Mayor de Blasio on COVID-19 and Items of Concern July 30, 2020

 Mayor Bill de Blasio: Good morning, everybody. When we wake up to news that’s almost impossible to comprehend, and today is one of those days, and I'm going to talk about this and I'm going to talk about how troubling it is, but I'm also going to remind us that we're going to have to fight through everything that's being thrown at us, just like generations before. This is an extraordinarily difficult time, layer upon layer of crisis, but we won't give up in the midst of this. And I have to say, sometimes you see things that just are astounding, even with all the shocks we've experienced recently. So, the news this morning, the single largest drop in the gross domestic product of this nation in its history. That's what we've lived through over these last five months. It's almost impossible to comprehend. As recently as February, a thriving economy, this city, in many ways, the strongest it's ever been, and look what we all have been put through. And look at the human cost, look what's happening in every neighborhood of the city to hardworking families. Look how much people have been through, and there's so much more ahead. That's the honest truth. We, of course, need to recognize, first of all, the impact on lives, the impact on families in terms of those we've lost. Our nation now has lost over 150,000 people. And as people are grappling with that pain, as people are trying to find a way forward in their lives. One of the few things that helped was that unemployment support from the federal government – that is expiring tomorrow. People depended on those $600 checks, and now they're gone. So, it's sobering. It's painful. We cannot be defeated by it, but we have to look at it squarely in the eye and deal with it.

 

So, I think a lot of people, even some people had supported President Trump are going to look at that and say, no, that is abrogation of responsibly, but, more importantly, that's in the assault on our democracy and it cannot stand. We need to have that election on time. We need to have the election so the American people can make their decision. That election has less than a hundred days away. A new government is less than six months away, potentially, that could help us to move forward. So, that election must happen. But, in the meantime, every one of us needs to fight for that stimulus. And think about, again, the human reality for so many families, what it's going to mean to no longer have the support they were getting. Just to think about what people will not be able to afford. There are families right now, working class families, even middle-class families trying to choose between food or medicine or the basics of life. And those choices are going to get tougher and tougher. We're going to be there – we're always going to be there for the people that city, so we're always going to provide free food for anyone who needs it, we're going to provide free health care for anyone who needs it. But the burdens are getting greater and greater. So, what can we rely on? We can rely on each other in New York City, because we've proven time again that New Yorkers stand by each other, support each other. This city will do everything we possibly can to help the people in the city. And I know in every neighborhood there are people helping, helping each other through. And we're going to have to lean hard on each other to get through this crisis.

 

Now, while our federal government isn't acting, I want to give credit to New York State, because they're doing something that's going to reach a lot of people. And eligible New York State residents will have an opportunity to get additional unemployment benefits, up to 20 additional weeks of unemployment benefits. That's crucial for a lot of families. So, anyone who qualifies for this, please take advantage of this right away. You can go online at labor.ny.gov and get that support. And we have to, here in the city, keep helping people to survive, to move forward business by business, job by job, person by person. We know that our recovery will depend on building back jobs and it will be painstaking work. Our federal government used to know this. A great New Yorker, Franklin Delano Roosevelt, use that concept of giving people jobs in their hour of need, that was one of the most foundational ideas the New Deal. That's how we got out of the Great Depression. One day, I want to believe our federal government will get it again and fund a massive jobs program so people can really get the employment they need and their families can come back and our economy can come back. But, in the meantime, what we need to do is prepare people for the jobs that are starting to come back, even if it's much slower than we want and working toward the day where people get back on their feet. So, our Department of Small Business Services is, right now, providing free training to get people ready to come back into the economy. There are areas of the economy that are still strong and will grow again. There are jobs that need to be filled. We need to get people ready for them. And here to tell you how we're going to do it, our Commissioner for Small Business Services Jonnel Doris.

 

Commissioner Jonnel Doris, Small Business Services: Thank you, sir. As you said, Mr. Mayor, New Yorkers have been going through a hard time and many have lost their jobs of no fault of their own. We know that this is in our immigrant community, our people of color, and also our young people who are getting hit the hardest. But we're here to help at SBS, and we've been doing that throughout this pandemic. We're here to provide the training, the resources that they need. We've already connected and worked with 37,000 New Yorkers. We will continue to work with additional New Yorkers as they call into our hotlines and seek the support that they need. We are training them in in-demand skills for our tech industry, health care, industrial, media and entertainment industry. We are working with them in home health aide, in commercial drivers as well. We're also working with our workforce one centers, 18 workforce one centers across the city who have been working virtually to assist New Yorkers to get jobs that they so critically need.

