The city quietly deposited a $2 million Republic Waste settlement check recently while City Council mulls extending the same Republic contract for a year amid ongoing criminal fraud investigations and audits.
Republic is accused of billing the city for collection and disposal of tons of garbage collected in other cities that also paid for the same services. The alleged criminal activity was revealed in a series of Channel 13 investigative reports. Republic provides trash pick-up for 86,000 Houston households as part of a six-year, $58.8 million contract.
After a recent briefing on the settlement - which did not require council approval - a bitterly divided council punted a proposed one-year, $4.9 million Republic contract extension to commit
tee.
Attorney Jim Moriarty of Moriarty & Leyendecker, who negotiated the settlement, called the extension a "no brainer" for the city, but a money loser for Republic.
In his 20 years of fraud investigations, Republic is the first company to step forward and admit any wrongdoing, he said. The overbilling also appears to involve only two Republic employees, one who was fired and one who retired.
Wrong signal
"Council clearly felt it sent the wrong signal, saying in effect that we caught you ripping us off but your price is so good and you've been so nice that we'd like to keep working with you. Unfortunately, the extension may not only be the best deal for the city, it may be the only deal," concluded City Controller Annise Parker.
Before fraud was discovered, the city had planned a routine contract extension. Although council told the city's Solid Waste Management director to come back with an alternative plan, no other waste hauler appears ready to meet or beat Republic's price. The director said the city simply can't do the work with existing personnel and equipment. If City Council approves the contract extension until June 30, 2007, the city would seek bids for a new contract and analyze bringing the work back in house.
Contract safeguards
The contract amendment includes safeguards for the city, such as limiting the amount of waste disposal for which the city will pay Republic. Other protections include two in-depth audits. The first audit will determine how much the city is owed. Republic has agreed to reimburse the city up to $150,000 for this audit. The controller also will conduct a performance audit of the city's Solid Waste Department.
The Controller's Office audits are part of a multi-agency investigation that includes the Houston Police Department and the Harris County district attorney. The U.S. Immigration and Naturalization Service and the Social Security Administration are investigating allegedly false Social Security numbers.
Graffiti welcomes criminals
It's a sign of the times in Houston.
Violent crime wave, HPD staffing shortages, tight city budget. UCD, Scribe, Weka. If you don't recognize those names, look closely at the graffiti scrawled across Houston. You may have read a lot about it lately in the Chronicle, b
ut allow me to share a few things you may not have read.
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Controller's Perspective __
The same graffiti's all over the internet – copyrighted, bragged about and celebrated at big festivals such as this month's 6th International Graffiti Festival in San Antonio and the L.A. Graff Expo, where “legendary artists” showcase everything Los Angeles "graffiti culture" offers.
Taggers display their art proudly on the internet. One website shows more than 200 members. They boast on a message board, show pictures and give advice about protecting work against the weather.
While many of those who paint call it “art”, it's nothing more than vandalism. Art is something I paint on my property. When I paint it on yours without permission, it's a crime. And it costs tax dollars to clean and precious police resources to track down the culprits. It inspires other vandals and, since some graffiti is gang-related, violent crime.Graffiti squads
The cleanest cities dedicate a small full-time squad to graffiti. Festivals, websites, stickers with possible fingerprints – multiple evidence trails require more than one full-time officer and sporadic help in pursuit.
The sooner the city's new anti-graffiti coordinator gets more help, the better. We're fighting a time-sensitive crime. Graffiti cleaned up in 24-48 hours results in a nearly zero rate of recurrence. Because of the backlog of complaints, a 311 graffiti call reportedly leads to a new paint job one to two weeks later.
One idea under consideration is strengthening the city's graffiti ordinance by shortening the 30-day waiting period for property owner abatement to 10 days. Neighborhood Protection also urges property owners who want the city to cover their graffiti to sign a form waiving the 30-day waiting period (available at www.museumdistrict-alliance.org ). 
As a council member, I worked to increase funding for the city's miniscule bandit sign division. I don't see that much difference between the small business signs that litter city rights-of-way and graffit in the same places. Both kinds of perpetrators know, or should know, what they're doing is illegal.
Cleanmontrose.com
A recent Museum District Business Alliance meeting attracted more than 80 property owners. They decided it was time to take action. For more information about the Montrose/Museum District's Anti-Graffiti Project, see: www.cleanmontrose.com or www.museumdistrict-alliance.org .
Anyone who spots a tagger in the act should call 911. Otherwise, call 311. People are also asked to donate old paint to the effort by recycling paint at the city's largest drop-off recycling centers, 5900 Westpark and 11500 South Post Oak. Call 311 for hours.
Houston must prioritize revenues to fund more police academies and do everything possible to stop the city's recent violent crime explosion. Graffiti surely ignites some of the sparks. We all have to help stomp them out.
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Money Matters 2 & 8 a.m. 2 & 8 p.m. Mondays on the Municipal Channel |
City riding big sales tax wave
The ups and downs of budget projecting finds the city on the positive side, bolstered by strong sales tax receipts and Metro reimbursements.
According to the city controller's latest MFOR (Monthly Financial and Operations Report), the city's general fund could end the fiscal year June 30 with a $10.6 million surplus. The report covers the period ending December 31.
The city controller projects a net $5.3 million increase in revenues and a net $5.3 million decrease in expenditures.
Rising general fund revenues
- Intergovernmental Revenues increased $3.2 million due to a Metro payment. Per agreement, Metro reimburses the city for costs associated with certain road improvement projects.
- Sales tax revenues continue to outperform expectations, resulting in an additional $1.5 million increase. (The latest numbers show 2006 city sales tax payments to date are up 13.75% over last year at this time. That's almost $9.6 million.)
- Interest revenues rose $600,000 due to higher than expected interest earnings.
Expenditures
City officials have seen a dramatic $5.6 million drop in electricity costs because of the new electricity contract, revised projected consumption levels and lower natural gas prices.
Property insurance premiums, however, rose about $600,000. Overall, expenditures dropped $5.3 million.
Downtown skatepark showcased
March - The controller previews plans for the proposed, but not yet fully funded, downtown skatepark (www.downtown_skatepark.htm). She also tours one of the city's five smaller skateparks.
Money Matters airs at 2 and 8 a.m. and 2 and 8 p.m. Mondays on the Municipal Channel (Warner Cable 16, Kingwood 14, TCI 16, Phonoscope 2 and TvMax 20).