NYC COMPTROLLER, NYC LAW DEPARTMENT ANNOUNCE MAJOR SHAREHOLDER DERIVATIVE SUIT AGAINST WAL-MART

  The Office of the New York City Comptroller and the New York City Law Department announced today that the New York City Pension Funds filed a shareholder derivative action against Wal-Mart Stores Inc.  The lawsuit concerns the recent revelations contained in a New York Times article regarding the bribery and corruption scandal at Wal-Mex, the Mexican subsidiary of Wal-Mart. 

The City Funds’ Complaint, filed in the Delaware Chancery Court, alleges that Wal-Mart’s officers and directors breached their fiduciary duty to the company and its shareholders by failing to properly handle credible claims of the bribery allegations and attempting to cover up details of the scandal.  

“Wal-Mart’s board has repeatedly rebuffed our office and the New York City Pension Funds when we have raised concerns over the company’s failure to comply with legal and ethical standards,” Comptroller John Liu said. “Rooting out the directors and executives responsible for the current crisis would be a first step, but Wal-Mart also needs corporate governance reforms and an independent board that will protect outside shareholders and safeguard against another breakdown of internal controls.”

“This suit seeks to recover corporate assets lost as the result of its wrongful acts, tighten legal and regulatory compliance structures, and institute improved governance oversight,” noted Inga Van Eysden, Chief of the New York City Law Department’s Pension Division. 

In 2005, Wal-Mart executives were notified of a scheme involving the bribing of Mexican officials to expedite the building of Wal-Mart stores in that country.  Several internal investigations resulted.  The Pension Funds allege that the company took no significant action to change the situation.  On April 21, 2012, The New York Times published an article concerning the Mexican bribery scandal.  Wal-Mart’s stock quickly declined approximately 8 percent in the days that followed. 

Based on these developments, the Funds decided to commence their derivative action against Wal-Mart directors and executives.  Separate derivative cases against Wal-Mart are also pending in Delaware Chancery Court and the U.S. District Court in Arkansas.

New York City’s legal team includes Valerie Budzik and Richard Simon of the Comptroller’s General Counsel’s Office, and Inga Van Eysden and Keith Snow of the New York City Law Department’s Pensions Division.

The New York City Law Department is one of the oldest, largest and most dynamic law offices in the world, ranking among the top three largest law offices in New York City and one of the largest public law offices in the country. Tracing its roots back to the 1600’s, the Department has an active caseload of 90,000 matters and transactions in 17 legal divisions. The Corporation Counsel heads the Law Department and acts as legal counsel for the Mayor, elected officials, the City and all its agencies. The Department’s approximately 650 attorneys represent the City on a vast array of civil litigation, legislative and legal issues and in the criminal prosecution of juveniles. For more information, please visit nyc.gov/law.

New York City Comptroller John C. Liu serves as the investment advisor to, custodian and trustee of the New York City Pension Funds. The New York City Pension Funds, consisting of the New York City Employees’ Retirement System, New York City Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and New York City Board of Education Retirement System, serve more than 600,000 active and retired New York City employees, and combined constitute one of the largest public pension funds in the United States.


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Closure of Goulden Ave between Sedgwick & 205 St during Summer Months

   Once again as was the case last year the Department of Environmental Protection will be closing Goulden Avenue. Here it is as it was sent to us.

" TheNYC Department of Environmental Protection (DEP) will close Goulden Ave in both directions, between Sedgwick Ave and 205 St, on June 28, 2012 to commence water main repairs in the Goulden Ave roadway.  Construction will continue on weekdays and Saturdays through August 31^st.  DEP and its contractor will restore the roadway to two-way traffic before schools open for the fall term".

From June 28 through August 31, motorists and the BX 10 bus will be detoured to Paul Ave.  Access for pedestrians will be provided along Goulden Ave during construction.

 

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1st Annual Unity in the Community Festival ~ Sat. 6/23, 12-6PM

Save the date for the 1st Annual Unity in the Community Festival, a free event taking place on Saturday, June 23rd, 2012 from 12PM to 6PM. Aqueduct Ave. Between Kingsbridge Road and West 192nd Street.

This wonderful community event is presented by the Kingsbridge Road Merchants Association in conjunction with the Mosholu Preservation Corporation, Montefiore Medical Center & the Avenue NYC Program of the New York City Department of Small Business Services, with the support of Bronx Community Board #7 and #8, Jewish Home Lifecare, Mekong, and the United Federation of Teachers.

Home to the iconic Kingsbridge Armory, the Kingsbridge Road community consists of over 200 merchants, one of the largest retail shopping districts in the Bronx. Rich in cultural diversity, this neighborhood also boasts top notch eateries throughout the area.

The purpose of this event is to celebrate community unity and raise awareness on the diverse array of merchants in this district.

Attendees as well as sponsors will have access to thousands of people, including all participating merchants.

