Jim Krone, the new president of Municipal Energy Consulting Group, kindly forwarded to me the most recent report on the streetlight overcharges case that his firm has submitted to the city. Here it is:
July 26, 2007
The Honorable William T. Stortz
Mayor
City of Bristol
111 North Main St.
Bristol, CT 06010
Re: Status Report- Investigation into CL&P’s Streetlight Overcharges for the City of Bristol under DPUC Docket No. 04-01-01
Dear Mayor Stortz:
Here’s a brief update of activities under the Municipal Energy contract with the City of Bristol:
June-- No activity to report. Ken Johnson postponed a meeting scheduled for June 12, 2007 with Public Works and Corporation Counsel representatives due to a death in the family.
July—June 12 meeting rescheduled for July 18: Meeting Summary:
Date: Wednesday July 18, 2007
Place: City Hall- Public Works Conference Rm.
Time: 9:00 am.
Attendees: Mayor William T. Stortz, Paul Strawderman, Atty. Richard Lacey, Jason Morocco, Ken Johnson, Karen Vita.
Ken Johnson outlined meeting agenda and lead discussion of the following:
Ken reviewed summary of May 7 meeting, provided additional background to aid in the group’s understanding of the issue and provided advice on the next steps to be taken in the effort to help the City of Bristol receive a fair and accurate settlement from CL&P for Streetlight Overcharges. Ken explained his personal role in the streetlighting issue dating back 25 years. He worked as the Company’s streetlight program administrator in the 1980’s and conducted the first internal streetlight audit within CL&P in 1985. Upon leaving CL&P in 2002, Ken started Municipal Energy and is uniquely positioned with both the knowledge and experience to take on CL&P on this issue. gave everyone a look into the past to understand why and how he is so knowledgeable, this comes from his years of service to CL&P. ken explained that it was because of Ethics that he stepped away from his position and sought work in another field. It just so happened that the Streetlight Overcharges became a passion, not to make Ken Johnson a wealthy man but to be honest and help municipalities all over the state to receive a fair settlement.
Ken has worked privately for 5 years on the Municipal Energy side. To date at least 12 million has been paid out to several municipalities in the state of Connecticut.
It has been estimated that approximately $500,000 is owed to the city of Bristol. With the cooperation of the City of Bristol it is believed that we can obtain the monies due. As explained there is extensive research and time involved in this process.
It is believed that Bristol is the perfect proxy for Connecticut due to the significant overcharges.
There were concerns that Richard Lacey brought up in regards to the length of time that has lapsed from the date that the data disc was received and future research. Ken again explained that this is a lengthy process but the end result could benefit the city of Bristol tremendously. Mr. Lacey also inquired as to whether this process can be wrapped up by the end of 2007. The answer is not likely, however with the cooperation from contacts at the Public works dept we can make rapid assessments in regards to research.
The topic of the refund check for $86,839.48 that Bristol is in receipt of, and the concern of cashing the check and having CL&P consider that acceptance as a full and final settlement. Municipal Energy Consulting Group has furnished all of its Municipal clients with sufficient tools such as E mail templates for personalization to be forwarded to the appropriate persons such as the DPUC and CL&P. One template in particular was in regards to the individual town not accepting refund check as final settlement. Once received by Ms. Louise Rickard at the DPUC and receipt in the form of a letter or e mail was sent by her department which in some cases, a municipality may have cashed their refund check once that receipt was received.
While the subject of New Founds was discussed three examples were given by Ken Johnson, one of which was Barber Street, pole #1294 which CL&P reports as a new found. However this is not a new found. Mr. Lacey, Mr. Strawderman and Mr. Morrocco all agreed that they would research this in thier records and advise Mr. Johnson of their findings. Another Pole was spoken of, Battisto Road, pole #8269. This is also a situation where CL&P is calling this a new found. The City of Bristol has been double billed for this light. The third example is a flood light in front of Pasquallicios. Bristol is being charged for this light. The question is who requested this light? Mr. lacey volunteered to go take a look at two of the three lights and research their existence.
Ken Explained the New found light report column by column and explained which each represented. Ken also explained the difference in bulbs and wattages and the cost associated with each.
The Public works Department agreed that the New founds will be looked at first.
