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."
Showing posts with label Roy Rodney. Show all posts
Showing posts with label Roy Rodney. Show all posts
Friday, September 7, 2007
Friday, March 23, 2007
Nagin & Rodney -- Louisiana Weekly January 2002
Inside Political Track
By Christopher Tidmore
January 21, 2002 talkback
Who Are You?...
The biggest question in the media in recent days has dealt with the source of a group of ads attacking State Senator Paulette Irons. The TV and radio spots have targeted the New Orleans Mayoral candidate as unethical in the light of the Attorney General's opinion that concluded she had violated the state's dual officeholder law.
Irons, following a televised debate last week publicly charged that the campaign of Police Chief Richard Pennington was responsible for the ads. It was an allegation with which Pennington violently disagreed.
In a statement released on January 16th, the superintendent said, "Paulette Irons has made serious accusations against me and my campaign regarding a television commercial. These accusations are absolutely and unequivocally false, and I challenge her to furnish proof of my involvement."
An investigation by The Louisiana Weekly has discovered that several of the ads were purchased by Ray Walker. In an exclusive, this newspaper has learned that Ray Walker is the father of Pennington supporter and contributor Reginald Walker.
Campaign finance documents reveal a series of contributions from Reginald Walker to the Pennington for Mayor campaign. When asked what the relationship between the younger Walker and the Chief was, Pennington Press Secretary Pierre DeGruy said, "I do not know who Reginald Walker is. He is not a campaign advisor, I can tell you that."
Why Are You Here?
Justice Revius Ortique has conducted a unique fight at Armstrong International Airport. The Aviation Board member has maintained an office at the front of the Southwest/Continental Terminal for some time, but with the new security checkpoints, he was asked to give it up.
The reason was simple. The long lines of travelers that have begun to plague New Orleans's International Airport could be cut by 50% if Ortique gave his space to the burgeoning security force. However, such arguments did not motivate him to leave. The Aviation Board formally requested that he move. He refused. Mayor Morial asked him to relocate. Ortique said, no, sir. Congressman Vitter's office begged him to vacate after it received numerous complaints. Ortique said, forget it.
Sources close to Ortique revealed that he feared the loss in prestige that would come if he left his large and prominent office at the front of the airport. His leverage within the governing Aviation Board would decrease, the source said that Ortique reasoned. The decision would affect him too much personally.
Finally, where political influence did not work, corporate power did. A delegation from Continental and Southwest Airlines apparently met with the Aviation member in a closed-door conference. No comprehensive report has come from any of the participants, yet afterwards, a reportedly frustrated and shaken Ortique said that he would leave his space.
Ortique could not be reached for comment about the meeting, and the Public Information Office of Armstrong Airport only commented, "Mr. Ortique has left the office."
Also At Armstrong...
Bob Tucker, friend of New Orleans Mayor Marc Morial, has endeavored to win the $20,000,000 management contract at the Airport for some time. Of the original six applicants for the private operations contract, only Tucker's AMC and Parson's Aviation remain.
A private poll of the Aviation Board allegedly reveals that the majority of the members want Parson's, an international firm that operates airports all over the world, to get the contract. The members were reportedly impressed by Parson's experience and expertise. However, sources reveal to The Louisiana Weekly that "friends of Tucker and Morial" have blocked Parson's bid
The reason, they explain, is that the airport contract lasts for five years and would protect many of the patronage and profession service contracts currently held by Morial allies. They cite as proof the disqualification of the first technical committee.
The Aviation Board empowered that technical committee to determine who was the best qualified for the contract. The advisory panel ruled that Parson's should have the bid. A move came from several members of the Aviation Board to disqualify the technical committee and empower another.
According to one individual close to the bid process, "It should have been finished six months ago. We are trying to get some ruling from the FAA [to push the Parson's bid]. They have been less than straightforward with the board on the way they handled it...They have manipulated the process."
Who Are You For?...
One of the most confusing questions in New Orleans politics in this past week has dealt with who City Hall insider and Morial confidant Roy Rodney is supporting for mayor. Rumors some weeks ago implied that Rodney would back Councilman Troy Carter as his friend and ally Ira Middleberg had.
