low-cost alternative to putting people in jail. Chief Administrative Officer Charles Rice is touting the contract as a money-saver.
And maybe it will be. But it's hard to imagine an innocent reason why Mayor Nagin would award a monitoring contract to a company with no significant experience in the area.
The firm was created only in October 2003 by Burnell Moliere, Jimmie Woods and Ray Valdes. Mr. Moliere has a janitorial business. Mr. Woods runs a trash-hauling company. Mr. Valdes, whom company officials say is no longer a principal there, has worked as a financier in large municipal leases. All three men have been involved in lucrative public contracts in New Orleans in the past, and all three have political ties to District Attorney Eddie Jordan and former Mayor Marc Morial.
In awarding them the Municipal Court contract, Mayor Nagin wasn't just helping someone else's supporters. Companies owned by Mr. Woods and Mr. Moliere have contributed thousands of dollars to Mayor Nagin's campaign fund since 2003. Campaign finance records show no such contributions from PPS or TSAP.
PPS' experience might give nonlocal firms pause about bidding on contracts in New Orleans. On some level, taxpayers needn't shed too many tears for TSAP. The Nagin administration is negotiating with the company for a separate monitoring contract at Criminal District Court.
Nevertheless, it's unfortunate that an experienced, locally-based, minority-owned firm lost the Municipal Court job to a politically connected company -- one that will give much of the work to a subcontractor in Dallas. Asked why TSAP didn't get both contracts, Mr. Rice said the mayor wanted to "spread the wealth" between two firms owned by African-Americans. But CBC's owners have benefited handsomely from public largess in the past. Far from helping New Orleans' have-nots, the CBC deal has rewarded the already-haves.
Friday, September 7, 2007
MORIAL BACKING LOCALS IN N.O. HOCKEY CONTEST; BETTER LEAGUE MIGHT LOSE OUT
Times-Picayune (New Orleans, LA)
September 15, 1996 Sunday,
BYLINE: By JEFFREY MEITRODT and MARK SCHLEIFSTEIN Staff writers
SECTION: NATIONAL; Pg. A1
LENGTH: 1807 words
In the battle over which pro hockey league will win the right to play in New Orleans, Mayor Marc Morial has already picked sides, and it could cost the city a better brand of hockey.
On Sept. 3, Morial called a news conference to announce that a group of local investors would try to bring an East Coast Hockey League team called the New Orleans Brass to town next fall and that the team most likely would play its first season at the University of New Orleans Lakefront Arena.
The announcement came as a surprise to the Greater New Orleans Sports Foundation, which has spent the past year trying to lure the higher-ranking, and potentially more lucrative, International Hockey League.
Morial's announcement even took some of the prospective Brass investors, most of whom have close ties to him, off guard.
"I don't see what the big rush was," said one of the investors, who spoke on the condition of anonymity. "We don't even have a signed partnership agreement yet."
But timing may be everything.
In an effort to get a leg up on the International Hockey League, which is just one rung below the top-of-the-line National Hockey League, Brass owners want to put their team on the ice next fall, preferably by signing a short-term lease for the UNO arena.
Eventually, both leagues hope to win over state officials and land a contract to bring their team to the new arena being built next to the Louisiana Superdome. The $84 million arena is scheduled to be ready for the 1998-99 season.
If the Brass' strategy succeeds, the East Coast Hockey League not only would get a one-year jump on the rival but would tie up the market. Sports marketing experts say New Orleans can't support two teams.
But the Brass strategy faces several obstacles.
First, the ownership group is shaky. At least one investor said last week that he is considering bailing out.
Second, the UNO arena might not work for hockey. George Lewis, arena general manager, said every other prospective group has passed once it found out how expensive it would be to bring hockey to UNO.
"Anything is doable if you have the time and money, but is it cost-feasible? For one year? I can't see how," Lewis said.
Another option is to use the city-owned Municipal Auditorium, which has more than twice the floor space and easily could accommodate a rink, but Morial said he is not ready to endorse that idea.
Despite the challenges facing the group, local lawyer Roy Rodney, a Morial confidant who would own a piece of the Brass, said the chances of successfully bringing the East Coast Hockey League to New Orleans are "100 percent."
Ray Nagin, another Brass investor, said, "Our focus is to get up and running next year, and it is going to take one hell of a force to stop us from making that date."
The idea of bagging an East Coast Hockey League franchise was brought to Nagin nine months ago by Emmett Moten, a former New Orleanian who is now a top executive for Mike Ilitch, owner of the National Hockey League's Detroit Red Wings. The Brass would be affiliated with the Red Wings, which would provide managerial and other support.
