New York City’s ferry operator failed to report nearly a quarter of a billion dollars in costs during Mayor Bill de Blasio’s run, the city’s curator announced Wednesday. . in a 50-page test.
“We rely on the city to be honest about the price of everything so we can make clear and shared decisions about where the money is going,” the actuary, Brad Lander, told the reporter. “When the game of hide-and-seek is played for any amount of money – certainly a quarter of a billion dollars – you can’t believe your city is delivering the truth.”
The report details record-keeping issues at the city’s Economic Development Corporation, a semi-independent agency that operates the ferry network with the private company Hornblower. According to the audit, EDC overpaid Hornblower and did not hold the operator responsible for the signed contract.
Fred D’Ascoli, the development corporation’s chief financial officer, refuted some of Mr Lander’s findings in a letter.
“We believe that relevant data has been misrepresented, important information has been misinterpreted, or NYCEDC’s contractual agreement with the operator of NYC Ferry Terminals has been misunderstood,” D’Ascoli wrote. .
Asked for comment, Mr. de Blasio said he had not reviewed the full report and its 11 recommendations. The development consortium has agreed to a number of proposals, including soliciting a bid for a new system operator that could replace Hornblower when their contract ends next year. But it denied paying more than $12 million to Hornblower, which the investigator calculated based on its audit.
Mr de Blasio said in a prepared statement: “If there is an issue with underreporting at the EDC, or by ferry operators, that needs to be fixed and any accountability or improvement. the necessary way must be passed. “The continuation and growth of the ferry system is very important to New York City. We need more affordable, accessible transit options connecting the five counties now more than ever. “
Meanwhile, Mayor Eric Adams said through a spokesman that his administration is “deeply aware that there is room for improvement,” adding that his staff is working on a plan to ensure ensure that the ferry system is financially sustainable and more accessible to those who need it.
The ferry system, which is heavily subsidized by the city but often caters to more affluent passengers, has been the focus of Mr. de Blasio during his two-term mayor. In 2015, he revealed plans to spend more than $325 million on a fleet of new-build ferries and docks — but by 2019, those costs have almost doubled.
According to the Citizens Budget Committee, a nonpartisan, nonprofit civic organization, New York’s ferry system is estimated to have one of the nation’s highest per-trip transportation subsidies of $9.34versus $1.05 for the subway.
And Roses are also found that the average allowance per passenger for the first year of the system’s operation in 2017 was $10.73, far more than the de Blasio administration’s initial estimate of $6.60.
The investigator’s new report estimates that the grant is $12.88 in fiscal year 2021.
As a result of the audit, the development consortium accumulated $758 million in ferry-related costs between July 1, 2015 and December 31, 2021, but reported only $534 million in costs.
The executive’s office said some of the development group’s decisions cost millions of dollars in unnecessary costs, including buying ships at above-market costs.
In one case, the audit said, the development corporation ordered and paid Hornblower $8.4 million for a Rockaway Class model but instead received a River Class model, which the agency later determined. for $5.6 million. EDC never asked Hornblower to repay the $2.8 million difference.
In a prepared statement, a Hornblower representative said the company has “continuously worked to provide quality transportation options at affordable fares while expanding the ferry system,” and noted that it had returned $1 million in scheduled payments from the city while passenger numbers decreased during the epidemic.
Hayley Richardson, a spokeswoman for Transit Center – an advocacy organization for urban public transit – said the city should reduce subsidies for the ferry system, urging officials to use the savings. to improve bus service, mainly used by low-income people who don’t have a car and live far from the subway.
“According to Comptroller’s damned report, Mayor Adams needs to direct the EDC to seek an extensive bidding process when the Hornblower contract expires in 2023, while also increasing disclosure and transparency in the contract, ,” she said, noting that a stronger bus network “would have a much larger impact on improving transportation outcomes and accessibility for everyday New Yorkers.”
Kirsten Noyes Contributing research.
