Comptroller Stringer: Annual Making the Grade Report Reveals City Fails to do Business with More Than 80 Percent of M/WBEs

 

Out of $30.4 billion in contracts awarded by the City in FY 2021, only $1.166 billion (3.8 percent) was awarded to M/WBEs

The City falls to a “C-” Grade for M/WBE Spending in FY 2021 after two consecutive passing “C” grades

Comptroller Stringer calls on incoming City leaders to prioritize diversity, equity, and inclusion within their first 100 days in office and to eliminate the gap between M/WBE certification and receiving City spending

Today, New York City Comptroller Scott M. Stringer released the eighth annual “Making the Grade: New York City Agency Report Card on M/WBEs” report, finding that 84 percent of M/WBEs still do not have access to City spending. The share of M/WBEs receiving City dollars has never exceeded 22 percent since FY 2015. The Comptroller announced that the City fell to a “C-” Grade for M/WBE Spending in FY 2021 after two consecutive passing “C” grades. This year’s report examined the rollout of Chief Diversity Officers across the country, after years of advocacy led to an Executive Order appointing Chief Diversity Officers within every New York City agency.

“Over the last eight years, my office has given voice to solutions from M/WBEs directly on how the City can better connect them with opportunities, which has led to real change. But there is still room for significant improvement,” said Comptroller Stringer. “As this administration prepares to leave office, it is clear that the City, from the next Mayor and Comptroller to the next City Council, have abundant opportunities to address the systemic inequities experienced by communities of color especially as we continue to rebuild our economy amid the COVID-19 pandemic.”

“Making the Grade,” published annually since 2014 by the New York City Comptroller, evaluates the performance of the City’s M/WBE program and makes recommendations for its improvement. “Making The Grade” assesses 32 City agencies – and the City overall – on progress in spending with minority and women-owned businesses (M/WBEs) and is a diagnostic tool for agencies to improve performance and transparency in M/WBE spending, increase competition in City procurement and save taxpayer dollars.

Highlights in the 2021 “Making the Grade” report include:

• The City awarded $30.4 billion in contracts in FY 2021, of which only $1.166 billion (equal to 3.8 percent) were awarded to M/WBEs.
• The City has nearly tripled the number of certified M/WBE firms since FY 2015. However, of more than 10,500 certified M/WBEs, 8,886—84 percent—did not receive City spending in FY 2021. The share of certified M/WBEs receiving City dollars has never exceeded 22 percent since FY 2015.
• The City spent $1.27 billion with M/WBEs, an additional $261 million from FY 2020 and an increase of more than $900 million since FY 2014. The City earned a “C-” grade for M/WBE spending in FY 2021.
• Since 2014, the City has improved its grades with Asian Americans, Hispanic Americans, and women-owned businesses, but it has been unable to improve its “F” grade with African American-owned businesses over the last eight years. In FY 2021, the City earned a “B” grade with Asian American-owned businesses, a “D” with Hispanic American- and women-owned businesses, and an “F” with African American- owned businesses.
• Two mayoral agencies: The Commission on Human Rights and Department for the Aging earned their fifth consecutive “A” grades; both spent more than 50 percent of their Local Law 1-eligible dollars with M/WBEs.
• The Department of Transportation received an “F” grade, spending less than five percent of its Local Law 1-eligible dollars with M/WBEs.
• In FY 2021, eleven grades remained the same, three agencies improved their grades, and 18 agency grades- over half- declined from FY 2020.
• The Comptroller’s Office earned its third consecutive “A” grade. Over the last eight years, the Comptroller’s Office increased its M/WBE spending from 13 percent in FY2013 to approximately 53 percent in FY2021.
• In 2020, Comptroller Stringer announced that the Office’s registration process would now include a rigorous review of M/WBE goals on City contracts. Between November 2020 and May 2021, the Comptroller’s Office registered 63 contracts subject to Local Law 1. Of these, 42 contracts, or about 67 percent, had M/WBE goals below 30 percent.

