The trouble with NYC’s emergency contracts

From: POLITICO New York Playbook - Friday Dec 01,2023 12:04 pm
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By Emily Ngo, Jeff Coltin and Nick Reisman

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With help from Jason Beeferman

Migrants wait in the cold as they look for a shelter outside a Migrant Assistance Center at St. Brigid Elementary School on Wednesday, Nov. 29, 2023, in New York. (AP Photo/Andres Kudacki)

Migrants wait in the cold outside St. Brigid Elementary School, which the city has labeled a reticketing center, in the East Village on Wednesday. Thousands of migrants continue to arrive to New York each week. | Andres Kudacki/AP

A lack of transparency plagued the emergency procurement process that Mayor Eric Adams’ administration relied on to help shelter and support migrants, a new report found.

“The failure to disclose and include the information about subcontractors is really where overpayment and integrity and corruption risks exist,” City Comptroller Brad Lander told Playbook.

Lander had warned in September that he may revoke Adams’ emergency-contract powers after the $432 million, no-bid contract for DocGo, the troubled vendor that subcontracted unlicensed security guards and was accused of mistreating migrants.

But the comptroller declined to comment Thursday when Playbook asked if he had changed his thinking on the mayor retaining such authority.

(The two have a strained relationship. Adams has bristled at Lander’s criticism and publicly mocked his partner in government.)

For its report, Lander’s office reviewed 292 new emergency contracts from January 2022 to last September, including 74 for asylum seeker services totaling $1.4 billion — or 80 percent of new emergency procurement dollars.

City Hall credited its emergency contracting authority with enabling a response to the migrant crisis that has, so far, left no families with children forced to sleep on the streets.

“The comptroller tying our hands behind our back is unfair to both new arrivals and longtime New Yorkers and will unquestionably slow down every step in the process,” an Adams spokesperson said.

The strain of the migrant surge can be seen and felt more acutely than ever.

Earlier this week, a line snaked outside the so-called reticketing center in the East Village.

Many of the migrants huddled in the cold weren’t waiting for free one-way tickets out of town but rather a new housing assignment after the 30-day limit on their shelter stay had lapsed.

In coming weeks, a battle will intensify over the cuts Adams says are necessary to offset the cost of housing migrants with limited federal aid. The budget gap was also widened by sunsetting Covid-19 dollars and new labor union contracts.

“I am saying to New Yorkers, I join your anger,” the mayor said earlier this week. “This is not the budget I want to pass.”

But why take a sledgehammer to city services when you can use a scalpel, several City Council members have demanded.

Council member Julie Won told Playbook that if she were in Adams’ position, “We would use fine, surgical precision on what we are cutting. We would review every single mayoral management report for every single agency, and we would do it by utilization and impact and outcomes and deliverables.” — Emily Ngo

HAPPY FRIDAY. Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.

WHERE’S KATHY? In New York City and her hometown Erie County with no public schedule.

WHERE’S ERIC? Hosting a closed-press presentation on plant-based nutrition and healthy eating, meeting with the president of United Airlines, presenting an award at the Dr. Richard Izquierdo Health & Science Charter School’s “Hoops for Junior” basketball game and holding a vigil to commemorate the 35th annual World AIDS Day.

QUOTE OF THE DAY: “All those awards and degrees that hang on Henry Kissinger’s walls should be removed. And we must not be revisionist. We must let history truly reflect who Henry Kissinger was, and what he did to the countless number of men and women who cried out and left their blood on the battlegrounds …” — Then-state Sen. Eric Adams in 2010, per video unearthed by NY1. The mayor’s public statement after Kissinger’s death Wednesday was much kinder.

 

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ABOVE THE FOLD

Rep. George Santos (R-N.Y.) speaks during a press conference outside the U.S. Capitol Nov. 30, 2023. (Francis Chung/POLITICO via AP Images)

Rep. George Santos at a press conference outside the U.S. Capitol on Thursday. Santos is expected to face a House expulsion vote today. | Francis Chung/POLITICO

SANTOS REALITY CHECK: Today could be the final day Republican Rep. George Santos is a member of Congress.

Lawmakers are expected to take up a vote later today to expel Santos, who is facing a raft of felony fraud and corruption charges and has acknowledged he fabricated swaths of his biography.

Santos has been publicly sanguine about the potential of being removed from office, even as he has lashed out at his fellow Republicans who want him gone.

“I’m willing to take the vote. Take the vote, guys. This is your time,” he said during the floor debate. “The most damning feature of this farce is the total perversion of this body and this conference who ran on a commitment to America.”

Still, freshman New York Republicans facing competitive races next year seemed to relish the chance to rip into Santos during the debate Thursday on the House floor.

