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Notable Quotables (in their own words)

November 6, 2012 by tomaswell

“Mr. Hahs has a clear advantage over the (other) bid participants. Further, he had the ability to influence the district’s decision-making process by being allowed to interact with all decision makers on the prior project while other competitors were under a gag order.”

—Written statement from a company that competed for a $32 million contract to renovate Kansas City Schools. The contract was awarded to a company founded by a man who served as a consultant on the origional bid project in which all bids were rejected. The consultant/contractor was brought in as a non-paid advisor by Mike Rounds, then-chief operating officer for the school system who subsequently resigned and was recently hired by Louisiana Superintendent of Education John White as a deputy superintent at a salary of $170,000. White and Rounds were classmates in 2010 at the Broad Superintendent’s Academy.

Posted in Education, Notable Quotables | Leave a Comment »

Nothing but the best for DOE: John White hires $170,000 deputy central to Kansas City $32 million bid controversy

November 6, 2012 by tomaswell

First it was Los Angeles resident Dave “Lefty” Lefkowith of the unsuccessful attempt to auction off blocks of water in Florida on behalf of Enron and now State Superintendent of Education John White has hired another out-of-state executive staff member who brings considerable political baggage to his new job.

Lefkowith, you may recall, is being paid $146,000 to commute from his home in Los Angeles to hype the Department of Education’s (DOE) computer Course Content. Oddly, his title keeps changing.

Originally listed as DOE’s Director of the Office of Portfolio, he identified himself as a “deputy superintendent” when he made a video best described as amateurish in which he promoted the department’s Court Content.

But when White announced a reorganization of his staff last month, he listed Lefkowith as an assistant superintendent “overseeing vouchers, charter schools and other areas.”

Included in that same announcement was the appointment of Mike Rounds who is being paid $170,000 a year as deputy superintendent for district support, whatever that title entails.

Rounds, it turns out, comes from Kansas City where he served as Chief Operating Officer for Kansas City Public Schools.

Both he and White are 2010 graduates of the Broad Superintendents Academy of Los Angeles which critics say turns out superintendents who use corporate-management techniques to consolidate power, weaken teachers’ job protections, cut parents out of decision making and introduce unproven reform measures.

The academy, founded by billionaire businessman Eli Broad, offers a six-weekend course spread over 10 months. There are no qualifications that students have any experience in education, just that they have a bachelor’s degree.

Critic Sharon Higgins says she became alarmed when she witnessed her school district in Oakland go through three Broad-trained superintendents in quick succession. She said she saw principals and teachers whom she described as “high-quality, dedicated people,” force out by Broad superintendents trained to aim for “maximum disruption” when they came to a district, with little regard for parent or teacher concerns.

Rounds resigned his Kansas City position last March 16 following an investigation by a local television station into bid irregularities involving a $32 million renovation project for Kansas City schools.

A month after his resignation, the contract was cancelled.

Ryan Kath, a reporter for KSHB-TV in Kansas City, broke the story of a contract awarded to an unpaid consultant who had been brought in by Rounds to help in the selection process on the original request for proposals (RFP) by the school system. After all the bids on the first project were rejected, a new RFP was issued and the consultant founded a company which subsequently bid on and won the contract.

In early 2011, Kath said, the Kansas City Public School system decided to upgrade a number of school buildings after decades of neglect and deferred maintenance. Specifically, much of the work was to upgrade central air conditioning in several of the schools. Initially, the project was to cost about $85 million and many of the area’s leading construction companies spent thousands of dollars assembling bid packages.

School district staff needed outside help to wade through the complex selection process and Rounds retained a pair of paid consultants to oversee the process.

Rounds, who was in charge of selecting a company to manage the project, also brought in a voluntary adviser, Dayton “Buddy” Hahs, an area businessman with an extensive background in energy conservation. Rounds told Kahn he asked Hahs for help because of his expertise in the industry and because Hahs did not charge a fee for his work. “He wanted to make sure than when we selected an energy performance contractor that it went well,” Rounds said.

Hahs reviewed bids, formulated questions for bidders and sat in on interviews.

On Aug. 30, bidders received emails informing them that all bids were being rejected “in the best interest of the district.” No other explanation was provided.

Also on Aug. 30, Rounds emailed Hahs saying, “I would still really like to sit down with you to discuss the way forward on our infrastructure requirements” and a couple of weeks later, Hahs and a business partner attended a meeting with district personnel.

