$300,000 Available for Cable Public Access Upgrades Finance Commissioner Reports

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WPCNR THE CABLE ACCESS ADVOCATE.  Cable Commission Coverage Special to WPCNR by Don Hughes. October 6, 2008: The last year has been marked by unprecedented breakdowns in transmission of Common Council meetings and the quality of public access transmission of regular programming. Sixteen documented complaints were received within the last four months, and there were others not reported to the commission. The criticism of the programming reception quality included loss of picture, loss of audio, for hours at a time. One Common Council was completely blacked out. The complaints both documented and undocumented were frequently traced to different breakdowns in the transfer of Public Access Studio signals to Cablevision for distribution to the city. Don Hughes sat in on the Cable Commission meeting last Tuesday in which this trend was discussed. Here is his report:


Gina Cuneo-Harwood, the White Plains Finance Commissioner gave a presentation to the White Plains Cable Commission last Tuesday evening,  where she indicated that she wanted to address some unfounded rumors that no money was available to upgrade equipment that she  had been hearing. 


She indicated that White Plains Cable Access did have money available to address issues such as expanding coverage and replacing equipment.  She said that there was approximately $300,000 available in the fund balance for such uses.  She also recalled previous discussions where money was added to last year’s budget to upgrade the TV equipment used at City Hall. The actual revenues  Cablevision and Verizon contributed to the city were not disclosed, but Cablevision, the Commissioner reported was “by far” the largest source of revenues.


 


Surplus Held onto for emergencies it is said. Revenues Growing by 10%


There was some discussion that Cable Access was unique  because of the possible emergency replacement of expensive equipment and, since the city is self-insured, they needed a large cushion.  There was also discussion that they should not spend on their needed equipment list since that might impact their negotiations for capital funds from the vendors.  The Finance Commissioner dismissed both reasons.

The Finance Commissioner mentioned that the cable revenues seemed to  be increasing by about 10%/year.  This years fees were about $891,000 which would be shared with the city 70/30.

When asked about the split of the fees between Verizon and CableVision, she claimed that she was legally prohibited from giving that information because it is considered private and confidential, although she could say that CableVision is by far the biggest payer.  There was some discussion whether this information had been provided to the director and some members of the commission in the past, with a number of conflicting claims made. 


Cable technology gap confirmed. Quotes Sought

There was some discussion and agreement that Cable Access has fallen way behind where they should be in terms of technology.  The Executive Director of  White Plains Cable, Jim Kinney,  indicated that he had a proposal to study what is need to upgrade the system and was directed to obtain two additional quotes.  He was also directed to upgrade the approximately $500,000 wish list of needed equipment upgrades that he had previously prepared.


Commission Members Should Not Speak Individually

One of the commissioners wanted to be ensured that she was given copies of all materials made available to the director.  At this point the chairman indicated that it was not right for a single member to get information that not all the commissioners wanted to see and requested a motion directing that information would not be forwarded
to any one member without approval of the rest of the commissioners. He also indicated that he wanted to put a stop to individual  commissioners speaking on behalf of the commission without approval.


16 Transmission Complaints in 4 months.

The commission was presented a compilation of 16 complaints received  since the last meeting on 6/10/08.

The commission voted on and passed a salary increase for the director.

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Prime USDA Pork Buys a Bailout.

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WPCNR QUILL & EYESHADE. News & Comment by Don Hughes. October 6, 2008: The Emergency Economic Stabilization Act of 2008 is 451 pages long.  Unfortunately about 338 of those pages have nothing to do with economic stabilization and everything to do  with buying votes.  For a look at the full version go here: http://tinyurl.com/4utcew.

According to the Senate committee on Banking, Housing, and Urban Affairs, the stated purpose of the legislation is to provide “up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets that are clogging the balance sheets of financial institutions and making it difficult for working families, small business, and other companies to access credit, which is vital to a strong and stable economy.”   For the full summary go here: http://tinyurl.com/4g5uao.

Don’t be fooled by the $700 billion price tag.  As of September, the government had already spent $900 billion in rescues and  loans: $300 billion for the FHA to refinance failing mortgage loans; $200 billion for Fannie Mae and Freddie Mac; $200 billion for TAF loans to banks;  $87 billion to JPMorgan Chase for providing financing to bankrupt Lehman Brothers, $85 billion for AIG; $29 billion for JPMorgan Chase’s buyout of Bear Sterns;  $4 billion in grants to local communities (see FACTBOX). 


Oops, and then today the Federal Reserve expanded it’s bank refinancing operation listed as $200 billion above to $900 billion.  That brings the total, so far, to $2.3 trillion (would an exclamation point be redundant?).


When the House initially failed to pass the bailout,  the legislation was was loaded up with congressional earmarks  (polite term for pork) in an effort to buy the votes of enough legislators to pass it the second time around.  Whole sections of legislators’ pet legislation that had previously failed to pass muster was simply plugged unchanged into the emergency bill.

We have things such as tax breaks for Oregon manufacturers of wooden arrows; a tax incentive program to benefit the California film industry; and a rebate for excise taxes on rum imported from Puerto Rico.  For an analysis of some of the more egregious tax breaks done by Taxpayers for Common Sense see: http://tinyurl.com/4ha9sl.

President Bush, Speaker of the House Nancy Pelosi, House Republican Leader John Boehner, Senate Majority Leader Harry Reid, and Senate Minority Leader Mitch McConnell should have had the leadership to jointly announce that this legislation was too critical to play games with and that they would not accept any attempts to add anything to the legislation not directly related to its stated purpose of relieving the country’s credit crisis.

