The Oley Valley School District owes Amthor Steel Inc over $2,000,000. This is the ruling by the American Arbitration Association. The arbitrator awarded 100% damages to Amthor and none to the school district.
This case has been arbitrated and adjudicated since 2004. The legal bills for this action are substantial. The district owed $1,850,200.00 to Amthor but refused to pay. The contractor took them to arbitration as specified in the contract with the district.
The district tried to have the case litigated in the Court of Common pleas, but lost in a hearing. They appealed the verdict and lost again.
The district went back to arbitration and lost once more. These rulings are rarely overturned.
The problem is how the district plans to pay this bill. They did not set enough aside in a special fund. They cannot ask for a waiver from the state to raise taxes about the 4.5% inflation index to pay for judgments. They probably do not have enough money in Capital Reserve to pay the judgment and pay for educational needs, as well.
Every day the $2,000,000 is not paid, interest and penalties are added.
There is a board meeting at the Oley Valley School District Administration Board Room ,Wednesday, December 10th at 7:00 PM.
The administration and the school board owes the citizens of the community an explanation.
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28 comments:
It's a shame that the district used the "Nextel windfall" on the unnecessary running track and astro-turf infield. Add the lights.
How much did that cost??
Now we as residents of the district will be asking questions of the board members, and all we will get in return are blank stares and double talk.
Oley Concerned Citizens has been trying for years to show the board the errors in judgement they have made and combined with the squandering of the taxpayers money, it is time to tell them "WE TOLD YOU SO".
I would think that the 2 million was part of the project budget. Where did it go?
What's next?
Oley school district makes the automotive industry incompetence look like genius. The big difference is that we will not get bailed out. Some heads should roll. Any suggestions?
And now the School District wants to waste more money and try to appeal the Arbitrator Award based on issues they have already litigated and been ruled against on. With interest being added on daily, and more attorney fees...how much is this costing the taxpayers. Let's hope that the Contractor isn't awarded attorney fees!
Didn't you people on here complain that the board was putting too much in reserve, and now you are saying that they weren't putting enough in. I love it when people talk out of the both sides of their mouths.
6:40:
You need to get a clue? You have no idea what you are talking about.
Hopefully this is not the mentality of the rest of the taxpayers, because if it is, Oley is in TROUBLE!
To 6:40pm:
The board and administration could tie kids to the flag pole and whip them and people like you would find a way to defend them. You must be one of three things: a board member or administrator, a close relative of one, or an idiot. Wake up, the coffee smells good.
The district defenders are the ones who feast on our tax dollars. They don't want the gravy train to be derailed.
I would think the $2M was a part of the bond issue to finance the project.
If it was not spent on the steel, where is it? It was earmarked for a specific purpose. Don't think they could have spent that much on coffee and donuts, although that is possible.
There were eight questions asked of the board at their meeting, Wednesday, December 10,2008 regarding the Amthor Steel Inc. lawsuit
The board did not answer the questions. They had the solicitor respond.
1. When was the board notified they lost a $2,000,000 arbitration judgment?
Answer: Approximately seven days after October 22, 2008.
2. When did the board plan to inform the community?
Answer: No plan because the case is under litigation.
3. How much in legal fees has the district paid for this case?
Answer: Does not know. Must file a Right to Know request to the district to get the information.
4. How much money has been set aside to pay the contractor?
Answer: Does not know.
5. If the district does not have enough money to pay the contractor, how do they plan to obtain the money to do so?
Answer: Does not know. He thinks money may have been put aside.
6. Can the district file for the exemption to the inflation index to raise taxes to pay the $2,000,000?
Answer: Does not think so.
7. When did the board make a public vote to continue with the lawsuit?
Answer: They did not make a public vote. They did support the decision in executive session.
8. How much more money does the district plan to spend on the lawsuit?
Answer: Not sure.
When does Oley file bankruptcy and ask for a bailout?
When does Oley file bankruptcy and ask for a bailout?
Those answers are an insult to the taxpayers of this district. They really do think we are a bunch of suckers (maybe we are) that can be made fools of by this board and their solicitor.
When this dispute with Amthor Steel began the board put the funds in dispute into an escrow account. If it is still there why in the world wouldn't the solicitor know that and tell us? If it was drawing interest all these years that would offset much of the legal expenses.
I guess if they want to play their silly games and force someone to file a Right to Know request then that's the way it will be.
The board owes Amthor Steel $2,000,000 so they try to raise the money by refusing to allow the German Club to go on a field trip because it will cost the district $100.00. See how smart they are? Only 19,999 more field trips denied and they will have their 2 million dollars.
Maybe someone should look at the last local audit which is public record or the management letter that goes with it. This should tell you what they are reserving for the litigation.
According to Mrs. McCarthy there is $1.3+ million in the Capital Projects Fund. This isn't even enough to pay the bill in the first place, plus we have the AG project at $800,000 and the gym project at approximately $900,000 and then there is the issue of the new elementary school roof that is needed, with rough estimates given at the board meeting last Wednesday, of approximately $1,000,000.
This total of the arbitration and the above projects is over $4,000,000.
Get ready to get the printing presses rolling and open your wallets.
I can see why a hand full want this blog to shut down. Too many FACTS scare the vested interests.
If it weren't for this blog, we would not know about the situation unless we attended the meeting.
The article in the newspaper seemed to have missed the details of the meeting in regards to the arbitration and the solicitor's comments.
"Shoes On The Head" of the district for getting us in this problem.
Where are all the feel gooders? Usually they are busy defending the board for their lousy decisions. Let them pay the $2,000,000!
At a recent board meeting, the board voted to send 4 administrators and 7 teachers to Washington for presentations on school issues.
At a cost of $1,000 per attendee, the taxpayers will foot an $11,000 bill.
Whether it is a business spending bailout taxpayer money for jets or bonuses or a school district spending taxpayer money on junkets, the wasteful practice makes no sense.
There is no way to objectively calculate any benefit to the district.
Only Mr. Kubitz and Mr. Burns voted against this expenditure.
When is this trip going to happen? By any chance is it at the same time of the inauguration?
Oh; why "of course it is." Reason for asking?
Merry Christmas to everyone and let's hope 2009 will be a healthy, happy and successful year.
If the school districts are looking for money to balance their budgets why don't they take a page from the EPA playbook, tax animals for their CO2 emissions. In this case, we can start with the politicians. They have enough gas to balance budgets for years.
That was a pathetic report on the Oley Valley School Board meeting Wed. evening. The Eagle should be ashamed for putting it in the paper and the reporter should be ashamed for writing it. Does anyone have a real report on the meeting that they could share with those of us who have to work and can't make meetings?
Has anyone heard anymore about the million dollar lawsuit by the steel contractor for construction of the school eight years ago? I heard the school district just lost an appeal and has to pay over 2 million dollars! My understanding is that now the contractor can garnish the school district's bank accounts!
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