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City & State New York
July 11, 2016
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EDITOR’S NOTE / Contents
Jon Lentz Senior editor
Shortly after the 2016 legislative session came to an end in Albany, the critics took Gov. Andrew Cuomo and state lawmakers to task. Editorial boards attacked the governor for failing to deliver a credible package of ethics reforms. Others assailed the lack of progress on the lapsed 421-a real estate tax credit, the impasse over allocating the bulk of some $2 billion for housing or the gridlock on upstate ride sharing. But going back to the governor’s tagline for this year – “Built to Lead” – some progress was made, at least on the building part. The Metropolitan Transportation Authority’s $27 billion capital plan was approved. A similar sum was agreed to for state Department of Transportation projects. It’s not clear where all the money will come from, where it will be going or if some of the ambitious proposals will ever pan out. But even if some of them hit a brick wall, there are enough major transportation projects already underway in New York that the governor will have something concrete to point to when asked about his legacy.
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EDUCATION By declaring “emergencies,” the Board of Regents has been making sweeping policy changes before the public can comment, Chalkbeat New York writes.
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NYPD STAFFING Marco Poggio looks at why the plan to “civilianize” desk jobs at the police department has slowed.
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SPOTLIGHT: MASS TRANSPORTATION With funding scarce, state and city officials try to find ways to improve and expand New York’s mass transit network.
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NEW YORK SLANT Former Assemblyman Richard Brodsky and transportation advocate Larry Penner on the future of transit in New York.
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EDITORIAL editor@cityandstateny.com Editorial Director Michael Johnson mjohnson@cityandstateny.com Senior Editor Jon Lentz jlentz@cityandstateny.com Albany Reporter Ashley Hupfl ahupfl@cityandstateny.com
City & State is the premier multimedia news organization dedicated to covering New York’s local and state politics and policy. Our indepth, non-partisan coverage serves New York’s leaders every day as a trusted guide to the issues impacting New York. We offer round-the-clock coverage through our weekly publications, daily e-briefs, events, on-camera interviews, weekly podcast and more.
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City & State New York
July 11, 2016
THE FOOTNOTE
A real press release, annotated
Sent at 10 a.m. on July 6, from the New York City Department of Investigation’s press office
CITYWIDE CAMPAIGN URGES NEW YORKERS TO REPORT BRIBERY AND CORRUPTION TO DOI “Bribery & Corruption Are a Trap. Don’t Get Caught Up. Report It. At 212-3-NYC-DOI”
Peters, a friend of Bill de Blasio who served as his campaign treasurer and raised more than $20,000, faced scrutiny over his appointment. He said he would remain independent.
Fifty-five percent of New York City voters say de Blasio “does favors for developers who make political contributions to campaigns in which he is involved,” a May Quinnipiac University poll found.
MARK G. PETERS, Commissioner of the New York City Department of Investigation (“DOI”), in collaboration with Frank Ginsberg, Founder, Chairman and CEO of the advertising agency afg&, announced a fiveborough media campaign warning New Yorkers of the risks and costs of bribery and corruption and encouraging them to report these crimes to DOI at 212-3-NYC-DOI. The poster campaign debuted this week on the sides of buses telling New Yorkers that “Bribery & Corruption Are a Trap. Don’t Get Caught Up. Report It.” In the coming weeks, the posters will be displayed in subway stations and subway cars. The subway-and-bus campaign complement an ongoing radio campaign on 1010 WINS and WCBS 880 that drives home the serious impact of corruption through DOI investigative scenarios. Both the print and radio campaigns were created pro-bono by afg&, which also created DOI’s 2013 poster campaign, “See Something Crooked in NYC?,” and the 1990s campaign, “Get the Worms Out of the Big Apple.” Discussions on the creative concepts for this year’s radio and poster campaigns began last fall with Ginsberg and his creative team. The goal – publicize the damaging blow corruption has on the City and empower New Yorkers to do something about it. The radio segments can be listened to at the following link: http://www.nyc.gov/html/doi/html/pr/ media_campaign.shtml A copy of the poster is attached to this release and over the next several months will also be posted at City agencies. DOI Commissioner Mark G. Peters said, “This media campaign challenges New Yorkers to act if and when they see the crimes of bribery and corruption. This type of wrongdoing corrodes the City’s ability to effectively reach its citizens; impedes progress; and diminishes the people’s faith in government. This campaign underscores that when it comes to bribery and corruption, New Yorkers are part of the solution.”
The agency received 11,445 complaints in 2015, down from 12,624 in 2014 and 12,659 in 2013.
The $312,000 campaign will be funded with money seized in DOI investigations.
afg& Chairman Frank Ginsberg said, “It was very important to us that we create a simple yet powerful message imploring New Yorkers to stand up to corruption. More often than not, our citizens know when any wrongdoing is occurring, however don’t know how to report it or whom to call. Through this campaign we are giving New Yorkers the tools to help the DOI stop or prevent these crimes.”
Eighty-six percent of voters say political corruption in New York City is a “very serious” or “somewhat serious” problem, according to a May Quinnipiac University poll. Just 2 percent said it is “not a problem at all.”
DOI has issued reports critical of a number of city agencies and departments, including the NYPD and NYCHA. One area that DOI has focused on is construction fraud. “One person can absolutely make a difference,” Peters told City & State earlier this year. “Just last year, we arrested 50 building inspectors, related contractors and property owners in a massive bribery scheme, and it all started with a single tip from a single person who told us about a single bribe attempt.”
In April, Peters declined to recuse himself from a high-profile investigation into two de Blasio donors and their interactions with NYPD officials, despite having served as de Blasio’s campaign treasurer. But two days later, he stepped aside to avoid “the appearance of a conflict.”