But that is not what happened.  First they showed a total disrespect for the American voter by assuming that we were too stupid to understand the details.  That’s why they sent no e-mails, held no press conferences, or attended any local forums attempting to explain this legislation and their vote to the voters. 
They just tallied up the phone calls and went with the flow. 


Second They succumbed to greed.  They took advantage of this emergency to add to this legislation items that would never have passed on their own.  And then they did not even take the time to insure that this legislation would, in fact, do what they wanted it to.  Notice that they used the market’s over 700 point drop earlier in the week as a justification for hastily passing the legislation, yet even after passing the legislation the market continued its downward slide today.  Legislate in haste, pay for
it at leisure.

So perhaps giving $200,000 in tax exemptions to charitable organizations who purchase wooden arrows (to the benefit of the sales of Rose City Archery in Myrtle Point Oregon) is not such a big deal, but the fact that was the only way to pass critical legislation is. 


It shows that we are not governed by statesmen, but impotent pretenders.

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How to Gamble Like a Banker

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WPCNR QUILL & EYESHADE. News & Comment by Don Hughes. October 5, 2008: Personally I believe in free markets and limited government regulation. However, as the following discussion – which is based on The $55 Trillion Question in the 13 October 2008 FORTUNE and How to Burn the Speculators in the September/October 2008 Mother Jones – shows, there is a significant difference between ‘limited’ and ‘no’.


 



 


 After 1933 and the passage of the Glass-Steagall Act much of the commercial banking industry was regulated. The 1933 laws were in response to the mixing of commercial and investment banking that started in the 1920s and which had led to significant opportunities for fraud and conflicts of interest.


 


And while the regulations almost guaranteed small but steady profits, they limited the opportunities for spectacular profits. Historically, local banks took in deposits and then used that money to make loans. There were strict requirements on how much cash a bank needed to keep on-hand and on the ratio of their assets to their capital. However because of the anemic US savings rate, the demand for loans exceeded large bank’s ability to attract deposits and thus to make loans and to make profits. Some banks turned to other sources of income such as credit cards and checking accounts and their seemingly unlimited opportunities to impose new fees.


 


Enter Derivatives


 


In the financial world there are instruments called derivatives – things that have no intrinsic value themselves, but derive their value from some underlying asset. Banks made use derivatives called’mortgage-backed securities’. They repackaged their loans as MBS and then sold these ‘securities’ toother institutions. Since the banks technically no longer owned these loans, it allowed them to avoid the regulations on the ratio of assets to capital which then allowed them to make additional loans and to create huge financial empires on fairly modest foundations.


 


A private firm called the Federal National Mortgage Association or Fannie Mae which started as a governmental agency in 1938 and another firm call the Federal Home Loan Mortgage Corporation or Freddie Mac created in 1970 arose to provide a secondary market for these MBS. As of last month, both are now wards of the government.


 


License to Derive


 


In 1999 the Gramm-Leach-Bliley Act repealed parts of the Glass-Steagall Act and allowed many new players into the mortgage market. Perhaps 80% of mortgage loans are now made by non-banks. At this point, the people making the loans had only a passing interest if the loans were ever repaid. They made their money initiating the loans and passed the risk on to others.


 


And they were largely unregulated. Predictably, they started making loans to people who were worse and worse credit risks (the subprime market). A number used deceptive advertising and empty promises to attract these new borrowers — practices that would have landed their regulated predecessors in jail.


 


The Motivation Changes


 


To review: if you make your money on the difference between the interest you receive from mortgages and the interest that you pay depositors, you are going to want  to protect your interest income by only making loans to people that you are fairly certain will pay you back.


 


However, if you make your money from the loan origination fees, processing fees, and late fees, you are more interested in just making as many loans as possible. You may actually make more money in fees from people with poor credit than from people with excellent credit.


 


It is easy to blame the borrowers for getting in over their heads, but all of us make decisions based on information that we assume to be correct. We buy milk assuming that it is milk and not water mixedwith melanine, we buy fire insurance assuming that if we have a fire that we will get paid, and we buy plane tickets assuming that the planes will not crash into each other in the air.


 


Government regulation is what make these reasonable assumptions.


 


Betting on Your Assets–No House Manager.


 


The financial institutions realized their own risks, and just like homeowners purchase mortgage insurance, they purchased a different kind of derivative called ‘Credit Default Swaps’.


 


A CDS is a contract where the buyer pays the seller an amount suspiciously like a premium and in return the seller agrees to make a payment if a particular event, such a a loan default, occurs. Used in moderation, these can be very useful instruments.


 


But there is a reason that the markets pushed CDS instead of insurance.The insurance industry is regulated, CDS are not. In fact, Congress went out of its way to insure the they were not. As reported in the FORTUNE article:


 


in 2000, Congress with the support of Greenspan and Treasury Secretary Lawrence Summers, passed a bill prohibiting all federal and most state regulation of CDS and other derivatives. In a press release at the time, co-sponsor Senator Phil Gramm – most recently in the news when he stepped down as John McCain’s campaign co-chair this summer after calling people who talk about a recession “whiners” — crowed that the new law “protects financial institutions from over-regulation … and it guarantees that the United States will maintain its global dominance of the financial markets.” (The authors of the legislation were so bent on warding off regulation that they had the bill specify that it would “supersede and preempt the application of any state or local law that prohibits gaming …”) Not everyone was a sanguine as Gramm. In 2003, Warren Buffett famously called derivatives “financial weapons of mass destruction.””


 


Instant Money


 


Because they are simple contracts rather than securities or insurance, CDS  (Credit Default Swaps) are very easy to create — deals can be done in a one-minute phone conversation.


