Council weighs ban on 'pay-to-play'
Proposed ordinance would prohibit political donations from firms wanting no-bid contracts

The Detroit News
Tuesday, June 23, 2009
by Darren A. Nichols

Detroit -- After a dizzying year of scandal and corruption allegations, the City Council is taking steps some members say will end the "pay-to-play" culture at City Hall.

An ordinance drafted by Councilwoman JoAnn Watson would prohibit political contributions from companies seeking no-bid contracts of more than $25,000. It's modeled after a similar law in New Jersey.

"Under the circumstances of what everyone is going through right now, every protection for the city (and) our citizens is necessary," said Alberta Tinsley-Talabi, who called for the ordinance to be reviewed by the Ethics Board.

The proposal comes amid an ongoing FBI investigation into allegations that Synagro Technologies Inc. officials bribed city officials, wined and dined them and used private jets to secure a $1.2 billion sludge-hauling contract in 2007.

But while many applaud the sentiments behind the ordinance, some officials question its legality and effectiveness.

"It is a good idea, but the problem is you have to be careful in not going too far," said Peter Henning, a Wayne State University law professor. "You have to be careful not to go too far or you'll have it declared unconstitutional, and it doesn't do anyone any good. This is one of those processes that isn't measured in days or months. It's always a slow process."

Detroit's culture of pay-to-play practices in City Hall has been under the spotlight since a federal investigation was revealed last year. Since then:

• Alabama banker Donald V. Watkins claimed then-city treasurer Jeff Beasley pressured him to donate $100,000 to then-Detroit Mayor Kwame Kilpatrick's legal fund in exchange for a $15 million pension investment in his now-failed airline.
• Two officials with ties to Synagro -- local partner Rayford Jackson and James Rosendall, a former vice president based in Grand Rapids -- pleaded guilty to conspiracy to bribery. The City Council approved the sludge deal 5-4 after at least one member switched her vote. A handful of council members have been contacted by the FBI, but none has been charged.
• A strip club owner has accused Sam Riddle, a onetime aide to Councilwoman Monica Conyers, of seeking $25,000 to allow the establishment to open. Riddle denies the accusations. Conyers also faces claims of taking jewelry valued at $40,000 from a jewelry store whose owner wanted the city to ease restrictions that he said would make his business more difficult. Conyers has declined to comment.
• Ex-Cobo Center directors Lou Pavledes and Glenn Blanton pleaded guilty to felonies and admitted accepting bribes from contractor Karl Kado.

The proposed ordinance calls for limits on political contributions or in-kind donations to political candidates a year before a pending contract. It would keep third parties, family members and political action committees from making contributions.

Companies or contractors who break the ordinance would face a four-year ban from seeking a no-bid contract.

Officials with the city's law department requested three weeks to review the ordinance. They expressed concern that the ordinance is not expansive enough because it only deals with no-bid contracts, and cited potential conflicts with state campaign finance laws.

"Upon review, it would appear it does not have enough expansiveness that would be desired in order to really address the contracts that are coming in. It would not address the vast majority of the contracts that are approved by Detroit," said Tonja Long of the city's law department.

Councilwoman Sheila Cockrel said more should be done to come up with a law that creates a framework to root out corruption.

"We shouldn't rush to judgment and just pass anything," said Cockrel, who also wants city lobbyists to be registered so officials know the people who are doing city business. "We need to take the time and do the due diligence and come up with a structure that maximizes transparency, accountability and deals with the perception of pay to play."