Page Sixty-Four

18 JANUARY 2006

A trip down Memory Lane:

"Like the youths who spend all their allowance foolishly then whine for more, the Rochester area needs to learn a solid lesson in money management.  Want a downtown bus terminal-performing arts centre, nattily named 'Renaissance Square'?  Sorry kids; you already spent the cash on an idiotic ferry service.  I suspect Governor George Pataki has taken that stance by vetoing $18 million which was requested for the bus terminal-performing arts centre."

The Native Canadian - 25 October 2004

Or how about this?

"Frankly, as a New Yorker, I'd say Rochester hasn't shown very wise use of the State money it's already received.  When this area sinks state-funded cash in an ill-conceived, ill-executed and half-baked idea like a 'fast ferry' to Toronto, if I were Pataki, I'd tell Rochester to get bent.  "Don't be pissing away your allowance on crap then come whining that you need cash.  You guys got state assistance and blew it; if you hadn't wasted it on some get-rich-quick scheme you wouldn't be needing another cash infusion now.  No dice.  Make do with what you've got."

 

'Punishing' Rochester?  Hardly.  A lesson in fiscal responsibility, maybe.  But turning down a monthly sob story from the Mayor of Rochester isn't the same as turning a deaf ear to the problems the city and area faces.  The $26 million shortfall the city faces would have easily been covered by not building a $16 million ferry terminal or buying a dying ferry business for $40 million.  Is Albany supposed to feel sorry for the blind ambition of some local ferry supporters?"

The Native Canadian - 04 January 2006

Now let's take a look at the following whining and foot-stamping which hit the local media scene today:

 

 

36º | Hi 46º / Lo 28º |
 
Pataki budget snubs city schools here

(January 18, 2006) — Rochester school officials reacted with dismay Tuesday to Gov. George Pataki's budget proposal, which would slightly reduce aid to the City School District while increasing it to the state's other big-city districts.

Pataki trumpeted the fact that he would raise overall public school spending by $634 million, to almost $17 billion. But the fine print shows that many districts would receive less in operating aid than they're getting this year.

"We're the only one of the Big Five school districts to see a decrease," said Rochester school Superintendent Manuel Rivera. "Rochester is No. 1 in the state in terms of childhood poverty. The fact that we are losing aid ... is difficult to understand. I'm very concerned about the preliminary numbers."  (If you're "No. 1 in the state in terms of childhood poverty", then what are you doing buying pleasure craft for the amusement of the disposable income set?)

The City School District would receive $304.8 million in operating aid; $321.2 million when construction assistance is included. The former represents a 4.1 percent decrease from the current year and the latter a 0.3 percent drop.

Rochester schools Superintendent Manuel Rivera (right) reacted with dismay to the budget proposal of Gov. George Pataki (left), which would reduce aid to the Rochester School District while upping aid elsewhere.

In contrast, New York City, Buffalo, Syracuse and Yonkers all would get more total school aid, with Buffalo getting the largest increase — 4.3 percent.

The Legislature has a history of increasing school aid beyond what Pataki proposes, and the 2006-07 budget figures to be no different.

Senate Majority Leader Joseph Bruno, R-Brunswick, Rensselaer County, while praising the overall budget as one of Pataki's best, said, "There's a shortfall in education. That's apparent."

More charter schools

The governor also proposed a big increase in charter schools and a $500-per-child tax credit so students at underperforming schools could go to other schools or get tutoring. There currently is a cap of 100 on the number of charter schools statewide. Pataki wants to raise that number to 250.

That proposal also was met with resistance by public school officials, who traditionally have considered charter schools a drain on their resources.

"The money for charter schools isn't provided by the state, it's provided by the local district," said Jody Siegle, executive director of the Monroe County School Boards Association. "If they are going to increase them, they really need to look at the funding so they're not hurting public education."

Siegle and Jeffrey Crane, superintendent of the West Irondequoit district, also questioned Pataki's statement that "charter schools work."

"I think there are better answers than charter schools," Crane said. "I just don't know if I agree with his comment that all charter schools are working."

Siegle said: "The reports that have come out both statewide and nationally have not been at all conclusive about the performance of charter schools. We have some in this state that are doing well and we have some that are doing terribly and have even needed to be closed."

Rochester has experienced both types. Students at the Genesee Community Charter School and the Eugenio Maria de Hostos Charter School have done well. But two others were closed by the state last year for poor performance.

Tax credit

Pataki's proposed tax credit also was seen by some as a slap at public schools.

"I think it would better serve the children (and) the families if that money went directly to the school district to be used as determined by the local district," Crane said.

Siegle said the tax credit would be fine as long as it goes to the parents of children attending public schools.

"But if it's going to be used to underwrite tuition for a private school, that's a little different," she said. "We really believe the state has an obligation to support the public schools ... to see that there is public education readily available at a high quality. That is their job."

Of Pataki's overall increase in school aid, Siegle said, "I don't want to sound ungrateful. I am appreciative that he is being much more positive than he has been at times in the past.

"Nevertheless, the forces that are driving up costs are substantially outside the control of local boards of education. I'm glad he gave us a lot of money as an initial proposal but we need it."

SRAYAM@DemocratandChronicle.com
GMCLENDN@DemocratandChronicle.com

Includes reporting by Cara Matthews of the Albany bureau.

"We're the only one of the Big Five school districts to see a decrease," said Rochester school Superintendent Manuel Rivera.... In contrast, New York City, Buffalo, Syracuse and Yonkers all would get more total school aid, with Buffalo getting the largest increase — 4.3 percent."

Just a coincidence?  Could be.  Easily justified to the rest of the State?  Sure.  Why should the city of Rochester get a big handout when it can come up with $9.4 million for the ferry from an insurance 'RESERVE' fund?

Once again, the problem started with Dominick Delucia and CATS, not Bill Johnson and the Ferry Board, as Delucia started the ball rolling with a custom $16 million ferry terminal for which the State wired a fat cheque to help out.  Albany keeps track of the flow of cash in and around the State to make sure the voters can't say their area has been slighted.

Rochester can't say it's been slighted when the State has been giving them what they've asked for... regardless of how much of a money-losing proposition the funds have gone to.

Suddenly, the tourism angle doesn't seem as important as it used to be.

WROC 8 Rochester HomepageFBI talked to ferry critic last April
 

1/18/2006 6:00 PM
(Rachel Barnhart, WROC-TV)

Ferry critic Bill Nojay says the FBI called him last April to talk about the ferry project. The former chairman of the Rochester Genesee Regional Transportation Authority played a key role in reviewing the project's finances early on.

"The FBI and the federal investigators were looking for a road map. They were looking for some indication of where there might have been improprieties. They weren't suggesting there was anything wrong. They were not making any allegations," Nojay said.

Nojay says the FBI also asked him about a story News 8 aired March 29, 2005. The story revealed documents showing 14 sister companies of CATS, created jointly or separately by CATS founders and owners Brian Prince and Dominick DeLucia.

The companies are registered in New York, Nevada, Delaware or Nova Scotia. They include Waterfront II, LLC, Ontario Services Company, LLC, Ontario Technology Company, LLC, Ontario Technology Holdings, LLC, Port Holdings, LLC, Canadian American Fast Ferry Transportation Systems, ULC, Maplestar Development Company, LLC, and CATS Port Real Estate, LLC.


It is not unusual for a company to have many affiliates, financial analyst George Conboy of Brighton Securities told us last year, and having a lot of sister companies does not imply any wrongdoing.

But city officials revealed Monday they found documents involving CATS' affiliates that caused alarm. "There were a lot of corporate entities. There were a lot of business dealings. There were records that raised questions to us and we turned them over," said former city attorney Linda Kingsley.

City officials say they contacted authorities last spring.

Nojay also talked with the FBI about something else.

"I received a call from a whistleblower who was a former employee of CATS. He related to me his allegations that CATS was engaged in certain transactions that were improper, which he believed might have been illegal," he said.

One allegation involved the more than $15 million of state and city funds invested in the project. "The state money that was put into the project was done with the assurances it was going to go to the purchase of the ship," said Nojay. "There are a lot of questions about what happened to the state money, whether it was cycled around through Austal, the shipbuilder, and wound up in the pockets of the original owners of CATS."

News 8 Now has also talked to the "whistleblower," Nojay referenced. The former worker related the same allegations, and said he has been contacted by the FBI and State Comptroller, which is also investigating.