Moten, like most aficionados, had been astonished to see how quickly the sport took off in Lafayette, where the rookie IceGators shattered East Coast Hockey League attendance records by drawing almost 10,000 fans per game in their first season. Leaguewide, East Coast Hockey League clubs averaged 4,900 fans per game last year.
Intrigued by the idea, Nagin, who is the top executive for Cox Communications in Louisiana, began recruiting other investors. One of the first to sign on was Rodney. Others included David White, who owns four McDonald's restaurants in New Orleans, and Stan Barre, owner of Pampy's nightclub in Mid-City.
A couple of months ago, Nagin's team merged with another investor group looking into the East Coast Hockey League. That group included local shopping center developer Darryl Berger, real estate investors Wayne and David Ducote, and Steve Rittvo, president of Urban Systems Inc.
The combined entity, which incorporated as New Orleans Brass Inc. in August, has strong ties to the Morial administration. Six of its eight members have been major campaign contributors to his mayoral campaigns, giving Morial a total of $55,400 in the past three years, campaign finance records show.
The biggest contributor has been Barre, a close friend and political fund-raiser for Morial, who gave him $20,000 between 1993 and 1995.
Barre's ties to Morial date back to the mayor's father, former Mayor Dutch Morial. A former vice squad detective, Barre worked as a driver and aide for Dutch Morial's chief administrative officer, Reynard Rochon. Barre also helped lead an unsuccessful 1983 petition drive to let Dutch Morial run for a third term.
Morial has said Pampy's Restaurant & Bar is one of his favorite hangouts.
Marc Morial asked Rodney to spearhead the city's negotiations with Harrah's Jazz Co. even before Morial took office. Rodney has been the city's chief negotiator during Harrah's bankruptcy proceedings. He has a contract with the Rivergate Development Corp., the public benefit corporation the city set up to be the casino's landlord, which pays him $125 an hour.
Rodney's other partners also have ties to the mayor:
In 1994, Morial hired one of Nagin's key assistants, Michele Moore, to be his director of communications. Moore had been Cox's chief lobbyist and community relations manager. Nagin contributed $3,000 to the mayor in 1995.
Rittvo is an urban planner whose firm, Urban Systems Inc., has been involved in major New Orleans projects dating back to Dutch Morial's term in office, including designing the traffic pattern for the 1984 world's fair and the parking lot for the failed River City casino boats on the Mississippi River.
Berger is a major New Orleans developer with longtime ties to Morial and his family. Berger has contributed $7,500 to Morial's mayoral campaigns, and his firm, Darryl Berger & Associates, contributed $1,000 to Rebuild New Orleans, a group formed to finance an advertising campaign in 1995 promoting Morial's $172 million capital improvements program.
Rodney said the group's connections to the Morial administration have nothing to do with the mayor's endorsement of the Brass proposal.
"Marc Morial hasn't done anything for us at all, except to say he'd welcome the team," Rodney said. "And we haven't asked him to do anything."
But Morial said he has talked with members of the Brass investor group about letting them lease the Municipal Auditorium for the 1997-98 season. In fact, one Brass investor said he thought his group already had a tentative deal.
"I didn't say no, but I also didn't say absolutely, yes, come on down," Morial said. "Like all of these things, you have to sit down and discuss what's possible. We'd lease the auditorium to anybody who has a check."
The UNO arena remains the preferred option, but the arena's floor space is 50 feet too short for professional hockey, UNO officials said. To expand the arena and build a rink probably would cost $1.5 million to $2 million, sports experts said.
Rodney said the group has budgeted about $1.2 million for the project. But Nagin said the investors are prepared to pay no more than a few hundred thousand dollars of that amount.
Doug Thornton, president of the Greater New Orleans Sports Foundation, said it would be difficult to persuade Gov. Foster to pick up the rest of the tab for the state-owned facility because the state already is planning to build a downtown arena.
"I would not want to lobby for that," he said.
If the Brass group ends up cutting a deal for the Municipal Auditorium, Rodney said he would recuse himself from the negotiations. "There will be no conflict of interest, either real or imagined, under any circumstances," said Rodney, who handled the negotiations over Harrah's vacating the Municipal Auditorium, where it operated a temporary casino in 1995, and is paying to restore it for public use.
Harrah's executives have said the restoration plans could accommodate a rink.
Besides trying to find a short-term home for their team, Brass investors hope eventually to win a lease for the new downtown arena. That could be another tough sell.
Foster has said the state will sign a lease with whichever league offers the best deal.
