RIOC Governance Committee Meeting Wednesday June 5 After 6 Years Of Inactivity At Urging Of New Roosevelt Island Resident Board Directors - Let's See What Happens

The Roosevelt Island Operating Corp (RIOC) Governance Committee is meeting tomorrow, Wednesday June 5.

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, June 5, 2024, at 6:00 p.m. at The Good Shepherd Community Center, 543 Main Street, Roosevelt Island, New York 10044.

AGENDA:

1. Creating process recommendations for the governance function to: - Keep Board of Directors informed of best governance practices

- Review corporate governance trends

- Recommend updates to corporate governance principles

- Advise on skills and experiences for potential Board members

- Examine ethical and conflict of interest issues

- Conduct Board self-evaluations

- Recommend by-laws which include rules and procedures for conduct of Board operations.

2. Community Concerns

Any Other Committee Business that May be Brought Before the Committee.

During the February 1, 2024 RIOC Board of Directors meeting, RIOC Directors Lydia Tang and Ben Fhala strongly advocated for the appointment of Board members to the Governance Committee, which according to Mr Fhala, has not been active for more than 6 years. Watch the video. There's alot going on.

Apparently, the resistance by some at RIOC or their NY State overseers for the revival of the Governance committee has been overcome by Ms Tang and Mr Fhala.

Let's see what results. 

Discussion Of RIOC Board Member Appointments On Agenda For Roosevelt Island Operating Corp May 16 Governance Committee Meeting

The Roosevelt Island Operating Corp (RIOC) Board of Directors Governance Committee is meeting tomorrow. The only specific agenda item is a discussion of RIOC Board member appointments. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Tuesday, May 16, 2017 at 5:30 P.M. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.

Agenda:

1. Discussion of Committee’s Role in Assisting with Board Member Appointments.
2. Any Other Committee Business That May be Brought Before the Committee.

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

As previously reported, Governor Cuomo has asked for information:

... seeking details about the RIOC Board vacancies and appointment process....

leading to community speculation that new RIOC Board appointments may be coming. As noted in the video of April 20 RIOC Board meeting, the Governor was asking about all Public Authorities Board vacancies, not just RIOC.



However, during the May 3 Roosevelt Island Residents Association (RIRA) Common Council Meeting Public Session, in response to a question from RIRA's Aaron Hamburger, NY State Assembly Member Rebecca Seawright's Chief Of Staff Katerina Matic said that her office has no new information regarding RIOC Board appointments.

Ms Matic added that Assembly Member Seawright will be meeting with the Governor's office very soon and the issue of RIOC Board appointments:

... will be at the top of her list...

RIRA conducted a vote on April 17-18

Image From RIRA

to provide Governor Andrew Cuomo with recommendations for Roosevelt Island resident nominees to fill 7 vacant and expired seats on the RIOC Board of Directors. The results of the vote were as follows:

• Lydia Tang 558 Votes
• Brian Bower 470 Votes
• Mark Block 464 Votes
• Michael Shinozaki 432 Votes
• Eduardo Janey 429 Votes
• Howard Polivy 287 Votes
• David Kraut 235 Votes

Howard Polivy, David Kraut and Michael Shinozaki are currently seated RIOC Directors. Howard Polivy and David Kraut were added to the ballot without their consent. Director Michael Shinozaki consented to appearing on the ballot. The remaining current RIOC Directors, Margie Smith and Faye Christian, did not appear on the ballot. Ms Smith indicated she did not wish to be on the ballot. It's not clear if Ms Christian indicated any preference about having her name on the ballot.

The remaining nominee candidates are not currently on the RIOC Board.

The RIRA May 3 Common Council approved the following letter be sent to Governor Cuomo:

Dear Governor Cuomo,

On April 17 & 18, 2017, the Roosevelt Island Residents Association (RIRA) conducted a referendum to determine how the community would like the expired seats on the Roosevelt Island Operating Corp. (RIOC) board filled. We understand that vetting by the State is an important part of the process and we hope that the State will find the following community residents worthy of the task:
Lydia Tang
Brian Bower
Mark Block
Michael Shinozaki
Eduardo Jany
Howard Polivy
David Kraut

There are 7 expired seats on the board. We hope you will honor the community’s wishes and appoint all seven Island residents to those expired seats.

We sincerely thank you for considering the voice of the community regarding this important matter.

Best,

Jeffrey R. Escobar

President, Roosevelt Island Residents Association

Below is the approved RIRA letter to Governor Cuomo regarding the RIOC Board Nominee Candidates vote.

RIRA May 4 2017 Letter to Governor Cuomo Re RIOC Elections-1

The RIOC Board Candidate Nominee vote is not without controversy. Claims of ballot fraud, which I am not going to get into right now, have been raised. Click here to read about the election controversy in this comments thread.

Will have more on the vote controversy in upcoming story.