 


The response of Wall Street to the opportunity to make deals that can be quickly struck, require little or no cash investment, involve almost no paperwork, can cover anything, and are not subject to any regulation, was predictable – the volume of CDS exploded to a recent peak of $62 trillion. Compare that to the total corporate debt estimated at $6.2 trillion, or the estimated $10 trillion of asset-backed debt. That’s $50 trillion or so of nothing more than smoke and mirrors.


 


One of the interesting aspects of CDS is that you don’t have to own, or even have any interest in, an item to buy a CDS against it – anyone can place a bet on whether a loan will fail. Indeed the majority of CDS now consists of bets on other people’s debt. Again from the FORTUNE article:


 


“It’s sort of like I think you’re a bad driver and you’re going to crash your car,” says Greenberger, formerly of the CFTC. “So I go to an insurance company and get collision insurance on your car because I think it’ll crash and I’ll collect on it.” John Paulson of Paulson & Co., for example, made $15 billion in 2007, largely by using CDS to bet that other investor’s subprime mortgages bonds would default. So what started out as a vehicle for hedging risk ended up giving investors a cheap, easy way to wager on almost any event in the credit markets. In effect, credit default swaps became the world’s largest casino.


 


A Ponzi Scheme. Gambling Safer.


 


 I hope that you noticed the word ‘gaming’ in the 2000 legislation mentioned several paragraphs back.


 


It was no accident. But there is a big difference between gambling and trading CDS (Credit Default Swaps). The casinos are regulated and you can be pretty sure that if you win, you will get paid. The CDS market offers no such assurances.


 


Many of the firms playing in the CDS market are only slightly more solvent than your neighborhood minimart. Wachovia and CitiGroup are in court with a hedge fund located in the Channel Islands over two $10 million credit default swaps that represent over 40% of the fund’s capital. The likely outcome is that the fund will simply declare bankruptcy and Wachovia and CitiGroup will never see a dime of their money.


 


Just like any other Ponzi scheme, as long as the bubble keeps expanding and nobody looks too closely, you can convince yourself that things are different this time. Many of the loans were made with teaser rates – 0% INTEREST!!! $0 DOWN!!! NO PAYMENTS FOR TWO YEARS!!! — you have seen the ads.


 


Rising Interest Rates Burst Bubble 


 


 Well the two years went by and the fine print kicked in and the interest rates adjusted to market-plus. Suddenly people were unable to make their payments and started defaulting on their loans. Owning mortgage-backed securities was no longer a smart move and the firms originating the loans were no longer able to pass them downstream and they started running out of funds to make new loans and keep the pyramid inflated.


 


Large firms such as Wachovia with huge portfolios of mortgage-backed securities and who thought that they had protected themselves with CDS discovered otherwise when they tried to unwind their positions. And since the CDS sellers were unregulated, the firms had little recourse for recovering their money.  If  the mortgages were worthless,  then their cost and their ‘insurance’ was just worthless. The value of  their assets plummeted and soon were below even the minimal capital requirements imposed by the remaining limited regulations.


 


Rising Tide Overruns Assets


 


Large financial institutions such as Wachovia continually borrow the funds they need on a daily basis from other major lenders in the form of short term liabilities. When their creditworthiness deteriorated, they were unable to borrow the money they needed to stay in business. They were bankrupt.


 


Energy Speculation Rears


 


But CDS (Credit Default Swaps) are not just about mortgages. As reported by Mother Jones, CDS (Credit Default Swaps)  provide an enormous back  door into the commodities markets basically permitting speculators making bets in the commodities exchanges to be treated as “commercial interests” and avoid limits normally applied to financial institutions on the size of their bets.


 


 In Senate testimony in May, Michael Masters testified that the speculative demand for Texas oil futures is now five times the actual 2003 baseline stockpile. He attributes this to the jump of index speculation investments from $13 to $250 billion since 2003.


 


Again as reported by Mother Jones: The 2000 legislation mentioned above also allowed energy futures to escape all federal and state regulation. [And] in a separate bit of absurdity, in January 2006, the Intercontinental Exchange (ICE) of Atlanta, which trades bench mark US oil futures came to be treated by the CFTC as a British market so that US regulators do not even track what is going on.


 


So the US market for US oil futures traded in the US is not regulated or even monitored by US regulators.


 


Manipulated Prices?


 


Now consider the situation: huge firms with no regulation placing tremendous bets on certain outcomes. Is it too much to expect that they will put exceptional effort into seeing that those outcomes come to pass? What drove the cost of crude to $145/bbl had little to do with increased demand from China, hurricanes in the Gulf, or the lack of offshore drilling, but everything to do with the fact that about 70% of the oil futures now traded are purchased by speculators who are not subject to any regulation. And according to Attorney General Michael Mukasey, significant positions are controlled by international organized criminals.


 


The bottom line is that in order to increase their profits, financial institution found creative ways to skirt existing regulations. A compliant Congress enabled their deception in the name of free markets.


 


The banks rolled the dice and the taxpayers lost. We need to restore reasonable regulation – but not go overboard as Congress did with overreaching Sarbanes-Oxley laws passed after the last financial crises.


 


It is noteworthy that the New York State’s insurance commissioner, Eric Dinallo, announced new regulations that would essentially treat sellers of some CDS as insurance entities, thereby forcing them to set aside reserves and otherwise follow state insurance law.

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Council Resolves Ritz Affrdbl Hsng Gap. Cappelli Rents Apts to Fill Shortfall

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WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. October 4, 2008 UPDATED 10:35 A.M. EDT: The Common Council resolved its dispute with Cappelli Enterprises over occupancy of the Ritz-Carlton second condominium tower before affordable housing owed on the project was completed by voting 7-0 Friday afternoon to accept a compromise.


In the agreement approved, 4 of the 24 completed units  built in the City Center garage will be “allocated and credited” to the City Center project, and 20 affordable units allocated and credited to the 221 Main project.


