Exchange Of Letters Between Political Players Extends Yepsen Ethics Controversy

In the last two issues of Saratoga Today there have been four letters related to the Ethics Boards decision regarding Joanne Yepsen and Saratoga Hospital.  The first two letters appeared simultaneously last week. They were from Ken KIotz who is a former Democratic Mayor of the city and from John Herrick who is chairman of the Saratoga County Republicans.  Mr. Klotz gives a full throated defense of Mayor Yepsen and criticizes the other Democrats on the City Council for their criticisms of Mayor Yepsen.  Mr. Herrick lays out a case as to how he sees the Mayor as having violated  the ethics code and calls for her to resign.  In the subsequent letters published this week, Commissioners Madigan and Mathiesen respond to Mr. Klotz.  Together, these letters pretty much lay out the issues as viewed from a variety of perspectives.


Klotz Letter: Ethics and the Code of Conduct in Saratoga Springs

I vividly remember attending a workshop on ethics conducted by the New York Council of Mayors for newly-elected officials after I was elected Mayor of Saratoga Springs in 1999. The speaker opened by emphasizing the complexity of the topic, asserting that some actions many people would see as ethically suspect were in fact entirely permissible, while other actions that seemed innocent actually ran afoul of ethical regulations. The issue is not as simple as it might appear.

State Municipal Law recognizes this in Article 18, identifying the goal of establishing rules of conduct that are “not only clear but reasonable,” one that will permit elected officials “to share the normal  benefits of the democratic society and economy they serve.” “Real conflict must be rooted out, without condemning the inconsequential.” As a resident of Saratoga Springs I have an interest in low taxes. This does not create an impermissible conflict of interest for me as Mayor when I vote for a low-tax budget.

Mayor Joanne Yepsen has supported herself as a professional consultant for over fifteen years, specializing in advising not-for profit organizations. In the course of her professional career she has worked for most of the major not-for-profit organizations in Saratoga Springs, often pro bono or for reduced rates, and has served on several of their boards. These organizations include among others Saratoga Arts, Saratoga PLAN, Saratoga Shakespeare,  Saratoga Springs-Chekhov Sister City, Inc., and Saratoga Hospital. She has long been an advocate of our local not-for-profit institutions and supported them for their vital contributions to our community’s quality of life.

I find it understandable that in a casual, informal, off-the-cuff setting she should mention her continued availability to pursue her routine professional activity. And when an issue concerning Saratoga Hospital before a city board became increasingly controversial, I find it understandable too that both the Mayor and Saratoga Hospital agreed that these informal contacts should be broken off to protect against even the appearance of a conflict of interest. But I disagree with the city’s Board of Ethics claiming a violation of state ethics rules of conduct for these contacts,   which is not a “reasonable” application of rules that specifically exempt “inconsequential” actions.

And I strongly disagree with the City Council’s majority harassing the Mayor mercilessly on the subject, disrupting meeting after meeting with bullying and insults that make a shambles of the City’s own Rules for Conduct at Public meetings. These rules, passed unanimously by the same individuals currently on the Council, correctly identify the Mayor as the presiding officer, as is clear from the City Charter. Rule 3b then reads as follows: “Council members shall make every effort to avoid interrupting another Council member’s speaking. In situations where interruptions become frequent, the Mayor…shall have the authority to determine the order in which Council members will peak.” These rules have been violated dozens of times by sitting members of the Council at recent meetings.

I urge residents to view the videos of recent Council meetings and judge for themselves whether this is the way they want to see the City’s business conducted.

Kenneth Klotz

Mayor, City of Saratoga, Springs, 2000-2003


Herrick Letter: Yepsen Should Resign

The Saratoga Springs City Council has voted to approve a $12,000 payment for the personal attorney of Mayor Joanne Yepsen. The mayor hired the attorney, on her own, to represent her in an ethics hearing prompted by her actions seeking personal employment with Saratoga Hospital, when the hospital had pending business before the City Council.

There are two problems with taxpayers footing the bill for Mayor Yepsen’s personal attorney. First, the mayor did not follow the City’s required purchasing practices when hiring the attorney. Had she followed proper purchasing practices, taxpayers would have either gotten a better deal or, more importantly, been saved $12,000 if the purchase order was rejected.

The second problem is the actual vote, which was 3-2 in favor of paying the attorney. Mayor Yepsen inappropriately participated in the vote to hire an attorney to represent her during a city ethics probe, clearly a direct benefit to her personal interests. Mayor Yepsen should have recused herself from the vote due to the obvious conflict of interest.  Once again, Mayor Yepsen has put her personal interest before that of the taxpayers.

It is very clear that the hiring of the attorney was to give her representation during the ethics investigation regarding her conflict of interest as her role as mayor and her efforts seeking employment with Saratoga Hospital. Something is clearly amiss; the city already has two attorneys on staff and insurance to cover for matters related to her role as mayor. However, insurance coverage typically does not provide for legal representation when a violation of the law, or, in the case of Mayor Yepsen, enacted Code of Ethics occurs.

Mayor Yepsen fails to understand when it is necessary to recuse herself from voting. She recused herself on the hospital project vote AFTER she was told she would not be hired by the hospital and she failed to recuse herself when the vote directly benefited her to the tune of $12,000 worth of taxpayer money. Mayor Yepsen should resign for her ethics violations and failure to put the Saratoga Springs taxpayers first.

John Herrick

Saratoga County Republican Chairman


Madigan Letter

I am writing in response to a letter published on August 12 in Saratoga TODAY by former Mayor Ken Klotz regarding Mayor Yepsen and her behavior in the Saratoga Hospital matter. Mayor Klotz misstated the facts in his Op /Ed piece in his zeal to continue to defend his good friend Mayor Yepsen, and he errs in several important, documented, and to date – undisputed timeline facts.

Mayor Klotz claims that Yepsen merely informed the Hospital of her “continued availability to pursue her routine professional activity”, “in a casual, informal, off-the-cuff setting”.

The fact pattern and timeline say otherwise (visit http://saratogatodaynewspaper.com/images/stories/archive/2016/email/document1.pdf).

In October 2015, Mayor Yepsen scheduled a meeting with the Hospital to solicit engagement as a grant writer, and over a period of months sent several follow-up emails pursuing a contract with them. This is neither informal nor off-the-cuff, and is a bit more proactive than merely informing the Hospital that she still performed such work.

