I’ll be filing these throughout the day.  Here’s what I know so far.  A number of lawmakers say things are still “close” as far as working out their final hang ups on unemployment insurance and whether reclassifying independent contractors as full-time employees will be part of the deal.

As on lawmaker put it to me, “We are making meth.  We’re either going to get a final product, or it’s going to blow up in our faces.”

Lawmakers have still been meeting behind closed doors all day.   And I’ve got several sources keeping an eye for me on when they’ve got a deal.  Once they get something, I’ll get something.  And when I get something, so will you.

It’s pretty common knowledge that Terry Burns of the Indianapolis Times doesn’t sneeze without his Democratic County party’s permission, so I was little surprised when he labeled the Mayor’s proposal to transfer the water a a backroom deal.

First, how can something be a backroom deal when most of the information has been on the city’s website since Labor Day?

Second, that would mean that the participants are backroom dealers, such as the board of the Citizens Gas.   Here’s a list of Citizens Gas’ Board members according to the Indianapolis Star…

Board of trustees

• President: Daniel F. Evans, president and CEO, Clarian Health Partners.
• Secretary: Gerald L. Bepko, professor at Indiana University School of Law-Indianapolis.
• Dennis Bland, president, Center for Leadership Development.
• Kathryn G. Betley, civic leader and community volunteer.
• One position is open.

Board of directors

• President: Martha D. Lamkin, retired president and CEO, Lumina Foundation for Education.
• Treasurer: Lawrence A. O’Connor Jr., executive director of the Butler Business Accelerator.
• Secretary: Dorothy J. Jones, former president, BOS Community Development Corp.
• Daniel C. Appel, president, Gregory & Appel Insurance.
• Anne Nobles, senior vice president of Enterprise Risk Management and chief ethics and compliance officer, Eli Lilly and Co.
• James M. McClelland, president, Goodwill Industries of Central Indiana.
• Anita J. Harden, retired president, Community Hospital East.

Is Burns, and by default the Marion County Democratic Party calling the President of Goodwill Industries a backroom inside dealer?    Is the former President of the Lumina Foundation trying to so a deal in the dark?  Does the president of Clarion smoke a Cohiba or Arturo Fuentue when he’s in the smoke-filled back room cutting deal?  It sure does sound like they are.  I don’t know if this is the best public relations strategy if you’re going to attack the deal.  But I guess it’s the only strategy you have when you’re totally void of ideas.

As much as I like the Speaker of the House Pat Bauer, I would not want to be him right now.   Let’s face it, it’s been a tough year.

There’s a national trend that doesn’t favor Democrats in the next election.  Evan Bayh won’t be on the ticket.  House Republicans are running everybody and their mother against his members.  There was an unnecessary fight over Indiana alcohol laws.  One member had health issues, another got kicked out of leadership and Mitch Daniels is sitting at 70% approval rating.  And now you have to pick between two of your main Democratic constituents, unions and schools.

Here’s what I mean.  We all know Indiana lawmakers are deadlocked right now over education funding and delaying the implementation of the unemployment insurance tax increase.  Democrats say the two should addressed individually while Republicans say they are joined at the hip.

Although you would think there’s not much to argue about schools getting more authority to transfer money from their capital budgets to their operating budgets to shore up potential shortfalls and about delaying the increase in the unemployment insurance tax businesses have to pay for two years.   You would think that because there isn’t, both sides seem to pretty much agree on those two issues.  What they don’t agree on is a provision that would make it easier for independent contractors to be labelled as full-time employees and thus eligible for union membership under some circumstances.  And that’s where the deadlock is.

My very reliable sources tell me despite the public pleasantries and politeness, the GOP doesn’t trust the Speaker and they think if they pass education without tying it to unemployment the House Democrats will pull a fast one and they will be left holding the bag on unemployment.   Bauer, on the other hand, is juggling the teacher constituency with the union constituency and trying to protect both.

My money is at the end of the day, Bauer will protect schools and teachers because while he supports unions, his background is education.  And when you have to make a tough choice, you always protect your first love.   It’s not a great position to be in, but considering the year the Speaker’s had, it’s not surprising.