"I do like the idea of the (regional) competition that comes with the East Coast league, but that does not represent a commitment on my part to the East Coast league," Foster said. "Whatever deal we agree to has got to be the most competitive."
The East Coast Hockey League's Southern Division includes franchises in Lafayette, Baton Rouge, Biloxi, Miss., Pensacola, Fla., and Birmingham, Ala. The nearest International Hockey League competitor would be in Houston.
Typically, International Hockey League teams have paid about twice as much in rent as their East Coast Hockey League counterparts. In arenas managed by SMG, formerly Spectacor Management Group, East Coast tenants pay $2,500 to $4,000 per game in rent, while International tenants pay $10,000 to $12,000 per game, said Glenn Mon, general manager of the Superdome and vice president of stadiums and arenas for SMG.
Mon said New Orleans almost landed a team earlier this year. He said an International Hockey League franchise owner eager to move his club to the Crescent City visited in February to line up dates at the Superdome. But, after a few months of work, both sides concluded they weren't able to swing a deal.
The problem, Mon said, was clearing 45 straight days to build a rink in the Dome.
The league hasn't quit trying, however. Thornton said two prospects are still pursuing a deal in New Orleans. One involves an ownership group in Texas that hopes to bring an expansion franchise to town, and the second is a current owner who wants to relocate his team and considers New Orleans his best option.
Thornton said both prospects are committed to the market and hope to get a team here for the 1998-99 season.
Morial said he doesn't take the International Hockey League prospects seriously, partly because neither group has any local ownership. "I strongly favor local ownership," he said.
Thornton said the Texas investors are seeking local investors for their group.
Which league would do best in New Orleans? Saints owner Tom Benson, who also tried to bring an International Hockey League team to the city but gave up last year after failing to get dates at the Superdome, said he strongly favors the International Hockey League.
"I think the IHL is the premium deal for New Orleans," he said. "The ECHL is a brand-new sort of league that has expanded very rapidly and is located in smaller markets. The IHL has been around for 50 years and is in major markets. I think New Orleans is that type of city."
September 15, 1996 Sunday,
BYLINE: By JEFFREY MEITRODT and MARK SCHLEIFSTEIN Staff writers
SECTION: NATIONAL; Pg. A1
LENGTH: 1807 words
In the battle over which pro hockey league will win the right to play in New Orleans, Mayor Marc Morial has already picked sides, and it could cost the city a better brand of hockey.
On Sept. 3, Morial called a news conference to announce that a group of local investors would try to bring an East Coast Hockey League team called the New Orleans Brass to town next fall and that the team most likely would play its first season at the University of New Orleans Lakefront Arena.
The announcement came as a surprise to the Greater New Orleans Sports Foundation, which has spent the past year trying to lure the higher-ranking, and potentially more lucrative, International Hockey League.
Morial's announcement even took some of the prospective Brass investors, most of whom have close ties to him, off guard.
"I don't see what the big rush was," said one of the investors, who spoke on the condition of anonymity. "We don't even have a signed partnership agreement yet."
But timing may be everything.
In an effort to get a leg up on the International Hockey League, which is just one rung below the top-of-the-line National Hockey League, Brass owners want to put their team on the ice next fall, preferably by signing a short-term lease for the UNO arena.
Eventually, both leagues hope to win over state officials and land a contract to bring their team to the new arena being built next to the Louisiana Superdome. The $84 million arena is scheduled to be ready for the 1998-99 season.
If the Brass' strategy succeeds, the East Coast Hockey League not only would get a one-year jump on the rival but would tie up the market. Sports marketing experts say New Orleans can't support two teams.
But the Brass strategy faces several obstacles.
First, the ownership group is shaky. At least one investor said last week that he is considering bailing out.
Second, the UNO arena might not work for hockey. George Lewis, arena general manager, said every other prospective group has passed once it found out how expensive it would be to bring hockey to UNO.
"Anything is doable if you have the time and money, but is it cost-feasible? For one year? I can't see how," Lewis said.
Another option is to use the city-owned Municipal Auditorium, which has more than twice the floor space and easily could accommodate a rink, but Morial said he is not ready to endorse that idea.
Despite the challenges facing the group, local lawyer Roy Rodney, a Morial confidant who would own a piece of the Brass, said the chances of successfully bringing the East Coast Hockey League to New Orleans are "100 percent."
Ray Nagin, another Brass investor, said, "Our focus is to get up and running next year, and it is going to take one hell of a force to stop us from making that date."
The idea of bagging an East Coast Hockey League franchise was brought to Nagin nine months ago by Emmett Moten, a former New Orleanian who is now a top executive for Mike Ilitch, owner of the National Hockey League's Detroit Red Wings. The Brass would be affiliated with the Red Wings, which would provide managerial and other support.