In fact, a rumor campaign to that effect circulated around the city. Even the entry of Rodney's business partner Ray Nagin into the race did little to quell the idea that the Morial insider planned to team up with Carter. Political insiders immediately took to the story because of its allure. It seemed to hearken to a move by Morial's political organization L.I.F.E. (Louisiana Independent Federation of Electors) to back Carter. With the news that fellow Morial alum Middleberg had jumped on board made the story even more believable.
There was just one problem. The rumor was not true. For the most part, the L.I.F.E. members have sat out of this contest. Some back Pennington. Most are waiting for the runoff before they publicly make their stand. However, their leaders are desperate not to show a division in the ranks.
When this newspaper contacted Mr. Rodney and asked the simple question: who he was supporting and was the candidate Troy Carter, as the rumors alleged, it was his secretary who returned the telephone call in Rodney's place and said definitively that the attorney did not support Carter. So, this reporter responded, "Who is he supporting?"
The secretary said, "I can't tell you that."
"You can't tell me that? Why not?"
"I just can't?" she concluded, and implied that comment would be the last that Rodney would release to the press.
As strong as a political position as L.I.F.E. continues to hold in the Crescent City, there is an attitude held by many of the candidates this season that a strong connection to the Mayor is the political kiss of death, considering the reform attitude that prevails in the city today. One can observe this displayed in the lengths that the Pennington camp goes to separate itself from Mayor Morial and show the Chief's independence.
One source says that Rodney does indeed support his friend and business partner Ray Nagin, but one can never tell in the somewhat Byzantine atmosphere that has descended upon this year's fractured election.
Just for the record, any implication or statement that this column might have made to connect Roy Rodney to Troy Carter is inaccurate, and we retract it.
Where Are You?...
In early 2001, when the legislature reduced Harrah's New Orleans casino taxes by $50 MILLION, they required that employment not drop below 90% of the base employment.
Columnist C.B. Forgotston has learned that as of December 22, 2001, there are a total of 2,437 employees or 26 fewer employees than on November 20, 2001. That is 230 fewer employees or 91.34% of the base or 563 fewer than the alleged 3,000 employees the legislators were told they had to save.
The Weekly has also learned from a source that the Foster Administration is formally considering a provision to include removing the statutory "floor" on the number of employees in the upcoming special session for economic development.
Who's For You?...
City Council District A candidate Jay Batt has received the endorsement of the Regular Democratic Organization (RDO), continuing an ongoing string of endorsements for Batt at the expense of incumbent Councilman Scott Shea.
The successful businessman and civic leader has also received the endorsement of the prominent Gay Rights group LAGPAC and earned the nod of their rival, the Forum for Equality. Batt has also won the politically influential endorsements of Jim Singleton's B.O.L.D. organization and Ed Murray's T.I.T.S. All of these politically influential groups had endorsed Shea in their first match-up 18-months ago.
On the money front, the last fund-raising report showed just slightly more than $30,000 in the Shea warchest, more than six figures less than the amount Batt had raised. If money and political support have slowly left Shea, will the power of incumbency be enough to avoid a runoff with Batt? Only time will tell.
Where Are You Going?...
Members of the New Orleans Right to Life Committee are embarking on their annual lobbying sojourn to Washington D.C. They plan to walk the halls of the Capitol, meet with Louisiana's Congressional delegation, and march on behalf of the pro-life issue. They were scheduled to leave on Sunday, January 20th.
What Should We Do?...
When discussing whether New Orleans should privatize its Sewerage and Water System, the voters might find it beneficial to learn of the experience that one of the bidders on the Orleans contract had when it took charge of the water systems in Atlanta. This editorial from the Atlanta Journal-Constitution outlines the problems with one of the three companies pursuing New Orleans' local management agreement.
"When United Water won a 20-year contract to run Atlanta's troubled water system - the largest private contract of its kind in North America -- the company forecast annual savings for the city of at least $2 million. Just three years later, United now wants the city to pay more.
