Showing posts with label juan gonzalez. Show all posts
Showing posts with label juan gonzalez. Show all posts

Friday, March 25, 2011

Disclose the Details: Cloaked City Technology Contracts Result in $185K for a Help Desk Operator by Juan Gonzalez - New York Daily News

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New York City's private computer army keeps mushrooming under Mayor Bloomberg - and no one has any idea of its exact size.

What we do know is the city's overall contract spending has doubled to more than $10 billion in the last five years - and a huge part of the increase is for technology contracts.

Those computer armies can be found inside every city agency. Its foot soldiers sit at city desks.

They carry city ID cards. They spend all their time - often years - devising and maintaining huge information systems with Orwellian names like NYC WIN, ECTP, ACRIS, NICE, CitiServ.

Yet the outside contractors remain a world apart from the ordinary civil servants of our city. The techies routinely bill taxpayers for enormous salaries.

Since their salaries often come out of the city's capital budget, their names, titles and pay rates rarely appear in any expense reports the mayor makes public.

Last week, Brooklyn City Councilwoman Letitia James took a bold step. She introduced a bill that would require an annual report on the size and cost of outside contractors.

"This period of budget deficits is not the time to increase outsourcing," James said.

This column has documented for more than two years the runaway costs of such contracts. They include:

  • The 63 consultants from a little-known Florida-based company, Future Technology Associates, being paid an average of $250,000 a year to develop a new financial accounting system for the Department of Education. All of this money went to a firm that had no office and operated out of a mail drop.
  • The 230 consultants from defense giant SAIC who were paid an average of $400,000 a year - some of them for a decade - to design and install the infamous CityTime payroll and timekeeping system.
  • The nearly 200 Hewlett-Packard consultants who spent years overseeing the $2 billion upgrade to the city's 911 system, known as ECTP. Before Hewlett-Packard was bounced from the job for repeated delays and cost overruns, most of its consultants were being paid between $300,000 and $400,000.
  • The $500 million paid to Northrop Grumman to erect NYC WIN, a wireless network for first responders that has been dogged by problems. On top of that initial expense, the city pays Northrop $37 million annually just to maintain NYC WIN.


Under Northrop's contract, a low-level help desk operator is paid $185,000 annually. Meanwhile, a help desk operator directly employed by the city receives $46,000. Throw in pension and health insurance and the cost of that city employee barely reaches $70,000 - about a third of what Northrop charges.

In 2009, lawmakers in Albany required every state agency to provide annual reports on the number and cost of all outside contracts. Consultant costs have plummeted ever since.

James wants the same thing for the city, but Christine Quinn, the Council's powerful speaker, is bobbing and weaving. A close ally of the mayor, Quinn says she supports legislation to better track outside contracts, but she has yet to back making public the actual number of consultants per agency and their salaries.

Why the hesitation?

Taxpayers have a right to know how many $400,000-a-year consultants it takes to build one of these troubled computer systems.

jgonzalez@nydailynews.com

Friday, January 7, 2011

Mayor Bloomberg's Administration Has No Cash for Ambulances, But a Blizzard's Worth for Consultants by Juan Gonzalez - NY Daily News

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The use of outside contractors is just another way for the Bloomberg Administration to privatize City services and bust municipal labor unions...It also is a way to send City ca$h to favored contractors and political allies to the detriment of city taxpayors and bypass transparency and normal checks and balances... 