 

Since mid-March, we have worked with over 500 employers to fill 9,800 jobs. Whereas we're currently working with those employers to fill 3,600 jobs. So, listen, if you're a New Yorker and you need assistance and you need support, please make sure that you visit us on our website nyc.gov/workforce. But before I turn it back to the Mayor, you know, this work is critical work and our essential workers have been doing an amazing job, getting us back to where we are now. We had some job seekers who came into our virtual workforce one centers who were looking for support and help and we were able to help them. John, who was looking for a pivot in his career, didn't have a job, was seeking help and support, came to our workforce one center. He's now employed as a transport and nurse – transport- nurse in our Health + Hospital care system – that's happened. As of April, we're continuing to do that to hundreds of New Yorker. Also, Maria, at foreign-born New Yorker who was seeking also work, who was out of work because of COVID, was able to come back and get support from my workforce one centers and get a job and is not working in our Health + Hospital systems as well, and also working with patients who are tested positive, the elderly, in particular, for COVID-19. So, look, we're here to help and assist you no matter what your concerns and needs are. You can call 3-1-1 or you can meet us nyc.gov/workforce.

 

Mayor: Thank you very much, Jonnel. Appreciate what you and everyone at Small Business Services is doing to help people get back on their feet. So, this is something we're going to be talking about for a long time – how are we going to bring back New York City, how we're going to bring back jobs, how we’re going to get people connected to jobs, how are we going to help people get into the industries that will grow again. We have a lot of work to do ahead in the city and we're going to be talking about a lot over the coming weeks and months. But we continue to face the immediate challenges. And right when we're dealing with this huge difficult news on a national scale, we've got an immediate challenge right here in Brooklyn that I want to bring to your attention. We got a warning this morning from Con Edison, and there is a problem in Southern Brooklyn. I really want to urge people to act quickly. We've got to protect our electricity supply for all New Yorkers. We've got to make sure we avoid any disruptions in our electricity. Right now, there is a problem with some of the equipment in Southern Brooklyn. And so, if you live in the following neighborhoods, I'm going to you to pay special attention, and I'm going to ask for your help. So, residents of Bay Ridge, Fort Hamilton, South Park Slope, Greenwood, and Sunset Park. Again, Bay Ridge, Fort Hamilton, South Park Slope, Greenwood, and Sunset Park. If you live in those neighborhoods, your electric supply is in danger right now. There's something you can actually do to help us address this, which is to avoid using major appliances, avoid washers, dryers, microwaves, limit air conditioning use as much as possible. Hopefully, this is something that gets resolved in the course of the day, but every-day people can make an impact here and we really want to make sure you did not have your electricity disrupted. So, everyone, please take this warning seriously, please act on it, and we will do everything in our power, and we will push Con Ed hard to resolve this situation quickly.

 

All right, going to go now to our daily indicators. Number one, daily number of people admitted to hospitals for suspected COVID-19, threshold is 200 – today, 87 patients. Number two, daily number of people in Health + Hospital’s ICU’s, threshold 375 – today, 299. And number three, percentage of people testing citywide for COVID positive, the threshold 15 percent – today, again, this good number we've been at for a long time, two percent.

NYS Office of the Comptroller DiNapoli Announces State Pension Fund 2020 Year End Value

DiNAPOLI: STATE PENSION FUND VALUE

$194.3 BILLION

-2.68 Percent Return in State Fiscal Year 2019-20          

Pew Ranks Fund as Nation’s Second Best Funded

Fiduciary Review Gives Fund Management High Marks

New York State Comptroller Thomas P. DiNapoli today announced the New York State Common Retirement Fund (Fund) had a -2.68 percent return on investments in the state fiscal year (SFY) that ended on March 31, 2020, reflecting a slight decrease as a result of the COVID-19 pandemic. The Fund ended its fiscal year during the early outbreak of the pandemic in the United States with a value of $194.3 billion. Globally, assets swiftly recovered in the second quarter of 2020.

“Despite very solid returns through February, the coronavirus sent markets into a tailspin just as we were closing the books on our fiscal year,” DiNapoli said. “The Fund has already recovered much of those losses, but volatility and uncertainty will persist until our public health crisis is resolved. Fortunately, the state’s pension fund entered this crisis as one of the strongest in the nation, and remains well-positioned to weather these challenging times and provide retirement security for our members for years to come.”

In June, the Fund was ranked by Pew Charitable Trusts as the second best-funded pension fund in the nation with a funding ratio of 98 percent, based on 2018 data. An excellent funding ratio means the New York State and Local Retirement System (NYSLRS) has the funds on hand to provide retirement security to its more than one million active state and local government employees, retirees and their beneficiaries. The Fund's value reflects retirement and death benefits of $13.25 billion paid out during the fiscal year.

