October 2019 – VIEQUES-LIBRE CORP

UNITED WE WIN, DIVIDED WE FAIL

During and after the crisis caused by Maria, we saw community leaders and volunteers emerge and come forward in response to the needs of our fellow neighbors. We discovered strength, talent, inventiveness, and a desire to fix what was broken and make things better for all of us in Vieques. We united in a mission to save the island. Most residents pulled together as a team regardless of their allegiances to any political party. Through these efforts we did more than survive: we discovered what could be done through our collective, focused action. We saw the huge inadequacies in our pre-Maria government services. We were knocked over by the revelations of Rickyleaks and realized beyond any doubt that our emperors had no clothes.

The usual practices of the Blue and Red have been responsible for much of the retardation of our island’s growth and opportunities for success. The constant flip-flop of power between the parties was an endless recycling of the gravy train for high level political elites, but it was an absolute disaster for the people of Puerto Rico. Traditionally, the self-serving patronage practices in Vieques have caused destructive partisan hiring practices and shifted the focus from “What’s good for Vieques?” to “What’s good for my party and my reelection?” Any long-term solution to the many problems of our island requires a unified renovation of our existing formal political structure in Vieques.

We have all become quite cynical when viewing local politics, so it is hard to have a significant discussion on how to change our system to cater to the needs of the island. We know we are the tail of the dog and that we will not be able to change the party or voting process. On the other hand, we might be able to change the outcomes while utilizing the existing legal procedures. What if we shifted the orientation of our own electorate and created support for candidates from any party who have platforms that address the critical needs of our island.

We should form a “sub-party”, call it the Sato Group (or something clever), whose role it is to establish a platform that anyone can endorse and pledge to honor. The Satos will then aid and assist the most credible candidate(s) in their efforts to get elected regardless of party affiliations.

The Sato Platform

The platform should be based strictly upon elements that are important to the growth, health, well-being, and future of Vieques. Not everyone will have the same vision, nor will all agree on the specifics of issues, but we must, as a group, reach consensus on the basics. Have the Blue and the Red ever really stood for the improvement of Vieques? Components of the platform might include:

Communications and information distribution from the municipio should become a daily routine and receive a very high priority to keep citizens aware of opportunities and all government activities
Transparency in all government activities spending money, awarding contracts, planning, etc. – everything but real time personnel and legal procedures/negotiations.
Hiring should be based upon integrity, education, experience, skills, performance, and appropriateness of the job fit – not on personal or political affiliations. Our government team is only half as strong as it could and should be when we don’t make use of the good people of both parties: the best people we have available!
Municipal positions should be created and maintained only for the most necessary and critical functions – not as welfare or patronage
Land titles to all municipal lands should be solidified through proper surveys and legal procedures to encourage the sale of applicable properties: those justly in the possession of the inhabitants or vacant/derelict/abandoned properties for community development
Random Central Government real estate parcels and buildings not being used for PR purposes should be deeded to Vieques
Through increased autonomy, the municipality should take over all property tax functions – from record keeping, to appraisal, to tax collection – CRIM in Vieques should be totally eliminated
Grant writing should become a very high priority to secure funding for the many needs of the island – consultants should be contracted if necessary
The ferry service to and from Ceiba should be owned by the municipality as a government entity or a cooperative, and the operation should be contracted out BUT controlled locally – subsidies would be negotiated with PR and the Federal Transportation Administration
Electrical power generation through mostly solar and distribution through micro-grids should be owned by the municipality as a government entity or a cooperative, BUT the operation should be contracted out and controlled locally
For all but extreme cases, criminal and civil violations or complaints should be arraigned and tried in Vieques – even if it must be accomplished by video conferencing – and a short-term jail should be provided and equipped to obviate the need for transport
Our local government should become involved in liaison and lobbying for any and all-important Central Government and institutions providing services to Vieques citizens (such as healthcare, education, social services, and economic development)
Replacement of the inventory tax for Vieques businesses
Work with PR economic development offices to utilize Promise Zone, Free Economic Zone, and Opportunity Zone programs to our advantage
Given the ever-declining likelihood of obtaining direct government funding for the repairs, rebuilding, and new development of necessary programs and infrastructure, the municipality will need to aggressively foster strong relationships with local nonprofits and national grant sources to fund essential projects and economic development.

