VISION ZERO: MAYOR DE BLASIO ISSUES DRIVER ALERT FOR SEASONAL DANGERS OF DUSK, DEER AND DAYLIGHT SAVINGS

As part of Vision Zero Dusk and Darkness initiative, stepped up NYPD enforcement against dangerous driving will be concentrated in evenings; in the Bronx and on Staten Island, drivers should be especially alert for mating deer during dusk hours; clocks “fall back” this Sunday, November 5 at 2:00 AM, creating earlier sunsets

  Leading up to this weekend’s clock change, Mayor Bill de Blasio today issued an alert to New York City drivers about the increased dangers of driving this time of year, when drivers and pedestrians are at increased risk during dusk and evening hours. The de Blasio Administration last week announced the return of its Vision Zero Dusk and Darkness initiative that includes stepped-up NYPD enforcement against unsafe driving during fall and winter dusk hours, which have traditionally been the most dangerous time of year for pedestrians.  Those same hours have also been highly correlated to deer-mating activity and deer-related crashes on New York City roadways, especially in the Bronx and on Staten Island.

“While we all can be grateful for an extra hour’s sleep this coming weekend, at the same time we all need to stay mindful of the driving dangers of the darker fall and winter months,” said Mayor Bill de Blasio. “As part of our Dusk and Darkness initiative, NYPD will be out during those darker afternoons and evenings, making a big difference on our streets for the safety of pedestrians.  On other roads, deer pose a special danger to drivers during those same dusk hours.  For everyone’s protection, the best choice for drivers is to take turns slowly and obey the speed limit – on both our streets and our highways.”

“As Daylight Saving Time ends, a dangerous time period on our roads – especially for pedestrians – begins,” said NYPD Commissioner James P. O’Neill. “Sunset coincides with the evening commute, and people may not be as alert or able to see as clearly. So the NYPD and its Vision Zero partners are calling on people – especially motorists – to slow down and make safe turns. Officers will be out looking for hazardous moving violations. So, please look out for one another, and if you’re in an area with deer, look out for them too.”

“Our research shows that rush-hour driving in newly dark evenings of the fall can be a perilous combination for pedestrians, and with deer also out in greater numbers, drivers need to be especially vigilant during this season” said DOT Commissioner Polly Trottenberg. “We know from our Dusk and Darkness efforts that vision is compromised enormously as the sun sets, which now happens during the busiest evening rush hours.  As part of Vision Zero, we are reminding New Yorkers that in the colder, darker months ahead, they need to exercise extra caution and slow down.”

“Deer are a relatively new traffic danger that New Yorkers should watch out for,” said NYC Parks Commissioner Mitchell J. Silver, FAICP. “Fall is mating season, which means deer will be most active – especially during dawn and dusk, and especially in Staten Island and the Bronx, where deer are most prevalent.”

The NYPD, DOT and NYCParks detailed the three dangers of the season:

Dusk

DOT has conducted extensive analysis of year-over-year crash trends, noting that:

·    Vision experts note that visual acuity can decrease by as much as 90% during the dusk hours, making driving especially perilous.

·  The earlier onset of darkness in the fall and winter is highly correlated to a 40 percent increase in traffic injuries and fatalities among pedestrians.

·  Lower visibility during the dark hours of the colder months leads to twice as many crashes involving turns.

Deer Activity

·  Deer can appear without warning on roadways, so be alert. The animals are most active in the evening and early morning, especially during the mating season -- going on now.

· To avoid collisions, drive the posted speed limit. Scan the road ahead and avoid distractions.

· If a deer runs in front of your vehicle, brake firmly but do not swerve. Swerving can take a motorist into oncoming traffic or off the road.

· If you strike a deer, call 911 immediately. Do not touch or get close to the animal. it may be injured and could behave frantically, causing further safety risks.

· Learn more about living alongside deer in New York City at www.nyc.gov/wildlife

Daylight Savings

·  Daylight Saving Time ends this Sunday, November 5 at 2am, when clocks “fall back” one hour.  Sunsets happening this week just before 6pm will be before 5pm next week, at the height of the evening rush hour.

