February 2007
 
 
Click here
 
Contact the Comptroller's
COMMUNITY ACTION CENTER
(212) 669-3916 and
(800) 800-6385 outside
(212) 669-3450 - TTY
 
Click here to report claim fraud
 
Click here to
contact the
Comptroller's Office

__________________
In this issue:


THOMPSON REPORT: MTA DELAYS IN REPAIRING AND FUNDING NYC RAILWAYS PUT RIDERS AT RISK

Urges adding $673 million more for NYC Transit repair and upgrade work

New York City Comptroller William C. Thompson, Jr. releases a report about the Metropolitan Transportation Authority’s historic deferrals of critical infrastructure work across the City at a news conference on February 1, 2007. Pictured (l to r) are: Gene Russianoff, Staff Attorney, NYPIRG Straphangers Campaign and Thompson.


View Policy Report

Comptroller William C. Thompson, Jr. recently issued a report that faults the Metropolitan Transportation Authority for jeopardizing the safety and security of riders by consistently delaying critical infrastructure work in New York City.

A Review of MTA New York City Transit “State of Good Repair” Capital Expenditures found that since 1982, when the first MTA Five-Year Capital Plan was issued, large disparities have emerged between the commuter railroads and New York City Transit (NYC Transit) in achieving what the MTA itself considers a “State of Good Repair.”

“New Yorkers are being shortchanged,” Thompson said. “The MTA’s efforts to bring the bus and subway system to a State of Good Repair have progressed slowly, raising concerns about rider safety and security. Service still has not reached the levels of reliability, safety and comfort New Yorkers require and deserve.”

“From outmoded electrical equipment to faulty emergency signals to dilapidated stations, New York City Transit still has much to accomplish in order to reverse the damage from widespread maintenance and repair deferrals,” the Comptroller said.

Thompson sent the report to Governor Eliot Spitzer and new MTA Chairman Elliot Sander.

“Given the Governor’s efforts to yield change in this State, this is a good opportunity to correct the inequities of the past,” Thompson said. “I am optimistic that the Governor and MTA Chairman will move to address the fact that New York City has been substantially shortchanged.”

The new report emphasizes that the MTA must increase capital spending on NYC Transit projects and accelerate its work. Among the key findings:

  • Major NYC Transit physical assets, including bus depots, subway maintenance shops and signals that in 1992 were projected to reach State of Good Repair by 2000, 2005 and 2012 will not achieve that status until 2010, 2019 and 2027, respectively.
  • Essential passenger safety equipment, such as fan plants, which remove smoke from tunnels in the event of fire and other emergencies, will not be in a State of Good Repair until 2028, 21 years later than projected in 1992. More than 40 percent of the B Division (lettered train routes) continues to operate with mostly original, 70-year-old signal system equipment and mid-20th century antiquated track switches, and older emergency fans do not meet current safety standards.
  • As of 2006, only 55 percent of tunnel lighting – another critical safety item – had achieved a State of Good Repair, and full State of Good Repair will not be reached until 2022. In many locations, there still is inefficient, 1930s-era incandescent tunnel lighting original to the system.
  • Service reliability has been reduced by outmoded signal systems and track switches.
  • The MTA reduced New York City Transit’s share of the MTA Core Capital Program, which includes spending for State of Good Repair, Normal Replacement, and System Improvement projects, from 77.5 percent in the 1992-1996 MTA Capital Plan to 75.5 percent in the 2000-2004 and 2005-2009 MTA Capital Plans. That two percentage point reduction is worth $600 million over 10 years.
  • In nearly every investment category, from rolling stock to track and structures, projected dates in the 1992-1996 Capital Plan for achieving State of Good Repair at the commuter railroads - Long Island Rail Road (LIRR) and Metro-North Railroad - have been largely met in direct contrast to NYC Transit’s record. This is due in part to the commuter railroads receiving a disproportionately large share of MTA Core Capital spending.

“To help ensure that New York City continues to serve as an economic engine for New York State, and to help New York City compete with other global cities such as London, Shanghai and Tokyo, its entire transit system must be brought into good physical repair sooner rather than later,” Thompson said. “Much more remains to be done so that New York City residents can be confident that their trips can be timely and safe.”.