May 7, 2007; Ken Johnson meeting with the staff members Paul Strawderman, Jason Morrocco, Richard Lacey
At the May 7 meeting, Ken Johnson provided background on the issue and answered questions to help bring staff up to speed. We discussed the need to ensure that the City has notified CL&P by certified letter that the City is not accepting CL&P’s refund offer as full and final settlement; a copy of the same should be forwarded to Municipal Energy for our files. Ken reported that Municipal Energy is currently gathering electronic data from all client towns and checking CL&P’s calculations, including Bristol’s.
Next action steps include: Municipal Energy will advise and assist Paul & Jason in cross-checking the results of CL&P’s 1999 Group Relamp Audit results and 2003 Municipal Streetlight Audit results for Bristol with City files and records. Municipal Energy has culled CL&P’s electronic files and produced a condensed version of the audits containing “changes” only on CD for Paul & Jason. Bristol staff effort will involve comparing the condensed electronic data with City files and records seeking to reconcile errors in four categories: 1) removes, 2) new founds, 3) overbills, and 4) underbills. Ken Johnson provided a copy of Municipal Energy’s New Founds report for Bristol. The team agreed to focus on ‘new founds’ first. Ken Johnson explained to Richard Lacey that CL&P has ‘taken back’ property tax dollars from Bristol in CL&P’s calculation of Bristol’s refund. Richard will look into the validity/legality of this action. Once the investigation phase is complete, Municipal Energy, with staff input, will perform new refund calculations for Bristol.
Pertinent supporting documents provided to city officials have been attached to this letter.
Respectfully submitted,
Kenneth R. Johnson
CC: R. Lacey
P. Strawderman
*******
Contact Steve Collins at scollins@bristolpress.com
12 comments:
This report confirms one aspect of Mr. Johnson's business that has troubled me from the start. He states that he was deeply involved in CL&P's street lighting program for 25 years. Therefore he knew that cities and towns were being overcharged. Suddenly he supposedly got a case of morals and decided to leave to form a company to right this wrong. This is like someone stealing from your house and then asking you for a finders fee to help you get your stuff back. Sure it's legal, but is it moral?
Could it be instead that he saw an opportunity to make money off the illegal overbilling he was a part of for 25 years? I would be more likely to believe that his departure was due to ethical considerations if he had merely donated his knowledge to the cities and towns he helped cheat, such as by becoming a whistleblower.
We are now supposed to believe that he has sold his interest in his company and that will clear up any conflict of interest problems should he become mayor. But from what I can see, he only sold the Bristol account to his partner and is still involved in operating the rest of the company. Not exactly a firewall there, is it?
Here's what the press release about the Municipal Energy deal between Johnson and its current owner said:
James Krone takes over as Principal of Municipal Energy Consulting Group
On Thursday, July 26, 2007, James R. Krone took over the position of principal of Municipal Energy Consulting Group, LLC from Kenneth Johnson. As of today 100% of the membership and economic interest in the LLC are now assigned solely to Krone.
Johnson, who is running for mayor of Bristol this November, no longer has any financial interest in the company’s contract with the city. This agreement precludes any conflict of interest that may have been present if Johnson is to be elected mayor.
OK, so he isn't a principal in the company anymore. People don't walk away from money makers that easily. What is he now? A paid employee, consultant, commissioned representative, etc....
What will he financially gain when Bristol receives their refund?
Marko,
Let's look at one fact, you are a polictical supporter and volunteer for the Democrats.
As far as Johnson's employement at CL&P. Many of us (maybe not you) need to put food on the tables. He MAY have seen some overcharges during his employment there, but I hardly think you should point a finger at him for not "whistle blowing". There probably wasn't anything to "blow a wissle" at anyway, because obviously you have exagerated the scenario to an extreme.
Johnson obviously has the skill, knowledge, education, intelligence, and more importantly temperment to be a great mayor. We as voters are not "supposed to believe" anything. He is a superior choice for the office of mayor.
Mr. Marko,
If you cared so much about the tax payers of Bristol, you'd support eliminating Binding Arbitration in regards to your Teacher Union labor contract.
