State’s flawed contracting process comes under fire

TALLAHASSEE --
In the last two years, Florida Chief Financial Officer Jeff Atwater has agreed to let the state lose $48 million.

That’s the amount of taxpayer money Atwater spent to settle dozens of bad contracts and grants that he said could have been avoided had the state done a better job cutting the deals.

“We could have built two elementary schools with that money,’’ said Atwater, a former Senate president whose office writes the checks.

In each case, the state concluded it was not going to get what it paid for, Atwater said. “So we said, ‘This is hogwash and you know it. ’ ”

Rather than taking the company to court, the state agreed to settle the contract at a loss.

With $50.4 billion of the state’s $70 billion budget spent on vendors this year, Florida is one of the largest buyers of goods and services in the Southeast, but its contract management is haphazard and inconsistent.

Now, Atwater, Gov. Rick Scott and his secretary of the Department of Management Services, Craig Nichols, are inching toward some improvements that will change the system.

Atwater is asking the Legislature for “pre-audit” authority to review contracts before they are completed to make sure the state is getting its money’s worth.

Nichols has published a guidebook for contract negotiators, including a set of uniform standards. His agency has increased the number of agencies using the state’s online purchasing program, MyFloridaMarketPlace, to get better discounts, and DMS is working to streamline the state’s patchwork of contract procedures.

Scott has urged his agency heads to attempt to re-negotiate their top contracts to produce savings, and he recommended spending $353,000 in his 2013-14 budget to hire four full-time people to train contract managers across the state.

The state’s contracting process has been the target of criticism for years, most recently from former Senate budget chairman JD Alexander who bashed state agencies for using different methods and even different codes to buy cars, lease buildings or purchase cell phones and computers.

In 2011, an independent group hired to review the state’s online purchasing program, the 10-year-old MyFloridaMarketPlace system, found that half of the eligible state contracts were covered by the program and that the system was “hampered by poor project governance, lack of standard procurement processes… uneven executive sponsorship and continued dependence on older shadow systems and workarounds.’’

An analysis by the Herald/Times found hundreds of contracts, known as evergreens, are given terms that allow them to automatically renew, with little or no standards. Other vendors get in the door as the lowest cost bidder, but the cost is allowed to balloon with budget amendments. Dozens of contracts have been on the books with the same vendor for more than 20 years.

One of the loudest critics has been the Koch brothers-funded Americans For Prosperity, which lists as its top legislative priority the increase in oversight and transparency of the state’s contracting process. The Republican Legislature and governor’s failure to properly police the state’s contracting system has earned the organization’s charge that the process “rewards cronyism and picking winners and losers.”

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'Escape from Planet Earth' Interview

Jessica Alba, Rob Corddry, William Shatner, Sofía Vergara and George Lopez are among the all-star voice cast creating laughs in the fast-paced, animated comedy-adventure Escape from Planet Earth, and they tell ET's Brooke Anderson that it's the perfect film for the whole family.

Pics: 13 Must-See Movies of 2013

In theaters now, the out-of-this-world 3D comedy is told from the alien point of view, following the misadventures of famed interplanetary astronaut Scorch Supernova from the Planet Baab and his buddies. Trapped by evil government forces on the distant "Dark Planet" (aka Earth) and tossed behind bars in Area 51, it's up to his nerdy brother Gary to navigate the third rock from the sun's strange customs and inhabitants in order to save him.

Video: Cosmic Comedy in 'Escape from Planet Earth' Premiere

The film also features the vocal talents of Brendan Fraser, Jane Lynch, Sarah Jessica Parker, Craig Robinson, Steve Zahn, Chris Parnell, Ricky Gervais and Jonathan Morgan Heit.

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Walmart sweats Feb.

Walmart Stores had the worst sales start to a month in seven years as payroll-tax increases hit shoppers already battling a slow economy, according to internal e-mails obtained by Bloomberg.

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Walmart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales.

“The worst start to a month I have seen in my [7 years] with the company.”

Walmart and discounters such as Family Dollar Stores are bracing for a rise in the payroll tax to take a bigger bite from the paychecks of shoppers already dealing with elevated unemployment.

