Tuesday, September 19, 2006

Administration has not learned Blanco's lesson

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Despite promising Ray Blanco in July that it would do better, it is clear from last night's performance that Mayor Robinson-Briggs' administration has not learned Blanco's lesson.

In fact, the Administration's explanations RAISE MORE QUESTIONS than they give answers.

Take the SALE OF ANTICIPATORY NOTES that came up at last night's agenda-setting session. (You'll want to read Bernice's coverage, "Council Faults Late, Incomplete Submissions")

Thanks to a sharp-eyed and inquisitive reader, PT broke this story last Thursday, the 12th ("$12M notes sale today is a puzzle"). On Friday, PT followed up with reader feedback:
"BIG QUESTION: WHAT IS THE $900K FOR? -- Reaction to yesterday's post about the online auction by the City of $12.6M in Anticipatory Notes ("$12M notes sale today is a puzzle") centered mainly on two questions: 1) What accounts for the $900K difference between last year's and this year's auctions? What is the excess for? Is somebody trying to pull a fast one?... and 2) Why does the Council appear to be OUT OF THE LOOP?"
So what are some of the questions raised by the administration's performance at the Council's agenda session last night?

Why was the Council left out of the loop? -- The notice of sale was dated Thursday, September 7. That's the day of the previous Council business meeting. And the administration didn't brief the Council on -- how did Corporation Counsel Williamson put it -- the 'catastrophic' results of an impending default? Does this suggest the Administration didn't know about it BEFORE the Council meeting? Or that they knew and decided to KEEP THE COUNCIL IN THE DARK? An EMERGENCY MEETING OF THE COUNCIL would have been appropriate. Why wasn't one held? Instead, the administration -- evidently in a panic -- threw together a multi-million dollar deal without Council approval and involving three parties over which no DUE DILIGENCE was exercised.

What exactly did TKG do to 'EARN' $25K? -- So Ms. Knight-Marshall pulled Robinson-Briggs' chestnuts out of the fire. But what EXACTLY did she do for this handsome fee? And who are the other parties, that the Council should not have the skimpiest opportunity to exercise their due diligence responsibilities? This whole things smacks of a Zulima Farber type response to an urgent situation.

Numbers, schnumbers...who needs numbers? -- PT's original post noted a $900K discrepancy between last year's anticipatory notes ($11.7M) and this year's ($12.6M). Last night, Bernice reports, Corporation Counsel Williamson threw out a figure of $15M -- saying it would be catastrophic if the City defaulted on $15M in past debt. Now there are three numbers. So answer me this: If the city needs to cover $15M in debt with anticipatory notes, why was the issue only for $12.6M? Where IS my Excedrin???

Reality surprises the Administration. -- So, the City Administrator -- doubling as the Director of Administration and Finance -- has never sat down and gone over the books to review ALL UPCOMING FINANCIAL OBLIGATIONS? Instead, he's caught by surprise? And we're paying HOW MUCH for this level of competence?

What did the Mayor know and when did she know it? The Mayor is the chief elected official. The buck stops at her desk. Was she in the loop on the looming catastrophe? If she was, why didn't she insist on calling an EMERGENCY MEETING of the Council -- one of her prerogatives under the charter? If she wasn't, why wasn't she? How could the city, in a few short months under her leadership, be on the verge of default on its financial obligations? The city's credit rating would be ruined. Why didn't she exercise more appropriate leadership?

Are there more -- and MORE COSTLY -- surprises waiting?

Sooner or later, it seems, these people are going to cost the taxpayers REAL money -- and I don't mean for political hangers-on and catered treats for the Mayor's office.

And this is from the MAYORAL MENTOR's handpicked crew!?

Ray, KEEP CHANNELING. We need it.

-- Dan Damon

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