Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Monroe County – Use of a Local Development Corporation to Contract for Public Safety and Security Systems (2012M-123)


Released: October 5, 2012 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the activities surrounding the use of an LDC for the provision of the County’s public safety and security systems and services for the period January 1, 2010, to February 29, 2012.

Background

Monroe County is located in Western New York on the south shore of Lake Ontario. The County Executive and 29-member County Legislature govern County operations. The County’s operating budget appropriations for the 2012 fiscal year are $939.8 million.

Key Findings

County officials did not manage County operations as economically as possible and in compliance with statutory requirements when obtaining public safety and security systems and services, which they are procuring from Monroe Security and Safety Systems LDC (M3S). As a result, County taxpayers are likely overpaying for public safety and security systems and services, and will continue to do so over the 20-year life of this $212 million contract.

  • The RFP process utilized to procure the Contract was not competitive and favored one vendor, Navitech.
  • The Contract’s terms were not reflective of those solicited by the RFP.
  • The County will minimally pay $20.6 million more than the value of the systems and services to be received through the Contract.
  • The County will pay $30.3 million in administrative and management fees that has already monetarily benefited individuals with previous ties to the County.
  • Vendor discounts totaling $12.7 million will not be passed through to the County.

Key Recommendations

  • When an RFP process is authorized, thoroughly review and analyze all proposals using formal and consistent evaluation/rating criteria, free from bias or favoritism.
  • Properly negotiate future contracts and ensure that contracts contain clear contract language.
  • Do not deliberately structure capital expenditures into long-term contracts as a means of reclassifying these expenses as operating expenditures.
  • Adhere to the requirements of County Charter/policy when procuring goods and services.
  • Commit to acquiring capital assets in a manner that is transparent and allows for Legislative oversight, including broad support for the issuance of debt to finance such acquisitions.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236