Employer contribution rates are determined by investment results over a multi-year period along with numerous other actuarial assumptions, including wage growth, inflation, age of retirement and mortality. Contribution rates are determined based on recommendations from the Actuary in September. Integral to the Fund’s strength have been state and local governments, who consistently pay their contributions in good times and bad.

Every three years the Fund is required to undergo an independent Fiduciary and Conflict of Interest Review. The Review, most recently performed by Duff & Phelps, examines the Fund to ensure it is well-governed and ethically and efficiently managed for the sole benefit of its members and beneficiaries.

The latest Review found that the Fund “has a strong governance framework with sound internal controls and is managed efficiently and effectively.” The report, which involved interviews with more than 30 staff, including Comptroller DiNapoli and the Fund’s Chief Investment Officer Anastasia Titarchuk, concluded that “The Fund is demonstrating a high level of operational transparency and in many cases appears to be in the vanguard of industry standards in this area.” Additionally, the report found “the Comptroller and the CRF Staff manage the Fund to the highest level of ethical standards.”

As of March 31, 2020, the Fund had 49.07 percent of its assets invested in publicly traded equities. The remaining Fund assets by allocation are invested in cash, bonds and mortgages (26.23 percent), private equity (11.19 percent), real estate and real assets (9.66 percent) and absolute return strategies and opportunistic alternatives (3.85 percent).

The Fund’s long-term expected rate of return is 6.8 percent. The Fund’s value and rate of return in prior years is available online: https://www.osc.state.ny.us/sites/default/files/press/documents/pdf/2020-07/nyscrf-values-chart-2020.pdf

Council Member Ruben Diaz Sr. - UBER AND LYFT ALIVE AND WELL BUT YELLOWS ON LIFE SUPPORT…WHY?

You should know that the NY Post reported today that “NYC’s cabbie workforce down 75 percent amid COVID-19 but Uber and Lyft on Upswing.” 7-29-2020 The sort went on to report that “June saw 251,696 trips per day for “high volume for hire services” …according to the TLC. 

You should also know my dear readers that the term “high volume FHV” was enacted into Law by my legislation in 2018, which created this new category. While I was Chair of the FHV Committee, the first public hearing focused upon driver suicides and the market domination of the industry by Uber and Lyft. The result was legislation which I wrote in order to level the playing field. 

While all others in the industry, Black, Green, Yellow, Livery were being regulated by hundreds of rules and paying thousands of dollars in fees to the TLC, Uber and its counterparts were operating without spending a dime, and without any rules. The bill I wrote required the TLC to regulate any for-hire car service which dispatched more than 10,000 vehicles daily, ( High Volume FHV) in several ways including the payment of a fee for each license in the amount of $380,000.00 It was demonstrated by the hearings that in this manner those who were already operating and playing by the rules and paying NYC for the privilege, ( yellow, green, black, livery) could better compete with the newly iPhone dispatched rides, subsidized at ridiculously low rates. Not only were these $5 rides taking from the other car services and taxis but from the subway and busses as well. 

My bill was signed into law 8-14-18 by Mayor Bill de Blasio and is known as Local Law 149. The TLC was requited to issued regulations within 90 days, but the TLC took almost twice this amount of time. As the NY POST article stated, “according to the TLC …” high volume for hire services” saw a jump in daily riders while all others were depleted since February 2019. The Uber drivers were also “earning more than their taxi counterparts” during this period, $1,160 weekly for Uber and $262.00 for others. 

I was amazed, dear Readers. My bill local law 149 was duly enacted, and then the TLC promulgated the regulations, almost two years ago. Why did my bill fail to achieve a level playing field? The answer is shocking. Although the TLC keeps track of the daily data of rides and driver income for “high volume FHV,” it seems that none of the “high volume” FHV such as Uber or Lyft has ever filled out a proper application or paid any fees to the TLC. None. Zero. The TLC is collecting data but not any money from these high-volume operators, and they are not regulating or issuing tickets to them either. The Law, known as Local Law 149, is simply being ignored by the TLC and has been for two years. No wonder the Uber drivers are making five times what the others are making. No wonder Uber is grabbing the 75% percent of ridership the others lost. Most shocking, the application which the law requires all high volume FHV to fill out was only posted online with the TLC in June last month. 

Someone should investigate this. It is troubling to think that somehow this has been done with the intention to help Uber and LIft and not the Yellow and the rest the industry.