Mayor Klotz then goes on to claim that both the Mayor and Hospital jointly agreed that these “informal” discussions should be ended due to the appearance of impropriety. Again, a look at the actual facts, which are available to all interested parties, shows that on January 14, Mayor Yepsen sent an e-mail to the Hospital inquiring as to the status of their “negotiations”, and later that day she received a response saying that due to the potential for an appearance of impropriety or conflict of interest, the Hospital was not comfortable doing business with her while she is in office.

Yepsen responded the following morning that she had already consulted her “legal team” had “gone through the proper channels” to “ensure the highest integrity and transparency” and that she was “eager to get started”. The Hospital responded again that, notwithstanding her assurances, they were not interested in engaging her services.

Four days later the Mayor recused herself from a vote on the Hospital’s PUD amendment application, falsely claiming that she was involved in ongoing negotiations with them. Furthermore, in a February 19 meeting with myself, my Deputy, and the two City attorneys – a full 5 weeks after the Hospital had explicitly refused her solicitations – the Mayor said that she had reached agreement to perform work for the Hospital, that they were finalizing the contract, and that that is why she approached the Ethics Board and recused herself from the PUD vote.

It is troubling that the former Mayor would so badly misstate facts and then claim that I and my fellow Commissioners, in our efforts to untangle the web of untruths spun by Mayor Yepsen to determine the true nature and extent of what transpired between the Mayor and Saratoga Hospital, are somehow harassing and bullying her.

So, according to Ken Klotz, refusing to be lied to is a form of harassment. I, too, encourage those interested in the truth to view the full videos of our Council meetings. The facts are clear.

Michele Madigan, Commissioner of Finance


 Mathiesen Letter

August 13, 2016

To the Editor of Saratoga Today,

A response is in order regarding two letters to the editor that appeared in last week’s Saratoga Today. Both letters focused on Mayor Yepsen and her most recent controversies.

John Herrick, who is finishing his term as Saratoga County Republican Chairman, stated that Mayor Yepsen should resign because of her ‘ethics violations and failure to put Saratoga Springs residents first’. While I agree, as does the City Ethics Board, that Mayor Yepsen has made some serious mistakes regarding her interactions with the Saratoga Hospital Foundation during the time that Saratoga Hospital was appearing before the City and seeking her affirmative vote on a zoning issue and that the Mayor should have come before the City Council before hiring an outside law firm to defend her during the related Ethics Board hearings, I do not believe that the Mayor should resign.  She is a duly elected member of the City Council who has, to the best of my knowledge, broken no laws.

As far as the $12,430 expenditure that City taxpayers will incur to pay the Mayor’s lawyers, I agree that our citizens should be angry with the Mayor, Commissioner and me, the three Council members who voted in favor of paying these fees. Despite my feeling that the Mayor should have come before the Council before hiring an outside attorney if she was expecting the City to pay for her expenses, I do not believe that City Council members, all of whom are grossly undercompensated for their services to the City, should have to pay out of pocket for legal fees related to their official duties.  While I agree that, in this instance, the definition of official duties is murky at best, the solution is to make sure that such a scenario never takes place again.  The City must create easily discernible guidelines for hiring of and paying for outside legal resources.

Former Mayor Klotz wrote about the many groups and organizations that Mayor Yepsen has supported through the years. He is absolutely right about that.  However, he goes on to disagree with the Ethics Board decision regarding the Mayor’s activities with the Saratoga Hospital Foundation.  It is hard for me to imagine former Mayor Klotz or any other current or former City official negotiating a private business arrangement with an entity that was an integral part of an organization seeking their vote without realizing the stark conflict of interest.

Former Mayor Klotz goes on to complain of other Council members mercilessly harassing and bullying the Mayor. I have received E mails from Mr. Klotz in the past complaining that I was mis-treating the Mayor when disagreements surfaced at the Council table.  While I am envious of the unwavering support that Joanne Yepsen seems to enjoy as evidenced by the frequent comments of Mr. Klotz and a small number of others, I do not believe that I have ever bullied or harassed her.  There have been a number of significant issues raised while Joanne Yepsen has been mayor that have resulted in our disagreements.  I continue to work for what I feel is best for the Saratoga Springs community and I hope that Mayor Yepsen, my fellow Democrat, can learn from her mistakes and divorce herself from certain special interests.

Former Mayor Klotz concluded his letter by urging Saratogians to view recordings of City Council meetings. On this, we agree.

Chris Mathiesen, Saratoga Springs Commissioner of Public Safety

 

 

SPAC Announces New President/CEO

Based on her resume, the new SPAC director looks very promising.

[From August 18 Saratogian]

SPAC names new leader

Sobol

Elizabeth Sobol, who will become the new president and CEO of Saratoga Performing Arts Center on Oct. 1. Photo provided

By newsroom@saratogian.com, ,, @SaratogianNews on Twitter

Posted: 08/18/16, 1:13 PM EDT |

SARATOGA SPRINGS >> Saratoga Performing Arts Center has chosen its new leader to bring the organization into its next chapter.

Elizabeth Sobol was announced this week as the new president and CEO of SPAC, to follow outgoing chief Marcia White.

Formerly the president and CEO of Universal Music Classics and managing director of IMG Artists in North/South America, Sobol brings to the position decades of artist management and recording industry experience in both the classic arts and mainstream entertainment along with a commitment to breaking down barriers between the two.

Her position at the venue, which is currently celebrating its 50th anniversary year, will begin on Oct. 1.

SPAC recruiters chose Sobol in hopes she will bring diverse experiences and a determination to bring great music and dance in all its guises to SPAC audiences.

“We are excited to welcome Elizabeth Sobol as SPAC’s next president and CEO,” said Susan Phillips Read, chairman of SPAC’s Board of Directors, in a press release. “Elizabeth is a seasoned executive whose artistic and musical interests and experience range from straightforward classical to pop, jazz, world music and dance. All of this makes her an ideal fit for SPAC, with its eclectic mix of programming. As SPAC concludes its 50th anniversary season, the board was struck by Elizabeth’s imagination and vision for expanding SPAC’s future reach and audiences.”

Sobol said in the release she is delighted to join the Saratoga Performing Arts Center, which she called “a vital artistic institution that is clearly cherished by its enthusiastic and curious audiences.” Sobol noted many artists she has worked with over the years have enjoyed performing on the SPAC stage.

