In 2003, the district was not happy with a contractor, Amthor Steel, during the construction of the Middle School. Instead of resolving a dispute before any further work was performed, the district decided to proceed anyway. Because of this decision, they incurred additional, substantial expenses on the project. Seven years and approximately $400,000 in legal fees later, the Oley Valley School District is mired in a legal quagmire and owes over $2,000,000 to Amthor.
We may be facing another lawsuit. The Reading Eagle reported about broken pipes bursting and ruining the new gym floor. At the March 10, 2010 meeting, the board voted to approve a Motion to hire a contractor to perform testing of the HVAC piping in the Main and Auxiliary gyms. The Motion presumes the testing costs would be deducted from Uhrig, the original contractor. The solicitor states the contract allows them to make this deduction. However, after questioning, it appears that Uhrig may not agree with any deduction.
The solicitor was not sure if the contract calls for arbitration or civil proceedings in regards to a possible dispute.
Neither would the board discuss the total potential cost if the contractor does not agree with the test findings.
Property and Transportation Committee member, Christopher M. Hannum contends that because he estimates the cost is minimal, he does not anticipate any further issues.
Board President, Robert A. Heckman became very irritated that the public would ask questions about the Motion.
The attempts to debunk concerns are contradicted by a Motion phrase “contingent upon the Solicitor’s and Architect’s concurrence” This verbal crafting politically protects them if the cost of proceeding without agreement on liability goes well beyond vague estimates. However, it does not protect the community from wasting more tax dollars on legal fees.
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26 comments:
Any further news on the Amthor Steel litigation? Did they announce whether or not they are going to appeal again? Or aren't we supposed to ask?
The board has not taken a public vote on whether they plan to appeal a ruling favorable to Amthor Steel.
However, court documents indicate an appeal has been entered.
School board meeting is at the Berks VoTech in Oley 7 PM
Any news of interest coming out of the meeting last night? Did they give up on the Amthor Steel lawsuit? Did they trim the budget?
Unfortunately, the board will not publicly vote on spending more money on Amthor Steel appeals.
The Sunshine Law requires a such a vote, but the board with the exception of Mr. Bieber, remains silent on being transparent with the community.
In addition, Dr. Zackon did not answer the question whether money for education was used to pay legal fees.
The district signed a contract to settle disputes through arbritration. They decided not to honor that contract and now the taxpayers are on the hook for at least $400,000 in legal bills, but also $2,100,000 in settlement costs.
The total costs for Amthor so far is $2,500,000.
Each day Oley School District does not pay the settlement amount, interest and penalities are added. The district set aside $1,300,000 for payment.
$400,000 of money lost forever that the taxpayers paid with the understanding it was for education not legal expenses.
If the district is forced to pay the difference between what was put aside for Amthor and what is owed to Amthor, that money for education is lost forever.
Conerned citizens should contact their board members and start asking questions. After all it is your money and your child's eduation at stake.
Reminder to your readers that the May 18th primary election draws closer each day.
We need to elect conservatives like David Maloney from the Oley Valley who will represent us; and not go into office with some personal agenda and ignore the will of the people.
Unfortunately the "will of the people" means nothing in the OVSDbecause the people have no will. Their elected representatives on the School Board are reckless with the Sunshine Law and reckless in their spending of taxpayer dollars to pursue a legal suit that is a lost cause. What is the "people's" response? NOTHING!!
My advice for the Board is to keep spending, keep violating the Sunshine Laws, and keep taxing the people of the OV because the people are too dense to care.
Laptops rearing its ugly head again. The news article mentioned it would cost $30,000 a year to maintain but failed to say what the initial cost would be. Maybe if they had not sqandered all that money fighting Ampthor Steel they could afford it.
This board shows no ability to grasp the current economic environment. Despite high unemployment and higher taxes it's business as usual for the OVSB.
I really like Mr. Bieber's idea to allow student athletes or those who participate in other "vigerous" activities to use gym class hours for real academic classes instead. Why does a soccor player need to waste time playing ring toss or badminton when she could be picking up an extra science or math class? I'm pretty sure gym class is not required by the state anyway? I support this 100%
OVSD Board Meeting Highlights:
By a 6 to 2 vote, the board once again approved spending thousands on Workshops and Conference request by Dr.Zackon.
For $11,158.00, the taxpayers will send a combination of seven teachers and administrators to a model school program.
These trips have dubious value to the students, but the board continues to support this expenditure.
A FS&L representative gave a brief presentation to the board about paying off the interest rate swap arrangement with Wachovia.
The district's interest rate swap involves the exchange of interest rate obligation in return for the option by the bank to require the district to issue certain bonds in 2012.
The representative said it will cost $1,200,000 to implement his recommendation.
They don't have the 1.2 million, they owe it to Amthor Steel Co. I guess that doesn't matter, they will just get it from the taxpayers. No problem.
Mr. Burns and Mr. Bieber voted against the Florida teacher trip.