House and Senate Republican leaders emerged from the Governor’s Office saying there is no reason to separate education funding from unemployment insurance as lawmakers look to end this session.

Senate Pro Tempore David Long says both the unemployment bill and education bill are about jobs.  He says Governor agrees with their position and lawmakers could have gone home last week had Democrats not recessed.  House Republican leader Brian Bosma says there is no reason to do employment reclassification that Democrats want to allow more workers to join unions.

Earlier House Speaker Pat Bauer met with the Governor and said the issues of education and unemployment insurance should be addressed separately.

Long says the two sides are “this close” and there is no reason lawmakers can’t be dome by Friday.

You can hear audio from the two leaders below.

David Long & Brian Bosma

Indiana House Speaker Pat Bauer says education funding should be a separate issue from unemployment insurance and he’s asking Governor Mitch Daniels to get that message to his fellow Republicans.

Although lawmakers seem to agree on most of a plan to give schools more flexibility to solve their budget shortfalls and all parties seem to have agreed on a two-year delay of the increase in the unemployment insurance tax, they are still deadlocked.

One point of contention is the classification of some independent contractors and whether they should be labelled as full-time employees and thus union employees at some workplaces.

Bauer met with the Governor this afternoon.  He called the meeting positive.  Saying he hoped the Governor could convince his party to separate the issues so they could all move forward.

Meanwhile,  House Democrats and Republicans spent part of the afternoon agreeing that they agreed on education and unemployment  but no one could agree on what the delay was all about.

Bauer says he hopes lawmakers can adjourn by Friday.   The House will reconvene at 4 p.m.   You can hear the Speaker’s comments to the media below.

House Speaker Pat Bauer

Indianapolis Mayor Greg Ballard this hour is announcing a nearly $2 billion partnership deal with Citizens Gas over the city’s water and sewer treatment facilities which he says will generate more than $400 million for infrastructure improvements.

If all goes according to plan, Citizens Gas would assume operational control of the city’s water and wastewater utilities and in exchange would pay  Indianapolis  $426 million in cash and assume the $1.5 billion in debt associated with the both entities.

The plan would need approval by the City-County Council, Board of Waterworks, Board of Public Works and Indiana Utility Regulatory Commission.

City officials also say that with Citizens Gas at the helm rates will be 25% lower in 2025 than they would be under their control.   The city’s water and sewer system face $4 billion in upgrades as part of a 2006 consent decree with the U.S. EPA.   And locals have expressed outrage over recent rate increases.

In 2002,  the Peterson administration bought the water company from NiSource for nearly $550 million.  Critics say the city paid too much to the tune of $250 million.  French-based Veolia Water and United Water have both manged the water and sewer facilities respectively.   

The City plans to file an ordinance next month transferring control of the utility to Citizens Gas.  Officials say they plan to hold several public hearings on the deal.  Full approval is expected later this year.

The way the payment breakdown is expected, Indianapolis would receive a $262 million payment.  $171 million at closing and another $92 million in October 2011. The City would get an addition $50 million from the wastewater fund.  And an increase in payment in lieu of taxes totaling $140 million.   And since Citizens Gas is a not-for-profit public trust, it can assume the $1.5 billion debt without having to refinance its own debt.

My Marion County Democratic friends had a news conference today calling on Republicans to join them on township government reform.   I’m a little hurt they didn’t send me any notice (although I hear Ed Treacy is afraid to answer any of my questions) because they would have discovered I actually agree with them.

State Representative Bill Crawford is calling for township government consolidation via referendum on a township by township basis.  Believe it or not, I don’t think Bill is all that far off.  In fact I think a referendum would be just what this city needs.  I’ve spoken to a number of the members of the Marion County delegation, Bosma, Hinkle, DeLaney, Sullivan, Merritt and Barnes and each asked about government consolidation in their last round of legislative surveys and each time voters and constituents came back in support of it by at least 60%.