“I am looking forward to deepening SPAC’s artistic partnerships with the Philadelphia Orchestra, New York City Ballet, Chamber Music Society of Lincoln Center and Live Nation to curate SPAC’s signature blend of programming,” Sobol continued. “I have really fallen in love with the culture and ethos that is in abundance in Saratoga Springs and look forward to being a part of and contributing to this community.”

Before coming to SPAC, Sobol most recently served as president and CEO of Universal Music Classics (UMC) where she successfully ran the American home for the prestigious Decca, Deutsche Grammophon, Mercury Classics and ECM imprints, along with the revitalized UMC label, which Sobol oversaw from Universal’s New York headquarters. Sobol’s vision for the label included a commitment to the best that “classics” stands for: music rooted in the classical tradition, while also encompassing a variety of genres including contemporary, jazz, and world and a focus on US-based artists and repertoire that represented diverse genres.

As managing director of IMG Artists North/South America (IMGA), Sobol was widely considered one of the most well-respected and creative artist managers in the business, overseeing many popular artists, the press release said. Sobol created the IMG Artists Dance Division, and also created and oversaw IMGA’s initiatives and growth in the areas of world music, jazz, contemporary music and music/dance theatricals.

During Sobol’s nearly three-decade tenure at IMG Artists, she nurtured the careers of some of the music world’s most respected artists including violinist Joshua Bell.

“I have worked with Elizabeth Sobol in many capacities over the past thirty years and believe she is one of the true gems in our industry,” Bell said in the release. “She has a tremendous ear for great music, matched by a heart filled with passion and a commitment to bringing out the best in every artist she works with and project she touches. I have no doubt she will bring that enthusiasm and commitment to SPAC.”

From 2006 to 2012, Sobol was programmer and producer of the Festival of the Arts BOCA, which included many of IMGA’s premier clients, as well as cultural figures such as Salman Rushdie, Edward Albee, David Brooks and Doris Kearns Goodwin. In the recording sphere, Sobol has been executive producer of numerous albums, three of which have garnered Grammy nominations.

Sobol studied at Sarah Lawrence College and the Rotterdam Conservatory. She received her Bachelor of Music in Piano Performance from the North Carolina School of the Arts.

White, who will soon end her leadership role at SPAC, added “As SPAC’s 50th Anniversary Celebration comes to a close, I am thrilled to pass the baton to Elizabeth Sobol. Her proven record as an arts manager and her passion for the arts are testaments to the leadership and inspiration that she will bring to our exceptional venue. I wish her great success and will be cheering her on in the years to come.”

 

From Our Friends At Sustainable Saratoge: Mulch Volcanoes Kill Trees

MULCH VOLCANOES KILL TREES

Let’s end this deadly decorative fad that has swept the landscaping industry.

TreeToga

In May 2015, Sustainable Saratoga sent out an e-blast with our first-ever Forestry Tip, “Mulch Volcanoes Kill Trees – Let’s end their use in Saratoga.” In Spring 2016, some concerned citizen(s)—as yet unidentified—started putting out lawn signs to shed light on the problem.  DPW Commissioner Scirocco put this issue on his agenda for Aug 16, 2016. This document summarizes Sustainable Saratoga’s views, based on our current research into this deadly practice.

 

“Mulch volcanoes” are a fad that puts decorative landscape tidiness above the well-being of our trees. Trees are a cost-effective part of our urban infrastructure that will “pay us back” if we let them survive and thrive.  They are a major investment in our future.  Let’s stop killing them.

 

Don’t take Sustainable Saratoga’s word for it. Tree experts from Cornell, from across New York State, and from around the country have all condemned “mulch volcanoes” as extremely harmful to the health of trees.  Check out the links below for more details about how “mulch volcanoes” kill.

“This Old House,” the popular PBS TV show, produced a video segment in which they dug up a mulch volcano to explore the damage.

Prof. Nina Bassuk, noted tree expert from Cornell’s Urban Horticultural Institute, is widely quoted in her warnings against “mulch volcanoes.”  Experts from Cornell’s Cooperative Extension, and from the agricultural extension services of the University of Illinois, North Carolina State, and the University of Missouri-Columbia have attacked the practice. Maine’s Master Gardeners republished the U. Missouri information.

The Alliance for Community Trees, one of the foremost national tree advocacy groups, has worked to educate the public about the dangers of using “mulch volcanoes.”

Some cities and municipal tree steward programs have used their urban forestry websites to educate against “mulch volcanoes.”

Some progressive, well-informed arborists, landscape professionals, and consultants have bucked the industry trend by using their websites to call for an end to “mulch volcanoes.”

 

YOU CAN HELP.   HELP SPREAD THE WORD.  Share this information widely.  Share it with friends and neighbors.  With your landlord.  With condo owners.  With businesses you patronize.   With developers.  With anyone who has responsibility for maintaining commercial properties where “mulch volcanoes” are killing trees.

Sustainable Saratoga Proposes Strategy To Use Zoning Bonuses To Build More Affordable Housing

[The following is a press release from Sustainable Saratoga proposing a change in zoning that would provide incentives to developers to allow them to build more housing than allowed by existing zoning based on providing affordable units.]

FOR IMMEDIATE RELEASE

NEW AFFORDABLE HOUSING ORDINANCE PROPOSED

Saratoga Springs, NY – August 11, 2016 – The non-profit Sustainable Saratoga is requesting that the City of Saratoga Spring adopt an amendment to the zoning ordinance that would guarantee more diverse housing opportunities – especially for middle-income households.

The proposal is called the SPA Housing Ordinance, which stands for the Saratoga Places for All (SPA).

Harry Moran, Chair of Sustainable Saratoga, said that the ordinance would require developers of housing developments of 10 or more units to set aside up to 20% of the units as affordable for sale or rental to households of modest income. Developers would be given up to a 20% density bonus, or the right to build additional units on the same site, in order to offset the cost of providing the affordable units.

“In recent years there has been a lot of talk about affordable housing but little action.” said Moran. He added, “Almost all the new housing created in the last decade has not been very affordable to our residents or those who work in our community.”

Sustainable Saratoga estimates that between 20 and 30 new affordable housing units would be created each year under this ordinance. This program seeks to takes advantage of market forces and development capacity to produce affordable units that are integrated into housing throughout the community. There are no State or Federal subsidies in this program. There are however, modest administrative costs to the City for set up, administration and monitoring.