The city wasn't prepared for the blizzard, with ambulances and buses stuck all over, but Mayor Bloomberg is sinking millions into consultants and 911 upgrades.
You could pick snow chains, shovels and common sense. Or you could hire an army of $400,000-a-year computer consultants.
In the Bloomberg era, City Hall routinely chooses door No. 2 - and sticks us with the tab.
Everyone knows how long it took the mayor to admit snow removal in last month's blizzard was a disaster or that our city's emergency response system became woefully overwhelmed.
Now, before any investigation is complete, Bloomberg is rushing to scapegoat lower-level officials instead of holding himself and his top aides accountable.
EMS Chief John Peruggia was the first to be demoted. Others will surely follow.
Then we discovered this week that Bloomberg is planning to spend another $268 million on his hugely expensive modernization of the city's 911 system.
The 911 upgrade looks like another CityTime money pit. It has been beset with performance problems, is years behind schedule and already costs more than $2 billion - nearly double its original budget.
The latest contract only came to light because Controller John Liu blew the whistle Monday and balked at approving it.
Under Bloomberg's plan, defense giant Northrop Grumman is supposed to take over management of the project, which a previous contractor, Hewlett Packard, botched. Most of the $286 million expenditure is earmarked for consultant salaries.
More than 100 Northrop people would be paid an average of $380,000 annually, a Daily News analysis of contract documents found.
The agreement even provides annual 2.5% wage increases. The highest-paid consultant would begin at $454,000, and would increase steadily to $494,000 by the fifth year of the contract, the documents show.
Bloomberg is determined to pay such outlandish salaries at a time when he is cutting city workers and services.
The backlog in answering EMS calls during the storm had nothing to do with the new 911 computer system, the mayor said yesterday. All those buses, private cars and ambulances stuck in the snow created the problem.
If the city had spent some of that computer consultant cash on snow chains for city ambulances, many of them would not have gotten stuck.
"Fire engines and police cars all have chains for their tires, but we have nothing," said Bob Unger, a spokesman for the union of EMS workers. "Our union has raised the issue periodically and it wasn't addressed. The screwups here went far above Peruggia's pay grade."
Better yet, if Bloomberg and his top aides had used basic common sense and declared a snow emergency from the start, sanitation crews would have had better luck clearing the streets.
Look at Philadelphia. At noon on Dec. 26, before a single flake had fallen in that city, the National Football League postponed the Eagles-Vikings game that was scheduled for that night.
Two hours later, Philadelphia Mayor Michael Nutter declared a snow emergency. Up the turnpike in Newark, Mayor Cory Booker grabbed a shovel and went to work.
Here, Bloomberg & Company managed things by BlackBerry and Twitter from wherever they were. Immediately afterward, they went back to doling out the great new patronage of our time: $400,000-a-year consulting contracts.

Thursday, December 30, 2010

Deputy Mayor Stephen Goldsmith and His Flaky Ideas Doom New York During Storm by Juan Gonzalez - NY Daily News

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Stephen Goldsmith bungled New York's preparedness for Sunday's winter storm. Xanthos/News


City Hall's bungled response to the Blizzard of 2010 started at the top.
Any probe of what went wrong must first examine the key decisions Mayor Bloomberg and his new deputy mayor for operations, Stephen Goldsmith, made in the weeks and hours leading up to Sunday.
After all, our police, sanitation, fire and EMS workers have always performed admirably in previous storms.
And no one supervises snow removal better than Sanitation Commissioner John Doherty, a guy who actually rose through the ranks of his department.
So what was different this time?
Poor management, plain and simple.
It starts with Goldsmith, the hotshot former mayor of Indianapolis who made a name for himself as a "reinventor" of government. His big secret was laying off gobs of city workers and privatizing every service he could.
Bloomberg named Goldsmith his top deputy in April and has handed him enormous power to do the same thing here.
The blizzard was the new deputy's first big test - and he flunked.
To begin with, Goldsmith and Bloomberg refused to declare a snow emergency, even after they learned a blizzard was on the way.
"I started getting text messages from ambulance drivers at 3 a.m. Monday that they were stuck in the snow," said Pat Bahnken, president of the EMS workers' union. "I urged the Fire Department to declare a snow emergency, but they were told City Hall said 'no.'"
Back in 1996, a similar monster storm struck our city. It dumped 20 inches, closed airports, and left drifts 20-feet high.
Former Mayor Rudy Giuliani not only declared a snow emergency and ordered all nonessential vehicles off the road, he took 3,300 city buses out of service so they wouldn't block sanitation trucks and rescue vehicles.
Giuliani also asked then-Gov. George Pataki for help. Pataki dispatched 400 national guardsmen with 100 Humvees that were used as ambulances to transport medical supplies and health workers.
If Bloomberg and Goldsmith had done the same, we wouldn't have had hundreds of stuck buses and ambulances blocking main arteries.
"Under Rudy, every snowstorm was considered a big deal," one former Giuliani official said. "All commissioners and top staffers were expected to be at the command center and we all worked hard together."
This time, Goldsmith was out of town and didn't even show up at the command center until Monday. A City Hall spokesman wouldn't say where he was.
"He was in regular email and phone contact with Doherty and "[Office of Emergency Management Director Joseph] Bruno," mayoral spokesman Jason Post said.
The Sanitation Department has been Goldsmith's special target since he arrived in town.
"He micromanages everything in this department," is how one official put it.
Goldsmith is determined to cut the number of sanitation workers and use more private contractors for snow removal - something Doherty has resisted.
The staff reductions and the deputy mayor's scheduled demotion of 100 sanitation supervisors in January - putting them back in sanitation trucks and cutting the pay of many of them - has led to growing tension and made Goldsmith a hated figure in the department.
Those supervisors normally check that city trucks and private contractors do their routes properly. In some cases, some angry workers appear to have slowed down their work during the storm.
City Hall appeared yesterday to recognize the problem and may be backtracking on some of those demotions, several sources say.
So if you want to know what went wrong, start at the top.

