A consortium of private firms has pulled out of talks with New Orleans officials for a "smart city" broadband project, amid growing scrutiny from the City Council concerning links between the companies, a consulting firm and two city officials involved in the bid process.
The Smart+Connected NOLA partnership said Monday that it will no longer pursue an agreement with the city more than nine months after it won the right to negotiate a contract.
Late Monday, Mayor LaToya Cantrell's administration said that it would be issuing a fresh solicitation for a "smart city" project.
The Mayor's Office originally intended to sign a 15-year agreement with the consortium, which includes Qualcomm, an investment firm cofounded by Magic Johnson called JLC Infrastructure and other companies. The plan called for internet-connected city infrastructure like street lights and expanded internet access for low-income residents.
Yet questions arose over the close ties between a consulting firm that advised the city during the solicitation process and the contractors who were angling for a deal. Critics also said the proposed deal with the private consortium lacked details.
Adding to the concerns, the Cantrell administration acknowledged last week that two city officials who played key roles in writing and awarding the smart city solicitation had provided "pro bono" advice to Qualcomm on a smart city project in Los Angeles through a private company they cofounded.
The City Council is set to hold a high-stakes public hearing Wednesday that will probe those links. The director of the Mayor's Office of Utilities, Jonathan Rhodes, has been subpoenaed to testify.
Only two weeks ago, Rhodes sent the City Council a letter stating that the city would enter into a one-year contract with the Smart+Connected consortium to pilot “smart city” technologies, and emails show the partners were sent a draft contract earlier this month.
Johnson, the basketball great, even pitched the public on the benefits of a contract in a series of public appearances in New Orleans earlier this month. A multi-year deal would have required City Council approval. He told the council to back the plan.
“We could have taken our check anywhere, because a lot of cities want this,” said Johnson. “There’s no magic without the City Council.”
However, in a statement Monday, JLC Infrastructure's managing director, Andrew Kim, denied that the project had advanced to the point of contract negotiations. He acknowledged that there had been discussions about "developing a self-sustaining budget-neutral funding model."
Kim said the group — which was purpose-built for the New Orleans smart city project — would cooperate with the City Council probe.
"Regretfully, due to significant uncertainty surrounding the future of the project, the SC Consortium is unable to continue to pursue the project under these circumstances," the statement issued by Kim said. "To allow the city to freely pursue the project or another preferred alternative, we believe it is in the best interest of all parties for the SC Consortium to withdraw from the project."
The consortium rejected the idea that the contract was steered its way.
City Council President Helena Moreno, who's been a skeptic of the smart city deal, said her investigation would continue. On Monday, she sent Rhodes a letter asking for additional documents ahead of the Wednesday hearing that detail his private company Verge Internet's connections with Qualcomm, as well as his travel records.
"We must ensure that a contract award of this magnitude was not rigged and that there was not any quid pro quo. The people of this city need and deserve accountability, fairness and transparency when it comes to city contracting," Moreno said in a statement.
The consortium's departure appears to doom the current version of the smart city plan, although Cantrell administration said it will issue another solicitation. The city cited the dire need for internet access among Black schoolchildren.
"We are deeply disappointed by SCNOLA’s decision to withdraw from consideration. Given the contentious atmosphere that’s been created around the issue, it’s hardly a surprise. This is a loss for kids that deserved better of us as their city’s leaders," said Melissa Newell, a city spokesperson. "The need is still there. We welcome anyone with a solution to work with us."
---
Autor(en)/Author(s): Matt Sledge
Quelle/Source: Nola, 25.04.2022
Bitte besuchen Sie/Please visit:
