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Political Scene: Bedrick quits post, panel, cites ‘perception’ of conflict

12:05 AM EDT on Monday, April 9, 2007

By Katherine Gregg, Steve Peoples and Elizabeth Gudrais

Journal State House Bureau

He’s gone.

Gerald Bedrick, the onetime insurance man from East Greenwich who became a poster child for a Senate inquiry into the Carcieri administration’s use of a private employment agency to fill hundreds of state jobs, resigned last week from his dual roles as a high-paid consultant to the Department of Administration and the “public” member of the agency’s three-member contract-review committee.

In a April 2 letter to Governor Carcieri, Bedrick wrote: “While I have done a good job and have always felt that I represented the public interest, I am aware that certain members of the General Assembly have alleged that since I am a consultant that does work for the state, there could be a perception in the mind of some members of the public that I might be influenced by my working relationships as a member of the Architectural, Engineering and Consultant Services Selection Committee.

“While this has never happened, and my record would indicate this, I am mindful that often perception is more important than reality. Therefore, I reluctantly resign.”

He suggested his experience might make others “who want to change the way the state does business” less likely to volunteer to serve on state boards and commissions.

Bedrick’s circumstances were not the usual, however.

On the state’s temporary employment payroll since October 2005, Bedrick had what has been described as a $45.94-an-hour job managing the transition to the state’s new financial-accounting system while serving on the committee that screens applicants for millions of dollars in state contracts.

Appointed and kept in this latter role by Carcieri, even after he went to work for the state as a contract employee at a pay rate equivalent to $83,610 a year, Bedrick has in recent months voted to recommend firms for a $200-an-hour State House lobbying contract with the Board of Governors for Higher Education, a $1.5-million Strategic Highway Safety Plan for the Department of Transportation, a three-year advertising and public relations campaign relating to storm water management and a $278,959 contract for an automated driver license testing system. His term expired in January, but he was allowed to continue to serve.

The contract review committee was one of the stabs at reform that came out of the corruption-plagued DiPrete years when, as eventually came to light, contracts, campaign contributions and, in some cases, illegal payoffs were closely linked. Former Gov. Edward D. DiPrete pleaded guilty to racketeering, extortion and bribery and went to prison.

Bedrick did not respond to repeated inquiries over several days after the Senate Committee on Government Oversight began to focus on the administration’s initial use of DataLogic Consulting and its subsequent no-bid award of a $7-million- to $11-million contract last September to the private employment agency Smart Staffing Service, which took its place in supplying him as well as hundreds of others. (He did not participate in that vote.)

Asked at one point whether the governor or any of his top lieutenants ever shared their views on big state contracts with Bedrick, Carcieri spokesman Jeff Neal said: “You asked if the governor or other administration officials influence how Mr. Bedrick votes on the committee. The answer is no. Nobody has ever instructed Mr. Bedrick how to vote on any issue. That includes Governor Carcieri, Director [Beverly] Najarian and [Chief of Staff] Brian Stern.”

But Neal provided a memo suggesting Bedrick deserves a share of the credit for some contract-review committee decisions that saved the state money, including one where the committee overrode a DOA technical-review subcommittee’s recommendation that the state hire Saccoccio & Associates for a project at Rhode Island School for the Deaf over the lower-priced Robinson Green Beretta. Overriding the decision “saved” the state around $280,000, the memo said.

Top officials in the Carcieri administration have hailed the use of such contract employees as a way to fill short-term staffing needs or engage workers for time-limited projects without making them full-time employees entitled to the full roster of health, pension, sick time and vacation benefits.

But high-ranking Democrats — including the House and Senate finance chairmen — have questioned whether the administration has been using Smart Staffing and its predecessor, DataLogic Consulting, to evade job posting and affirmative action requirements, hiring caps and wage restraints in the hiring of hundreds of state-paid workers.

They questioned the potential conflict inherent in Bedrick’s dual roles. And they asked repeatedly what exactly he was hired to do and whether anyone had ever written a job description for him. The answer, from assistant state purchasing director Lorraine A. Hynes: “No, not to my knowledge.”

But a memo delivered to Senate staff after the Senate committee hearings got under way said he was initially hired to “address issues” related to the shift to the new Oracle financial system and more recently to provide “project management expertise” to the internal cost-saving effort dubbed Fiscal Fitness.