Sunday, August 1, 2010

Obama Defends Sweeping Education Reforms in Face of Criticism from Minority and Teachers' Groups - Democracy Now!

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President Obama took on critics of his administration’s sweeping education reform plan on Thursday in a nearly hour-long speech at the National Urban League’s 100th anniversary convention. His address came on the heels of news that New York public school students are not performing nearly as well as prior state tests had revealed. We speak with Diane Ravitch, the former Assistant Secretary of Education under George H.W. Bush, and Leonie Haimson, executive director of Class Size Matters.

Friday, June 4, 2010

As Time Keeps Ticking, CityTime, New York's Monstrous $700M Money Pit, Still Growing by the Day by Juan Gonzalez - NY Daily News

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Even as he freezes pay for teachers and slashes budgets for most city agencies, Mayor Bloomberg plans to toss nearly another $100 million into the CityTime money pit next year.

That's the computerized timekeeping and payroll system that is seven years behind schedule and has already cost taxpayers more than $700 million - 10 times its original price tag.

The mayor has admitted CityTime is "a disaster," yet he refuses to turn off the spigot for the army of computer consultants that has fed off the project for at least a decade.

In March, the Daily News revealed that more than 230 private consultants billed an average of $400,000 each this year for their work on CityTime - with 11 of those consultants getting more than $600,000.

City officials finally moved to bring some of the work in-house for next year.

Beginning next month, the Office of Payroll Administration will hire 61 computer technicians at an average salary of $77,000 - and all will be assigned to CityTime.

But those new employees will cost only a tiny portion of the new spending allotted for CityTime.

An official at the Office of Payroll Administration confirmed yesterday that the agency will spend an additional $93 million next year on the project, including:

  • About $5 million for the new employees.
  • Just from its operating budget, Office of Payroll Administration will more than double spending for CityTime consultants, from $27 million this year to $57 million next year.
  • And the agency will receive an additional $30 million from city capital funds to pay other consultants to install the system at additional city agencies.

    So far, only about 53,000 of an estimated 145,000 city employees are even on the new payroll system, which includes controversial biometric hand scanners that are being required for a big share of the workforce.

    The system has yet to be launched in the biggest city agencies, including the police and fire departments, and the Education Department.

    "Costs going forward cover final implementation at the remaining agencies and the expected operating costs to run the system when it's online," said the Office of Payroll Administration official, who asked not to be identified.

    The money earmarked for next year, the spokesperson said, "is $32 million less" than the current year.

    But that misses the entire point.

    When CityTime was introduced back in 1998, it was supposed to cost only $68 million.

    It is now approaching $800 million, and may very well surpass $1 billion.

    No wonder city Controller John Liu, who is now auditing CityTime, has called on Bloomberg to stop the project.

    "In light of all the cuts to human and social services, this amount of money for a timekeeping system is unacceptable," said Brooklyn City Councilwoman Letitia James (WFP-Brooklyn).

    James, co-chairwoman of the Council's Contracts Committee, has already held several hearings on the project's runaway costs.