To complete Mr. Cappelli’s obligation remaining from the City Center project, the council has allowed him to rent  13 similar apartments across the city, in apartment complexes such as Avalon, Bank Street Commons and elsewhere, thus resolving the dispute.


The upshot is that Mr. Cappelli can now receive certificates of occupancy without impediments as he opens the second condominium tower.


Commissioner of Planning Susan Habel advised the media after the vote that the Cappelli organization still owes 13 units to fulfill its obligation of affordable units connected to the City Center project. The organization had owed 16 previously.


By assigning 20 of the 24 units built in the City Center garage to the Ritz affordable housing requirement, 4 units were subtracted from what Mr. Cappelli owes from the City Center project, leaving 12 units to go to fulfill the City Center requirement. She said Cappelli has agreed to build one more, leaving 13 units he must provide. Until those units are built, she said, Mr. Cappelli has agreed to rent comparable amenitied apartments within the city.


Ms. Habel in post vote statement said that the council acted Friday, rather than at Monday evening’s scheduled Council meeting, because the Planning Department wanted to begin renting the 24 units now complete in the City Center garage to the waiting list of 400 persons. She advised that persons interested in applying for affordable apartments should contact the White Plains Planning Department, because all renters of the apartments were subject to approval by landlords based on review of their financial qualifications. It became necessary, Ms. Habel, said to allocate the affordable units.


Under questioning by Keith Eddings of the Journal News, as to why the issue had been negotiated in executive sessions, Paul Wood, City Executive officer, said that  the issue of litigation came up in negotiations over the issue.


The agreement approved Friday evening, perpetuates the affordable housing units should the Cappelli organization eventually sell the City Center garage apartments.


Commissioner Habel said where the 13 units would eventually be built by the Cappelli organization within the city was not known. Asked where the 240 Main Street project stood, where it was presumed previously that the Cappelli organization would build theaffordable housing, Ms. Habel said the possibility of the building ever being constructed has been complicated by a bankruptcy of the Rotundi organization which is in dispute with Ginsburg Development Corporation, its former partner, and the litigation continues, blocking construction until that is resolved.

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Trillion Dollar Bailout Bill Passes. President Signs It. “Quick Action” promised

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WPCNR QUILL & EYESHADE. From news reports. October 3, 2008: The House of Representatives in the Nation’s Capitol voted 263 to 171 today to approve the Trillion Dollar Bailout Bill conceived to support the recovery of the nation’s financial markets, credit operations and attempt to arrest deteriorating economic conditions across the country. President George W. Bush signed the bill into law. Secretary of the Treasury Henry Paulson promised “quick action.”

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Bright Shining Moment Shines Again. Facets of Bdwy Jewel Gleam at WPPAC

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WPCNR  GOES TO THE THEATRE. By John F. Bailey. October 2: There are many bright shining moments, buffed, polished and gleaming once more in  the new Lerner & Loewe’s Camelot, the first revival of the 1961 icon of a show — first course delicacy on White Plains Performing Arts Center theatrical buffet this season, as WPPAC continues its performing course in great musical theatre.



The Eternal Triangle Begins, Rendered by Robert Cuccioli,  (seated) “The Official Leading Man of New York,” as the troubled, hesitant, heroic King Arthur, Her Majesty, the regal Juli Robbins as Queen Guenevere, looking on in disapproval at the boasting Greg Goodbrod as Sir Lancelot  when they first meet in WPPAC’s debut production of Camelot, Friday through Sunday.  Photos, Courtesy White Plains Performing Arts Center


Camelot  could not come to White Plains at a better  time. The show  with its clever, amusing and intelligent book and songs depicting the ambiguities and resiliency of the best mankind has to give will inspire with the hope it instills. That’s the reason it was a hit the last time people believed in a Presidency, 1961 (when the Camelotian Kennedy administration governed two-1/2 years). You still have three days left to see it, Friday night, Saturday and Sunday this weekend at the WPPAC.


WPPAC engages the imagination by transforming the ever versatile WPPAC stage into King Arthur’s Great Hall, where the audience appears actually in the great hall with banners festooned about the sides of the hall. Through the magic of Thom Weaver’s lighting it turns into enchanted woods, a jousting tournament, castle battlements, and singer-performers who can deliver emotion without crossing into melodrama.



The WPPAC company,  developing its reputation as a repertory company attracted about ¾ of a full house for Sunday’s matinee, showing its strategy bringing back tried and true classics of the Broadway past is connecting with a taste for time travel. Theatregoers saw why a great show is always a great show because it stands the test of the times, delivering, as I have written before, timeless truisms that inspire any era.


Camelot is the story of a love triangle between “The Official Leading Man of  New York,”  Robert Cuccioli, the Tony Nominated (Jekyll & Hyde) star who gave WPPAC hope last season with his house-buster Man of La Mancha;  the exquisite regal flame-haired Juli Robbins as Guenevere with a voice as articulated and commanding as fine crystal, and Gregg Goodbrod growing into the role of Lancelot.


The attraction between Ms. Robbins and Goodbrod is apparent and subtlely developed as a real romance is. How the attraction develops, though somewhat preposterous, through Guen or “Jenny” as she is called by Arthur and Lance, detests Lancelot’s conceit when she first meets him. Lancelot performs a divine miracle through some kind of hands-on CPR, that proves to Guenevere he is not all ego.


Goodbrood’s first big moment comes with his hilarious singing resume, “C’est Moi!” , a testimony to his abilities. He bonds with the audience delivering a hearable, comprehensive delivery with gesture and savoirfaire  bringing great laughs . At the beginning of Act II he delivers the song that made Robert Goulet a star in the original production.


