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Politics Politics Feature

Near Relations

When you chair the Memphis City Council, an institution more or less always under the media microscope, you’re going to command a decent share of attention. When your surname is Swearengen, a name that was memorably attached to a judge and to a previous well-known council figure — the late Jim Swearengen and Barbara Swearengen Ware, respectively, both now deceased but still venerated — that’s going to further enhance your public profile.

And when, on top of all that, you have active connections to the city’s power establishment, you’re in good shape to run a political race in Shelby County.

The advantage is magnified to the degree that people don’t know much about your opponent.

Just telling it like it is: City Council member Jamita Swearengen owns such an advantage, even though she’s running against an incumbent for the office of Circuit Court clerk, an obscure but well-paid position.

At a fundraiser in Swearengen’s honor at the new Hein Park home of consultant Steven Reid on Monday, attendees were asked what they knew of her opponent. Most of them didn’t know the person’s name or even the fact that she was indeed the incumbent, a fact that usually favors a candidate. “Is it something Ford?” one normally well-informed person asked. And her unstated meaning was clear: must be one of the unknown candidates (of whom there have been many) who happen to be surnamed Ford, but are not members of the well-connected inner-city power clan of that name, yet hope to profit from the coincidence.

No, the incumbent Circuit Court clerk is named Gipson. Temiika D. Gipson. She has been in office for four years, having defeated in her party primary Del Gill, a long-term rank-and-file Democrat who has ever been the bridesmaid in election races, and then gone on to edge out GOP incumbent Tom Leatherwood in the 2018 “blue wave” general election. Not only does she hope to profit from some name recognition herself, she doubtless anticipates some spillover on behalf of her daughter Arriell Gipson, who is running in the Democratic primary for county clerk against incumbent Wanda Halbert and two others — William Stovall and Mondell Williams.

For the record, there are Republican candidates for both of these races as well — Soheila Kail for Circuit Court clerk and Jeff Jacobs for county clerk.

• Though a band was on hand for the event and there was a diverse, concert-sized crowd, Steve Mulroy and Lee Harris were not really enacting a do-si-do in this shot from last Thursday night’s opening of Mulroy’s headquarters at Highland and Poplar. They were merely exchanging possession of the microphone. But Mulroy, a Democratic candidate for district attorney general, and Harris, who is running for re-election as Shelby County mayor, are mutual supporters and prominent at each other’s events. Julien Harris, the mayor’s son, at right, was an appreciative audience member.

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Politics Politics Feature

It’s a New Year in Politics, Too

As the second week of the New Year began, the aura of the holidays finally began to fade, and politics per se moved into high gear, locally, statewide, and nationally.

In Memphis, the city council stumbled over an early deadline that left a majority of applicants ineligible for a council vacancy, including a putative favorite, then recovered its balance with a fresh interpretation of the city charter by attorney Allan Wade that gave all seven hopefuls more time to complete their petitions.

In Nashville, the 2015 General Assembly convened to take on such key issues as health care, educational standards, changes in taxation, and legislation designed to exploit the constitutional changes effected by the state’s voters in the November 2014 election. In the cases of educational standards and “Insure Tennessee,” Governor Bill Haslam‘s proposal for Medicaid expansion, the trick will be to back into the essential structures of Common Core and the Affordable Care Act (ACA), respectively, with improvised Tennessee-specific substitutes.

Nationally, Tennessee’s two Republican U.S. Senators, Lamar Alexander and Bob Corker, attained new levels of influence as a consequence of the GOP’s capturing a majority in the Senate. Alexander became chairman of the Committee on Health, Education, Labor, and Pensions, and Corker ascended to the chairmanship of the Foreign Relations Committee.

Alexander, who is behind legislation to revise the Bush-era “No Child Left Behind” act, is widely regarded as a possible liaison between Republicans and Democrats in the highly fractionated Senate. Corker indicated, in a conference call with Tennessee reporters last week, that he intends to bring a new activist focus to what he regards as a drift in the Obama administration’s foreign policy. For that, he has been touted by columnist George Will as potentially “the senator who matters most in 2015,” though Corker has drawn more attention of late for his proposals to raise the federal gasoline tax.             