· In addition to the increased NYPD enforcement during these hours, the Dusk and Darkness campaign will employ afternoon and evening drive-time radio advertising, reminding drivers to obey the speed limit, watch for pedestrians and turn slowly. 

In 2017, as part of Vision Zero, DOT has implemented its most aggressive street redesign safety program, with increased investment in street redesign and traffic-calming measures citywide. DOT has improved the safety at a record number of dangerous intersections and thoroughfares, expecting to install more than 25 miles of protected bike lanes this year along key high-traffic corridors like Queens Boulevard and 111th Street in Queens, as well as 5th Avenue, 7th Avenue and Park Row in Manhattan.  DOT will this year also install a record number of leading pedestrian intervals (LPIs) – more than 800 – to give pedestrians a head start while crossing the street.

For more information about the de Blasio Administration’s Vision Zero initiative, please see www.nyc.gov/visionzero.

Bronx Dems Hosts "Bronx for Bill de Blasio" GOTV Rally & Canvass Kick - Off

Bronx Chamber of Commerce - 2018 Business Directory Printer's Deadline extended to November 10, 2017

GREAT NEWS!

    2018 Business Directory Printer's Deadline extended to November 10, 2017

DON'T MISS OUT on business referrals by being listed in the 2018 Bronx Business Directory & Resource Guide. The 2018 Directory includes a BONUS Digital Edition with hyperlinks to websites and email to generate more leads and business referrals!

 

Current and new members must confirm their contact information for the 2018 Bronx Business Directory & Resource Guide before November 10, 2017. Email your updated and complete contact information today to Sashee Rivera at: sashee@bronxChamber.org.

 

Hurry! >>>>>Affordable Advertising Rates in the 2018 Bronx Business Directory

 

DON'T MISS OUT on reserving your company ad in the 2018 Directory. Call today! Allan Kolstein (914) 345-0601, ext. 162, or email; akolstein@todaymediainc.com or Beth Ann Martinelli (914) 325-8593 or email: bmartinelli@todaymediainc.com.

Helping you grow your Bronx Business is our Goal!

The Bronx Chamber of Commerce is one of the most influential, professional and successful organizations and voice for businesses in Bronx County. Professionals and companies are drawn to the successful companies and active members affiliated with The Bronx Chamber of Commerce. Membership includes businesses ranging from large corporations, Cultural Institutions, Universities and Colleges, Hospitals and Medical Centers, non-profits, and mid-sized to small companies.

 

Nunzio Del Greco
President and CEO
Bronx Chamber of Commerce

"The Network for Business Success"
1200 Waters Place, Suite 106
Bronx, NY 10461
718-828-3900
Nunzio@bronxchamber.org

 

"You never know where your next big deal is going to come from"!

Complaint in U.S. v. SAYFULLO HABIBULLASVIC SAPOV

  A Two Count Indictment totaling ten pages with testimony from Special Agent Amber Tyree of the FBI Joint Terrorism Task Force testimony about how SAYFULLO HABIBULLASVIC SAPOV rented the truck and used it for the October 31st terror attack can be found at https://www.justice.gov/usao-sdny/press release/file/1008081/download. 

 This ten page indictment was given to U.S. Magistrate Judge for the Southern District of New York Hon. Barbara C. Moses by Assistant U.S. Attorneys Andrew D. Beaty, Amanda Houle, and Mathew Laroche.  

 Count One is titled - Provision of Material Support and resources to a Designated Foreign Terrorist Organization.

  Count Two is titled - Violence and Destruction of Motor Vehicles. 

 It makes for some interesting reading of how the attack was planned, what the intended target was to be, and just how the attack was enacted. There is also a brief history of ISIS, and how they attempt to recruit terrorist such as this. 

 Cement barriers have been placed on this bike/walkway passage as of today to prevent another event such as the October 31st terrorist attack. 