As he professes he can no longer stand to live in Camelot with Guenevere out of reach, he stops himself and delivers If Ever I Would Leave You with a sweep, an emotion, an intricately sewn tapestry of  range that delivers more meaning than Goulet ever put into singing this song. The songs in this show – all of them are not sung in the belt-and-shout style .  


While Goulet just belted it, Goodbrood gives the sensitivity, the reality, the pain, and yes, the j’n sais quoi that  somehow makes the audience understand why  a man would rather be around a woman who inspires him whom he cannot have than not have her in his life at all. In this writer’s opinion the Goulet style simply blasted the song (especially in the hit recording), rather than deliver the intense finesse the song is given in this show.



It takes a great deal for you to  take your eye off the regal queen Juli Robbins – here charming knights in The Lusty Month of May. Ms. Robbins  intense mesmerzing gaze and Dove Beauty Bar complexion – casts her appreciation on Lancelot demurely, with class and manners, giving plenty of evidence of the smoldering fire for Lancelot within. Here is an actress who plays a queen who is queenly and sings like her namesake with a stately commanding style.


Taking the signature Julie Andrews role (Guenevere was Ms. Andrews follow-up star turn to her never-to-be-forgotten Liza Doolittle in My Fair Lady, acclaimed the greatest musical of all-time), Ms. Robbins  has that very British royal inflection in word and song, articulating superbly.


 Long experienced on the Camelot National Tour, Ms.Robbins is the radiant sun this production revolves around.



It’s Lonely, Confusing, and Tough to Be the King: Robert Cuccioli captures the king’s confusion and anxiety over loss of queen and pursuit of his ideas with a performance evoking compassion and inspiration.


Guenevere’s King Mr. Cuccioli negotiates the intricate nuances of loving two persons, his wife and his friend Lancelot, channeling his jealousy, and attempting to preserve his idealistic dream for the roundtable. He is a leader trying to do right in a world filled with self-interest (the knights). (Does that sound anything like today’s political scene?) The triangle dynamics work superbly.


Mr. C shows another side here – a committed dedicated powerful Quixote in Man of La Mancha, here he is a confused, diffident King in doubt until the end, but loyal to his two friends and his obligations to his ideas that sometimes as we find in life are always in conflict with what makes us happy. Is that timeless or what?


His first meeting with Guenevere, he carries off brilliantly taking advantage of Ms. Robbins’ not knowing he is the king she is to marry.  This banter between them is brilliantly acted by both. He sets the tone with the title song Camelot. Robbins plays a young and lamenting nervous bride singing The Simple Joys of Maidenhood.


Lancelot is introduced to Guenevere by Arthur and Guenevere’s contempt for Lancelot’s self-confidence, to say the least is another throroughly amusing scene highlight by the company’s The Lusty Month of May, and Guenevere’s attempt to take Lancelot down a peg by urging knights of the roudtable to joust him are the beginning of the Lancelot-Guenevere romance. Robbins cajoling of the knights with her rendition of Take Me to the Fair is splendidly timed with appropriate raised eyebrows and wide eyes – any knight would oblige.


The Jousts scene – right out of the Races scene in My Fair Lady – is another suspension of belief carried out by the WPPAC production team.


ACT II things go bad for our conflicted King, Queen and Knight errant.



The evil Mordred, Arthur’s illegitimate son arrives and plots to take over the court. Played by  Saum Eskandani, (center, third from left), who played the scheming nephew in How to Succeed In Business Without Really Trying on this very same stage. This guy is very good at playing evil, scheming, slimy guys and making them hated and entertaining simultaneously, his Mordred singing  The Seven Deadly Virtues is hysterical, followed up by Fie on Goodness when he converts the Knights of the Roundtable above, who reminisce about their looting and whacking, is just great stuff. Mr. Eskandani deserves a sitcom.


In the denoument, Cuccioli and Ms. Robbins deliver a wonderful duet, What Do the Simple Folk Do? In which with each verse, the passion that once was between them almost rises to the surface, but because of outside forces has been forever mooted,  an all too familiar theme in everyone’s lives.


But this is not a sad show, even Ms. Robbins lovely farewell to Lancelot after Mordred’s plot exposes their  romance, is a positive and uplifting adieu.  Her I Loved You Once in Silence warms the heart and tears you up the way Ms. Robbins styles it, in her silky soprano so precise with control  and courage and emotion.


Robert Cuccioli’s role Arthur, (played by the tortured Richard Burton in the original), gives brooding and angst worthy of the Burden persona, but  more lovable.  He is central, moving Arthur through his various stages of shrinking from responsibility, dealing with it, pushing for an ideal, being the “big person” in a situation. His dialogues are  soliloquys of doubt, perfectly realisticly rendered.


His How to Handle a Woman is handled just right, completely  in keeping with Arthur’s realization he has lost Guenevere but still loves her.


The songs in this show are so encompassing in the way they facet every shade of emotion. Each song is not just entertainment but philosophy, wisdom, truth, all those good things artists try for years (most of them anyway) to portray – crystallizing human existence. (O.K., so I’m a sentimentalist.)


Kudos to the comic relief of  Ronald Brown as Merlin and Pellinore – magician and mentor, and errant knight, providing excellent comic relief.


Music is reminiscent of  Ferrante & Teicher  — the two pianist stars of the 50s — whose style is perfectly matched by two elevated pianos keyboarded by  James Bassi and Steven Gross who impeccably lay a splendid “bed” of melody under the voices. I really loved their style and the two should record this sound track – a bold concept in staging by the Musical Director Gross, and an economical one at that, and it works.


