A.G. Underwood And Acting Tax Commissioner Manion Announce Record $330 Million Settlement With Sprint In Groundbreaking False Claims Act Litigation Involving Unpaid Sales Tax

Despite Knowing What the Tax Law Required, Sprint Decided Not to Comply

Largest-Ever Recovery in a Single-State False Claims Act Lawsuit

  Attorney General Barbara D. Underwood and Acting Tax Commissioner Nonie Manion  announced a record-breaking $330 million settlement of a False Claims Act lawsuit filed by the Attorney General against Sprint, the cell phone carrier, and some of its subsidiaries. The lawsuit – People v. Sprint Communications, Inc. et al., Index No. 103917/2011 (New York County Supreme Court) – alleged that for nearly a decade Sprint knowingly failed to collect and remit more than $100 million in state and local sales taxes owed on its flat-rate wireless calling plans sold to New Yorkers. The $330 million recovery is not only the largest-ever recovery by the New York Attorney General resulting from an action filed under the New York False Claims Act, but it is the largest-ever recovery by a single state in an action brought under a state false claims act.

“Sprint knew exactly how New York sales tax law applied to its plans – yet for years the company flagrantly broke the law, cheating the state and its localities out of tax dollars that should have been invested in our communities,” said Attorney General Underwood. “Now, Sprint will pay the price with this record-setting settlement. This should serve as a clear reminder that the New York False Claims Act protects New Yorkers from companies that attempt to flout their obligations under New York tax law.”

The $330 million settlement announced today resolves this tax enforcement action under the New York False Claims Act brought by the Attorney General. At least twenty-nine states, the District of Columbia, and the federal government have passed False Claims Acts, laws which allow whistleblowers and the government to recover treble damages from companies or individuals that defraud the government. However, only the New York False Claims Act broadly covers all types of tax fraud.

Sprint’s decision not to comply with New York sales tax law for nearly a decade harmed not just the State of New York, but also every county, city, town, village, and school district in New York that imposes a sales tax. Indeed, for many counties, sales tax revenue is the largest portion of county revenue. A substantial portion of today’s $330 million settlement has already been distributed to the localities who were directly harmed by Sprint’s conduct.

“By blatantly understating the amount of sales tax owed to the tune of $100 million, Sprint violated the trust of its customers and deprived communities across New York State of revenue needed for vital services,” said Acting Commissioner of Taxation and Finance Nonie Manion. “We applaud the whistleblower who brought this injustice to light, and our colleagues at the Attorney General’s Office who worked closely with us on the investigation that led to this record-setting settlement of $330 million.”

The investigation leading to this settlement began with a whistleblower lawsuit filed under the New York False Claims Act. The Attorney General appreciates the whistleblower’s provision of information and assistance in this investigation. The whistleblower will receive $62.7 million, as the New York False Claims Act entitles whistleblowers who report fraud against the government to a specific share of the recovery.

After the whistleblower filed its lawsuit in March 2011, the Attorney General’s office, working closely with the New York State Department of Taxation & Finance, conducted an extensive investigation into Sprint’s conduct and in April 2012 filed a civil enforcement action against Sprint and certain of its subsidiaries. Since then, the New York Supreme Court, the New York Supreme Court Appellate Division, First Department, and the New York Court of Appeals have all issued opinions rejecting Sprint’s attempts to dismiss this lawsuit.

Since August 2002, the tax provision at issue in this lawsuit, New York Tax Law § 1105(b)(2), has imposed a sales tax on all wireless voice services that are sold for a fixed periodic charge, without differentiating between intrastate or interstate and international voice calls. The New York Court of Appeals has explicitly held that this provision is unambiguous.

Sprint and its subsidiaries sold wireless calling plans to New York customers. Some of those wireless calling plans permitted a customer to use up to a specified number of minutes of voice-only calling for a flat-rate monthly charge (for example, 500 minutes of calling for $50), and those plans did not distinguish between intrastate and interstate calls.