Who would have thought both Lawrence and Wayne township voters would want consolidation?  Maybe they’re tired of paying for three fire departments (Lawrence) or a trustee who spent $40,000 with a local public relations to show voters how relevant township government is (Wayne)?  And how many families are waiting to bury loved ones in Marion County, but can’t afford to do it?  Where’s that poor relief?  And don’t the trustees oversee cemetery upkeep?  They should be able to hit that one out of the park.

I think if you ask anyone who pays taxes, they’d be in favor of township government reform.    If you use the system, why mess with the gravy train?   I’m not talking about the poor, I’m talking about most of the people who run the show.  And here’s some food for thought, property tax caps will also be on the ballot as well.   If someone is going to vote for tax caps do you really think they’re going to vote to keep an extra layer of government around?

Wow, I’m agreeing with Marion County Democrats.   Next thing you know Ed, me and our wives will be going to dinner together.   The times they are a changing.

Editor’s note: The following blog post is based on a number of interviews involving multiple sources, some of which were questioned by the FBI, over the past five weeks involving the case of former IMPD officer and City-County Councilor Lincoln Plowman.  In exchange for the information, I promised not to identify any individual I spoke with.  However, many of them confirmed information given to me by others, and none of them had any knowledge of who I interviewed.

Two of the big questions surrounding the resignation of IMPD Officer and City-County Councilor Lincoln Plowman involve the words “what” and “why”?   What was the nature of the federal investigation that led him to step down from his posts?  Was there a violation of IMPD policy?  Did it involve his activities as a Councilor, a police officer, private citizen?  Why did he resign instead of stand and fight?  All legitimate questions, and for the first time, I think there are answers.  Note neither Plowman nor his attorney are talking about this.  Let’s go.

My sources tell me in late September/early October, Plowman was approached by an acquaintance regarding zoning for a business proposition.   He told him about an out-of-state developer who wanted to build an adult entertainment establishment in Indianapolis and needed someone who understood zoning and could get things done.  The acquaintance, who was actually a police informant, connected the out-of-state developer, who turned out to be an FBI informant, with Plowman.

The two met a number of times, my sources tell me, however after researching city zoning laws, they realized there were only a handful of few places where project could go up and one spot was in Decatur Township.   These types of establishments need to receive a zoning variance or be zoned IC-4, which I’m told is some of the heaviest industrial zoning in the city.  My sources says a  few more weeks of calls and inquiries went  by and no money changed hands.

As time dragged on and more inquiries were made, sources say Plowman and the out-of-state developer looked at hiring a commercial real estate attorney to see if anything could be done to find zoning in Marion County that would fit this establishment.   At no time, my sources say, did Plowman do any sort of background check on the developer.

The two would go out some evenings and engage in what some might label “bar talk” about the project, however the entire time the developer, my sources say, was wearing a wire.  A couple times, actually unbeknownst to the FBI, the developer would give Plowman a hundred bucks or so for the night out.   That information came as a surprise to the agents who were conducting the sting, because they found that out during one of the interviews that it had happened.

More time goes by, more research is done, more “bar talk” takes place, but still no money has changed hands.  However, it all comes to a head, my sources say, in late December where there is a meeting between the developer and Plowman downtown in a hotel.   They talk about where the project is going, and according to my sources, Plowman tells the developer, that given the amount of consulting time that he has already invested in the project, if he wants to go forward, it will cost him $5,000 for consulting fees.  At that point, my sources tell me, the developer takes out an envelope of cash, gives it to Plowman, and walks out of the room.   It’s at that point where the FBI comes in and tells him he’s been under surveillance and has been videotaped.  He is never arrested, but he is questioned about his activities.   Shortly after questioning, the agents, according my sources, start asking Plowman what he knows about embattled financier Tim Durham as well as other elected officials. These same questions are also asked to a number of witnesses.  Plowman is then let go.

Over the next few weeks the agents, one of which has been transferred to Chicago, question a number of witnesses about Plowman.  The questions included: has he ever tried to influence a city board member to vote a certain way; has he ever taken money for votes; has he ever taken money or pulled strings to get a liquor license granted?  The agents, as I mentioned in the above paragraph also ask some witnesses about Durham and other Marion County elected officials.

When I called the FBI for official comment, they gave me the standard, “we can neither confirm nor deny any investigation”.