Sidney J. Bourgoyne, the director weaves the interaction sensitively. The staging especially the rescue of Guenevere scene with lighting high drama. The costumes use authentic armor. As Brenda Starr, yours truly’s companion remarked, she appreciates minimalist productions because you can concentrate on the performances, not the pyrotechnics.


Another  spectator advantage of seeing the classics at WPPAC is that every seat is a box seat. The actors have to act better, they are not saved by distance, and the vibrance and reality or lack thereof is instantly discernable. It is like a private command performance for royalty.The acoustics are impeccable.


Camelot is not sad,  ending with a vibrance that send us all out to be “a few great shining drops in the ocean.”


It inspires us to leave the theatre and strive for our own bright and shining moments which is why it is a classic.


Tickets are still available, so go see a classic – it’s always guaranteed at White Plains Performing Arts Center. Tickets, 328-1600 or visit the theatre’s website, and select your seats at  www.wppac.com. There are limited seats still available for shows at 8 Friday, 8 Saturday, Sunday at 2 and Sunday at 7.

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School District Holds Back $24 MILLION Bond Issue, Awaits Lower Interest Rate

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WPCNR SCHOOL DAYS. By John F. Bailey. October 2, 2008: The White Plains City School District is holding back the $24 Million in municipal bonds it has plans to float to complete its district-wide renovation of the rest of its elementary, Middle and High Schools, and its anticipated certiorari tax refund payments, Assistant Superintendent for Business Fred Seiler advised WPCNR today.


He said the district has to underwrite the bonds between January and June 2009 to keep the project moving and meet expected certiorari obligations.. Previously the $50 Million the district borrowed for the capital project was costing the district an average 4% interest, ranging depending upon maturity from 3-3/4% to 4-1/4%. He said with New York City having to pay interest of 5-3/4% recently to attract buyers for  New York City bonds that he hoped the rates would come down from the current highs. He said the markets were too unstable now to float an issue. He said the district would keep evaluating the situation with its underwriter.


Should the district be forced to pay 6% interest, for example, this higher rate would increase school bond payments above the $10.3 Million in debt service expected in 2010-11. Typically, Seiler said they might have an interest payment in June, and no principal payment on the new $24 Million issue until January 2010. He said he could speculate at this time how much higher the debt service would run should the district interest rate be driven up to today’s 6% levels.

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Wall Street Surge in Layoffs Not Surging Yet — NY Labor Dept.

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WPCNR QUILL & EYESHADE. By John F. Bailey. October 2, 2008 UPDATED 4 PM EDT with Labor Statistics: The New York State Department of Labor  is not seeing the layoffs predicted for Wall Street appearing yet in significant numbers in the Department filings for unemployment, according to the Department’s Communications Office.


 “There is a little upswing, but we are not seeing numbers being predicted. Not yet.  Do not forget when some Wall Street personnel were laid off  they were greeted on the street with billboards saying we’ll hire you. They immediately got other jobs. If they do not apply for unemployment benefits, we do not count them,” stated Chris Perhan of the state Labor Department Communications.



On Tuesday, the Comptroller’s Office  forecast as many as 25,000 persons would lose their jobs in the securities industry, and could be as high as 40,000 by March 2010,  and could result in “as many as three jobs (per securities industry layoff) lost elsewhere.”


If terminations increase as expected, they will add to the financial burdens of companies making the layoffs, Ms. Perhan said. The way unemployment benefits are funded is through assessments on state employers and employees. When a person is let go,  she said, the employer’s Federal Unemployment Tax Assessment increases the next year, for each person terminated. The new assessment is usually given to the employer in the spring of the year.


 One could see a scenario where layoffs would be held off until January, to avoid FUETA increases until 2010, by  which time things might turn around. This advantage might be  a reason why the beginning of predicted unemployments have not escalated. Any layoffs will add to company’s burdens, but of course, but not to the extent of carrying the employees on payroll now if an employer cannot afford to.


Perhan said the percentage of payroll the employer usual pays is determined by a “floor” or minimum FUETA assessment, and is raised according to the number of employees the firm let go the previous year. She reports the FUETA rate for 2008 is 6.2%. Employers must pay 6.2% of the first  $7,000 in salary per employee, and that holds through December, 2008. She had no estimate at this time as to what any increased assessment would amount to per employee by next spring. She could not give a figure for how much the rate goes up per number of firings. 


The Comptroller’s Office this week not only predicted the job losses, but also stated business taxes wre down $366 Million year to year from last year, while personal income tax collection for the first six months of 08-09 were $2.7 Billion higher, but was slowing. The Comptroller’s office noted Wall Street Bonuses on which the state collects taxes expected to be 50% lower amounting to only $16 Billion.


On September 18, a State Labor Department news release stated New York State’s private sector employment increased over the month by 3,000, or less than 0.1 percent, to 7,261,200 (seasonally adjusted) in August 2008.


In addition, New York State’s unemployment rate, after seasonal adjustment, increased from 5.2 percent in July 2008 to 5.8 percent in August 2008 — its highest level since June 2004. New York City’s seasonally adjusted unemployment rate was 5.8 percent in August 2008, up from 5.0 percent in July 2008. The rate in the balance of the state outside of New York City also rose over this span, from 5.3 percent in July to 5.7 percent in August 2008.



“New York State’s labor market indicators reported mixed signals in August. Although the state did add 3,000 private sector jobs, the unemployment rate increased from 5.2 percent in July to 5.8 percent in August. This 0.6 percentage point jump represented the largest monthly increase in the state’s rate since January 1991,” said Peter A. Neenan, director of the Division of Research and Statistics.