The Attorney General’s investigation found that in early 2002, Sprint and the other major cell phone carriers lobbied the Tax Department in connection with the enactment of Tax Law § 1105(b)(2), which ultimately took effect in August 2002. The Attorney General’s investigation found that Sprint’s Regional Director for State and Local Government Affairs played a lead role in those lobbying efforts on the industry’s behalf. The Attorney General’s investigation also found that as part of those lobbying efforts, in spring 2002 that same in-house Sprint lobbyist agreed in writing that the soon-to-be-enacted Tax Law § 1105(b)(2) would maintain existing sales tax revenue payments for “bucket” plans (i.e., wireless calling plans which provided a fixed amount of voice calls for a fixed price) by imposing sales tax on those plans without regard to whether the calls were interstate or intrastate. That is exactly what Tax Law § 1105(b)(2) unambiguously did.

In addition, the Tax Department issued a guidance in 2002 that correctly explained the newly enacted Tax Law § 1105(b)(2) and provided the following example: “Example #1: Mr. Smith buys a cellular calling plan from a home service provider which includes up to 2,500 minutes of use for a flat-rate charge of $49.95 per month. The contract provides that additional charges will apply for calling minutes that exceed the minutes allowed under the plan. In November 2002, Mr. Smith does not exceed the calling minutes allowed under the plan, and is charged $49.95 for the month. Such charge is subject to sales tax under section 1105(b)(2) of the Tax Law, regardless of whether the calls made under the plan were intrastate, interstate, or international calls.”

The Attorney General’s investigation found that Sprint’s in-house tax lawyers knew of the lobbying efforts by Sprint’s in-house and external lobbyists regarding Tax Law § 1105(b)(2), that they reviewed both the unambiguous language of Tax Law § 1105(b)(2) and the clear Tax Department guidance in 2002, and that they were aware that the entire portion of a flat-rate charge attributable to wireless voice calls is subject to sales tax under Tax Law § 1105(b)(2), regardless of whether the wireless calls made under the plan were intrastate, interstate, or international calls.

However, even though Sprint’s in-house tax lawyers and lobbyists knew what Tax Law § 1105(b)(2) required, the Attorney General’s investigation found that in 2005, Sprint decided to violate New York law by failing to collect and remit state and local sales tax on the portion of a flat-rate charge for a wireless calling plan that Sprint arbitrarily deemed to be for interstate calls. Sprint continued to violate the law even after the Attorney General’s investigation began and even after the Attorney General filed this lawsuit. It was not until May 2014 that Sprint finally agreed to comply with the law.

Attorney General Underwood expresses her deep gratitude to the auditors, attorneys, and other staff at the New York State Department of Taxation and Finance for their critical contributions to this case.

Comptroller Stringer Audit Reveals DOHMH Skipped Mandatory Inspections at Hundreds of Child Care Centers

73 centers did not receive either of two required annual inspections in FY17

Over half of centers did not receive one of the two required annual inspections in FY17

  New York City Comptroller Scott M. Stringer released a troubling new audit revealing that the Department of Health and Mental Hygiene (DOHMH) failed to conduct required inspections of over half of the child care centers that served the City’s Universal Pre-Kindergarten (UPK) program in Fiscal Year 2017 (FY17).  Under its own rules, DOHMH is supposed to conduct two types of inspections each year at each center — one by an Early Childhood Education Consultant (ECEC), focused on staffing and curriculum, and another by a Public Health Sanitarian (PHS), focused on physical conditions.  Both types are called “initial inspections,” which trigger further investigation if deficiencies are found. Yet the audit uncovered that in FY17, DOHMH skipped both of those inspections at 73 centers and that hundreds of other centers received just one initial inspection, in direct violation of DOHMH protocols.

“For the safety and well-being of our children, DOHMH’s own rules require it to comprehensively inspect every child care center at least twice every year.  Skipping inspections at hundreds of child care centers is unacceptable,” said Comptroller Stringer.“As a parent of young children, I find this audit extremely disturbing. As Comptroller, what’s even more alarming is that DOHMH refuses to acknowledge the problem and fix it. When it comes to protecting our city’s children, we cannot allow any agency to deny the facts.”

