This Week in New York This Week In New York/Page 1 Covering New York State and City Government A Publication of Pitta Bishop Del Giorno & Giblin LLC December 9, 2011 Edition In the News – New York State And the Winners Are… Governor Cuomo Announces $785 Million in Economic Development Funding Through Regional Councils Best Plan Awardees: Central New York Region - $103.7 Million Northern New York Region - $103.2 Million Long Island Region - $101.6 Million Western New York - $101.3 Million The winners of New York’s economic development “Race to the Top” were announced yesterday, with Central New York, Northern New York, Long Island and Western New York Regional Economic Development Councils (REDs) taking the top prizes: $100 million each in funding. Announced in July, Regional Councils represent a fundamental shift in New York’s approach to economic development. The process adopted a community-based, performance-driven approach which directs individual areas to develop comprehensive strategic plans. The plans must focus regional solutions to create jobs and economic growth. The REDs competed for $200 million in strategic planning grants. In addition, a Consolidated Funding Application (CFA) was created to give businesses and other entities access to approximately $600 million in economic development funding from nine state agencies and 29 existing programs. Awards for CFA projects were based on the endorsement of the local RED and the technical scoring of various state funding agencies. As part of the RED process, a Strategic Plan Review Committee was chosen to analyze and rank the strategic plans for each region. All projects awarded grants through this initiative must use best efforts to reach the goal of 20% Minority and Women Business Enterprise (MWBE) participation. The remaining councils -- Finger Lakes Region, New York City Region, Mid-Hudson Region, Capital Region, Mohawk Valley Region, and Southern Tier Region – received awards between $70 million and $50 million for projects in their respective areas. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 2 Best Plan Awardees Central New York Named Best Plan Awardee: $103.7 million (74 projects) The Council's plan proposed strengthening core industries and the region's economic assets including clean energy and environmental systems, health and financial services, agribusiness and food processing, advanced manufacturing, and tourism. Funded projects include: $4 million to the Cayuga Ingredients Milk Processing Plant. $3.6 million to the Bio Tech Park at Kennedy Square in Onondaga County. $3 million to support redevelopment of the Syracuse Inner Harbor. $3 million to create the New York Energy Regional Innovation Cluster at the Syracuse Center of Excellence. $2 million to complete the Central New York Biotechnology Research Center. North Country Names Best Plan Awardee: $103.2 Million (70 Projects) The North Country Regional Council Strategic Plan provided a long-term plan to attract private investment, promote and facilitate connectivity between communities, and create a climate that promotes entrepreneurs. Funded projects include: $9.9 million to rehabilitate the Newton Falls Rail Project. $4 million to support the development of community rental housing in the Fort Drum area. $3 million to support the construction of the Clayton Hotel along the St. Lawrence River. $2.5 million to support Bombardier's expansion of their main plant in Plattsburgh. $1.8 million to expand C Speed's advanced technology manufacturing center in Potsdam. Long Island Named Best Plan Awardee: $101.6 Million (66 projects) The Long Island Regional Council Plan advanced projects that invest in four major categories: Innovative Economy, Smart Growth for Communities, Natural Assets, and Workforce and Education. It also addressed challenges of a stressed infrastructure, loss of young workers and economic disparities. Funded projects include: $6 million to support Wyandanch Rising, part of a Nassau / Suffolk regional transportation and sustainable communities plan. $5 million to fund the Village of Hempstead mixed-use housing and commercial project. $5 million to support the Stony Brook University and Brookhaven National Lab for the Smarter Electric Grid 3 project. $3 million to expand Amneal Pharmaceuticals' facility to retain and create high-tech jobs. $4 million to construct the Ronkonkoma-MacArthur Transit Hub project. $2 million to support the Hofstra and Stony Brook University for the EngINE project. $2 million to support construction of a new cancer drug testing facility at the Cold Spring Harbor Laboratory. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 3 Western New York Names Best Plan Awardee: $100.3 Million (96 projects) In its plan, "A Strategy for Prosperity in Western New York," the Western New York Regional Economic Development Council identified eight industry sectors as strategic to the Region's growth: health and life sciences, advanced manufacturing, energy, higher education, professional services, agriculture, bi-national logistics, and tourism. $6.8 million to expand parking facilities at Buffalo-Niagara International Airport. $5.1 million to fund the Roswell Park Cancer Institute Genome project. $4 million to enable a project to connect five downtown districts of Buffalo. $4 million to support the Jacobs Institute of its Center for Innovation in Medicine, at the Buffalo Niagara Medical Campus. $2.8 million to Alfred University to purchase equipment and renovate facilities at its HighTemperature Materials Characterization Laboratory. $2 million for renovation of the former Rainbow Centre by Niagara County Community College for a Hospitality and Tourism Center. $2 million to construct the Urban Automotive Center of Excellence in Buffalo's Fruit Belt District. Other Council Funding Finger Lakes Region Awarded $68.8 Million (93 projects) $5 million to expand a partnership between the University of Rochester and IBM and support a new Health Sciences Center for Computational Innovation. $3.5 million to NYBEST Battery and Energy Storage Product Commercialization Center. $2.5 million will help construct a new business incubator at High Technology Rochester. Mid-Hudson Region Awarded $67 Million (61 projects) $30 million invested in affordable housing and to community revitalization. $8 million invested in local manufacturing firms, including San-Mar Manufacturing and Silarx Pharmaceuticals, Inc. $4 million will develop the New York Medical College's Biotech Incubator Center for Advanced Research in Westchester County. New York City Awarded $66.2 Million (50 projects) $29.5 million to fund the Hunts Point Produce Market. $10 million will develop CREATE @ Harlem Green. $550,000 will support the NYC SeedStart program. Mohawk Valley Awarded $60.2 Million (59 projects) $15 million will construct a new SUNYIT – CNSE Computer Chip Integration and Commercializing Center. $10 million will support infrastructure improvements at MarcyNano and SUNY IT. Over $3 million will support major private-public waterfront projects. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 4 Capital Region Awarded $62.7 million (88 projects) $11.5 million will reconstruct the Rensselaer wharf of the Port of Albany. $3.8 million will update and expand Albany International Airport's maintenance facility. $3 million in investments in biomedical research affiliated with SUNY Albany. $2.2 million will support the development of a rail transloading facility in Columbia County. Southern Tier Awarded Up to $49.4 million (58 projects) $4.8 million will go toward the Southern Tier Community Revitalization Project. $3.3 million to fund area rail projects. $3 million for the Southern Tier Economic Development Council's revolving loan program. In the News – New York City Council Trumps Mayor in Battle of Outsourcing Accountability Override Vote Ensures Transparency in the City’s Outsourcing Contracts The City Council this week voted unanimously (48-0) to override Mayor Michael Bloomberg’s veto of the Council’s Outsourcing Accountability Act. The vote clears the way for enactment of the Act which requires public notice of intended outsourced service contracts and calls upon the City to perform cost benefit analyses for certain outsourcing contracts. “This fiscally responsible, common sense legislation will certify that the City routinely weigh the necessity of outside contracts that cost taxpayers billions of dollars each year,” Speaker Quinn asserted. “The Council simply wants City agencies to consider costs and thoughtfully review decisions to outsource. These tough economic times demand nothing less.” The City Council unanimously passed this bill on October 5th. Mayor Bloomberg informed the Council of his veto on November 4th, characterizing the bill as burdensome and overarching. According to the Speaker, when the Council passed the Outsourcing Accountability Act, it voted to safeguard billions of taxpayer dollars that are spent annually in the procurement of City services. The existing law, Local Law 35 of 1994, was intended to meet these goals. However, in the 17 years since that law was enacted, the City has rarely reached the cost-benefit stage of the process. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 5 “By vetoing this bill, the Administration denies both the intent of the 1994 law and the increased competition that the amended legislation would bring,” Speaker Quinn said in relation to the Mayor’s objections. “Intro 624-A does not limit the City’s ability to outsource. Nor does it add an unnecessary bureaucratic layer to contracting.” According to Speaker Christine Quinn, the Act gives City employees and private vendors alike increased time to better prepare to compete for the opportunity to fill those needs. “The amendments will make sure that all the facts are public. It will provide for an honest comparison between public and contracted out services, so that the public will continue to receive the high level of services currently provided by City employees,” Harry Nespoli, Chair, Municipal Labor Committee explained. “Under the Act, Local Law 35 will now apply to existing contracts that are extended and renewed contracts. The amended Law will add transparency to contracting out procedures, and will apply to non-Mayoral agencies, such as the Department of Education, the Health and Hospitals Corporation, and New York City Housing Authority.” Specifics of the Outsourcing Accountability Act include: Require agencies to publish a services contracting plan at the beginning of each fiscal year, mapping out each agency's planned service contracts. Require the City to provide public notice of the intent of agencies to issue requests for proposals, invitations for bids, or other solicitations, or renew or extend existing service