Moten, like most aficionados, had been astonished to see how quickly the sport took off in Lafayette, where the rookie IceGators shattered East Coast Hockey League attendance records by drawing almost 10,000 fans per game in their first season. Leaguewide, East Coast Hockey League clubs averaged 4,900 fans per game last year.
Intrigued by the idea, Nagin, who is the top executive for Cox Communications in Louisiana, began recruiting other investors. One of the first to sign on was Rodney. Others included David White, who owns four McDonald's restaurants in New Orleans, and Stan Barre, owner of Pampy's nightclub in Mid-City.
A couple of months ago, Nagin's team merged with another investor group looking into the East Coast Hockey League. That group included local shopping center developer Darryl Berger, real estate investors Wayne and David Ducote, and Steve Rittvo, president of Urban Systems Inc.
The combined entity, which incorporated as New Orleans Brass Inc. in August, has strong ties to the Morial administration. Six of its eight members have been major campaign contributors to his mayoral campaigns, giving Morial a total of $55,400 in the past three years, campaign finance records show.
The biggest contributor has been Barre, a close friend and political fund-raiser for Morial, who gave him $20,000 between 1993 and 1995.
Barre's ties to Morial date back to the mayor's father, former Mayor Dutch Morial. A former vice squad detective, Barre worked as a driver and aide for Dutch Morial's chief administrative officer, Reynard Rochon. Barre also helped lead an unsuccessful 1983 petition drive to let Dutch Morial run for a third term.
Morial has said Pampy's Restaurant & Bar is one of his favorite hangouts.
Marc Morial asked Rodney to spearhead the city's negotiations with Harrah's Jazz Co. even before Morial took office. Rodney has been the city's chief negotiator during Harrah's bankruptcy proceedings. He has a contract with the Rivergate Development Corp., the public benefit corporation the city set up to be the casino's landlord, which pays him $125 an hour.
Rodney's other partners also have ties to the mayor:
In 1994, Morial hired one of Nagin's key assistants, Michele Moore, to be his director of communications. Moore had been Cox's chief lobbyist and community relations manager. Nagin contributed $3,000 to the mayor in 1995.
Rittvo is an urban planner whose firm, Urban Systems Inc., has been involved in major New Orleans projects dating back to Dutch Morial's term in office, including designing the traffic pattern for the 1984 world's fair and the parking lot for the failed River City casino boats on the Mississippi River.
Berger is a major New Orleans developer with longtime ties to Morial and his family. Berger has contributed $7,500 to Morial's mayoral campaigns, and his firm, Darryl Berger & Associates, contributed $1,000 to Rebuild New Orleans, a group formed to finance an advertising campaign in 1995 promoting Morial's $172 million capital improvements program.
Rodney said the group's connections to the Morial administration have nothing to do with the mayor's endorsement of the Brass proposal.
"Marc Morial hasn't done anything for us at all, except to say he'd welcome the team," Rodney said. "And we haven't asked him to do anything."
But Morial said he has talked with members of the Brass investor group about letting them lease the Municipal Auditorium for the 1997-98 season. In fact, one Brass investor said he thought his group already had a tentative deal.
"I didn't say no, but I also didn't say absolutely, yes, come on down," Morial said. "Like all of these things, you have to sit down and discuss what's possible. We'd lease the auditorium to anybody who has a check."
The UNO arena remains the preferred option, but the arena's floor space is 50 feet too short for professional hockey, UNO officials said. To expand the arena and build a rink probably would cost $1.5 million to $2 million, sports experts said.
Rodney said the group has budgeted about $1.2 million for the project. But Nagin said the investors are prepared to pay no more than a few hundred thousand dollars of that amount.
Doug Thornton, president of the Greater New Orleans Sports Foundation, said it would be difficult to persuade Gov. Foster to pick up the rest of the tab for the state-owned facility because the state already is planning to build a downtown arena.
"I would not want to lobby for that," he said.
If the Brass group ends up cutting a deal for the Municipal Auditorium, Rodney said he would recuse himself from the negotiations. "There will be no conflict of interest, either real or imagined, under any circumstances," said Rodney, who handled the negotiations over Harrah's vacating the Municipal Auditorium, where it operated a temporary casino in 1995, and is paying to restore it for public use.
Harrah's executives have said the restoration plans could accommodate a rink.
Besides trying to find a short-term home for their team, Brass investors hope eventually to win a lease for the new downtown arena. That could be another tough sell.