A.G. Schneiderman Announces Felony Conviction And $2 Million Settlement In Bribery Investigation Of JFK Airport Executive

Edward J. Paquette, Executive Director Of Terminal One Group, Stole And Took Bribes Totaling Over $1.3 Million, Meant To Influence Contracts He Oversaw At JFK Airport

Settlement Is The Second In Ongoing AG Investigation “Operation Greased Runway,” Examining Contracting Practices At JFK

Since Launching Investigation, AG Has Secured $15 Million In Penalties And Restitution

  Attorney General Eric T. Schneiderman today announced the conviction of Edward J. Paquette, former Executive Director of the Terminal One Group Association L.P. (“TOGA”), on felony charges related to stealing from his employer and accepting bribes totaling over $1.3 million, intended to influence contracts he oversaw at JFK Airport. TOGA, a partnership between Air France, Japan Airlines, Korean Air, and Lufthansa, was established to lease Terminal One at JFK Airport from the Port Authority of New York and New Jersey. The Attorney General’s ongoing investigation into the contracting and procurement process at JFK Airport—an investigation dubbed “Operation Greased Runway”—revealed that Paquette accepted personal payments in exchange for awarding business opportunities and favorable treatment to catering, transportation, and aircraft servicing companies operating in the terminal. In addition to his felony convictions, Paquette agreed to pay $2 million to settle civil claims pursuant to the New York False Claims Act and Executive Law Section 63(12). 

This plea and civil settlement mark the second resolution in Operation Greased Runway. The first conviction and settlement, involving the airport food company Yankee Clipper Food Services I, was announced on October 19, 2017. Operation Greased Runway has now netted an aggregate $15 million in penalties and restitution. 

Click here to read the settlement agreement.

“Accepting bribes is a crime that undermines legitimate businesses and prevents access to equal opportunity for hard working New Yorkers,” said Attorney General Schneiderman. “My office is committed to rooting out corruption in contracting and we will use every tool available to stop those in positions of power from taking advantage of their authority.”

The Attorney General’s investigation uncovered that Paquette compromised the integrity of business operations at JFK Airport by accepting payments from airport businesses in return for exercising his influence as TOGA’s Executive Director. In one instance, Paquette recommended that TOGA change ground handling companies that service aircrafts at Terminal One. Paquette then solicited bids for the contract, which were the largest at the terminal. After conducting a bidding process, Paquette recommended awarding Ground Services International (“GSI”) the contract. GSI received the contract, and shortly thereafter began making secret monthly payments to a company that Paquette established specifically to receive the payments. GSI paid Paquette a total of $640,000 from 2015 through 2017.

The investigation further revealed that Paquette engaged in a scheme with Yankee Clipper Food Services I, previously convicted of Grand Larceny and a Scheme to Defraud as part of this investigation, to divert TOGA money to himself. Paquette falsified invoices for a purported “Employee Appreciation Day” for the workers at Terminal One that never took place. Nonetheless, Paquette instructed the catering company to issue invoices for the non-existent event to TOGA. Paquette later approved payment of the fraudulent invoices and the catering company returned large portions of the TOGA payment in cash to Paquette personally. Finally, Paquette received additional payments totaling over $572,000 from Yankee Clipper and related entities, and over $108,000 from Golden Touch Transportation of New York, a transportation company that conducts business at Terminal One, among several other locations in New York.

Michael Nestor, Inspector General for the Port Authority of New York and New Jersey said, “The Port Authority requires that all business partners adhere to the highest standards of integrity and ethical conduct. In this case, the defendant chose to enrich himself through an insidious pattern of corruption that allowed him to siphon millions of dollars at the expense of his employer and the other airline carriers they served. Individuals who willingly participate in a pay-to-play system subvert the process for those who try to compete fairly and ultimately undermine the public’s trust in government. My office will continue to work vigorously with the New York State Attorney General’s Office and its law enforcement partners to identify, investigate and prosecute those who attempt to corrupt the integrity of the aviation industry.”

Today, Paquette pleaded guilty to one count of Grand Larceny in the Second Degree, a class C felony, and one count of Commercial Bribe Receiving in the First Degree, a class E felony. The pleas were entered today in Queens Supreme Court. 

Attorney General Schneiderman thanks the Office of the Inspector General of the Port Authority of New York and New Jersey, particularly Investigator Mia Chang, Supervising Forensic Investigator Fred Ferrone, Assistant Director of Investigations Salvatore Dalessandro, and Director of Investigations Steven Pasichow.

