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PB’s Not to Blame; NYC’s Capital Process Needs Reform

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STAFFERS OF COUNCIL Member Andrew Cohen describe the Participatory Budgeting process. File Photo/Miriam Quinones

Participatory Budgeting introduces the public to the City budget process and gives them a direct say in how millions of tax dollars are spent in our communities every year.  This grassroots, people-powered initiative not only increases civic engagement, it connects individuals to their neighbors and encourages them to learn how local government plays an important role in our daily lives.

Yes, Participatory Budgeting has its flaws.  It is labor intensive for Council Members’ staff; volunteers don’t necessarily have the time necessary to devote; and it is challenging for community members to learn the complexity of the City budget.  However, Participatory Budgeting is not the cause of the length of time it takes for capital projects to be conceptualized and then ultimately constructed and completed.  Rather, that is due to the City’s bureaucratic contracting process.

The capital process is a beleaguered one where City funds are allocated towards construction type projects on both City owned and non-City property.  Once funds are approved in the City budget each June, they are then directed to the appropriate agency that oversees the development of specific projects; namely the Department of Parks & Recreation (DPR), School Construction Authority (SCA) and the New York Public Library (NYPL).  Capital projects go through stages including design, procurement and construction, and can take several years to be completed and ready for public utilization.

I am the first to admit that the capital process is bureaucratic and flawed.  It undoubtedly needs revamping and my Council colleagues and I have worked to make improvements to the process in the last few years.  But more needs to be done.

One way, I believe, to improve the capital process would to be to increase the budgets of City agencies who oversee the majority of capital projects.  Currently projects get delayed for a number of reasons; a chief one being that agencies do not have enough staff to handle the volume of projects. By increasing agencies’ staff allotments they will have the necessary staff to efficiently move forward with more capital projects.  The Council worked to increase agency budgets for this purpose in last year’s budget, but it is clear that additional funds are needed.

Additionally, we can improve the capital process by expediting the practice of procurement.  A vendor that has a solid track record in their previous business with the City should not have to go through the same lengthy review process that new or poorly rated vendors do.  This would slash months off of the start to completion timeline for capital projects.

Another possible improvement to procurement would be stricter oversight and reform to the bidding process and the market of contractors.  In order to be eligible for selection of City capital contracts, companies must be pre-approved vendors who have been previously vetted. This limited pool of contractors then submit bids in response to requests for proposals (RFPs) for proposed capital projects.  Typically, the contractors set the market for city projects and there is a common approximate bid, thus a system where it costs over one million dollars to renovate a playground.  However, there are also cases where really low offers are submitted and the City is obligated to accept the lowest responsible bid.  The contractor then comes back months or years later and acknowledges that they cannot realistically complete the project with the previously allocated funds.  The City is then forced to work with the vendor, causing further delay where additional funds are needed.  Or even worse, it may result in the re-opening of the bidding process, thereby starting all over again.

Simply put, the time it currently takes capital projects to move from conception to completion is unacceptable.  New Yorkers shouldn’t have to wait three to five years for improvements to public schools or renovations to our libraries.  Reforming the capital process won’t happen overnight, but improving the process will save the City time and more importantly make us more fiscally responsible.

Andrew Cohen is a member of the New York City Council representing the 11th Council District, which covers Bedford Park; Kingsbridge; Norwood; Riverdale; Van Cortlandt Village; Wakefield; and Woodlawn.

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