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July 11, 2016
Last month, City & State celebrated the launch of our “Future of Manhattan” special issue at Lucille's Bar & Grill at B.B. King's. The event, sponsored by New York Road Runners, Zipcar, State Farm, the Greater New York Chamber of Commerce and the Manhattan Chamber of Commerce, featured keynote remarks by Manhattan Borough President Gale Brewer. To read the issue, including in-depth looks at Manhattan’s most cutting-edge developments and elected officials’ visions for the future of the borough, visit cityandstateny.com.
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7/6/16 12:31 PM
City & State New York
July 11, 2016
Feeding N.Y. With Food & Jobs BY BRUCE REINGOLD
California’s Silicon Valley and New York City both benefit significantly from employment in the high tech sector and local governments recognize their importance with public policy that encourages job creation and retention. In our region, many thousands of these well-paying jobs produce significant tax revenue and contribute positively to the entire economy. New York is also recognized as the foodie capital of our nation, with thousands of restaurants and a thriving tourism and hospitality sector that last year catered to 54 million visitors. To many, the economic ecosystem supporting that segment of our job base is equally as vital. Fortunately the leaders of the New York City Council have recognized this and have singled out the role of the Hunts Point Market in supporting and supplying our city with fresh, affordable, quality food products and over ten thousand well-paying jobs.
The Hunts Point Cooperative Meat Market is the largest market of its kind in the world. The Co-Op is home to over 50 companies, employing close to 3,000 mostly Bronx residents. Its economic footprint is massive, with annual sales exceeding $3.2 billion, distributing 2.5 billion pounds of meat to more than 7,500 supermarkets, butcher shops, mom & pop businesses, restaurants, hotels, country clubs, hospitals, universities and catering facilities. No business can do without a reliable source of electricity, but that need could not be greater for an industry where constant refrigeration is part of our daily survival. Remember not too long ago, all the food service businesses that collectively lost billions of dollars – and the workers who went without pay – because of disruptions caused by Superstorm Sandy, Hurricane Irene and the 2003 Northeast Blackout. A new grant of $3.45M from the City Council to the City Economic Development Corp, which is Hunts Point’s landlord, will enable the market to purchase emergency generators for backup power at the Meat Market Cooperative. This is critical for ensuring not only the safe and continuous operation of one of our area’s most important food suppliers but security for
thousands of workers who depend upon these well-paying jobs to feed their own families. Originally built in 1972, the facility is now spread across 60 acres with 7 buildings and one million square feet of refrigerated space, but continues to lack emergency electrical back-up equipment in the event of a power outage. Consider the devastating impact on food prices if the facilities and businesses that supply 50 percent of the region’s meat lost their refrigeration. This scenario is completely unacceptable. Significant credit must be extended to Councilmember Rafael Salamanca Jr., the Bronx City Council delegation, along with Speaker Melissa Mark-Viverito, and New York City Economic Development Corporation, for recognizing the critical importance of a reliable electricity supply that feeds jobs and New York alike. About the Author: Bruce Reingold is the general manager at the Hunts Point Cooperative Market. SPECIAL SPONSORED SECTION
WWW . A R E A - A L L I A N C E . O R G
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July 11, 2016
CHAINED to a DESK Effort to ‘civilianize’ NYPD desk jobs slows By MARCO POGGIO
City & State New York
MICHAEL APPLETON/MAYORAL PHOTOGRAPHY OFFICE
July 11, 2016
DESPITE A PLAN to replace uniformed New York City Police Department officers working desk jobs with full-time civilian staffers, allowing the officers to return to law enforcement duties, experts say the pace of civilian hiring has slowed, raising concerns over the agency’s ability to reduce its operating budget. According to a report released in March by the Independent Budget Office, a publicly funded budget watchdog agency, the NYPD has continued to hire new uniformed officers while the headcount for full-time civilian staffers has decreased in the current fiscal year, the opposite of what the de Blasio administration had planned. Monica Klein, deputy press secretary for Mayor Bill de Blasio, said via email that the NYPD has been aggressively hiring and training new officers as part of de Blasio’s commitment to 1,300 new uniformed officers spelled out in the final negotiations for the current fiscal year’s budget. “Now that that process is wrapping, the focus has moved to hiring (the) 415 new civilians,” Klein said, though she declined to say how many civilians have been hired so far. In his testimony at a budget hearing in May, NYPD Commissioner William Bratton said the police force underwent a “robust civilianization program” that allowed it to redeploy 700 more uniformed officers to patrol. An NYPD representative said in an email that the cumulative civilian headcount was 17,748 as of April 30. But that figure includes jobs that are not full-time – mostly school crossing guards and police cadets – a budget expert said. Bernard O’Brien, the IBO senior budget analyst who authored the report, said the NYPD’s full-time civilian headcount actually declined by 95, from 14,535 in June 2015 to 14,440 at the end of April. Joseph Giacalone, a retired detective sergeant who is now an adjunct professor at John Jay College of Criminal Justice, said the NYPD has tried to “civilianize” its ranks for decades, but the plan slipped across administrations without ever coming to full fruition. Replacing the large number of cops currently on desk duty with civilians would help reduce the department’s expenditures, because uniformed officers have a higher pay rate. It would also allow the police force to better utilize its resources by reassigning uniformed officers to direct law enforcement activities. But the NYPD struggles to find civilian staffers who are as effective as cops in cer-
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“MANY CIVILIANS DON’T UNDERSTAND THE INNER WORKINGS ON HOW TO RUN A POLICE DEPARTMENT, SO WE STILL END UP PUTTING COPS BACK THERE EVENTUALLY.” - JOSEPH GIACALONE, retired detective sergeant, adjunct professor at John Jay College of Criminal Justice
tain positions, Giacalone said. “Many civilians don’t understand the inner workings on how to run a police department, so we still end up putting cops back there eventually,” he said. NYPD representatives did not immediately respond to a request for comment. There are certain areas where civilians are effective, such as intelligence analysis, social media work and filing duties. But precincts still need a heavy presence of uniformed officers to run their day-to-day operations, Giacalone said. Over the years, the civilianization of the NYPD has been deemed an act of fiscal responsibility recommended by city comptrollers. In his comments to the preliminary budget for fiscal year 2016, New York City Comptroller Scott Stringer reported that the NYPD had planned to increase its civilian headcount by 1,421 units, more than three times the number that ended up in the final budget proposal. A spokesman for the comptroller’s office declined to comment on the administration’s step back in full-time civilian hiring mentioned in the IBO report. “Progress along the civilianization front
seems to have stalled,” O’Brien wrote in the report, adding that the hiring slowdown saved the NYPD $79 million of the $688 million budgeted for the salaries of new full-time civilians. Giacalone said hiring civilians would help save a “tremendous” amount of resources in the long run. To do so, the department will have to hire civilian staffers who can efficiently replace uniformed officers in certain positions. Attracting potential candidates for civilian positions with salaries that are considered less than competitive has been a challenge for the NYPD, Giacalone said. Police dispatchers and 911 operators careers pay a starting salary of $35,545, which can increase to a maximum of $48,127, according to the NYPD’s website. Clerical and data entry positions start at $32,888 per year. The starting salary for school safety agents is $31,259 and traffic enforcement officers receive a base pay of $29,217. “If they really want to civilianize the police department, they’ll have to raise the salaries, raise the standards,” Giacalone said, “You can’t live in New York City on $30,000 a year.”
