Re-privatized NYRA has mostly the same directors

Source: Rick Karllin, Times Union, June 8, 2017
 
The New York Racing Association, which in April was returned to private control after five years of state oversight, has a new board of directors. Under the privatization deal, lawmakers and Gov. Andrew Cuomo agreed to let the current board’s executive committee name eight of the 17 board members. As expected, they mostly reappointed themselves to the eight seats. There are, however, two new voting members, Richard Violette and Jeff Cannizzo, both with the state horsemen and breeders associations.

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New York Racing Association Privatization Plan Approved
Source: Tom Precious, Blood Horse, April 8, 2017
 
The New York Racing Association, operating under the control of the state government since 2012, will be returned to private hands under a deal that came together April 7 at the New York Capitol.  The measure was quietly and tentatively agreed to days ago, but it was caught up in a larger fight over the state budget that halted passage of it and dozens of other unrelated matters. That fight ended late Friday night. …

Governor Cuomo vetoes NYRA privatization bill
Source: NEWS10, February 2, 2017

The New York Racing Association won’t be going public anytime soon. New York Governor Andrew Cuomo vetoed a bill that would have switched public control of NYRA to the private sector. The governor left the bill unsigned past its deadline, triggering an automatic veto. The state took over NYRA in 2012, however, Governor Cuomo has laid out more plans in his 2017 budget to eventually re-privatize the horse racing association.

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For some cities, promises of privatization fall short

Source: Mark Niesse and Arielle Kas, The Atlanta Journal-Constitution, May 18, 2017

In the beginning, the gospel of privatization was as if etched in stone. It was handed down from Sandy Springs, the first new city, to generations of descendants: Dunwoody, Johns Creek, Brookhaven and Tucker. … Sandy Springs is still an adherent of the outsourcing theory. But privatization has gradually given way to more traditional government in many of the nine cities that followed. … While Brookhaven, founded in 2012, started in the Sandy Springs mold, the city brought once-outsourced programs in-house, including community planning, human resources and government technology systems. It still contracts for road paving, park maintenance, permitting and code enforcement. Even those that have backed away from blind faith in privatization still see it as the best way to start a new city. … In Sandy Springs, faith in the model remains unshaken, though it has evolved. … Jason Lary, the mayor of the new city of Stonecrest … [plans] to learn from other municipalities that outsource, and is contracting out city administration, planning and zoning, attorneys and building permitting. The Stonecrest City Council voted Monday to hire CH2M as its primary service provider. … South Fulton is taking the opposite tack. Leaders there want to assume control of the services currently under the county’s umbrella and the employees who provide them. They are negotiating agreements with the county to transfer those departments to South Fulton. …

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Is the ‘Sandy Springs model’ of government changing?
Source: John Ruch, Reporter Newspapers, July 8, 2016

Since its founding in 2005, Sandy Springs has drawn national notice for outsourcing most city government operations to competitively bidding private contractors. But last month, the city approved three-year, no-bid contract extensions due to fears of government disruption during a planning and development boom. The City Council approved the no-bid extensions only after voicing caution about not shifting to an “in-house,” public-sector government. But new local cities inspired by Sandy Springs, like Brookhaven and Dunwoody, already have brought more jobs and departments in-house. … But the model has changed. In 2011, the city dumped CH2M’s single deal to bid out multiple contracts, saying that saved $7 million. …

Georgia city shows pros, cons of going private
Source: Stanley Dunlap, barrowcountynews.com, April 27, 2014

While Barrow County leaders mull privatization, one Georgia city provides an example of both sides of the equation. Milton is one of three Fulton County cities that have undergone privatization in the last decade. The majority of operations in Milton, Sandy Springs and Johns Creek were contracted out when they incorporated in 2006, however two of them have since scaled back privatization in an effort to save money. ….. The majority of operations in Milton, Sandy Springs and Johns Creek were contracted out when they incorporated in 2006, however two of them have since scaled back privatization in an effort to save money. In 2008 the economy led to Milton officials renegotiating their contracts in order to save money. The city now has 144 employees and only contracts out a few departments. “What they figured out was that by ending the contract with CH2M Hill, and going with a more traditional model for most departments, Milton saved $1.2 million in 2010 and another $1 million in 2011,” said Milton Communications Manager Jason Wright. …. If Barrow officials decide to privatize on a large scale, then it would become the first county in Georgia to do so….