Roosevelt Island Operating Corp To Discuss Status Of Search For New RIOC President At May 19 Board Of Directors Meeting - In Executive Session Closed To The Public

The Roosevelt Island Operating Corp (RIOC) Board of Directors Governance Committee will meet tomorrow in Executive Session to discuss status of search for a new President. According to RIOC:

PLEASE TAKE NOTICE that a special meeting of the Board of Directors will be held on Thursday, May 19, 2016 at 5:30 p.m. at The Cultural Center Roosevelt Room, 548 Main Street, Roosevelt Island, New York for the purpose of transacting such business as shall come before the Board.

AGENDA

I. Call to Order

II. Roll Call

III. New Business

1. Chair’s Motion for Executive Session to Discuss Status of Presidential Search for RIOC

IV. Adjournment

* * *

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

RIOC General Counsel Susan Rosenthal has been the RIOC Acting President since the March 18 departure of former RIOC President Charlene Indelicato.

According to the NY Department of State Committee on Open Government:

... a public body may conduct an executive session for the below enumerated purposes only, provided, however, that no action by formal vote shall be taken to appropriate public moneys:...

f. the medical, financial, credit or employment history of a particular person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a particular person or corporation;...

To date, the RIOC Board of Directors have not interviewed any candidates for the position of RIOC President.

Governor Cuomo Signs Seawright/Serrano Legislation Permitting RIOC To Allocate Roosevelt Island Public Purpose Funds - RIOC Governance Committee Meeting May 17 To Discuss Procedures

  Image From RIOC

 As reported last March 28:

Roosevelt Island's New York State Assembly Member Rebecca Seawright announced this afternoon that the Assembly passed legislation which will allow the Roosevelt Island Operating Corp (RIOC) to continue to distribute Public Purpose Funds to eligible Roosevelt Island non-profit organizations....

... It's up to Governor Cuomo to now sign the legislation....

During the May 4 Roosevelt Island Residents Association (RIRA) Common Council Public Session, Assembly Member Seawright's Chief Of Staff Katerina Matic announced that Governor Cuomo signed the legislation.



The Roosevelt Island Operating Corp (RIOC) Governance Committee will  meet on May 17 to discuss the procedures for distributing Public Purpose Funds. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Tuesday, May 17, 2016 at 5:30 P.M. at The Cultural Center Roosevelt Room, 548 Main Street, Roosevelt Island, New York.

Agenda:

1. Discussion of the Public Purpose Funds Procedures.

2. Any Other Committee Business That May be Brought Before the Committee.

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

An audio web cast of the meeting will be available soon thereafter.

Here are the Roosevelt Island organizations approved for 2015 Public Purpose Funds and the amounts they will receive.

Roosevelt Island Coler Hospital Parking Lot, Lighthouse Park & Current Projects On Agenda For RIOC Operations Advisory Committee Meeting Tuesday October 13 - RIOC Governance Committee Executive Session Thursday October 15 To Discuss Employment History Of Particular Person(s)

The Roosevelt Island Operating Corp (RIOC) Operations Advisory Committee will meet tomorrow. According the the Agenda:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Tuesday, October 13, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA:

1. Review of Current Projects
2. Discussion of the Lot Behind the Coler Hospital
3. Discussion of the Lighthouse Park
4. Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

Google Maps show us the area of the Coler Hospital Parking lot area under discussion.



The RIOC Operations Advisory Committee earlier this year discussed need to clean up the Coler Parking lot area and jurisdictional issues regarding whether RIOC or NYC Health & Hospitals Corp controls the area.



Also, the RIOC Governance Committee will meet on Thursday October 15. According to the Agenda:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Thursday, October 15, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Chair's Motion for Executive Session to Discuss the Employment History of Particular Person(s).

Any Other Committee Business That May be Brought Before the Committee.

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public.

Executive session means that the meeting will be closed to the public.

An audio web cast will be available of both meetings shortly after taking place.

UPDATE 10/15 - Audio web cast is here.

RIOC Governance Committee Discusses NY State Authorities Budget Office Policy Guidance And Distribution Of Roosevelt Island Public Purpose Funds - RIOC Tries To Thread Needle Between Complying With Law And Serving Roosevelt Island Community Needs

Image From NY State Authorities Budget Office

As reported yesterday the Roosevelt Island Operating Corp (RIOC) Governance Committee met last evening to discuss the January 13, 2015 NY State Authorities Budget Office (ABO) Policy Guidance regarding:

... distribution by RIOC of Public Purpose Funds to Roosevelt Island non profit organizations.

In response to my question, RIOC Director Margie Smith answered that RIOC has not received any written instructions from the NY Governor's Office or ABO about the distribution of Public Purpose Funds but believes that the Roosevelt Island Youth Program will receive funding. RIOC President Charlene Indelicato added that RIYP will be funded by RIOC through the end of the year at which time RIOC will probably issue a Request For Proposals for Youth Services.