The Comptroller’s audit investigated whether initial inspections—DOHMH’s term for comprehensive annual inspections—were conducted across the City’s 1,035 group child care centers serving the UPK program in FY17.

Findings from the audit include:

Records Show 73 Centers Did Not Receive an Initial Inspection in FY17

• In a review of DOHMH records, auditors found that 73 group child care centers did not receive an initial inspection by a PHS or an ECEC during FY17.
• 53 of the 73 uninspected centers had previously been issued 324 violations in the preceding year – ranging from 1 violation per center to 21 and including:
• 41 violations classified as public health hazards (imminent threat to health and safety, needing immediate attention); and
• 116 classified as critical (serious violations needing correction within 14 days).
• DOHMH reported in its response to the audit that it conducted what it refers to as monitoring and compliance inspections at all of the centers where violations were cited or for which complaints were received. Nevertheless, under DOHMH’s protocols and according to its staff, monitoring and compliance inspections are not substitutes for the two mandatory initial inspections. As noted in the audit report, DOHMH’s “initial inspections” are complete program reviews to determine whether child care centers are in compliance with the City Health Code. As such, they are more comprehensive than compliance and monitoring inspections, which focus on specific issues raised by prior inspections, complaints, or administrative actions.

Hundreds of Centers Failed to Receive Required Inspections

DOHMH records show that during FY17, a total of 531 of the 1,035 audited group child care centers failed to receive at least one required inspection, in violation of DOHMH protocol. Specifically, in addition to the 73 centers that received no initial inspection:

• 312 centers did not receive an inspection from an Early Childhood Education Consultant; and
• 146 centers did not receive an inspection from a Public Health Sanitarian.
• A further review of DOHMH inspection records for Fiscal Years 2015 through 2017 revealed a widespread and long-standing lack of oversight as DOHMH failed to perform all inspections at between 48 and 60 percent of audited centers in each year.

Fiscal Year	Number of Total Centers Inspected	Number of Centers Lacking Either a PHS or an ECEC Inspection	Percentage of Centers Lacking Either a PHS or an ECEC Inspection
FY 2017	958	458	48.00%
FY 2016	927	496	54.00%
FY 2015	933	561	60.00%

Deficient Oversight at DOHMH

Although DOHMH claimed that its information system enabled its supervisors to track inspections across multiple child care centers, DOHMH supervisors interviewed during the audit said that they were unfamiliar with the system’s tracking functions and generally did not use them. After the auditors informed the agency, DOHMH officials developed a new reporting system which, though improved, still lacks necessary information and is effectively bypassed by supervisors who instead continue to create their own Excel spreadsheets to attempt to track inspections of the centers they oversee.

Auditors also found that DOHMH employed just 18 PHS staff and 18 ECEC staff to inspect roughly 2,749 group child care and school-based child care centers – and just seven supervisors responsible for overseeing inspections citywide. Moreover, inspectors and supervisors were concerned not just about understaffing but about the lack of consistent necessary training. In each borough, staffing levels breaks down as follows:

Borough	Number of GCC Centers	Number of School Based Child Care Centers	Number of PHS staff	Number of ECEC staff	Number of PHS Supervisors	Number of ECEC Supervisors
Brooklyn	816	224	6	5	2	1
Manhattan and Staten Island	628	123	5	4	1	1
Queens	494	91	4	5	1
Bronx	312	61	3	4	1
TOTAL	2250	499	18	18	7

These combined deficiencies weaken DOHMH’s ability to ensure that inspections are conducted in accordance with agency guidelines and increase the risk that centers with non-compliant, potentially hazardous conditions were allowed to operate without those conditions being corrected.

In response to these deeply concerning findings, the Comptroller called on DOHMH to immediately inspect the 73 centers auditors uncovered – and further inspect every single center that did not receive an initial inspection within the last three years. Additionally, the Comptroller recommended:

• DOHMH should reform its inspection tracking protocol and overhaul its reporting mechanism to ensure that reports and oversight processes do not allow initial inspections to be skipped or records to go missing.
• DOHMH should ensure that supervisors who require accurate and adequate management reports have input in the overhaul.
• DOHMH should determine the adequacy of its staffing in relation to the number of child care centers it oversees and adjust staffing levels as warranted.
• DOHMH should conduct periodic surveys of its staff and solicit feedback regarding the training curriculum so that it can provide relevant training to its staff as the agency deem appropriate.