The world’s largest retailer’s struggles come after executives expected a strong start to February because of the Super Bowl, milder weather and paycheck cycles, according to the minutes of a Feb. 1 officers meeting Bloomberg obtained.

Murray’s comments about February sales follow disappointing results from January.

Walmart fell 2.1 percent yesterday to $69.30 in New York for the biggest decline since Dec. 12.

“As with any organization, we often see internal communications that are not entirely accurate, that lack the proper context and represent individual opinions,” David Tovar, a Walmart spokesman, said in an interview.

Murray declined to comment.

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Credit reports still not error-free

Lucky you if you’re one of the many consumers who recognize an error in your credit file and are able to successfully dispute it, get it removed and receive the credit rating you deserve.

But woe to those who find errors and still have trouble getting corrections from any of the three major credit bureaus — Equifax, Experian or TransUnion.

That’s the conclusion of a long-awaited study by the Federal Trade Commission on credit report accuracy.

Each credit bureau maintains files on more than 200 million consumers, which are used to create credit histories. The information is then used to create credit scores, which can affect consumers’ ability to get a credit card, a home loan, an apartment or even a job. The most widely used credit scoring system is FICO, which ranges from 300 to 850. The higher your FICO score, the better.

The FTC found that 26 percent of the 1,001 participants surveyed identified at least one potentially material error, such as a late or missed payment. When information was successfully disputed and modified, 13 percent of participants saw a change in their credit score.

Not all the errors resulted in a significant increase in a consumer’s credit score. But for 5.2 percent of participants, the errors were serious enough that it made them appear more risky and thus resulted in them having to pay more for products such as auto loans and insurance, the FTC said.

The Fair Credit Reporting Act gives consumers certain rights to dispute and challenge inaccurate information in their credit files. But if true errors remain on people’s reports even after they have challenged the information, the current dispute process is not serving consumers well, the FTC said in its report.

As often happens with such studies, people see what they want to see.

The Consumer Data Industry Association, a trade organization, said the FTC’s study proves that the vast majority of credit reports are error-free.

“The FTC’s research determined that 2.2 percent of all credit reports have an error that would increase the price a consumer would pay in the marketplace and that fully 88 percent of errors were the result of inaccurate information reported by lenders and other data sources to nationwide credit bureaus,” the association said in a statement.

The association is right. But when you talk about the millions of files being kept, there are still quite a number of people with incorrect information in their reports. The FTC concluded that the impact of errors on credit scores is generally modest (an average of an 11.8-point increase in score), but for some consumers, it can be large.

“Roughly 1 percent of the reports in the sample experienced a credit score increase of more than 50 points,” the report said.

Several consumer advocacy groups feel that this conclusion confirms their long-held concerns about the accuracy of credit reports.

Because the credit bureaus have become powerful gatekeepers, you ought to care about this issue even if you haven’t found errors in your report, said Edmund Mierzwinski, consumer program director for the U.S. Public Interest Research Group.

“If 5 percent of consumers overall have serious errors, that’s about 10 million adults. Sooner or later, it will happen to you,” he said.

Everyone with a stake in this issue urges consumers to take action by pulling their reports every year. Only about 44 million consumers per year, or about one in five, obtain copies of their files, according to another recent report. You have the right to get a free copy of each of your credit files once every 12 months. Just go to www.annuacreditreport.com, the only official site, to get them.

I’ve said it before, and I’ll say it again: The federal government needs to do more to monitor the systems the bureaus have in place to investigate a consumer’s complaint about an error. Far too often the furnishers of the data will just resend the incorrect information back to the bureaus.

Evan Hendricks, author of Credit Scores and Credit Reports: How The System Really Works, What You Can Do, has frequently testified in court cases and before Congress about the struggles people have in correcting their reports. Responding to the FTC survey, he said, “With FTC’s confirmation that credit report errors are all too common and harmful to consumers, it’s high time that credit reporting agencies overhaul their operations so they actually comply with the law and investigate consumers’ disputes, with actual human beings as investigators.”

Since consumers don’t control the flow of the data about them and yet this information is so vital to their credit lives, even the small percentage error rate the FTC found is unacceptable.