RIOC does not know if it will be able to distribute funds to Roosevelt Island organizations that have applied for 2015 Public Purpose Funds through the RIRA vetting process.

RIOC Directors discussed the possibility of alternative funding sources for Roosevelt Island non profits organizations including private groups such as Roosevelt Island building owners....

Here's video of the full meeting.

Part 1.



Part 2.



Part 3.



An audio web cast of the meeting from RIOC is here.

RIOC Governance Committee Meeting Today On Distribution Of Roosevelt Island Public Purpose Funds - RIRA Passes Motion In Favor Of RIOC PPF Distribution Claiming Money Is Debt Owed To Community By RIOC, Not A State Grant

As previously reported, the annual distribution of approximately $100 Thousand in Roosevelt Island Operating Corp (RIOC) Public Purpose Funds

 Image From RIOC

to Roosevelt Island non profit organizations has been jeopardized because of the New York State Authorities Budget Office (ABO) January 13, 2015 Policy Guidance Statement saying in part:

... State and local authorities, as defined by Section 2 of the Public Authorities Law, whether created as public benefit corporations or formed as not- for-profit corporations, have only those powers explicitly granted or necessarily implied by statute. Accordingly, state and local authorities may engage in only those activities and exercise those powers which are expressly authorized in law or which are incidental to performing their statutory purposes.

Authorities Budget Office Policy Guidance: This limitation applies to the power of a state or local authority to award its monies in the form of grants and loans to public or private interests. Such financial assistance is prohibited unless expressly authorized in statute....

... A state or local authority, unless otherwise empowered under the law, may not grant or loan its monies to public or private corporations, private businesses or interests, civic associations, charitable groups, educational institutions, not-for- profit corporations, or any other social, religious, fraternal or cultural organization....

... All state and local authorities which, as a matter of practice or policy, grant or loan their monies to such entities without specific legislative authorization are directed to immediately end such practice or policy so as to comply with applicable state law and the opinions of the State Attorney General and State Comptroller.

The RIOC Governance Committee is meeting today to discuss the issue of Roosevelt Island Public Purpose Funds in view of the ABO Policy Guidance. Here's the Agenda for today's Governance Committee meeting.

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Monday, March 23, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Discussion of the Authorities Budget Office Guidance No 15-01 "Restrictions on Grants and Loans Made by Public Authorities"

Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

The Roosevelt Island Residents Association (RIRA) Common Council discussed RIOC Public Purpose Funds during March 4 meeting. RIRA Governance Committee Chair Joyce Short asserted that RIOC Public Purpose Funds are:

... a debt, not a grant, to the community...

meaning that the ABO Policy Guidance prohibiting grants or loans does not apply to distribution of RIOC Public Purpose Funds to Roosevelt Island non profit organizations.

Ms. Short claimed that RIOC previously "squandered" Public Purpose funds originally provided by Manhattan Park as payments in lieu of taxes.

The Public Purpose Funds discussion begins at the 2 minute mark.



Following the discussion, RIRA passed a resolution in favor of RIOC continuing distribution of Public Purpose Funds.

UPDATE 10 PM - Below is a video except from RIOC Governance committee meeting discussion this evening regarding ABO Policy Guidance on distribution by RIOC of Public Purpose Funds to Roosevelt Island non profit organizations.

In response to my question, RIOC Director Margie Smith answered that RIOC has not received any written instructions from the NY Governor's Office or ABO about the distribution of Public Purpose Funds but believes that the Roosevelt Island Youth Program will receive funding. RIOC President Charlene Indelicato added that RIYP will be funded by RIOC through the end of the year at which time RIOC will probably issue a Request For Proposals for Youth Services.

RIOC does not know if it will be able to distribute funds to Roosevelt Island organizations that have applied for 2015 Public Purpose Funds through the RIRA vetting process.



RIOC Directors discussed the possibility of alternative funding sources for Roosevelt Island non profits organizations including private groups such as Roosevelt Island building owners.

Will have complete report and video soon.

UPDATE 3/24 Full video of Governance Committee meeting here.

Future RIOC Public Purpose Funds Process And 2015-16 Budget Subject Of Roosevelt Island Operating Corp Governance And Audit Committee Meetings December 3

Pile Of Money Image From Passive Income Genius

As reported last October 29:

Since at least 2008, the Roosevelt Island Residents Association (RIRA) has been tasked by the Roosevelt Island Operating Corp (RIOC) to evaluate applications and make recommendations to RIOC for the allocation of approximately $100 Thousand annually in Public Purpose Funds to Roosevelt Island non-profit organizations....

and:

... Question have been raised recently whether RIRA will continue with its role of making Roosevelt Island Public Purpose Funds recommendations to RIOC....