This is Councilman Rev. Ruben Diaz, and this is what you should know.  

Assemblymember Nathalia Fernandez - Virtual Townhall for Small Businesses and Employees has been POSTPONED

Virtual Townhall for Small Businesses and Employees has been POSTPONED

Please be on the lookout for when we update the date and time of the new town hall. Thank you.

DISTRICT OFFICE 2018 Williamsbridge Road Bronx, NY 10461 718-409-0109

ALBANY OFFICE LOB 530 Albany, NY12248 518-455-5844

 

Assembly District 80 | district80@nyassembly.gov

Yankee Stadium Business Area Gets Ready For Friday Home Opener

  The delay in the New York Yankee home opener gave some area businesses extra time to set up for the weekend series with Yankee arch rival Boston Red Sox. Stan's Sports Bar, Across from the 'Real House That Ruth Built' was putting on finishing touches for Opening Day 2020. It may be after the traditional All Star Game time, no fans in Yankee Stadium for the home opener, no patrons allowed to eat or drink inside, but Stan's Sports Bar is looking for fans to come out across the street from Yankee Stadium for a beer, drink, and some of Stan's great food as they watch the game against the Red Sox on televisions outside, as they did inside during an away game. 

As is now the standard in New York City, all restaurants and bars can not have any patrons eating or drinking inside of the premises, only outside. Many bars have been fined by the State Liquor Authority, and some have lost their liquor license for disobeying that special COVID-19 law. While he has lost half the seasons worth of business, Stan's owner Michael Rendino has hopes for the second half, playoffs, and World Series crowds.

Photo 1 - A view of Stan's Sports Bar touting the slogan 'Across from the Real House That Ruth Built'. Street barricades are being built to hold tables and chairs for outside eating and drinking.

Below - A look inside Stan's Sports Bar.

Above - Tables and chairs await for the home opener to be placed outside in the street cafe area. 

Below - Stan's owner Michael Rendino being interviewed about his hopes for the rest of the baseball season.

   

Manhattan U.S. Attorney Announces $2.775 Million Settlement Of Medicaid Billing Fraud Case Against New York City And Computer Sciences Corporation

  

Under the settlements, which were approved yesterday by U.S. District Judge Jed S. Rakoff, the City and CSC agreed to pay a total sum of $2.775 million, with $1,585,435 being paid to the United States and the remaining amount to the State of New York.  As part of the settlements, defendants admitted, acknowledged, and accepted responsibility for conduct that resulted in the City having received payments from Medicaid for EIP services that Medicaid would not otherwise have made pursuant to its payment regulations and procedures.

 Acting U.S. Attorney Audrey Strauss said:  “Medicaid covers vitally needed medical care for millions of people in New York.  Compliance with billing requirements ensures the financial integrity of the Medicaid program.  This Office is committed to holding recipients of Medicaid funding and their billing agents responsible for complying with these billing requirements.”

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the state pay for that care.  HHS-OIG will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding and ensure that it is used properly.”

As alleged in the complaint filed by the United States in September 2016, the City was responsible for paying for EIP services for young children in New York City and then was permitted to seek reimbursement from private insurers, Medicaid, and other funding sources.  In 2007, the City retained CSC as its billing agent to submit EIP reimbursement claims.  Although the City and CSC knew that Medicaid rules required them to take reasonable measures to obtain private insurance coverage before submitting EIP claims to Medicaid, they frequently ignored that billing requirement.  For example, although the City knew that it received no response from private insurers for many EIP claims, the City and CSC failed to contact those insurers in a significant number of cases to follow up on the claims and determine the reason for the lack of a response.  Instead, the City instructed CSC to treat those claims as having been denied by the private insurers and submit them to Medicaid using a code – known as “0Fill” – to indicate there was in fact no private insurance coverage.

In the two settlements, the City and CSC made numerous factual admissions.  The City admitted, acknowledged, and accepted responsibility for, among others, the following conduct:

• the City was responsible for the provision of EIP services to eligible children in New York City, including preparing individualized family service plans, contracting with and paying treating providers such as audiologists and speech therapists who delivered EIP services, and seeking reimbursement for the EIP services provided to eligible children;
• in 2005, the City issued a request for proposal for a new fiscal agent for EIP, and a corporate predecessor of CSC responded to that request for proposal;
• between 2005 and 2007, the City and CSC engaged in discussions about the City’s expectations for CSC as the City’s EIP fiscal agent, during which the City advised CSC that when seeking reimbursement for EIP services for an eligible child with health coverage from both private insurance and Medicaid (“dual-eligible EIP beneficiaries”), the sequence of billing was to be: 1) private insurance, 2) Medicaid, and 3) EIP funds from New York State;
• in September 2007, the City and CSC signed a fiscal agent contract, after which CSC began developing systems and computer programs for the City; and
• from 2009 to 2012, the City received reports from CSC regarding instances where there had been no responses from private insurers for EIP claims involving dual-eligible beneficiaries; in a significant number of such cases, the City did not inquire with private insurers to determine the cause(s) for their lack of response, and did not direct CSC to so inquire.