"During the last days of the administration of Mayor Bill Campbell, the giant company pressed to increase its long-term contract by $80 million, far in excess of the legal limit allowed by the city's purchasing code. But thanks to the courage of two city officials, the new administration of Mayor Shirley Franklin will have a chance to re-examine United Water's contract. It should make that examination a priority.
"The United Water juggernaut was stopped by Atlanta Water Commissioner Remedios Del Rosario. Alone among those whose names were required to sign off on additional money for United Water - including Campbell and financial and legal officers - she refused to sign, calling the contract change unethical. Fortunately, Del Rosario received strong backing from Councilwoman Clair Muller, chairwoman of the Council Utilities committee. Muller called United's request "absurd" and threatened to sue if the company insisted on charging extra for work she believed part of the contract bargain.
"It was a bad idea to give United Water a 20-year contract in the first place. Other cities have retained more leverage and extracted greater accountability in private contracts by requiring more frequent rebidding. Milwaukee and Indianapolis, for example, have sewer system contracts with United for less than 10 years.
"But Campbell didn't take the time he should have in handling his first major contract to privatize a city service. In the middle of a tense re-election campaign, he was in a big hurry to get a deal that he could sell to voters.
"After he was re-elected, he didn't follow through to make sure United Water did its job well. Burdened with a decrepit infrastructure and a poorly trained and inefficient work force, the Atlanta water system was surely the perfect privatization candidate. But without careful oversight, there was no guarantee that a private company would do any better.
"Nor was there any guarantee that United Water would make a profit off the contract. Its executives gambled that it could run Atlanta's water system efficiently, save the city some revenue and still make money for itself, and sometimes in private enterprise the risk doesn't pay.
"Now, the company is complaining about "unanticipated" problems - waterline breaks, the cutting of lines by cable companies, the monitoring of water use during the drought, and delays in capital projects. (By the way, if telecom companies cut waterlines, why not force them to pay for the problem instead of city ratepayers?) Basically, it wants to renegotiate its contract for more money.
"Nothing doing. The new city administration has some leverage with United Water because Muller insisted on a provision allowing the city to terminate the contract "at will." The city might incur some costs in doing so, but if United can't live up to its low-bid contract, it might be cheaper to look for a new bidder."
Contact Us - Privacy Policy - Copyright 2005, Louisiana Weekly Publishing Company
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By Christopher Tidmore
January 21, 2002 talkback
Who Are You?...
The biggest question in the media in recent days has dealt with the source of a group of ads attacking State Senator Paulette Irons. The TV and radio spots have targeted the New Orleans Mayoral candidate as unethical in the light of the Attorney General's opinion that concluded she had violated the state's dual officeholder law.
Irons, following a televised debate last week publicly charged that the campaign of Police Chief Richard Pennington was responsible for the ads. It was an allegation with which Pennington violently disagreed.
In a statement released on January 16th, the superintendent said, "Paulette Irons has made serious accusations against me and my campaign regarding a television commercial. These accusations are absolutely and unequivocally false, and I challenge her to furnish proof of my involvement."
An investigation by The Louisiana Weekly has discovered that several of the ads were purchased by Ray Walker. In an exclusive, this newspaper has learned that Ray Walker is the father of Pennington supporter and contributor Reginald Walker.
Campaign finance documents reveal a series of contributions from Reginald Walker to the Pennington for Mayor campaign. When asked what the relationship between the younger Walker and the Chief was, Pennington Press Secretary Pierre DeGruy said, "I do not know who Reginald Walker is. He is not a campaign advisor, I can tell you that."
Why Are You Here?
Justice Revius Ortique has conducted a unique fight at Armstrong International Airport. The Aviation Board member has maintained an office at the front of the Southwest/Continental Terminal for some time, but with the new security checkpoints, he was asked to give it up.
The reason was simple. The long lines of travelers that have begun to plague New Orleans's International Airport could be cut by 50% if Ortique gave his space to the burgeoning security force. However, such arguments did not motivate him to leave. The Aviation Board formally requested that he move. He refused. Mayor Morial asked him to relocate. Ortique said, no, sir. Congressman Vitter's office begged him to vacate after it received numerous complaints. Ortique said, forget it.
