Loyal taxpayers deserve $50 million worth of common sense

Even though 2011 isn't over, Clark County Commissioner Larry Brown is in the running for dumbest explanation of the year by a political figure.

He explained he had to vote to give a bus contract to Veolia Transportation, even though it is estimated to be $50 million more than the low-bidder First Transit, because he's a loyal guy. "I'm very loyal," he said June 9. "When a partner accomplishes what they have, I support them. Loyalty was a key factor."

Larry, your loyalty should not cost taxpayers an extra $50 million over seven years.

If you vote that way today, rest assured, you're going to have a lot of explaining to do.

The eight-member Regional Transportation Commission board is scheduled to vote again today on whether to give the roughly $80 million-a-year contract to Veolia, which has held it since 1993, or First Transit. Both are big companies that have been successful operators. No cocky upstarts here.

Yet Brown, County Commissioner Chris Giunchigliani and Las Vegas Councilman Steve Ross rejected the less costly bid from First Transit, Brown out of loyalty, Ross out of doubts, and Giunchigliani because she doesn't support monopolies.

Ross didn't believe First Transit's numbers. Jeremy Aguero of Applied Analysis put the numbers through a reality check and concluded they were credible. Unless Ross has another reason, his concerns should have been answered.

Giunchigliani said at one meeting her concern is that First Transit should have done a better job with diversity. As a major advocate of consolidation of government services, she supports splitting the contract in two.

The pivotal vote is Las Vegas City Councilwoman Lois Tarkanian. She's leaning toward splitting the baby so that both companies get a piece, saying it has worked in other cities such as Denver, Phoenix and Austin. Tarkanian is philosophically opposed to monopolies, citing NV Energy and Republic Services, saying it gives them too much power.

The driving factor should be who can do the job well for the least amount of money.

RTC General Manager Jacob Snow is recommending First Transit. But if that proposal can't get five votes, then the split-baby idea is in play.

Here's the lineup so far. On Veolia's side: RTC Chairman Brown, Giunchigliani and Ross. Because Veolia is likely to prefer half of something rather than nothing, look for them to support a split.

But even with Tarkanian, that's still only four votes. You need five. Who's going to blink?

On First Transit's side: North Las Vegas City Councilman Robert Eliason, Boulder City Mayor Roger Tobler, Henderson Councilwoman Debra March and Mesquite Councilman Kraig Hafen. They all have constituencies that need bus services, and they fear Veolia will reduce services to their areas.

If Tarkanian sided with them, this issue would be resolved today.

Tarkanian is encouraged that she's on the right track because Snow is supportive of a divided system. He presented the idea of splitting the system into two contracts four years ago, and the RTC board at the time rejected it and continued with Veolia.

Before 2002, Veolia held both contracts for the Paratransit system for the disabled. Snow persuaded the board to divide the contracts. He said the service improved and the cost stayed the same after a company, since purchased by First Transit, received the contract. "We think where competition is present, everyone is benefited," said Snow, a diplomat who sees which way the board is leaning.

The meeting will be televised today on Channel 4 starting at 8:45 a.m.

When their votes on Item 41 are discussed, I don't want to hear anything about loyalty. I want to hear about practicality and solid stewardship of the public's money.

If RTC board members reject First Transit's bid, they better be able to explain why in a way that rings true.

Jane Ann Morrison's column appears Monday, Thursday and Saturday. Email her at Jane@reviewjournal.com or call her at (702) 383-0275. She also blogs at lvrj.com/blogs/Morrison