“Audit targets Republic Waste for allegedly overbilling Houston “

City Controller Annise Parker has announced the start of an in-depth audit of alleged criminal activity involving Republic Waste Services and city garbage collection and disposal.

Gosh, where would the city auditors be without news stations to do their damn jobs? Oh well, I’ll stop kvetching and get on with her little release, which was just emailed to all city employees.

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 collecting and disposal. The company is also accused of hiring workers with phony Social Security numbers. The alleged criminal activity was revealed in a series of investigative reports aired by Channel 13.

“It’s obvious from information shared with my office by 13 Undercover reporter Wayne Dolcefino that the city has been ripped off,” said Parker. “I am determined to recover all the money that is rightfully owed to taxpayers.”

“This is one of the largest privatization contracts in the city, and these problems raise doubts about our ability to oversee such contracts.”

Which is why I’ve always said that privatization sucks as a “solution” to city government woes. It’s nothing but a way to hand a money mint to whomever’s got the political connections through. “Private industry” is not more efficient than a city government at doing the things a city is supposed to do. Why? Simple: the bottom-line feedback on how well the government is doing its job is the re-election of the officials running it. They want to keep their constituents fairly happy (or at least not totally unhappy), so they “encourage” the government to work efficiently.

The bottom-line feedback for a business can be expressed in three words: two of them are “stock prices” and the other is “dividends.” Civil service managers do not answer to angry shareholders demanding higher profits; they answer to politicians who want to keep their bosses — the voters –happy.

Oh yeah, I was going to shut up and let you read, wasn’t I? Enh, chalk it up to vested interest in opposing privatization then. That always works….

The controller’s audit will be conducted in two phases. Phase I, to be completed as soon as possible, will determine the extent of the alleged fraudulent activity and determine how much money the city is owed. Phase II includes a performance audit of the city’s Solid Waste Management Department and its organizational structure, internal controls, policies and procedures.

Ok, not to snark, but if you have to hire managers whose primary qualification is the ability to handle crews made up of ex-felons, don’t expect them to be top-notch at keeping the paperwork in order.

What, you thought we only hired UH grads to take out the trash? (I’d have said TSU, but someone might have thought I was commenting about the marketplace value of their attendence certificate diploma, and deemed me racist). Be serious. It’s trash. Smelly, disgusting, awful trash. You throw it out because you don’t want it, what makes you think anyone else wants to fool around with it all day for $18K per year? We take what we can get and look the other way if their qualifications are a little irregular. Of course, we do insist they be living, breathing people, if they want to collect a paycheck. We have our standards.

The Controller’s Office audit is part of a multi-agency investigation that includes the Houston Police Department, the Harris County District Attorney, the U.S. Immigration and Naturalization Service and the Social Security Administration. The mayor has engaged attorney Jim Moriarty of Moriarty & Linedecker to negotiate a financial settlement with Republic.

Thereby showing once again, that our Legal Department is only useful for screwing over employees.

Republic has agreed to reimburse the city up to $150,000 for the first phase audit. The Controller’s Office has engaged Jefferson Wells International to perform both phases.

Republic provides trash pick-up for 86,000 Houston households and has in excess of $50 million worth of city contracts.

So that $150K is basically bird feed. No, come to think of it, wouldn’t it be payola going to the mayor’s select legal counsel? Must be nice to pay off your friends without even reaching into the taxpayer’s pocket to do so.

And in other news, “I live!” It’s just been a pain lately. Lots of work and a few personal things. Oh and Civ 4. Lots of Civ 4. Bad me, I’ve been neglecting the blog while I conquer the world. Or rather, get my pants beaten off me.

One other item of note in the Controller’s mail (actually there were several, but I’m only covering this one for now).

Report shows $2.9 million “surplus”

City officials smiled, but the unusual words didn’t flow easily – budget surplus. What’s that? Yes, both the city controller and the Finance and Administration director predict almost $3 million may be left over at the end of the fiscal year June 30.

City Controller Annise Parker delivered the joyful holiday news during the MFOR (monthly financial report) presentation. The report covers the period ending October 31.

“We’re cautiously optimistic,” Parker said, “but we’re not running out to spend it.” Mayor Bill White echoed the sentiment.

Four factors account for the revenue increase:

* A one-time sale of a Public Works facility on Gillette;
* Reimbursement from the Reliant rate case;
* Higher than expected interest earnings;
* $800,000 adjustment in electricity costs.

According to the latest monthly projections, the General Fund will end the fiscal year with a surplus of $2.9 million. This represents a $10.4 million increase in revenues over last month when a $7.5 million shortfall was projected.

Surplus vs. cash reserves

The surplus is a separate item from the approximately $100 million cash reserves, which includes the mandatory $20 million rainy day fund.

“Given the possibility that we’ll continue to experience rising utility costs as well as uncertainty surrounding the holiday shopping period, it would be wise to attempt to maintain this revenue cushion in the coming months,” Parker told council.

In other words, the surplus is “current year net gain/loss” while the reserves are just that. Money in the bank in case something goes awry. Like the city employees accidentally getting a raise. Notice we didn’t this year? Nothing unusual about that. We get them every second or third year, usually in an amount less than the inflation rate for that year, let alone the years we didn’t get a raise. Sort of a “pay cut by neglect.”

Sucks to be us, I guess!