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SUPREMECOURTOFTHESTATEOFNEWYORKCOUNTYOFBRONX: a r t IA- 1~- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -----XTHEWESTCHESTERSQUARE/ZEREGA Index #260573/09IMPROVEMENTORGANIZATION, NC.,JOHNBONOZIO, ANDILUSK,HANNAHACAMPORA n d JOHN IU , o m p t r o l l e r OfThe C i t y OfNew ork, Motion C a l .#

P l a i n t i f f -P e t i t i o n e r ( s ) , Motion Seq.#DECISION/ORDER

- a g a i n s t - PursuantTo P r e s e n t :Hon. e o f f r e y WrightSETHH IAMOND, ommissioner Of he Judge, Supreme CourtNew ork C i t y Department of HomelessS e r v i c e s , THECITYOFNEWYORK,SAINTSTOWERLLC nd "JOHNDOE"and"JANEDOE,"

Defendant-R e s p o n d e n t ( s ) ,- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -----X

R e c i t a t i o n , a s r e q u i r e d by CPLR 2 1 9 ( a ) , of h e p a p e r s c o n s i d e r e d i n t h e review oft h i s Motion t o : compel d i s c o v e r y

PAPERS NUMBEREDN o t i c e of e t i t i o n / M o t i o n , A f f i d a v i t s & ~ibits Annexed 1Order t o Sho w Cause, f f i d a v i t s &ExhibitsAnswering A f f i d a v i t s & ~ i i b i t s Anne xReplying A f f i d a v i t s&~ i i b i t s AnnexedOther (Cross- motion) &Exhibits Annexed 2S u p p o r t i n g A f f i r m a t i o n 3 , 4 , 5 , 6 , 7 , 8

Upon t h e f o r e g o i n g c i t e d p a p e r s , t h e D e c i s i o n / O r d e r on t h i s Motion i s a s f o l l o w s :T h i s proceeding began with h e r e a c t i o n of h e P e t i t i o n e r s t o c o n v e r s i o n on a u i l d i n g

a d v e r t i s e d a s n e w l u x u r y r e n t a l p r o p e r t y t o a s h e l t e r f o r homeless f a m i l i e s . When w asc o n f r o n t e d by h i s i s s u e , I h e l d i n f a v o r of h e P e t i t i o n e r s , d e t e r m i n i n g , a f t e r argument, h a tt h e u s e of e n t a l of h e a p a r t m e n t s f o r t h e s h e l t e r i n g of homeless a m i l i e s r a n c o u n t e r t o t h ep r e v a i l i n g C i t y r u l e s f o r c e r t a i n e x p e n d i t u r e s . The e t i t i o n e r s have now ad h e o p p o r t u n i t yt o depose t h e Respondents, and now ov e o r a d e c l a r a t i o n t h a t h e p r o c e d u r e employed i nt h i s i n s t a n c e i s a i o l a t i o n of i t y r e g u l a t i o n s . For t h e r e a s o n s s e t f o r t h below, a g r e e w i t ht h e P e t i t i o n e r s , . n d . so h o l d :

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The h i s t o r y of h e f u n d i n g of h e homeless s h e l t e r i n q u e s t i o n i s s u f f u s e d w i t hs u b t e r f u g e , d o u b l e t a l k and, e v a s i o n . The c a s e began w i t h a n a p p l i c a t i o n by l o c a lo r g a n i z a t i o n s u p s e t b y h e opening of h e l t e r f o r h o m e l e s s f a m i l i e s i n what wa s d v e r t i s e dt o t h e p u b l i c a s a u x u r y r e n t a l r e s i d e n c e . Local p p l i c a n t s complained of e i n g t u r n e d a w a ywhen h e y m a d e i n q u i r i e s about e n t i n g a p a r t m e n t s . N o t w i t h s t a n d i n g t h e u s e of h e t e r ml u x u r y i n p u b l i c i z i n g t h e n ew b u i l d i n g , t h e Department of Homeless S e r v i c e s ended u pp a y i n g more h a n t h e g e n e r a l p u b l i c would have a i d i n r e n t s .

