The gist: Marcus Bruno, former Mayor-President Joel Robideaux’s embattled aide, has landed a job with the state’s division of Alcohol and Tobacco Control.
The gist: Mayor-President Josh Guillory says he will start a nationwide search for a new police chief in the next 30 days and confirmed for the first time plans to eliminate Deputy Chief Reggie Thomas’s position.
The loudest voices A fight for control of the Lafayette Republican Party
Just a week into his first term, Mayor-President Josh Guillory pushed out his chief administrative officer, Beth Guidry. A lack of experience was the official explanation, but according to Guidry, the mayor thought she had the wrong friends.
The gist: Lafayette Police Chief Toby Aguillard formally resigned earlier this week, ending what appeared to be a brewing standoff between the short-tenured chief and his would-be boss, Mayor-President Josh Guillory. The new administration is planning further restructuring of the police department, which could result in the ouster of Deputy Chief Reggie Thomas, according to several sources familiar with the administration’s thinking who spoke on the condition of anonymity.
“We put on the record that we had evidence the fraud and the theft just for the Blanchets was in excess of $2 million, and the defense agreed to that,” Assistant District Attorney Kenny Hebert says.
The gist: After what his office called “repeated attempts to secure critical funding for daily operations,” Sheriff Mark Garber confirmed Tuesday that he is cutting 42 mostly corrections jobs from his workforce of 748. A press release announcing the reduction in personnel included more cuts to diversion programs started and expanded under his predecessor and long held up as successful models of prison reform and reintegration.
The gist: Challenged by the council to be more transparent, Mayor-President Joel Robideaux delivered to the Lafayette Public Utilities Authority potentially damaging comments gathered by the administration during its investigation of payments by LUS to LUS Fiber.
Get caught up, quickly. LUS and LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid over eight years for a power outage monitoring system, was self-reported by Robideaux in July. In a press release distributed Oct. 11, Robideaux announced he was removing LUS and Fiber’s interim directors, claiming the swap was made to “facilitate an internal review on behalf of the Public Service Commission,” and connected the review to the power outage monitoring payments. The PSC denies any involvement and has distanced itself from Robideaux’s attempts to link his efforts to its limited oversight. Robideaux named his chief administrative officer, Lowell Duhon, to oversee LUS, and Kayla Miles Brooks, Fiber’s business administrator, as LUS Fiber’s interim director, replacing Jeff Stewart and Teles Fremin, respectively. LUS’s consulting engineer has deemed Duhon and Brooks unqualified for the posts.
Once closely held and secretive, the review was center stage at a special joint meeting of the council and the LPUA. Lafayette Public Utilities Authority Chairman Bruce Conque requested the meeting after a pointedly challenging email to Robideaux from Councilman Jay Castille, a frequent critic. “I think everyone agrees that if there was a violation of the law, that would be a very serious allegation,” Castille wrote the mayor on Nov. 13. “I think all anyone wants is a ‘comprehensive, complete and honest analysis.’ But the way you have handled this entire matter makes many doubt your sincerity.”
Castille, who declined to comment for this story, had also called the mayor to task for being untruthful about the Public Service Commission’s role in the ongoing review; Robideaux has said, and repeated Tuesday, that Public Service Commissioner Craig Greene asked for a wider inquiry of the relationships between LUS, LCG and Fiber. Greene’s office denies it played any role. The Lafayette Public Utilities Authority, a subcommittee of the council, regulates LUS, and the PSC has limited oversight over LUS and Fiber, ensuring they comply with provisions of the Local Government Fair Competition Act.
Robideaux’s presentation came on the heels of a press conference called abruptly last week by former LUS/LUS Fiber Director Terry Huval, in which Huval defended the power outage monitoring system’s pricing and usefulness.
In his remarks, Robideaux responded to criticism with what may be the most damaging information to date. He released emails and anonymous comments gathered in interviews recorded under attorney-client privilege during the investigation into the power outage payments to LUS Fiber. The complete context of the comments isn’t clear, and Robideaux seemed to attempt to attribute the statements to eight people interviewed, including LUS’s and Fiber’s former interim directors, an LCG accountant, an auditor and two attorneys who work on LUS matters. (You can view his full presentation and comments here.)