The Future of Chief Diversity Officers in the Public and Private Sectors

For six years, Comptroller Stringer called for a Chief Diversity Officer (CDO) in City Hall and every City agency to serve as executive-level strategists, driving the representation of people of color and women across government. In July 2020, Mayor Bill de Blasio signed an executive order to appoint Chief Diversity Officers in every City agency. Although there is still no CDO with a citywide portfolio in City Hall, Comptroller Stringer finds growing implementation of the role across the public and private sector:

• Thirty-six of the 50 most populous cities across the U.S. have appointed CDOs, and more than half of them report to the Mayor or City Manager.
• Several federal agencies and the Executive Office of the U.S. President have implemented executive-level equity efforts.
• Hiring of CDOs tripled between December 2019 and March 2021 within the S&P 500.
• However, just 14 of the City’s top 50 vendors—which have collectively received over $5 billion from the City of New York—have publicly announced CDOs.

Utilization of M/WBEs during COVID-19

In July 2020, Comptroller Stringer’s Office surveyed 500 M/WBEs on the impact of COVID-19, finding that 85 percent of M/WBE firms projected less than six months of survival. A follow up survey from the Comptroller’s Office found that 50 percent of M/WBEs were forced to lay off or furlough employees. This report examines City spending with M/WBEs, finding that:

This report follows up on that survey, finding that:

• Between March 2020 and July 2021, the City spent over $3.5 billion in COVID-19-related goods and services, and just 16 percent, or $554 million, went to M/WBEs.
• Specifically, the City spent about $308 million, or about nine percent with women-owned businesses; $161.2 million, or about five percent, with Asian American-owned businesses; $43.2 million, or about one percent, with African American-owned businesses, and $41.2 million, or about one percent, with Hispanic American-owned businesses.
• Two agencies alone made up more than 40 percent of the City’s total pandemic-related dollars. The Department of Citywide Administrative Services spent over $803 million and just ten percent went to M/WBEs. By contrast, the Department of Sanitation spent more than $732 million, and M/WBEs received 25 percent of those dollars.

Recommendations

Each year, Comptroller Stringer puts forth recommendations meant to reduce barriers and increase opportunities for M/WBEs. These recommendations are informed by needs identified by the Comptroller’s COVID-19 survey, the City’s M/WBE spending data, a series of focus groups with M/WBEs, and the Comptroller’s Advisory Council on Economic Growth through Diversity and Inclusion. As this administration prepares to leave office, we urge the next cohort of citywide leadership to prioritize diversity, equity, and inclusion within their first 100 days of office.

All incoming Citywide officials should appoint executive-level Chief Diversity Officers. The mayoral CDO should oversee the rollout of the City’s programs designed to increase diversity and inclusion within the City, and they should also play a role in the City’s Budget and should have oversight over agency Chief Diversity Officers to ensure a unified citywide inclusion effort In addition, the City Council should consider implementing CDOs, who should conduct racial impact analyses when legislation being considered, where appropriate. Other city officials should also consider implementing CDOs, including the Borough Presidents, the New York Public Advocate, and District Attorneys.

The next City leaders should adopt the Rooney Rule to ensure that their cabinets are diverse, and that they engage with communities of color, including M/WBEs, to develop their administrations’ goals. The Comptroller’s Office worked with more than 30 public companies to adopt the Rooney Rule, which requires them to include women and people of color in every future CEO search, as first adopted by the National Football League. In light of the success of this policy, the City should consider adopting the Rooney Rule for every cabinet-level position.

The next Comptroller should conduct a racial equity audit of the City’s agencies. With the signing of President Biden’s Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, all federal agencies have been mandated to perform an equity assessment to address systemic barriers erected by government which have adversely impacted communities of color.  The next Comptroller should mirror this federal effort citywide through an audit of all City agencies. The audit should examine supplier diversity gaps, workforce diversity gaps, pay equity gaps, and agency policies and practices that are systemically biased against communities of color.

