Thursday, June 30, 2011

Five Years Lost on Disaster Recovery Site

Five years ago (FY-2007) NYCERS signed a lease for a site in Long Island City to be used as a backup site for NYCERS in case of disaster at its downtown Brooklyn office.The annual rent is approximately is $375,000.

On June 27, 2011 Karen Mazza, a staff attorney at NYCERS placed a notice in the City Record that NYCERS was soliciting a negotiated acquisition for the demolition and build-out of a disaster recovery data center. The due date is July 8, 2011, a 12 day turnaround. Don't hold your breath.

It took almost five years for NYCERS to move from the lease signing to the selection of contractor to build the data center at the disaster recovery site. In order for the site to be a step up from the current IBM Sterling Forest D.R. program, the site will also have to be built out to accommodate at least 250 employees working alternate shifts. This would allow NYCERS to continue business operations for extend periods of time (i.e.: six months) in the event of a disaster.

It is clear that NYCERS has already wasted $1.6M on lease payments alone, not counting any other associated costs. That money came from contributions from members, retirees, and employers who are stakeholders in the pension fund. It is reasonable to assume that this current effort will fail as has efforts since FY-2007.

As of FY-2010 NYCERS has stopped reporting a detailed reconciliation of budgeted and actual expenses to the trustees. Needless to say, the trustees don't seem to care.

No comments: