Friday, December 15, 2006

Audit reveals chaos in school business office

BY PAT LITOWITZ
PLITOWITZ@NCNEWSONLINE.COM

Missed deadlines, withheld subsidy payments and improper fund transfers.

In its audit released Monday, the state Auditor General's office disclosed the shortcomings of the New Castle Area School District for the 2002-03 and 2003-04 school years. It also provided a glimpse into a district business office that was overworked and in disarray.

"When (the audit findings) took place, we were going through some very turbulent times," Superintendent George Gabriel said. "We had a superintendent who was ill. He was contemplating retirement. We had a business manager who was essentially dying."

The district witnessed a change in its top management during late 2002. Battling cancer, Joseph A. Martin Jr. announced his retirement in mid-October. Gabriel was promoted a month later. Business manager Marie Pisano left nine days after Gabriel was named to oversee the district. Pisano could no longer work.

"She was so weak," Gabriel said. "She could hardly walk, and she was trying to maintain the business office."

Assistant business manager Abbie D. Baxter agreed with Gabriel's assessment.

"She was not well. She had cancer. She was not herself." The hiring of Roger Havey (as business manager) was expected to create stability in the business office. It didn't. "He just didn't do a whole lot," Baxter said. "He kept me doing stupid things.

"The first thing he did was get every board member a credit card. I had to do all that paperwork. Only three of them ever used them."

Five months after his arrival, Havey was suspended. The reason? The district learned he had pleaded guilty to two counts of theft by failure to make required disposition of funds. A short time later he was to be fired.

As the district waited for a replacement, Baxter took over the finances. "(Havey) didn't do one thing on the budget," she said. "So I had two weeks to get a $30 million-plus budget done.

"I pretty much lived here to get my work done." Baxter and the business office found themselves battling to pay bills and focusing on priority projects. "We were going on a whole-new computer system," she said. "So that took my time.

"There were constant interruptions with this new high school. I just took care of what I could take care of and what I had to do."

That meant state reports were set aside. "You had a rookie superintendent," Gabriel said. "I depended on Abbie to run the district.

"We had to keep our head above water, essentially. We had to make sure the bills were getting paid for the high school project."

Nine months passed after Havey's suspension before the school board selected his replacement, Joseph Ambrosini.

"When Joe walked into the office on the very first day, I felt the weight of the world off my shoulders," Baxter said. "He just started dealing with the constant interruptions, and I could actually sit down and get something done."

Ambrosini said what he saw was disturbing.

"I was stepping into a financial picture that was very disorganized," he said. "There was a lot of disarray.

"There was a lot of paperwork daily that flows through that office. I don't know how Abbie stayed with it, to be honest with you."

Almost a year into Ambrosini's term, the district's business office returned to normalcy.

Copyright © 1999-2006 cnhi, inc.

Thursday, December 22, 2005

Trash code sparks trash talk in Union

PAT LITOWITZ
plitowitz@ncnewsonline.com

Sure, religion and politics are volatile issues. In Union Township, add yard work and garbage to the list.

Punctuated by shouts, accusations and trash talk, Dec. 20's public hearing on a proposed property maintenance code ended abruptly. That's when a former township school board member raised a finger at outgoing Supervisor Steve Galizia.

Apparently, Galizia wasn't No. 1 in Arwood Pinkerton Jr.'s eyes.

"He's supposed to be a leader of the children's community," Galizia said. "He's flippin' the bird in a public meeting."

After the offensive salute, Galizia adjourned the session and called for police to remove Pinkerton from the meeting. While awaiting their arrival, Supervisor Kevin Guinaugh walked Pinkerton out of the meeting room.

Pinkerton could not be reached for comment Dec. 21.

Personality conflicts aside, residents questioned several portions of the code. Their overall concern was the code's enforceability and constitutionality.

"The code, as it is written, passed the solicitor and conforms to all laws," Galizia said.

Attorney Richard Harper is the district's solicitor.

One clarification dealt with the township's right of entry on a resident's or business' property. Verbal or written consent is required before a township police officer or code enforcement officer may go on the property. Barring that, a court order is required.

The use of garbage bags versus trash cans also was raised. Some audience members questioned wording that suggested a leak-proof, covered garbage container was the only acceptable form of trash receptacle.

"What about garbage bags?" resident and former township secretary Sally Byler asked.