• The city council imbroglio and subsequent fix stemmed from the revelation late last week that only former Councilmember Barbara Swearengen Holt Ware and local Democratic Party Chairman Bryan Carson had met what appeared to be the council’s deadline for filing a petition bearing 25 valid signatures of voters in District 7.

That would have meant that five others — including former interim Councilman Berlin Boyd, regarded in some circles as the favorite — could not vie for the right to succeed Lee Harris, now a state senator, in the vacated District 7 seat. Most of the five, including Boyd, were credited with 23 or 24 valid signatures — one or two short of the total needed — though all five had met the filing deadline of noon, last Thursday.

The situation was repaired with a hastily issued opinion from council attorney Allan Wade, who interpreted the city charter as giving additional flexibility on the deadline for submitting valid voter signatures. The new deadline was established by Wade as being Thursday, January 15th — a date that would seem to give the other candidates enough leeway to qualify.

Of the five, Boyd and Curtis Byrd Jr. had already submitted 23 signatures deemed valid by the Shelby County Election Commission (whose chairman, Robert Meyers, had noted that it was the council, not the commission, which had applied the signature requirement for regular elections to the instance of filling vacancies). Audrey Jones and David Pool had 24, and Charles Leslie had 15.

The council will choose a successor to Harris from among the ultimately eligible candidates next Tuesday, January 20th.

• At a farewell dinner last week for Harris, who was recently elected by his party colleagues in the Senate to be Democratic leader there, the new state senator got off a memorable quip: “Within this month, I’ll be drawing three government checks — from the city council, from the state Senate, and from the University of Memphis Law School. That proves I’m a Democrat!”

• The council does not lack for quipsters. Councilman Kemp Conrad, who was the host for a massively well-attended holiday party over the break, responded to someone’s suggestion that he might consult city planning czar Robert Lipscomb for help in building a parking garage to accommodate excess traffic. “A TDZ!” Conrad proposed.

• It would appear that the forthcoming session of the General Assembly in Nashville will not lack for controversy. The formal convening of the legislature, at noon on Tuesday, was preceded by a 10 a.m. “Women’s March on Nashville,” whose participants included another new state senator from Memphis, former Tennessee Regulatory Authority member Sara Kyle, who was elected in November to succeed her husband, Jim Kyle, now a Shelby County chancellor.

The rally was called to address several matters, including health, wage, and poverty issues, but a central concern of it was to counter a proliferation of bills in the legislature to impose new restrictions on abortion in the wake of the narrow passage of Amendment 1 by state voters in November.

Tennessee Right to Life, an organization that supports the proposed restrictions, indicated in advance that it had plans for a counter-demonstration.

Besides the abortion measures, other expected controversies include a renewed fight over proposed Common Core standards and efforts by several Republicans, including state Senator Brian Kelsey of Germantown, to abolish the Hall Income Tax in the face of resistance from Governor Haslam, who considers the potential loss to state revenues to be prohibitive.

But the major battle will take place in a session within the session. Haslam has called a special session, to begin on February 2nd, dealing with his “Insure Tennessee” proposal for accepting Medicaid expansion funds under the Affordable Care Act (aka Obamacare).

The governor’s plan, which apparently is assured of a waiver from the U.S. Department of Health and Human Services, provides for a two-track structure in which persons eligible under poverty-level guidelines could either accept vouchers to purchase private health insurance plans or come under TennCare, the state’s version of Medicaid, through acceptance of modest co-pays and premiums.

Funding could amount to as much as $2 billion annually, with the federal government absorbing the full costs for two years and 90 percent of them after that period. The state Hospital Association, which has been lobbying tirelessly for the Medicaid expansion funds, has indicated it would assist with the remaining financial obligation after the two-year period.