At that time, RIOC President Charlene Indelicato replied to my question about the future role of RIRA in the Public Purpose Funds process noting:

We have not finalized the method of distribution as yet but be assured it will be in accordance with all applicable laws, rules and regulations.

We may learn more about the future process for distribution of Roosevelt Island Public Purpose Fund later this week.

According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, December 3, 2014 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Discussion of Public Purpose Funds Approval Process

Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

More on Roosevelt Island Public Purpose Funding process from previous post.

During October 22 RIOC Audit Committee meeting (full audio web cast here) Ms. Indelicato and RIOC CFO Frances Walton acknowledged that Public Purpose funding was included in the upcoming 2015-16 RIOC Budget.



Also, the RIOC Board Of Directors Audit Committee will be meeting this week. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Wednesday, December 3, 2014 at 4:00 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:

Discussion of the Proposed Budget for Fiscal Year 2015 – 2016
Any Other Committee Business That May be Brought Before the Committee

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

As reported last November 6:

According to RIOC's Proposed Budget (Page 1)

Revenues

RIOC Proposed Budget FY 2015‐16 projects revenues of $25,365,000, an increase of $2,225,000 or 9.62% over the Approved Budget FY 2014‐15 amount of $23,140,000. RIOC generates most of its revenues from long‐term ground leases to developers of housing projects on the Island....

More information on the RIOC Proposed 2015-16 Proposed Budget from previous post and from the full RIOC Draft Budget.

Audio web casts of the Governance and Audit Committee meetings will be available soon thereafter.

Still No Comment From RIOC Board Of Directors On NY State Inspector General's Corruption Report - RIOC Governance Committee Meeting Tomorrow, Will Subject Be Discussed?

 Image From NY Inspector General

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Thursday, August 21, 2014 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Updates on RIOC’s Employees Performance Appraisal System;

Discussion of RIOC’s Employees Training Plan;

Discussion of Overall Roles and Responsibilities of the Governance Committee; and

Any Other Committee Business That May be Brought Before the Committee.

***

The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.

Sincerely,

Roosevelt Island Operating Corp Advisories Group

Still no comment from the RIOC Board of Directors on the governance issues raised by the August 2014 NY State Inspector General's Report detailing criminal conduct, corruption, kickbacks and nepotism by RIOC staff during prior administrations. Also, there has been no comment from RIOC Board Of Directors either on the NY State Inspector General's August 7 letter to RIOC President Charlene Indelicato regarding the Public Safety Department.

Does the RIOC Board of Directors not think Roosevelt Island residents, as well as the State Of New York, deserve an explanation how such corrupt practices detailed in the Inspector General's report could have occurred while they were monitoring and overseeing RIOC?

An audio web cast of the Governance Committee meeting will be made available soon thereafter.

Roosevelt Island Still Without President and VP Of Operations - RIOC Govenance Committee Meeting Today To Discuss

 Image Of RIOC Directors December 20 Q&A On Management Upheaval

The Roosevelt Island Operating Corp (RIOC) Governance Committee is meeting today. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Tuesday, January 15, 2013 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

AGENDA

Discussion of Procedures for Board Ratifications and Board Meetings;

Discussion of Open RIOC Staff Positions; and

Any Other Committee Business That May be Brought Before the Committee.

As reported in this December 21 post:

Among the topics discussed at last night's Question and Answer session between Roosevelt Island Operating Corp (RIOC) resident Directors and members of the community were the recent management upheavals at RIOC with the unexplained departures of former President Leslie Torres and former Vice President of Operations Fernando Martinez.

Residents expressed concern about the lack of management running Roosevelt Island.

RIOC Director David Kraut said that there was an upcoming RIOC Governance Committee meeting that will address executive staff issues.

RIOC Director Margie Smith was more forthcoming expressing frustration because:

... We're in a tough position ... we hear things in Executive Session that we can't say to anybody...

and that Governor Cuomo is:

... very much in control of what's going on, he's now looking at Public Authorities...

adding:

... we see Leslie resigning, we see Fernando resigning. We don't know if there was something behind the resignation or they chose to resign. They didn't share that information with us. there's not much we can do about it

and:

... we're trying to get those positions filled ... we're trying to keep this place running to the degree we can...

Video of the discussion about RIOC management is available here.

Will we learn anything new about the future of Roosevelt Island management tonight?

Stay tuned.

An audio web cast of the meeting will be made available by RIOC soon thereafter.

UPDATE 11:15 PM - Nothing new was learned at tonight's Governance Committee meeting about the selection of new RIOC President and Vice President of Operations except it is more clear than ever that the Governor's office wants to make the decision and the RIOC Directors are unsure of how to proceed.

The RIOC Directors are caught between their independent fiduciary obligations under the Public Authorities Act to the Corporation which gives them the right to hire/fire the President and Vice President and NY State political power considerations which may force them to defer to the patronage wishes of Governor Cuomo.