14 CHARGED IN SEPARATE CONSTRUCTION SCHEMES JOINT INVESTIGATION BY DOI AND BROOKLYN DISTRICT ATTORNEY

  Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”), in partnership with Acting Brooklyn District Attorney Eric Gonzalez, announced charges against 14 individuals, including property managers and developers, a private asbestos inspector, and two inspectors with the New York City Department of Buildings (“DOB”) in connection with three separate schemes involving construction fraud, including fraudulent asbestos inspections by a private, certified asbestos investigator; bribe receiving by two DOB inspectors in exchange for improperly passing properties; and the submission of fabricated permits by a Licensed Master Plumber (“LMP”) to cover illegal plumbing work, according to the charges. One of the arrests is pending.

 Commissioner Mark G. Peters said, “These arrests again demonstrate the enduring link between integrity and safety that DOI has traced over its many construction-related investigations. Taking a bribe and looking the other way on inspections, falsifying inspection reports, and trading a license for cash, all compromise the integrity of construction projects and endanger workers and residents. DOI in its partnership with the Brooklyn District Attorney’s Office has rooted out these varying forms of construction-related fraud and will continue to work to keep the City’s construction sites safe.”

 Acting Brooklyn District Attorney Eric Gonzalez said, “These investigations are a testament to our continuing commitment to keep people safe as developers too often are willing to take shortcuts at the risk of public safety to rapidly get their properties to market. These cases are all the more disturbing because City employees who are charged with making sure buildings are up to code were willing to overlook violations in exchange for cash and gifts. I look forward to continuing to work with DOI and will not let anybody sell the safety of the people of Brooklyn for their own profit.” 

 Each of the criminal cases announced today stemmed from DOI’s monitoring of court-ordered wiretaps related to another investigation with the Brooklyn District Attorney’s Office earlier this year. In that investigation more than three dozen individuals, including seven National Grid employees, were charged as part of a scheme to operate a shadow utility company and conduct illegal construction work. A copy of that press release and DOI’s report can be found at the following link: http://www1.nyc.gov/site/doi/newsroom/public-reports.page 

 The three schemes charged are described in detail below:

 Charged Fraudulent Asbestos Inspections  

 According to the indictment and DOI’s investigation, ALEXANDER KOGAN, 60, of Brooklyn, N.Y., a Certified Asbestos Investigator (“CAI”) licensed with the New York City Department of Environmental Protection (“DEP”) charged between $1,000 to $3,500 to provide a fraudulent asbestos report, known as an ACP-5, to property managers and developers, stating that a property had no asbestos. These investigations must be completed prior to a property owner or contractor receiving final approval for building permits. During the course of the investigation, it was revealed that KOGAN failed to go to a location entirely to conduct an investigation, briefly went to locations for photos, claimed to have inspected buildings that had already been demolished, or took samples of building areas where KOGAN knew asbestos would not be present. Additionally, during a search warrant executed at KOGAN’s office, DOI investigators found numerous pre-packaged samples of “dry wall,” which the investigation found were sent to laboratories for asbestos testing, instead of actual samples from buildings where KOGAN was conducting investigations.

 Another defendant, YOEL ROTH, 32, of Brooklyn, N.Y., worked to refer property owners and contractors to KOGAN, through ROTH’S demolition company, Presco. According to the charges, ROTH was taking a portion of the proceeds from the illegal asbestos scheme by inflating KOGAN’s investigation costs to property owners. 

 Property managers and developers, LAWRENCE BERLIANSHIK, 27, of Brooklyn, N.Y.; and YEHUDA UNGER, 36, of Brooklyn, NY were also charged in the scheme by an indictment obtained by the Brooklyn District Attorney’s Office. The arrest of a third property manager charged in this scheme is pending. 

 Each defendant was charged with Forgery in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degree, both class D felonies; Offering a False Instrument for Filing in the First Degree, a class E felony; and Falsifying Business Records in the Second Degree, a class A misdemeanor. 

 Upon conviction, a class D felony is punishable by up to seven years in prison, a class E felony is punishable by up to four years in prison, and a class A misdemeanor is punishable by up to one year’s incarceration.