So much for my thoughts. Now:

Would you support an effort to encourage our local candidates to pledge to honor this type of commitment?
What would you add to the list?
What would you take off?
What do you think?

Others are working on change: https://portside.org/2019-08-24/puerto-rico-shift-mass-protests-peoples-assemblies

SELLING OR SELLING OUT

BACKGROUND

Certain words like lawyer, tax, developer, privatization, gentrification, and a host of others, often elicit negative responses in people. Many have experienced or witnessed undesirable outcomes at the hands of, or results from, some of these nouns. This generalization provides a huge disservice to any and all rational discourse. The noun is not the determinant of good or evil, it’s the adjectives (excellent, horrible, just, unfair, etc.) that make all of the difference.

Privatization is an ambiguous commonly used word that can mean:

Government transfer of a business or service to private sector ownership and/or control;
Government contracting of a business or service with the private sector; or
Government “partnering” with the private sector to operate government owned assets.

The primary legal and justifiable reasons for government to involve the private sector are:

Raising money through selling assets and/or securing additional investment funds;
Extracting the government from an uneconomical or losing political venture; and
A government lack of technical expertise to effectively run the operation.

Privatization of the ATM is being attempted for all of the above reasons.

Granting of favors to “rent seekers”, cronies, and political donors are common illegal purposes.

PRIVATIZATION UNDER P3

Privatization of a government service is neither good nor bad on its face. To be good, it is important that the process is structured to effectively achieve the community’s goals. Properly designed, a contract can facilitate the enforcement of strict compliance with the needs of the customers, including everything from operational performance to fees for services. Bad is illustrated by two of the projects currently in the bidding phase under the P3 program: the ATM (ferry services) and the San Juan Pier operation. This privatization process, as specifically established by the enabling law, is deeply flawed and horrible for Puerto Rico.

The devil is always in the details, and the ultimate determinant of success is the outcome for the stakeholders. But how can any community satisfaction result from P3 legislation that allows the process of defining the bidding and performance specifications to be created and approved without the knowledge of, and input from, the users, customers, and existing service providers? IT CAN’T! It’s selling out our people; it’s flimflam!

The law presumes that the “superior” insight of the backroom P3 architects trumps the actual experiences, opinions, and needs of everyone else. No mechanism is provided or offered to educate, discuss, collect meaningful data, or exchange ideas with the community. Officials’ ignorance of the issues, susceptibility to influence peddling, and lack of best-practice expertise in the industry are hidden from public view due to a total lack of transparency and a wall of legal protections designed for that purpose. That arrogance of the elite ruling class that was protested-out-of-office still permeates the mentality of many who remain.

The losing battle that is being waged by Viequenses to improve the ATM is not primarily a war for or against privatization, but rather a plea to our government to listen to us and fix the deplorable, dysfunctional system – or to SUPPORT US IN DOING SO OURSELVES. The problem is that the people in charge of creating the solution are not qualified and have not included the stakeholders in specifying the needs of the communities of Vieques and Culebra.

As reported in the Caribbean Business September 1^st edition: “San Juan Pier Privatization Sails Under Radar”, we see the same modus operandi from the P3 organization to ignore the stakeholders, many of whom know far better what is needed than the financial wizards who put such deals together. This law makes selling out easier than selling. This is how dictatorial regimes, monarchies, and corrupt democracies operate. We deserve better, but it will not be “given” to us, we must work to earn it, and that means attacking the legality of the law and the integrity of the lawmakers. Our past efforts at cleansing the government were inadequate: We didn’t get all of the rot!

PDF Version

THE ATM FERRY SYSTEM AS OF SEPTEMBER 30TH

My opinions and criticisms of the cargo system are not aimed at the impossible situation faced with just Isleno running, but rather the larger picture we’ve encountered even before we lost the other boats. The current situation – with the limited availability of the cargo ferries – became inevitable a couple of months ago, and unless someone can pull a qualifying cargo boat out of a hat, we’re screwed for a while.