Foster has said the state will sign a lease with whichever league offers the best deal.
"I do like the idea of the (regional) competition that comes with the East Coast league, but that does not represent a commitment on my part to the East Coast league," Foster said. "Whatever deal we agree to has got to be the most competitive."
The East Coast Hockey League's Southern Division includes franchises in Lafayette, Baton Rouge, Biloxi, Miss., Pensacola, Fla., and Birmingham, Ala. The nearest International Hockey League competitor would be in Houston.
Typically, International Hockey League teams have paid about twice as much in rent as their East Coast Hockey League counterparts. In arenas managed by SMG, formerly Spectacor Management Group, East Coast tenants pay $2,500 to $4,000 per game in rent, while International tenants pay $10,000 to $12,000 per game, said Glenn Mon, general manager of the Superdome and vice president of stadiums and arenas for SMG.
Mon said New Orleans almost landed a team earlier this year. He said an International Hockey League franchise owner eager to move his club to the Crescent City visited in February to line up dates at the Superdome. But, after a few months of work, both sides concluded they weren't able to swing a deal.
The problem, Mon said, was clearing 45 straight days to build a rink in the Dome.
The league hasn't quit trying, however. Thornton said two prospects are still pursuing a deal in New Orleans. One involves an ownership group in Texas that hopes to bring an expansion franchise to town, and the second is a current owner who wants to relocate his team and considers New Orleans his best option.
Thornton said both prospects are committed to the market and hope to get a team here for the 1998-99 season.
Morial said he doesn't take the International Hockey League prospects seriously, partly because neither group has any local ownership. "I strongly favor local ownership," he said.
Thornton said the Texas investors are seeking local investors for their group.
Which league would do best in New Orleans? Saints owner Tom Benson, who also tried to bring an International Hockey League team to the city but gave up last year after failing to get dates at the Superdome, said he strongly favors the International Hockey League.
"I think the IHL is the premium deal for New Orleans," he said. "The ECHL is a brand-new sort of league that has expanded very rapidly and is located in smaller markets. The IHL has been around for 50 years and is in major markets. I think New Orleans is that type of city."
Sunday, April 8, 2007
New meters to bring new ways to buy time -- Times Picayune Dec. 31, 2004
December 31, 2004 Friday
SECTION: NATIONAL; Pg. 1
LENGTH: 1709 words
HEADLINE: New meters to bring new ways to buy time;
But they also require hike from car and back
BYLINE: By Frank Donze , Staff writer
BODY:
With a control panel that looks like the dashboard of a state-of-the-art sportscar, they have begun cropping up on downtown curbsides. ATM machines? Gas pumps? Guess again.
They're the latest generation of parking meters, 6-foot-tall replacements for the old-time bubbles on a stick that have eaten dimes and quarters for decades.
City officials insist you won't need a degree in computer science to make them work, though it will help to be thoroughly comfortable with your cell phone. And a certain amount of hiking will be required, from your car to the meter and back again.
But after much anticipation, this much can be said for sure: They're here -- and almost operational.
City Hall's oft-heard promise that new, high-tech parking meters soon will be hitting the streets of New Orleans had taken on the hollow ring of "The check is in the mail" and "Your table will be ready in a minute."
For more than 10 years running, three successive mayoral administrations heralded the imminent arrival of cutting-edge meters that would accept "smart" debit cards, eliminating the dreaded scramble for pocket change that's never quite enough.
The debit cards still are in the offing. But the first of the futuristic meters, which cost about $7,500 apiece, began popping up around town about a month ago, and they eventually will allow motorists to use credit cards as well as coins -- and even an option, the first of its kind in the United States, to pay for parking by cell phone.
Nagin administration officials said this week that they expect the new system to be running by mid-January and pledged that the "smart" cards and cell phone option will be operational later in 2005.
The project is being handled by a 50-50 partnership between Standard Parking, a national firm that has operated parking lots in New Orleans for 25 years, and Parking Solutions LLC, a local minority-owned company with political ties to City Hall.
The Nagin administration has signed a three-year, $2.1 million contract with the joint venture, including options for three one-year renewals. The company is responsible for operation and maintenance of the meters, which the city projects will generate $4.5 million in 2005, a 15 percent increase over this year's take.
Ultimately, plans call for 400 of the new meters to be scattered about the Central Business District, the French Quarter, the Warehouse District, along Magazine Street and in the Uptown and downtown medical districts. About half of them have been installed so far, with the balance of the job scheduled to be completed by Feb. 1.
The joint venture owns the meters but the city will acquire them under a lease-purchase arrangement. Under the contract, leasing fees will come out of the city's monthly payment of $173,000.