The proposed zoning amendment is based on the draft ordinance developed in 2006 by the City’s Inclusionary Zoning Ordinance Development (IZOD) Committee. This Committee held 30 meetings over 14 months to develop that ordinance. Building on ordinances from similar sized communities, the Committee uniquely tailored that ordinance to Saratoga Springs.  However, in 2007, that ordinance did not make it to the Council table for a vote. There are now over 500 communities across the country that have enacted similar ordinances.

Moran said “We believe now is the time to bring the 2006 ordinance back for consideration.  Our land costs, vibrant economy and good quality of life have intensified the need for affordable housing. We believe the community will be very supportive of this positive step.”

The process of considering this amendment is expected to take about 3 months.  At the next City Council meeting on Tuesday, August 16th the Council will be asked to vote to accept this amendment for study and forward it to the City and County Planning Boards for their required advisory opinions.  It is expected that the City Council would hold a number of public hearings in late September and early October and vote on the matter by November.

An important element of any sustainability plan is to have a diverse community, including a broad spectrum of economically diverse households with housing types aligned with their needs.

More information about the proposal can be found on Sustainable Saratoga’s website at www.sustainablesaratoga.org/spa-housing.

About Sustainable Saratoga: 

Sustainable Saratoga is a not-for-profit organization that promotes sustainable practices and the protection of natural resources, through education, advocacy, and action, for the benefit of current and future generations in the Saratoga Springs area.  Learn more at www.sustainablesaratoga.org/projects.

Contact:

Harry Moran, Board Chair

Sustainable Saratoga

info@sustainablesaratoga.org

518-620-6139

Attachments area

 

 

Beyonce and Jay Zee: Saratoga Springs Bound?

Ok.  For those of you who think that all I ever think about is parochial politics, take this!

Beyonce and Jay Zee are moving to Saratoga Springs  [I have no idea if this is a legitimate web site}:

http://www.newsdaily10.com/saratoga-springs-new-york/jay-z-explains-why-hes-moving-to-saratoga-springs-new-york/

 Hey, I know a nice little condo that would be perfect for them.

 

 

The Apartment of Your Dreams–It Could Be Yours!

ParkPlaceCondosAerial

ParkPlaceCondosStreetView

 

Vincent and Patty Riggi (not to be confused with Ron and Michele who own the starter castle on North Broadway) are selling their penthouse condo overlooking the city park for $5,499,700.00.  I wonder where the $700.00 amount came from but maybe it is a negotiating ploy.

The apartments/condos complex is officially located on Park Place but it is actually on Broadway on the Southern end of our city park.  A roomy 6,700 square feet, it includes four bedrooms, two kitchens, hardwood and marble floors,  and two laundry rooms.  The master bedroom has a fireplace, “morning kitchen” (who can keep up with the trends of the uber rich), walk in closet,  an en suite bathroom (a more refined way of referencing a private bathroom), and a sitting area.  Of course it has its own, exclusive elevator (a precaution for terrorists or mixing with the help),  its own parking garage, its own generator and storage area.

 It has a multi level terrace that surrounds the apartment allowing for a 360 degree view of the city and of course the park.  The penthouse is two stories. 

For a virtual tour click here

 

D’Andrea Wine And Liquor Plot Sold

 

 

 

Aerial View

 

FaustAerial1

 

FaustStreet
Street View

David Mohr has purchased the lot where D’Andrea’s Wine and Liquor was located at the corner of West Avenue and Washington Street for $1,500,000.00 from Faust D’Andrea (brother of our past Assemblyman, Bobby). Mohr is the son of the late William Mohr who owned the Mobil Station across the street.  This is according to the Albany Business Review.

They also noted that the apartment complex at 2 West Avenue built by Bonacio Construction is getting $2,000.00 a month for rent.

I am happy for Faust. I expect that when he purchased the property decades ago he had no idea that it would accrue in value so much.  Have fun, Faust!

A History Of Hiring Outside Counsel For The City

[One of the people that follows this blog has done some serious research into the history of the outside use of counsel for the city.  The city has two part time attorneys on staff but, as in the case of Mayor Yepsen, they commonly hire outside counsel.  According to this reader, the use of outside counsel radically increased into some whopping numbers during the administration of Scott Johnson].

John, A reader of your August 2 Post on the costs of City Council authorized outside legal services asks if previous administrations have acted in a manner similar to the situation currently much discussed.  Another reader notes that she ‘Will try to find the answer.’ Over the years many Council members, acting in their official capacities, have been sued and required legal defense.  The same is true of the Council as a whole acting in its legislative capacity.

The operative phrase here is “official capacity.” Council members and the Council when acting in their official capacities and in good faith are certainly entitled under State law to legal representation.  When acting in their dual capacity as private citizens they are not.  Additionally, recent administrations have heavily relied, a significant cost, on  private law firms to provide services to the Planning Board, to advise on labor matters, etc.  Some are on retainer.

Under a previous administration [JK: Scott Johnson] the costs of such out side legal services grew rather significantly.  As you know, the City attorney’s office is staffed by two salaried lawyers serving in a part time capacity and a full time executive assistant.  However, beginning in 2008 the mayor’s office initiated a policy of outsourcing many legal matters that resulted in spending far exceeding adopted budget authority.

No Charter mandated annual reports were, to my knowledge, ever prepared detailing this policy, the firms hired, services rendered, and costs incurred.  Thus, about the only way to reliably identify the these services and corresponding costs is to review Council minutes and budget appropriations and expenditures. This was done for the period 2008 through March 2011.  The results are details below.

The current Charter Revision Commission might want to conduct a review of similar costs since 2011 with an eye of recommending if Charter revisions should included a full time City attorney’s office and/or developing criteria for use of outside council.

MAYOR’S OFFICE EXPENDITURES FOR OUTSIDE LEGAL SERVICES: 2008 – MARCH 2011

Outside Legal Costs: 2008 – 2010 According to various reports prepared by the Commissioner Ivins’ Finance Office, Mayor Johnson has spent as much as  $587,000 on outside legal services during his first three (3) years in office, an annual average of nearly $196,000.

During 2009 and 2010, the Finance office reports in its adopted operating budgets for 2010 and 2011, that $294,846 was spent by the mayor’s office on outside law firms in 2009 and Finance projected that $209,735 would be spent in 2010.  In short, Finance reports that Johnson spent $504,581 on contract legal services in 2009 and 2010 alone and nearly $180,000 MORE than was originally budgeted.

