Contract for Top Taveras Staffer Violates City Rules
Thursday, May 01, 2014
Providence Mayor Angel Taveras awarded his now former director of administration and acting chief of staff, Michael D’Amico, with a $200-an-hour city consulting contract without following the city rules for contracting services, GoLocalProv has learned.
D’Amico left his $196,000-a-year position at City Hall on March 14. While still a full-time employee, he negotiated a contract that allows him to work as an independent consultant on the 2015 city budget at a “discounted” rate of $200, according to a copy of the contract obtained by GoLocalProv through a public records request. The document, which was dated February 27, was signed by D’Amico, Taveras, and Jeffrey Padwa, the city solicitor.
The contract expires in June but can be extended for another six months. It does not cap the amount that the city can pay D’Amico. Under the contract, D’Amico can also be reimbursed for any travel expenses, including parking.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to the city charter and city ordinance, any purchase of services between $500 and $5,000 must be made by the director of public property by going out to bid. Any purchases worth $5,000 or more also must go before the Board of Contract and Supply. But a review of the agendas for the past six months of meetings showed that D’Amico’s contract was never considered by the board.
“I think it’s wrong,” said state Rep. and former Councilman John Lombardi, adding that there should be a revolving door provision barring former employees from benefiting from city work for at least a year. “Apparently this administration doesn’t care.”
When contracts are awarded without a bid, they must also be approved by the city council, according to Councilwoman Sabina Matos. That did not happen, she said. “I think that contract should have gone out to bid. It’s in violation of our ordinance right now,” Matos said.
Exceptions to contract rules allowed only for ‘emergencies’
The city charter makes an exception on the competitive bidding rule for “emergency purchases,” which it defines as “an unforeseen situation, requiring immediate attention in order to safeguard the welfare of the people of the city, and one which renders the process of competitive bidding impractical or impossible.”
D’Amico’s two-page contract with the city makes no allusion to any such “emergency” circumstances. Under the agreement, D’Amico will be helping in preparing the 2015 budget and “other related activities.”
Councilman Kevin Jackson found that language puzzling. “Don’t we already have a director of administration and a director of finance to do that?” he said. (Before his departure, the city announced that Finance Director Larry Mancini would also exercise the duties of finance director.)
Jackson said he found it “strange and ironic” that an administration committed to transparency had bypassed both the council and the Board of Contract and Supply in awarding the contract. “In this case, there’s zero transparency,” Jackson said. “Transparency to me means everything is open.”
Matos, who had not even seen the contract until a reporter showed her a copy, is calling for the administration to appear before the council to explain itself.
Under the city charter, any purchases or contacts for supplies, materials, equipment, or services that is “contrary to the provisions of this Charter” will be “void and of no effect.” The charter also stipulates that those responsible for the contract will be personally liable for the cost. If the city has already made payments on the contract, “the amount may be recovered from such person or persons in the name of the city in an appropriate action.”
Jackson said the administration may think its action is justified because the money for D’Amico’s contract is coming out of the Mayor’s budget—although the charter does not appear to make an exception for that.
“It is completely out of the normal process as to how to handle this type of contract,” Matos said.
D’Amico credited for role in fiscal crisis
A city spokesman refused to answer any questions about the contract—including whether the city went out to bid for the work.
Previously, Taveras has touted it as a way to maintain continuity during a transition period.
“I am very proud of the work we have accomplished to address Providence’s Category 5 fiscal hurricane and put our city on firm financial ground. Michael’s continued work as a contract consultant to the city will assure a seamless transition to new leadership in the Mayor’s Office as we prepare the FY15 budget and continue our daily focus on moving Providence forward,” Taveras said, in March 3 news release announcing D’Amico’s departure.
D’Amico and Taveras are childhood friends and attended Classical High School in Providence together. D’Amico has served as director of administration since Taveras came into office in 2011. He also took on the role of chief of staff after J.R. Pagliarini left City Hall for a job at the Economic Development Corporation. Prior to his tenure in City Hall, D’Amico was the vice president and general manager for the U.S. Division of Johnson Matthey Emission Control Technologies.
One city councilman defended the contract, saying it was a good idea to retain D’Amico as a consultant.
“Mr. D’Amico, in my opinion, has been a great asset to the city. He helped us to get through this fiscal storm,” said Councilman Michael Correia. “I would support the Mayor’s decision to retain Mr. D’Amico.”
But, Correia added, he would have an issue with administration not following the proper procedures for awarding contracts.
Mayoral candidates speak out
Several candidates for mayor also expressed concern over the contract.
“This is the problem with city government of years, the ‘old boy’ network, where you need to know someone to get something done. These types of insider deals have ruined the Providence Economic Development Partnerships and led to grossly inappropriate tax stabilization gifts and led to city contracts with candy-like pensions,” said GOP candidate Dan Harrop.
“There was no reason not to put this through the normal process: if Mr. D’Amico was so good and Mayor Taveras thought he was so good, then why not just hire him all on the up and up and let the public know before the contract is signed,” Harrop added.
If elected, Harrop promised not only to “avoid such insider deals” and follow all applicable ordinances but also to go out of his way to make sure the public has an opportunity to fully review and comment on any special contracts.
Two other mayoral candidates, both Democrats, stopped short of condemning D’Amico’s contract, but said that they are committed to ethics and transparency in city government.
“While I don’t feel I have enough facts about the situation to make an informed opinion, ethics and transparency are a priority for me,” said Jorge Elorza. “I was the first and only candidate to take a comprehensive ethics pledge, and if elected, my personal commitment will be to ensure a fair and responsive government that works for all residents.”
“I respect Mayor Taveras and his work at City Hall,” added Lorne Adrain. “I have yet to hear from him or the City Council about the process that led to this contract and until I do, I’ll reserve final judgment about this specific matter. However, the perception and sometimes reality that political insiders receive preferential treatment in Providence is incredibly harmful to our city and has to change. I’ve pledged as Mayor to build an open government based on integrity and transparency accountable to the people of Providence.
A third candidate, Brett Smiley, declined comment, and City Council President Michael Solomon, also a candidate in the race, did not respond to a question for comment.
Stephen Beale can be reached at [email protected]. Follow him on Twitter @bealenews
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