On Oct. 7, the district divided the project into several tiers and issued a second RFP on the first tier of construction along with a fee for acting as project manager. Many of the same companies bid on the revamped project.

The district on Nov. 16 awarded the contract to a “mysterious new company” that no one had ever heard of,” Kath said. The contract was awarded despite the company’s submitting a bid that was $2 million higher than the low bid.

That company was HMM Construction Services, founded by Dayton “Buddy” Hahs, the same unpaid consultant who had participated in interviews on the initial RFP. State corporate records were filed on Oct. 11, just four days after the second RFP went out and only a couple of weeks before the deadline for submitting bids.

Moreover, Kath learned that Hahs was never required to sign a non-disclosure agreement which is considered standard protocol for consultants and advisors and despite advice from the district’s legal counsel that a non-disclosure agreement be signed by Hahs.

William Black, a law professor at the University of Missouri-Kansas City, said that the bid “destroys the heart of what it means to have competitive bidding.”

Others called the contract a “monster inside deal.”

On March 13, just over a month after Kath’s initial story, it was announced that Rounds would resign, effective March 16, “to give his full attention to land a superintendent job in an urban school district,” according to a statement from the district.

On April 14, Kansas City Public Schools Superintendent Stephen Green announced that the district was terminating the contract after it became clear that HMM would not be able to meet its deadline and also would run over budget.

In May of this year, Missouri State Auditor Tom Schweich released an audit of the district that was harshly critical of the contract. “Any case where a friend or relative or someone on the inside is getting a contract, you have to really document why they were the best person because there’s going to be immediate suspicion on the part of the public,” Schweich said.

So, after issuing a controversial contract to a contractor with inside knowledge at a cost $2 million more than the low bid, Rounds leaves the Kansas City School system to seek a superintendent’s job “in an urban school district,” only to wind up as Deputy Superintendent for District Support for the Louisiana Department of Education—working with John White, his old classmate from that bastion of educational achievement, the Broad Superintendents Academy.

First there was Lefty Lefkowith commuting to Louisiana from Los Angeles to serve as an assistant superintendent and now we have Mike Rounds of Kansas City as a deputy superintendent—at a combined salary of $316,000.

Apparently all those urban school districts out there did a better job of vetting Rounds than did the Louisiana Department of Education. Aren’t we lucky?

And let’s not forget that this state is broke.

We can’t wait to see White’s next personnel move.

Posted in ALEC, American Legislative Exchange Council, BESE, Education, Privatization | 9 Comments »

Notable Quotables (in their own words)

November 5, 2012 by tomaswell

“I’m not familiar with the safety recommendations.”

—Former Secretary of Natural Resources Scott Angelle (now a candidate for the Public Service Commission in Tuesday’s election), responding to Congressman Ed Markey (D-Mass.) during questioning about the BP Deepwater Horizon explosion and subsequent disastrous oil spill.

“You haven’t analyzed the recommendations?”

—Congress Ed Markey.

“I have not.”

—Angelle.

“Given your job, don’t you think you should’ve looked at those safety recommendations?

—Markey.

“I have not analyzed those recommendations, sir.”

—Angelle.

“Could you analyze them and give a set of responses to the safety recommendations back to the committee?”

—Markey.

“Sir, I have not analyzed all those recommendations.”

—Angelle.

Posted in Governor's Office, Notable Quotables, Politicians | 2 Comments »

Angelle’s performance before congressional committee embarrassing; Ponti embellishes his accomplishments

November 5, 2012 by tomaswell

Editor’s note:

Within a couple of hours of posting this story, LouisianaVoice received a telephone call. The display on our phone indicated it was from one Holly Boffy. Boffy is the District 7 member of the Louisiana Board of Elementary and Secondary Education (BESE). That is in the southwest corner of Louisiana. Why would she be calling us? we wondered.

It turns out that it was a robocall on behalf of the candidacy of Scott Angelle for the District 2 Public Service Commission seat.

So, why was a BESE member from the Lake Charles area allowing her telephone to be used on behalf of a Public Service Commission candidate from the Baton Rouge area? In all likelihood, she doesn’t know bean dip about the machinations of the Public Service Commission.

The answer is simple.