Over the past year and a half, CATS officials have maintained they did not get any kickbacks, did not steal any money, and did nothing illegal. No charges have been filed.

The FBI has not confirmed the investigation is taking place.

Nojay has also been interviewed by the Comptroller. The State Attorney General is also investigating.

Rumours and witch-hunts.  Have to admit though, THESE are the guys I'd like to see hung out to dry, not the city of Rochester.  Stupidity isn't illegal... but questionable business practices just might be.

We can only hope.

 

19 JANUARY 2006

Bill sings the blues.

 

 

30º | Hi 46º / Lo 38º |
 
City Hall never hid any ferry facts, figures

(January 19, 2006) — It stretches plausibility that the Democrat and Chronicle Editorial Board, Mayor Duffy and ferry board secretary and finance chair Karen Noble Hanson would claim, variously, that my administration was "not forthcoming" about the city's lease with the Toronto Port Authority, or that the lease was recently "discovered" by the new administration and Ms. Hanson.

As I clearly outlined in a news conference Tuesday, City Hall was open about the lease from the start. As early as 2004 and throughout last year's mayoral campaign, details were available on the city Web site and in a consultant's report, and then approved in June by Ms. Hanson and the ferry board. The Democrat and Chronicle has had minutes of that meeting since August, yet the Editorial Board still claimed the lease was not appropriately disclosed.

There's an old saying: "You can lead a horse to water but you can't make it drink." My administration was busy with the business of this city to the best of our ability; it seems it would be the media and others' responsibility to also carry out their due diligence. For example, it is the responsibility of board members everywhere to study and evaluate proposals before voting; records show the ferry board's executive committee, including Ms. Hanson, received details of the lease proposal several days prior to the vote.

JAMIE GERMANO file photo 2006
The high-speed ferry sits docked at the Port of Rochester at dusk earlier this month. The city now is seeking a buyer for the vessel.

All the details of putting together a ferry deal were fully reported in the media. There were sensitive elements of these negotiations that could not be disclosed at the time, (Define 'sensitive elements') but all of the pertinent details were eventually publicized. These details were scrutinized and approved by the appropriate governing bodies, City Council and the ferry board. There was no unwillingness to cooperate; there was no cover-up.

Your Editorial Board obviously disagrees, and appears to say that it was my responsibility to ensure that every citizen knew these facts existed. There is another axiom germane to this situation: "If a tree in a forest falls, and nobody hears it, does that mean that the tree didn't fall?" Information pointing out the existence of the Toronto terminal lease has been posted on the city Web site since November 2004. We posted this to ensure that anyone wanting to understand every element of the deal could analyze it. Having met and exceeded every obligation for public disclosure, is it now my fault if you and others did not read it?

The Editorial Board also repeated Tuesday that my administration did not disclose the existence of a $1-a-year Rochester terminal lease with Maplestar, a subsidiary of original ferry operator CATS. City Council publicly approved the exact same lease with CATS in August 2001. The reporter who broke that story last May claiming this was a secret deal was in Judge Feldman's courtroom last Feb. 4 when the Maplestar lease was discussed in open court. An official court transcript documents that discussion. Should I be blamed for a "lack of openness" when the Democrat and Chronicle finally "discovers" this lease months later?

At Tuesday's news conference I made it clear that I had no intention of questioning Mayor Duffy's decision to shut down the ferry. He and I looked at the same set of facts, and where I saw vast opportunity, he saw unacceptable risk. He will face many difficult decisions and will have to make tough choices with limited resources. I have been there, and done that. So I will never second-guess him. The ferry was a wonderful project, full of drama, but I have let it go and am prepared to move on.

The Democrat and Chronicle should do likewise. You can support the current mayor without denigrating the former one.

Johnson is Rochester's former mayor.

Bill, without being judge and jury -- and by no means am I suggesting any illegalities went on (that's for the State Comptroller to decide) -- let's not forget a U.S. President who got on the media's podium and declared, "I am not a crook".  As any politician even worth running for dogcatcher knows, when a public official stands in front of the public and says, "I did nothing wrong" the first reaction will be "He/she's done something wrong".  Just don't do it.