The memo said: “Mr. Bedrick’s role participating on the Oracle project going forward is unclear.”

As a parting thought, Bedrick wrote Carcieri: “I urge you to find ways to increase participation by the public in our government and assure that the majority of citizens that support a more effective and efficient government have a voice.”

Sacramental wine: p.s.

We stand corrected.

A Massachusetts businessman took exception to last week’s Political Scene item about sacramental wine.

A General Assembly news release described the difficulty Rhode Island’s churches and synagogues encounter in trying to buy wine for religious services, and said some were forced to order the wine by mail and pay expensive shipping fees. (Rep. John Patrick Shanley Jr., D-South Kingstown, has introduced a bill to create a new class of liquor license that would enable religious-goods stores in Rhode Island to carry sacramental wine without getting a more expensive full-fledged liquor license.)

Bob Egan, owner of Egan Church Supply in Millbury, Mass., wrote to say that his business makes twice-weekly truck runs to deliver sacramental wine and other religious goods to churches in Rhode Island.

“There has been some increase in the delivery fees we have had to charge, due to the enormous fuel increases we all experienced last year,” Egan said in an e-mail. “However … we have worked very hard to help the pastors of all Southeast New England to try to combine orders to avoid small-order delivery fees.”

Egan said customers can avoid delivery fees altogether by visiting his warehouse in Millbury — just 20 minutes’ drive from Woonsocket, he said.

It was Bruton, not Bertie

Political Scene has learned there was a little confusion leading up to last week’s State House visit by former Irish Prime Minister John Bruton.

Bruton, the European Union’s ambassador to the United States since 2004, addressed a special joint session of the General Assembly on Wednesday. But according to the invitations sent to legislators and state leaders before the visit, Bruton wasn’t supposed to come to Rhode Island at all.

“Speaker William J. Murphy [and] President Joseph A. Montalbano cordially invite you to a joint session in honor of Mr. Bertie Ahern,” read the invitations.

For those of you not up on international politics, Ahern is the prime minister of Ireland. Bruton, who actually appeared, is a former prime minister.

So how did the wrong name get on 125 invitations?

“There was a miscommunication between an Assembly staff member and the former prime minister’s staff,” House spokesman Larry Berman said in an e-mail to Political Scene. “An original invitation was distributed to members of the Assembly inviting them to an address by the current prime minister. When this miscommunication was discovered, a second invitation was printed and distributed to members.”

Berman said no outside vendor was used to produce the 8½- by 5½-inch invitations. The mistake cost an estimated $31.25, Berman said, a small number because the Assembly used its own printing shop to reprint the 125 invitations.

The invitation gaffe didn’t seem to dampen the mood on Wednesday.

Bruton chatted with lawmakers in the House Lounge for about an hour at a reception that offered Guinness, among other beverages. And as Bruton spoke to the joint session about peace and religious tolerance, Murphy was all smiles, wearing a bright green necktie.

Slater heads Providence Legislative Caucus

The torch has been passed in the Providence Legislative Caucus.

The group of 13 legislators who represent the capital city recently voted Rep. Thomas C. Slater chairman. Slater, who is in his seventh term at the Assembly, succeeds Rep. John McCauley.

Slater told Political Scene that 9 of the 13 caucus members attended the meeting in which he won the post. All nine voted for Slater, he said. McCauley was not there.

Was there a battle for the chairmanship?

“He probably did want the job, but I got the votes before he did,” Slater said. “It’s a game of who has the votes.”

McCauley did not return a call seeking comment Friday afternoon.

The caucus chairman is charged with organizing regular meetings to make sure everyone is on the same page with city issues and bills that affect Providence. The caucus also needs to communicate with the City Council and city leaders.

“I think communication has been an issue and that’s what the biggest problem was,” Slater said of McCauley’s two-year term as chairman. “When I took over the caucus, somebody handed me 13 [Providence-related] bills and I said ‘What’s this?’ We didn’t meet regularly; we didn’t talk to the council.”

Slater said the caucus will meet for the first time under his leadership next week. He hopes to meet with the City Council soon after.

Among the caucus’priorities is a bill that would ban human trafficking in Rhode Island, legislation aimed at cracking down on brothels in Providence that use women some have characterized as sex slaves.

