bid on building of bus shelters roils city hall

by:YEROO     2019-09-02
Written by LEE dembart1979, this is a digital version of an article in the print archive of The Times, which was published online in 1996.
To keep these articles as they appear initially, the Times will not change, edit, or update them.
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Please send a report of such issues to archid_feedback @ nytimes. com.
The competition for franchises to build New York City bus shelters and sell ads on them generated one of the most painful battles in Town Hall history recently --
The battle is characterized by harsh charges on all sides and pressure from politically influential lawyers and public relations personnel.
Mayor Koch told his colleagues that he was worried that the problem would haunt him for many years.
Politicians say the cause of the city? ? ? ? J.
Golding, who has been severely damaged, hangs on the flat.
New allegations have been brought up, investigated and replaced.
People who are used to operating quietly in government corridors have been brought to the public focus of the competition, and their prize is a contract to operate $20 a year\'s business on the city sidewalk.
In order to discuss the city\'s pending proceedings against the franchise, the mayor said he wanted everything to go public, convincing the estimates committee to hold its first private meeting since the State Council ordered all meetings to be open to the public.
Advertising will happen on 500 existing bus shelters, which is also the fate of the franchise itself, as misconduct by government officials and prominent lawyers is hampered by new allegations.
The allegations are being made by the city\'s Investigation Department, the FBI and;
An American lawyer in Southern District.
Advertising in particular, the investigation is developing the open relationship between corporate lawyers and officials who created shelters in 1975;
Earlier this year, the company denied the franchise by providing the city with a higher percentage of advertising revenue, as well as municipal government officials involved in granting the new franchise.
Construction of glass and steel bus shelters is one of the most recently widely approved urban projects that have caused controversy since Bustop shelters Inc.
The concept of shelter was pioneered in 1975.
Convenience and security firms have won a vote this year from the estimates committee, which has postponed action as the investigating commissioner looks into the matter.
The board\'s vote seems to have solved the problem, but Bustop, since Mr.
Golding and the municipal government decided to conduct competitive bidding for the contract and refused to give up.
It used the Freedom of Information Act to find documents in the city\'s archives and filed a 55-page affidavit containing new allegations, which led to the present
The mayor said earlier this month that he would not approve the contract for convenience and security considerations until all new charges were dealt.
So far, the allegations have produced a lot of smoke but have not caused a fire.
The documents raised serious problems but did not prove the contract;
Granted convenience and security unfairly, the highest bid.
Some officials closely linked to the dispute believe both sides are at fault.
\"I hope we can give them two,\" said a senior City assistant who was concerned about the dispute for one year.
These documents and allegations focus on the way some politicians and lawyers work behind the scenes.
The issues under investigation include those involving State Senator Jack E.
Mr. Brownston from Flushing, Queens wrote him a letter.
Although his law firm represents Bustop, Goldin urges action against Bustop.
Three months later.
Busstop\'s competitors, conveniently and safely retained the brownstone. But Mr.
The Bronston letter has nothing to do with the contract itself.
The central character of the new charge is Mr. Richard Wells.
Golding\'s chief assistant said he served as Auditor General in \"many meetings\" on charter operations at bus shelters. Mr. Wells did so —casting Mr.
Goldin\'s vote on franchise decisions at the assessment committee meeting
He did not disclose that he and his father had more than $300,000 in shares in Reliance Insurance, with Sol Steinberg, chairman of Reliance Insurance, having 45% convenience and security.
Wells said there was no financial link between the two companies and there was therefore no conflict of interest.
The company accused Mayor Kohe of telling his assistant that if
Wells works for him and will ask him to take time off before things are resolved.
The auditor general did not ask Mr.
Mr Wells did so despite being a policy issue.
Goldin neither holds stocks nor bonds to ensure that there will be no misconduct. Mr.
Golding himself has always been the target of cloth stop\'s anger.
The company accused him of suppressing an audit in its favor and issued an adverse audit before submitting the whole matter to a competitive bid, rather than awarding it to the negotiating franchise. Mr.
Golding said he did nothing wrong, but added: \"Perception becomes a reality in public life.
\"The auditor general believes the FBI investigation into the bus shelter incident helped him beat him in last year\'s race to run for the national auditor general. Mr.
Golding also alleged that convenience and security were given an unfair advantage in competitive contracts.
Some officials believe that the winning bidder needs a performance bond of $10 million, and the question remains unanswered.
Because only convenience and safety can raise so much money, is the bidding requirement tailored to not allow others to participate?
The agency\'s answer is that due to the poor performance of Bustop, less than half of the agreed number of shelters are built, so a high margin is required.
But Bustop believes that there are circumstances to mitigate the loss, and the bond is much higher than any similar contract.
The person in charge of many new charges was Willie bouchera, a French entrepreneur who took the bus shelter to New York. Mr. advertising
Bouchara plays the role of a loser who is bullied by convenience and security. Mr.
Bouchara reminded the board that he initially sought a 10-year franchise, but the board members at the time were skeptical that it would not work and they agreed to give him only three years of experimental franchise.
He said influential lawyers took the risk and three years later the board handed over the business to others --
It turned out that someone tried to buy the business from him and then, when it was not for sale, he decided to take it away.
However, despite his poor image,
Politically influential lawyers, rabbit Lindenbaum, who has ties to the Beame government, and the law firm of former Mayor Robert F serve BoucharaWagner.
Howard Rubinstein, close advisor to former Mayor Abraham D.
Beame was brought in too. Mr.
Rubinstein was followed by a public relations officer, John Scanlon, who saw that all the suspicious documents he found in the city\'s documents were reported by the news.
In terms of convenience and security, it has its own influential representation, including the law firms of Paul, Wes, Rifkin, Wharton and Garrison.
And against Mr.
George Dulis is a public relations officer who has been a City Hall reporter for a long time. Mr.
Douris played an important role in the early dissemination of the mayor\'s representative Bustop matchmaking, as a friend of a friend was allegedly interested in the company.
It turns out that the story is unfounded.
The exact value of all these concerns-the bus shelter franchise-is controversial.
No one is willing to admit how valuable they think it is.
Convenience and safety promises 20 in the city.
5% of the 10-year total income, or $25 million, is subject to the larger.
On this basis, the company is expected to complete more than $0. 12 billion in business. Mr.
Douris set the 10-year figure at $0. 2 billion, or $20. million a year.
Convenience ementhowever, president of Convenience and one of the major investors, Henry Silverman, reiterated last week that the real value of the New York franchise is the first step in building a nationwide network of bus shelters and selling a nationwide advertising program.
He said that in such a plan, shelters cost $3,000 each, and New York is crucial to building the credibility of advertisers and other cities. Mr.
Silverman insists that the New York franchise is at best a breakthrough or even a breakthrough, and the company is prepared to serve as a loss leader in the national plan.
The construction and installation of these shelters cost $3,000 each, with an average advertising fee of $400 per month.
They repaid the cost of capital in less than a year.
Convenience and security guarantee the construction of 4,100 shelters throughout the city.
If three of them were to be leased to advertisers at any time, total revenue would be close to $15 million a year.
The fees include insurance, repairs, expenses for selling advertising, and franchise fees charged to the city, which will exceed $3 million.
A version of the file was printed on the first page of The New York edition on March 25, 1979 under the title: a bid to build a bus shelter was held at the Town Hall.
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