The next Mayor should create a plan to close the gap between certification and receiving City spending for M/WBEs. Over the course of the last eight years, the City has almost tripled its list of certified M/WBEs from just 4,000 to almost 11,000 businesses. However, no more than 2,000 M/WBEs have ever received City contract dollars in a given year. Within their first 100 days, the next Mayor should create a plan to close the gap between the number of people in the program and the number of M/WBEs that win contracts.

The New York City Council should reassess M/WBE legislation with a targeted focus on goals. One of New York City’s most powerful tools in creating opportunities for M/WBEs is subcontracting. However, this report has shown that almost 70 percent of Local Law 1-eliglble contracts in FY 2021 were assigned goals below the City’s standard of 30 percent. This translated into just 437 M/WBEs receiving subcontracting dollars in FY 2021 – less than five percent of all certified firms. The next City Council should reassess M/WBE legislation with a targeted focus on goals. The Council should review ways that the City can use its full purchasing power to set aggressive M/WBE goals wherever there is M/WBE availability. For example, it should also explore more flexibility when it comes to criteria for granting waivers, including considerations of market availability of M/WBEs and industry standards around subcontracting. In addition, City Council should also utilize the next disparity study to expand the universe of businesses able to participate in the goals program, such as firms with LGBTQIA+ and disabled owners, immigrant-owned firms, and cooperatives.

To read Comptroller Stringer’s eighth annual “Making the Grade: New York City Agency Report Card on M/WBEs” report, click here.

RECOVERY FOR ALL OF US: MAYOR DE BLASIO AND COMPTROLLER STRINGER ANNOUNCE HUDSON YARDS INFRASTRUCTURE CORPORATION HAS RECEIVED CREDIT RATINGS UPGRADES AND WILL SELL THE FIRST GREEN BOND ISSUED BY A CITY-RELATED ENTITY

$450 million green bond sale is linked to expansion of the subway system and supports zero-direct emissions, clean transportation 

 

Credit Rating Upgrades reflect pace of development in Hudson Yards and confidence in New York City’s recovery and economic outlook

 Mayor Bill de Blasio and Comptroller Scott M. Stringer today announced that Hudson Yards Infrastructure Corporation (HYIC) will sell the first green bond issued by a City-related entity. Last week, Moody’s Investors Services (Moody’s) upgraded HYIC’s credit rating from Aa3 to Aa2, with a stable outlook, S&P Global Ratings raised its long-term rating from A+ to AA-, with a positive outlook, and Fitch Ratings upgraded its credit rating on HYIC bonds from A to A+, with a stable outlook. 

HYIC is a local development corporation created by the City in 2005 to finance the extension of the Number 7 Subway Line to the 34th Street - Hudson Yards station and the creation of a public park. Proceeds from the $450 million green bond sale will be used to refinance bonds issued in 2012 to fund the subway extension, a project that was completed in 2015. The subway extension has helped mitigate the impact of climate change by encouraging low-carbon transportation and has fostered the development of Hudson Yards, a pedestrian-friendly, mixed-use district. By 2019, 6.1 million passengers passed through the station annually, making it one of the top 16% of stations system-wide by annual total use.

 

"For the sake of both current New Yorkers and future generations of residents, the climate crisis must be met head on,” said Mayor Bill de Blasio. “The sale of Green Bonds is part of our national-leading climate strategy to lower our emissions, reduce our reliance on fossil fuels and build a recovery centered around climate justice.” 

 

“With this historic green bond sale, the first of its kind by a New York City-related entity, the City is safeguarding its future—financially and environmentally,” said Comptroller Scott Stringer. “We must use all the tools at our disposal to address the existential crisis of climate change, and New York City can and should be a leader for cities around the world to reduce carbon emissions by promoting sustainable public transportation and parks. I am pleased that these bonds are being issued as Green Bonds in recognition of the benefits of mass transit and continue to urge the creation of a robust, City-wide Green Bond program.”

 

Subject to market conditions, the pricing is expected to take place on Wednesday, October 20, 2021 via negotiated sale through HYIC’s underwriting syndicate, led by joint lead managers Goldman Sachs & Co. and Ramirez & Co. Inc.

 

There will be a retail order period on Tuesday, October 19, 2021.