In House, sworn testimony

It’s an unusual sight in a State House hearing: witnesses testifying under oath.

But that’s what happened last week in a series of hearings chaired by Slater, who heads the subcommittee on human services within the House Finance Committee.

Beginning Monday during a hearing on the Carcieri administration’s Buy RIte initiative to save money by coordinating purchasing by the health and human services departments, Slater began asking each group of witnesses to raise their right hands and tell the truth, the whole truth and nothing but the truth, so help them God.

Slater said he beganwith the hearing on Buy RIte not because he thought it was one in which people were particularly likely to lie. He said he always means to swear people in at hearings he chairs, but had forgotten to do so for the first three months of the legislative session.

“I feel that whenever we have a critical hearing, we should be swearing people in,” Slater said.

Slater said he believes people are less likely to “exaggerate and embellish on the facts” if they take an oath before testifying.

Panel studying insurance costs to hire consultant

As lawmakers look to help their constituents get a handle on skyrocketing home insurance rates in the state’s coastal areas, they are taking a first step: hiring a consultant.

The General Assembly is in negotiations with AIR Worldwide, a firm that specializes in storm modeling and has offices in Boston, San Francisco, London, Munich, Beijing and Hyderabad, India.

The firm will explore ways Rhode Island government can help keep homeowner insurance affordable in the state that has the greatest ratio of coastline to land area. At a recent hearing, homeowners vented about receiving cancellation notices and premium increases by factors of more than 100 percent; some said they live far from the shoreline. The Newport County Board of Realtors reported that 4,500 homeowners’ policies were canceled in the Newport area alone.

The insurance industry attributes the spate of cancellations and rate increases to a confluence of factors including scientists’ predictions of more frequent and more intense storms; widespread underestimation of the amount of potential storm losses; a rise in the price of building materials, meaning claims are costing insurance companies more; and the draining of reinsurance companies’ reserves by claims related to Hurricane Katrina.

A legislative study commission aims to “examine, in detail, Rhode Island’s regulatory system to determine how to gain control of excessive rates” and “consider a model for coastal states to create funds to cover all wind risk in the state, perhaps through a multi-state effort.”

The commission is just beginning its work, but members said the model might include paying taxpayer money into a reserve fund to cover claims and partnering with other states that are unlikely to face damage from a natural disaster at the same time Rhode Island endures such damage — for instance, Oklahoma, where tornados pose the most risk, might be a good partner for Rhode Island, where the main threat is hurricanes.

The commission hopes to hire AIR Worldwide to prepare a report that analyzes the relationship between storm models and insurance underwriting, and compares AIR’s method of estimating risk based on historical data with other models, including one that involves simulating hurricane winds at various locations in Rhode Island.

Marisa White, director of the Assembly’s business office, said the contract will probably include a flat fee for the initial report and a per-hour rate for consultants to assist as the committee continues its work. The parties have not settled on a price yet, but the project description is written specifically for AIR and the Assembly did not solicit bids for the project.

White said the Assembly puts contracts of more than $5,000 out to bid unless they cover goods or services included in the state’s master price agreement, or unless they require specific professional expertise. In the case of the coastal insurance report, lawmakers who sit on the commission said AIR is one of only four companies that do this type of work, and the proximity of the Boston office means AIR staff would be readily accessible.

The company bills itself on its Web site as “the world’s premier risk modeling and technology firm specializing in risks associated with natural and man-made catastrophes, weather and climate.” The site says AIR “pioneered the probabilistic catastrophe modeling technology that revolutionized the way insurers, reinsurers and financial institutions manage their catastrophe risk.”

The legislative budget sets aside $255,000 for consultants this fiscal year. Besides the coastal insurance report, the money will pay for the report on a statewide funding formula for public schools, scheduled for release today. In years past, it has paid for consultants from the gambling industry and experts on redistricting, White said.

The commission — the Special House Commission to Study the Effects Natural Disasters Have on Property Insurance Costs and Requirements in the State of Rhode Island — comprises House members from the South County and East Bay areas. Rep. Paul W. Crowley, D-Newport, is the chairman. Shanley is the vice chairman.

The commission plans to meet again Thursday.

egudrais@projo.com