Providence Treasurer Says Effort to Pay City Councilor’s Brother’s Firm Over $300,000 Is Illegal
Wednesday, May 25, 2022
GoLocal has secured a copy of an email sent by the Providence City Treasurer to all the members of the Providence City Council outlining an attempt by Jorge Elorza’s administration to pay more than $300,000 for alleged work that was never approved by the city.
The email from James Lombardi, who serves as both the City of Providence’s Treasurer and the acting chief of staff to the Council, states, “I would like to bring to your attention a disturbing and ongoing situation. As you know, the Internal Auditor provided a report to the Council about the lack of procedures in violation of the City Charter and Code of Ordinances for not following City Procurement for a towing vendor. This report is a follow-up identifying a joint report that the Internal Auditor and I prepared to identify problems with City Procurement.“
The vendor -- State Towing -- is operated by Michael Salvatore, the brother of sitting Providence City Councilor David Salvatore, who is term-limited and has announced he is running for State Senate.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTDavid Salvatore did not respond to request for comment.
Lombardi writes, "At the Board of Contract and Supply, the Department of Public Safety put on the agenda a request to pay the Towing vendor $308,951.00. This payment was never bid and was well above the budget. Towing in the City for the last 10 years is approximately $50,000 a year total. To be clear this is the amount over budget.”
“I understand that departments make mistakes but when the administration warned the Commissioner’s Office in October of 2021, they continued to hire the vendor without bidding it out through the Board of Contract and Supply. We have towing vendors but this is outside of the normal tows required for public safety reasons,” Lombardi added.
“I want to be clear this is not a vendor issue but an intentional violation of the checks and balances of the City's Internal Controls. I went to a seminar at the Harvard Kennedy School of Government and they stressed the importance of following procedures during a pandemic and the susceptibility to abuse or corruption. I am not alleging this but will say if we don’t follow the Charter, Ordinances, and procedures there will be at a minimum abuse,” wrote Lombardi.
Under the administration of Vincent “Buddy” Cianci, the "tow list" was operated by the whim of the Mayor and tied to a pay-to-play scheme.
According to Lombardi’s Email to Council Members:
At the Board of Contract and Supply, the matter was continued but I asked if we were still using the vendor and I was told by the Commissioner, yes. I have and continue to ask to comply with this Ordinance:
Sec. 21-47. - Form and manner of submission of claims by vendors.
The following procedures must be performed in conjunction with all services purchased by the City of Providence which are emergency orders and/or items not contracted through the advertisement and sealed bid procedure outlined in Charter:
Vendors must submit itemized invoices for payment. The following items will be specifically enumerated on the invoices:
a. Manhours worked.
b. Hourly labor charge.
c. Materials used.
d. Cost of each material.
e. Any other charge.
(2) Department directors, or their designees shall monitor the vendor's work and provide the finance director/city controller and internal auditor with an estimate of manhours worked by the vendor. Estimates of the manhours worked shall be submitted within two (2) working days of the completion of the job.
Why a violation of the Charter? As you know section of the Charter requires all contracts over $5,000 to go to the Board of Contract and Supply. Although the report causes the Department to go out to bid, this is still $300,000 too late. See below:
1007 (c)(1) It shall be the responsibility of the board of contract and supply:
(1) To make all contracts for purchase of materials, supplies, services, equipment and property on behalf of the city, the price or consideration of which shall exceed five thousand dollars ($5,000.00), on the basis of sealed bids solicited through public advertisement in a newspaper of general circulation in Providence, such bids to be submitted, opened and considered in accordance with rules and regulations approved by the board.
(2) To insure before a contract is entered into that there exists sufficient appropriation to pay the cost thereof;
The Code of Ordinances requires
1006 (d) Whenever any purchase or contract for any supplies, materials, equipment or services is made on behalf of the city contrary to the provisions of this Charter or the rules or regulations made hereunder, such order or contract shall be void and of no effect. The person or persons responsible for authorizing any such order or contract shall be personally liable for the cost thereof, and if already paid for out of city funds, the amount may be recovered from such person or persons in the name of the city in an appropriate action instituted therefor.
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