At the conclusion of tonight's discussion, the RIOC Governance Committee Directors decided to draft a letter, subject to approval by the full RIOC Board, to the NY State Authorities Budget Office seeking direction on how to proceed with selecting a new President and Vice President.

Here's what happened. Watch the whole video to see how decisions, or, lack of decisions, get made on who picks the top executives governing Roosevelt Island.



Will have more on this soon.

Is Roosevelt Island Operating Corp Board Of Directors Taking Control Of New RIOC President Selection Process? Maybe, But Still No Word On Why Former RIOC President Resigned

The Roosevelt Island Operating Corp (RIOC) Governance Committee

 Image of RIOC Directors and Staff Before Governance Committee Meeting Begins

met this evening for over an hour in Executive Session (closed to the public) to discuss the resignation of former RIOC President Leslie Torres, the appointment of an interim President and procedures for selecting a new President.

At the conclusion of the Executive Session, the RIOC Directors announced that General Counsel Donald Lewis will be the Interim RIOC President/CEO until an Emergency RIOC Board of Directors meeting is held which is scheduled for next Wednesday October 3. At that full RIOC Board meeting, an Acting President/CEO will be named by the RIOC Directors and procedures will be announced for conducting a job search for a new RIOC President.

The RIOC Directors also stated that they do not know why Ms. Torres resigned and that they did not learn of her resignation until last Friday.  Ms. Torres resignation was effective the same day it was announced.

Here's some of what happened during the Governance Committee Public Session.



Interestingly, The Tribeca Trib reported on September 12 that the Chairperson President of the Battery Park City Authority resigned effective October 1. The Battery Park City Authority is a NY State Public Benefit Corporation similar to RIOC.

This previous post describes how the RIOC President selection process played out in 2010 following the removal of former President Steve Shane. The Governor, through the DHCR Commissioner, picked Ms. Torres as RIOC President and the RIOC Board's acquiesced to the selection. Perhaps that will not happen this time.

RIOC Board Member/Child School Director Apologizes For Mistakes Not Disclosing Relationship With NY Rowing Association and For Fundraising Letter During RIOC Governance Committee Meeting Yesterday - Also Reports Lease For Theater/Auditorium At 504 Main Street To Be Signed In Next Few Days

The Roosevelt Island Operating Corp (RIOC) Governance Committee met yesterday (audio webcast of full meeting here). Among the items discussed were conflict of interest and disclosure requirements for RIOC Board Directors.

As previously reported, this issue was raised by the RIOC Governance Committee because of RIOC Director and Child School Executive Director Sal Ferrera's recent failure to disclose his relationship with the NY Rowing Association which was seeking a permit to operate a boating facility on Roosevelt Island and the distribution of a fundraising letter by the Child School to Roosevelt Island residents and organizations.

The discussion began with RIOC Director Margie Smith asking:

What exactly is considered a conflict of interest, what are disclosure requirements, who decides and where do we go from here

RIOC General Counsel Donald Lewis summarized the requirements stating:

 ... bottom line is it is a case by case examination...

and

... each director officer and employee of the corporation must endeavor to pursue a course of conduct which will not  raise suspicion among the public that he or she is likely to engage in acts of violating his or her public trust...

During the Governance Committee meeting, RIOC Director Sal Ferrera apologized and acknowledged his mistake in not disclosing his relationship with the NY Rowing Association. Mr. Ferrera explained that he did not think he needed to explain his relationship with the NY Rowing Association during the March 21 Operations Committee meeting because the intent of the proposal was for a pilot project and that no vote or Board Action was to be taken on the issue.

A question was then raised whether the NY Rowing Association had to be disqualified from the RIOC Request For Proposal for a rowing and kayaking facility because Mr. Ferrera spoke in their favor during a RIOC Real Estate Committee meeting. It was decided that RIOC would submit that question to the NY State Authorities Budget Office for resolution.

Mr. Ferrera also said that the Child School fundraising letter sent to Roosevelt Island residents and organizations was an error made by an employee. Mr. Fererra apologized for the fundraising solicitation letter and said it would not happen again. He noted that when he read the letter he was upset by it as well.

Here's the discussion.



Mr. Ferrera also reported that the Child School will sign a lease with Hudson/Related this coming Friday or the following Monday for the second floor of 504 Main Street to be used as an auditorium/theater with seating for 150. Mr. Ferrera indicated that the auditorium would have sufficient soundproofing so that it would not disturb the NY Public Library branch that may be located on the first floor of 504 Main Street some time in the future.



More on the future use of 504 Main Street from previous posts here and here.