The Job Trends by Type of Employment July 2007 to July 2008:



































































Industries with Job Gains:
  Educational & Health Services   +37,400
  Leisure & Hospitality   +11,500
  Government   +7,200
  Other Services   +4,800
  Information   +2,900
  Professional & Business Services   +2,800
  Trade, Transportation & Utilities   +2,400
  Natural Resources & Mining   +200
 
Industries with Job Losses:
  Manufacturing   -17,900
  Financial Activities   -9,400
  Construction   -2,200
 


 

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Zoning Board Overrules Building Commish.OKs Sax Woods Sr Asstd Living Proj, 4-1

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WPCNR  ZONING ZEN. By John F. Bailey, October 1, 2008: The Zoning Board of Appeals tonight approved Renamba LLC’s application for a variance to build an Assisted Living facility of 115 units in the pristine wilds of Saxon Woods along side the Mamaroneck River.  The vote was 4 to 1  rejecting former Building Commissioner Mike Gismondi’s  interpretation of the zoning ordinance and the City of White Plains 8-year history of opposition to the project that has stood for almost a decade. The reason given was that the city stood to be violating Fair Housing law which prohibited restricting “reasonable use.”



 A Buzz in the Rotunda: Renamba Group foreground, in cordial, confident triumph, while residents of Saxon Woods mill about  in the shadow of the Legal Department in background, in rotunda of City Hall in stunned disbelief at the zippy Zoning approval. Unofficial city records indicate it was the swiftest approval ever.


The 4-1 approval was executed  at the top of the agenda swiftly. Very swiftly. The meeting must have started at the second the big clock in the Council Chambers struck 7 PM and took 6 minutes. (Yours truly arrived at 7 on the nose by our ZULU TIME synchronized watch and it had started.)


Tonight’s decision clears the way for construction of the 115-unit 3 story apartment complex on Village of Scarsdale property, allowing access through a 25 foot variance paralleling  the Ethical Culture Society driveway entrance off Saxon Woods Road.






Cecilia Bikkal, the Chairperson of the Zoning Board made a brief statement after tonight’s vote saying that permitted uses of the property in question in the White Plains section of the property included similar types of structures that generated large volumes of traffic.  


She said that the White Plains  R1-12.5 zone permits  building a school, church, or hospital on the property,owned by The Ethical Culture Society of Westchester, and the property is “allowed reasonable” use of the property. She said that prohibiting left turns  onto Saxon Woods Road departing the Ethical Culture Society driveway, and prohibiting left turns out of Saxon Woods Road onto Mamaroneck Avenue Northbound, adding shrubbery and noise screening, “was the best the zoning board could do.” 


WPCNR arrived at 7 sharp,  coming in at the midpoint through ZBA member Michael Romar’s explanation of the Zoning Board’s decision which was not immediately available to the media.


 Mr. Romar’s statement indicated that the Zoning Board of Appeals based its decision on the Fair Housing Law which permits “reasonable use” of property.  Michael Turschmann, an attorney who has submitted two lengthy opposition letters on why the ZBA could safely reject the proposal based on previous court decisons,  said  in his opinion, the ZBA use of the Fair Housing Law was being stretched here because the Fair Housing Law he said applied to preserving residential homes, not the building of institutions.


Silence from the ZBA


At its September meeting on this project,  the Zoning Board was all over the proposal, Brian Keating particularly asking the applicant to explore another entrance off Mamaroneck Avenue through the Saxon Woods Pool property. The Planning Board voted  4 to 1 in August saying it had no objection to the project. Tonight the Zoning Board quietly approved the project without hearing any exploration of the Saxon Pool entrance possibility in public by the applicant.


The Common Council has not shown any interest in weighing in on this  project which will change the character of the Saxon Woods, and create an as yet, unknown increased flow of traffic at the Saxon Woods Road/Mamaroneck Avenue interchange throughout the day.



Ready to Go:Amba Sharma, the Manager of the project, told WPCNR, he already had $30 Million in financing to build the project, and he was applying for Building Permits shortly.  Sharma said the complex-to-be had utilities cleared, (White Plains had previously threatened to withhold water service to the project to prevent its construction). There were no further obstacles to be overcome.Mr. Sharma did not have a date for construction to begin, but promised to invite the press to the ground-breaking.


The decision tonight brings to a close an eight year saga.


One Saxon Woods resident said, “I’m very disappointed.”


The Gismondi Doctrine Dies.


Previously the former White Plains Commissioner of Building, Michael Gismondi, in 2001 had rejected the project request for the use of the Ethical Culture Society drive on the grounds that Section 3.5.1 of the Zoning Code where a lot spans a boundary of either a district, or in this case, a municipality, a use permitted in one district or municipality(Scarsdale) can not extend into another White Plains district unless it is otherwise permitted in that district.


In the September  ZBA episode, when the hearing was extended to tonight, Renamba argued the definition of “Use” in the White Plains Zoning Code did not apply to driveways. Renamba’s attorney argued that since the driveway was not included within the definition of “Structure” in the Zoning Ordinance, a driveway was not a “Use” and therefore not regulated by 3.5.1.


Mr. Sharma did not have a date for construction to begin, but promised to invite the press to the ground-breaking.


We Don’t Want to Hear It.


 None of the dozen or so residents in opposition to the variance from Saxon Woods was allowed to speak, as Chairperson Cecelia Bikkal instantly moved to item two on the docket.   One of the leaders opposing the plan arrived at 7:06 within seconds after the matter was voted on.



 


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Paul Wood on the Economy: City Under Budget; Shorter Union Contracts Xplored

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WPCNR QUILL & EYESHADE. By John F. Bailey. Interview with City Executive Oficer, Paul Wood. October 1, 2008: Paul Wood held an exclusive interview with WPCNR this afternoon to give details on the city financial position after the first quarter. He assured the city that city financial borrowing planned for the year had been completed before the present runup in interest rates and slowdown in lending. Though the city has spoken with its underwriters on the matter of financing, he said it was too early to tell the effect on 2009-2010 issues until “the turbulence” substides.