The day will consist of live music and entertainment, various kid's activities, health screenings, free gifts and give-aways, and lots of food!

Come out and join us as we kick off the summer with this great, free, community event!

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New Woodlawn Weekend Van Service

  From left to right are , New York City Taxi & Limousine Commissioner David Yassky, Assemblyman Jeffrey Dinowitz, Mr. Carl Gromes (owner of the van service) State Senator Jeff Klein, Monsignor Barry of Woodlawn is behind Senator Klein, Ms. Christine Sheridan (President of the Woodlawn Taxpayers Association), and Mr. Jim Ellis of the Woodlawn Cemetery  who are  standing in front of the new "Woodlawn Weekend Group Ride Van Service".

  "This all came about when the MTA cancelled the weekend bus service on the BX34 bus to Woodlawn in 2010" said Senator Jeff Klein. He added that in conjunction with NYC TLC Commissioner David Yassky, and the Dorcel Edenwald Bus Service that the weekend van service would operate on the weekend where the BX34 bus use to. The van service will run every half hour between 9 AM and 9 PM with a fare of $2.00.

  Mr, Gromes of the van service said that his company came into existence ten years ago during a similar circumstance when the old BX14 bus was eliminated. He added that the van can carry up to 14 passengers, and that there have already been requests that he extend the service up Bainbridge Avenue past the #4 train to the D train on East 205th Street. Check the local stores for the schedule of the new van service. 

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LIU IDENTIFIES EXTRA $100 MILLION FOR FY 2013 CITY BUDGET

-Additional funds available to provide budgetary relief -  

  Due to the $997 million General Obligation bond refinancing set to be finalized on June 7^th and lower than expected interest rates for the current year, the City will gain more than $100 million in additional funds to help close gaps in the Fiscal Year 2013 budget, according to City Comptroller John C. Liu.

Liu will provide the information, which has not yet been included in the Mayor’s Executive Budget, today when he testifies before the City Council Finance Committee.

Comptroller Liu said that lower than expected interest rates will yield $33.6 million in savings which could be rolled over to FY 2013; while the  refinancing, which was announced on May 23^rd by the Comptroller’s Office and Mayor’s Office of Management and Budget, would produce savings of $67.8 million in FY 2013 and  $68.9 million for Fiscal Year 2014.

“By successfully navigating the bond market, we have been able to save more than $100 million which can now be used to provide budgetary relief,” Comptroller Liu said.  “As our national and local economies remain fragile and we are facing a number of risks to the City’s bottom line, we must continue to aggressively identify savings and recoup every single dollar the City is rightfully owed.”

Comptroller Liu also reiterated his call for the City to recoup as much as $163 million from Hewlett Packard as a result of overbilling and underperforming on the contract to upgrade the City’s 911 call system, which was uncovered as a result of a recent audit.

Some other aspects of Liu’s testimony and budget report, which can be found at http://www.comptroller.nyc.gov/bureaus/bud/budget_reports.shtm include:

·         The budget relies heavily on one-shots to close the gap, specifically an estimated $1 billion for the sale of taxi medallions that may not materialize

·         The settlement from CityTime and $1 billion in funds from the Retiree Health Benefit Trust are being used to close gaps

·         Events outside the City’s control such as the Eurozone or a stalemate in Washington D.C. should spur the City to institute a Capital Acceleration plan to foster job growth and address  the high unemployment rate

·         The potential cost as a result of City Hall’s failed negotiations with the United Federation of Teachers and Council of School Supervisors and Administrators could be as high as $2.5 billion in FY 2013

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Statement by Council Member Annabel Palma:

In Response to Mark Page's Testimony on EarlyLearn

  

   Last fall, my colleagues and I sent a letter to the Administration highlighting a number of concerns related to the EarlyLearn RFP, which at the time had not yet awarded contracts to child care providers.  Among the concerns laid out in this letter were that the RFP would result in a significant decrease in child care capacity and that the reduction in per child rates would place thousands of child care providers at risk of losing their jobs or benefits. 

 

Despite the concerns we expressed in the letter, as well as in subsequent committee hearings and meetings, the Administration is moving forward with only minor changes to the original RFP and the Administration for Children’s Services (ACS) awarded contracts to providers this spring. 

 

The release of these contracts has made clear that our concerns were well-founded and our predictions were accurate. EarlyLearn’s impact on the child care system will be devastating for providers, workers and a number of New York City’s children and families.

 

This morning, Office of Budget Management Director Mark Page came before the City Council’s Committee on Finance to present his annual budget testimony and, during this appearance, I took the opportunity to once again highlight the Council’s concerns over EarlyLearn.  While it is clear at this point that the Administration and the Council are at odds over the implementation and consequences of EarlyLearn, Mark Page, as steward of the City’s finances, has an obligation to look beyond ideology and focus on the fiscal impact of these reforms. 