 

Credit Rating Upgrades

 

Moody’s upgrade to Aa2 with a stable outlook brings HYIC to Moody’s second highest level, the same rating that it has assigned to City and New York State bond offerings. The upgrade reflects robust development in the Hudson Yards area, which has led to strong growth in the recurring revenues that support bond repayment, and is projected to eliminate the need for City support payments for the life of the bonds. The upgrade also reflects confidence that the city will not experience a prolonged real estate recession.

 

S&P’s upgrade to AA- reflects its view of the progress and ongoing development in Hudson Yards and the termination of the 2006 indenture.  S&P also cites the City’s general creditworthiness and status as a global economic and employment center as a factor in its rating.

 

Fitch’s upgrade to A+ is based on the continued strong growth of pledged revenues generated from development in the project area and the termination of the 2006 indenture.

 

This is not an offer to sell or a solicitation of an offer to buy bonds. Bonds may only be purchased through a broker. Please carefully review the Preliminary Official Statement which describes the bonds.

75 Days and Counting Monday Morning Media Availability

 

What was that question, 

Question: I wanted to ask you about the DOI report on your police detail. You know, in past responses, you've talked about, a lot about the security of your family and how important that is to you, how that’s a priority. And I wanted to just shift from that focus to an incident in February of 2021 in which the DOI reported, you asked the detail to take a guest at Gracie across town to the Upper West Side? And so, I was wondering why didn't you guys just ask for a cab or an Uber? And can you talk about, I mean, this is the sort of thing I think that, you know, erodes trust. I mean, does that kind of factor in at all? I mean, do you kind of feel like that's kind of a bad look in hindsight now?

  

Mayor: First of all, what I try to do every, literally every day for eight years, was do what was appropriate. Do what I understood to be the right thing to do, follow the guidance I was given. And I tried to make decisions in the interest of the people. And I don't think it erodes trust, if I thought, for example, if someone had come for an interview for a job in New York City, this I know is an example, came for a job interview. We wanted someone to come join us in public service. And did them the courtesy of dropping them off where they were staying. I think that's a professional courtesy. It's in the public's interest because it's about showing someone we value them and we want them to come join us. That's the kind of example. I just think that's appropriate given the mission of getting the very best people to serve New York City.

You reporters seem to be trying to kill any chance of me becoming governor. Who is paying you to do this, Kathy Hochul? 

Allerton Avenue Hip Hop Festival Honoring Legendary DJ Jazzy Jay

  

The rain held off just long enough for the 1st Allerton Avenue Hip Hop Festival to end. There was rapping, song, and dancing on Allerton Avenue, and a mural unveiled to honor DJ Jazzy Jay, at the place where his career in Hip Hop took off at 759 Allerton Avenue. 

It was at 759 Allerton Avenue where DJ Jazzy Jay and Rocky Bucano joined to form Strong City Records in 1987. The pair produced early recordings by Diamond D., Fat Joe, Brand Nubian, Sheff Anselm (Tribe Called Quest), and others. 

A stage was set up on Allerton Avenue where performances ran for hours with Famous Hip Hop Artist after Hip Hop Artist paying tribute to DJ Jazzy Jay. Proclamations from Bronx Borough President Ruben Diaz Jr. and Councilman Mark Gjonaj were given to DJ Jazzy Jay. The event was put together by Ms. Grace Lovag, Irene Estrada, Al Pizzaro, and others. 

DJ Jazzy Jay holds the proclamation from Bronx Borough President Ruben Diaz Jr, thanking the BP for the honor. 

A group photo of Hip Hop Artists, and the people who helped put this event together.

Al Pizzaro, Steve Cas painter of the mural of DJ Jazzy Jay behind the group, Grace Lovag, Irene Estrada, and some Hip Hop friends of DJ Jazzy Jay standing right under his thumb in the mural.

The mural of DJ Jazzy Jay from artist Steve Cas.

759 the place where it all started upstairs, and the mural tribute to DJ Jazzy Jay right next door.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - OCTOBER 17, 2021

 

52,902 Vaccine Doses Administered Over Last 24 Hours     

36 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.   