“In my opinion, I’ve always thought it was kind of a stretch … as someone who works in the industry, that’s why we are eliminating it, to be honest with you,” said one interviewee. And another: “We need to let it fall off the books because we’re not seeing the justification.”
Huval continues to stand by the POMS decision. “Last week, I explained how we incorporated the beneficial use of technology on the LUS system that resulted in significantly reduced electric outage durations, while still maintaining the lowest rates in the state,” Huval wrote in response to a request for comment. “During the implementation of such technological upgrades, I did not receive any indication by LUS staff or consultants that any of these initiatives were not cost effective. LUS customers are receiving the best service ever because of initiatives such as these.” (View Huval’s presentation here.)
Why this matters: Robideaux presented what may be the most compelling evidence to date that some LUS insiders suspected the power outage monitoring payments were a way to prop the fiber division up at a time it desperately needed cash flow. Should a new PSC audit determine the service was mispriced or unnecessary, the money may have to be paid back to LUS with interest, delivering a financial blow that could jeopardize the future of LUS Fiber. Robideaux is expected to give the LPUA an update by mid-December and complete the review by the end of the year.
Youngsville Mayor Ken Ritter, a Republican, issued an eleventh hour endorsement of Carlee Alm-LaBar, a no party candidate, in Saturday’s runoff for mayor-president. Ritter is the first Lafayette Parish mayor to formally back a campaign.
The gist: Long considered the goose that laid the golden egg, Lafayette Utilities System, along with its sister entity, LUS Fiber, is now mired in political controversy heading into Saturday’s mayoral runoff between Carlee Alm-LaBar and Josh Guillory. Mayor-President Joel Robideaux has floated accusations of unlawful transactions between the systems, initiated leadership changes and launched an internal investigation, all of which have drawn suspicions of political motives.
The gist: Changes to LUS and LUS Fiber leadership, announced suddenly the night before October’s primary, were said by the Robideaux administration to be tied to an ongoing internal review of transactions between the systems that was requested by the Louisiana Public Service Commission. PSC representatives, however, contradict that assertion — saying no such internal review was asked for, and the leadership change is not related to any request from the commission.
Get caught up, quickly. LUS and its sister company LUS Fiber have been under fire for a pair of potential violations of a state law that prohibits government dollars from propping up the municipal telecom. The most recent of the two, $8 million paid over eight years for a power outage monitoring system, was self-reported by Mayor-President Joel Robideaux in July. In a press release distributed Oct. 11, Robideaux announced he was removing LUS and Fiber’s interim directors, claiming the swap was made to “facilitate an internal review on behalf of the Public Service Commission” and linked the review to the power outage monitoring payments. Robideaux named his chief administrative officer, Lowell Duhon, to oversee LUS, and Kayla Miles, Fiber’s business administrator, as LUS Fiber’s interim director, replacing Jeff Stewart and Teles Fremin, respectively.
“Subsequent to the self-reports, the PSC requested that a more in-depth and internally unbiased review of all LUS Fiber inter-agency transactions be performed, necessitating the staff changes,” Robideaux wrote in his October press release, suggesting that the PSC itself had requested the leadership changes or supported the decision.
There is no written record of such requests from the PSC. Requests for management changes “would absolutely be in writing,” commission spokesman Colby Cook says. “We rarely make those kinds of recommendations. It’s a financial audit.”
PSC Executive Secretary Brandon Frey confirms the commission has not asked for an internal review of inter-agency transactions. “There is nothing pending on anything like that,” he says.
To date, the PSC has investigated only one self-reported violation from 2018. Robideaux’s July letter concerning the power outage monitoring system triggered no new review or request from the PSC, according to PSC staff. The last formal correspondence between the administration and the PSC was a June audit report concerning the 2018 discovery of payments from LUS to Fiber for services to sewer lift stations and some electric system components that were never connected. After a comprehensive review of inter-system transactions, the PSC found that besides the $1.7 million in sewer and electric payments paid out over several years, which Fiber reimbursed, the system was in compliance with state law and PSC rules, according to the report.