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July 11, 2016
EDUCATION
EARLY ACTION Critics scold Regents for passing policies before public can weigh in
NYSUT
By MONICA DISARE from CHALKBEAT NEW YORK
REGENTS VICE CHANCELLOR T. ANDREW BROWN, REGENTS CHANCELLOR BETTY ROSA AND STATE EDUCATION COMMISSIONER MARYELLEN ELIA.
WITH ALMOST NO public warning and little board discussion, a 17-member policymaking body wiped out one of the main elements of New York’s teacher evaluation law late last year. A few months later, that same body – the New York State Board of Regents –
passed a regulation that enabled thousands of students with disabilities to become eligible for diplomas only weeks before graduation. The provision was enacted so quickly, some disabled students could have diplomas in hand even before the public comment period on the measure ends.
How can the board be allowed to make sweeping policy decisions with such little notice? According to New York state, these regulations were “emergencies.” State law allows policymakers to bypass normal rules of public comment if a measure is necessary to preserve “public
NYSUT
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July 11, 2016
health, safety or general welfare.” But increasingly, that provision has been used in situations that critics say fall short of that bar. “When there’s a trend of major policy decisions being made via emergency measures, that feels like a misuse of the policymaking authority,” said Ethan Gray, founder and CEO of Education Cities, a nonprofit that works in 24 cities across the country. “There’s no state that I know of that is making changes as sweeping as New York (is) right now.” The state argues that each provision is necessary to protect the general welfare of students and teachers. The change to teacher evaluations, for example, was touted as necessary to ease the burden of last year’s unpopular law on schools and districts. Graduation changes, state officials argue, were intended to make sure qualified students could graduate this year. “Emergency actions are just that – emergencies,” said New York state education department spokeswoman Jeanne Beattie. “The emergency regulations recently considered and passed by the Board of Regents were necessary to ensure that students who may not have otherwise graduated this year have the opportunities to pursue college or career with a New York state diploma.” State Education Commissioner MaryEllen Elia hinted at another reason for emergency regulations. “There are a lot of things on our plate right now and as we get them completed, we want to move forward,” Elia said after changing graduation requirements. State officials also argue that they have reached out to stakeholders and are responding to community concerns when they pass emergency regulations. A task force convened by Gov. Andrew Cuomo, for example, suggested placing a moratorium on the use of grades 3-8 state math and ELA tests in teacher evaluations a few days before the board voted on the measure. But good government advocates say treating these issues as “emergencies” deprives the board of a robust public conversation. Robert Freeman, executive director of the Committee on Open Government, wasn’t impressed by the provision that requires Regents to open public comment after an emergency regulation is enacted but before adopting it permanently. “What good is public comment if they’ve already done it?” he asked.
Last year, when the state had to adopt emergency regulations to implement some teacher evaluation provisions, the state education department created an email address where people could send their opinions about the changes and let them offer comments at an Albany “summit,” according to Politico. There is good reason to have the public weigh in on policy changes, critics say. It allows advocacy groups to explain how the policy will affect their members and avoids changing the rules on schools at the last minute. Brooklyn Preparatory High School Principal Noah Lansner told Chalkbeat that a student at his school might have
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education issues, most of what I’ve seen has been very deliberative and thoughtout assessments of policies,” Carr said. “I’ve just found it kind of interesting that some of these new (graduation) pathways issues have been done on an emergency basis without a real explanation of what the emergency is.” Bob Lowry, deputy director of the New York State Council of School Superintendents, echoed his concerns. In the past, the state would sometimes post materials weeks in advance of meetings, have extended discussions about policy papers, and then hold an “intense debate” about how to execute those policies, he said. Now those policy
“WHEN THERE’S A TREND OF MAJOR POLICY DECISIONS BEING MADE VIA EMERGENCY MEASURES, THAT FEELS LIKE A MISUSE OF THE POLICYMAKING AUTHORITY. THERE’S NO STATE THAT I KNOW OF THAT IS MAKING CHANGES AS SWEEPING AS NEW YORK (IS) RIGHT NOW.” - ETHAN GRAY, founder and CEO of Education Cities
benefited from the state’s decision to allow students with disabilities to earn a diploma by passing only the math and English Regents exams. But since the measure was passed in June, the student spent the entire year trying to pass four Regents, and ultimately failed to graduate this year. “If I knew in September that he would graduate with only (the math Regents), we would have been focusing all of our efforts on that,” Lanser said. When the board made sweeping changes to graduation requirements in the past, it held a series of long discussions about how the changes would affect students, said Peter Carr, an advocate for career and technical education. “In my short time dealing with
memos are often posted late Friday for a Monday morning meeting, though a new state law may require the state education department to post materials slightly earlier. “It’s perhaps understandable why the department has not been able to continue to apply that practice,” Lowry said. “But there’s something between the way the department functioned years ago and waiting until after 5 p.m. on Friday to post items.”
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Chalkbeat New York is a nonprofit news organization that covers educational change efforts in New York.
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Spotlight
July 11, 2016
MASS TRANSPORTATION It’s happened to all of us. Your subway line is shut down without any advance notice. Your commuter train waits and waits on the tracks, with no explanation. You rush to the airport to catch your flight, only to find that it has been inexplicably delayed. New York’s extensive mass transportation network moves millions of people every day, but it’s only when the system breaks down that we realize how critical it is to our everyday lives. As federal funding has been harder to come by, state and city officials are trying to find ways to improve and expand that network. Gov. Andrew Cuomo this year spoke of some $100 billion in public projects, a program headlined by the Second Avenue Subway, the Gateway rail tunnel and an overhaul of LaGuardia Airport. For his part, New York City Mayor Bill de Blasio is pitching everything from streetcars to ferries to more dedicated bus lanes. In this special section, City & State navigates the issues at play as these officials try to get New Yorkers moving.
July 11, 2016
City & State New York
CONTENTS
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CUOMO’S NEW STATE CONSTRUCTION MONITOR DRAWS MIXED REVIEWS By BOB HENNELLY
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QUICK TAKES WITH MTA CHAIRMAN AND CEO THOMAS PRENDERGAST AND STATE SENATE TRANSPORTATION COMMITTEE CHAIRMAN JOSEPH ROBACH
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WITH BIG TRANSPORTATION PROJECTS IN THE WORKS, FIVE CONTRACTORS TO WATCH By JON LENTZ
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July 11, 2016
– CON TROLL– –ING COSTS Cuomo’s new state construction monitor draws mixed reviews By BOB HENNELLY
THE FINAL VERSION of a new state construction oversight agency will be a scaledback version of Gov. Andrew Cuomo’s initial proposal. That much is clear. What’s less clear is whether the changes to the agency, which is tasked with ensuring that major public works projects are completed on time and on budget, are actually improvements. “It is not the new approach that most of us had hoped for that would have dealt with the chronic cost overruns and change orders that frustrate us on behalf of the taxpayers who feel the impact,” said Kathryn Wylde, president and CEO of the Partnership For New York City, a civic coalition of the city’s largest employers. Under legislation passed this spring as part of Albany’s budget process, the state will create the New York State Design and Construction Corporation, a subsidiary of the Dormitory Authority of the State of New York, which already oversees well over a half billion dollars in public construction annually. The DCC, which will be led by a three-member board appointed by the governor, will review public works projects worth at least $50 million that are undertaken by state agencies and independent authorities, like the Metropolitan Transportation Authority. Freeman Klopott, director of communications and marketing for DASNY, confirmed the creation of the new oversight body, but said that its “corporate structure is currently being designed.” Critics like Wylde say the compromise legislation will result in an agency that is too watered down to do the job. “The final version that was ultimately approved was defanged,” Wylde told City & State. “The changes took away the ability of
City & State New York
July 11, 2016
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NEW YORK STATE THRUWAY AUTHORITY
CONSTRUCTION CONTINUES ON THE TAPPAN ZEE BRIDGE REPLACEMENT, DUBBED “THE NEW NY BRIDGE.”
the Design and Construction Corporation to originate and manage projects, or, if they felt an agency was not up to the task of successfully completing a major capital project, to take it over.” But Gerrard Bushell, DASNY’s president and CEO, said he is confident the new oversight body has all the tools it needs to do the job. “DASNY has a proven record of construction prowess, which is why the governor and the Legislature are relying on the DCC to provide additional project management expertise to streamline the state’s biggest projects,” Bushell said via email. “Through its collaborative framework, the DCC will maximize taxpayers’ support of Governor Cuomo’s unprecedented investment in New York’s aging infrastructure. The DCC will help make New York a better place to live and work.” Bushell’s optimism is shared by other stakeholders, such as Building Trades Employers’ Association President and CEO Lou Coletti, who were skeptical about the initial proposal but now think that what was ultimately approved is a significant step in the right direction. “What this subsidiary will do is insure that decisions are made in a timely manner,” Coletti said, which he reasons will greatly improve the odds that the final projects are brought in on budget. “As it is right now, the auditors and the attorneys inside these agencies have tied the hands of those people responsible for delivering these projects on time and on budget,” Coletti added. “With this additional outside oversight, there will be somebody holding their feet to the fire so plans don’t languish on their desk.” However, other key players in the con-
struction industry are less optimistic. “You can improve on a bad idea, but it is still fundamentally a bad idea,” said Michael Elmendorf, CEO and president of Associated General Contractors of New York State, a leading industry advocacy group. Elmendorf’s group was successful in winning significant changes to the bill that was approved and signed by the governor. “The entire proposal was based on the belief that agencies can’t deliver on big capital projects on time and on budget,” Elmendorf said. “The notion that there is a problem across the board by and large just is not accurate.” Elmendorf argued that whenever there are problems at an authority or agency on major construction projects, the state “should deal with the agency, not create another one.” “The idea that three people in a board room, looking over these projects, will speed them up doesn’t square with experience,” he said. “What it may do is paralyze people.” Elmendorf said if Albany wanted to really contain the cost of public projects, it should reform the state’s construction liability standards, known as the Scaffold Law. Elmendorf says New York’s liability laws, more than any other state, tip the scales of justice toward the trial lawyers and large tort claim payouts. “Just look at the last number we got for the annual insurance costs for New York City’s School Construction Authority. It was over $200 million a year,” said Elmendorf. “In New Jersey it would cost just $50 million.” Maria Doulis, vice president of the nonprofit Citizens Budget Commission, a public finance watchdog, says that her organization also had reservations about the original Design and Construction Corporation proposal
because “its powers were just too far reaching.” As originally conceived, Doulis said, the entity “would blur the link of ultimate accountability while adding another layer of bureaucracy to a procurement process that is already cumbersome.” “We will have to wait and see just how useful this more limited review and recommendation process turns out to be,” Doulis said.