Paul Wood, City Executive Officer confirmed WPCNR’s sales tax projection this morning that  the city was expecting $13 Million in Sales Tax in the till in the First Quarter, based on the ¼% sales tax increase. He attributed the sustained sales tax performance in the first quarter to White Plains “diverse” selection of retail outlets, saying other communities had told him White Plains was “sucking away” shoppers from their shopping centers.



The Eyeshade Process


He said that the Mayor was meeting with Department heads as he does every year with no objective to cut across the board but to achieve savings if possible. He said on going expenditures were running “slightly under” budget. It’s not unusual to pull in department heads at midyear, we’re just doing it a little bit early because of what’s going on. We do it every year to see if there are certain items they can do with out. It’s more of a priority because of the ($400,000)  cut  (the council made) in the Reserve for Financing.They cut the reserve by a point. We’re looking at rolling stock, any area where we can do things differently. We have a hiring freeze on.”


Asked if the city departments were under budget, Wood said “A majority of them are, at this point. You have to remember we’re entering a point when you have to do more with less. We have 7,000 more residents here, more people coming into the city.”


Calling in the Council Early This Year


He said that Common Council members had contacted the Mayor’s office “showing their support and concern,” but said none had offered policy suggestions on budget cutting. Wood said given the turmoil of the economy outside White Plains, that the Mayor would bring the Common Council together earlier this year, possibly in November after elections to give them the opportunity to see where the city stood and for them to give early input into  2009-2010 budget.


Holding Inflation Line the Goal.


 Wood said it was the Mayor’s goal to hold the city budget to the present inflation rate, 5% (the Consumer Price Index).


Wood said the city was not facing threats to the budget from within, but from the loss of income from the state. He said he anticipated a cut in the city’s AIM  (Aid & Incentives for Municipalities) funding from the state of $5 Million, which the city would not know until April when the budget will be presented to the Common Council. Wood said there might be other effects or mandates that the state might decide to level on cities.


The city has already presented its revised 2009-2010 projected budget to AIM and Wood said he would be sending that to WPCNR. Wood alluded to energy costs as being up, though expenditures as a whole were running slightly under budget. He said he would get an analysis for WPCNR of how much city energy costs had grown.


Union talks situation.


On the negotiation of the union contracts for police, fire, teamsters and CSEA, Wood said he could not comment. He said he felt the six year settlement Westchester County had recently announced with its Civil Service Employees Union was not a good model for any settlement in these times. Asked how the Mayor felt about the City School District and its teachers union agreement to negotiate a 2 year contract (though not settled yet), Wood said it (a shorter term contract until “things settled down” made sense in these uncertain times. He said the unions were very aware of the troubled times in talks so far.


Commenting on the school district 2-year teacher contract being negotiated, Wood observed, “I think a two year contract kind of makes sense, they’re saying here’s where they are, obviously this is a difficult year for everybody, let’s take  two years and see where we are after that. I don’t think the 6 year county contract with the CSEA was a very smart thing. I’m really pleased with the tone (of the unions) they obviously are in touch with the situation the city is in and we appreciate there efforts in providing extra services despite the interest in demand. We’re respectful of one another and very hopeful that will come to a somewhat reasonable solution to settle in the midst of this turbulence.”


Wood said length of contract was being explored with the unions


Captial Projects Funded in Summer. No Bond Issues going out Now.


On the city ability to float municipal bonds in the current market, Wood said the city had already gone out for its municipal bond needs prior to the current credit crunch.  The city, Wood said, had not withdrawn any issues they were planning to put out on the market and did not anticipate any for the next six months. The school district, conversely is looking at a $16 Million in bonding to complete their $66 Million Construction Project, $50 Million of which has already been marketed successfully, plus another $8 Million in certiorari payments.


New Certiorari Filings Threaten finances. May Require City to Bond for Settlements.


Asked if previously successful commericial property owners who have been granted certioraris about five years ago had refilled for more certioraris due to this year’s dramtic drop in the “Equalization Rate.” Wood said the city has seen the number of certiorari cases jump up over 300. Wood said the judges in order to unclutter the certiorari crunch in the court system have shown a tendency to rule quickly in favor of certiorari filers, Wood explained, “forcing us to settle more cases than we’d like.”


Wood disclosed that the city is looking at continuing a process started this year of payinc certioraris on installments with the winning plaintiffs and bonding for the certiorari payments, a process the school district used last year and intends to use again in 2009.


LCOR Financing Found


Wood confirmed Ms. Malmud’s understanding that the LCOR  55 Bank Street 80-20 Affordable Housing project has received a commitment for financing. “That’s what we’ve been told,” Wood said, saying that LCOR financing has in the past been supported by the California Teachers Retirement Fund. But, he did not know whether that fund was the source of the financing.


Asked if LCOR was proceeding with the project, drawing up site plans for submission to the council in January, Wood said ” Yes, they default if they don’t submit those drawings.”


Asked if LCOR had indicated they were no longer interested in the project, Wood said “No.”


Kensington Assisted Living nears HUD Approval.


On another ongoing city development, the Kensington assisted living project for which the city built a $19 Million Municipal Parking Garage (with space to be leased to White Plains Hospital  for parking, Wood reported  “That’s still moving forward. We spoke to them this weekend they said HUD may actually approve their request much more quickly than anticipated. These projects are assets that someone will want. There isn’t a lot of  risk out there but there are investors looking to put money into projects where performance has occurred. Look at Robert Weisz, he had no trouble financing the first new White Plains office building in 20 years.)

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