"The positive steps we've taken in the last few weeks are the clearest sign yet of New Yorkers' commitment to defeating this pandemic," Governor Hochul said. "Booster shots are underway, and we are laying the groundwork for getting our kids vaccinated pending final federal approval. But there is still more work to be done and New Yorkers must remain vigilant so that we move well on our way to realizing a post-COVID future." 

Today's data is summarized briefly below: 

• Test Results Reported - 208,704
• Total Positive - 4,204 
• Percent Positive - 2.01% 
• 7-Day Average Percent Positive - 2.45% 
• Patient Hospitalization - 2,086 (-29) 
• Patients Newly Admitted - 256 
• Patients in ICU - 450 (-9) 
• Patients in ICU with Intubation - 247 (-14) 
• Total Discharges - 205,151 (+262) 
• New deaths reported by healthcare facilities through HERDS - 36 
• Total deaths reported by healthcare facilities through HERDS - 45,109 

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only. 

• Total deaths reported to and compiled by the CDC - 57,288 

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings. 

• Total vaccine doses administered - 26,274,749
• Total vaccine doses administered over past 24 hours - 52,902 
• Total vaccine doses administered over past 7 days - 375,527 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 83.1% 
• Percent of New Yorkers ages 18 and older with completed vaccine series - 75.3% 
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 86.0% 
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 77.3% 
• Percent of all New Yorkers with at least one vaccine dose - 70.4% 
• Percent of all New Yorkers with completed vaccine series - 63.7% 
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 72.9% 
• Percent of all New Yorkers with completed vaccine series (CDC) - 65.4% 

Two Indicted for Drug Trafficking and Hostage Taking - October 15, 2021

 

 SAN DIEGO – A federal magistrate judge denied bond today for one of two Mexican nationals indicted by a federal grand jury in connection with the kidnapping and death of a 19-year-old San Diego man in May of 2020.

The defendant, Wyatt Valencia-Pacheco of Tijuana, is charged along with fugitive Jonathan Emmanuel Montellano-Mora, also from Tijuana. They were indicted on June 3, 2021, for Hostage Taking Resulting in Death, Conspiracy to Take Hostages Resulting in Death, and Intentional Killing While Engaged in Drug Trafficking. The indictment was unsealed last week.

According to the indictment, Valencia and Montellano worked with others to arrange the killing of the victim, M.A.R., as part of their methamphetamine importation and trafficking activities.

The indictment further alleges that Valencia and Montellano worked with others to kidnap, detain and threaten the victim at a location outside the United States, in order to compel the victim’s family to pay with money or methamphetamine to gain his release. The victim was ultimately killed.

At Valencia’s detention hearing today before U.S. Magistrate Judge Allison H. Goddard, the government provided greater detail as to Valencia’s alleged involvement. The government identified the victim as a 19-year-old U.S. citizen who had been arrested twice before for strapping drugs onto his body and attempting to cross into the United States through a port of entry. The victim was tortured and killed over the theft of three pounds of methamphetamine, the government told the court.  

At the hearing, the government provided the following chronology of the alleged crimes:

On May 28, 2020, the victim stole three pounds of methamphetamine from a drug trafficker connected to the defendants in Tijuana. Almost immediately after the theft, Valencia started sending the victim threats over Facebook Messenger, ordering the victim to return the drugs immediately or pay them $2,000. In Spanish, Valencia told the victim that he “fucked up” and now had to take responsibility, because “they only gave us two hours to pay for that shit.”

The victim asked for more time or a smaller payment, to which Valencia responded: “I don’t know how you’re going to do it, but I want it today.” The victim asked for Valencia to trust him and promised to pay later. Valencia replied, “I don’t give a fuck. You’ll see how I make you pay today.” Valencia even told others that he planned to kidnap the victim.

On May 29, 2020, approximately four hours after the victim was supposed to have crossed the drugs, Valencia was in conversation with a co-conspirator on Facebook Messenger, assuring the co-conspirator that he (Valencia) was in touch with the victim, and they would find him. Valencia assured his co-conspirator that the victim was scared.