Boffy, of Youngsville, Louisiana, received two $2,500 campaign contributions in her run for office last fall from Jindal—one on Aug. 25 and a second on Aug. 29. Angelle was originally appointed by former Gov. Kathleen Blanco but held over by Jindal as Secretary of Natural Resources—until he abandoned his post in the middle of the crisis over that toxic sinkhole on Bayou Corne in Assumption Parish.

Connect the dots.

The Piyush Jindal dynasty won’t be satisfied until it has complete control of the state, every agency, board and commission, from top to bottom.

Read on:

Whatever your sentiments about the resumption of offshore drilling in the Gulf of Mexico, voters in Louisiana Public Service Commission District 2 would do well to examine the records of the top two contenders in Tuesday’s election to replace retiring commission member and Vice-chairman James Field.

In spite of the erroneous claim by one crackpot blogger that Scott Angelle faked that TV ad showing him addressing thousands of rabid supporters (oh, wait; that was LouisianaVoice, wasn’t it?), it is still worthwhile to take a close look at the candidate. His performance before a congressional committee nearly a year following BP’s disastrous Deepwater Horizon explosion that killed 11 men and injured 17 others and which produced a oil spill that spewed 4.9 million barrels of oil into the gulf over a three-month period would be comical were it not so pathetic.

At the time of his questioning by Congressman Ed Markey (D-Mass.) during the March 16, 2011, hearing by the House Natural Resources Committee, Angelle was Secretary of the Louisiana Department of Natural Resources.

He recently resigned that position in the midst of the still-ongoing Bayou Corne sinkhole disaster in northern Assumption Parish to seek the District 2 Public Service Commission seat, leaving it to others to grapple with a potentially disastrous situation that has produced the sinkhole that is now more than five acres in size and which has caused the evacuation of scores of residents.

Nor has his former boss, Gov. Piyush Jindal shown his face at the sinkhole site despite his propensity to seek camera face time anytime an oil spill or hurricane threatens the state. That’s because the Bayou Corne situation came about because of permits issued on his watch.

And lest we be accused of being a shill for his leading opponent, State Rep. Erich Ponti, rest assured we have some pointed remarks about his misleading TV ad campaign as well.

Besides touting his business acumen, Ponti makes the claim in his ads that he balanced the state budget which, for those even vaguely familiar with the Louisiana legislative process, is an outrageous claim, a preposterous misrepresentation.

First of all, state law mandates that the legislature pass a balanced budget. Unlike Congress, the legislature is forbidden from approving a deficit budget. So, Ponti and his 104 colleagues in the House and the 39 in the Senate in reality had no choice in balancing the budget. It is a claim that each of the other 143 legislators have just as much right as Ponti to make—none.

Second, Ponti is not even a member of any of the House committees that consider the budget before it goes to the House floor. He is chairman of the House Commerce Committee, but it does not consider the budget. Neither does the House Committee on Homeland Security or the Joint Committee on Homeland Security, on both of which he sits. Nor does the Capital Region Legislative Delegation or the Louisiana Republican Legislative Delegation, the two caucuses of which he is a member.

He is not a member of the House Appropriations Committee. Nor is he a member of the Joint Budget Committee or even the Legislative Budget Control Committee.

So, any claim on his part that he had a hand in balancing the state budget is, at best, disingenuous and at worst, an outright lie.

But back to that hearing in March of 2011:

Here are excerpts from the questioning by Markey, the ranking member of the Natural Resources Committee, and Angelle’s responses:

• Markey, discussing safety comparisons that show better safety records for rigs in European waters than those in U.S. waters even though the same companies were operating in each, asked: “Don’t you think we need to insure that these rigs are operating safely in order to protect lives of workers on these rigs? Don’t you think that the safety recommendations of the BP Commission should be implemented?”

• Angelle: “I’m not familiar with the safety recommendations.”

• Markey: “You haven’t analyzed the recommendations?”

• Angelle: “I have not.”

• Markey: “Given your job, don’t you think you should’ve looked at those safety recommendations?”

• Angelle: “I have not analyzed those recommendations, sir.”

• Markey: “Could you analyze them and give a set of responses to the safety recommendations back to the committee?”

• Angelle: Sir, I have not analyzed all those recommendations. I will tell you that in my comments, I indicated it would not be business as usual and we support it not being business as usual.”

• Markey: “Does that include implementing the safety recommendations of the BP Commission?”

