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Editorial Opinion

Undoing the Lockbox

When a state legislative committee, spearheaded by Memphis legislator Ulysses Jones, first proposed amending Tennessee’s Open Meetings Act some weeks ago to permit some unattended private discussions among public officials, there was a hue and cry from points

across the political spectrum. With prosecutions and other publicized misdeeds of officeholders still fresh memories and with polls and other indicators showing the prestige of legislators — local, state, and national — to be at an all-time low, how could Tennesseans be expected to stand for shutting the doors on public scrutiny?

Yet when not-much-push came to not-much-shove, the members of the Shelby County Commission backed the proposed liberalization to the hilt. In an 11-0 vote Monday, commissioners endorsed the idea of amending the state law to permit private discussions among members of city councils, county commissions, school boards, and other public bodies, so long as the number of officials participating fell short of an official quorum.

No commissioner — not one — would carry a brief for the current law, which, as unamended, prohibits private discussions among groups of two or more. (As an illustration of the absurdity of so complete and literal a prohibition, one commissioner was prepared to offer another a ride back to his office after Monday’s meeting was over but then thought to suggest, only half-facetiously, that the two would need to ask a reporter to come along for the ride.) Of the two commissioners who did not vote aye for the amendment proposal, one, Mike Ritz, was absent but had previously voted for it in committee, while the other, James Harvey, merely abstained on the ground that he owed it to his constituents to survey their opinions more completely.

Commissioner Steve Mulroy, who usually finds himself walking a tightrope between the views of his fellow Democrats (for whom he has often served as the decisive vote in 7-6 party-line situations) and those of his mixed district’s constituency at large, spoke convincingly for the amendment, and he was joined on this occasion by two voices which, in wholly disparate mode and manner, normally speak for the commission’s Republicans. After noting that he was “not at all in favor of secret government,” Chairman David Lillard said the current law was an obstacle to the needs of constituents because, among other things, it prevented one commissioner from filling in another on pending issues which the latter may have missed on first hearing. More importantly, said Lillard, the law can actually “sideline … the most effective advocates” for constituents who have petitioned their own representatives for specific forms of relief.

Wyatt Bunker, who sees himself as a conservative’s conservative, agreed. The current law “hinders the process,” he said.

So far, so good. But, as Lillard also noted after Monday’s meeting was over, the law, as amended, might require honing by way of further amendment. “I think there are situations, such as the election of officials to fill vacancies, on which it might be desirable to limit contact,” he said.

Hopefully, that doesn’t mean that the lockbox, once loosened, doesn’t turn into a Pandora’s box of unforeseen consequences.

Categories
News The Fly-By

Fly on the Wall

Kicking Butts

Why are citizens who are old enough to smoke losing their jobs in bars and restaurants? Because of the recent ban on public smoking, bars and restaurants that do allow smoking must now deny access to anyone under 21. That means bar backs, waiters, and hosts who are at least 18 (the legal smoking age in Tennessee) can fire up at home, in the car, on the sidewalk, or anywhere else smoking is permitted. They just aren’t allowed to have their jobs anymore.

Earlier this week, WKRN news of Chattanooga quoted a 20-year-old former bar employee named Rena Doss who complained, “I don’t smoke, and nobody was blowing smoke in my face. … This was a good-paying job for me, and I have bills to pay.” Experts have since suggested that Rena and others like her could relocate to Memphis, where the recently reelected Mayor Willie Herenton has stated that he can do nothing to stop crime, in order to pursue careers in professional thuggery.

The Dismal Life

In a recent column, The Commercial Appeal‘s managing editor Otis Sanford informed CA readers that there is (“sadly”) a “dismal side of Memphis.”

“It’s thrust on us regularly,” Sanford claims, “thanks to a large criminal element and some in the media who believe discord should lead the news. It also comes to us courtesy of a few self-serving politicians, their enablers, and charlatans posing as Internet bloggers.” Although it’s never surprising to hear a representative of mainstream media lumping bloggers into the same category of blight as criminals and cancer, it’s particularly troubling in this case. After all, the CA has repeatedly front-paged negative political stories broken by charlatan bloggers days earlier. Perhaps Sanford, following another dismal trend, no longer subscribes to his own paper.

Categories
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.