    She vowed to "call [city Budget Director] Mark Page to account about CityTime" when he appears at a Council Finance Committee meeting scheduled for Monday.

  • About $5 million for the new employees.

    • Just from its operating budget, Office of Payroll Administration will more than double spending for CityTime consultants, from $27 million this year to $57 million next year.

    • And the agency will receive an additional $30 million from city capital funds to pay other consultants to install the system at additional city agencies.

    So far, only about 53,000 of an estimated 145,000 city employees are even on the new payroll system, which includes controversial biometric hand scanners that are being required for a big share of the workforce.

    The system has yet to be launched in the biggest city agencies, including the police and fire departments, and the Education Department.

    "Costs going forward cover final implementation at the remaining agencies and the expected operating costs to run the system when it's online," said the Office of Payroll Administration official, who asked not to be identified.

    The money earmarked for next year, the spokesperson said, "is $32 million less" than the current year.

    But that misses the entire point.

    When CityTime was introduced back in 1998, it was supposed to cost only $68 million.

    It is now approaching $800 million, and may very well surpass $1 billion.

    No wonder city Controller John Liu, who is now auditing CityTime, has called on Bloomberg to stop the project.

    "In light of all the cuts to human and social services, this amount of money for a timekeeping system is unacceptable," said Brooklyn City Councilwoman Letitia James (WFP-Brooklyn).

    James, co-chairwoman of the Council's Contracts Committee, has already held several hearings on the project's runaway costs.

    She vowed to "call [city Budget Director] Mark Page to account about CityTime" when he appears at a Council Finance Committee meeting scheduled for Monday.

  • About $5 million for the new employees.
  • Just from its operating budget, Office of Payroll Administration will more than double spending for CityTime consultants, from $27 million this year to $57 million next year.
  • And the agency will receive an additional $30 million from city capital funds to pay other consultants to install the system at additional city agencies.

    So far, only about 53,000 of an estimated 145,000 city employees are even on the new payroll system, which includes controversial biometric hand scanners that are being required for a big share of the workforce.

    The system has yet to be launched in the biggest city agencies, including the police and fire departments, and the Education Department.

    "Costs going forward cover final implementation at the remaining agencies and the expected operating costs to run the system when it's online," said the Office of Payroll Administration official, who asked not to be identified.

    The money earmarked for next year, the spokesperson said, "is $32 million less" than the current year.

    But that misses the entire point.

    When CityTime was introduced back in 1998, it was supposed to cost only $68 million.

    It is now approaching $800 million, and may very well surpass $1 billion.

    No wonder city Controller John Liu, who is now auditing CityTime, has called on Bloomberg to stop the project.

    "In light of all the cuts to human and social services, this amount of money for a timekeeping system is unacceptable," said Brooklyn City Councilwoman Letitia James (WFP-Brooklyn).

    James, co-chairwoman of the Council's Contracts Committee, has already held several hearings on the project's runaway costs.

    She vowed to "call [city Budget Director] Mark Page to account about CityTime" when he appears at a Council Finance Committee meeting scheduled for Monday.

  • Friday, May 7, 2010

    Albany Charter Cash Cow: Big Banks Making a Bundle on New Construction as Schools Bear the Cost by Juan Gonzalez - NY Daily News

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    Wealthy investors and major banks have been making windfall profits by using a little-known federal tax break to finance new charter-school construction.

    The program, the New Markets Tax Credit, is so lucrative that a lender who uses it can almost double his money in seven years.

    In Albany, which boasts the state's highest percentage of charter school enrollments, a nonprofit called the Brighter Choice Foundation has employed the New Markets Tax Credit to arrange private financing for five of the city's nine charter schools.

    But many of those same schools are now straining to pay escalating rents, which are going toward the debt service that Brighter Choice incurred during construction.

    The Henry Johnson Charter School, for example, saw the rent for its 31,000-square-foot building skyrocket from $170,000 in 2008 to $560,000 last year.

    The Albany Community School's rent jumped from $195,000 to $350,000.

    Green Tech High Charter School rents went from $443,000 to $487,000.

