[StBernard] nola.com article on URG contract

Westley Annis westley at da-parish.com
Sat Apr 1 23:32:51 EST 2006




To quote DiFatta:

DiFatta disagreed, saying it was important to keep the prices in place
because administration officials said the charges were reasonable and should
be further appealed with FEMA officials.

Uh Joey, *what* administration official(s) said the charges were reasonable?
What is the expertise of that person(s) in the field of debris clean-up
post-hurricane?

And..."
Council members never ratified the contract as required by the Parish
Charter for any nonbudgeted expense. The council, however, never challenged
the legality of the pact. "

Thus it would seem until this last "ratifcation" that the contract was not
valid or legal.

Now I'm not gonna sit back and Monday-morning quarterback the situation but
it does seem as though some folks weren't doing the job they were elected to
do. Also, we may need to tweak our charter or something so that the
President alone cannot obligate the parish to such large debts w/out
consultation with or approval by the Council.
JY



Deal angers St. Bernard council

Parish may be liable for $36 million bill
Saturday, April 01, 2006
By Karen Turni Bazile

St. Bernard/Plaquemines bureau

Two days after news broke on a federal investigation into St. Bernard
Parish's debris pickup contract, the Parish Council on Friday lashed at
Parish President Henry "Junior" Rodriguez for implementing the deal without
a council vote, possibly making the parish responsible for work that may not
be reimbursed by FEMA.

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"The contract shouldn't have been executed because -- damn it -- we are the
responsible party," Councilman Craig Taffaro told Rodriguez.

The heated reaction came as council members got official word from parish
administrators that the contract with Unified Recovery Group could get the
parish on the hook for as much as $36 million.

Still, council members gave the company its blessing to continue working in
the parish, as long as any disputed charges are resolved in 60 days or come
back for council consideration.

The meeting was the council's first debate on the contract since news
Wednesday that the FBI is investigating the deal as part of a broad probe
that is also examining parish spending on temporary trailers, employee
overtime and a contract for removing hazardous waste and sewage, according
to interviews with people who have been questioned by the FBI.

Federal officials have declined to comment on the probe.

Rodriguez and URG officials denied wrongdoing this week, saying they welcome
the review. Council members were divided, with some defending the contract,
while others criticized it.

The parish gave the contract to URG the week after Katrina in a no-bid
process, and the council gave it again to URG in November over cheaper
offers, but Rodriguez inked the second contract with the company a few weeks
later without council ratification, an unusual move in such large deals.

Council members never ratified the contract as required by the Parish
Charter for any nonbudgeted expense. The council, however, never challenged
the legality of the pact.
Still, at Council Vice Chairman Joey DiFatta's suggestion, the council in a
4-2 vote Friday gave the controversial contract the force of law. DiFatta,
Taffaro and council members Judy Hoffmeister and Tony "Ricky" Melerine voted
for it. Council Chairman Lynn Dean and Councilman Mark Madary, who have
criticized the contract, were opposed. Councilman Kenny Henderson was
absent.

Members who voted for the deal said they did so because debris pickup needs
to resume to avoid a public health threat.

URG stopped curbside debris pickup three weeks ago because company officials
said they had amassed $70 million in bills and hadn't received payment from
the state, which is handling the federal reimbursement money.

Most Parish Council members supported Rodriguez when he signed an emergency
no-bid contract with URG three days after Hurricane Katrina flooded the
entire parish.
But amid criticism from other contractors and questions about URG's prices,
the council advertise the work a few months later. Twelve companies
competed, including URG. At the administration's recommendation, the council
in November approved staying with URG even though parish documents show that
many of the company's prices were higher than competitors.

The council then asked Rodriguez to negotiate URG's prices down, and several
council members said Rodriguez should have brought the contract back for
final approval. The parish is expecting FEMA to reimburse all of the debris
cleanup costs, and J.S. Lawrence Green, URG's chief operating officer, said
at Friday's meeting that his company understands that the parish may not
have money to pay for any amount that FEMA doesn't reimburse.

The Sept. 3 contract had a clause in it indicating that the parish would pay
URG only if it had money available. But Rodriguez told council members
Friday that FEMA wouldn't allow the same clause in the current contract.

"The budget is going to be out of whack regardless of URG's generosity or
lack of generosity, because we have a signed contact, and we don't have a
way to pay for it," Taffaro said.

Taffaro said it was wrong for Rodriguez not to tell the council that a new
contract had been signed, and he questioned whether it amounted to deficit
spending for the council to approve the deal knowing there may be a $36
million gap that FEMA may not cover.

DiFatta disagreed, saying it was important to keep the prices in place
because administration officials said the charges were reasonable and should
be further appealed with FEMA officials. DiFatta also said at the meeting
that the parish Monday would be receiving $23 million of the $30 million
released this week by the Governor's Office of Homeland Security and
Emergency Preparedness for St. Bernard debris pickup.

The state had held the money after the legislative auditor's office raised
concerns about St. Bernard's accounting for $31 million in federal aid the
parish received in the storm's immediate aftermath. The state earlier this
week said it is now satisfied with the parish's accounting, but that St.
Bernard still must lower its contract charges with URG or it could be on the
hook for $35 million in charges that FEMA won't reimburse.
State Sen. Walter Boasso, R-Arabi, told parish officials by phone that he
was able to get $23 million of the new state money released quickly while
the rest continues to be reviewed by the state treasurer's office. The
remaining $7 million should be released later next week, Boasso said.

If the parish receives the money Monday, Green told the council he could
resume pickup Wednesday.

St. Bernard is one of two parishes in the New Orleans area that decided to
hire its own debris removal company after Katrina instead of letting the
Army Corps of Engineers handle the job. Plaquemines Parish is using a firm
to collect debris in some parts of the parish and letting the corps pick up
debris in the other areas.




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