 The defendants were arrested and arraigned Tuesday, October 24, 2017, are expected back in court on December 13th . Addresses associated with this scheme are: 

 156 Erasmus Street, Brooklyn, N.Y. 

 600 Park Place, Brooklyn, N.Y. 

 960 Alabama Avenue, Brooklyn, N.Y. 

 48 Jefferson Street, Brooklyn, N.Y. 

 1430 51st Street, Brooklyn, N.Y. 

 2022 Nostrand Avenue, Brooklyn, N.Y. 

 1479 Greene Avenue, Brooklyn, N.Y.  

DEP re-inspected each of the properties as a result of this investigation, and where it confirmed the presence of asbestos, ordered abatement.

Charged Bribe Receiving by DOB Inspectors

 According to the criminal complaints, DOB Construction Inspector HIRAM BEZA, 55, of Queens, N.Y., issued favorable construction inspections to multiple property owners and managers in exchange for cash payoffs and various home renovations, including the construction of a brand new kitchen in his home. The investigation also exposed misconduct by another DOB Construction Inspector, DEAN MULZAC. MULZAC, 53, of Brooklyn, N.Y., took free jewelry from a property manager who also owned a jewelry store in return for passing the property manager’s inspection.

 BEZA and MULZAC were both charged with Bribe Receiving in the Third Degree, a class D felony, and Official Misconduct, a class A misdemeanor. BEZA was also charged with Offering a False Instrument for Filing in the First Degree, a class E felony

 BEZA has been employed by DOB since April 2005, and receives an annual base salary of $68,672; MULZAC has been employed by DOB since April 2005, and receives an annual base salary of $71,515. Each was suspended upon arrest

 The following property managers and developers were charged in connection with this scheme: RUBEN BADALOV, 36, of Queens, N.Y.; YOEL BLUM, 35, of Spring Valley, N.Y.; ZEV CHASKELSON, 44, of Brooklyn, N.Y.; YAKHIEL FIRGIYEV, 31, of Queens, N.Y.; MATAN HACOHEN, 37, of Bellerose, N.Y.; and AMRITPAL SANDHU, 49, of Cedarhurst, N.Y.

 BADALOV, BLUM, CHASKELSON, HACOHEN and SANDHU were each charged with Bribery in the Third Degree, a class D felony.

 CHASKELSON, FIRGIYEV and HACOHEN were also charged with Giving Unlawful Gratuities, a class A misdemeanor.

 FIRGIYEV was additionally charged with Rewarding Official Misconduct in the Second Degree, a class E felony.

 Upon conviction, a class D felony is punishable by up to seven years in prison, a class E felony is punishable by up to four years in prison, and a class A misdemeanor is punishable by up to one year’s incarceration.

 All of these arrests took place

Addresses associated with this scheme are: 

 841 Hancock Street, Brooklyn, N.Y. 

 55 Wythe Avenue, Brooklyn, N.Y. 

 1229 Atlantic Avenue, Brooklyn, N.Y. 

 68-48 147th Street, Flushing, N.Y.

 1059 Manhattan Avenue, Brooklyn, N.Y. 

 828 Bedford Avenue, Brooklyn, N.Y. 

 752 Jefferson Avenue, Brooklyn, N.Y. 

 814 Quincy Street, Brooklyn, N.Y. 

 376A Monroe Street, Brooklyn, N.Y..

 DOB re-inspected each of the properties as a result of this investigation, and issued violations where appropriate.

 Charged Illegal Plumbing Work

 According to the criminal complaint and DOI’s investigation, Licensed Master Plumber (“LMP”), HENRY SAMUELS, 58, of Rosedale, N.Y., filed fraudulent permits with the City that allowed unlicensed individuals to work on the properties. In return, SAMUELS received a fee of between $1,500 and $2,500 per permit. LMPs are mandated by the City’s construction code to perform the work or directly supervise the work listed on the permit. In this case, SAMUELS never went to the construction sites to inspect the work. Dozens of properties were involved in this scheme. DOB inspected each of these properties and issued stop work orders and violations where appropriate.

 SAMUELS was arrested and charged with Offering a False Instrument for Filing in the First Degree, a class E felony, punishable by up to four years in prison. 

