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MEMO ENDORSElrarch 3,201r---__----,
BYHAND
TheHonorableRichardM. Berman
p3
UnitedStatesDistrictJudge
SouthernDistrictof NewYork
DanielPatrickMoynihanCourthouse
500PearlStreet
NewYork,NewYork 10007
Re: UnitedStatesv. DistrictCouncil,etal.,90Civ. 5722(RMB)
DearJudgeBerman:
f[JI
JlW
CHAMBERSOF
RICHARD M. BERMAN
U.S.D.J.
Aspartofaninitiativeto affordtheDistrictCouncil(includingitseightaffiliatedlocal
unions)theopportunityto demonstratethatitcansustainthereformmeasuresthathavebeen
implementedandthatitcanconductits affairswithoutpriorapprovalsandthethreatof veto,the
ReviewOfficer("RO")seekstheCourt'sconsent(l)towaiveenforcementofallpriornotice
requirementsplacedupontheDistrictCouncilandlocal unionsbythe StipulationandOrder,as
setforthinparagraphs5.band5.c,and(2)toeliminatethevetoauthoritygiventotheROby
paragraph5.b.iiiof the StipulationandOrder,infavorof theabilityoftheROtoinitiatecivil
contemptorotherenforcementproceedingsinthisCourt. Theproposedchangeswouldbuild
uponthe waiverofthepriornoticerequirementforlocalunionexpendituresunderparagraph
5.b.i.(l)oftheStipulationandOrder,whichtheCourtpreviouslyapproved. Thechangesare
soughtas thefirst stepindevelopingameanstotesttheabilityof theDistrictCounciltoconduct
itsaffairsonapermanentbasisinalawfulmannerandwouldincludetheextensionoftheRO's
tenurethrough2014. Thegradualreductionof oversightbytheROwill facilitateanobjective
assessmentof thesustainabilityof acompliantDistrictCouncil. TheROrequeststhatthis
importantpropositionbeplacedontheagendafor theconferencescheduledtobeheldonMarch
10,2014.
Wesetforthbelowthespecificchangesthatareproposedtogetherwiththejustification.
PriorNoticeRequirements
Paragraph5.b.of theStipulationandOrderimposesanumberofpriornotice
requirementsupontheDistrictCouncil,specifically:
5.b.i.(1): Priornoticeof allexpendituresandinvestments;
5.b.i.(2): Priornoticeof allproposedcontracts,exceptcollectivebargainingagreements;
5.b.i.(3): Priornoticeofall proposedappointmentsto officeoremployment;and
Mintz,Levin,Cohn,Ferris,GlovskyandPopeo,P.C.
BUSTUN IWi\SlllN(:TON INEWYORK ISTAMFORD ILosi\NGhU,S IPALO ALTO IS,\N DIEGO ILONDON IlSRAEL
Case 1:90-cv-05722-RMB-THK Document 1490 Filed 03/04/14 Page 1 of 3
Mintz,Levin, Cohn,Ferris,Glovskyand Popeo,P.e.
March3, 2014
Page2
S.bj.(4): Priornoticeof allproposedchangestotheBylawsandanyotherrules,policiesor
practices.
BasedonhisexperiencesincebeingappointedinJune20 I0,theRObelievesthatthe
DistrictCouncilhasincreasinglyhandledtheseresponsibilitiesinamethodicalandprudent
manner. InordertofacilitatetheDistrictCouncil'stransitiontogovernancewhenhistenure
ultimatelyends,theRObelievesitisappropriatetoaffordtheDistrictCounciltheabilityto
makethesedecisionswithoutpriornoticeandtoallowtimetocarefullyassesstheDistrict
Council'sperformanceinthisregard. TheROfurtherbelievesthattheriskassociatedwith
relaxationof thepriornoticerequirementsisamelioratedbyhisretentionof broadinvestigative
authority(aswellasotherprovisionsof theStipulationandOrder,includingtherequirementof
cooperationwithhisofficeandtheauthoritytocompelaudits),andhisauthorityto seekrelief
fromtheCourttocureanyactthatviolatestheConsentDecree,StipulationandOrderorany
otherOrderofthisCourtapplicabletotheDistrictCouncilandlocalunions.
WespecificallynotethatthereisnoproposaltoamendparagraphS.koftheStipulation
andOrder,governingtheSupervisionandConductof Elections. Thatprovisionremainsinfull
force andeffectand,asrecognizedbytheDistrictCouncilBylaws,willbeutilizedduringthe
electioncyclefortheExecutiveSecretary-TreasurerthatwilltakeplaceinFall2014.
Substitutionof ContemptProceedingsforVetoAuthority
ParagraphS.b.iiiof theStipulationandOrderprovidesthattheROmayveto
expenditures,investments,proposedcontractsorappointmentstoofficeoremployment,if he
determinesthatthemattermeetsoneof theconditionswithinS.bjii.(a)-(e)(e.g., anactof
racketeeringasdefinedin18V.S.C 1961,inviolationo ~ S.b.iii.(a)). Asa furtherpartofthe
gradualreductioninthescopeofROoversightovertheDistrictCouncil,theROseeks
eliminationofthisvetoauthority,andreplacementof itwithauthoritytoinitiatecivilcontempt
proceedingsif, withinhissolediscretion,thecircumstancessodictate.
TheROspecificallyproposesthefollowing: IftheRObelievesanaction,proposed
action,orlackof actionpresentsareasonablebasistobelievethatthemattermeetsoneof the
conditionsspecifiedinparagraphS.bjii.(a)-(e),hewillprovidewrittennoticeto theDistrict
CouncilandtheDistrictCouncilwillhavefivebusinessdaystorespondtotheRO. Ifthe
DistrictCouncilfailstorespondwithinthespecifiedtimeframe,orif itsresponsedoesnot
dissuadetheROfrombelievingthatthemattermeetsoneof theconditionsspecifiedin
paragraphS.b.iii.(a)-(e),orif thematterisnotsettled,thentheROwouldproceedbyfilinga
motionwiththeCourttofindtheDistrictCouncilincivilcontemptanddirectanappropriate
remedy. Anycivilcontemptproceedingwouldbegovernedbyapplicablefederal lawandLocal
CivilRule83.6,ratherthanparagraph11 oftheStipulationandOrder.
Case 1:90-cv-05722-RMB-THK Document 1490 Filed 03/04/14 Page 2 of 3
Mintz,Levin, Cohn,Ferris,GlovskyandPopeo,P.e.
March 3,2014
Page3
ExtensionofRO'sTenure
Asnotedabove,theproposedchangeswouldbedoneinconjunctionwithanagreement
bytheDistrictCounciltoextendtheRO'stenurethroughDecember31,2014. Intheabsenceof
anagreementtosuchextension,theROwillmovetheCourtattheMarch10thconferenceto
extendhistenureforsixmonthsthroughDecember3,2014.
Respectfullysubmitted,

BridgetM. Rohde
ByEmail
cc: AUSAsBenjaminTorranceandTaraLaMorte
JamesMurphy,Esq.
BarbaraS. Jones,Esq.
RaymondMcGuire,Esq.
27142661v.3
"'0 'il>" j '&

RichardM.Berman,U.S.D.J.
Case 1:90-cv-05722-RMB-THK Document 1490 Filed 03/04/14 Page 3 of 3