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DESIGN BUILD SUCCESS The jury is still out on the Design and Construction Corporation, but there does seem to be some consensus that another Cuomo-driven infrastructure initiative is having its intended effect. The “design-build” project delivery method, which was approved in 2011, is on track to be a real game changer if it keeps the Tappan Zee Bridge on its trajectory of being completed on time (by 2018 ) and on budget ($4 billion), according to some experts. “Before design and build what you had was the state government or authority designing a bridge and putting it out to bid,” meaning the government had all the risk if the design had to be changed, said Denis Hughes, a former president of the New York State AFL-CIO who is now a senior operating partner at Stonepeak Partners, a private equity firm. “Under design and build you go to the private sector and say, ‘We want to build a bridge across a waterway. What’s the most cost effective way to do it?’” That kind of collaboration, which in the case of the Tappan Zee Bridge also included the unions, assures that all of the players have a real stake in getting the job done on time and on budget, Hughes said.
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Quick Takes ON THE BIGGEST AND BEST CHANGES FOR RIDERS COMING IN 2017:
THOMAS PRENDERGAST CHAIRMAN AND CEO, METROPOLITAN TRANSPORTATION AUTHORITY
“In the expansion category, we will have opened the first phase of the long-awaited Second Avenue Subway. The impact of this new service to subway riders simply cannot be overstated. It will relieve crowding on the Lexington Avenue line, improving efficiency and reducing delays not only for riders on the 4, 5 and 6 lines but throughout the system. It will also create a brand new option for those going to and from the Upper East Side, reducing travel times for many commuters with long walks to the Lex Line. “Also over the next year, customers throughout the system will see new technologies that will improve customer service and provide a more modern, intuitive riding experience. We will have completed our rollout of MTA eTix, a new mobile platform that allows MetroNorth Railroad and Long Island Rail Road customers to avoid lines in stations and purchase tickets directly on their smartphones – an initiative that was accelerated at the direction of Gov. Andrew Cuomo. Wi-Fi will also be available in every underground station and bus riders will see more new vehicles equipped with free Wi-Fi and USB charging ports.”
POWERING NEW YORK
Providing New York with high quality and reliable transportation. A New York company employing New York resources.
City & State New York
July 11, 2016
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Quick Takes ON THE MOST IMPORTANT MASS-TRANSIT LEGISLATION PASSED IN THE 2016 LEGISLATIVE SESSION:
JOSEPH ROBACH CHAIRMAN, STATE SENATE TRANSPORTATION COMMITTEE
“Certainly the single biggest mass-transit legislation passed this session has to be the sixyear, $27 billion MTA capital plan that was agreed to in the 2016-17 state budget. The MTA is critically important to millions of New York residents and visitors, allowing them to travel quickly and conveniently throughout New York City and its surrounding suburbs. With this long-term capital plan in place, the MTA can now undergo important upgrades to its infrastructure and equipment, ensuring safety and reliability for all users. “Additionally, I was pleased to sponsor a program bill (S8119) that will enhance railroad safety measures throughout New York State. This encompassing legislation can help save lives and reduce the number of senseless crossing-collision deaths in New York by strengthening inspection requirements and raising driver awareness about oncoming railroad crossings. I am hopeful that this legislation will be beneficial to safeguarding all New Yorkers.”
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Millions of people. And we move them in and around the Big Apple every day. If you ride the rails in New York, chances are you’re doing it on a Bombardier product. Built in New York, by New Yorkers.
www.bombardier.com
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COLOSSA CONTRAC 18
CityAndStateNY.com
July 11, 2016
Early this year the Cuomo administration boasted of a public infrastructure plan that was so sweeping it would exceed $100 billion. That total, which includes substantial funding from the federal government, local governments and semi-independent authorities in addition to state dollars, has fluctuated somewhat since then. Capital investment for the state Department of Transportation will be higher than initially proposed, for example, while the bulk of a promised $20 billion for a state housing plan is up in the air. But the sum is still useful as a rough estimate of upcoming state infrastructure spending, with such major transportation projects as the trans-Hudson Gateway rail tunnel and an expanded Penn Station in the planning stages and a new Tappan Zee Bridge, an overhauled LaGuardia Airport, the Second Avenue Subway and the East Side Access project all underway. So, who will cash in over the next few years? If history is any guide, a number of big players could be in line to secure some top-dollar transportation infrastructure contracts. Of course, it’ll all depend on how the bidding processes go – but in the meantime, here are five big contractors to watch.