About eleven hours later, at a little after 11 a.m. that same day, Valencia told a girlfriend that he was angry, because a guy stole “work” from him, and Valencia was looking for the guy. When asked why he was looking for the guy, Valencia answered, “because I’m going to kill him.” Valencia said he gave the guy until 5 p.m. to return and pay for the “work,” or else Valencia was “going to send people to his house … here and there … here I’m going to shoot it up.”

About an hour later, Valencia communicated with a co-conspirator to plan how best to kidnap the victim.

At 11:57 p.m. on May 29, 2020, three males forcibly took the victim from a hotel in Tijuana at gunpoint. The event was captured by hotel surveillance cameras. One of the kidnappers was wielding a gun, which he used to beat the victim.

In the early morning hours of May 30, 2020, the kidnappers began contacting the victim’s mother and stepfather to demand money (sometimes $2,000, other times $3,000) or methamphetamine. The hostage takers permitted the victim’s family to see him through FaceTime, as proof of life. The victim appeared bloodied and beaten.

During this same time, a co-conspirator asked Valencia, “Hey, dude, give us ideas where we can get him signed,” that is, where to kill the victim.  

After a few minutes, and after insisting that he did not want to get further involved, Valencia answered the previous question about “where can we get him signed.” Valencia offered, “Smoke the guy by the dam, dude. Or by Cerro Colorado. … Or in the canal. It’s around the corner.” The co-conspirator asked, “Which canal?” To which Valencia responded, “The one by La Rapida (laughs)”

The family’s last contact with the victim occurred on May 30, 2020, at 12:30 p.m. No one has heard from or seen the victim since that time.

At the close of the hearing, U.S. Magistrate Judge Goddard detained Valencia, finding that there were no conditions of release which would guarantee his return to court. She detained the defendant based on the nature and circumstances of the criminal activity, the lengthy period of incarceration which the defendant faced, the defendant’s use of weapons, the fact that he would be subject to immigration removal to Mexico if he were released from custody, his significant ties outside the United States, and the weight of the evidence against him.

“The narcotic netherworld is full of extreme danger and tragedy, and this case is no exception,” said Acting U.S. Attorney Randy Grossman. “A misguided young man tangled with the wrong people and paid a terrible price, and now his family lives with the unspeakable horror of their loss. We will always seek justice for victims of drug-related violence that destroys families, communities and futures.” Grossman thanked prosecutors Mario Peia and Alexandra Foster, as well as the investigating FBI agents, for their excellent work on this case.

“The FBI will vigorously pursue justice for U.S. citizens who fall victim to violence regardless of where the crime occurs,” said FBI Special Agent in Charge Suzanne Turner. “The victim was killed over a $2,000 drug debt. May these charges serve as a warning to those who think violence against U.S. citizens committed outside of the United States exempts them from prosecution here; It does not.”

Valencia is next in court on December 16, 2021, at 9 a.m. before U.S. District Court Judge William Q. Hayes. Montellano has not yet been apprehended.

76 Days and Counting

 

Don't forget to get vaccinated, or you won't be able to enter any of these great New York City venues. You may hate me for this, but I am going to keep you and the rest of the city safe from the COVID virus.

Tomorrow is Monday and the return to my morning media availability with those pesky reporters. I wonder what they will ask me tomorrow? Will it be if I am going to run for governor, or how I am going to pay for the police I used, or even who am I endorsing for Mayor. I'll bet one asks me since William Shatner went up in space, will I.  

Assemblywoman Nathalia Fernandez - Job Fair, October 23rd

 

Hello,   Mark you calendars for our upcoming Job Fair with  NYS Department of Labor! Date: Saturday October 23rd Time: 11:00am - 3:00pm Location: Columbus High School, 925 Astor Ave  If you have any questions or concerns, contact us at  district80@nyassembly.gov or 718-409-0109. Best Regards, New York State Assemblywoman Nathalia Fernandez