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Gov. Rick Scott should better explain his post-Irma price gouging | Editorial

After Hurricane Irma, Gov. Rick Scott created chaos in the marketplace, delayed debris pick-up across the state and cost taxpayers as much as $30 million more than they otherwise would have paid because of emergency debris pick-up contracts he awarded.
Taimy Alvarez / Sun Sentinel
After Hurricane Irma, Gov. Rick Scott created chaos in the marketplace, delayed debris pick-up across the state and cost taxpayers as much as $30 million more than they otherwise would have paid because of emergency debris pick-up contracts he awarded.
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As Hurricane Irma approached last September, Gov. Rick Scott offered constant updates on the shifting storm and warned, over and over, against price gouging.

Apparently, Scott failed to follow his own warning.

Instead, rather than rely on debris pick-up contracts negotiated before the storm, CBS4 News’ Jim DeFede reports the governor awarded emergency oversized contracts in the Keys — creating chaos in the marketplace, delaying debris pick-up across the state and costing taxpayers as much as $30 million more than they otherwise would have paid.

One of the companies selected had no previous emergency debris removal experience, DeFede reported, while more qualified firms were prevented from even submitting bids.

It appears Scott’s action was legal. It just doesn’t make sense.

And because of the outsized rates he offered, the governor caused costs elsewhere to balloon. Worse, companies began refusing to honor their pre-negotiated contracts with other cities and counties because their subcontractors were leaving for better pay in the Keys and elsewhere.

The Project on Government Oversight in Washington is one of the few credible, bipartisan watchdog groups. A representative told reporter DeFede that Scott “subjected state and federal taxpayers to millions of dollars of wasteful spending. This is a rookie mistake made by a state that shouldn’t be making rookie mistakes.”

Before the storm, it appeared everything was in place for a coordinated response. Governments in the Keys — like those in Broward and Palm Beach Counties — had signed debris removal contracts at negotiated prices. The state had companies with contracts to clear U.S. 1. Their crews were on the Monroe-Miami-Dade line, waiting for a call.

The call never came. Two days after Irma hit, the state instead invited another set of companies to bid on an emergency contract by the next morning. The contract also would cover a much larger area, making it more lucrative.

By the next afternoon, the Scott administration had chosen MCM and Community Asphalt. DeFede reported that MCM’s rates were among the highest in the state.

Examples:

** MCM charged $913 per mile for sweeping curbs and gutters. The companies with existing contracts would have charged between $123 and $12.

** MCM charged $77.50 per cubic yard to haul rock and sand. The others had rates of no more than $15.95.

** MCM charged $969 to remove a washing machine, dryer or stove. The existing companies would have charged no more than $75 and as little as $48.15.

Predictably, Scott has not answered questions directly about the emergency contracts. Predictably, what the governor’s people say in his defense doesn’t ring true.

The governor’s office said, “We want to be clear. Emergency crews were brought in to supplement ongoing work because the local government requested (the Florida Department of Transportation’s) assistance to quickly solve this issue so families could return home.”

According to Scott’s people, the request came from Monroe County Emergency Management Director Martin Senterfitt. But in a deposition obtained by CBS4News, Senterfitt said, “I did not make a request.” Senterfitt said the Florida Department of Transportation offered to send extra help. He said he had no idea the agency planned to issue emergency contracts.

Two weeks after the storm, Monroe County Mayor George Neuent complained about the governor’s meddling. “We don’t need these other guys helping us.” He added, “But if you talk about price gouging, based upon the contract that we have, the governor was actually doing the price gouging.” Why did the governor do this?

At this point, we can find no connection between Scott and either MCM or Community Asphalt. We will note, though, that the founder of Ashbritt Environmental, one of the debris removal firms the Keys had under contract, is Randy Perkins. He ran as a Democrat in 2016 against U.S. Rep. Brian Mast, who represents northern Palm Beach County and the Treasure Coast.

Scott’s office responded that Florida Attorney General Pam Bondi is investigating Ashbritt for price gouging, though that investigation was not underway at the time the contracts were awarded. After Irma, Ashbritt did ask several cities to pay more than their contracted rates, saying their crews had left to make more money elsewhere. Perkins later dropped the request.

For all of Scott’s media presence before and after Irma, his hurricane response record is spotty.

Before the storm, the governor gave nursing home operators his personal cell phone number to call in case they needed quick action. Actually, callers got his voicemail. That includes staffers from the Rehabilitation Center at Hollywood Hills, where 12 people died in the heat that descended after the power went out. For such a big state, clearly a better emergency response process is needed than “call my cellphone.”

And in October, the Department of Children and Families was unprepared to handle the demand for post-Irma emergency food vouchers, leaving thousands of applicants to wait hours in the hot sun on multiple days. Clearly, the state needs a better process for helping the poor in the aftermath of a disaster.

As for debris pick-up, perhaps Scott got caught up in the moment when he saw the damage in the Keys. But his response created havoc there and elsewhere.

It gives us little comfort to know that for this hurricane season, Gov. Scott put his former travel aide, Wes Maul, 30, in charge of the state’s emergency management agemcy. Maul spent a year and a half as the division’s chief of staff before taking over, the Miami Herald has reported.

Still, he’s a rookie, in a state that needs a seasoned pro.

And after almost eight years, Scott should not be making so many rookie mistakes.