MTA; OFFICE OF THE GOVERNOR
By JON LENTZ
AL ACTS
City & State New York
July 11, 2016
SKANSKA Sweden-based Skanska AB specializes in commercial, residential and transportation infrastructure projects in the United States and Europe. It has an extensive presence in New York, where it built the Oculus structure at the new World Trade Center Transportation Hub and has done rehabilitation work on the Times Square subway station, the Brooklyn-Queens Expressway, and the Brooklyn, Manhattan, Williamsburg, Triborough and Bayonne bridges. Its two most notable projects in New York, however, are the Second Avenue Subway and the upcoming overhaul of LaGuardia Airport. Along with J.F. Shea Construction Inc. and Schiavone Construction Co., Skanska won a $337 million contract to complete the first phase of the Second Avenue Subway, which is set to open this year. Skanska has won several additional contracts on the project as well. More recently, as part of the LaGuardia Gateway Partners consortium, Skanska will spearhead the $4 billion effort to rebuild and connect the outdated terminals at the Queens airport. And looking ahead, the company is also in the running to win a bid to expand Penn Station, another major Cuomo initiative. 2015 revenue: $153.05 billion 2015 profit: $4.78 billion
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AECOM AECOM, a Los Angeles-based design firm, has played a role in a number of major New York transportation projects: the new Tappan Zee Bridge, a redevelopment project at JFK International Airport, the East Side Access project connecting the Long Island Rail Road to Grand Central Terminal and a handful of bus rapid transit projects in New York City. Perhaps its most notable role, however, is as the prime engineering and design consultant for the Second Avenue Subway, whose first phase is scheduled to open in December. The MTA, which won additional funding for the project in this year’s state budget, is already gearing up for Phase 2. The firm, which works on dozens of international projects, significantly expanded its New York footprint in 2010 when it acquired Tishman Construction Corp. 2015 revenue: $17.99 billion 2015 loss: -$154.85 million
CityAndStateNY.com
July 11, 2016
FLUOR Fluor, a Texas-based construction company, heads up Tappan Zee Constructors, a consortium that is building the $3.9 billion replacement for the aging Tappan Zee Bridge. In January of 2013, the New York State Thruway Authority awarded the contract for the project, the largest of its kind in state history. It is scheduled to be completed by 2018, and its use of design-build as a project delivery vehicle could help it meet that deadline. The firm, which works on projects around the globe, also led the construction of the Port Authority’s $3.2 billion World Trade Center transportation hub and was project manager for the $1.4 billion International Arrivals Terminal at JFK Airport. 2015 revenue: $18.11 billion 2015 profit: $412.51 million
TUTOR PERINI Tutor Perini Corporation, which is based in California, recently won several contracts to complete the East Side Access project, which will connect the Long Island Rail Road directly to Grand Central Terminal. In January, the MTA awarded a $663 million contract for tunneling, as well as a $79 million contract to upgrade railroad infrastructure in Sunnyside, Queens. The company, which also specializes in commercial buildings, also won a major contract to construct two buildings at the Hudson Yards development in Manhattan. 2015 revenue: $4.92 billion 2015 profit: $45.29 million
KIEWIT This construction and engineering company, which is headquartered in Omaha, does work all across the United States as well as in Canada. In New York, its biggest transportation infrastructure jobs are on two Port Authority structures: the Goethals Bridge and the Bayonne Bridge. In 2013, Kiewit and a partner won a $1.5 billion design-build contract to replace the Goethals Bridge, which connects Staten Island to New Jersey. The same year, Kiewit and Skanska began a $1.3 billion project to raise the Bayonne Bridge, which also connects New Jersey to Staten Island, to allow larger ships to pass under it. The company has also worked on several other structures in New York, including a $644 million contract to replace New York City’s Willis Avenue Bridge. 2015 revenue: Nearly $10 billion, according to the company 2015 profit: Not disclosed
MTA; NEW YORK STATE THRUWAY AUTHORITY; PORT AUTHORITY
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NEW STANDARD OF CONSTRUCTION
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NYSlant.com
July 11, 2016
A fresh perspective on opinions/ Edited by Nick Powell
CAN THE MTA AFFORD ITS LONG WISH LIST?
I
By LARRY PENNER
n City & State’s June 20 article, “Albany Aftermath – What Didn’t Get Done,” one of the glaring omissions was any information on how the state and New York City plan to fund their long list of transportation projects. Gov. Andrew Cuomo never gave any specifics on how he will come up with $7.3 billion of the $8.3 billion promised to meet the budget shortfall in the 2015-2019 MTA Five Year Capital Plan. The same is true for New York City Mayor Bill de Blasio and his promised contribution of $2.5 billion. Cuomo also failed to specify how he will come up with the state’s $6 billion share of the $24 billion Gateway Tunnel project, which will improve capacity for both Amtrak and New Jersey Transit between New Jersey and Penn Station. The MTA’s next 2020-2024 Five Year Capital Program will first have to deal with $8 billion in unfunded carryover projects and programs going back 10 years. By waiting all these years, the costs will have gone up by another
City & State New York
FRIENDS OF THE BROOKLYN-QUEENS CONNECTOR; OFFICE OF THE GOVERNOR; MTA
CREDITS
July 11, 2016
billion or two. Many other new worthy capital projects will also be competing for funding in the next MTA Capital Plan. That list of projects could include: · Phase 2 of the Second Avenue Subway ($5.5 billion to $6 billion) · Long Island Rail Road Main Line Third Track ($1.5 billion plus $700 million to eliminate seven grade crossings) · Suffolk County Rt. 110 Bus Rapid Transit ($100 million) · Nassau County Hub Bus Rapid Transit ($400 million) · Rockland-Westchester Tappan Zee Bridge Bus Rapid Transit, which would feed into the Metro North Hudson Line Tarrytown Station ($200 million) · Metro North West Bronx Penn Station Access ($200 million) · Staten Island North Shore Bus Rapid Transit ($600 million) · Staten Island West Shore Bus Rapid Transit ($1.5 billion) · New No. 7 subway station at 41st Street & 10th Avenue ($500 million) · Restoration of LIRR service on the old Queens Rockaway Beach LIRR branch ($1 billion) · Triboro X Subway Express, a new subway line connecting the Bronx, Queens and Brooklyn ($2 billion) · Main Street Flushing Queens Intermodal Bus Terminal ($100 million) · Reopening the Woodhaven Blvd At-
CLOCKWISE FROM TOP: RENDERINGS OF THE PROPOSED BROOKLYN-QUEENS CONNECTOR STREETCAR, THE EAST SIDE ACCESS PROJECT TO BRING THE LONG ISLAND RAIL ROAD TO GRAND CENTRAL TERMINAL, AND THE PROPOSED REDESIGN OF PENN STATION.
