Wednesday, October 28, 2009

Parks and Recreation contracts bypassed Council, went to friends of Fenty

Last Friday, District Attorney General Peter Nickles made an unexpected statement. He said that the DC Housing Authority must send any contracts over $1 million to the D.C. Council for approval. This came on the heels of the news that Mayor Fenty had directed a dozen parks and recreation contracts, totaling $82 million, to DCHA. The Housing Authority then awarded these contracts to firms with connections to Fenty.

It was surprising to hear Nickles purposefully make a statement that was not in the best political interest of Fenty. Previously, Nickles had fallen into the role of de facto spokesman for the Fenty administration, though he often puts his foot in his own mouth. The initial speculation was that Nickles and Fenty were trying to pin the blame on DCHA, which is technically an independent agency. Recall that just last month, DCHA executive director Michael Kelly resigned his post. Rumor had it that Kelly felt the heat from Fenty, and that the DCHA board had been stacked with Fenty allies. A search is underway for Kelly's replacement, but odds are the spot will go to someone in the Fenty administration.

The contracts in question were for the construction of ball fields, parks, and recreation centers. Banneker Ventures, owned by Omar Karim was named the construction manager for all of the projects. Karim is a former fraternity brother of Mayor Fenty. RBK Landscaping and Construction was also among the firms awarded contracts. RBK is owned by Fenty's friend Keith Lomax. You might remember that name from earlier this year, Fenty was in hot water for allowing Lomax to drive his city-owned SUV.

The revelation that $82 million in parks and recreation contracts bypassed Council approval, along with the Ximena Hartsock saga proved to be a political tipping point. Since more than one Councilmember may be considering candidacy for mayor, it's no surprise the battle lines are being drawn. When Councilmember Mary Cheh (D-Ward 3) accused the Fenty administration of acting lawlessly, it's safe to assume she was talking about more than just the Harstock employment extension.

Coming back to his senses, or at least being reigned in by Fenty, Nickles began backpedaling. He changed his tune, and his legal opinion, stating that his comments on Friday were not meant to be applied retroactively. While it was technically against the law for these contracts to bypass the Council, his decision would only apply to future contracts.

The Council is now mulling their options, even contemplating a long-threatened lawsuit against the administration. A group of Councilmembers will be holding a meeting this Friday to discuss the matter, and have asked that the City Administrator Neil Albert and Chief Financial Officer Natwar Ghandi appear to discuss the procurement process, and how contracts were funneled through DCHA.

There aren't many good options on the table here, though the whole thing could prove to be a big mess for Fenty. It depends on how far the Council is willing to take this, and if the matter ends up in court. One possibility is that the contracts be rendered void, because they were drawn up in violation of the law. The other option is for the Council to approve the contracts retroactively. It seems unlikely that the Council would do so.

What will happen? Well, there are a lot of variables at play here. The Council is also pondering what to do about Ximena Hartsock. Council Chair Vincent Gray (D) held a closed-door meeting with other Councilmembers to discuss the matter. The outcome was a decision to send an "envoy" of sorts to Fenty to discuss the matter. Four Councilmembers, two in favor of Hartsock and two opposed, will meet with Fenty this week.

If Fenty and Nickles play hardball on the Hartsock matter, it's easy to see the contracts battle getting as drawn-out as humanly possible. In any event, the whole matter of Fenty cronies getting under-the-table contracts stinks. If Fenty is to face a serious opponent next year, this will be an issue. If that opponent currently serves on the Council, he will have to make a move soon.

It's completely possible that Fenty will compromise regarding Hartsock (perhaps naming a successor to take office very quickly), in exchange for the Council's retroactive approval of the the DCHA contracts. If this does happen, and there is no vocal protest, then I would not expect to see anyone on the Council run for mayor.

by Dave Stroup, filed under City Hall at 8:00AM

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