The city will own the meters at the end of the six-year agreement. Their estimated life span is 10 to 12 years.
The space-age look of the new meters, which dwarf the old model, has drawn criticism from some residents of the French Quarter, who say the green towers are out of scale for the historic neighborhood.
"We've heard from some people who say the meters are too modern for areas like the Quarter and Magazine Street," said Mark Boucree, Parking Solutions' chief operating officer. "But we think once everyone sees the convenience they offer, they'll get used to them."
Administration officials hope to put the meters in operation in stages, with the first areas set to go on line in about two weeks, after signage is in place and an informational campaign is under way.
In addition to accepting credit cards and debit cards, the new meters -- like the ones now in use -- will take all coins except pennies. Paper currency, which company officials say has a tendency to jam the mechanism, cannot be used.
The city will retain about 1,000 of the 3,600 or so of the meters currently in use. Those meters, though they accept coins only, were designed to accept a "smart card," and officials with the company that installed them said they have long been ready to introduce one. But Nagin opted to go with the new meters instead.
Officials in the administration say a key selling point of the new devices was their ability to offer a "pay and display" system, already used in several U.S. and European cities, that lets motorists buy parking time that isn't tied to one particular space.
Under the system, two meters located in the middle of the block replace the six to 12 devices that now line many streets. Just like existing meters, the new ones will allow a motorist to buy up to two hours of parking time.
But instead of displaying the time remaining, the new machine spits out a receipt. A motorist will have to return to the vehicle and display the ticket -- which will prominently feature the expiration time -- on the dashboard.
Administration officials say the new system offers ancillary benefits: For one, motorists can move their car to another metered space while there is still time remaining on the ticket. Also, the printed receipt provides a handy record that can be used for accounting and reimbursement purposes.
More revenue expected
The administration's increased revenue projection is based on several factors.
Most important, city officials say the new system will bring the city revenue from 4,500 parking spaces citywide, an increase of about 900. Part of the increase will come from charging people to park in areas where parking is now free.
In addition, they say the new meters will allow a few extra parking spaces to be squeezed out of a street because there are no spaces per se. For example, parking areas that now contain seven striped spaces might now fit eight vehicles. But then, there's nothing to stop sloppy parkers from hogging space, thus reducing the number of customers.
Finally, under the new system, the administration says drivers now will take their unused parking time with them. As a result, no one will be able to park for free.
Old meters just paid for
The new meters are arriving just a few years after WorldWide Parking Inc., the Maryland-based company that formerly held the city parking meter contract, finished installing the current generation of meters. In fact, the Nagin administration made the final $400,000 payment on WorldWide's equipment just a few months ago.
WorldWide bid on the new contract, but the Nagin administration selected the local partnership in March, citing technological factors and the 50 percent minority participation.
WorldWide, which had no local partner, went to court to block the award of the contract, arguing that as the lowest responsible bidder, it should have been selected. The Nagin administration countered that the lowest-bid criterion was inapplicable because the contract is for a professional service.
The lawsuit was dismissed by a federal judge.
At the time of the contract award, Marc Meisel, president of WorldWide, questioned the administration's projections that the new meters would increase revenue. Furthermore, he said the meters now on the street likely would last another 25 years.
The new meters are solar-powered, but also have a battery back-up. The system is linked to a computer network that will allow company and city officials to monitor each meter and determine in real time whether it's working, how much revenue it has taken in and even whether it is low on paper for receipts.
Under its contract with the city, Parking Solutions must keep 98 percent of the meters in service at all times or face cash fines. Company officials said the computer monitoring system will allow them to fulfill that requirement easily.
Cell phone innovation
The ability to activate the meters by cell phone is their most radical innovation and a first of its kind in the United States, according to Boucree.
The system, invented by Mint Inc., a company based in Toronto, Canada, allows customers to purchase parking time without leaving their vehicles.
Motorists interested in using the service will first have to phone a number listed on the meter to set up an account that Boucree calls an "electronic wallet." Once a motorist has registered a name and license plate number with Mint Inc., the company will send the customer a windshield sticker that city parking control officers -- using hand-held computers -- can scan to determine whether the parking fee has been paid.
The company also will automatically phone customers a half-hour before their time at the meter expires. If they desire, customers also can call again to obtain more parking time -- up to a legal maximum of two hours.
Boucree said plans call for this payment system to be operating by May.
Chief Administrative Officer Charles Rice said the Nagin administration is looking into a change in the law that would permit a motorist -- for a nominal extra fee -- to park in a metered space for longer than two hours.