contracts through annual contracting plans. Clearly define the types of contracts covered under the law to include all new, renewed, and extended successor contracts for standard and professional services. Require agencies to conduct a retrospective review of their employment actions over a three year period prior to the proposed contract to identify key indicators such as attrition, layoffs, and announcements of anticipated employment actions related to employees who perform the services sought in the proposed contract. If the agency identifies any factors, there is a presumption of displacement and the agency must conduct a cost-benefit analysis, weighing the efficiencies of outsourcing the service versus performing the work in-house. Require agencies to provide details underlying their (non-)displacement analyses, including information concerning the capacity within the agency to perform the services sought in the proposed contract, and to certify that none of the indicators of displacement occurred in the threeyear period preceding the proposed contract. “By opening the process to scrutiny we will not only have a better understanding of what savings, if any, will be generated. But we might very well discover more efficient and cost saving methods within the existing city workforce,” Local 372 President Santos Crespo, Jr. said. “For too long City Hall, Tweed, and other agencies including HHC have, with the promise of cost savings, turned to outside contractors to do our work. And, as we’ve seen with City Time and numerous other outside contractors, taxpayers have been hit with massive cost overruns and outright thievery.” Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 6 Council Proposes Legislation to Establish Online City Contractor Database Building upon the recently enacted Outsourcing Accountability Act, the City Council this week introduced legislation requiring the Mayor’s office to establish an online City contractor database. The legislation reinforces the Council’s stance on the need for transparency and accountability in relation to City contracting. In the last fiscal year, the City spent more than $10 billion working with private contractors. The Bloomberg Administration has come under fire for its troubled outsourced technology projects including the scandal-plagued payroll system, CityTime, and the automated personnel system, Nycaps. According to prosecutors, CityTime’s $700 million cost was inflated by fraud, while leadership failures resulted in overruns and delays in Nycaps, which ballooned to more than $363 million, from $66 million. Sponsored by Council Member Darlene Mealy, the legislation requires the Mayor Michael Bloomberg to establish a public, online searchable database on the City’s official website, or the website of the Mayor’s Office of Contract Services, that would include a summary of the material terms of contracts. The contract summary would include, but not be limited to: Name, address, and federal taxpayer's identification number of the contractor, franchisee or concessionaire. Dollar amount of each contract including original maximum and revised maximum expenditure authorized, current encumbrance and actual expenditures. Type of goods or services to be provided pursuant to the contract. Detailed narrative in plain language of the purpose of the contract. Term of the contract. City agency, New York city affiliated agency, elected official or the council that awarded the contract, franchise or concession and the contract registration number, if any, assigned by the comptroller. Manner in which the contractor, franchisee or concessionaire was selected (e.g. public letting, request for proposal procedure, sole source; emergency procedure, list of prequalified bidders). Price adjustment triggers. Milestones or deliverables. Payment schedule. Non-performance penalties. Bonus payments. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 7 In Brief Governor Signs Legislation Implementing New York Works Agenda Governor Andrew Cuomo today gave final approval to the New York Works Agenda, which was passed by the Legislature earlier this week. Aimed at job creation and economic growth, the New York Works Agenda includes investments in New York's infrastructure, restructuring of the New York State tax code, additional relief for areas devastated by recent floods, and a reduction of the MTA payroll tax for small businesses, schools, and nonprofits. Sustainability Wins Big in REDs Funding Approximately $80 million was awarded to sustainabilityoriented projects across the state, as part of the Regional Economic Development Council competition. The green projects ranged from research money awarded to study alternative energy, waterfront revitalization, and smart growth. In New York City, Hunts Point Produce Market, CREATE @ Harlem Green, and NYC SeedStart program received funding. NYLCV President Marcia Bystryn & NYC Chapter Chair Jon Del Giorno listen to EDC President Adams Speaking at the NY League of Conservation Voters’ reception Celebrating a Greener Skyline, State Empire State Development Corporation President Kenneth Adams emphasized the importance of sustainability projects to the New York’s resurgence. The awards are evidence of the State’s commitment. The NY League of Conservation Voters is a non-partisan advocacy and political action organization that evaluates the performance of elected officials, campaigns for the passage of laws, particularly those pertaining to the environment, and seeks to educate the public about important issues. Retirees Sue State as Health Costs Rise The Retired Public Employees Association (RPEA), on behalf of its 40,000 members, this week began legal action against Governor Andrew M. Cuomo and New York State over an attempt to make public service retirees pay a larger portion of our health insurance costs. The suit asks for a rollback of a two percent (2%) increase in the percentage they pay toward the cost of their health insurance premiums. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 8 The lawsuit, RPEA, et al. v. Cuomo, et al., was filed in Albany County Supreme Court and is a combined Article 78/Declaratory Judgment action asking that Cuomo and other State officials who "administratively extended" provisions of negotiated union contracts to retired public employees be legally stopped from imposing such terms on existing retirees. "When we retired from the State there was a promise that our percentage cost would remain stable – now the administration feels that since they negotiated new contracts they can extend them to non-represented retirees,” Stan Winter, RPEA President, said. “The Taylor Law does not allow retirees to participate in collective bargaining and therefore, it is blatantly illegal to apply such agreements to those who have already retired." Under existing Civil Service Law, State employees who retired after January 1, 1983 pay ten percent (10%) of the cost of health insurance premiums for individual coverage and twenty-five percent (25%) for family coverage. The last time contribution percentages were changed as a result of union contracts existing retirees were "grandfathered" and only future retirees had to pay the increased percentages. They’re Back The City Council Thursday returned to its chambers in City Hall, following major renovations to the meeting room which dates back to 1897. For a year and a half the Council has been meeting across the street at the Chambers Street Emigrant Savings Bank as the City worked on the $124 million renovation of City Hall. Coming Up New York State Monday, December 12th Implementation and effectiveness of programs established pursuant to Patriot Plan I, II and III Assembly Standing Committee on Veterans’ Affairs Roosevelt Hearing Room C, Legislative Office Building, 2nd Floor, Albany, New York, 11 a.m. Pay Equity in the State of New York Assembly Committees on Governmental Employees, Governmental Operations & Oversight, Analysis and Investigation, and Assembly Task Force on Women’s Issues Assembly Hearing Room, 250 Broadway, Room 1923, 19th Floor, New York, New York, 11 a.m. Challenges facing the Childcare Community in New York State in 2012 Senate Standing Committee on Children and Families Senate Hearing Room, 250 Broadway, 19th Floor, New York, New York, 10 a.m. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 9 Housing Capital Programs Assembly Standing Committee on Housing Roosevelt Hearing Room C, Legislative Office Building, 2nd Floor, Albany, New York, 1 p.m. Tuesday, December 13th Examination of Programs that Support Seniors in the Community Assembly Standing Committee on Aging Assembly Hearing Room, 250 Broadway, Room 1923, 19th Floor, New York, New York, 10 a.m. Wednesday, December 14th Roundtable Discussion on the current and future issues and concerns of human services administrators, advocates and clients Senate Committees on Social Services & Children and Families Room 711-A, Legislative Office Building, Empire State Plaza, Albany, New York, 10 a.m. Thursday, December 15th Agricultural Disaster Relief and Preparedness Assembly Committees on Agriculture & Governmental Operations Roosevelt Hearing Room C, Legislative Office Building, 2nd Floor, Albany, New York, 11:30 a.m. New York City Monday, December 12th Committee on Parks and Recreation, 250 Broadway - Committee Rm, 16th Fl., 10 a.m. Oversight: Status of MillionTreesNYC Committee on General Welfare & Committee on Community Development, 250 Broadway Committee Rm, 14th Fl., 1p.m. Oversight: Poverty Trends in New York City Tuesday, December 13th Committee on Immigration, 250 Broadway - Committee Rm, 14th Fl., 10 a.m. Oversight: Treatment of NYC’s immigrants in detention centers. Committee on Higher Education, 250 Broadway - Hearing Rm, 16th Fl, 10 a.m. Oversight: How does the Accelerated Study in Associate Programs (ASAP) impact participating students at CUNY’s Community Colleges? Committee on Housing and Buildings, 250 Broadway - Committee Rm, 14th Fl., 1 p.m. Int 0404-2010 A Local Law to amend the administrative code of the city of New York, in relation to fines for illegal conversions of dwelling units from permanent residences to hotels. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 10 Wednesday, December 14th Subcommittee on Zoning and Franchises, 250 Broadway - Committee Rm, 16th Fl., 9:30 a.m. Committee on Transportation & Committee on Women's Issues, 250 Broadway, 16th Fl., 10 a.m. Int 0735-2011 A Local Law to amend the administrative code of the city of New York, in relation to strengthening the penalties for illegally operating non-TLC licensed vehicles for hire. Int 0725-2011 A Local Law to amend the administrative code of the city of New York, in relation to the unlawful use of vehicles for the purpose of promoting prostitution. Committee on Consumer Affairs, 250 Broadway - Committee Rm, 14th Fl., 10 a.m. Oversight: Tax Preparers in New York City – Auditing the Industry Subcommittee on Landmarks, Public Siting and Maritime Uses, 250 Broadway, 16th Fl., 11 a.m. Subcommittee on Planning, Dispositions and Concessions, 250 Broadway, 16th Fl., 1 p.m. Committee on Governmental Operations, 250 Broadway - Committee Rm, 14th Fl., 1p.m. Oversight: Encouraging Public Participation in the Rulemaking Process. Int 0698-2011 A Local Law to amend the New York city charter, in relation to modernizing the notice requirements for public hearings. Committee on Aging & Subcommittee on Senior Centers, 250 Broadway,16th Fl., 1 p.m. Oversight: Innovative Senior Centers Thursday, December 15th Committee on Public Safety, 250 Broadway - Committee Rm, 14th Fl., 10 a.m. Res 0821-2011 Resolution calling on the United States Congress to pass and the President to sign into law H.R.591/S.35, which would close the background check loophole at gun shows by establishing a background check procedure for all firearms sold at gun shows. Res 1122-2011 Resolution calling on the United States Senate and the President to oppose H.R.822, known as the “National Right-to-Carry Reciprocity Act of 2011,” which would allow a resident from one state who has a carry concealed handgun permit to lawfully carry his or her handgun into a different state, regardless of the licensing eligibility standards in the other state. Committee on Education, 250 Broadway - Committee Rm, 16th Fl., 10 a.m. Oversight: Department Of Education’s Division of Family and Community Engagement. Committee on Land Use, 250 Broadway - Committee Rm, 14th Fl., 1 p.m. Committee on Fire and Criminal Justice Services, 250 Broadway - Committee Rm, 16th Fl., 1 p.m. Oversight: Examining the NYC Department of Probation’s 2011 Strategic Plan Committee on Technology, Office of Emergency Management Emergency Operations Center 165 Cadman Plaza East, Brooklyn, 1 p.m. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com This Week In New York/Page 11 T2011-4083 Tour: Office of Emergency Management Emergency Operations Center Friday, December 16th Committee on Civil Rights Jointly with the Committee on Health, 250 Broadway - Committee Rm, 14th Fl., 10 a.m. Oversight: Cultural Competency Training at New York City’s Public Hospitals. Committee on Cultural Affairs, Libraries and International Intergroup Relations Jointly with the Committee on Lower Manhattan Redevelopment , 250 Broadway - Committee Rm, 16th Fl., 10 a.m. Oversight: The Future of the South Street Seaport Museum. Committee on Environmental Protection Jointly with the Committee on Waterfronts, 250 Broadway Committee Rm, 16th Fl., 1 p.m. Oversight: Climate Change Impacts and Mitigation Measures in New York City. Committee on Sanitation and Solid Waste Management Jointly with the Committee on Contracts, 250 Broadway - Committee Rm, 14th Fl., 1 p.m. Oversight: Examining the City’s Compliance with Environmentally Preferable Purchasing Laws. Committee on Small Business, 250 Broadway - Hearing Rm, 16th Fl., 1p.m. Oversight: Exploring Business Improvement Districts & Small Business Promotion during the Holidays. __________________________________________________________________________________ Disclaimer: The materials in this This Week in New York report are provided for informational purposes only and are not intended to be a comprehensive review of legislative or governmental or political developments, to create a client-consultant/lobbyist relationship, or to provide consulting, lobbying or political advice. Readers are cautioned not to attempt to solve specific problems on the basis of information contained in this This Week in New York. If consulting, lobbying or government relations advice is required, please consult a professional expert in such matters. The information contained herein, does not necessarily reflect the opinions of Pitta Bishop Del Giorno & Giblin LLC, or any of its partners or employees or its clients. Neither Pitta Bishop Del Giorno & Giblin LLC, nor its partners or employees make any warranty, expressed or implied, and assume no legal liability with respect to the information in this report, and do not guarantee that the information is accurate, complete, useful or current. Accordingly, Pitta Bishop Del Giorno & Giblin LLC is not responsible for any claimed damages resulting from any alleged error, inaccuracy, or omission. This communication may be considered an advertisement or solicitation. To Our Clients: If you have any questions regarding any of the matters addressed in this newsletter, or regarding any legislative, government relations or political or consulting or related issues in general, please contact the Pitta Bishop Del Giorno & Giblin LLC professional with whom you usually work. To Our Clients and Friends: To request that copies of this publication be sent to a new address or fax number, to unsubscribe, or to comment on its contents, please contact Theresa Cosgrove at tcosgrove@pittabishop.com or at (518) 449-3320. ______________________________________________ This Week in New York is a publication of Pitta Bishop Del Giorno & Giblin LLC, 120 Broadway, 28th Floor, New York, New York 10271. Pitta Bishop Del Giorno & Giblin LLC, 111 Washington Avenue, Albany, New York. (518) 449-3320 Theresa Cosgrove, editor, tcosgrove@pittabishop.com