This is the third audit Comptroller Stringer has conducted of DOHMH’s oversight of group child care centers, and the third in which notable deficiencies were found.

• A 2016 audit of DOHMH’s permitting of Group Child/Day Care (GDC) providers found that DOHMH had not ensured that all of the GDCs had tested the water at their facilities for lead, as required by the City Health Code, and, even more alarming, that management instructed staff to enter into a DOHMH computer system an inaccurate statement that a report of a water lead test with acceptable results had been received in cases where no such test had been performed, or where there was no evidence that an acceptable result had been reported.
• In a 2018 audit of DOHMH’s follow-up on violations found in Group Day Care Centers, auditors found that:
  • DOHMH’s weak controls decreased its ability to ensure that interim corrective actions were appropriately implemented by the GDCs to protect the children’s health and welfare pending implementation of permanent corrective actions. For example, auditors reviewed all 1,892 Public Health Hazard-related citations issued between February 1, 2016 and February 23, 2017 and found that the records for 19 percent—360 citations—had seemingly meaningless entries (e.g., punctuation marks with no other text, cryptic entries such as “NULL” and “N/A”) in the Interim Control field.
  • Further, the audit found that in some instances DOHMH lacked evidence that the actions the centers took to correct violations were adequate. Specifically, in a sample of 73 citations that were cleared, auditors found insufficient evidence that the violations relating to approximately one-fifth of them were adequately corrected.

DE BLASIO ADMINISTRATION DEPLOYS NATION’S LARGEST NETWORK OF SOLAR-POWERED ELECTRIC VEHICLE CHARGERS

50 new charging stations will power city government fleet vehicles using sunlight

  The de Blasio Administration announced the deployment of 50 solar-powered charging stations across the five boroughs that will power New York City’s growing fleet of electric government vehicles. Known as solar carports, each station will charge vehicles using sunlight. These new carports, combined with 37 existing solar carports across the five boroughs, will give New York City the largest network of solar-powered electric vehicle chargers in the country.

“New York City is proud to be leading the fight against climate change by investing in solar energy,” said Mayor de Blasio. “With these new solar charging stations, we are taking a step further toward making our City fleet fully dependent on renewable energy.”

“As Washington attempts to roll back vehicle emissions standards, New York City is deploying electric vehicles and powering them using nothing but sunlight,” said Lisette Camilo, Commissioner of the NYC Department of Citywide Administrative Services. “By building the largest network of solar charging stations, we are showing what cities can do to take the lead.”

“New York City is rising to the challenge of creating a 21st century, low-carbon transportation network that gives every New Yorker clean, safe, and healthy ways to get where they need to go,” said Mark Chambers, Director of the Mayor’s Office of Sustainability. “Our growing inventory of solar carports is a perfect example of how we are harnessing cutting-edge sustainable design for our city and our planet.”

Each carport can recharge up to three electric vehicles daily. In addition, the City currently operates the largest electric vehicle fleet charging network in the country, with 529 sites across the five boroughs. The City aims to add at least 100 additional chargers in the next two years. Two of those carports are slated to be installed on the campus of New York City schools, to help power electric vehicles used for student driver education. The city is investing $3.3 million in these charging stations, which will be fully installed by spring 2019.

New York City has the largest fleet of electric vehicles of any municipal government in the country, an initiative that’s part of Mayor Bill de Blasio’s NYC Clean Fleet plan. The plan, announced in December 2015, calls for the City to have 2,000 on-road electric vehicles by 2025.  To date, the City has more than 1,700 electric vehicles in use across 28 of its agencies.

The full network of solar chargers will annually power fleet vehicles over 650,000 miles of emissions-free driving. These new solar carports will also enable zero emissions at the vehicle tailpipe and in the production of the energy.  Each carport will offset half its cost through gasoline savings over its expected lifespan. In addition, these units offer critical emergency resiliency, serving as backup and mobile solar power generators and storage units in case of power loss or a storm emergency. The units require no installation of any type and can be moved by the City’s flatbed tow trucks.  