UPDATE 6:25 PM - Mr. Ferrera writes:

I am writing in response to various individuals who have objected to a letter sent out from the Child School soliciting donations for the development of a performing arts center 504 Main. As some of your readers may know, 504 is building which has been never been tenanted since its construction in the 1970s . Unfortunately the letter erroneously referred to an amphitheater at 504 Main. The building will instead contain a small auditorium which will double as a theatre for our drama performances. Its seating capacity will be approximately 150. The space will also contain 3 classrooms that will focus on music ,dance and art. This new facility will be available to our community after school hours, the only cost will be for security (IF NECESSARY). Our construction plan includes sound proofing which should eliminate any disruption for the planned library on the first floor.

These individuals, have used the above letter as a pretext to question my ethics and raise the issue of conflicts of interest as a result of my serving on the RIOC board. As far as conflict of interests and the Child School is concerned, I do not as a matter of policy raise or propose any projects that will be solely beneficial to The Child School. A good example is the request made by the rowing group to build a temporary 80 foot floating dock under the Koch Bridge on RI. Yes, it will be accessible to the students of The Child School as well to all the interested residents that live on the Island. Yes, I also serve on the rowing groups not for profit board and that can be interpreted as a conflict which is why I have stood aside as the rowing group presented its proposal independently and in compliance with RIOCs stated policies and procedures. This project, along with 504 main, will benefit our community and in particular the children living on this island yet both projects are being used as a basis for various individuals to personally and wrongly attack my participation on the RIOC board.

My hope is that the vast majority of the residents on this island can see benefits of just these two projects and separate them from the real objectives of this small but very vocal group of individuals who refuse to accept my presence on the RIOC board as a result of my assignment by the Governor.

Conflict of Interest And Disclosure Requirements For RIOC Directors Among Items On Agenda For April 11 Roosevelt Island Operationg Corp Governance Committee Meeting

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, April 11, 2012 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The Committee will meet to discuss:

1. Update on CFO Position Objectives;
2. Review of President/CEO Position Objectives and Performance Evaluation Approach;
3. Update on Long Range Plan;
4. General Discussion of Conflict of Interest and Disclosure Requirements; and
5. Update on Corporate Compliance Issues. 

As reported in previous post, the RIOC Board conflict of interest and disclosure requirement issue recently arose again following a presentation by the NY Rowing Association to the March 21 RIOC Operations Committee. During this meeting, the NY Rowing Association proposed to establish a rowing and kayaking facility on Roosevelt Island.

However, RIOC Board Member and Child School Executive Director Sal Ferrera, who was present for the meeting, but not a member of the Operations Committee, did not disclose to his fellow Board members that he was also a member of the NY Rowing Association Board of Trustees and that the NY Rowing Association official making the presentation to the RIOC Board was a member of the Child School Board of Directors.

Mr. Ferrera also did not disclose to his fellow RIOC Board members that there was a legal dispute between the NY Rowing Association and its former site at the Peter Sharp Boathouse on the Harlem River.

Mr. Ferrera was silent during the presentation and discussion.

RIOC staff have not responded to repeated inquiries asking if Mr. Ferrera disclosed to them his relationship with the NY Rowing Association or the organization's legal dispute with Peter Sharp Boathouse.

At a follow up Real Estate Committee meeting on April 2, despite Mr. Ferrera's support for the NY Rowing Association proposal, the RIOC Directors decided not to approve the NY Rowing Association proposal but to issue a Request for Proposals for any qualified organization, including the NY Rowing Association, to establish a rowing and kayaking facility on Roosevelt Island.

Additional allegations concerning conflict of interest appearances directed at Mr. Ferrera's dual role as RIOC Board Director and Child School Executive Director continued this week.  I sent the following inquiry to RIOC President Leslie Torres and RIOC Directors earlier today:

I understand that RIOC Board Director and Child School Executive Director Sal Ferrera has been sending out donation solicitation fundraising letters for the Child School to Roosevelt Island residents who, in some cases, are officials/members of Roosevelt Island organizations that work in one way or another with RIOC. Is that true?

Several recipients of the Child School fundraising letters have expressed concern regarding the appropriateness/legality of a RIOC Director soliciting funds from them and that these fundraising letters further demonstrate an inherent conflict of interest between Mr. Ferrera's dual position as a RIOC Director and Child School Executive Director.

I am preparing a post on this issue for Roosevelt Islander Online and am happy to include a statement from any of you.

Thank you.

Have not received a response yet but if received will include it as an update.

Roosevelt Island Historical Society President Judy Berdy received one of those fundraising solicitations and sent the following message to RIOC President Torres and RIOC Directors:

Last week I received a solicitation from The Child School for a donation. It included the letter attached and the quote for a "275 seat amphitheater."  Yesterday, I received an invitation to the event and also included the Arts Center and a 280 seat amphitheater."

I have checked with Doryne Isley, manager of Roosevelt Landings who knows nothing of this "amphitheater." (There is an out-of-door amphitherater in back of 540 Main St.)