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Miami-Dade packed for weekend of events

Lured by sailboats and megayachts, urban street art and Romero Britto — and, of course, the lack of snow — thousands of visitors are expected to pour into Miami-Dade this holiday weekend.

The activities started Thursday morning with the opening day of the 72nd annual Progressive Miami International Boat Show at the Miami Beach Convention Center and the Yacht & Brokerage Show on the Indian Creek Waterway. Art Wynwood kicked off with a VIP preview Thursday night. And the Coconut Grove Arts Festival, in its 50th year, opens its gates on Saturday.

Combined, the events expect nearly 250,000 attendees over Presidents’ Day weekend — many of them from out of town.

“Presidents’ Day weekend is the busiest weekend here in South Florida,” said Nick Korniloff, founder and director of Art Wynwood. “It’s when the 30 five-star resorts are at the highest occupancy, when the Europeans and South Americans and Northeast residents come here. It’s a very diverse, well-cultured audience.”

Expecting similarities in audiences interested in yachts and art, Korniloff will have shuttles running between Art Wynwood in the Midtown Miami neighborhood and the Yacht & Brokerage Show near the Fontainebleau.

In its second year, the fair features 70 dealers from around the world, many representing urban street artists or selling Latin American and Asian art. That’s a jump from last year’s 53 dealers. Korniloff said he expects about 30,000 attendees this year, up from 25,000 at the inaugural event.

At the boat show, which includes locations in Miami Beach and downtown Miami, organizers anticipate more than 100,000 visitors. About 40 percent are from outside the state and a quarter of visitors are international, said Cathy Rick-Joule, show manager and vice president of the boat shows division for the National Marine Manufacturers Association.

“We’ve definitely seen a continued influence of Brazilians; you hear Portuguese spoken everywhere,” Rick-Joule said, adding that Russian, Chinese and Korean visitors have also been increasing.

Monty Trainer, president of the Coconut Grove Arts Festival, has been busy publicizing the 50th year of the event with pop artist Romero Britto, who designed this year’s festival poster and will attend at some points during the weekend.

“This is the best year for all our exposure,” Trainer said. “Romero Britto is going to be a big draw.”

The show will feature 380 artists this year, 30 more than last year, when about 118,000 people attended. Of those, nearly 40 percent were overnight visitors who came to town for the festival.

Trainer expects this year’s activities to draw a bigger crowd — with a caveat.

“If this weather holds up, we’re in business,” he said. “But if you get bad rain, all your promotions are out the window.”

On that front, the forecast is mixed. The National Weather Service calls for a 60 percent chance of rain in Miami on Friday, dropping to 20 percent for Saturday with a high near 77. Sunday should be sunny and cool, with a high only in the mid-60s. By Monday, the weather should be just about perfect for February: sunny and topping out around 74.

“When other folks unfortunately have it bad, we have it good,” said Rolando Aedo, chief marketing officer for the Greater Miami Convention & Visitors Bureau. “I think the country as a whole, with the exception of us, has been experiencing severe weather. It bodes well for our hoteliers and frankly bodes well for our winter season. We’re hearing very, very good things.”

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Simon Baker Gets Star on Walk of Fame

Today was a very special Valentine's Day for Simon Baker, as he received the 2, 490th star on the Hollywood Walk of Fame.

PICS: Candid Celeb Sightings

"It's about inspiration -- not for me, but for anyone else," said Baker when asked what the honor meant to him. "Nine out of ten people might walk across that star and not know who my name is, but someone might come along and it might inspire them."

As a young actor, Baker drew on the inspiration of those around him to gain the confidence needed to get to where he is today.

"Like a lot of young actors, I was filled with self-doubt," said The Mentalist star. "I was incredibly fortunate to meet people who believed in me more than I believed in myself."

Perhaps his biggest supporter was his wife Rebecca, whom he wed in 1998.

"My wife once gave me a card that said, 'Opportunity, having knocked, moves on.' And the most important opportunity that I took advantage of in my life was marrying her," Baker said before kissing his wife who was in attendance.

Click the video to hear what Naomi Watts had to say about her friend of more than 20 years.

