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LDC moves to cut Navitech
Pittsford, N.Y. -- One Local Development Corporation (LDC) at the center of an ongoing criminal investigation took the first steps towards severing ties with Navitech Services Corp.
The President and CEO of Navitech, John Maggio, was among four men arrested and charged last week in a 25-count indictment that alleges crimes including bid rigging, money laundering, conspiracy, and grand larceny.
Navitech was assigned the contracts of two LDCs formed for the purposes of providing services for Monroe County. Upstate Telecommunications Corp (UTC) currently holds a $99 million contract while Monroe Security and Safety Services (M3S) holds a contract valued at more than $200 million. UTC is primarily responsible for upgrading and maintaining the countys communications and technology infrastructure. M3S is primarily responsible for performing the same functions for the countys security infrastructure.
Navitech was assigned both of those contracts and currently employs eighteen people and a number of sub-contractors.
UTCs four-member board met at the Harris Beach law firm in Pittsford Monday afternoon and introduced its newest board member, David Moore. Moore is Monroe Countys Director of Public Safety and a former Rochester Police Chief.
The board spent about 45-minutes behind closed doors in executive session before resuming the public meeting and expressing, on the record, the boards intention to direct lawyers for UTC, Monroe County, and Navitech to work out a termination agreement.
"The motion today was to get the UTC attorney, the county's attorney, to get Dennis Vacco, to get Navitech's attorney all together in a room and figure out the best way to get this done without disrupting services, explained UTC Board Chairman Hank Stuart. We have an obligation to the county to supply services to the county and we have a contract with Navitech to supply those services.
The move by UTC and the board comes in response to County Executive Maggie Brooks call for an end to Navitechs contract. In a press conference last Wednesday former New York State Attorney General Dennis Vacco, who was retained by the county, said his review of the contracts turned up irregularities that warranted the termination of Navitechs contract.
Navitechs lawyer was also present at the public portions of Mondays meeting and explained that his client has no intention of leaving this contract easily.
"It's our position that any kind of termination would be something that would be of a mutual agreement because there are no grounds to terminate this contract, said Michael DiPrima, the lawyer representing Navitech. "We're pretty certain based upon the annual audits and reviews that are done of Navitech's work that there are no irregularities in fact the performance of this contract has been exceptional over the past 7 years.
Democrats from the Monroe County Legislatures Minority Caucus were also present at Mondays meeting and Legislator Paul Haney (D, Rochester) called on UTCs board to be more transparent and respond to Freedom of Information requests his caucus had submitted years ago.
"I know the public wants answers and deserves answers, said Minority Leader Carrie Andrews. As we all know now we're talking about over $300 million worth of taxpayer funds and very little explanation has been provided in terms of what has happened.
On Tuesday afternoon the board for M3S will be present at Harris Beach at 3:30 p.m. for a similar board meeting.