The 2009 adopted City Comprehensive Budget appropriated a total of $175,000 for contract legal services and the 2010 appropriation was $150,000.  According to Finance, then, Johnson overspent original appropriations for 2009 and 2010 by over 55% ($180,000). 

First Quarter of 2011 During the first first quarter 2011, the rate of expenditures on outside law firms seemed to be even greater than in the two previous years.  Commissioner Ivins noted in his first 2011 Quarterly Financial Report for the period ending March 31, that the mayor’s office had already exceeded its entire 2011 expenditure.  Through the end of March a total of $103,778 had been spent or encumbered and an additional $91,778 had already been transferred into the account.  At that rate of expenditure the City would spend $415,000 on outside law firms alone in 2011.

Of course these costs were IN ADDITION to the salaries and benefits paid to the city attorney and the assistant city attorney AND DO NOT INCLUDE LEGAL FEES FOR BOND COUNSEL, MATTERS PERTAINING TO ASSESSMENTS AND NON-PAYMENT OF TAXES AND, IN SOME CASES, LEGAL SERVICES ASSOCIATED WITH THE CITY’S LEGAL ACTIONS AGAINST CHARTER REFORM.

The following tabular summary more succinctly shows the expenditures compared to original budget authority. Cost of Outside Legal Services and Authorized Original Expenditures: 2009 – March 31, 2011 Year

Original Budget    Reported Actual Expenditure    Difference 2009

$175,000                $294,846                                             + $119,    846/ +68% 2010                 $150,000               $209,735                                             + $ 59,735/  +40% 2011 thru

$96,000                $103,778 (inc. encumbrances)   + $  7,778 / +  8% March 31

TOTALS    $421,000             $608,359

Some of these were troubling.  For instance, in February 2010 the Council retained Bailey, Kelleher & Johnson, to advise City Council on City Attorney Scala’s workplace violence incident, $170/hr.  And in June 2010 the Council authorized the mayor to hire unidentified “outside counsel” to provide oversight of defense team in Anderson v. City trial at $200/hr., cap at $5,000.  That “council” was never publicly named.

I attended that trial and never saw any attorney present except for the then city attorney.  It would be interesting to determine who was given that contract and for what services.

Available Record of Outside Legal Counsel Hired by the Saratoga Springs City Council as Reported in the 2010 and 2011 City Council Minutes Overview This 10 page addendum to the report CITY EXPENDITURES FOR OUTSIDE LEGAL SERVICES: 2008 – MARCH 2011 is designed to provide supporting information on the City’s growing costs of legal services and the failure to spent within adopted budgets. It presents, chronologically, ALL non-Art. 7 and Bond Counsel hires by the City Council identified through a review of available online City Council meeting minutes for the period January 2010 through June 2011.

It is impossible to quantify the exact budget impact of the actions referenced below.  The costs were borne by different accounts in the City Attorney’s budget and in Account’s budget.  In one case the mayor referenced the possibility that the City’s insurance carrier would pay some of the contracted services.  An accounting should be required. A legitimate question is: Why cannot the City Attorney’s Office provide any of the legal services that the mayor [JK: Johnson] consistently uses “outside” counsel for? The entire City Council should be asking this question each and every time the mayor [JK:Johnson] seeks authority to spend even more on legal services that has not been budgeted.

What is known, based on data from Finance, is that the mayor [JK:Johnson] has at a minimum OVERSPENT original appropriations for outside legal services by at least $179,500 in 2009 and 2010 alone.

This year [JK:2011?] he has spent or encumbered nearly $104,000 through the first quarter and already OVERSPENT the entire year’s appropriation of $96,000.

Law Firms Hired during January 2010 – June 2011 The following law firms (excepting those referenced in Overview) were retained by the City Council to provide various legal services.

These firms were hired based on actions of the City Council reported in Council meeting minutes.

Miller, Mannix, Schachner & Hufner, LLC, to provide legal services to City land use boards, $160/hr., $20,000 yearly cap, Motion 10-13, Jan. 19, 2010

Bailey, Kelleher & Johnson, to advise City Council on City Attorney Scala’s workplace violence incident, $170/hr., $1,000 cap, Feb. 16, 2010

Miller, Mannix, Schachner & Hufner, LLC, to provide legal services to City regarding zoning ordinance amendments, $160/hr., $4,295 cap,

Motion 10-186, June 6, 2010 Unidentified “outside counsel” to provide oversight of defense team in Anderson v. City trial.  Council authorizes the mayor to retain counsel at $200/hr., cap at $5,000.

June 15, 2010 Harris Beach, Mayor failed to properly requisition for monthly retainer fee of $10,000 for period Feb. 2010 through June 2010 for “general labor advice.”  To honor the $10,000 invoice Johnson had to go to the Council.  Franck voted against the expenditure because “proper procedure was not followed.”

Fitzgerald, Morris, Baker, and Firth at $170 per hour, no cap, to provide the City with legal counsel on the recent actions undertaken by the Civil Service Commission in modifying the job responsibilities and abilities within the Building Department.   Motion 10-219,

July 26, 2010 Fitzgerald, Morris, Baker, and Firth at $170 per hour, no cap, to provide the City with legal counsel on the recent actions undertaken by the City Civil Service Commission in restricting the ability of the assistant building inspectors to issue building permits.  Motion 10-220,

July 26, 2010 Fitzgerald, Morris, Baker, and Firth, LLC at $200 per hour, no cap referenced, to defend the City in an Article 78 proceeding, matter of Saratoga Citizen, Inc., against John P. Franck, City Clerk of the City of Saratoga Springs, Motion 10-265,

August Brown and Weinraub as legal counsel for the proposed charter revision at $200 per hour, no cap referenced, and this will come out of his self-insured retention fund.  Motion 10-222,

July 26, 2010 Fitzgerald, Morris, Baker, and Firth, LLC at $200 per hour to defend the City in an Article 78 proceeding in the Matter of Saratoga Citizen, Inc., against John P. Franck, City Clerk of the City of Saratoga Springs,  Motion 10-265,

August 25, 2010 Miller, Mannix, Schachner & Hufner, LLC, to provide legal services to City land use boards, $160/hr., $20,000 yearly cap, Motion 11-23,

Jan. 18, 2011 Discussion and Vote:  Right to Appeal from Saratoga Citizen vs. the City of Saratoga Springs Court Decision, Motion 11-51,