Haslam has made a special appeal to the General Assembly’s Democratic minority to help him pass enabling legislation for Insure Tennessee. A bill spearheaded by Kelsey and other opponents of Medicaid expansion to require legislative approval of any administration plan under the ACA was passed in the last General Assembly. And, though Senate Speaker Ron Ramsey has expressed a degree of open-mindedness, Senate Majority Leader Mark Norris of Collierville and several other GOP members seem reluctant to endorse Insure Tennessee.

The sentiment of six GOP legislators from Shelby County who addressed the Republican Women of Purpose group at Southwind TPC last week varied from lukewarm to defiantly opposed to the governor’s plan.

State Representative Curry Todd prophesied “a lot of blood-letting” in the special session regarding the plan; Kelsey insisted Republicans needed to “shrink the size of government, not … expand the size of government,” and cast doubt as to whether the federal government would or the state Hospital Association could pay its pledged share in two years’ time. State Representative Jim Coley lamented the plan’s “dependence on the federal government” and said he “hope[d] to persuade the governor this is not the most appropriate plan.”

State Representative Steve McManus said it might not be so easy to opt out of the plan after two years as Haslam suggests. He contends that the U.S. Department of Health and Human Services might withhold Medicaid funds entirely as retribution. “It’s like Hotel California,” he said, meaning that once you check into the plan, you can never leave.

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News

New Officers: Geography v. Competency?

Sure, the mayor’s Clash-like dilemma, and the resulting on-again, off-again mayor’s race, has dominated the news, but other things are still happening.

For instance … the City Council continued its more than year-long struggle Tuesday to employ a full complement of police officers.

Earlier this year, the job of hiring police officers was transferred from the Memphis Police Department to the city’s Human Resources division. The City Council also voted in a resolution that would allow officers to live 20 miles outside the Shelby County line but those officers would have to pay a $1,400 fee.

The Council then said that officers who live inside the city limits should get preference for the positions, which brings it to its current dilemma.

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News

Council Hears New Memphis City Pool Regulations

In response to the two drowning deaths that occurred the first day the city pools were open, City Council members heard about new pool regulations during Tuesday’s parks committee meeting.

The new regulations include a way for lifeguards to easily identify which swimmers are allowed to be in the deep end and mandate that someone over 18 years old accompanies children 12 and under and shorter than 4 feet tall to the pool.

“They aren’t required to have a parent with them. It’s an adult, 18 and older,” said parks director Cindy Buchanan. “It doesn’t have to be their parent or guardian, but it needs to be someone responsible.”

Several council members worried that requiring children to be accompanied by an adult would effectively discourage people from using city pools.

Council member Barbara Swearengen Ware wanted to know if the adult had to accompany the child to the pool or in the water.

“You ask me to take my child, that’s one thing. You ask me to take them to the pool, get undressed, and get in the water with them, that’s another thing,” Ware said.

She added, “I understand you’re trying to avoid disaster, but some of this I think was done to discourage people from either going to or sending their children to the pool.”

Buchanan said those with younger children should consider being in the water with their kids.

“If they’re three-, four- or five-years-old, and they’re in the pool and you’re on the deck, you’re not really supervising,” she said. “Our lifeguards are trained in life saving; they’re not trained in babysitting.”

Under the new regulations, swimmers will also have to pass a test before they can go into the deep end.

— Mary Cashiola

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News

Memphis NetWorx: Confusion Still Reigns

Tuesday morning, Councilwoman Barbara Swearengen-Ware offered a resolution (unanimously passed) asking the Tennessee Regulatory Authority not to approve the sale of Memphis Networx, MLGW’s $28-million telecom disaster. The sale is, “premature and not in the public’s interest,” she said.

On Thursday afternoon, as she solicited votes in front of the Greenlaw Community Center, Ware admitted that she didn’t fully understand everything that has transpired regarding Networx’ $11.5-million sale to Communication Infrastructure Investments (CII), a heavily financed holding company based in Boulder, Colorado.

