'Done deal': Baltimore mayor defends BGE agreement against critics in WJZ exclusive

BALTIMORE -- A controversial deal that allows BGE to manage the critical system of underground cables below Baltimore has led to a battle between the city council and the mayor. 

Mayor Brandon Scott is defending the agreement, and his administration, against criticism that he was not transparent and rushed the deal through. 

Baltimore Mayor Brandon Scott spoke exclusively with WJZ Investigator Mike Hellgren about why he backs the agreement with BGE.

"Are you confident that this is a done deal?" Hellgren asked the mayor. 

"Done deal," Mayor Scott answered. "The vote that we took [February 15th] followed the rules of the charter and the Board of Estimates that were clearly stated."

Hellgren asked, "Have you ever seen anything like what happened at the Board of Estimates, the tensions spill out like they did?"

Mayor Scott answered, "The Board of Estimates has always had some tensions and political theater throughout the years. This was unprecedented, and it happened. But when you follow rules and how the rules are laid out, that's why we did the vote that way."

That deal would give BGE power over more than 700 miles of underground cables that control electricity, phones, internet and other key utilities. BGE would maintain the system and pay the city $138.5 million over the next four years, plus $1.5 million yearly to occupy the space. 

The Board of Estimates approved the agreement despite the comptroller and city council president boycotting, and insisting the vote is not legitimate.

"There was no meeting of the board of estimates," Comptroller Bill Henry said after the vote on February 15. 

At a recent investigatory hearing before the city council, council member Yitzy Schleifer said, "For a little extra money, we are gambling the future of our system."

The Board of Estimates is expected to take up the issue again on Wednesday. 

"Will there be any surprises on Wednesday?" Hellgren asked the mayor. 

"I don't believe there will be any surprises. I know we'll have a discussion," Mayor Scott said. "There will be things—everyone will make statements as folks have the right to do—and then we'll move on because this contract is done, and we know that we are going to move forward with this agreement."

Scott insists renewing a similar deal to what was already in place "wasn't an option. That's why this deal that gets us that $134 million that reduces the rate increase on taxpayers probably by $50 million is the right thing to do."

Scott also said, "I am confident that we were on the brink of litigation" had the deal not been approved.

Critics argue the new agreement gives BGE too much control and violates the spirit of a referendum voters overwhelmingly passed last year that prohibits the sale of the underground system.

They even sent a robocall to some city residents warning them, "Baltimore Gas & Electric is utilizing influence within the Brandon Scott Administration to attempt to take control of our city's underground conduit system."

"The city still owns the conduit system," Mayor Scott insisted. 

Hellgren asked the mayor if he felt this was done in the most transparent manner. 

"We had seven hours of council hearings about this. We briefed council members on this. We briefed the board of estimates on this—and the council members is actually us going above and beyond because that's not required. As you know, the council has no authority over contracts, but we did it, because it is the right thing to do."

Mayor Scott called the BGE agreement a public-private partnership—much like the work being done to renovate the CFG Bank area—formerly Royal Farms arena—in downtown Baltimore. 

"What we should be talking about now is how we move forward in making sure that this public-private partnership is being talked about in a different light but also that we think about how public-private partnerships have worked for the city," Scott said. 

"This is about us doing what's right for Baltimore. Sometimes, when you make decisions like this, they aren't going to be popular. But what the residents of Baltimore should stand on and sleep firm at night knowing is that I would never do anything that I do not truly believe is in their best interest, and that's why we did it this way."