“Solar powered electric vehicle carports offer a vision of a zero-emissions transport future, zero emissions at the vehicle tailpipe and in the production of the energy,” said Keith Kerman, DCAS Deputy Commissioner and NYC Chief Fleet Officer.  “NYC Fleet can produce its own clean solar power, keeping our electric fleet on the road free of fossil fuels and without taxing the electric grid.” 

EDITOR'S NOTE:

It is to bad that the de Blasio administration has not listed the sites of all the Solar-powered Charging Stations, because once again the Bronx must have been short changed by the de Blasio administration. 

Happy Holidays from The New Bronx Chamber of Commerce

Diaz Christmas Party

 Bronx Borough President Ruben Diaz Jr (left), Brooklyn Assemblywoman (and candidate for Public Advocate) Latrice Walker, Councilman Rafael Salamanca, Assemblyman Marcos Crespo, 87th A.D. District Leader Sergeant John Perez, and Councilman Ruben Diaz Sr.

The Annual Diaz Christmas Party at Mastro's Friday night was a tremendous success, as the room was overflowing with happy holiday people celebrating with Team Diaz. Food was constantly being brought out, and the music played till midnight as people enjoyed themselves.

Above - Bronx Borough President Ruben Diaz Jr. welcomes the overflowing crowd as he wishes all who were in the house holiday greetings.

Below - People wanted their pictures taken with Team Diaz. 

Above - 87th A.D. Assemblywoman Elect Karines Reyes joins in for this photo.

Below - 87th A.D. Assemblywoman Elect Reyes talks of being the first woman in the all boys club, but the boys don't seem to be to interested in hearing what she is saying. 

Community Board 11 Votes Down Proposed 228 Unit Building on Blondell Avenue

  Representatives of the developer for a proposed 228 unit nine story building on Blondell Avenue listen to CB 11 member Bernadette Ferrera's concerns about the huge building, and what it will due to the surrounding area. 

  After a few people spoke in favor of the Blondell Avenue building proposal, which included a merchant from the neighboring Westchester Square Business Area. Then over twenty people spoke against the proposed building some saying that the only way the Westchester BID supported it was because the amount of parking spaces increased from 56 to over 200, with some of the added parking for shoppers on a paid parking fee. People questioned building such a large housing unit when the area government services such as schools, police, sanitation, and others are already overcrowded or over burdened. 

When the Public Hearing was over a vote of the board was taken on a resolution against the proposed building as part of the Land Use process since this project had to go through the ULERP process due to certain components of the project. The vote was twenty-six in favor the board opposing the building, six against the board opposing the building, and two abstentions. members of the community rejoiced in happiness, but the ULERP process now goes to a public hearing by the borough president on December 28th in the Bronx County building.

Above - CB 11 members listen to the community then voted on the Blondell Avenue proposal.

Below - Tom Luciana from the borough president's office tells everyone that the next step in the ULERP process is that the borough president will hold a public hearing on December 26th. 

RELEASE: BP DIAZ, WESTCHESTER CE LATIMER, OTHER ELECTED OFFICIALS AND KEY STAKEHOLDERS CALL ON AMTRAK TO GET TO WORK ON PENN STATION ACCESS PROJECT

Bronx Borough President Ruben Diaz Jr., Westchester County Executive George Latimer, other elected officials and key stakeholders spoke out in support of the expansion of Metro North service to the East Bronx and the need for Amtrak to get out of the way of this much needed, universally popular project. These four new lines will save Westchester residents, most notably those on the Sound Shore, both time and money by shortening their commutes through the creation of new one-seat ride into Penn Station from Westchester.

Diaz said: “We are here to come together to call on Amtrak to stop getting in the way of progress of these four desperately needed Metro-North stations – needed not just for the Bronx but for the entire region. Everyone knows this is a good idea for commuters, the potential for job opportunities and its impact on congestion, and everyone is on board – except Amtrak.”

