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Multiple speakers raise procurement and spending concerns over Syracuse payroll modernization and IT contracts
Summary
Several residents and local IT firms told the council they are concerned about the city's IT spending, contractor selection on a payroll modernization project and contracts awarded to out-of-area vendors.
Several public commenters at the Syracuse Common Council hearing urged the council to investigate city IT spending, vendor selection and contracts tied to a payroll modernization project.
Why it matters: Commenters alleged the city has greatly increased IT spending in recent years, that procurement and subcontracting around the payroll modernization project were opaque, and that local businesses were excluded from meaningful participation. The payroll modernization work and associated contract services represent millions in potential city spending and implicate procurement oversight.
Susan Fahrenkrug, who identified herself as "the owner and president of Advanced IT" and said she is "also the whistleblower," described a sequence of procurement decisions she said left her firm excluded from the payroll modernization project after initial collaboration. "The city got a $2,000,000 grant from the state for a software upgrade for timekeeping, scheduling, payroll and HR," Fahrenkrug said. She told the council the city initially attempted to perform upgrades internally, then solicited an RFP that CherryRoad Technology won for early phases, and later awarded additional contracts to subcontractors that excluded Advanced IT.
Other speakers described rapid growth in IT budget lines and asked for clearer itemized spending. Jody McDonald summarized historical equipment spending and said the equipment line jumped from roughly $28,000 per year (2010—14) to about $493,000 in 2015, and again to roughly $1,000,000 in 2020. "If the City is not spending the money on hardware or servers, then what is it spending it on?" she asked.
Kyle Warford, who identified himself as an IT professional, said the payroll modernization project coincided with a jump in contract services and cited a figure he attributed to an IT budget meeting: "Since the payroll modernization project, per Dave ProAct cost the City $8,000,000. He said that during the IT budget meeting," Warford said. Warford urged the council to require an itemized breakdown of IT spending.
Several commenters questioned the qualifications of some subcontractors. Michael Aminat said Deer Island Bait Company, a vendor he described as having closed its retail business in 2021, received city work in 2023 despite lacking local business insurance at the time. He asked who reviewed vendor qualifications and whether waiving the bid process exposed the city to risk.
Advanced IT representatives also said the city encouraged a collaboration with a large firm that ultimately supplanted Advanced IT as a contractor. Adam Empey said Advanced IT was approached as a potential collaborator and then excluded when the city awarded the payroll modernization contract to CherryRoad Technology.
Speakers asked the council to demand oversight, itemized spending and public answers on procurement decisions; no formal action was taken at the hearing.