Plans call for the "smart" cards to be on sale by the summer.
Parking Solutions officials say they have started preliminary discussions with the Regional Transit Authority to develop a single debit card that could be used on parking meters, buses and streetcars.
Parking Solutions is owned by three local African-American businessmen. In recent months, Nagin has touted the 50-50 partnership as a prime example of his administration's commitment to steer government work to black-owned companies.
Two of the local firm's principals, Keith Pittman and Tyrone Rodgers, have ties to the administration.
Pittman and Rodgers are former business partners of developer Sean Cummings, a Nagin appointee who heads the New Orleans Building Corp., which is responsible for selling or developing certain city-owned properties.
Rodgers is the stepson of public-relations executive Bill Rouselle, who has advised Nagin and who has close ties to the BOLD political organization. Pittman worked as an aide to City Councilman Oliver Thomas, a leader of BOLD.
Boucree recently resigned his management position with Standard Parking, where he oversaw 40 facilities for the company.
This is the second contract the Nagin administration has awarded to Standard Parking and Parking Solutions. In May, the partnership was hired to operate three parking lots for French Market Corp.
SECTION: NATIONAL; Pg. 1
LENGTH: 1709 words
HEADLINE: New meters to bring new ways to buy time;
But they also require hike from car and back
BYLINE: By Frank Donze , Staff writer
BODY:
With a control panel that looks like the dashboard of a state-of-the-art sportscar, they have begun cropping up on downtown curbsides. ATM machines? Gas pumps? Guess again.
They're the latest generation of parking meters, 6-foot-tall replacements for the old-time bubbles on a stick that have eaten dimes and quarters for decades.
City officials insist you won't need a degree in computer science to make them work, though it will help to be thoroughly comfortable with your cell phone. And a certain amount of hiking will be required, from your car to the meter and back again.
But after much anticipation, this much can be said for sure: They're here -- and almost operational.
City Hall's oft-heard promise that new, high-tech parking meters soon will be hitting the streets of New Orleans had taken on the hollow ring of "The check is in the mail" and "Your table will be ready in a minute."
For more than 10 years running, three successive mayoral administrations heralded the imminent arrival of cutting-edge meters that would accept "smart" debit cards, eliminating the dreaded scramble for pocket change that's never quite enough.
The debit cards still are in the offing. But the first of the futuristic meters, which cost about $7,500 apiece, began popping up around town about a month ago, and they eventually will allow motorists to use credit cards as well as coins -- and even an option, the first of its kind in the United States, to pay for parking by cell phone.
Nagin administration officials said this week that they expect the new system to be running by mid-January and pledged that the "smart" cards and cell phone option will be operational later in 2005.
The project is being handled by a 50-50 partnership between Standard Parking, a national firm that has operated parking lots in New Orleans for 25 years, and Parking Solutions LLC, a local minority-owned company with political ties to City Hall.
The Nagin administration has signed a three-year, $2.1 million contract with the joint venture, including options for three one-year renewals. The company is responsible for operation and maintenance of the meters, which the city projects will generate $4.5 million in 2005, a 15 percent increase over this year's take.
Ultimately, plans call for 400 of the new meters to be scattered about the Central Business District, the French Quarter, the Warehouse District, along Magazine Street and in the Uptown and downtown medical districts. About half of them have been installed so far, with the balance of the job scheduled to be completed by Feb. 1.
The joint venture owns the meters but the city will acquire them under a lease-purchase arrangement. Under the contract, leasing fees will come out of the city's monthly payment of $173,000.
The city will own the meters at the end of the six-year agreement. Their estimated life span is 10 to 12 years.
The space-age look of the new meters, which dwarf the old model, has drawn criticism from some residents of the French Quarter, who say the green towers are out of scale for the historic neighborhood.
"We've heard from some people who say the meters are too modern for areas like the Quarter and Magazine Street," said Mark Boucree, Parking Solutions' chief operating officer. "But we think once everyone sees the convenience they offer, they'll get used to them."
Administration officials hope to put the meters in operation in stages, with the first areas set to go on line in about two weeks, after signage is in place and an informational campaign is under way.
In addition to accepting credit cards and debit cards, the new meters -- like the ones now in use -- will take all coins except pennies. Paper currency, which company officials say has a tendency to jam the mechanism, cannot be used.
The city will retain about 1,000 of the 3,600 or so of the meters currently in use. Those meters, though they accept coins only, were designed to accept a "smart card," and officials with the company that installed them said they have long been ready to introduce one. But Nagin opted to go with the new meters instead.