The June report raised concerns about having a single director run both Fiber and LUS. Longtime Director Terry Huval ran both LUS and LUS Fiber, an arrangement PSC staff wrote “may have weakened the strength of internal controls.” That concern was moot by the time the audit was concluded, as two different interim directors were already in place by the end of 2018.
Robideaux took widespread criticism for a bid to privatize management of LUS. The deal, first revealed by The Current in the spring of 2018, would have sold management rights to private equity firm Bernhard Capital Partners and at one time potentially included Fiber. Huval retired early from a previously announced decision to step down amid the controversy. The episode pitted Huval against his former boss, as the retired director publicly opposed the Bernhard deal. Later that fall, the City-Parish Council and the mayor-president agreed to divide LUS and Fiber into separate divisions. Robideaux appointed Stewart and Fremin to their interim posts, which they held without incident until October’s shakeup.
The self-reports have figured in political campaign materials. The Lafayette Parish Republican Executive Committee, whose Facebook page is run by Robideaux’s political consultant Joe Castille, used these transactions as a wedge issue against Councilman Bruce Conque, who lost his re-election bid to Andy Naquin, and mayor-president candidate Carlee Alm-LaBar.
(Disclosure: Alm-LaBar gave seed money to The Current in 2018; view our list of donors here.)
The administration has yet to officially respond to the June report from the PSC. Within a month of receiving the June audit, however, Robideaux claimed to have found the second potential violation of the act and said he hand-delivered a letter outlining those findings to the PSC, writing to the PSC that LUS may have made illegal payments totaling $8 million to LUS Fiber over an eight-year period. He actually hand-delivered the letter to Public Service Commissioner Craig Greene, when he visited the commissioner to discuss the June report.
“[Commissioner Greene] hasn’t had any more conversations other than when Mayor Robideaux had given us the letter, and we said we’ll get this to our staff. We gave no formal recommendation as to what they should do with [it],” says David Zito, Greene’s chief of staff. “None of the commissioners have approached us, and we have not approached any of the other commissioners about it.”
The legality of cross-subsidization between LUS and Fiber is regularly tested in annual attest audits, and interagency transactions are run through LCG’s finance department. In his letter, Robideaux, an accountant, took issue with the accounting method used to price the cost of power outage monitoring system, saying the approach likely violated state law. An audit conducted by LUS Fiber’s independent auditors in 2012 and a PSC audit for 2011 and 2012 did not take issue with the payment computations, which were based on the annual estimated savings from power outages. That means numerous oversight mechanisms, including Robideaux’s own administration, would have failed to detect any problems.
Robideaux has not asked the PSC to audit that issue, yet he references it as one of two self-reported findings to justify the leadership changes.
“We are committed to providing the most complete and unbiased report possible to the PSC, and the need for fresh sets of eyes is what prompted the naming of new interim directors at LUS and LUS Fiber,” LCG spokeswoman Cydra Wingerter writes in an emailed response to questions about the management changes sent this week. “The outcome of this in-depth, internal review will be formally provided to the PSC, and it is expected that a decision will be made as to whether the findings will be included in the initial self-report or taken up separately.”
Robideaux told commissioners in the July letter that Fiber’s annual attest audit began in May 2019 and would be filed with the commission by August. As of Tuesday, the attest audit had not been turned over to the PSC, its records show.
“There’s nothing pending at the commission involving the July letter,” says the PSC’s Frey. “I don’t think there’s been any request from them to open up an audit.”
The gist: Republic Services’ local general manager is no longer running Lafayette operations, after the garbage contractor came under fire this summer for shoddy service and leaky trucks. For more than a decade, the Arizona-based company has been consolidated government’s trash collector, the beneficiary of a lucrative contract that’s been under intense scrutiny in recent months.
The gist: Acadiana Mall’s new owners appealed the assessment of the Macy’s building and got a big reduction from the tax assessor, but New York-based Namdar Realty did not appeal the value placed on the mall itself — one that has remained exceptionally low over the past decade.