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lantic Branch LIRR Station ($40 million) · Brooklyn-Queens Connector ($2.5 billion) · Queens Woodhaven Boulevard Bus Rapid Transit ($400 million) · Western Queens Montauk Branch Light Rail between Glendale and Long Island City on the old Montauk LIRR branch ($100 million) Cuomo’s prized LaGuardia Airport rebuild also includes a baseline budget of $450 million for expanding the AirTrain, which may require up to an additional $550 million, in the years to come. The final cost may be closer to $1 billion. The $3 billion new Penn Station will end up needing far more than $300 million in combined assistance from the MTA, New Jersey Transit, Amtrak and the Port Authority of New York and New Jersey. Does anyone really believe that potential developers will spend $2.7 billion of their own money on this? Cuomo, the state Legislature and de Blasio continue to kick the can down the road on financing these projects. They remind me of the cartoon character Wimpy, who famously said, “I’ll gladly pay you Tuesday for a hamburger today.” When the bills come due, taxpayers will be stuck with the tab. Why would the next governor or mayor want to pay for any of Cuomo or de Blasio’s bills?
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Larry Penner is a transportation historian and advocate who previously worked 31 years for the U.S. Department of Transportation Federal Transit Administration Region 2 Office.
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NYSlant.com
I
July 11, 2016
A NEW PATH FOR THE PORT AUTHORITY
f you want to recall the good old days of the Soviet Union, take a look at the mess at the Port Authority of New York and New Jersey. The phrase “Soviet-style bureaucracy” still applies to the bi-state behemoth that impacts so much of the regional economy. It’s as secretive, power-hungry, arbitrary and faction-ridden as anything Stalin could have concocted. Like much of late-Soviet government, the authority still functions, and important decisions are sometimes correctly made. But it cries out for reform, and won’t serve the public interest until big changes are made. Some history: The Port Authority is a two-state public benefit corporation created about 100 years ago by both federal law and the laws of New York and New Jersey. Its initial mission was to deal with problems at the port and related transportation facilities. As the port declined, that mission morphed into the management of all kinds of transportation systems, bridges, trains, tunnels, airports and ferries. In recent decades it expanded into real estate, starting with the construction of the original World Trade Center towers in the 1960s.
THE PORT AUTHORITY BOARD IS APPOINTED BY GOVS. ANDREW CUOMO AND CHRIS CHRISTIE.
The Port Authority is financed not by taxes but by system revenues, largely tolls. It is governed by a board appointed by the governors of both states, and by their respective state laws, which contain identical language. Here’s where the problems arise. Unlike any other bureaucracy, nobody oversees the Port Authority. The two governors control it. There’s no legislative oversight, no legal structure limiting its business practices. As a result, it’s the poster child for gubernatorial horse-trading, midnight raids on pots of cash and distorted priorities. Some of that manifests itself in bizarre ways, i.e., closing a bridge to punish a political opponent – a truly Stalinesque maneuver. Or auto tolls used to finance the World Trade Center rebuild – a fiscal gimmick Abe Beame would understand. Lately, the Port Authority is notable for its leadership’s Nixonian (Trumpish?) use of unvarnished blackmail as its
governing method. Take a look at the fight over funding capital projects. Gov. Andrew Cuomo wants big bucks to rebuild LaGuardia. Gov. Chris Christie wants a new Times Square bus terminal, one stop away from Jersey. Christie sidekick John Degnan, the Port Authority chairman, won’t sign off on the LaGuardia rebuild without a bus terminal deal. No real numbers or source of funds identified, just a deal. The interstate rivalry received some added spice when New Jersey Senate President Stephen Sweeney (perhaps mulling a run for governor) decided to take on New York’s Pat Foye, the Port Authority’s executive director (honest and smart), for opposing the bus terminal. “I would have fired him on the spot. Who the hell did he think he was? He works for them. He’s not their equal. He’s not their advisor. But that shows you how screwed up the place (is).” Strip away the colorful language and
KEVIN P. COUGHLIN/OFFICE OF THE GOVERNOR
By RICHARD BRODSKY
CREDITS
July 11, 2016
City & State New York
the regional competition, and there’s still a lot at stake. The Port Authority, by law, is supposed to have a controlling voice in assuring that our transportation infrastructure meets our needs, but instead has been sidetracked by personalities and bad leadership. The same people who have screwed it up are frustrating efforts to fix it. Cuomo and Christie both vetoed good reform bills passed by both legislatures in New Jersey and New York. Sweeney calls himself the “fly in the ointment” on reform. Naturally, Sweeney wants the same toys that Christie has if he becomes governor. The Port Authority needs to return to its first principles. Its leadership needs to reinvigorate its primary mission as the custodian of the regional transportation system. It needs to stand up to both governors when they try to use it for narrow sectional interests. It needs to stop spending toll money on non-transportation projects. It needs a governing principle better than blackmail and back-scratching. The smart external fix is for both the New Jersey and New York legislatures to insist on their reform legislation and override the gubernatorial vetoes of the reform bills. It will help. There’s a chance that the public will regain outrage if and when “Bridge-gate” trials yield convictions. There’s also an opportunity for Port Authority board members to recall their oath of office and demand internal reforms, no matter what Cuomo, Christie or Sweeney say. And Foye, who has resigned a couple of times, has the brains to blister the existing system as he exits. We’ve watched all kinds of public institutions dissolve into dysfunction – Congress, the presidency, the Supreme Court, state legislatures, mayors, governors, city councils, and now the Port Authority. The public has no patience for leadership cliques of any ideology. Brexit is the European expression of that frustration. It will come to New York and New Jersey sooner rather than later. It would be nice, and politically astute, for the Port Authority leadership clique to see writing on the wall, before something really unpleasant happens.
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Richard Brodsky is a former assemblyman who is in the private practice of law and serves as a senior fellow at both Demos and NYU’s Wagner School. He is a regular columnist for the Albany Times Union and The Huffington Post.