Supervisor Pat Angiolelli said he interpreted the wording to apply to businesses.

Guinaugh raised concern over the police's role in enforcement efforts. He sought additional discussion between the supervisors and police before passing the ordinance.

"There's items in this that are not enforceable," he said. "I would not rush into judgment."

The ordinance was approved during the township's regular session, which took place after the public hearing.

"It's a necessity, and it's going to be done," Galizia said. "It's been cleared 100 percent by our solicitor."

The meeting remained contentious throughout and ended as Galizia and Byler exchanged comments.

"OK, I've had enough," Angiolelli said. "I make a motion to adjourn.

"When voices get loud, that's enough. We've already had one problem tonight. We're not having another one. I move to adjourn.

"Merry Christmas. Merry Christmas."


Copyright (c) 2005, New Castle News

Wednesday, December 21, 2005

Union officials: Housing agency didn't follow through

PAT LITOWITZ
plitowitz@ncnewsonline.com

A nonprofit group pictured Union Township as home for its first housing project. That vision remains unrealized.

Affordable Housing of Lawrence County announced plans in August 2004 to build Dale Country Estates. The proposed $2.5 million project, to be located on Dale Road, featured 30 housing units for low-income senior citizens.

To assist with the project, the Federal Home Loan Bank's Affordable Housing Program awarded a $168,000 grant. First Commonwealth Bank was lined up to be the local lending institution. Those financial arrangements were announced at the same time.

Township supervisors Steve Galizia, Pat Angiolelli and Kevin Guinaugh agreed that Affordable Housing - and not the township - failed to follow through on the plan.

"There was never even a (formal) discussion," Guinaugh said after Dec. 20's supervisors meeting.

Galizia recalled the lone meeting on the project, saying he met with Robert Evanick, Angelo Burelli and Roger Smith.

"We sat around the cafeteria table, and they had an idea what they would like to do," Galizia said. "I said you would have to go through the stages. They didn't follow me. Period."

Evanick, who heads the Lawrence County Housing Authority, was Affordable Housing's board chairman. He resigned from the board this month. Burelli is retired from the housing authority, where he had been the maintenance supervisor. Smith, a consultant for Affordable Housing, leads New Visions for New Castle, a nonprofit group.

Donald "Ducky" Conti, Affordable Housing's secretary and housing authority board member, said Dec. 21 that community response kept the group from moving forward with the development.

Conti and the Union supervisors agreed this week that Smith's announcement of the project last year had generated a negative reaction.

Conti said that Evanick's name is synonymous with public housing. Instead of seeing the development as a good opportunity, the community rejected it as a another housing project.

"We got bombarded by a bunch of people," Galizia said.

"I called back to Evanick and said, 'What the hell is he saying something like that for?' And he said, 'Well, he should have never spoke out like that.' Talk about shooting yourself in the foot before you get started."

Affordable Housing officials were told they would need to seek a zoning variance and then meet with Union's sewer authority. If the project had received those approvals, the supervisors would have scheduled a public hearing.

Noting it had sounded like a good project, Galizia recalled, "I said, 'Guys, it doesn't matter what we think right now. You have to go through the procedures.'

"At that juncture, they knew the avenue, they just didn't take it."

Conti said Affordable Housing still wants to move forward with that development. He said that in March, Union's zoning inspector and supervisors were invited to a meeting in New Castle, but no one from Union appeared.

Galizia said Affordable Housing is welcome to resubmit the idea.

"That would be fantastic," Conti said. "It's a fantastic location."

The group, created in 2003 by the Lawrence County Housing Authority, purchased eight properties this year. Instead of building new homes, they are rehabilitating old ones.

"That's one of the reasons I resigned," Evanick said last week. "I was just excited about building something new."

Conti said Affordable Housing will have to reapply for federal funding. The deadline to tap into the money was Dec. 18.


Copyright (c) 2005, New Castle News

Tuesday, December 20, 2005

Housing group loses another board member

PAT LITOWITZ
plitowitz@ncnewsonline.com

Affordable Housing of Lawrence County has lost its second board member in as many weeks.

In addition, a Shenango Township resident said he probably will turn down an invitation to join the New Castle-based, nonprofit organization.