Latimer said: “This is a story about cooperation between the suburbs and the city on a project that is both good for the Bronx and good for Westchester County. We have a common interest here, and what the Borough President and other leaders have done is see the common benefit of opening up these lines to provide benefits in both directions. Access to Penn Station is advantageous for those who live in Westchester along the Sound Shore and need to commute to the Bronx or parts of Manhattan for work, making those communities even more attractive to live in and raising property values in the process.”

This project – known as the Penn Access Project - would provide a vital rail connection for Westchester to the west side of Manhattan and the East Bronx. At this time, the MTA has a plan in place to build four new Metro-North Railroad stations in the East Bronx that would also serve to benefit Westchester commuters by connecting the New Haven Line to Penn Station directly.

To get this vital project back on the track, Amtrak must agree to align work schedules and scope of the project and allow the MTA reasonable access to Amtrak-owned tracks and right-of-way. This agreement has yet to occur due to Amtrak’s demands for the MTA to pay more than its fair share. The MTA will already be carrying most of the expense of upgrades, including rebuilding the Pelham Bay Bridge, and Amtrak would be the beneficiary of track improvements and operational flexibility, under-grade bridge improvements, and power, signal and communications upgrades. This standoff puts the entire project in jeopardy - at the expense of thousands of riders.

“Creating a new mass transit option for East Bronx and Westchester commuters to Manhattan would be a transportation game changer for those transit-needy areas. A new rail line with four new Bronx stations will substantially reduce travel time, better link the Bronx and Westchester to job markets, enhance economic development and offer vital system resiliency to withstand future disasters,” said U.S. Senator Charles Schumer. “Expanding mass transit options can spark job growth and reduce commute times, which is what we need for our entire region, and why Amtrak must work with the MTA to get this project done for the people of the Bronx and Westchester.”

Congressman Eliot Engel said: “It’s long past time for the East Bronx to have its rail service expanded, and that can only happen with Amtrak’s cooperation on the Penn Station Access Project. My constituents in both the Bronx and Westchester deserve to have greater rail access, which not only will improve travel and reduce pollution, but will also provide economic benefits to the entire region. I join County Executive Latimer, Bronx Borough President Diaz Jr., and all of my colleagues in government in calling on Amtrak to get on board with us and move this project forward.” 

Congresswoman Nita Lowey said: “The strong bipartisan support for Penn Station Access speaks to the absolute necessity of the project. Penn Station Access will provide much-needed relief for commuters, saving them significant amounts of time and money by connecting Westchester and Manhattan’s west side. It will also improve transportation capacity and resiliency and drive economic growth throughout the region. I look forward to continuing to work with our partners at all levels of government to secure Amtrak’s cooperation in moving this project forward.” 

New York State Senator Jamaal Bailey said: "I represent both The Bronx and Westchester Counties, two locations that stand to benefit greatly from this project. One of the neighborhoods in my district is Co-op City, essentially a ‘city within a city’ that consistently struggles with adequate transportation to Manhattan and other areas in The Bronx. The Metro-North station in Co-op City is desperately needed in order to ease the transportation struggles that currently exist. As such, I stand with Borough President Diaz Jr. and County Executive Latimer and call on Amtrak to support this project and facilitate in ensuring it is built so that thousands of residents can benefit from excellent mass transportation."

Assemblyman Marcos A. Crespo said: “Expanded Metro North service will have a game-changing impact on the lives of Bronx residents both by adding transportation options to a neglected transportation desert in the East Bronx, and better connecting residents to greater job and opportunity markets. I thank Borough President Diaz and County Executive Latimer for leading the call that Amtrak no longer stand in the way of this vital project.”

Assemblyman Michael Benedetto said: “Adding Metro North Railroad service to the transit-starved east Bronx is vital to the economy of New York City, Westchester County and the state. I call on Amtrak to quickly conclude negotiations with the Metropolitan Transit Authority in an earnest and reasonable manner to move this project forward.”