 DOI Commissioner Peters thanked Acting Brooklyn District Attorney Eric Gonzalez, DEP Commissioner Vincent Sapienza, DOB Commissioner Rick D. Chandler, and their staffs, for their cooperation and assistance in this investigation.

 The investigation was conducted by DOI’s Offices of the Inspector General for construction-related crimes,  with assistance from NYPD Detectives assigned to DOI.

Criminal complaints and indictments are accusations. Defendants are presumed innocent until proven guilty.

Comptroller Stringer Releases Fiscal Year 2017 Comprehensive Annual Financial Report

  New York City Comptroller Scott M. Stringer released the City’s Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2017, which includes the City’s audited financial statements for the year, outlines important economic and financial data about New York City, and highlights the work of the Comptroller’s Office during the fiscal year.

In accordance with the City Charter, the CAFR is released annually no later than October 31. In addition to the financial statements of the City as a whole and for each of the City’s accounting funds, explanatory notes to the financial statements, and supplemental financial and statistical information about the City, the CAFR contains the basic financial statements of the City’s five pension systems and closely-related entities such as NYC Health and Hospitals, the NYC Water and Sewer System, and the NYC Economic Development Corporation.

“Accountability and transparency matter, particularly when our City is facing an existential threat from Washington. Public data like this makes our City stronger — and my office will keep putting out the numbers that help explain New Yorkers’ government to them,” New York City Comptroller Scott M. Stringer said. “Once again, this year’s CAFR meets the highest standards of excellence.  This report is a testament to the dedicated public servants who keep our City running, and I’d like to acknowledge everyone from the five pension systems, the Mayor’s Office of Management and Budget, the Office of the Actuary, and especially the staff of our Bureau of Accountancy who worked so hard to put together this report.”

Last year’s CAFR, for FY 2016, was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association. This is the 37th year in a row New York City has received this prestigious award.

This year’s CAFR reflects implementation of several new accounting standards, most notably ones which measure the liability for “Other Postemployment Benefits” and reclassify certain component units of the City as business-type activities. Implementing these standards resulted in the restatement of the City’s prior year ending net position – the difference between assets and liabilities reported on an accrual basis. There are, however, only modest changes in the City’s prior year fund balance within the governmental funds financial statements, which measure near-term inflows and outflows of financial resources.

Highlights from the FY 2017 CAFR include:

New York City’s Finances and Economy

• For the 37th year in a row, New York City completed the fiscal year with a General Fund surplus. In FY17, the General Fund surplus was $5 million.

• City tax revenues rose at their lowest rate since FY 2010, with robust growth in Real Property Tax revenues offset by declines in Sales, Personal Income, and property transaction taxes.

• The City’s Real Gross Product grew 2.1 percent, outperforming US GDP growth for the fifth consecutive year.

• New York City added 69,600 private-sector jobs, driving down citywide unemployment to 4.8 percent, the lowest rate since FY07.

The Comptroller’s Office

• Bureau of Asset Management – The Comptroller’s Bureau of Asset Management is the investment advisor to the City’s five Retirement Systems.
  • As of June 30, 2017 the Bureau of Asset Management had $182.3 billion in assets under management for the five New York City Retirement Systems. 

• The pension trust funds earned $24.4 billion in investment income, net of investment expenses, in Fiscal Year 2017, for a return of 13.0%.

• Employer and employee contributions to the pension trust funds totaled $13.9 billion and $2.9 billion respectively, and the Systems made payments to beneficiaries totaling $14.5 billion.

• Bureau of Public Finance – The Bureau of Public Finance, together with the Mayor’s Office of Management and Budget, issues bonds to finance the City’s extensive capital program.
  • The City, the New York City Transitional Finance Authority (TFA), and the New York City Municipal Water Finance Authority issued a total of $11.2 billion of long-term bonds to finance the City’s capital program and refinance higher coupon bonds for interest savings.

• Refundings from FY17 will generate $437.15 million in budgetary savings over the lifetime of the bonds. 

• In FY17, the City, the TFA, and the Water Authority together issued $8.4 billion of new money bonds and issued $2.8 billion of bonds to refund a portion of their outstanding bonds at lower interest rates. 