Sources close to Ortique revealed that he feared the loss in prestige that would come if he left his large and prominent office at the front of the airport. His leverage within the governing Aviation Board would decrease, the source said that Ortique reasoned. The decision would affect him too much personally.
Finally, where political influence did not work, corporate power did. A delegation from Continental and Southwest Airlines apparently met with the Aviation member in a closed-door conference. No comprehensive report has come from any of the participants, yet afterwards, a reportedly frustrated and shaken Ortique said that he would leave his space.
Ortique could not be reached for comment about the meeting, and the Public Information Office of Armstrong Airport only commented, "Mr. Ortique has left the office."
Also At Armstrong...
Bob Tucker, friend of New Orleans Mayor Marc Morial, has endeavored to win the $20,000,000 management contract at the Airport for some time. Of the original six applicants for the private operations contract, only Tucker's AMC and Parson's Aviation remain.
A private poll of the Aviation Board allegedly reveals that the majority of the members want Parson's, an international firm that operates airports all over the world, to get the contract. The members were reportedly impressed by Parson's experience and expertise. However, sources reveal to The Louisiana Weekly that "friends of Tucker and Morial" have blocked Parson's bid
The reason, they explain, is that the airport contract lasts for five years and would protect many of the patronage and profession service contracts currently held by Morial allies. They cite as proof the disqualification of the first technical committee.
The Aviation Board empowered that technical committee to determine who was the best qualified for the contract. The advisory panel ruled that Parson's should have the bid. A move came from several members of the Aviation Board to disqualify the technical committee and empower another.
According to one individual close to the bid process, "It should have been finished six months ago. We are trying to get some ruling from the FAA [to push the Parson's bid]. They have been less than straightforward with the board on the way they handled it...They have manipulated the process."
Who Are You For?...
One of the most confusing questions in New Orleans politics in this past week has dealt with who City Hall insider and Morial confidant Roy Rodney is supporting for mayor. Rumors some weeks ago implied that Rodney would back Councilman Troy Carter as his friend and ally Ira Middleberg had.
In fact, a rumor campaign to that effect circulated around the city. Even the entry of Rodney's business partner Ray Nagin into the race did little to quell the idea that the Morial insider planned to team up with Carter. Political insiders immediately took to the story because of its allure. It seemed to hearken to a move by Morial's political organization L.I.F.E. (Louisiana Independent Federation of Electors) to back Carter. With the news that fellow Morial alum Middleberg had jumped on board made the story even more believable.
There was just one problem. The rumor was not true. For the most part, the L.I.F.E. members have sat out of this contest. Some back Pennington. Most are waiting for the runoff before they publicly make their stand. However, their leaders are desperate not to show a division in the ranks.
When this newspaper contacted Mr. Rodney and asked the simple question: who he was supporting and was the candidate Troy Carter, as the rumors alleged, it was his secretary who returned the telephone call in Rodney's place and said definitively that the attorney did not support Carter. So, this reporter responded, "Who is he supporting?"
The secretary said, "I can't tell you that."
"You can't tell me that? Why not?"
"I just can't?" she concluded, and implied that comment would be the last that Rodney would release to the press.
As strong as a political position as L.I.F.E. continues to hold in the Crescent City, there is an attitude held by many of the candidates this season that a strong connection to the Mayor is the political kiss of death, considering the reform attitude that prevails in the city today. One can observe this displayed in the lengths that the Pennington camp goes to separate itself from Mayor Morial and show the Chief's independence.
One source says that Rodney does indeed support his friend and business partner Ray Nagin, but one can never tell in the somewhat Byzantine atmosphere that has descended upon this year's fractured election.
Just for the record, any implication or statement that this column might have made to connect Roy Rodney to Troy Carter is inaccurate, and we retract it.
Where Are You?...
In early 2001, when the legislature reduced Harrah's New Orleans casino taxes by $50 MILLION, they required that employment not drop below 90% of the base employment.
Columnist C.B. Forgotston has learned that as of December 22, 2001, there are a total of 2,437 employees or 26 fewer employees than on November 20, 2001. That is 230 fewer employees or 91.34% of the base or 563 fewer than the alleged 3,000 employees the legislators were told they had to save.