"The ferry was a wonderful project, full of drama, but I have let it go and am prepared to move on.  The Democrat and Chronicle should do likewise."

Wrong.  As casual as the former mayor may be about the ferry's demise, simply because HE'S moved on to bigger and better things doesn't mean the public should let bygones be bygones and forget the whole thing.  The public can't.  Let's also not forget the final bill for ex-Mayor Bill's fiasco has yet to be tallied and mailed to every resident of the city of Rochester.  If they can simply 'forget it' and 'move on' without any further cash being siphoned from their wallets, then fine; let's all just forget the whole sordid thing ever happened and 'move on'.

But if the public is expected to pay for whatever costs which aren't covered after the sale of the ferry, then no -- the public CAN'T 'move on' until this mess is finally settled.  They may WANT to, but thanks to the boneheaded stupidity of some Rochester area residents who actually thought Torontonians and Canadians gave a rat's ass about coming to their community, the mess has to be cleaned up and the bills have to be paid.

"You can support the current mayor without denigrating the former one."

OUR MISTAKE, BILL!!  You're right, we should be grateful and thankful for your administration's blind ambition which completely ignored past facts and figures which clearly showed the Canadian market largely ignored the ferry service.  We should be doing cartwheels with joy about the international humiliation and embarrassment brought on by unrealistic expectations and gross assumptions.  Break out the champagne and to hell with something called 'accountability' or 'assigning blame where blame is due'.

You wanna statue or something, Bill?


Not content to let the lesson of the 'fast' ferry sink in, some of the local gnomes are already waxing sentimental about a smaller vessel taking the place of the failed cross-lake route to Toronto.  Like trained seals barking on command, these unfortunate logically-impaired misfits are STILL convinced there's a critical NEED for a maritime link with Toronto... even though there's been absolutely NOTHING which has changed that would motivate a Canadian to venture on down here.

Simpletons that they are, these mental midgets are still focusing on the boat and not the motivation of their intended market.  They just can't seem to grasp the fact that their community doesn't offer enough of a draw to compel enough Canadians to want to sail here in sufficient numbers to support ANY dedicated link to the north shore.

Nobody... NOBODY... has adequately answered the most germane question of the entire concept of a dedicated cross-lake method of transportation from Rochester to Toronto: 

WHY?  Why do it?

A smaller ship means fewer passengers... even less than that of the hulking catamaran which is now rusting at the Port of Rochester.  If a ship THAT size didn't deliver enough tourists to support a damn nut shop, how are any fewer supposed to be a salvation?  The tourist theory of bringing Canadian cash to this side of the lake has just been completely blown to hell and back yet nimrods are already clamouring for a second (third?) go at stimulating the local economy by selling three dozen t-shirts a day.  Incredible.  Simply incredible.

WHY?  Why do it?

Are Rochester area residents too pathetically lazy to drive to Toronto?  They don't bother to go anyway and if the only reason they WOULD go to Toronto is for the boat ride, they really don't care whether they visit Toronto or Cobourg.  Sheer laziness is a poor reason to bring on yet another painful and public humiliation.

WHY does Rochester NEED a dedicated cross-lake link with Toronto?  Toronto sure doesn't need one with Rochester... that much has been fully demonstrated on more than one occasion.

WHY?  Why do it?

That needs to be answered before the next snake-oil salesman breezes into town... somebody had better start coming up with a solid reason WHY.  So far, I haven't heard or read any lucid rationale of WHY there should be a maritime link with Toronto.

All the CATS 'reasons' of WHY there should have been a link have been proven wrong.  There needs to be a completely clean slate with none of the 'fast ferry' hype brought along.  If after using all the lessons learned from the Grand Debacle it's decided to allow a private company to bring in say, a hovercraft, the private company should be required to slap down several million dollars in an escrow account to be used to cover any losses.  Go big or stay at home, boys and girls.  Either you're able to play hardball like a professional... or shut up and have a seat.

We're tired of monkeying around with small town hicks with big town dreams.  CATS was an amateur rookie thinking it was a player in the big leagues.... no more screwing around with hacks and basement inventors.  Local business 'leaders'... unless they've had successful previous experience in the ferry business... need to pipe down and stick to selling drill bits or pasta. To next page

We, the public, have had just about as much 'expert professional advice' as we can afford.