 

back to top



THOMPSON WINS MORE THAN $750,000 FOR 720 UNDERPAID SECURITY GUARDS

Comptroller Thompson announced last month that his office has won more than $750,000 for 720 security guards who were shortchanged for work at city buildings – the largest prevailing wage case settlement ever reached by the Comptroller’s Office.

Over five years after 9/11, some sixty thousand security officers are still struggling to make ends meet and get the training they need to keep the City safe. Comptroller Thompson noted that “we need to make sure they are properly compensated and receive the wages and benefits to which they are legally entitled under labor law.”

The Comptroller enforces New York State laws that require private sector companies that have contracts with the city to provide building services or construction services to pay their employees prevailing wages and benefits. The 720 workers represent the most recipients ever in a prevailing wage case resolved by the Comptroller’s Office.

Over the last five years, Thompson’s Bureau of Labor Law has resolved 718 prevailing wage cases and collected more than $8,191,046 in underpayments and more than $582,325 in fines. Since taking office, Thompson has debarred 20 contractors from doing business with the City as a result of labor law violations.


back to top



THOMPSON QUESTIONS $178,000 IN WORKER PAYMENTS BY QUEENS COMMUNITY CENTER

In a January audit, Comptroller Thompson found that the Pomonok Neighborhood Center of Flushing made $178,530 in improper and questionable payments to employees. “I am extremely troubled by these findings,” said Thompson, noting that children and elderly residents of Queens were unjustly shortchanged.

Pomonok receives State and City funding to provide after-school programs, senior activities, summer camp, crime victim assistance, domestic violence counseling, and housing assistance. Auditors determined that Pomonok may have improperly used those funds to make payments totaling $83,037 to four employees.

The Comptroller recommended reforms at the agency and suggested that relevant State and City agencies investigate whether to pursue legal actions to recoup the possible improper payments.

back to top



THOMPSON CONCERN ON PARKS DEPARTMENT AGREEMENT SPARKS REJECTION OF BROOKLYN GOLF CONCESSION

After Comptroller Thompson wrote Parks and Recreation Commissioner Adrian Benepe in January regarding a proposed license agreement between the Parks Department and the operator of a Brooklyn golf course with apparent ties to organized crime, the contract was withdrawn by the City.

Thompson expressed concern that the operator of East Coast Golf has a financial relationship with an alleged member of the Colombo crime family who was indicted this past year by the United States Attorney's Office on federal racketeering conspiracy charges, including charges related to securities fraud.

Preliminary approval of the concession was made prior to the indictment and Thompson was unsure if the department was aware of those facts when it previously found ECG to be a responsible vendor. After looking into the matter, the parks department decided to cancel the contract.
back to top



THOMPSON CALLS ON HOME DEPOT, BLOCKBUSTER, INC. AND PAR PHARMACEUTICAL COMPANIES TO ALLOW SHAREHOLDERS TO RATIFY EXECUTIVE OFFICER PAY

On behalf of the New York City Employees’ Retirement System (NYCERS), Comptroller William C. Thompson, Jr. recently called on Home Depot, Blockbuster, Inc., and Par Pharmaceutical Companies, Inc. to adopt a policy allowing stockholders to ratify the compensation of senior executives.

There is growing concern among investors over mushrooming executive pay, which often appears to be out of synch with the creation of shareholder value. Thompson believes that existing corporate governance arrangements do not provide stockholders with enough mechanisms for providing input to boards on senior executive compensation.”

The resolutions specifically call on the boards of directors at each company to adopt a policy that stockholders be given a chance at each annual shareholders’ meeting to vote on an advisory resolution to ratify the compensation of named executive officers. Shareholders would be informed that the vote is non-binding.

“Institutional investors are fed up with the unbridled excesses of executive compensation in the U.S.,” said Thompson. “We have had enough of bonus payments, salary increases, retirement benefits, and other payoffs from equity-based plans that are often not even remotely correlated with the performance of executives.”

back to top


Send to a friend
Click here to send this newsletter to a friend

To unsubscribe please click the link below:
Click here to unsubscribe then enter "unsubscribe" in the subject line

Comment on this news service:
Send mail to info@comptroller.nyc.gov