Feb. 15, 2011, no firm named, no $ amount specified. Mayor Johnson moved and Commissioner Wirth seconded to give the mayor permission and authorization to direct outside legal counsel to file a notice of appeal by February 17, 2011 in the matter of Saratoga Citizen, Inc. vs. the City of Saratoga Springs.  Discussion and Vote:  Permission to Perfect Appeal in Saratoga Citizen vs. Franck and Saratoga Springs. Motion 11-81,

March 15, 2011. Mayor Johnson moved and Commissioner Wirth seconded to proceed with the appeal as filed; to perfect the appeal and present it to the Appellate Court for determination, no specific firm named, no hourly fee referenced. Mayor Johnson advised the previous estimates for the appeal ranged from $10,000 – $20,000.  After further negotiations, the figure has been reduced to $7,500 and to be capped at $10,000 for legal services for appeal.  This will come from the city attorney budget line. Ayes – 3 Nays – 2 (Commissioner Franck and Commissioner Ivins)

Council Meeting Minute Citations January 19, 2010 Discussion and Vote:  Authorization for Mayor to Sign Agreement with Miller, Mannix, Schachner & Hafner, LLC Legal Services for Land Use Boards (10-13) Mayor Johnson stated we’ve had this agreement with this firm for many years.  They provide good counsel to the City.  This agreement is for services on an as need basis for the land use boards.  They also provide assistance as needed by the City in the SEQRA process.  The agreement is from now through December 31, 2010 at a rate not to exceed $160/hr. with a maximum cap per annum of $20,000. Mayor Johnson moved and Commissioner Wirth seconded to authorize the mayor to enter into the agreement as described.   Commissioner Ivins asked if the $160/hour and the $20,000 cap is the same amounts as last year. Mayor Johnson advised the hourly rate was $150/hour last year for this agreement.  Their hourly rate increased to $160. Commissioner Ivins confirmed that they had budgeted for $20,000. Mayor Johnson advised that was correct. Ayes – All

February 16, 2010 Note:  The following pertains to Scala hitting Scorocco in the head with DPW layoff notices in December of 2009 and the Saratogian’s subsequent FOIL request for the surveillance film of the episode.  Scala, in his capacity as Freedom of Information Officer, was compromised so the counsel hired special counsel to review the request.  Difficult to understand why the mayor could not have simply consulted with Robert Freeman at DOS. Executive Session Mayor Johnson moved and Commissioner Franck seconded to move to executive session for discussion regarding proposed, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporation at 8:15 p.m. Ayes – All Council returned from session at 8:32 p.m.

Mayor Johnson reported one matter was resolved in executive session.  Mayor Johnson moved and Commissioner Ivins seconded to authorize the City to retain the law firm of Bailey, Kelleher, and Johnson for the provision of legal services to the City of Saratoga Springs involving alleged workplace violence legal matters assigned by the City Council on or about January 5, 2010 under the direction of the Office of Risk and Safety at the hourly rate of $170 and to be capped at $1,000. Ayes – All

June 6, 2010 Discussion and Vote: Authorization for Mayor to Amend Contract for Professional Legal Services for City of Saratoga Springs Zoning Ordinance Amendment or Re-codification (10-186) Mayor Johnson stated this is for the firm Miller, Mannix, Schachner, and Hafner.  This is for the continuation of the review of the zoning ordinance that began last year.  They are using as much in-house staff as possible to reduce legal costs.  The zoning ordinance was adopted in 1990 and has been amended over 300 times since then.  There has been a chapter by chapter review of the ordinance. The zoning advisory group did a draft revised table of contents.  The hourly rate for this firm is $160/hour and will be capped at $4,295 which is in the budget. Commissioner Franck confirmed the law firm is giving guidance. Mayor Johnson stated they do review what our staff does.  At some point we need the legal analysis that helps us get through the process.  Mayor Johnson moved and Commissioner Wirth seconded to authorize the mayor to enter into this amended agreement. Ayes – All

June 15, 2010 Executive Session Mayor Johnson moved and Commissioner Franck seconded to move to executive session for discussion regarding proposed, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporation, including collective negotiations at 9:51 p.m. Ayes – All Council returned from session at 10:30 p.m. Mayor Johnson stated there were matters resolved. Note: This Executive Session is interesting and problematic.  Council authorizes retention of counsel to “oversee present defense council.”  However, note that no firm or individual attorney was named.  The ONLY counsel appearing during the trial was Scala, the City Attorney.  Was he paid up to $5,000 in addition to his City salary to sit in the spectator section of the courtroom?  He would come and go but did nothing else.

Mayor Johnson moved and Commissioner Ivins seconded to add the retaining of outside counsel to represent the City for oversight of the impending trial Anderson Group, LLC vs. the City of Saratoga Springs, set to begin trial on June 21, 2010 in federal court in Albany; to oversee present defense counsel at well as protect the interest of insurance coverage on behalf of the City based upon certain disclaimer of coverage. Ayes – All

Mayor Johnson stated this is a decision made internally between the Mayor’s Department, City attorney, and Risk and Safety to hire outside counsel to better protect the City just as an oversight basis on issues involving insurance coverage between the City and its carrier for this claim.  The matter involves litigation presently pending in federal court, Northern District of New York, the Anderson Group LLC vs. the City of Saratoga Springs set to begin trial this June 21st.  The money to pay for counsel is in the budget under the self insured fund the City maintains.  Mayor Johnson moved and Commissioner Franck seconded to authorize the Mayor’s Office (mayor) in conjunction with the City attorney and Risk and Safety to retain counsel at a fee up to a maximum of $200 per hour with a cap of $5,000 aggregate to represent the City as oversight on insurance coverage issues to better protect the City in the event that we think it is in the best interest of the City to take certain stances during the course of litigation that would be insurance related.  Ayes – All

July 6, 2010 Note: Check the following out.  Appears that Johnson never prepared the necessary requisitions for these services and Franck votes against the authorization citing failure to comply with City purchasing procedures. Discussion and Vote:  Invoice for General Labor Matters (10-187) Mayor Johnson stated Harris Beach has been on a monthly retainer basis to provide general labor advice.  The invoices before the Council start in February 2010 and run through June 2010 for a total of $10,000 (the retainer amount of $2,000 per month).  Purchase requisitions were not obtained therefore these invoices must be approved by Council for payment. Mayor Johnson moved and Commissioner Wirth seconded to authorize the payment of these invoices. Commissioner Franck explained this type of scenario occurred a couple meetings back with DPW.  He has to vote against this as the proper procedure wasn’t followed and if he voted for this he would be breaking his own office rules. Ayes – 4 Nays – 1 (Commissioner Franck)