• Angelle: “I am not aware of all of the safety recommendations of the BP Commission.”

• Markey: “Are you aware of any of the safety recommendations of the BP Commission?”

• Angelle: “I am aware of some of the safety recommendations, yes sir.”

• Markey: “Are there any of those safety recommendations that you recommend be implemented? Can you tell us what those are?”

• Angelle: “I would just simply say that generally, I believe that repetitive safety measures as…blow out preventers and those kinds of things are very important. I certainly understand containment issues (as) being very, very important but I would say again that having the new regulations that have been promulgated, we are now at a point that the industry has demonstrated to the government the ability…”

• Markey: “Even though you are not familiar with the safety recommendations of the BP Commission, you’re ready to say it’s safe and people should go out there, is that what you’re saying?”

• Angelle: That’s not what I said. I said that it’s my understanding that the Bureau of Ocean Energy has promulgated new rules and regulations and the industry has demonstrated an ability to comply with those and now is the time to begin issuing permits inasmuch as industry has begun to comply with those recommendations.”

• Markey: “And they issued those recommendations last month. So we’re ready to go. Are you satisfied with the recommendations that were promulgated by the…”

• Angelle: “It’s not for me to be satisfied. I come here not to blame but to bring about a solution and that is the industry has demonstrated an ability and we need a sense of urgency in issuing permits.”

• Markey: “In your testimony, you say that seven rigs have already left the Gulf since the moratorium was declared. But according to the Department of the Interior, at least four of these seven rigs have returned to the Gulf in 2011 and five new rigs have already arrived or are scheduled to. Overall, there are 125 (rigs) in the Gulf of Mexico today compared to 122 one year ago. Doesn’t it misrepresent what is happening in the Gulf to only mention the rigs that have left without mentioning the new ones that have come in?”

• Angelle: I would say that whatever new ones that have come in, they are not working. It’s just inventory and it’s like having automobiles on a lot; you can have a lot of automobiles on the lot but if you’re not selling them, you’re not creating economic activity.”

• Markey: “But we have the new regulations and we’re ready to go and the administration is now issuing new leases and the rigs are returning. These companies are capitalists; they are returning and new ones are arriving, so it represents a confidence on the oil industry in what is happening or else they would not be returning and they would not be adding new rigs.”

• Angelle: “The Obama administration is not issuing new leases. The Lease sales scheduled for this year have been cancelled.”

• Markey: “I do not think oil companies are sending rigs back just to sit idle. That’s not how oil companies operate. They’re sending them back because there are new opportunities for them.”

So what this race boils down to—or at least what it should boil down to is these two questions:

• If Scott Angelle would walk into a congressional hearing totally unprepared to discuss something as important as proposed safety regulations for offshore drilling—an issue that was certain to impact the Louisiana economy and hundreds of jobs for Louisiana workers—what makes voters think he would adequately prepare himself for such matters as utility rate increases and regulations for, say, the trucking industry in Louisiana as a member of the Louisiana Public Service Commission?

• Is Scott Angelle simply being opportunistic in trying to set himself up for a run at the governor’s office in 2015?

Posted in BESE, Campaign Contributions, Commissions, Governor's Office, Politicians | 11 Comments »

Notable Quotables (in their own words)

November 2, 2012 by tomaswell

“Everything they (legislative committees) do is scripted. I’ve seen the scripts. They hand out a list of questions we are allowed to ask and they tell us not to deviate from the list and not to ask questions that are not in the best interest of the administration.”

—Rep. Joseph Harrison (R-Gray), on his removal from the House Appropriations Committee by House Speaker Chuck Kleckley (R-Lake Charles) on Friday, one day after Harrison voted against the Jindal administration on the proposed contract between the Office of Group Benefits (OGB) and Blue Cross/Blue Shield of Louisiana (BCBS).

“I was elected by the people of (House) District 82 on a platform of fiscal responsibility. It is the job of legislators…to ask difficult questions necessary to ensure that taxpayer dollars are spent efficiently and wisely.”

—Rep. Cameron Henry (R-Metairie), on his removal from the House Appropriations Committee on which he served as vice-chairman following his vote against the Jindal administration on the proposed OGB contract.

Posted in Governor's Office, Health Care, House, Senate, Legislature, Legislators, OGB, Office of Group Benefits, Politicians, Privatization, Teague | 2 Comments »

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