• As of June 30, 2017 the City’s outstanding General Obligation debt, the TFA’s Future Tax Secured debt, and the Water Authority’s debt together totaled $100.3 billion.

• Labor Law – The Comptroller’s Office sets and enforces prevailing wages for contractors on New York City public works projects. In FY17, the office:
  • Assessed more than $4.3 million in underpayments and interest against private contractors that violated New York’s Labor Law.

• Imposed penalties totaling $770,000 against those companies. 

• Opened 70 new cases, resolved 84 cases, and debarred 9 contractors for egregious conduct. 

• Economic Development – Since 1981, the City Pension Funds have invested in Economically Targeted Investments (ETIs). As of June 30, 2017:
  • The ETI program, including real assets, was valued at $2.96 billion. 

• Over the last decade, the ETI program has performed above its benchmark. 

• Since inception, this program has financed the construction or preservation of over 105,000 units of affordable housing and 432,000 square feet of commercial space in low- and moderate-income neighborhoods. 

• Bureau of Audit and Investigation – The City Charter requires the Comptroller’s Office to audit some aspect of every City agency at least once every four years. In Fiscal Year 2017, the Comptroller’s Office:
  • Issued 76 audits and special reports on the effectiveness and service quality of City programs and financial issues. 

• These audits and investigations identified approximately $66 million in actual and potential revenue and savings. A further review of claims filed against the City identified nearly $1.5 million in additional costs that could have been avoided. 

• Bureau of Accountancy – In addition to preparing the Comprehensive Annual Financial Report, the Bureau of Accountancy works to enhance internal controls, increase accountability on how City agencies spend taxpayer dollars, and safeguard assets through the periodic update and issuance of accounting Directives and Memoranda. In FY17, the Bureau issued updated directives governing imprest funds (Directive #3) and agency cash controls (Directive #11), and revised Comptroller Memoranda governing payment of unused leave balances and improvements to facilities leased by the City.

Financial Reporting Changes

The CAFR this year includes the adoption of new financial reporting statements issued by the Governmental Accounting Standards Board (GASB), including GASB Statements 74, 75, 80, and 82.

• GASB 74 had no impact on the City’s financial statements. GASB 75, however, modifies the calculation of the City’s liability for “Other Postemployment Benefits” (OPEB) – essentially retirement benefits other than pensions, predominantly retiree health insurance – which resulted in a restatement of the FY 2016 OPEB liability on the government-wide financial statements, but had no impact on governmental funds. 

• Implementation of GASB 80 resulted in the reclassification of certain discretely-presented and blended nonmajor governmental fund component units as blended business-type activities, including the Brooklyn Bridge Park Corporation, the Trust for Governors Island, the WTC Captive Insurance Corp., and the Tax Lien Trusts. The reclassification of the Tax Lien Trusts resulted in a slight adjustment in the Governmental Funds fund balance for fiscal year 2016. 

• GASB 82 addresses certain issues with respect to the presentation of pension-related information. Implementation had no material impact on the City’s financial statements.

To view the full report, click here.

Comptroller Stringer Releases Seven-Point Plan to Save Taxpayer Dollars for Next Superstorm or Emergency

As fifth anniversary of Hurricane Sandy approaches, Stringer calls for new ‘fiscal resiliency’ measures to better serve victims and taxpayers in emergencies

  As the fifth anniversary of Superstorm Sandy approaches, New York City Comptroller Scott M. Stringer today released a new report and seven-point plan to save taxpayer dollars, prevent price-gouging on contracts, and ensure that New Yorkers get the help they deserve after an emergency. Drawing on lessons from the aftermath of Sandy, Comptroller Stringer called for fiscal preparedness measures and strategies – which can be implemented now – to save money in the event of a future emergency situation. The new report today, Fiscal Resiliency: Reforming New York City’s Emergency Procurement System before the Next Storm, recommends ways to leverage the purchasing power of the city, negotiate costs in advance, and reform emergency procurement.