July 26, 2010 Executive Session Mayor Johnson moved and Commissioner Ivins seconded to move to executive session for discussion regarding proposed, potential, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporation at 12:49 p.m. Ayes – All

Council returned from session at 1:37 p.m.  Mayor Johnson announced the Council has a few things to report. Mayor Johnson moved and Commissioner Wirth seconded to add an item to the mayor’s agenda regarding the hiring of Fitzgerald, Morris, Baker, and Firth at $170 per hour to provide the City with legal counsel on the recent actions undertaken by the Civil Service Commission in modifying the job responsibilities and abilities within the Building Department.   (10-219) Ayes – All

Mayor Johnson moved and Commissioner Wirth seconded to authorize the Mayor’s Office to retain the firm of Fitzgerald, Morris, Baker, and Firth at $170 per hour to provide the City with legal counsel on the recent actions undertaken by the City Civil Service Commission in restricting the ability of the assistant building inspectors to issue building permits.  (10-220) Ayes – All

Commissioner Franck moved and Commissioner Ivins seconded to add an item to his agenda regarding the hiring of legal counsel for the proposed Charter revision.  (10-221) Ayes – All

Commissioner Franck moved and Commissioner Ivins seconded to hire Brown and Weinraub as legal counsel for the proposed charter revision at $200 per hour and this will come out of his self insured retention fund.  (10-222) Commissioner Franck advised as the City Clerk he received signatures on July 20th along with petition materials.  He has 30 days to certify this material.  He had some questions relating to the certification process, therefore felt it best to obtain legal advice from a firm that specializes in this to make sure the process is done properly.  Commissioner Scirocco stated he will support this as it is the right thing to do.  Commissioner Franck advised the Accounts Office used to handle a lot of election things in their office.  About 10 years ago it was all brought to the County; therefore it is best to seek legal advice on this.  Mayor Johnson stated he does not want the public to view the voting to hire legal counsel as an indication, pro or con, regarding if the Council feels this matter should be placed upon the referendum in November.  This step is being taken to fulfill their responsibility as a Council to the public as elected officials.

August 25, 2010 Executive Session Mayor Johnson moved and Commissioner Wirth seconded to move to executive session for discussion regarding proposed, pending or current litigation; specifically the litigation titled Saratoga Citizen, Inc. versus John Franck, City Clerk of the City of Saratoga Springs at 2:04 p.m. Ayes – All

Council returned from session at 2:22 p.m.  Accounts Department Discussion and Vote:  Authorization to Retain Legal Counsel to Defend the City in the Matter of Saratoga Citizen, Inc., against John P. Franck, City Clerk of the City of Saratoga Springs  (10-265) Mayor Johnson advised in the absence of Commissioner Franck, he will be handling the Accounts Department agenda.  Mayor Johnson moved and Commissioner Wirth seconded to authorize the Mayor’s Office to retain Fitzgerald, Morris, Baker, and Firth, LLC at $200 per hour to defend the City in an Article 78 proceeding. Mayor Johnson advised they have a short turnaround on this and need to be in court for a conference on Tuesday, August 31st.  He also stated the City has been placed in an untenable position in being forced to respond in this regard to hire further counsel for defense based on the actions of the Citizens group.  The Council has an obligation to the entire City to do what they feel is best to represent the City in this legal proceeding filed against them.  All that is being done today is to make sure the City has proper legal counsel to present the issue on behalf of the City on the de-certification process issued last week by the City on the petition for Charter change.  They believe the legal fees may be covered by our insurance policy; it is being submitted to our insurance carrier for indemnification of the fees.  They can’t confirm this due to the need to act quickly.  Ayes – All

January 18, 2011 Discussion and Vote:  Authorization for Mayor to Sign Agreement with Miller, Mannix, Schachner, LLP for Professional Legal Services for City of Saratoga Springs Zoning Ordinance Amendment or Recodification  (11-23) DRAFTMayor Johnson stated this is a follow up to what has been in progress since 2009.  The Council previously voted to retain this firm to assist the City in the review of the Zoning Ordinance.  The City has been working at length with outside counsel in this regard.  The role of the law firm has been as an advisor should the City need legal assistance.  The majority of this work has been done by our in-house staff. Brad Birge stated the last major update was 1990.  Since that time, there have been over 300 text and map amendments.  The language is cumbersome and is lacking a coherent and logical process for people to move through.  There was a full re-organization by functional category.  A lot of accomplishments have been made to date; they have completed 4 of the 8 new articles and ready for Council review.  The request is to approve the continued use of Miller, Mannix, Schachner, LLP.  Mayor Johnson stated this law firm has been retained for many years because of their expertise in land use and zoning issues. The agreement would be effective now and terminated December 31, 2011 at $160 per hour and not to exceed $20,000. Mayor Johnson moved and Commissioner Franck seconded to allow the mayor to execute the agreement with Miller, Mannix, Schachner as described. Ayes – All