Mr. Carros - Leaving aside the fact that binding arbitration has nothing to do with the issue at hand - You should be aware that studies show that binding arbitration actually saves taxpayers money in the long run. Public employees gave up the right to strike in return for agreeing to be bound by the binding arbitration system. Perhaps you would like return to the days of teachers strikes, police strikes, etc.
If it's taking Johnson this long to close this issue on the streetlights, how is he going to do with much bigger issues that the City is faced with? I'm not terribly impressed with him yet. He's throwing alot of stones at people without ever being involved in the issues the City is faced with. I also can't give someone that listens to Art Mocabee any kind of credibility. Art has never publicly positioned himself as anything but a critical bystander with no real solutions to offer. He's also very offensive with his letters to the editor.
Mr. Marko,
The idea that binding arbitration saves tax-payers money is a complete dillusion.
Seeing it's illegal for teachers, police firemen, etc to strike your argument is moot.
You accuse Johnson of not "whistle blowing" when you say he should have been. I say that's also a proposterous statement by you. It also is hypocritical of you to be pointing fingers at Johnson for not attempting to save tax payers money by not "whistle blowing" on his employer (for no reason, if I may add) at the same time when you promote and defend binding arbitration for your union vs. the taxpayers of Bristol.
The theme is saving the taxpayers money.
And again just as I am a supporter of Johnson you are a volunteer for the Bristol Democrats as well as member of their Town Committee. If you think you're brave enough to state your name, be honest and tell the entire story. Why not tell of your support for left-wing liberal Democrat Ned Lamont as well?
The street lighting is one that ahs gone on for twenty years,a nd you clowns think that Ken Johnson can fix it in three months.
Please grow up and get a real life.
Ken Johnson has several other municipalities he did businsses with and the work city has been the City of Bristol.
Why do anything with economic development, who would want to come here, and if they did Rosenthal should ask WHY?
Wow Alex, you sure know a lot about me. I didn't know full disclosure of everything about oneself was a requirement to blog here. If that's the case, why not tell the world that you are the treasurer of Bob Merrick's campaign and that Bob is a teacher as well. Is he willing to forego binding arbitration? Is he willing to negotiate his own contracts with the Bristol Board of Ed? Does he ever accept representation from his union reps? Would he be willing to be called in for disciplinary hearings without union representation? I often find that people who hate unions are the first to request help when their own butts are on the line.
By the way, I am proud of being to be a liberal, a Democrat, a member of the Town Committee and a supporter of Ned Lamont.I am also a proud member of the United Chirst of Christ so don't bother planning any great "Revelations" about my church membership either. I belong to the First Congregational Church, which was vandalized this weekend by someone who painted anti-Zoppo slogans on it. Know anything about that?
Allen,
You are way out of line. I expect an apology from you immediately for insinuating that I know anything about any vandalization of your church. Your continued disrespect for me only reflects poorly on yourself.
Quite honestly, I demand an apology.
As far as Merrick goes, why don't you ask him? As far as I know those are State issues anyway. Perhaps you'd like to also apologize for insinuating that I'm a "union hater"? I'll let you know that my great-great grandfather was run down (on Riverside Ave.) for being a union organizer.
Is it alright to then say you're a management hater? Are you a free-enterprise, capitalism hater? Are you a Republican hater?
Well I'm not a Democrat hater, nor am I a union hater. I also have many friends and aquintances that are on the Democrat side of the aisle.
I might not even be a binding arbitration hater. The fact is that it costs tax payers more money as opposed to if there was no binder in collective bargaining. It's like saying the Earth is round.
You stated: "This report confirms one aspect of Mr. Johnson's business that has troubled me from the start". I say that statements alludes that you are a neutral observer. You also brag about your braveness in writing your name (which you actually didn't do).
Then you pretend that you don't know that I know you well (after serving painfully with you on a church committee). You also seem to ignore that I am in the books as a member of the same church that has in my opinion in recent years takes marching orders from a national group that is on the extreme left (the UCC). It is a church which I plan on leaving, reluctantly even after marrying there and having my first child baptized there. I do this for spiritual and ideological reasons that I do not care to air here.
What troubles me about your argument is that it is based on fact-less inuendo from your own mind. I think you need to own up to your lousy remarks about Johnson and me and apologize.
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