Assemblywoman Nathalia Fernandez said: “The Bronx has consistently been left behind when it comes to our transportation needs. The East Bronx Metro-North expansion project is a necessary step toward ending transit inequality in our community. We cannot allow Amtrak to hold our residents back. They need to take responsibility to ensure this project becomes a reality. The people of this borough have had to contend with a crumbling transportation system. These new MetroNorth stations are a paramount component to addressing the transportation, environmental, and economic challenges of our communities. We welcome investment in our communities, but we demand that corporations be good neighbors and partner with us in good faith. Amtrak has a responsibility to the people of the Bronx. Our health and mobility is at stake, yet Amtrak demands the cash-strapped MTA help pay for repairs of their own unmaintained property. These demands are unconscionable. Bronxites need these MetroNorth stations now more than ever, and we need Amtrak unequivocally on board.”

Assemblyman Jeffrey Dinowitz said: “There is no question that our transit infrastructure is ancient and our transit networks are antiquated. President Trump campaigned on making our infrastructure great again, but for two years all the federal government has done is get in the way of actual progress. Where the federal government has failed, New York is investing $1 billion to improve Amtrak infrastructure (which is operated by a federal government-owned corporation) through LIRR East Side Access and Metro-North Penn Station Access. Amtrak needs to stop extorting our state for more money and instead get out of the way of better mass transit in the Bronx.”

New Rochelle Mayor Noam Bramson said: “Penn Access represents an extraordinary opportunity for our entire region to spur job growth, expand access to employment, and foster transit-oriented development. I am proud to stand with leaders in Westchester, the Bronx and throughout New York in advocating for this vital enhancement of mass transit options.”

Bronx Chamber of Commerce Chairman Joseph Kelleher said: “The Bronx is experiencing amazing growth—new commercial and residential development is on the way throughout the borough, many companies are relocating to the Bronx creating jobs. The new Metro North Train Stations will provide improved transportation resulting in major economic development and opportunities for the residence and the businesses in the Bronx.”

DE BLASIO ANNOUNCES $52 MILLION IN PLANNED CAPITAL INVESTMENT FOR NYC HEALTH + HOSPITALS/METROPOLITAN Hospital

Investment will address infrastructure upgrades

  

  Mayor Bill de Blasio announced today $52 million in capital investment projects to improve NYC Health + Hospitals/Metropolitan’s infrastructure. The projects will be conducted over time, with some scheduled for completion as soon as the spring, while others will require work through late 2021.

“We are proud to have the largest public hospital system in the nation,” said Mayor de Blasio. “NYC Heath + Hospitals/Metropolitan has been a mainstay in this community for decades, and this investment will help the hospital get the upgrades needed to continue serving the community.”

“Metropolitan Hospital is a critical community resource for residents of East Harlem and we are proud to invest in it,” said Deputy Mayor for Health and Human Services Dr. Herminia Palacio. “We are committed to preserving our public hospital system, making it financially sustainable and able to deliver the best healthcare services for all New Yorkers.”

“While $52 million is obviously a significant investment, it’s clear that it is needed as part of our long-term commitment to the hospital,” said Dr. Mitchell Katz, President and Chief Executive Officer of NYC Health + Hospitals. “We want our staff to be able to focus on meeting our patients’ care needs and keeping them healthy, not worrying about roofs and power systems.”

“Our hospital has been an integral part of the East Harlem community since the 1950s,” said Alina Moran, Chief Executive Officer of NYC Health + Hospitals/Metropolitan. “Every day, we provide the highest quality of care to our patients. We welcome this level of capital investment that will allow us to upgrade our buildings and make the necessary repairs to our infrastructure.”

The plan calls for repairs and improvements to:

Bringing the automatic fire sprinkler infrastructure up to new requirements ($12 million)

Replacing patient-accessible windows with new ones featuring polycarbonate glazing for enhanced safety in Behavioral Health units ($13 million)

Upgrading the current emergency power system, as required under new mandates ($25 million)

Replacing the roof to address ongoing leak problems and eliminate the need for ongoing patching ($1 million)

Replacing the unit that directs condensed and cooled water resulting from the building’s usage of steam back to the power plant ($600 thousand)

Replacing cooling towers nearing end of life with new ones with the latest technology to ensure greater safety ($400 thousand)