Along with the riding academy, rowing center, this arts center and now amphitheatre are direct conflicts with being a board member of RIOC.  I suggest that RIOC Governance Committee refer this matter to the NYS Attorney General since Mr. Ferrera is using his position as a board member to acquire use of Island property.

Below is an April 4, 2012 Child School fundraising letter and event invitation.

So, will the RIOC Governance Committee discuss the specific issue of Mr. Ferrera possible conflict of interest as RIOC Director and Child School Executive Director or will it be only a general discussion of the issue as listed in the Agenda?

Perhaps the NY State Authorities Budget Office (ABO) Model Code of Ethics provides some guidance on this issue?



Stay tuned.

UPDATE 6:40 PM - RIOC Press Spokesperson responds:

We have confirmed with Dr. Ferrera that fundraising letters for the Child School were sent to certain Roosevelt Island residents who are members of Roosevelt Island organizations that do business with RIOC. According to Dr. Ferrera, the letters to those individuals were inadvertently sent out and he has apologized for the mistake. Dr. Ferrera has also confirmed that the Child School will not accept donations from any such individuals. Furthermore, Dr. Ferrera has confirmed that the Child School has not previously, nor does it intend to in the future, solicit donations for the Child School from any Roosevelt Island residents.

While this appears to have been an error, we have emphasized to Dr. Ferrera that as a member of the RIOC Board, it is inappropriate to engage in actions that may result in the appearance of impropriety or undue influence. Dr. Ferrera has informed us that he fully understands his ethical responsibilities and again apologized for the mistake.

Governance Committee of the Roosevelt Island Operating Corp (RIOC) Meeting This Afternoon

According to the Roosevelt Island Operating Corp (RIOC):

NOTICE OF THE
NOVEMBER 14, 2011 MEETING OF THE
GOVERNANCE COMMITTEE
OF THE ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Monday, November 14, 2011 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The Committee will meet to discuss:
    
     1. Chief Financial Officer position objectives;
     2. Board review of contracts; and
     3. Public Authorities Law requirements.

An audio webcast of the meeting will be available several days later.

If you are interested in becoming a RIOC Director, here's a discussion among current resident RIOC Directors describing what this volunteer position entails.

Roosevelt Island Security Camera System, Zip Car Parking, Oil Dock Ferry Study, RIOC Staffing and Other Issues To Be Addressed At This Week's RIOC Governance and Operations Committee Meetings Followed By Full Board Meeting Next Week

The Roosevelt Island Operating Corp (RIOC) Board of Directors Governance Committee will be meeting later today. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Thursday, July 28, 2011 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York. The Committee will meet to discuss:
               1. current governance practices; and
               2. RIOC staffing plan.

RIOC's Operations Committee will be meeting the following day:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Friday, July 29, 2011 at 5 PM at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.
The agenda is:
1. Camera and Wireless Infrastructure Project
2. Discussion on Oil Dock Engineering Study
3. Good Shepherd Community Center Roof Renovation
4. Southtown Zipcar Parking

and the full RIOC Board of Directors will be meeting on August 3.

AGENDA

AUGUST 3, 2011
MEETING OF THE ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS
THE MANHATTAN PARK COMMUNITY CENTER,
8 RIVER ROAD, ROOSEVELT ISLAND, NEW YORK
5:30 P.M.1

I. Call to Order
II. Roll Call
III. Approval of Minutes
     1. June 29, 2011 Board Meeting (Board Action Required)
IV. Old Business
V. New Business
     1.          Presentation of the FY 2011-2012 QTR 1 Procurement Report;
     2.          Authorization to Enter into Contract with Sea Breeze General Construction Inc. for Roof Repair at Good Shepherd Community Center (Board Action Required - Materials to Follow);
     3.          Authorization to Enter into Contract with Derive Technologies for Phase Two of the Island-Wide Security Camera System Project (Board Action Required);
     4.          Authorization to Amend License Agreement with Riverwalk Landing LLC for Zipcar
                   Parking at Southtown (Board Action Required);
     5.           President's Report
     6.          Committee Reports
                   a.  Audit Committee
                   b.  Governance Committee
                   c.  Operations Advisory Committee
                   d.  Real Estate Development Advisory Committee
     7.           Public Safety Report
VI. Adjournment

1 The RIOC Board Meeting will commence following a public comment period, which is not a part of the RIOC Board Meeting.

UPDATE 8/2 - Audio Web Casts of the Operations Committee Meeing and the Governance Committee meeting are now available.

Does RIOC Board Still Aprove Governor's Appointment Of Roosevelt Island Operating Corp President/CEO - Find Out At March 25 Board Of Directors Meeting

Image of February 2010 RIOC Board Meeting

The Agenda for the March 25 Roosevelt Island Operating Corp. (RIOC) Board of Directors Meeting includes the following item:

4. Authorization to Adopt a Mission Statement as Required by the Public Authorities Reform Act of 2009 (Board Action Required)

which was the subject of some confusion during the March 17 (audio cast available here) RIOC Governance Committee meeting.