“Let there be no doubt that with the realities of climate change, a future Sandy is coming. To be ready for the next storm, we have to learn the lessons from the last one. That’s what this report is all about. Just as we must fortify our shorelines and fiscal infrastructure, and our goal here is to think ahead to promote smart, concrete, substantive steps that can be taken today to save taxpayers down the road,” said New York City Comptroller Scott M. Stringer. “This isn’t about laying blame for the past, but it’s instead about planning for the future. Leveraging our buying power as a government will allow us to spend money where it matters most – not on profits for contractors, but on New Yorkers, their homes, their schools, and their communities. We believe that when it comes to emergency contracting, the best preparation is with sunlight and with transparency. This is realistic roadmap for the future both for New York and for any city facing an emergency.”

To quickly secure goods and services during unforeseen crises, emergency procurements are an essential tool for the City. Emergency procurements, unlike many other procurement methods, can be made with limited competition, enabling the City to act quickly when emergency circumstances arise. However, emergency contracting postpones many of the vendor integrity or competitive pricing requirements that characterize the City’s normal contracting process, possibly resulting in higher costs or inferior services. In its response to Superstorm Sandy, the City sought authorization for over $1.3 billion in emergency spending for a wide array of goods and services.

To avoid overreliance on emergency contracts and to address several of the procurement challenges which arose from the City’s response to Sandy, Comptroller Stringer has laid out a seven-point plan the City can implement to prepare for a future emergency situation, foster transparency, and enhance accountability:

1. Develop and publish a citywide procurement plan: Emergency procurements can drastically raise the prices of common goods and services compared to normal procurements. For instance, an emergency contract for portable toilets during Sandy cost more than 90% more than a normal procurement and an emergency contract for road salt executed during the 2013-2014 winter cost more than 285% than comparable procurements. By planning ahead for emergency needs, the City can build capacity to respond to disasters through normal, competitive procurements. The emergency contracting plan should draw on the expertise of multiple agencies and should extend beyond basic items such as water and blankets to more difficult procurements like social services, telecommunication, construction, transportation, and temporary office space, and housing.
2. Develop a more robust catalogue of requirements or ‘on-call’ contracts: Specifically, there must be a catalogue of on-call contracts for the procurement of emergency goods and services that the City can access in the event of an emergency. On-call contracts allow the City to pre-negotiate rates for specific goods and services that could be needed in an emergency, creating a more cost-effective and reliable pipeline of help in advance of any disaster.
3. Include “Emergency Contract Riders” – or emergency-specific provisions – allowing access to select services under existing citywide contracts to be activated in an emergency situation: Such language would allow the City the flexibility to access goods and services from existing contracts and a universe of proven responsive and responsible vendors.
4. Learn from complications arising from the City’s Rapid Repairs program and develop an improved model for a home repair program that can be launched when disaster strikes: The City should create a framework for a future home repair program, including model contracts which can be bid out in the immediate aftermath of a storm or disaster, to avoid some of the confusion around billing that came to define the City’s Rapid Repairs program in the months and years after the storm. By memorializing contract terms, scope of work, program requirements, and oversight authority ahead of an emergency, the City can guard against poor-quality work, delayed payments to vendors, and disagreements over billing.
5. Cooperate more efficiently on the state, regional and national levels to pool contracts and create resources: Doing so would exponentially expand the universe of goods and services New York would have access to in an emergency and will harness the collective buying power of the government by working together.
6. Increase oversight and transparency by requiring periodic emergency contract updates, instituting new training curriculums, and striving for early registration of contract. While emergency contracts should be the last resort of agencies, several steps can be taken to guard against waste or mismanagement. When agencies quickly enter into emergency contracts, they can unintentionally fail to implement crucial accountability measures that protect the interests of taxpayers.
7. Establish protocols to expand the use of P-Cards – or City-issued credit cards – in the event of an emergency: Such an expansion should go beyond the current low dollar thresholds with an appropriate level of corresponding oversight, to provide vendors immediate payment for services rendered during emergencies. This would allow for on-the-spot procurement decisions to be made by first responders and recovery officials, while also providing an electronic, real-time record of purchases for later tracking.

The urgency for strategic planning has only been magnified in the devastating aftermath of recent hurricanes that have leveled Puerto Rico, Houston, Florida, and the U.S. Virgin Islands.

To read the Comptroller’s full report, click here.