New Rochelle City Council Meeting Agenda July 7, 2011
Barry Fertel on proposed use of a Federal grant to purchase a fire truck: “I know this is Federal dollars not taxpayer dollars but…”
Newsflash for Barry, New Rochelle residents also pay Federal Tax, those Federal dollars are also taxpayer dollars.
DPW Proposes banning U-turns on North Avenue.
That was legal until now? Who knew.
Discussion Item: Purchasing Procedures Discussion Item
City Manager Chuck Strome: talked about a “recent indictment”, an 18 month investigation by the DA, City asked not to do anything until they were done. Says thousands of documents were provided to the DA but only 22 are subject of indictment. Says “we” are confident and our own internal investigation shows no other employees are under investigation.
In his prepared remarks at his press conference last week I asked Strome if the City had done their own internal investigation. He said “no”, that DA asked them not to do anything”.
Strome: “Obviously case is remaining open.”
This is a reversal of Strome’s previous statement in his prepared remarks at his press conference last week in which he stated that DA told him that the investigation was closed.
Strome: “A number of people are given public trust, some people violate that trust.”
Finance Commission Howard Ratner: “City Manager and I establish internal control procedures…our internal control provide reasonable assurances that the city resources are properly safeguarded.”
City allows no bids up to $500 and allows phone bids up to $3,000. In the Fevang case, Chuck said in Fevang case, he submitted a form for purchases between $500 and $3,000 with three bids when he only made one.
Process for making purchases is department person responsible for bidding submits to department head, reviewed and approved by department head, then sent to purchasing which cuts check, purchasing department will spot check bids. Chuck says they spot check 5% of purchases and want to increase that to 10% of purchases.
Council Member Al Tarantino: “Do we have a red flag system? Where one company is getting bid after bid?”
Strome: Yes, goes back to level of Ratner and Strome when that happens.
Ratner: “We’ve kicked many of those back”.
This would appear to acknowledge that they have had problems with “many” contracts going to one bidder.
Council Member Jared Rice: What were the amounts involved?
Strome: Every invoice was between $500 to $3,000. Maximum amount would be 22 incidents up to $3,000 for a hypothetical total of $66,000 but is far less since items were for less and, in every case, the City got what they bid for.
Rice: We federal dollars involved?
Strome: Not that I know.
Ratner: No. Jokes about how most of the time the City is reimbursed from the Federal government so money can’t be co-mingled.
This makes no sense. First, “most” is not “all” and so some Federal dollars are coming straight in not as a reimbursement. Second, the reimbursement is still Federal dollars coming in and then some of that is being used to pay for things that are then later reimbursed by the Federal government. So, the answer is clearly “yes”, federal dollars are involved and they are co-mingled thus U.S. Attorney would have jurisdiction which has been St. Paul’s point.
Council Member Richard St. Paul: Starts off saying Ratner said department heads have not been following process; dispute over this ensues
Corporation Counsel Kathy Gill: “investigation is ongoing….internal investigation is over”. Does not want any of this discussed. Says we have a qualitative review if
Mayor Noam Bramson: We have an independent auditor (note: Bennett Keilsen_
Ratner: We have used them for 15-20 years.
St. Paul: how independent are our independent auditors when they can donate money to sitting Council Members (note: Noam Bramson has received donations from the auditor, Bennett Keilsen)
Al Tarantino: Can we require bidders have their signature notarized?
Council Member Barry Fertel: you mentioned forensic audit, you seem to be backtracking on that?
St. Paul: Not backtracking, raised concerns about donations by Bennett Kielsen to Noam Bramson. Proposing an Inspector General or some sort of financial oversight person, compliance officer, 800 number, anonymous reporting.
Council Member Marianne Sussman: City’s financial control system not set up to catch fraud.
St. Paul: Other employees were directed to alter paperwork.
Strome: We did not conduct a separate internal investigation. I think we should do nothing until DA investigation is complete.
Bramson: you said it was a large matter, do you have knowledge beyond that contained in indictment. you don’t have specific information?
St. Paul: where were the vendors? They were in New Jersey, New York City.
NOAM: Must be some basis for making a claim that there is a systemic issue.
St. Paul: City workers were ordered to falsify paperwork, Chuck admitted that in his press conference.
At this point there is a question of personnel and after some back and forth they go into executive session.
Fertel -sussman
do you know anything how dumm are you federal money not tax payer money where the hell do you think it comes from. sussman you of all people should not comment on the way people talk.Maybe if you stopped and took a good look around this city you would
know you and that ida board gave half the city away.
Glad your leaving and take boy wonder and fertel with you.