I asked RIOC President Steve Shane to clarify:

During last week's governance committee meeting, an issue arose over the content of a proposed RIOC "Mission Statement" that is now mandated by the new Public Authorities Act. The "Mission Statement" presented to the Directors present at the meeting seemed to include language that allowed the RIOC President or CEO to be appointed by the Governor without the express approval of the RIOC Board of Directors as has been the prior practice.

The Directors present objected to that language, requested that any deadline for submitting such a statement be extended and asked the RIOC staff to rework the "Mission Statement". However, I understand that an Agenda Item for the March 25 RIOC Board Meeting includes an Authorization to Adopt a Mission Statement.

Does this Mission Statement include the language regarding appointment of RIOC's President/CEO that was objected to by RIOC Board Members at the Governance Committee meeting? Can you please clarify the situation.

Mr. Shane replied:

We will all find out at the Board meeting. The Authorities Budget Office has refused to grant an extension or a waiver, although many State Agencies have so requested. So, as a matter of law, we are required to respond by March 31.
There was nothing that allowed the Governor to appoint the President/CEO without the express approval of the Board. It has never been so in practice, either. The reality that RIOC is a State Agency, created by NY State statute and operating as an instrumentality of the State of New York should be accepted.

(Added 4:50 PM - During the March 17 Governance Committee meeting, RIOC Director David Kraut speculated, perhaps jokingly or not, that should the RIOC Board ever reject a RIOC President/CEO nominee from the Governor, the result would be that the Governor could leave the position vacant and replace those recalcitrant RIOC directors as their terms expire until the Governor's nominee is approved.)

The Agenda for the March 25 RIOC Board Meeting is below. There will also be a Roosevelt Island Residents Association (RIRA) Town Hall Meeting the night before on March 24 at the Good Shepherd Community Center (8PM) in which residents can comment and ask questions of RIOC concerning items on the March 25 RIOC Board Agenda including the 2010 -11 RIOC Budget and dispersal of Public Purpose Funds.

AGENDA

MARCH 25, 2010
MEETING OF THE ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS
THE GOOD SHEPHERD CENTER, 9:30 A.M.

I. Call to Order
II. Roll Call
III. Approval of Minutes
1. February 18, 2010 Board Meeting (Board Action Required)
IV. Old Business
V. New Business

1. Approval of the Proposed Budget for Fiscal Year 2010-11 (Board Action Required)
2. Authorization of Expenditure of Public Purpose Funds (Board Action Required)
3. Authorization to Take Certain Actions to Comply with the Public Authorities Reform Act of 2009 (Board Action Required)
4. Authorization to Adopt a Mission Statement as Required by the Public Authorities Reform Act of 2009 (Board Action Required)
5. Authorization to Enter into Insurance Binders for 2010-11 (Board Action Required - Materials to Follow)
6. Authorization of Modification of the Schedule of the 2010 Regular Meetings of the Board of Directors (Board Action Required)
7. Authorization to Enter into Contract for the Purchase of a Hybrid-Electric Bus (Board Action Required)
8. Committee Reports
a. Audit Committee
b. Governance Committee
c. Operations Advisory Committee
d. Real Estate Development Advisory Committee
9. Public Safety Report
10. President's Report

VI. Adjournment

RIOC Governance & Operations Committee Meeting On March 17 - Compliance With Public Authorities Act, Southtown Traffic Patterns & RI Updates On Agenda

You Tube Video Explaining NY Public Authorities and Reform Act

The Roosevelt Island Operating Corp. (RIOC) Board Of Directors Governance and Operations Committee will be meeting on Wednesday, March 17. From RIOC:

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, March 17, 2010 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York. The Committee will meet to:

1. Elect a Chairperson;
2. Review proposed resolution to take certain actions to comply with the Public Authorities Reform Act of 2009;
3. Discuss role of RIOC Board as it relates to lobbyists;
4. Review proposed corporate mission statement;
5. Discuss new timeslots and new order for RIOC Board meetings;
6. Discuss putting RIOC Board agenda package on Web; and
7. Discuss hiring an outside consultant to evaluate RIOC operations

and:

PLEASE TAKE NOTICE that a meeting of the Operations Advisory Committee of the RIOC Board of Directors will be held on Wednesday, March 17, 2010 at 6:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York. The agenda for the meeting will be:

1. Presentation of Roosevelt Island GIS Project;
2. Presentation on Southtown Traffic Pattern;
3. Discussion of Red Bus Shuttle Service;
4. Update on the Aerial Tramway Modernization Project;
5. Update on the Southpoint Open Space Project; and
6. Presentation on Engineering and Maintenance Report.

The webcast of both meetings will be available on line two days later.