Elorza’s Spending Binge on Attorneys Draws Fire — See Which Firms Raked in the Most
Tuesday, January 17, 2017
The spending binge by Mayor Jorge Elorza on outside legal contracts is drawing questions. A GoLocal investigation found that legal fees paid by the Elorza Administration to outside law firms "have exploded — up more than 100 percent and now have hit two million dollars a year. Correspondingly, the Elorza campaign has raised more than $160,000 from a variety of law firms in and around the city."
SLIDES: List of Firms That Have Made the Most with the City of Providence BELOW
Despite the City Charter requiring expenditures of more than $5,000 to be reviewed and approved by the City’s Board of Contract and Supply, the Elorza administration has ignored the requirement — which former Mayor Vincent “Buddy” Cianci adhered to during his time as Mayor.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTCouncil President Luis Aponte voiced concerns about the Elorza Administration circumventing the process, to pay for outside legal assistance.
“If there are not the skill sets internally, then we need to understand how to bring these skill sets in, but it has to be a deliberate and articulated process, and the department has to come before the Board of Contract and Supply or the [City] Council," said Aponte, of the city's decision to utilize outside legal help. "It can't be that it appears that there's no rhyme of reason [for going outside]."
The Elorza Administration's expenditures on outside lawyers have not decreased the cost of supporting the city’s in-house legal department — those costs too have risen under Elorza and now top $3 million annually for salaries and benefits.
In contrast, in Angel Taveras’ last full year as Mayor, total fees paid to outside law firms were just over $1 million.
“The main issue for me has been requesting information and the city failing to provide documents to show the hourly rate and the number of hours [for outside lawyers] -- how many attorneys and what they were doing, things like that," said Jim Lombardi, the City of Providence’s Treasurer, who has questioned the city's use -- and payment -- of outside counsel. "Then the city says, "We're only following the original contract."
“I have no problem saying I have raised this issue of this needing to go to [the Board of] Contract and Supply, or to the [City] Council on outside funding, especially if it's over and above what is budgeted," said Lombardi.
Legal Fees, Campaign Contributions
Hundreds of thousands of legal fees have gone to firms that have donated tens of thousands to Elorza.
The firm, Roberts, Carroll, Feldstein & Peirce, is led by Ed Feldstein who is also the chair of Elorza campaign committee. Feldstein and his wife have hosted a number of fundraising events for Elorza including a $1,000 per person event at their East Side home.
Roberts, Carroll, Feldstein & Peirce were paid $17,751.46 in legal fees under Taveras’ administration in the last full fiscal year. Members of the firm and their spouses have donated roughly $14,000 to the Elorza campaign. During Elorza’s first full budget year the legal payments from the City of Providence to the firm jumped to $83,644 — a 470 percent increase in billings to the firm from Taveras to Elorza.
Similarly, as previously reported, Donoghue, Barrett & Singal has seen legal fees increase from $93,960.70 during Taveras’ last full year to $721,144.46 in Elorza’a first full year — an increase of more than $700,000. Correspondingly, members of that firm or their family have donated more than $10,000 to the Elorza campaign.
Over the past three full fiscal years — 2014 to 2016, Donoghue, Barrett & Singal has been paid more than $1.3 million in fees of which more a million of it derives from a variety of assignments under the Elorza administration, including the Buck pension legal action and the Board of Canvassers recall case involving Councilman Kevin Jackson.
"I think there is absolutely an argument about transparency that needs to be settled for a whole series of reasons," said Aponte. "People need to be assured that anyone who receives a contract is getting it on their ability to competitively bid -- and that perception that contracts are awarded for reasons other than that needs to be put to rest."
Related Slideshow: Law Firms that Raked in the Most in Fees from the City of Providence 2017
See which firms have been paid more than $100,000 from fiscal year 2014 through the first four months of fiscal year of 2017.
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