Tammy Gore is running for state representative. (130th Legislative District) This is the same person who sat on Fleetwood Borough Council and voted to tear down a 30-year-old hometown business, Fleetwood Pizza, to create a walkway that benefited only the property of another private business on the old tannery lot. That business still doesn't exist.
She didn't listen to the more than 200 community members who spoke out at the town hall meeting in December 2007. Why should anyone listen to her now when she says she's going to protect property owners' rights? If she has strong community values, where were those values when the whole community cried out that they didn't agree with borough council's decision.
How convenient it is to claim values very different then her actions indicate. Some stains won't come out in the wash. She doesn't deserve that seat in the house because she can't be trusted.
Lisa Hoimes
Fleetwood
Isn't Fleetwood Pizza still in business on Main Street?
Fleetwood Pizza is still there and fighting for their lives. They were contacted again this week by the borough of Fleetwood to have their property "appraised". The borough has never said they no longer want their property and this action this week is further proof. Tammy Gore is in the middle of this mess. The borough goes months at a time not telling Fleetwood Pizza what their intentions are. Using eminent domain to destroy a 30 year old business in order to make an alley wider is immoral. No common sense. Keep Tammy Gore out of Harrisburg.
Dear 4/30 Anonymous:
What is your point?
Finance Committee Meeting: 5/3/2010
Swap Discussion.
The board is deliberating whether to close out the swaption deal with Wachovia. The price tag will be approximately $1,200,000.
They can finance the close out by adding the $1,200,000 to the end of the new General Obligation Bonds of 2010 created in the termination process.
At some time down the road, they could refinance the 2010 bonds and nearly eliminate the cost.
Otherwise they would have to take $381,000 from Capital Reserve ($1,200,000-$819,000 upfront payment from Wachovia).
Removing $381,000 from Capital Reserve would have the effect of forcing real estate taxes up.
2010-2011 Budget:
At this point, the budget will raise taxes .70 mills or $70.00 per $100,000 of assessed value.
The business manager said the Homestead reduction from state gambling proceeds may be $161.00 per homestead.
One further comment. The district estimates that it will cost the taxpayers $6,787,894.00 to pay for their portion of the PSERS retirement fund for the teachers between the years 2010-2015.
The people who are running for state representative should provide the public with a specific plan to solve this nightmare.
Yes and Dave Kessler should be the first to provide his specific plan. After all, he has been in Harrisburg for 4 years already.
You're right Fleetwood Boy, let's keep Gore out of Harrisburg and send Maloney. He voted to increase our property taxes here in the Oley School District each of the four years he was on the board. He will fit right in up there.
Instead of wasting time and energy on student surveys the board should declare that, other than raises foolishly agreed to in the last teacher contract, all spending for the next fiscal year will be frozen at 2010 levels.
The members of this school board were elected to represent the district taxpayers. Start representing our interests and stop playing games. $1.2 million to get out of a swap scheme that they shouldn't have gone into in the first place. Over $2 million wasted on a losing legal battle. And they are fooling around with gym classes? This isn't the Oley Valley School Board, it's the Twilight Zone!
To the ill-informed person at 11:42
Exactly how could Mr. Maloney vote for a tax increases 4 of 4 years when in his last year they passed a ZERO tax increase budget? If you believe the lies that Mrs. Gore the future PhD in community orgaizing spews out then you either are Mrs. Gore or you are a ingorant wastling. Ask Mrs Gore why she vote to destroy Fleetwood Pizza. Then ask her why she in all her community orginzer wisdom still can't turn that big empty lot in the middle of Fleetwood into something other that a weed farm?
That's right, as is typical on this blog you can't have a reasonable discussion with out resorting to name calling. For your information I intend on voting for Mr. Maloney but put those comments out there to create a discussion of issues.
I have met Mrs. Gore and, although I don't hold her in the low esteem you do, I believe Maloney is the only chance we have in defeating Kessler in November.
This "ignorant wastling"(how clever!) will continue to play "devil's advocate" here to get discussions going. Try to control yourself when responding. Save the hysterics for another blog.
OK 8:17AM May 09
Your comment is fair. I get emotional when I see Mrs. Gore blatantly lie in her campaign mailer about Mr. Maloney, a good man Oley Valley family with a reputation being honest. Mrs. Gore is unknown and can only attack him in order to compete and run away from her own documented eminent domain abuse past. Google her ans see what pops up.
I got a fourth mailed piece from Gore today. Who the hell is she? What does she know about Maloney and Oley school board. I read 2 of her mailings filled with lies about Maloney and oley valley. She is the worst type of politician. Willing to lie to win. Trash a good man to win. Shamefull and dishonest. I wouldn't trust Tammy Gore as far as I could spit.
Yesterday I got a fifth direct mail campaign piece from Tammy Gore. Who is she and what the hell is with her hair? Short spikey white gray hair with marooon dyed tips. Yeah, she really looks conservative. I can't vote for her just based on looks. Anyway who the hell does five mailers for a state rep primary? She must be in really bad shape to spend so much money on that junk. I will vote for David Maloney, early and often!
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