“New Yorkers from Queens and Nassau County deserve better than Mr. Santos — a total fraud and serial liar,” Rep. Nick LaLota said.

“Dear God, my future former colleague is divorced from reality,” Rep. Marc Molinaro added.

Rep. Mike Lawler blasted Santos for falsely claiming to be the grandson of Holocaust survivors and that his mother was at the World Trade Center during the Sept. 11 attacks.

“Mr. Santos used tragic events in history to try and propel himself to public office,” Lawler said. “Worse than that, he not only defrauded the voters of the Third District, he defrauded donors.”

And yet, Santos has retained some support among the Republican conference to stay in office, at least for now. That includes Florida Republican Rep. Matt Gaetz, who led the charge to unseat Kevin McCarthy from the speakership earlier this year.

“If George Santos is convicted, he ought to be expelled,” Gaetz said. “But until then, it’s an incredibly dangerous thing for people in Washington, D.C. to substitute their judgment for the judgment of the voters.”

Democrats, meanwhile, have charged Republicans have moved too slowly to eject Santos — a signal that even if he’s out of office after today, the scandal-scarred Long Islander will remain a factor in the upcoming 2024 elections. — Nick Reisman

 

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WHAT CITY HALL IS READING

Kathryn Garcia hands out campaign literature with a van bearing her face parked behind here.

As former mayoral candidate Kathryn Garcia considers another run for mayor, the 2025 candidate field could look a lot like it did in 2021. | Michael M. Santiago/Getty Images

SO WE’RE JUST DOING 2021 AGAIN? Kathryn Garcia, who came 7,197 votes short of Eric Adams in the last mayoral primary, is considering running for mayor again, Bloomberg reported Thursday.

And Scott Stringer — a distant fifth place — will decide if he’s running again by January, the Daily News scooped.

Garcia and some of her old advisers didn’t respond to a request for comment, but somebody close to Adams previewed a line of attack if she decides to run.

Garcia’s now director of state operations for Gov. Kathy Hochul, so anything she’s done — like not giving as much migrant funding as the city would like — could be said about KG, the person said.

Still, an FBI investigation is touching the mayor’s world and a not-so-hot approval rating means these stories will keep coming.

City Hall says Adams isn’t going anywhere, by the way. “Stop spreading lies,” a spokesperson said to the Daily Mail for reporting rumors the mayor fears he’s about to be indicted.

Nobody has filed to run for office. So like Andrew Cuomo’s mayoral hopes, it’s all just talk for now.

“Running for mayor is one of the toughest tasks in politics. Seeing stories about people ‘thinking’ of running for mayor is just funny,” a Democratic consultant said to Playbook. “As if a day-dream about living in Gracie Mansion counts.”

Some big names are taking themselves out of contention — like Garcia’s boss. “I will tell you now, I will not be running for mayor of New York City,” Hochul joked Thursday.

Playbook also asked George Santos, who will likely be unemployed after today, if he plans to run for mayor.

“Why would I? That’s a thankless job,” he said. “And we all know the City Council runs the city.” — Jeff Coltin

More from the city:

New Jersey Gov. Phil Murphy is threatening another lawsuit if New York plans to charge drivers $15 a day or more for entering parts of the city. (POLITICO Pro)

The Department of Investigation has opened an inquiry into Winnie Greco, Adams’ director of Asian Affairs, after a report that she tried to benefit improperly from her government position. (The City)

City budget cuts include reductions to English-language classes and legal help for migrants. (City Limits)

 

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WHAT ALBANY'S READING

Kathy Hochul speaks at a desk.

Gov. Kathy Hochul is considering modifying the rules around non-compete clauses for individuals who earn less than $250,000. | Don Pollard/Office of Gov. Kathy Hochul

CAPPING NON-COMPETES: Hochul indicated Thursday that she wants a fair outcome as businesses and labor-allied organizations make a last-minute lobbying push over a bill to ban non-compete clauses in employment agreements.

One potential way: Capping which workers are restricted from non-compete clauses at those who earn less than $250,000.

“What I’m looking at right now is striking the right balance between protecting low-and-middle-income workers, giving them flexibility to have mobility to go from job to job and move up the ladder of success,” Hochul told reporters during an unrelated event in New York City. “But those who are successful have a lot more negotiating power, and they’re at the industries in an important part of our economy in New York.”

What Hochul prefers is a national policy for non-competes, which is being considered by federal regulators. She is worried state-by-state laws could hinder competition for New York.

“I think most of these policies should be national,” she said. “I think there should be a policy that is uniform.”

