Mayor LaToya Cantrell criticizes plan to give S&WB control of New Orleans catch basins (2024)

Mayor LaToya Cantrell and some members of the Sewerage and Water Board on Wednesday criticized a pending bill in the state legislature that would force the utility to take responsibility for catch basins and other parts of the New Orleans drainage system currently maintained by City Hall.

There are no serious objections to the idea of putting the entire system under the S&WB’s roof, a reform that has long been viewed as critical to keeping the city drier during heavy rains. But for decades, it has not moved forward because of arguments over who would pay for it.

The lack of guaranteed funding in SB305, the S&WB consolidation bill sponsored by state Sen. Jimmy Harris, D-New Orleans, is what Cantrell objected to on Wednesday, arguing that it risks setting the utility up for failure.

“This is what comes out of those who don't understand the operations but make laws and things that we have to align with, when they don't serve the utility in the best way possible,” said Cantrell during a meeting of the S&WB governing board.

Cantrell's comments came during an exchange with S&WB board member Janet Howard, who said it would be "totally unacceptable" for the S&WB to assume responsibility for the 72,000 catch basins and small pipes the city's Department of Public Works currently maintains without guaranteed funding in place.

"We can't do that," Howard said. "Does Jimmy Harris know that we can't do that? Or are we acting like this is something we can do?"

The board's position on Harris's bill matters because it would likely need to vote on a cooperative endeavor agreement to enact the transfer of what's often referred to as the "minor system" from City Hall to the S&WB, which is technically a state entity.

But Harris's bill doesn't require the agreement, so it's possible, though far from clear, that the S&WB could be legally responsible for the catch basins if Harris's bill passes — regardless of whether an agreement is signed or adequate funding is secured.

"We don't have any leverage," Howard said.

An awkward position

Cantrell, who serves as chairperson of the S&WB, hadn’t previously commented on Harris’s bill or moving through the state legislature related to billing and estimated meter readings.

Her criticism also could leave Paul Rainwater, the city's contracted lobbyist, in a difficult position. His firm, Cornerstone Government Affairs, is paid $288,000 annually to lobby state lawmakers on behalf of the city and the S&WB. But Rainwater also recently chaired Gov. Jeff Landry’s S&WB task force, which devised a series of recommendations — including drainage consolidation — that are now pending in the legislature.

Rainwater offered his public support for the bill at a May 16 committee meeting, calling Harris’ bill a “great piece of legislation.” Harris praised the collaboration of Landry’s staff.

In an interview on Wednesday, Rainwater stood by Harris's bill and his handling of the dual roles of Landry's task force chair and S&WB lobbyist. He noted his long history of working in state and city politics, including a brief stint as an interim S&WB director, which he said positioned him to marry the interests of Governor's Office, city officials and state lawmakers.

Cantrell administration staff fully participated in negotiations and were on board with Harris's bill, Rainwater said.

"The governor isn't paying me to do this. The city is paying me to do this," Rainwater said. "We're getting pretty darn close to something that I think works in everybody's best interest."

The bill is currently awaiting House approval, but is not scheduled. The session ends on June 3.

Three decades of split drainage

Responsibility for the drainage system was split up in 1992, after voters declined to renew a millage and left the S&WB without funding to maintain 72,000 catch basins, along with pipes and other infrastructure connected to them. City Hall then took over that portion of the system while the S&WB continued to maintain pumps, drainage canals and larger pipes.

Both portions are suffering from underfunding and deferred maintenance, and Cantrell said on Wednesday that she and S&WB officials will soon begin a public education campaign to inform residents of just how much money is needed for the portion under the S&WB’s control.

A “state of the utility” address is scheduled for June 25, according to an S&WB spokesperson.

The fragmentation of the drainage system, along with City Hall’s failure to adequately fund its portion, was identified in a 2018 consulting report as a contributing factor to frequent New Orleans street funding. Previous attempts to reunify the system have broken down with arguments over funding.

The S&WB has previously insisted on an upfront funding commitment before agreeing to take on the minor system, a position that Cantrell reiterated in an April 9 letter to Landry that criticized what she said were inaccuracies in the S&WB task force report.

“SWBNO is willing to assume that responsibility, but only if the transfer of responsibility is accompanied by a steady and sufficient revenue stream,” Cantrell wrote.

Rainwater said the legislature isn't responsible for ensuring the city adequately funds drainage consolidation, even if it passes a bill forcing consolidation to happen.

He noted the New Orleans delegation is also working on other S&WB funding issues, including a $29 million request for a new power complex. Another bill addressing red light traffic camera revenue in jurisdictions across the state has been amended to allow New Orleans to use that money for drainage.

"They have no right to be upset," Rainwater said of the S&WB governing board. "The legislature cannot dictate to a city how much money they need to set aside for catch basins and 36-inch diameter pipes."

Ways to go on funding

Old arguments over funding are popping up while the S&WB and City Council members are negotiating how much might be needed for a basic level of service to keep the catch basins clean and in good condition, as well as where that money will come from.

Both sides have described those talks as sincere, but S&WB Ghassan Korban said Wednesday that “we have a ways to go.”

Korban said about $30 million annually is needed to make sure every catch basin is cleaned every five years, which he said is the minimum level of service required to ensure the system functions properly. In addition to red light traffic revenue, City Council member Joe Giarrusso has suggested the council might appropriate $10 million from the city's general fund and tap the city's infrastructure maintenance fund.

Korban said he appreciates creative attempts by the council and legislature to identify funding, but that they don’t amount to anywhere near what is needed.

“There's a lot of meaningful and well-intended conversations being had between us and City Council,” Korban said. “How close are we? I don’t think we’re that close.”