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PUBLIC & LEGAL NOTICES JULY 11, 2016
ADVERTISE HERE Notice of Formation of 2733 CHURCH LLC. Art. of Org. filed with the SSNY on November 18, 2005. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 2733 Church Avenue, Brooklyn, NY 11226. Purpose: Any lawful purpose. Notice of Formation of AARON SAVEDOFF, M.D., PLLC. Art. of Org. filed with NY Secretary of State (SSNY) June 23, 2016. Office location: New York County. SSNY designated agent upon whom process may be served and shall mail copy of process against PLLC to principal business address: 7 Dey St, Ste 400, New York, NY 10007. Purpose: To practice medicine, or any lawful activity. Notice of Qualification of LEVEL EQUITY ASSOCIATES III, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on May 03, 2016. Office location: NY County. LLC formed in Delaware (DE) on March 16, 2016. Princ. office of LLC: Two Grand Central Tower, 140 E. 45th St., 39th Fl., NY, NY 10017. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 122072543. DE addr. of LLC: 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Investment management.
Notice of Formation of Roxy Ruby, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on May 24, 2016. Office location: New York County. SSNY has been designated as agent of the LLC upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 10 West End Ave, Apt 8H, New York, New York 10023. The principal business address of the LLC is: 10 West End Ave, Apt 8H, New York, New York 10023. Purpose: any lawful act or activity. Notice of Formation of Inspirational Nest LLC. Arts of Organization filed with Secy. of State of NY (SSNY) on June 16, 2016. Office location: NY County. SSNY has been designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 804 West, 180th Street Apt 65, NY, NY, 10033. Purpose: any lawful act. Notice of Formation of 2229 UNI AVE LLC. Articles of Org. filed with the Secretary of State of New York (SSNY) on December 04, 2014. Office located in New York County. SSNY has been designated for service of process. SSNY shall mail copy of any process served against the LLC to: THE LLC, 9117 31st Ave. East Elmhurst, NY 11369: Purpose: Any lawful activity or purpose. Notice of Formation of Carlson Design & Planning, LLC Arts of Org filed with the Secy. of State of NY (SSNY) on May 31, 2016. Office location: NY County. SSNY designated agent upon whom process may be served against LLC to: PO Box 14 NY, NY 10276. Principal Business Address: 270 Lafayette St. NY, NY 10012. Purpose: any lawful act.
Notice of Qualification of PEG POOLED GLOBAL PRIVATE EQUITY INSTITUTIONAL INVESTORS VI LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on June 26, 2016. Office location: NY County. LLC formed in Delaware (DE) on June 02, 2016. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207. DE addr. of LLC: CSC, 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of ROBERTA’S COMMISSARY I EMPLOYER, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on June 30, 2016. Office location: NY County. LLC formed in Delaware (DE) on 06/29/16. Princ. office of LLC: 655 Madison Ave., 11th Fl., NY, NY 10065. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.
Notice of Formation of FIUME LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on June 02, 2016. Office location: NY County. Princ. office of LLC: 118 Chambers St., Apt. 5, NY, NY 10007. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Eric Schwimmer at the princ. office of the LLC. Purpose: Any lawful activity. Notice of Formation of 171 EAST 84TH OWNERS LLC. Art. of Org. filed with the SSNY on June 27, 2000. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, c/o Gordon Hamm, 124 East 63rd Street, New York, NY 10021, which is also the address for registered agent. Purpose: Any lawful purpose. Notice of Formation of Shaw PR. Articles of Organization filed with the Secretary of State of NY (SSNY) on April 13, 2016. Office location: New York County. SSNY has been designated as agent of the LLC upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/ her is: 225 5th Ave. The principal business address of the LLC is: 225 5th Ave. Purpose: any lawful act or activity.
CITY & STATE IS NOW PUBLISHING PUBLIC AND LEGAL NOTICES. REACH NEW YORK’S MOST POWERFUL AND INFLUENTIAL NEWSPAPER AUDIENCE. FOR RESERVATIONS AND RATES PLEASE EMAIL: legalnotices@cityandstateny.com OR CALL 212-268-0442 X 2017
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CityAndStateNY.com
July 11, 2016
LOSERS STEVE MCLAUGHLIN - It might only be happening because of Cuomo’s clash with Assembly Speaker Carl Heastie over daycare regulations, but McLaughlin’s finally getting legislative hearings on the Hoosick Falls and Petersburgh water contamination crises, with dates expected in September. Now, the reps for those communities who were against the hearings better watch out for McLaughlin and other locals, who will be out for blood (cough, cough, Kathy Marchione).
THE BEST OF THE REST JOHN FLANAGAN - Earns up to $150 million for no “active legal work” TOM PRENDERGAST - Smartphone ticketing app out early MASOOD SYED - NYPD law clerk gets to keep beard ERIC ULRICH - Wins $10,000 from slot machines
OUR PICK
OUR PICK
WINNERS
How do you know who’s the top dog? See who can eat the most hot dogs! With Gov. Andrew Cuomo and Mayor Bill de Blasio still squabbling like schoolkids well into the summer, maybe they could settle it once and for all with a good old-fashioned Coney Island weiner-eating contest. And if they don’t show, you can just sit back, grab the ketchup and mustard and polish off this week’s Winners & Losers.
CARL PALADINO – While it may well have been a mistake, a tweet that suggested U.S. Attorney General Loretta Lynch should be lynched has been huge embarrassment for one of Donald Trump’s top New York surrogates. News outlets around the country picked up the story and rehashed Paladino’s long history of controversial comments and emails. We’re pretty sure that wasn’t the look Paladino wanted going into the RNC.
THE REST OF THE WORST ANDREW CUOMO - Low Start-Up NY numbers, knew more about Bridgegate, gun database stalled BARRY DILLER - Pier 55 held up in court ANDY KING - Didn’t fact check prostitution FRANK SEDITA III - Didn’t investigate Pigeon
WINNERS & LOSERS is published every Friday morning in City & State’s First Read email. Sign up for the email, cast your vote and see who won at cityandstateny.com.
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