Hochul’s comments disappointed advocates who are trying to persuade her to sign the legislation in the coming days.

“A threshold at that level will leave behind thousands of New Yorkers and hurt workers, the state’s economy and our healthcare system,” Paul Sonn, the state policy director at the National Employment Law Project, said in a statement. — Nick Reisman

More from Albany:

New York’s top court is headed in a more progressive direction, especially concerning the rights of people accused of crimes, according to a recent spate of rulings. (New York Focus)

— A report from the state inspector general found New York punished 2,000 prisoners over false drug test results. (The Associated Press)

— New York has postponed the rollout of a controversial home care screening plan. (WCNY)

 

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FROM THE DELEGATION

FILE - Rep. Thomas Suozzi, D-N.Y., pauses while speaking with the media, Sept. 13, 2017, in Washington. Suozzi is joining a competitive primary race for New York governor that became wide open when Andrew Cuomo resigned. Suozzi told reporters at a virtual news conference Monday, Nov. 29, 2021 that he's jumping into the 2022 race. (AP Photo/Alex Brandon, File)

Former Rep. Tom Suozzi filed his full financial disclosure Wednesday, over a year after the update was due. | Alex Brandon/AP

SUOZZI FILES: Former Rep. Tom Suozzi filed his full financial disclosure statement with the state of New York on Wednesday — more than a year after the update was due, and two days after Playbook reported on the delinquent filing. It shows a variety of investments — yes, including at day camps — and his former congressional salary.

The disclosure was for Suozzi’s 2022 campaign for governor. He’s now hoping to make a comeback to Congress. — Jeff Coltin

More from the delegation:

Westchester County Executive George Latimer toured Israel this week in advance of an announcement on whether he will launch a heavyweight Democratic primary challenge against Rep. Jamaal Bowman. (POLITICO)

Nancy Pelosi got mad after AOC said “DCCC campaign vendors sucked” and that colleagues should be asking her how she beat Joe Crowley, according to a new book. (The Guardian)

— Republicans’ border policy push is getting support from an unexpected corner: Democratic mayors and governors. (POLITICO)

AROUND NEW YORK

Tens of thousands of people who bought tickets to the ill-fated Electric Zoo festival are still waiting for refunds, three months after it descended into chaos. (Gothamist)

A Phoenix meteorologist roasted the City of Rochester on-air as a place where “God says, ‘Don't bother living here.’" Suffice it to say Rochesterians are not happy. (Via News 8 WROC’s James Gilbert)

New DNA evidence found on Gilgo Beach victims' remains matches that of the suspected killer’s estranged wife. (Newsday)

 

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SOCIAL DATA BY DANIEL LIPPMAN

CLICKER — @lukeradel: “BREAKING EXCLUSIVE VIDEO: @Brandon4ny22 shouts at and threatens his former campaign manager and chief of staff at a holiday charity event in DC. @CitrusTVNews @RepWilliams: ‘You F*CK with my family, I’ll end every relationship that you have!’ #NY22”. Video

MAKING MOVES: Noah Gardy, former account supervisor at Edelman, is now press secretary for CUNY.

— Former New York City Council Land Use Director Raju Mann has joined the Battery Park City Authority as its president and CEO. (Crain’s)

— Loeb & Loeb has named Arash Khalili and Mitchell Nussbaum, as co-chairs of the firm. They had served as the co-chairs of the firm’s capital markets and corporate department. They are succeeding Kenneth Florin.

MEDIAWATCH: “Bloomberg launching weekend product, cutting BusinessWeek to monthly,” by Talking Biz News’ Chris Roush

— MetroFocus, PBS Thirteen’s local news show, is being canceled.

ENGAGED: Will Jackson, manager for grant compliance at the Environmental Defense Fund, proposed to Melissa Quinn, politics reporter for CBSNews.com. He proposed the Friday after Thanksgiving on the beach on Anna Maria Island, Fla., near where she's from. After popping the question and enjoying some champagne together, he surprised her by having her family come down to the beach to celebrate with them. The couple met on Hinge in October 2021. Pic

IN MEMORIAM: John T. Sullivan, a former mayor of the city of Oswego and a state Democratic Party leader, died Monday. (Syracuse.com)

HAPPY BIRTHDAY: Jen PsakiNatalie Wyeth Earnest … NYT’s Carlos PrietoAlex HowardYochi DreazenCharlie Anderson JS Kim

Real Estate

— After an annual real estate conference attended by Hochul, the city’s biggest developers are feeling a lot better about the future of real estate in New York than they did last year. (Crain’s New York Business)

This $7 million West Village penthouse is on the market, and its terrace is a whopping 2,737-square-feet. (New York Post)

 

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