24-1597 : Halton-Pope, Nowakowski - Strengthening Financial Accountability and Contract Enforcement Letter

This letter from Majority Leader Halton-Pope and Councilmember Nowakowski addresses significant financial accountability and contract enforcement issues within the City of Buffalo, particularly in light of a severe financial crisis. The letter highlights several problematic contracts:

• Erie Basin Marina Contract (Smith Boys): Despite operating since 2013, Smith Boys has paid only $1 annually in rent, with no audits performed to verify profit-sharing (20% of net profits above $80,000). This oversight may have cost the city hundreds of thousands of dollars.
• Sue’s NY Deli Contract: Operating in City Hall without a valid contract since 2019, this vendor owes $103,200 in unpaid rent, with no payments made since March 2020.
• AMR Ambulance and First Response Services: AMR has not paid franchise license fees since 2020 due to an expired contract, potentially costing the city an estimated $2.5 million in lost revenue over five years.
• Spectrum Franchise Agreement: While fees are being paid, the contract is outdated, necessitating an update to protect the city's long-term interests.

The letter also calls for improved collection of fines and fees, requesting reports from the Department of Permits and Inspections Services and the Law Department on collection efforts and barriers. The authors emphasize that combined revenue losses from these contracts and uncollected fines likely amount to millions over five years, urging immediate action to recover funds and improve contract management and revenue collection policies.