Lee Zurik Investigation: Public Belt board appointing own members

(Donny Pearce, FOX 8 News)
(Donny Pearce, FOX 8 News)
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Updated: 8/10/2010 11:19 pm
New Orleans - Last week, the New Orleans Public Belt’s executive committee met behind closed doors to discuss the future of General Manager Jim Bridger. However, half of the six members on that executive committee were not appointed to the Public Belt Board by the organizations picked to do so by law.

“Well it's time to go back and change state law,” said Janet Howard, President of the Bureau of Governmental Research.

Six of the 16 seats on the NOPB Board are appointments made by now defunct organizations.

For example, the law says Public Belt board member and executive committee member William App should have been appointed by the New Orleans Cotton Exchange. However, the organization does not exist anymore.

The Cotton Exchange has two appointments to the Public Belt board, the Contracts and Dealers Exchange has two, and the Louisiana Sugar Exchange has two. These organizations are all defunct.

When asked if she has ever heard of the Louisiana Sugar Exchange, Howard replied that she has “only lived here for twenty years.” The Sugar Exchange has not existed since the mid-1960’s.

“I knew these exchanges existed at some point, but they are not on the modern radar screen,” Howard said.


NOPB board appointing its own members

State Law includes a back-up plan in case these organizations fold. The law reads that if an appointing body ceases to exist, the appointing power will fall into the hands of the Public Belt Railroad Commission. So, the remaining commissioners get to appoint another board member.

“When you have something where the board of the organization public body is appointing its own members, you create a situation where you're inclined for inside baseball,” Howard said.

She added one of the critical ways an organization functions is how the board appointments are made.

Each Commissioner has a term length of 16 years.

Howard was surprised and said she has “never heard of that.” The longest term she was aware of is nine years - for the City Planning Commission.

“Why would you have such a long term,” Howard asked. “It is supposed to be a service by citizens. It's a long time to ask for a commitment. Boards change so the interested don't become entrenched. When you have 16-year terms, clearly you are working against that concept.”


How to change the board make-up

The state legislature would have to vote on any change to the board make-up and term length.

“I think the public is surprised that a pubic board has 16-year terms. That's a little excessive. I would expect some significant reform on the governmental structure of it,” said New Orleans Mayor Mitch Landrieu.

The organization has questionable spending, questionable oversight, and now a questionable board structure that has been in place for over 100 years, and now it may be in need of reform.

“Self perpetuating boards, boards that are isolated, this is the kind of stuff that happens. So anytime you’re restructuring boards for public-private partnerships there has to be accountability and there has to be transparency,” Landrieu said.

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GetYourFacts - 8/11/2010 1:52 PM
A reply to Milton Reese. It sounds like you have first hand knowledge of the commission. With this wealth of knowledge, it is too bad you are the one that is misinformed, not the MCC, WVUE 8 and others. You forgot to say how the NOPBRR made so much money. It took a skilled manager like Jim Bridger to raise the rates to do this, all while pricing the NOPBRR out of their largest customer. I hope the Mayor does not use the NOPBRR to market the city. You see, no railroad in the new orleans area wants to do business with Jim Bridger. - In the past 34 years I wish you would have been informed about the types of managers who manage by intimination(MBI)and the resulting cost to human capital. Recent research on MBI shows that "Once appointed in positions, managers and leaders become more determined to leave a legacy, and so the workplace deteriorates into an unbearable and unaccommodating place where employees are like sheep in a lion’s den. Regrettably, the only thing bad managers and poor leaders leave behind them is a legacy of fear." "Fear is the common denominator of bad managers and poor leaders. They thrive on fear whilst their subordinates suffer from stress, inferiority complexes, indecisiveness and low self-esteem. Bad managers and poor leaders derive pleasure as they see subordinates squirm in fear". - - Milton Reese, get informed, this is the NOPBRR today. --- The show of new buildings and business rail cars are a great thing to the uninformed. But to the informed, what about the effects on the employees of the NOPBRR and the NOPBRR reputation in the business community??? - Milton Reese mentions the very competant board. The question is, if the board and Mr. Bridger are so compentant, why is it costing the tax payers of Louisiana the cost of an over three Months state audit to tell them how to run a state agency within the law and state guidelines??????

DSK00 - 8/11/2010 12:07 PM
More than success is amazing at the NOPB. I would agree the railroad is an asset to the city and, depending on the year, the NOPB has made (or lost) money "for the city." To a large degree the bottomline for NOPB operations remains secondary to the services provided and making New Orleans a preferred transportation hub. The NOPB-operated Huey Long Bridge serves a vital function to the greater area. So, again, the NOPB is both important to the city and state and a source of revenue when properly managed. As you say, Channel 8 should remind viewers, the Belt has very positive aspects and one very bad "solution" would be to conclude it should go away. But, what I hear from the news reports is it's time for overhaul, not destruction. I hope your are not advocating running a public operation in the manner being reported? With the mayor presenting very hard fiscal choices to us, I'd rather not see Mr Bridger having such amazing success with his city credit card, retreating to a luxuary condo in Destin, and being overseen by a self-selecting board operating on a Charter created over 100 years ago that assumes the Sugar and Cotton Boards are vital city operations. Are you saying this is the way we should obtain success? Enron had "success" or so the public was told, right up to the final days.

Milton Reese - 8/11/2010 9:14 AM
We just can't have anything that works in New Orleans, can we!! Opines of the misinformed MCC and BGR are laughable at times. Even (Un)Informed Sources did not get it right. WVUE 8 is hoping to knock WWL off the top in the ratings sweeps and they got most of it wrong. We have had near 10 years of amazing success at NOPBRR, speaking as a taxpayer and informed citizen. Much money has been made for the NOPBRR. The citizens of New Orleans are much safer thanks to Jim Bridger and the foresight of this Board!! In the interest of full disclosure, I have been a supply bid list member working as an employee for national companies over the past 34 years. I have had much more failure than success during this time period. Its a tough place to do business and everything is public bid. Few positives have been reported in this story and negatives were hyped to the stratosphere. There has been little fairness and less balance. WVUE 8 is tearing down one of the few good things still in New Orleans, day by day. I blame the News Director. I hope Mr. Benson has taken note. The NOPBRR is among the greatest assets this city has. The Mayor should use it to market our great city. If WVUE 8, MCC and BGR have their way, we can add NOPBRR to the Jazz Funeral to be held soon for Avondale, Michoud Assembly, Offshore drilling. All in the name of a ratings sweep. How sad. I hope that the NOPBRR Board can make changes after the Legislative Audit based upon what is good for the railroad, not MCC, BGR and WVUE 8. Contrary to the crass reporting, this is a very competant board. Mr. Mayor, please pull us together before we tear ourselves apart. And, please continue the time honored tradition of "leaving politic's out" at the NOPBRR. Milton Reese Louisiana Native Proud to call New Orleans Home
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