Officials in the administration say a key selling point of the new devices was their ability to offer a "pay and display" system, already used in several U.S. and European cities, that lets motorists buy parking time that isn't tied to one particular space.
Under the system, two meters located in the middle of the block replace the six to 12 devices that now line many streets. Just like existing meters, the new ones will allow a motorist to buy up to two hours of parking time.
But instead of displaying the time remaining, the new machine spits out a receipt. A motorist will have to return to the vehicle and display the ticket -- which will prominently feature the expiration time -- on the dashboard.
Administration officials say the new system offers ancillary benefits: For one, motorists can move their car to another metered space while there is still time remaining on the ticket. Also, the printed receipt provides a handy record that can be used for accounting and reimbursement purposes.
More revenue expected
The administration's increased revenue projection is based on several factors.
Most important, city officials say the new system will bring the city revenue from 4,500 parking spaces citywide, an increase of about 900. Part of the increase will come from charging people to park in areas where parking is now free.
In addition, they say the new meters will allow a few extra parking spaces to be squeezed out of a street because there are no spaces per se. For example, parking areas that now contain seven striped spaces might now fit eight vehicles. But then, there's nothing to stop sloppy parkers from hogging space, thus reducing the number of customers.
Finally, under the new system, the administration says drivers now will take their unused parking time with them. As a result, no one will be able to park for free.
Old meters just paid for
The new meters are arriving just a few years after WorldWide Parking Inc., the Maryland-based company that formerly held the city parking meter contract, finished installing the current generation of meters. In fact, the Nagin administration made the final $400,000 payment on WorldWide's equipment just a few months ago.
WorldWide bid on the new contract, but the Nagin administration selected the local partnership in March, citing technological factors and the 50 percent minority participation.
WorldWide, which had no local partner, went to court to block the award of the contract, arguing that as the lowest responsible bidder, it should have been selected. The Nagin administration countered that the lowest-bid criterion was inapplicable because the contract is for a professional service.
The lawsuit was dismissed by a federal judge.
At the time of the contract award, Marc Meisel, president of WorldWide, questioned the administration's projections that the new meters would increase revenue. Furthermore, he said the meters now on the street likely would last another 25 years.
The new meters are solar-powered, but also have a battery back-up. The system is linked to a computer network that will allow company and city officials to monitor each meter and determine in real time whether it's working, how much revenue it has taken in and even whether it is low on paper for receipts.
Under its contract with the city, Parking Solutions must keep 98 percent of the meters in service at all times or face cash fines. Company officials said the computer monitoring system will allow them to fulfill that requirement easily.
Cell phone innovation
The ability to activate the meters by cell phone is their most radical innovation and a first of its kind in the United States, according to Boucree.
The system, invented by Mint Inc., a company based in Toronto, Canada, allows customers to purchase parking time without leaving their vehicles.
Motorists interested in using the service will first have to phone a number listed on the meter to set up an account that Boucree calls an "electronic wallet." Once a motorist has registered a name and license plate number with Mint Inc., the company will send the customer a windshield sticker that city parking control officers -- using hand-held computers -- can scan to determine whether the parking fee has been paid.
The company also will automatically phone customers a half-hour before their time at the meter expires. If they desire, customers also can call again to obtain more parking time -- up to a legal maximum of two hours.
Boucree said plans call for this payment system to be operating by May.
Chief Administrative Officer Charles Rice said the Nagin administration is looking into a change in the law that would permit a motorist -- for a nominal extra fee -- to park in a metered space for longer than two hours.
Plans call for the "smart" cards to be on sale by the summer.
Parking Solutions officials say they have started preliminary discussions with the Regional Transit Authority to develop a single debit card that could be used on parking meters, buses and streetcars.
Parking Solutions is owned by three local African-American businessmen. In recent months, Nagin has touted the 50-50 partnership as a prime example of his administration's commitment to steer government work to black-owned companies.
Two of the local firm's principals, Keith Pittman and Tyrone Rodgers, have ties to the administration.
Pittman and Rodgers are former business partners of developer Sean Cummings, a Nagin appointee who heads the New Orleans Building Corp., which is responsible for selling or developing certain city-owned properties.
Rodgers is the stepson of public-relations executive Bill Rouselle, who has advised Nagin and who has close ties to the BOLD political organization. Pittman worked as an aide to City Councilman Oliver Thomas, a leader of BOLD.
Boucree recently resigned his management position with Standard Parking, where he oversaw 40 facilities for the company.
This is the second contract the Nagin administration has awarded to Standard Parking and Parking Solutions. In May, the partnership was hired to operate three parking lots for French Market Corp.
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