As far as I can tell from talking to some legal authorities, if the government goes forward with its case, it could try to prosecute Plowman under what’s known as The Hobbs Act. The Act prohibits actual or attempted robbery or extortion affecting interstate or foreign commerce, thus the “out-of-state” developer.   The law was originally intended to go after union racketeering, but has also been used in public corruption cases.  Particulary when a public official uses his or her position to extort or coerce money from an individual.

As far as IMPD goes, my theory is Plowman would have been likely been disciplined under the provision that forbids merit rank officers from holding outside employment. While Plowman could have continued his leave of absence without pay pending the outcome of the investigation, he doesn’t have the financial resources to sustain his family without income, hence his retirement from the department where he can at least draw from his retirement pension.

Now the big question, is Plowman guilty?  Of bad judgment and not using his head?From what I’ve gathered, definitely!   If someone came to me out of nowhere whom I didn’t know and started engaging in a lot of big talk about how he was going to build an adult entertainment business and he heard I was his go to guy, I’d probably start asking for references.  Is he guilty of the Hobbs Act?  To be honest I’m not sure.  There’s information floating around that neither I nor my sources have been privy to.  And as these conversations were likely recorded, who knows each and every word that was said over the course of four-month  long investigation?

For now, it is what it is and we’ll have to wait and see how the rest pans out.  At least now, we have some perspective.

As expected, Indianapolis City-County Councilor and IMPD Major Lincoln Plowman has resigned from both positions.  That announcement came this afternoon from Public Safety Director Frank Straub.

Straub said Plowman was being investigated both internally and by the federal government, but he did not go into detail.   He also said the internal probe was ending since Plowman was no longer part of the department.  He also noted it was an administrative, not a criminal probe.

He said Plowman did cooperate with the investigation, but had he refused to step down it was unlikely he would have been allowed to stay on administrative leave with pay and he would not have been allowed to return to the force.  Straub would not say whether Plowman’s actions were related to any of his work on the force or in an off-duty capacity.  However, he noted IMPD will review all of its policies and procedures.

At the same time, City-County Council President Ryan Vaughn called the investigation a distraction for the work of the Council.  And that he hoped a replacement could be done by the next Council meeting later this month.

Below is the audio from today’s news conference.

Plowman News Conference

My Democratic blogger are obviously and understandably quite ecstatic over the recent misfortunes surrounding City-County Councilor Lincoln Plowman and they cite the recent ethics complaint filed by Democratic Councilor Angela Mansfield as partial motivation for Plowman’s expected resignation today.

I read the complaint.  Mansfield is says that since Plowman won’t talk about the pending investigation he should disclose the nature of the investigation and if not, take a leave of absence until the investigation is over.   She also says if the citizens of District 25  have a problem, they should call the At-Larges Council members for help.

Where do I begin?

First of  Mansfield is an attorney and even a  first year law student knows that when there is an investigation you shut up.  But that really isn’t the issue.  What I find almost laughable is my Democratic friends have suddenly discovered ethics.

I don’t recall them saying much when former Councilor Ron Gibson and current Councilor Doris Minton McNeil had their “issues”.  In fact, I recall of number of them showing up for a news conference Gibson had expressing their support.  Both were criminally charged for their offenses.  Charges were dropped against Gibson and Minton-McNeil beat the wrap.  I don’t remember any of them leading the charge in 2007 to get a handle on former Council President Monroe Gray and they all sat silently when Paul Bateman had his problems.

Now in all due fairness to Mansfield, she did propose an ordinance that would have prohibited then Council Attorney Aaron Haith (who had his own ethics issues a while back) from representing both the Council and the members as individuals.   That measure passed in 2008.

I’m not saying Mansfield shouldn’t have filed her ethics complaint and asked Plowman to take a leave of absence, but she’s had several opportunities in the past to file  ethics complaints, but apparently going after the guy who fought her tooth and nail on the smoking ban just seemed the right way to go.

Correction:   I received an e-mail from Angela today telling me the ordinance that would prohibit Council attorneys from representing Councilors as individuals was passed in 2008.  The blog post has been changed to reflect that information.