February 15, 2011 Discussion and Vote:  Right to Appeal from Saratoga Citizen vs. the City of Saratoga Springs Court Decision  (11-51) Mayor Johnson stated the Council has a responsibility to decide if they will appeal the court decision.  The deadline to file a notice of appeal is this Thursday, February 17th.  He thought it was important for the Council to have as much time as possible to gather as many facts as possible regarding this situation and to reach a decision.  Regardless of opinions, they have the responsibility as a Council to best protect the City in all respects.  He can’t imagine not filing a notice of appeal in this matter.  If they don’t file the notice by this Thursday, they will waive their right to ever appeal the decision.  The matter before the Council comes down to the appeal being for the entire decision – his concern about the decision of the court is the denial of the City’s request to pursue an evidentiary hearing to see if the petitions were sufficient, dually executed or if there should be any concern for potential fraud in the petition process.  The second issue is the absence of the fiscal note when the petition was handed in.  There was nothing to indicate to the City at that point what the cost of transition would be or what the operating cost would be.  The issue is what the court had in its hands when it rendered its decision.  The court found there was no fiscal note required in order to have the petitions certified and placed upon the ballot. The fiscal note has an implication that goes beyond our City boarders.  The value of a precedent is enormous; there is very little case law on this.  The danger of not appealing the decision is a change could happen again and again.  This is not denying people the right of putting something on a ballot.  They have a responsibility as a Council that they believe they are doing everything that is lawful.  Whether it is popular, that is another issue.  His proposal is to allow the Council to file a notice of appeal by the deadline of February 17, 2011.  The notice of appeal will prevent the City from waiving any of their rights to further challenge the decision. When things are not resolved, it is his opinion to keep their options open.  They are not irresponsibly spending taxpayer dollars. Mayor Johnson moved and Commissioner Wirth seconded to give the mayor permission and authorization to direct outside legal counsel to file a notice of appeal by February 17, 2011 in the matter of Saratoga Citizen, Inc. vs. the City of Saratoga Springs.  Commissioner Scirocco stated he grew up under the commission form of government and it works pretty good.  There is no perfect form of government.  It is good insurance to look at the appeal.  He has worked under the City commission form of government and under the County Board of Supervisors; both worked pretty well.  This will keep the option open – it is the right way to go. Commissioner Wirth stated this gives us the right to appeal and see all the options.  It is a legal step.  He is concerned about what the need is for the City.  He comes from another type of government in the Town of Hempstead.  There were 800,000 people with a supervisor and 6 councilmen.  This City is 30,000 people.  We should have an open mind so he will be supporting this. Commissioner Ivins stated when the petitions were first presented, Commissioner Franck suggested hiring legal counsel because either way the City was going to be sued.  In his opinion, the judge did not adequately address the fiscal note.  In the end, Saratoga Citizens finally provided financial numbers, however he feels it should have been presented with the petitions.  He does not believe it is a valid argument to say we spent unnecessary money. We will spend very little money if any to file the notice of appeal.  He is not favor of appealing this however that should not be implied that he supports what is being presented.  He believes there are some serious flaws in what has been presented.  Commissioner Franck stated he would be happy to show the legal bills; the amount is $28,000 and change.  There is no direct case law.  He knew from day 1 we would be sued either way.  He has problems relating to the legal fees on the other side; there is now way their attorneys would do $100,000 worth of work and only get paid $6,000.  They must have some kind of guarantee of getting their fees paid.  The judge did a half page about the fiscal note.  We wanted to cross-exam the witnesses but we weren’t allowed to do that.  It is still new law and he is guessing this will be appealed to the highest court.  His concern is here in Saratoga.  He is not going to vote for this because we are in mid February and the delay is not good.  If a charter review commission was set up, he would probably vote for this because they would need to know this information.  It is not an issue of money. Mayor Johnson stated the law allows the City Council to vote to form a commission and the mayor can form a commission.  He has been thinking about a commission and weighing the option.  The opinions in our community are very divided.  Tonight they have a related but separate issue; notice of appeal.  This issue should not be mixed with the forming of a commission.   Commissioner Franck stated if the Council goes forward and forms a Council commission; all that does is create another thing to be on the ballot.  The uncertainty makes him uncomfortable – that they don’t know what direction they are going in the City.  Ayes – 3 Nays – 2 (Commissioner Franck and Commissioner Ivins)

March 15, 2011 Discussion:  Disposition of Second Law Suit Re: Additional Petitions in Saratoga Citizen vs. Franck and Saratoga Springs Mayor Johnson advised there was a second lawsuit filed by Saratoga Citizen versus the City of Saratoga Springs and John Franck as City Clerk of the City of Saratoga Springs.  This was regarding the second set of petitions filed by the group to force it being placed on the ballot bypassing the Council.  We defended the City in court and a decision was rendered by Judge Nolan that dismissed their petition finding that the second set of petitions was prematurely filed; improperly filed therefore proper for dismissal.  It was a ruling in favor of the City. Discussion and Vote:  Permission to Perfect Appeal in Saratoga Citizen vs. Franck and Saratoga Springs (11-81) Mayor Johnson stated this is to proceed with the appeal to its conclusion.  In February of this year the City Council voted to authorize the filing of a notice of appeal.  Since the vote to authorize the notice of appeal, a significant development occurred that will increase the City’s chances for the likelihood of success for the appeal.  The NYS Conference of Mayors voted to join the City in the appeal and argue in support of our appeal.  The City is not paying the NYS Conference of Mayors in exchange for their joining in the appeal.  If we do not appeal, we place our City at risk of any future attempts by this or another group of not having a valid or fiscal note or budget, should they seek to later change our form of government.  This risk to the City is not reasonable.  Mayor Johnson moved and Commissioner Wirth seconded to proceed with the appeal as filed; to perfect the appeal and present it to the Appellate Court for determination.  Mayor Johnson advised the previous estimates for the appeal ranged from $10,000 – $20,000.  After further negotiations, the figure has been reduced to $7,500 and to be capped at $10,000 for legal services for appeal.  This will come from the city attorney budget line. Ayes – 3 Nays – 2 (Commissioner Franck and Commissioner Ivins)

Strange Effort To Redact Part Of Video Of Council Meeting

In another bizarre twist to City Council business, the video of the August 2nd meeting was delayed from being posted on the city website due to a request by the Risk Management Office in the Accounts Department.  The Accounts Department was seeking to have part of the video redacted.  Apparently, they wanted a comment by Commissioner John Franck removed.   I emailed John Franck asking him to indicate whether this was true but he did not respond. 

All of this is hard to flesh out because it is hidden behind a curtain of secrecy.  Apparently John Franck disclosed something that was supposed to be privileged.  

The initial plan was to display some kind of legal statement during the video advising the public that a section of the meeting had been removed.

Subsequently, it was decided to scrap the effort and publish the entire video.

One can imagine the Kafka like discussions that must have occurred.  After all, the meeting was heavily attended.  There were plenty of people who could have been deposed by attorneys to establish whatever it was that John Franck said.  In fact, redacting it would only have drawn more attention about whatever it was that he said.

 

Mathiesen Challenges Yepsen Solicitation To NYRA For A Free Box

Commissioner Mathiesen submitted a complaint to the Ethics Board arguing that given the nature of the services provided to the New York State Racing Association by the city, a request for a free box at the track by the mayor raises serious questions of  propriety.  The Ethics Board found no violation regarding the mayor’s request.

Personally, I have mixed feeling on the issue.  What I found of particular interest, though,  was the letter from Christopher Kay denying the request.  It points out the thorny nature  of politics for NYRA. I  applaud Mr. Kay and NYRA’s rigorous policy in staying out of politics but I am a little skeptical about the motivation.

This is a link to the documents: Ethics_Inquiry Re Track Box