The Weekly has also learned from a source that the Foster Administration is formally considering a provision to include removing the statutory "floor" on the number of employees in the upcoming special session for economic development.
Who's For You?...
City Council District A candidate Jay Batt has received the endorsement of the Regular Democratic Organization (RDO), continuing an ongoing string of endorsements for Batt at the expense of incumbent Councilman Scott Shea.
The successful businessman and civic leader has also received the endorsement of the prominent Gay Rights group LAGPAC and earned the nod of their rival, the Forum for Equality. Batt has also won the politically influential endorsements of Jim Singleton's B.O.L.D. organization and Ed Murray's T.I.T.S. All of these politically influential groups had endorsed Shea in their first match-up 18-months ago.
On the money front, the last fund-raising report showed just slightly more than $30,000 in the Shea warchest, more than six figures less than the amount Batt had raised. If money and political support have slowly left Shea, will the power of incumbency be enough to avoid a runoff with Batt? Only time will tell.
Where Are You Going?...
Members of the New Orleans Right to Life Committee are embarking on their annual lobbying sojourn to Washington D.C. They plan to walk the halls of the Capitol, meet with Louisiana's Congressional delegation, and march on behalf of the pro-life issue. They were scheduled to leave on Sunday, January 20th.
What Should We Do?...
When discussing whether New Orleans should privatize its Sewerage and Water System, the voters might find it beneficial to learn of the experience that one of the bidders on the Orleans contract had when it took charge of the water systems in Atlanta. This editorial from the Atlanta Journal-Constitution outlines the problems with one of the three companies pursuing New Orleans' local management agreement.
"When United Water won a 20-year contract to run Atlanta's troubled water system - the largest private contract of its kind in North America -- the company forecast annual savings for the city of at least $2 million. Just three years later, United now wants the city to pay more.
"During the last days of the administration of Mayor Bill Campbell, the giant company pressed to increase its long-term contract by $80 million, far in excess of the legal limit allowed by the city's purchasing code. But thanks to the courage of two city officials, the new administration of Mayor Shirley Franklin will have a chance to re-examine United Water's contract. It should make that examination a priority.
"The United Water juggernaut was stopped by Atlanta Water Commissioner Remedios Del Rosario. Alone among those whose names were required to sign off on additional money for United Water - including Campbell and financial and legal officers - she refused to sign, calling the contract change unethical. Fortunately, Del Rosario received strong backing from Councilwoman Clair Muller, chairwoman of the Council Utilities committee. Muller called United's request "absurd" and threatened to sue if the company insisted on charging extra for work she believed part of the contract bargain.
"It was a bad idea to give United Water a 20-year contract in the first place. Other cities have retained more leverage and extracted greater accountability in private contracts by requiring more frequent rebidding. Milwaukee and Indianapolis, for example, have sewer system contracts with United for less than 10 years.
"But Campbell didn't take the time he should have in handling his first major contract to privatize a city service. In the middle of a tense re-election campaign, he was in a big hurry to get a deal that he could sell to voters.
"After he was re-elected, he didn't follow through to make sure United Water did its job well. Burdened with a decrepit infrastructure and a poorly trained and inefficient work force, the Atlanta water system was surely the perfect privatization candidate. But without careful oversight, there was no guarantee that a private company would do any better.
"Nor was there any guarantee that United Water would make a profit off the contract. Its executives gambled that it could run Atlanta's water system efficiently, save the city some revenue and still make money for itself, and sometimes in private enterprise the risk doesn't pay.
"Now, the company is complaining about "unanticipated" problems - waterline breaks, the cutting of lines by cable companies, the monitoring of water use during the drought, and delays in capital projects. (By the way, if telecom companies cut waterlines, why not force them to pay for the problem instead of city ratepayers?) Basically, it wants to renegotiate its contract for more money.
"Nothing doing. The new city administration has some leverage with United Water because Muller insisted on a provision allowing the city to terminate the contract "at will." The city might incur some costs in doing so, but if United can't live up to its low-bid contract, it might be cheaper to look for a new bidder."
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