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Time Inc. magazine deal may fetch a bit less

Keith J. Kelly

MEDIA INK

Time Warner’s talks to spin off most of the Time Inc. titles into a new publicly traded company controlled by Meredith Corp. were quietly started last fall, sources said.

Now that they are out in the open, insiders expect the pace of negotiations to pick up with a final deal hammered out within 30 days.

With Time, Sports Illustrated and Fortune excluded from the deal, sources say the price could drop into the $1.7 billion range — below the $2.5 billion to $3 billon or so that the entire company might have fetched.

The three titles that will stay with Time Warner are believed to have cash flow of around $80 million. The entire company posted a profit of $420 million last year on revenue of $3.4 billon, but minus those three titles, profit would have been closer to $340 million.

With an earnings multiple of five — which is the most even the best print properties can expect these days — it puts the price tag at $1.7 billion. Before the 2008 recession, quality publishing operations could command multiples of 10 times earnings.

Meredith execs are expected to stay in town through today to try and hammer out terms of the deal, which is expected to yield a new publicly traded company that includes People, InStyle, Real Simple and other women-targeted titles.

Meredith, based in Des Moines, Iowa, owns TV stations and magazines such as Better Homes and Gardens, Ladies’ Home Journal, Family Circle and Fitness.

Meredith posted cash flow from operations last year of $195 million — less than half that of Time Inc.

But Meredith, headed by CEO Steve Lacy, will have control over the new entity — and that has many Time insiders nervous.

“I’d guess that most of the centralized jobs in Time Inc. will disappear,” said one source.

Time Inc. CEO Laura Lang, who has been on the job a year, and Time Inc. Editor-in-Chief Martha Nelson, who has been there just a few months, should be feeling jittery.

There has been no sign of another suitor.

On the strategic front, rivals Hearst and Condé Nast are not interested.

Hearst Magazines, which dipped during the recession, is rapidly improving after digesting Hachette Filipacchi Media two years ago.

But another big deal as large as Time Inc. could raise anti-trust concerns.

Condé Nast parent Advance Publications still has most of a $500 million war chest from its sale of Discovery stock two years ago. However, it has a lot of headaches in its newspaper wing and has been using its cash judiciously to make small bets on digital properties.

On top of that, Time Warner CEO Jeff Bewkes wants a deal done as quickly as possible.

“Jeff wants a clean exit,” said one source. “He’s not trying to get the extra $200 million he might get if he conducted an auction.”

Penguin deal OK’d

The Justice Department gave its blessing to the proposed merger of Pearson’s book publishing unit, Penguin, with the Bertelsmann-controlled Random House.

The deal, which was announced in late October, puts best-selling Random House author John Gris- ham under the same corporate umbrella as Tom Clancy.

Bertelsmann will own 53 percent and Pearson 47 percent of the new company, Penguin Random House, which will be the world’s No. 1 English-language publisher.

The deal still needs clearance from the Canadian Competition Bureau and the European Commission, among others, but both companies said they expect the deal to close in the second half of the year.

Adweek goings-on

It was not all pink slips at the restructuring of Guggenheim Digital Media — formerly Prometheus Global Media — earlier this week.

At Adweek, James Cooper has been running the show since Michael Wolff was given the heave-ho in October 2011, but he still had the title of executive editor. This week, new CEO Ross Levinsohn promoted Cooper to editorial director of Adweek and gave him control of digital content and production.

Levinsohn is decentralizing the digital operations and pushing it down to individual editors Bill Werde, editorial director at Billboard, and Janice Min, editorial director at the Hollywood Reporter.

Exit at Vogue

Laurie Jones, managing editor of Vogue and Anna Wintour’s right-hand woman, is stepping down Feb. 28. One of her claims to fame was hiring a young Wintour as a senior editor of New York, where Jones was the managing editor.

A few years later, after Wintour had edited British Vogue, HG and American Vogue, she returned the favor and hired Jones at Vogue.

kkelly@nypost.com

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American Airlines, US Airways announce merger

After a nearly yearlong courtship, the union became official Thursday: American Airlines and US Airways have formally announced plans to merge.

An early morning announcement by the airlines confirmed reports widely circulated after boards of both companies approved the merger late Wednesday.