I have had the opportunity to meet with a number of government officials in the last few months, and the lack of understanding is ubiquitous and palpable:

Juan Maldonado, Director ATM

- - Well educated attorney with two other simultaneous government positions;
  - Pleasant personality, political appointee, and friend of the Governor;
  - Had what he thought was qualifying experience because he worked with union contracts via the Urban Train;
  - He didn’t know anything about running a ferry system but felt his experience was sufficient, so that when combined with operational help from ATM staff, it would work;
  - He listened to comments and suggestions from many sources, but drank the Cool-Aid and believed his staff; and
  - He was forced by the Governor to open the short route almost immediately at all costs with no excuses.

Omar Marrero, Director PPP

- - Super smart and powerful finance guy;
  - Been working on privatizing ATM at all costs for a couple of years, but he shows little knowledge of a proper ferry operation;
  - His desire to include stakeholders in the process in any way is next to zero;
  - If he understands the needs of the communities, he hides it well;
  - At a small meeting for dialogue, it was pretty much one sided: this is the way it is, and we really don’t need to listen to you because you have no standing;
  - He is urgently focused on ridding the government of the ferry problem and dumping it onto a private contractor; and
  - His lack of accurate data analysis will cause the problem to resurface shortly after a contract is signed – if that ever actually happens.

Mara Perez Torres, Director, ATM

- - Well enough educated financial type charged with privatizing the ATM under Marrero’s direction;
  - She has no operational experience but seems to be a good person and genuinely trying to do a credible job for Vieques and Culebra;
  - She brought in José Vásquez Colon to provide the maritime experience;
  - Numerous public statements have reflected great naiveté – in departure from reality;
  - When I asked why the boat was spending the nights in Ceiba instead of Vieques (when the schedules grossly favor the opposite) she said because the crews were residing on the main island;
  - When asked why not make the crews, some of which are Viequense, stage out of Vieques, she had no answer;
  - When I asked what the schedule for cargo was to be after privatization, she said that it would be reduced; it was pointed out that the same crews using the same fuel as is currently burned could almost double the number of trips using Mosquito Pier, and she responded that they hadn’t thought of that;
  - When asked why they don’t put a finger pier (perpendicular to the ramp) in for side loading passengers at the cargo area, she said that it is not a consideration because it would take ten years to get it approved, reflecting a cynical view probably from one of her underlings; and
  - Her claim that the rocks someone dumped at the PRFF section of the pier required a USCG evaluation before they could be removed (and the dock re-inspected) appears not to be the problem at all since it has been four months, and nothing official has been done.

José Vásquez Colon, ATM

- - Nice guy with years of experience in maritime activities, although none in ferry type operations;
  - In mid-June, he told me that the cargo operations were going to be moved to Mosquito by July, just several weeks later;
  - When asked why maintenance was not being done on the boats at night, he stated that the union contract requires overtime pay for night, and they couldn’t afford it;
  - I asked why they don’t just hire shift workers for swing and graveyard shifts, and he said that it hadn’t been considered;
  - When I suggested that maintenance shift work be in the contract for privatization, he allowed that it would be a good idea;
  - For several weeks they were running two scheduled boats around 10:00PM from VQS to Ceiba – one ran light, and the other ran empty – what were they thinking? And
  - Let’s hope he can quit drinking the Cool-Aid and use his own brain.

PorFerry.com is an excellent idea, but if they can’t keep up with the scheduling, the wrong information is worse than none. They had posted a 9:00PM return to VQS for a long time, but it was actually departing at 8:00 or 8:15, and that stranded many. That’s operational management and doesn’t require an additional budget expenditure.

The government is being squeezed by the FOMB, and the ATM is feeling the result from all directions. Roselló just wanted to get rid of the ATM before it exploded. Unfortunately, in their haste to move everything along ASAP, they screwed it up beyond belief. Now, the new Governor has it sitting in her lap, and I’m certain she has no idea what to do with it and doesn’t have funds to apply to it easily. I look at the short term – next several months – as being beyond repair. Anything we do short of negotiating our own deal is a waste of time. It’s too early to make order out of this level of chaos.