    Meanwhile, all the Albany charter schools haven't achieved the enrollment levels their founders expected, even after recruiting hundreds of students from suburban school districts to fill their seats.

    The result has been less money in per-pupil state aid to pay operating costs, including those big rent bills.

    Several charters have fallen into additional debt to the Brighter Choice Foundation.

    You'd think these financial problems would raise eyebrows among state regulators - or at least worry those charter school boards.

    But the powerful charter lobby has so far successfully battled to prevent independent government audits of how its schools spend their state aid.

    And key officers of Albany's charter school boards are themselves board members, employees or former employees of the Brighter Choice Foundation or its affiliates.

    Christian Bender, for example, executive director of the foundation, is chairman or vice chairman of four of the Albany charters.

    Tom Carroll, the foundation's vice chairman and one of the authors of the state's charter law when he was in the Pataki administration, was a founding board member of Albany Community Charter School and is currently chairman of two other charters, Brighter Choice School for Boys and Brighter Choice School for Girls.

    Carroll also sits on the board of directors of NCB Capital Impact, a Virginia organization that used New Market Credits to pull together investors for all the Albany building loans.

    A Brighter Choice official confirmed Thursday that the Virginia organization gets "a 3% originating and management fee" for all school construction deals that Brighter Choice arranges.

    Under the New Markets program, a bank or private equity firm that lends money to a nonprofit to build a charter school can receive a 39% federal tax credit over seven years.

    The credit can even be piggybacked on other tax breaks for historic preservation or job creation.

    By combining the various credits with the interest from the loan itself, a lender can almost double his investment over the seven-year period.

    No wonder JPMorgan Chase announced this week it was creating a new $325 million pool to invest in charter schools and take advantage of the New Markets Tax Credit.

    So does Carroll see any problem with being simultaneously part of the landlord, tenant and lending bodies for Albany charter-school construction?

    "I sit on the nonprofit NCB Capital Impact board as a volunteer," he said this week. "On that board, I have never voted on any of the deals that Brighter Choice Foundation has been a party to."

    Albany is exhibit A in the web of potential conflicts that keep popping up in the charter school movement. It's one reason the state Legislature should refuse to lift the current cap on charter schools unless it also adopts stringent new government auditing rules.

    If wealthy investors and banks can double their money simply by building charter schools, taxpayers deserve to know exactly who arranged those deals, who will benefit and what they will ultimately cost each school.

    Thursday, April 19, 2007

    A Pulitzer for Juan Gonzalez by Ben Smith...



    I was thrilled to see my old colleagues on the Daily News editorial board win a Pulitzer for their all-out fight to put the heatlh of Ground Zero workers on the local and national agenda.

    One guy who really deserves that award, though, was left off: News columnist Juan Gonzalez.

    Gonzalez was hammering the issue when most of the New York press, myself included, were believing assurances from the local and federal governments that the air was fine, assurances that virtually everyone has since backed off. A few local officials, led by Jerry Nadler, among others, didn't buy it, and neither did Juan.

    Way back on September 28, 2001 he wrote the first about 30 columns on the subject,

    "Ever since the World Trade Center disaster, federal and city officials have said there is minimal risk from the fetid, dust-filled air and smoke that continue to envelop Ground Zero. But independent tests of dust samples around the site have found dangerous levels of cancer-causing asbestos, fiberglass - and even residues of human bone particles," Gonzalez wrote. "Leaders of the Patrolmen's Benevolent Association retained the New York Environmental Law and Justice Project to conduct independent monitoring after dozens of cops assigned to rescue operations voiced their worries to union leaders about what is in the polluted air they keep breathing."

    Read entire article posted at Room 8 - NY Politics...

    I couldn't agree more with Ben's assessment...Juan was way ahead of the rest of the pack on this issue...he also hammered away on his Democracy Now! broadcasts about the air quality downtown after 9-11 ...

    Read the transcript or listen to a segment which aired on Friday, October 26th, 2001 - Toxic Zone: World Trade Center Clean-Up Workers Face Hazardous Conditions...
    Juan co-hosts Democracy Now! with Amy Goodman - it's on Times-Warner Cable (Queens) on Channel 75 at 1 am and can be viewed online...