“I’ve never heard of them,” Ware said, when asked what she knew about Zayo Bandwith, a Denver/Louisville-based commercial bandwith company founded by a group of telecom executives including CII founders Dan Caruso and John Scarano. Zayo has recently issued a series of press releases touting its recent acquisition of Memphis Networx.

Earlier this summer, Scarano appeared bewildered when councilwoman Carol Chumney asked if his company was willing to discuss forming a partnership with the city of Memphis. After a few one-liners about never having conducted business in public, he allowed that, if Memphis was ready to take on the financial risks of a venture-capital firm, maybe they could talk.

Chumney looked silly, and a portion of the audience — the middle-aged white guys in suits portion — chuckled at the blond crusader’s naivete. Didn’t she know the city had dragged the private investors into the partnership then bailed when Networx needed more dough? Couldn’t she understand that business is business no matter who the partners are? And it’s not like CII — a company created to manage risk — was a commercial bandwith company like the newly minted Zayo.

Ware says she’s “offended” that CII refuses to cooperate with the City Council by answering questions pertaining to the management and private ownership of Memphis Networx prior to the company’s sale.

Unquestionably, the sale of Networx to CII was a deliberate and successful end-run around the City Council, but the council couldn’t enforce transparency even when MLGW was the majority investor in Networx, so it’s unlikely to gin up any leverage at this late date. And it’s hard to know if Ware’s resolution was anything more than political theatrics on an election eve. At best, it’s an idea that has arrived years late and millions of dollars short.

Zayo is heavily capitalized, with a quarter-billion in venture capital and the full attention of industry analysts, who are beginning to cite Zayo’s immense capitalization as further proof that the great telecom revival has arrived. And Zayo’s “we-got-it-come-and-get-it” attitude suggests that attorneys will be unleashed if any roadblocks are thrown up by the council or the TRA. The company’s press materials state that while some of the company’s fiber acquisitions are still pending regulatory approval, Networx is owned outright by Zayo.

It’s a big pill to swallow, but Networx is probably gone. And all suggestions of a public fleecing aside, if there wasn’t a question of partial public ownership, the company’s sale would have been covered in its entirety in a two-inch column on page three of The Commercial Appeal‘s business section. It would be over and forgotten by now because, all value judgments aside, in business these things happen every day.

When asked if a bidding process that even MLGW’s board of governors described as “flawed” could be considered relative to approving the sale of Memphis Networx, a TRA spokesperson was vague to the point of being unquotable.

And what would happen if Networx’ sale to CII/Zayo was somehow reversed? Even in the midst of what appears to be a telecom comeback, its unlikely that the city will find a buyer actually willing to fork out more money for some holding company’s sloppy seconds.

And if Memphis decided to go it alone in the telecom biz, ratepayers and/or taxpayers would be called on once again to pony up millions (if not tens of millions) to effectively reboot the entire system and get new and necessary building projects underway.

Two weeks prior to his third-place finish in Memphis’ mayoral race, former MLGW president Herman Morris admitted he was too ambitious in his decision to create Memphis Networx as a public/private partnership.

“It’s not that it can’t work,” he said. “But it didn’t work here.”

Even with a new City Council on the horizon, there’s still no reason to believe that it can work here. If Networx executives and private investors have been secretive, our civic leaders have shown a bizarre and counterproductive unwillingness to understand the telecom industry they waded into. Now, like an orphaned baby, they curl up next to the sock monkey of their resolutions, unable to understand that they are alone and adrift, with no easy excuses or answers.

Should the council continue to seek closure and gain a better understanding of what went wrong with Memphis Networx? Absolutely. And an investigation into MLGW might be a good place to start. But its probably delusional to think that reclaiming Memphis Networx would be anything short of disastrous. The only thing dumber than starting the telecom was selling it. Taking it back would be a trifecta of what the insane Captain Queeg called geometric logic.

On Tuesday, City Council attorney Allan Wade pointed out that Networx owes the City nearly $500,000 in unpaid fees. That bill should probably be sent, not to Networx or CII but to Zayo, along with a note asking about leveraging the old debt against a tiny piece of the action.

— Chris Davis

Read more about Networx.