The Department of omeless e r v i c e s d e f e n d s t h i s p r o c e e d i n g on h e ground h a t i ti s a b s o l v e d of ompliance w i t h t h e procurement of r o v i s i o n s of 10(1) f h e C i t y C h a r t e ra n d PPB Rule 1 -0 2 ( a ) , b e c a u s e t h e a r r a n g e m e n t m a d e c o n c e r n i n g t h e a p a r t m e n t s u s e d t ohouse o m e l e s s f a m i l i e s d i d n o t i n v o l v e t h e p u r c h a s e of oods r s e r v i c e s t o be a i d f o r o u tof h e C i t y t r e a s u r y o r o u t of oney under h e c o n t r o l o f , o r a s s e s s e d by r c o l l e c t e d by h eC i t y ( c i t i n g C i t y C h a r t e r 31 0 1 ( 1 ) ) . Whence ometh, nce might s k , h e f u n d s u s e d t o c o v e rt h e checks w r i t t e n t o t h e l a n d l o r d o r co mmu n i ty e r v i c e i n q u e s t i o n ?

O b v i o u s l y h e r e , t h e r e i s an i n t e r n e c i n e d i s p u t e o v e r t h e i n t e r p r e t a t i o n of h e C i t yc h a r t e r p r o v i s i o n s f o r procurementof e r v i c e s . As e n e r a l p r o p o s i t i o n ,"[W]here a t a t u t ei s s u b j e c t t o i n t e r p r e t a t i o n , t h e c o u r t w i l l i n g e n e r a l d e f e r t o t h e c o n s t r u c t i o n g i v e n t o i t byt h e agency e s p o n s i b l e f o r i t s a d m i n i s t r a t i o n , a s l o n g a s t h e c o n s t r u c t i o n i s n o t u n r e a s o n a b l eo r i r r a t i o n a l(23REALTYASSOC. . TEIGMAN, 1 3 A.D.2d 306, 08, 24 N.Y.S.2d 155 1 s tDept.1995] . The p i n i o n of h e C i t y C o m p t r o l l e r , who s r e s p o n s i b l e f o r t h e a d m i n i s t r a t i o nof h e C i t y e x c h e q u e r i s t h a t t h e Department of omeless S e r v i c e s h a s a c t e d o u t s i d e of t sa u t h o r i t y b y n t e r i n g i n t o c o n t r a c t s f o r h o u s i n g a nd e l a t e d s e r v i c e s w i t h o u t complying i t ht h e C i t y C h a r t e r s . I n t h i s ba c k o r t h , I f i n d myself n agreement i t h t h e C o m p t r o l l e r , a s t h er e s p o n s i b l e e n t i t y , a nd a l s o h o l d t h a t t s o p i n i o n i s n e i t h e r i r r a t i o n a l n o r u n r e a s o n a b l e . TheRespondents d o n o t c o n v i n c i n g l y c h a l l e n g e t h e n o t i o n t h a t t o s u p p l y h o u s i n g i s t o s u p p l y as e r v i c e [CITYOFNEW OR K . SMART PARTMENTSLLC, 9 Misc.3d 221, 5 9 . Y . S . 2 d890, 0 13 N.Y. l i p Op . 3054, a r a n s i e n t r e s i d e n t s a onsumer of onsumer oods n d / o rs e r v i c e s ."] he a m i l i e s i n s t a l l e d i n t h e S t . P e t e r s h o u s e , were t t h e l e a s t t r a n s i e n t r e s i d e n t s ,i f n o t more, o n s i d e r i n g t h e p l a n f o r t h e b u i l d i n g . I f o n g o r s h o r t term h o u s i n g i s a e r v i c e ,t h e n c o m p l i a n c e w i t h a p p l i c a b l e procurement u l e s s r e q u i r e d . I n t h i s c a s e , b o t h t h e o r i g i n a lp e t i t i o n e r s a nd h e C o m p t r o l l e r a r g u e t h a t h e Department ofHomeless e r v i c e s m a d e e r t a i nimproper e p r e s e n t a t i o n s a t t h e b e g i n n i n g of h e p r o c e e d s t h a t were roved n t r u e . I so foundi n my econd d e c i s i o n , a f t e r f i r s t co mi n g d o w n n fa v o r of h e R e s p o n d e n t s . My hange ofh e a r t wa s b a s e d on h e a c t i o n s of h e R e s p o n d e n t s , n o t t h e i r r e p r e s e n t a t i o n s .