CSC also admitted, acknowledged, and accepted responsibility for, among others, the following:

• in or about September 2010, CSC and the City discussed a plan to develop a procedure for designating claims as “denied” in CSC’s internal EIP database once those claims had been pending with private insurers for 90 days without an adjudication;
• the City approved that plan, and CSC proceeded to populate the claims that had received no response from private insurers after 90 days with the “denial” designation in its claims database;
• CSC also obtained permission from the City to submit those claims to Medicaid with the “0Fill” modifier – which, according to Medicaid’s claim submission guide, was to be used either for “when it is known that the primary payer or any other payer prior to Medicaid[] does not cover the services and so will not pay any amount towards the claim,” or for claims that “have been denied (the services were not covered) or were paid zero (the entire charge was adjusted, for example, applied to deductible) by any prior payer;” and
• as result, the City received payments from Medicaid for EIP services that Medicaid would not otherwise have made pursuant to its payment regulations and procedures.

These settlements arise from a whistleblower lawsuit filed under the 

Ms. Strauss praised the outstanding investigative work of the HHS-OIG, and she thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation and litigation of this case.

Former Construction Executive Pleads Guilty To Tax Evasion In Connection With Bribery Scheme

Other Executives Charged and Sentenced for Participation in Same Construction Kickback Scheme

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RONALD OLSON, a vice president and deputy operation manager for Turner Construction Company (“Turner”), pled guilty today to charges of evading taxes on more than $1.5 million in bribes he received from building sub-contractors.  OLSON is scheduled to be sentenced on December 9, 2020, at 11:00 a.m., before United States District Judge P. Kevin Castel.  In related proceedings, co-conspirator Michael Campana, a subordinate construction manager at Bloomberg, LLC (“Bloomberg”), was sentenced last Friday, July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in the same scheme.  In addition, two managers of a construction contractor – Anthony Guzzone and Vito NiGro – were respectively charged on July 14 and July 22, 2020, for evading taxes on more than $1.4 million and $1.8 million in bribes that they respectively received in the same scheme.

Acting U.S. Attorney Audrey Strauss said:  “When bribery is coupled with tax evasion, both the bribery victims and the taxpaying public are forced to bear the hidden, unfair costs of corruption.  This investigation has resulted in charges of such conduct by four defendants, one of whom pled guilty today, one of whom previously pled guilty and was sentenced last week, and the other two of whom were charged earlier this month.”

According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:

Between 2011 and 2017, GUZZONE was a construction project manager for Bloomberg, a global financial firm that was engaged in various building projects in New York City and elsewhere, while OLSON and NIGRO were executives at Turner, which performed construction projects for Bloomberg.  For most of that time, beginning in 2013, CAMPANA was also a construction manager at Bloomberg.  Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg.

In all, the defendants are charged with failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million.  The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction labor and materials for work on their individual homes and properties, and the direct payment of personal expenses.  Such personal expenses included charges related to CAMPANA’s 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon, as well as Super Bowl tickets worth almost $8,000 provided to GUZZONE.  Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.

In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged OLSON, CAMPANA, GUZZONE, NIGRO, and 10 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering.  On November 19, 2019, CAMPANA pled guilty in the State court case to money laundering in the third degree for his participation in the bribery scheme.  (

OLSON, 53, of Massapequa, New York, pled guilty today to a single count of tax evasion for the tax years 2011 through 2017.  That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

CAMPANA, 34, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced last week, on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes (which he has repaid), and a fine of $10,000. 

GUZZONE, 51, and NIGRO, 59, both of Middletown, New Jersey, were each charged in criminal informations, respectively on July 14 and 16, 2020, with a single count of tax evasion.  The charges against GUZZONE pertained to the tax years 2010 through 2017, while the charges against NIGRO pertained to 2011 through 2017.  Those charges carry a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judges.

Ms. Strauss praised the excellent work of the Internal Revenue Service.

 [1]  In addition, all four defendants have been charged in New York State Supreme Court for their participation in the underlying bribery scheme, where CAMPANA has pled guilty in that case and is awaiting sentencing.