City Drafts Response to State Audit of the BID

The New York State Comptroller’s audit of the Peekskill Business Improvement District (BID) released on Dec. 16, 2010 found that the of not meeting its goals and properly safeguarding cash due to the lack of a written agreement with the city and lack of the city’s oversight of the BID management association. State Comptroller Thomas DiNapoli asked the city to produce a written Corrective Action Plan (CAP) by March 17, 90 days from when the audit report was released.

With three weeks left until the CAP is due back at DiNapoli’s office, Common Council members reviewed and discussed the city’s drafted CAP report at Tuesday night’s four-hour long Special Committee of the Whole meeting.

“We looked at the recommendations, responded and accepted and said what we will do, how we will do it and in what time frame,” City Manager Rick Finn told the Council of the CAP.

The five-page report lists each of the State Comptroller’s recommendations and provides a response. In summary, the city agreed to practice greater oversight of BID operations by creating a written agreement with the BID that details both entities’ roles in record-keeping, safeguarding cash, applying for grants, measuring success and adhering to the city charter and policies. Read the full report here, or find it attached to this article.

Finn explained that he sent the BID management association (Association) the CAP last week and asked members for their comments. Finn said the two major concerns that BID board members expressed were: 1. A concern that the Association would be able to approve a final agreement with the city within 90 days of the CAP’s release because of the BID’s election currently underway and; 2. A concern that it would be difficult to find ways to measure the BID’s success and the cost effectiveness of its activities. 

Finn also said that a board member asked that the city’s code of ethics be incorporated into the agreement with the BID, which Finn said he has already done.

“I read through and didn’t want to take up 45 minutes going through my comments on it, but I have some issues I want us to address,” Mayor Mary Foster said at Tuesday’s meeting.

The Mayor mentioned some formatting issues, but also explained that she wanted to see more specificity in general and more definitive timelines, which led to a decision to have the city’s detailed agreement with the BID to be completed by June 30, 2011, rather than “within 90 days” of the state’s receipt of the CAP.

“If we are going to be held accountable to getting these things done by a specific date (we need to set the date),” Mayor Mary Foster said.

“The first objective is to get this into the state so they know we are committed to do these things,” Finn said of the CAP.

Finn explained he would asked the council to get comments to him over the next few days that he would incorporate into a revision of the draft, which the BID Association would then have another opportunity to review, before it got sent to the State.

The BID is currently holding elections to fill four spots on the board that have become available. Patrick Brown (1007 Brown St.), Jaime Leon (100 North Broad St.) and Jeanette Phillips (1037 Main St.) are running for the three property owner representative spots. With no fourth candidate, these three will become the new board members. Kim Turner (104 S. Division St.), Thom Pernice (109 Central Ave.) and LaFern Joseph (13 S. Division St.) are running for the one commercial tenant representative position.

Voter registration forms have were mailed to BID members: about 159 owners and about 56 tenants, Acting Chairwoman of the BID Jeanette Phillips said. Only those who returned the registration forms and proved eligibility to vote received mailed ballots.

The election meeting will be held on March 1 at 6 p.m. in the DeBart Center Community room.