Citing time constraints, attorney Frank A. Natale II submitted his resignation Dec. 20. Former Affordable Housing board member and chairman Robert Evanick, who is the executive director of the Lawrence County Housing Authority, resigned earlier this month.

"I don't feel it's appropriate to take up a board space if I can't go," explained Natale, who said he had attended two meetings during six months on the board.

"I feel that would be more fair to them if somebody else can come. They schedule the meetings during business hours, and I have a very active practice."

Created by the Lawrence County Housing Authority in 2003, the organization's initial objective was to build housing for low-income families and/or the handicapped. Instead of building housing, the group has purchased eight properties in New Castle with the intent to rehabilitate them.

"I don't want to get involved in anything that didn't have some purpose for hopefully furthering the benefit of the community," Natale said Dec. 19. "That's what I thought it was. I don't think anything different now.

"I want to see New Castle revitalized. I want to see that happen."

The departures of Natale and Evanick leave the board with four members: Donald "Ducky" Conti, Karen DeCarlo, Bill Bonner and the Rev. James Blackwell.

Conti, who is the board secretary, also serves on the housing authority board. DeCarlo is a New Castle city councilwoman, and Bonner is an official at First Commonwealth Bank.

Conti was unavailable for comment Dec. 19.

Brian Tanner, Shenango Township secretary and Shenango school district's athletic director, said he will decide by Jan. 1 if he will join the board.

"At this time, I'm probably leaning against doing it, only because of the time factor," he said Dec. 19.

"I really have very little time right now."

Tanner was expected to replace real estate developer Jon Librandi, who died in October.


Copyright (c) 2005, New Castle News

Monday, December 19, 2005

Housing buys raise questions

PAT LITOWITZ
plitowitz@ncnewsonline.com

Uncertainty is a cornerstone of the real estate market.

Activities by Affordable Housing of Lawrence County illustrate that point. Created by the Lawrence County Housing Authority, which provided a $200,000 no-interest loan in 2003, the nonprofit organization purchased eight properties this year totaling $340,000.

County property records confirm that much.

However, from the properties' value to who ordered the purchases, the current and former principals involved with Affordable Housing take differing views on strategy and responsibility.

Affordable Housing's initial objective was to build housing for low-income families and/or the handicapped. That course changed on March 8, when the group purchased a house at 1114 Cunningham Ave. in a sheriff's sale for $12,500. The county assessor's office values the property today at $26,700.

That investment is the group's best showing to date. On Dec. 7, seven more homes were purchased. Three of the properties are near or below county and state market values.

The four others were either owned or co-owned by Nick DeRosa and John A. Orlando. Valued by the county at a total of $135,100, houses on Frank, East Wallace, Highland and Florence avenues sold for $214,500.

DeRosa is the assistant superintendent of the New Castle Area School District. Orlando is retired from the Pennsylvania-American Water Co. Attempts to reach both men were unsuccessful.

WHO'S RESPONSIBLE?

Donald "Ducky" Conti, a housing authority board member who also serves on the board of Affordable Housing and is its secretary, said the board agreed to the purchases. However, he said, former board member Robert Evanick was ultimately responsible.

"He's the chairman," Conti said Dec. 18 of Evanick, who is executive director of the county housing authority. "He's the one who signs off on it."

At first, Evanick didn't wish to discuss the inner workings of Affordable Housing.

"I'm out of it now," he said last week, noting he had resigned from Affordable Housing's board. "You'll have to address those questions to Mr. Conti."

When Evanick was asked the same question later, his response changed.

"Mr. Conti arranged for those purchases through the organization."

Although Evanick resigned from the Affordable Housing board, it was not before he co-signed a $250,000 loan with First Commonwealth Bank on Dec. 6. Conti was the other signer on that loan.

Overall, Affordable Housing paid $327,500 for the seven houses, which were Section 8 properties. Officially known as Housing Choice Vouchers, the Section 8 program allows renters to pay for housing through government vouchers.

Grants totaling $77,500 paid what the loan did not cover, Conti said.

THE VALUE

Property value is in the eye of the purchaser, noted Bill Bonner, also an Affordable Housing board member.

An official with First Commonwealth Bank, Bonner has served on the board for a year. He said he refrained from business dealings Affordable Housing had with the bank.

"I've abstained from that transaction because of the bank's involvement and my relationship with the board," he said last week.

