New Orleans Officials
Criticize Contracts

BATON ROUGE, La. -- Underscoring tensions over who will control the agenda for the reconstruction of New Orleans, city leaders vented frustration that the federal government already has issued large contracts for initial cleanup and rebuilding without input from local leaders.

At a meeting of the New Orleans city council yesterday, held 80 miles away in a conference room at the state capitol in Baton Rouge, Councilwoman Cynthia Willard-Lewis, whose district includes heavily damaged New Orleans East and the Lower Ninth Ward, said she was outraged that decisions regarding the rebuilding of the city so far haven't included local leaders.

Councilwoman Renee Gill Pratt told the packed meeting she was "disgusted" that an Austin, Texas, company "was cleaning the convention center," using workers brought from outside the city. Council members said local minority contractors should be playing a bigger part.

"We need to rebuild our own city with our own people," Ms. Pratt said. "Our people should be back in the city, building the temporary shelters and getting the jobs."

Last week, federal agencies announced a $100 million deal with Shaw Group Inc. of Baton Rouge, for pumping of flood water out of New Orleans and other work. Other contracts have been issued for temporary housing and repairs to certain buildings. Federal contracting officials couldn't be reached yesterday.

Addressing the council, New Orleans Mayor Ray Nagin said the expected aid amounted to an opportunity to completely rebuild the city, and urged the group not to squabble over the first federal money to arrive. "We have to fight about the right stuff," Mr. Nagin said. "There's going to be enough money for everybody. We're talking about $50 billion to $100 billion over a 10-year period."

In the meantime, Mr. Nagin said New Orleans faces an acute financial crisis. "Our last payroll was the last cash we have," Mr. Nagin said. "We're trying to get a line of credit from the federal government....We have no money."

In comments yesterday, President Bush tried to assuage concerns that the federal government will dictate how New Orleans will be rebuilt. "My attitude is this: The people of New Orleans can design the vision; the people of New Orleans can lay out what New Orleans ought to look like in the future; and the federal government will help," he said as he concluded his visit to the city. "I think the best policy is one in which the federal government doesn't come down and say, 'Here's what your city will look like.'"

Yesterday's council meeting followed a gathering Saturday in Dallas during which about 40 prominent New Orleans business representatives and professionals offered support to Mr. Nagin, according to people who were present.

William Grace, who helped organize the meeting, said the businessmen made it clear they wanted Mr. Nagin, who attended, to urge the federal Centers for Disease Control to determine as soon as possible whether there was a health risk to opening lightly damaged parts of the city, such as the French Quarter and the central business district. Mr. Nagin promised to consult with the CDC quickly, Mr. Grace said. He said the group emphasized that they considered the first phase of the disaster over and wanted to return. Separately, New Orleans officials began efforts to allow business owners to cross military checkpoints into the city. "In certain areas, everybody wants to get back in there," Mr. Grace said. "Let's do it quick."

Mr. Grace said the meeting included a briefing from Entergy Corp., a New Orleans utility, reporting that the city's core is ready to be electrified, once workers check the areas for gas leaks. Mr. Grace said the group also pledged financial support to create a panel or hire an overseer to steer the rebuilding effort. He said he personally favored creating a czar position. "You can't run a rebuilding effort by committee," he said.

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