Maryland Judiciary fails to monitor contracts, audit finds

Source: Doug Donovan and Jean Marbella, The Baltimore Sun, May 10, 2017

Maryland’s court system has failed for years to properly monitor how it spent tens of millions of dollars in contracts and lacked adequate oversight to prove it was getting the most cost-effective deals for taxpayers, a state audit released Friday has found. The Maryland Judiciary lacked “sufficient documentation” to support four contract awards totaling $26 million between July 1, 2012, and Dec. 20, 2015, the audit reported. … Auditors said the judiciary did not provide adequate cost-benefit analyses to support the award of two contracts to existing vendors: a five-year, $21 million contract for Internet services, and a four-year, $2.1 million contract for a digital recording system. In the latter contract, there was a competing bid for almost two-thirds less, $736,000, according to the audit. Additionally, the judiciary didn’t save information about the losing bidders’ proposals for three contracts totaling about $5 million. … The audit also raised concerns about the number of staff allowed to access the purchasing and payment system; the security of its financial management system and database; the processing of traffic citations; and the controls over its equipment and warehouses. … The findings come as the Maryland Judiciary is beginning to prepare a report requested by the Department of Legislative Services to explain “the apparent pattern of overbudgeting” for the state’s Clerks of the Circuit Court offices, according to budget analysis documents. Between 2012 and 2016 the clerks offices were allocated up to 9 percent more than they spent, a surplus that funded other efforts “without the opportunity for the General Assembly to vet those purposes,” according to the legislative services analysis. …

Lexserv to Temporarily Shut Down While City Takes Over Service

Source: WTVQ, May 8, 2017

A temporary shutdown of the LEXserv online and phone bill payment system has been scheduled as Lexington’s Division of Revenue takes over the service from Greater Cincinnati Water Works. Beginning May 15, the city will manage all LEXserv customer service and billing services, eliminating the need for outsourcing. Officials say some of the many benefits include:

  • City will save taxpayer dollars by moving system in-house;
  • Customer service will be handled by LFUCG staff in Lexington, creating jobs;
  • Payments will be mailed to a Lexington address for processing;
  • New web portal for customers to make payments, review billing. …

A.C. trash collectors angry service privatized despite council

Source: Christian Hetrick, Press of Atlantic City, May 17, 2017
 
Angry workers and residents criticized the state’s move to privatize trash collection Wednesday night during a long public-comment portion of a City Council meeting.  The meeting came two days after officials running a state takeover of the city bypassed the council to approve a three-year, $7.2 million contract to Gold Medal Environmental of New Jersey, a company in Gloucester County. … City officials say the deal will save the financially-troubled city $1.1 million this year and won’t require layoffs. Sanitation workers will fill vacant positions in the Public Works Department, city and state officials said.  The council tabled a vote to outsource the service three weeks ago after some council members said they never received a cost-savings analysis. …

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State privatizes Atlantic City trash collection without City Council
Source: Christian Hetrick, Press of Atlantic City, May 16, 2017
 
Officials running a state takeover of the city bypassed City Council on Monday to privatize the city’s trash collection.  The state authorized the city administration to award a three-year, $7.2 million contract to Gold Medal Environmental, a private company that will handle the city’s trash and recycling collection. The decision came nearly three weeks after the council pulled a vote to outsource the service.  State Local Government Services Director Timothy Cunningham informed Council President Marty Small of the decision in a letter dated Monday, a copy of which was obtained by The Press of Atlantic City. … The move marks the first time the state has used such power over the council. The state took over the city’s finances in November through the Municipal Stabilization & Recovery Act, which gave state officials authority to pass or repeal any council resolution. Cunningham’s letter specifically cited the state’s power to “procure services” on behalf of the city.

… City administration officials said the contract to Gold Medal will save the city $1.1 million per year without requiring layoffs. The council considered the contract to Gold Medal on April 26, but balked at outsourcing the service after some councilmen said they didn’t have enough information. Those council members, including Councilman Frank Gilliam, had said they never received an analysis comparing the contract to the cost of doing the service in-house. Gilliam said Monday that he had since received a report from city Public Works Director Paul Jerkins, but said the cost analysis didn’t have “legitimate numbers” that justify the savings claimed by the city and state. …

Atlantic City Council to consider privatizing trash collection
Source:Christian Hetrick, Press of Atlantic City, April 25, 2017

City Council will consider privatizing trash collection, awarding a contract for a bike loop and amending rules regarding rolling chairs Wednesday evening. The council is scheduled to vote on awarding Gold Environmental of New Jersey a three-year, $7.2 million contract to handle the city’s trash and recycling collection. The measure is intended to cut costs in the cash-strapped city. The city’s 2017 introduced budget listed a $393,313 savings from its Public Works Department this year. …