 

Slashing child care services and the jobs they support will place the City’s fiscal health in jeopardy for many years to come.  I hope the Administration will address the Council’s concerns we push to fix this flawed RFP and ensure that we have a system that works for our children and our City.  

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BOROUGH PRESIDENT DIAZ CALLS FOR HALT TO AFTERSCHOOL CUTS

 

  Today, Bronx Borough President Ruben Diaz Jr. released a letter to Mayor Michael Bloomberg outlining the potential damage the mayor’s proposed cuts to the Out of School Time (OST) afterschool program would have on the Bronx. In the letter, Borough President Diaz urges Mayor Bloomberg to commit to fully funding these critical programs.

“The families of New York City must continue to have access to quality services and afterschool programming.  We must work to make sure that all of our Bronx students are prepared for success in and out of school and that we provide safe alternatives to during after school hours,” wrote Borough President Diaz in his letter.

The Out-of-School Time (OST) Program provides a mix of academic, recreational and cultural activities for young people (grades K-12) after school, during holidays and in the summer. Programs are free of charge and are located in every neighborhood across the City.

The Bloomberg administration’s proposed cuts would lead to a 43 percent reduction in OST service in the Bronx. In addition, the administration has already announced that the Beacon Program at I.S. 192 in Throggs Neck—which served more than 1,300 Bronx students this past year alone—is also scheduled to close.

“Our working families rely on these programs to provide their children with a safe place to both catch up on school work and socialize after classes. In a down economy—when families need all the help they can to make ends meet—these programs are even more important. Mayor Bloomberg must restore these destructive cuts,” said Bronx Borough President Ruben Diaz Jr.

A copy of the letter can be found at: http://bit.ly/Ln2Ckz.

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DOT TAKES SLOW LANE ON BRIDGE REPAIRS

Audit Finds Repairs Not Completed in Required Timeframes
   

   Comptroller John C. Liu said today that an audit of the New York City Department of Transportation’s response to defects in City bridges found the agency was slow to repair serious structural defects.“The City’s bridges are a vital part of our transportation infrastructure and the public deserves bridges that are being maintained in the best possible manner,” Comptroller Liu said.  “The DOT needs to do more to streamline its response to ensure the integrity and safety of our bridges.”

The agency classifies bridge defects into three categories:

•       A “Red Flag” describes a failure or potential failure of a primary structural component. Red flags are to be remediated within six weeks after notification, although action may be deferred if a professional engineer certifies that the bridge is safe.

•       A “Yellow Flag” describes a potentially hazardous structural conditional that, if not corrected, could present a danger before the next two-year inspection. Yellow flags do not have a specific timeframe for remediation.

•       A “Safety Flag” describes a condition that presents a danger to cars or people. Safety flags do not have a specific timeframe for remediation.

•       Prompt Interim Action is a designation that can be applied to a Red Flag or a Safety Flag that requires attention within 24 hours.

In 2009-2010, 229 bridge defects or flags were identified that were the responsibility of DOT.  Of these, 112 were designated for Prompt Interim Actions and a 24-hour response. The agency handled all but one of these appropriately.

However, there were 122 Red Flag defects, the majority of which were delayed past their timeframe for remediation.  Of these 122 serious structural defects, 71 (58%) were not fixed on time.[1] In none of these cases was there any indication that the flag conditions were being monitored to ensure that the conditions did not worsen.

Among these 122 Red Flags were five that had initially been designated less serious or Yellow but that without repairs had worsened over time. Four of these flags were at the Brooklyn Bridge and were originally flagged yellow by the State Transportation Department in May 2008.  They remained open and unrepaired as of February 2012.  The fifth red flag that had deteriorated from yellow was located at the Manhattan Bridge and was originally flagged yellow in November 2008. It was closed on February 8, 2012, according to DOT.

The four unrepaired Red Flags on the Brooklyn Bridge were among 13 that had yet to be remediated as of February 2012.  Of these 13, the DOT stated that 10 (nine on the Brooklyn Bridge, one on the Manhattan
Bridge) were assigned to capital contracts and will be repaired based on contract schedules.  These 10 flags were reported between May and November 2010 and are roughly two years old.  Another two outstanding
Red Flags on the Belt Parkway in Bay Ridge were routed to the agency’s in-house Bridge Repair department and one unrepaired flag on a Henry Hudson Parkway ramp was assigned for repairs to outside contractors.

Recommendations
The audit made 17 recommendations to improve the DOT’s response to bridge defects. The agency agreed with eight recommendations, disagreed with six recommendations, and contended that three recommendations were already implemented.

Comptroller Liu credited Deputy Comptroller for Audits Tina Kim and the Audit Bureau for their hard work on the report, which can be found here: http://comptroller.nyc.gov/bureaus/audit/audits_2012/6-5-12_7E11-128A.shtm

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