Majority of Monroe County Legislature threatens subpoena action vs. Bello

A majority of Monroe County legislators — the 13 Republicans and two Democrats — are threatening to start the subpoena process against County Executive Adam Bello if his administration doesn’t produce what they perceive as necessary documents regarding the alleged mismanagement of federal funds by a Rochester nonprofit.

The Republican Conference led by Steve Brew and Democratic Party legislators Rachel Barnhart and Mercedes Vazquez Simmons sent separate letters to the Bello administration on Friday.

They’re demanding answers and documents regarding the contract between the county and Community Resource Collaborative for distribution of $1.1 million in American Rescue Plan Act funds to local nonprofits.

Brew’s letter asked for an explanation as to why an outside agency such as the CRC was even necessary, and why the county was incapable of distributing the funds itself, adding that the Republican Conference has “grave concern” regarding reports of fraud surrounding ARPA funding and the CRC.

“As County Legislators, we have a duty to ensure that the residents of Monroe County can trust that their tax dollars are being used appropriately and in accordance with the law,” Brew said in his letter.

He called into question the county’s “financial oversight integrity” and said the legislature must be provided with details, documents and answers to a laundry list of questions in order to “prevent such a disaster from occurring again.”

Barnhart and Vazquez Simmons said the administration “has been deficient in providing detailed information to all members of the County Legislature.”

For subpoenas to be issued, at least 15 legislators would need to be in favor.

How the $1.1 million in ARPA funding was spent came into question over the past two months when several charitable organizations said the CRC failed to provide required reimbursement for their community work. The CRC’s apparent failure to distribute funds jeopardized the ability several organizations to provide services.

In response to growing concerns, Bello suspended the county contract with the CRC in January, ordered an internal audit and sought possible temporary solutions to assist impacted organizations. The CRC has since suspended operations.

Barnhart, in an email Friday morning, said the Bello administration “refuses to brief me and (legislature) Vice President Vazquez Simmons about the scandal, but will speak to the legislators who they believe will help protect them against an investigation led by the legislature.”

She said the administration has constructed its own timeline regarding all dealings with the CRC “instead of just giving us all communications and financial records that we requested.”

County communications director Gary Walker said the administration will respond to the legislators in the coming week.

“The county administration remains committed to a thorough and transparent response to this issue,” Walker said in an email. “Upon learning of the concerns regarding the CRC, we immediately notified the public, initiated a forensic review by independent auditors, and contacted law enforcement. We have also briefed legislators and provided records in response to requests for information from the legislature.”

The CRC’s application to the county’s 2022 Request For Proposals to become the facilitator for the ARPA funding received a high score (95 of 100). The only demerits on the 20-item grading scale were for lack of MWBE participation and (a score of 1 with 5 being highest) and cost per affected resident (4 of 5).

But the organization, founded in 2021 and lacking a significant track record, was deemed to be high risk and, per county guidelines, was to require more stringent oversight.

Barnhart and Vazquez Simmons have demanded:

• To know whether the county has terminated the contract with the CRC.

• Documents regarding CRC income and expenses related to the grant agreement with the county, which was a requirement of the contract.

• Quarterly CRC progress reports provided to the county, another requirement of the grant agreement.

• All records regarding the CRC and its contracts with member organizations.

• Evidence of false statements or claims made by the CRC, which the Bello administration claims were made.

• To know whether a contract with a new grant facilitator will allow only a small percentage of funding (10 percent, Barnhart and Vazquez Simmons say) to go to intended populations while the majority of money goes to staffing, expenses and overhead.

• Which members of the Bello administration “selected CRC as a vendor despite its high risk designation,” and all documentation regarding the decision.

The Republic Conference demanded similar answers, and had questions of their own, including:

• Why the county didn’t consider it a conflict of interest that Tina Paradiso, the since-fired executive director of the CRC, was allowed to oversee the nonprofit while her own company, Imprintable Solutions, would receive “partial funding through the CRC?”

• What was included in the “neighborhood outreach supplies that the CRC budget proposal said it would purchase for $45,000?

• What items were included in the $30,000 budgeted for “snacks, swag/incentives supplies” for the CRC?

• What exactly the $225,000 budgeted for “credibility trust/brand value” included?

• An explanation as to why “10 percent de minimis indirect cost rates(s)” constitute nearly a million dollars, their purpose and who/what they were to be directed to.

• Why the Fiscal Sponsor Administrate Cost Rate in the agreement was nearly $341,000 for a passthrough agency?

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