A unanimous House votes for oversight bill vetoed last year

Source: Mark Pazniokas, CT Mirror, May 17, 2017
 
Connecticut’s legislators acted Wednesday for the second time in two years to require independent oversight of the millions of dollars in grants, loans, tax credits and other economic incentives extended to business, often a political flashpoint as states compete to attract and keep jobs.  With support ranging from organized labor to a conservative think tank, the House of Representatives voted unanimously to approve and send to the Senate an updated version of a measure Gov. Dannel P. Malloy vetoed last year as “unnecessary and unwarranted.” … Rep. Jason Rojas, D-East Hartford, the co-chair of the Finance, Revenue and Bonding Committee, said the bill requires the legislature’s Auditors of Public Accounts to examine the Department of Economic and Community Development’s entire portfolio of aid programs and report to the legislature. Their findings will be the subject of a public hearing every year. … The legislation addresses policy and political concerns of legislators. Questions over economic aid, especially when some of the recipients made headlines by subsequently laying off employees, had posed a political liability for some and, perhaps, an opportunity for others. …

Prevailing wage foes prepare new petition drive

Source: Jonathan Oosting, Detroit News, May 15, 2017
 
A pro-business group pushing to repeal Michigan’s prevailing wage law has drafted new petition language and is seeking advance approval from the state to begin collecting signatures.  The Board of State Canvassers will meet Thursday to consider the form of a petition submitted Protecting Michigan Taxpayers that would lift a 1965 law that generally requires contractors to pay their workers union-rate wages and benefits on state-financed or state-sponsored projects. … The committee raised more than $1.7 million for a similar effort two years ago but failed to advance its initiated legislation after paid circulators gathered an estimated 161,781 invalid signatures, including many duplicates.  Republican state legislative leaders want to repeal the prevailing wage law, which they argue inflates the cost of taxpayer-funded construction projects. But GOP Gov. Rick Snyder has threatened to veto any legislation that reaches his desk, suggesting it could hurt his efforts to build interest in skilled trades careers. …

GAO: DOE Needs to Implement Invoice Review Policies, Data Analytics to Manage Fraud Risks

Source: Jane Edwards, Executive Gov, May 3, 2017

The Government Accountability Office has recommended that the Energy Department adopt data analytics tools and develop invoice review procedures and policies in order to manage improper payments and fraud risks associated with contracts. GAO said in a report released Monday that DOE should also require contractors to keep detailed cost information that can be correlated with the amounts billed to the department. GAO made the recommendations after it found that DOE lacks invoice review policies and processes at five of six locations that have oversight on invoice assessments and discovered time restrictions that appear to affect the effectiveness of such reviews. …

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U.S. settles with contractor for $4.6 million after alleged False Claims Act violations

Source: Mark Iandolo, Legal Newsline, May 4, 2017

The U.S. Department of Justice announced April 24 that Energy & Process Corporation (E&P) of Tucker, Georgia, will pay $4.6 million after allegations of violating the False Claims Act. According to the department, E&P had a contract to construct a Department of Energy (DOE) nuclear waste treatment facility. The company is purported to have knowingly failed to perform required quality assurance procedures. Additionally, it allegedly supplied defective steel reinforcing bars. … “Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the government that it had performed the quality assurance work,” said U.S. attorney John A. Horn for the Northern District of Georgia. …

State works on emergency agreement for child welfare services in Omaha area

Source: JoAnne Young, Lincoln Journal Star, May 6, 2017

Health and Human Services Committee Chairman Merv Riepe announced to state senators last week that child welfare services in the Omaha and Sarpy County area could be in jeopardy. The state withdrew its intention to award a five-year, $70 million-a-year contract to Nebraska Families Collaborative on Thursday and rejected all bids after an opposing bidder filed a challenge to the bid award. The lack of a contract could lead to a gap in services for vulnerable children and families beginning in July, Riepe said. The department is attempting to negotiate a one-year emergency contract with Nebraska Families Collaborative, and then to restart the bidding process, he said. …

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Nebraska HHS official recommends extending child welfare contract for another year
Source: Martha Stoddard, Omaha World-Herald, March 18, 2015

A top state official is recommending that Nebraska continue contracting out management of Omaha-area child welfare cases for another year. In a letter to lawmakers, Tony Green, acting children and family services director for the Department of Health and Human Services, said a contract extension would allow time to choose the best course of action for the future. Green said he would start negotiating the extension on April 1, unless the Legislature’s Health and Human Services Committee objects….The state’s contract with the Nebraska Families Collaborative, an Omaha-based nonprofit, expires June 30. It was originally signed in 2009 and has been extended once already for one year. The contract this year is worth up to $59.5 million….

Nebraska privatization of child welfare hasn’t produced ‘any measurable benefit,’ new study finds
Source: Martha Stoddard, Omaha.com, February 6, 2015

Nebraska’s five-year experiment with privatizing child welfare has not produced “any measurable benefit” for the state, according to a study report released Thursday. The study compared results achieved by state child welfare workers and by the Nebraska Families Collaborative, the private agency that manages child welfare cases in the Omaha area. It found no cost savings and no significant difference — either positive or negative — in outcomes for children and families….. They offered three options — staying the course with the private contractor, returning all case management responsibilities to the state or revamping the roles of the state and the collaborative to achieve real reform. ….

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