I f i n d t h e h a i r s p l i t t i n g by h e Respondents o be t r a i n e d . I c h a l l e n g e t h e R e s p o n d e n t s ,t h e o p e r a t o r s of t : P e t e r s , t h e program h i r e d t o o v e r s e e t h e r e s i d e n t s of S t . P e t e r s , t od e s c r i b e t h e d i f f e r e n c e between h e per diem p e r i o d of p e r a t i o n a n d h e c o n t r a c t p e r i o d .A l s o , i n t h e c o n t e x t of h i s p r o c e e d i n g , i t i s i m p o s s i b l e t o i g n o r e t h e b l a c k op t e n o rs u r r o u n d i n g t h e f o r m a l i z a t i o n of h e agreement w i t h S t . P e t e r s . The a t t o r n e y f o r t h eC o m p t r o l l e r a d v i s e d i n open o u r t t h a t t c o u l d n o t , a s I s u g g e s t e d , c u t o f f h e money u p p l ywhen t i s d i s s a t i s f i e d w i t h t h e s u b m i s s i o n by h e R e s p o n d e n t s .

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The Respondents, having o f f e r e d , i n d e f e n s e o f h e i r a c t i o n s , r e a s o n s why h e C i t yC h a r t e r does not p p l y , f f e r s n o examples o fwhen t s r e q u i r e m e n t s must be d h e r e d t o . Toa c c e p t t h e Respondents' iew, o r o c e d u r e i s n e c e s s a r y b e f o r e committing h e C i t y t o l o n gterm, o t e n t i a l l y budget e s t r o y i n g e x p e n d i t u r e s . In e s s e n c e , h e Department o f omelessS e r v i c e s ha s m a d e t s e l f a i t t l e l i k e a CI A b l a c k op, p e n d i n g unbudgeted funds w i t h o u ta p p a r e n t r e s t r a i n t . I i n d t h e a t t e m p t s a t h a i r s p l i t t i n g by h e Respondents o be n p e r s u a s i v e .To c c e p t t h e i r arguments would be o v i t i a t e , i f not n n u l t h e C i t y C h a r t e r . The motion o ra e c l a r a t i o n t h a t h e procedure o l l o w e d i n t h i s i n s t a n c e i s c o n t r a r y t o s t a t u t e i s g r a n t e d . TheC o m p t r o l l e r ha s c o g e n t l y s e t f o r t h a v i a b l e p r o c e d u r e a l r e a d y i n e x i s t e n c e f o r emergencyprocurement. There s n o r e d i b l e e x p l a n a t i o n a s t o why h e Respondents p p a r e n t l y m a d en o e f f o r t t o m ake u s e o f t h e emergency procurement p r o c e d u r e s r e f e r r e d t o by t h eC o m p t r o l l e r . The a s e s e~ibited by h e C o m p t r o l l e r e v i d e n c e a r o m p t e s p o n s e time whenr e c o u r s e t o t h e emergency procurement system i s employed.

I n sum, h e n , h e Dept.Of omeless e r v i c e s circumvented s t a b l i s h e d r u l e s f o r t h efunding o f t s a c t i v i t i e s w i t h o u t a n c c e p t a b l e e x c u s e . I t h e r e f o r e d e c l a r e t h a t t h e p r a c t i c e ofe n t e r i n g i n t o housing/ s e r v i c e agreements o r c l i e n t e l e i s c o n t r a r y t o law, nd not excused bya l l e g e d l y e x i g e n t c i r c u m s t a n c e s .

This o n s t i t u t e s t h e d e c i s i o n a nd o r d e r o f h e C o u r t .

Dated: May 1, 01 3GEOFF'R~Y .~VR~GH1'A~ ~

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