The move brings stability to one of Miami-Dade County’s largest private employers more than a year after the airline and its parent company filed for bankruptcy protection, leaving the fate of thousands of employees — and the largest carrier at Miami International Airport — in question.

According to the Thursday announcement, the deal was approved unanimously by the boards of both companies, creating the world’s biggest airline with implied market value of nearly $11 billion, based on the Wednesday closing price of US Airways stock. The airline will have close to 100,000 employees, 1,500 aircraft, $38.7 billion in combined revenue.

The deal must be approved by American’s bankruptcy judge and antitrust regulators, but no major hurdles are expected. The process is expected to take about six months, according to a letter sent to employees Thursday by American CEO Tom Horton.

Travelers won’t notice immediate changes. The new airline will be called American Airlines. It likely will be months before the frequent-flier programs are merged, and possibly years before the two airlines are fully combined. The new airline will be a member of the oneWorld airlines frequent flier alliance.

And for Miami travelers, it’s unlikely that much will change at any point. American and regional carrier American Eagle handled 68 percent of traffic at the airport last year, while US Airways accounted for just 2 percent. American boasts 328 flights to 114 destinations from Miami.

“We don’t expect any substantial changes at MIA if the merger occurs because our traffic is largely driven by the strength of the Miami market and not the airlines serving it,” said airport spokesman Greg Chin.

American has said for more than a year that its long-term plan calls for increasing departures at key hubs, including Miami, by 20 percent. That pledge has already started to materialize; in recent months, the airline has added new service to Asuncion, Paraguay and Roatán, Honduras.

During its bankruptcy restructuring, about 400 American employees lost jobs, leaving American and its regional carrier, American Eagle, with 9,894 employees in Miami-Dade County and 43 in Fort Lauderdale. US Airways has few employees in the area.

“It really isn’t going to affect Miami in a very major way anytime soon,” said Michael Boyd, an aviation consultant in Evergreen, Colo. “Only because US Airways isn’t a big player in South Florida.”

At Fort Lauderdale-Hollywood International Airport, American and US Airways combined would still only be the fifth-largest airline after Southwest, Spirit, JetBlue and Delta, a spokesman said. The two airlines have little overlap in routes from Fort Lauderdale.

Despite the lack of major changes, Boyd said the merger would be a good development for Miami.

“It should be positive for the employees and it should be positive for the communities that the airlines serve,” he said.

Robert Herbst, an independent airline analyst and consultant, said US Airways will add a “significant amount” of destinations in the Northeast, including Philadelphia and Washington, D.C.

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Jewish liturgical music festival continues through Sunday

The Fifth International Festival of New Jewish Liturgical Music is being celebrated in Miami through Sunday. It will feature new works from composers from throughout the United States, Canada, Israel and the United Kingdom. The music reflects a diverse range of musical styles and traditions.

The six-day festival is presented by Shalshelet: The Foundation for New Jewish Liturgical Music and will include school and youth workshops and Shalshelet composers in residence at area congregations over Shabbat.

The main festival events will include workshops from 10 a.m. to 2 p.m. Sunday at Beth Torah Benny Rok Campus, 20350 NE 26th Ave., and the Festival Concert at 7 p.m.

As a part of the festival, composer Raquel Pomerantz Gershon, who is known for her uplifting, original take on Jewish sacred music, will sing her own songs and traditional prayers in the Kabbalat Shabbat service at 6 p.m. Friday at Beth David Congregaton, 2625 SW Third Ave. The service will be followed by a Shabbat dinner.

Gershon started composing songs in her teens and has won awards at past Shalshelet festivals. She has performed throughout the United States, Europe and Israel. She has recorded three CDs, including "Jerusalem on My Mind," and lives in Dallas with her husband Rabbi Bill Gershon and their three children.

For more information on the Kabbalat service and the dinner following the service, call 305-854-3911 or go to www.bethdavidmiami.org.

Wenski to say Mass for members of religious orders

Archbishop Thomas Wenski will celebrate a thanksgiving Mass for all consecrated men and women, who have chosen religious life. The Mass will be at 5:30 p.m. Saturday at St. Mary Cathedral, 7525 NW Second Ave. The Archdiocese of Miami will also celebrate those who this year will celebrate their 25th, 50th and 60th anniversaries of consecrated life.

Also, on Feb. 24, the 2013 Archbishop's Motorcycle Poker Run will take place at Our Lady of the Holy Rosary-St. Richard Catholic Church at 7500 SW 152nd St. in Palmetto Bay.

The event starts at 8 a.m. with Mass; registration at 9 a.m., and Kick Stands up at 9:30 a.m., with the poker run concluding at Peterson's Harley Davidson, 19400 NW Second Ave in Miami Gardens.

Registration is $25 for rider entrance fee, and includes a commemorative T-shirt. The winning hand receives a $500 Peterson's Harley Davidson gift card. Proceeds will benefit Catholic Charities and St. Luke's Center.

Art exhibit highlights graffiti

Catalyst, a program geared toward reaching out to the hip-hop youth culture in Miami and its sponsor, Greater Miami Youth For Christ, will have its first Graffiti Art Exhibit from 7 to 10 p.m. Friday at Pyramid Art Studios, 8890 SW 129th Terr in The Falls Art District.

Vivian Stigale, Catalyst spokeswoman said the exhibit is called "26," and will feature the work of 26 different street artists.

"It takes much skill, dedication and strength to do graffiti — aerosol art and street-style murals — and is often misunderstood and is frequently criminalized," Stigale said.

The Catalyst program, founded nearly a decade ago in Miami Springs by Joel Stigale, allows emcees, break dancers, graffiti artists and DJs to practice their art in a safe, drug-free environment while being challenged to embrace a relationship with Jesus Christ.

For more information call Bonnie Rodriguez or Vivian Stigale at 305-271-2442.

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Artists You Should Know: Emeli Sande

British recording artist and songwriter Emeli Sandé is already making waves in the UK and hopes to become the latest in a growing list of British musicians that have taken over the world in recent times. Her debut album Our Version of Events is the UK's biggest selling album of 2012 and with her lyrically rich songs powered by an incredible voice, I have no doubt she is the next Global superstar. I recently chatted with Emeli before her gig at the ChapStick Sessions Concert in partnership with MySpace. Check out our full interview below and be sure to watch the concert footage above for a special performance of her latest single, Next To Me.

PICS: Candid Celeb Sightings

ETonline: You are one of music's rising stars, have a number one album (UK) for Our Version of Events, sang at the open and closing of the Olympics, and a new hit single Next To Me, how has the ride to fame been for you?

Emeli: It definitely feels surreal. It's been an incredible year and so much has happened that I didn't expect to happen so quickly. It's definitely been the type of year that you dream about as a kid so I'm very happy.

How much would you say your life has changed?

Dramatically it's definitely changed a lot. But I try to keep grounded by just focusing on the music so that part hasn't changed. But day to day it's so busy and you have less and less time to have alone and to write but it's all good that's why you do it in the first place.

A lot of wonderful talent has emerged from the UK in recent years so I've got to ask you, what's in the water over there??

(Laughs) Yeah I'm not sure! It feels like a really good time and I'm really proud to be part of this kind of new generation of musicians that are doing something quite creative. I think we all feel kind of free to experiment with different genres and it's such a small place so we all know each other and can learn from one another.

Tell me about your writing process. Are certain types of songs more easily driven by a lyric or music?

Sometimes when I play something on piano, the tone of it can inspire a feeling. But usually it's a concept that will pop in to my mind or a phrase or if I'm reading something it will spark something or a different way of thinking about the same subject. Usually it's the words but sometimes when I sit at the piano it all falls into place.

What would you say is your favorite lyric you've ever written?

I really like "when the floor is more familiar than the ceiling," just because whenever I sing that lyric I imagine somebody stuck to the floor, someone stuck to the ceiling. I've always been inspired by people that can make you see things so clearly with few words. And that's what I try to channel when I'm writing.

Is there any artist you're hoping to collaborate with in the future? Who are you currently listening to?

I think Drake is amazing lyrically; he's really doing something different I think. I love Frank Ocean as well. There's a lot of new people too, Ed Sheeran ... there's a lot of people I think are great. I love Rihanna, everyone does, and I think what she's doing is very honest and I really respect that.

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