To date, Affordable Housing has two mortgages with First Commonwealth Bank. The first one, for $40,000, was signed June 29. The loan involved the Cunningham Avenue property.

Board member Karen DeCarlo, also a New Castle City councilwoman, and Conti signed those loan documents. Calls were made to DeCarlo to ask about the loan and why she was listed as Affordable Housing's director at the time. She could not be reached for comment. Conti said he did not recall that particular loan.

"I believed they just offered to talk to one of our lenders," Bonner said of his bank's involvement with Affordable Housing. "I kind of stepped aside when it came to financing that project."

Real estate values fluctuate. As Bonner explained, what one person may consider a reasonable price, another may balk at.

ASKING PRICE

About 3,000 people questioned their property assessment in 2003 after the county had set new values through a reassessment, but by this year, the number of challenges had returned to normal with approximately 120.

In addition to a countywide reassessment, building improvements or a change in zoned use will create a change in assessed value.

The State Tax Equalization Board offers another method to validate property values. Each year, the board compares county-assessed values to current sales prices and comes up with what is a ratio or common level ratio. For Lawrence County, that number is 0.912.

When a county-assessed property is divided by 0.912, the state's value on a property is created.

For example, Affordable Housing purchased 1806 Highland Ave. for $72,000. The county assessed the property at $49,400 and the state at $54,167.

"All I can tell you is that it's a triplex," Conti said. "I have no clue on how they assess. Apparently it must be OK because the bank had no problem with it."

He then added, "I'm not into that real estate stuff."

APPRAISALS

Castle Realty conducted the appraisals for the seven properties purchased on Dec. 7. Neither Castle Realty nor First Commonwealth Bank would release those figures. Conti said Affordable Housing would review the request for the appraisals.

Conti said Affordable Housing provided no public announcement that it was looking to purchase houses. In addition to Orlando and DeRosa, properties were purchased from Harry L. DeRosa and David L. Defibaugh.

The DeRosas are first cousins, Conti said. County records show that Nick DeRosa and Defibaugh were involved in real estate transactions.

"They wanted to sell," Conti said, adding all the buildings had tenants in them.

Harry L. DeRosa and Defibaugh could not be reached for comment.

Conti said Affordable Housing plans to purchase six more houses.

"They don't belong to Harry DeRosa or Nick DeRosa," he said. "There's other people involved.

"We went to the bank (First Commonwealth) and told them what we want to do. The bank was well aware what our goal is."


Copyright (c) 2005, New Castle News

Felasco fate varies by jurisdiction

PAT LITOWITZ
plitowitz@ncnewsonline.com

A Lawrence County commissioner and a federal housing official acknowledge the angst county residents have toward Gary F. Felasco.

Neither Dan Vogler nor Guy Ciarrocchi want Felasco handling public funds after state charges of theft emerged.

Yet, Vogler has had no success in booting the county treasurer from his office.

Conversely, the U.S. Department of Housing and Urban Development suspended Felasco in late November as a Lawrence County Housing Authority board member.

One man. Same charges. Different responses.

"It's all based on the law," Vogler said Thursday. "Everything we do here has to be based on what the law allows us to do and doesn't allow us to do.

"Evidently the law allows HUD to suspend board members because that's where the money's coming from."

Backed by rulings from District Judge Samuel A. Battaglia and visiting common pleas Judge Michael J. Wherry, Felasco has remained in office with pay.

"I understand citizens may be frustrated with the process locally," Ciarrocchi said yesterday.

Ciarrocchi serves as HUD's Region III director in Philadelphia. His office oversees housing authorities in Delaware, District of Columbia, Maryland, Pennsylvania, Virginia and West Virginia.

Noting that county and federal laws are in play, Ciarrocchi said he is not surprised by the apparent contradiction taking place.

"We have an obligation to make sure money is spent wisely," he said. "People must be capable but ethical."

Vogler hopes HUD's action opens the way for the county to make another case for Felasco's removal as county treasurer.

"In the light of the suspension against Felasco, does that gives us enough evidence (to) ask the courts to rule on a removal request? (County solicitor Thomas Leslie) is still looking into that."

Ciarrocchi said his office learned through a number of sources about the controversy and charges involving Felasco. U.S. Rep Melissa Hart and state Rep. Frank LaGrotta took the lead on the legislative level to advise HUD. Private citizens also offered input.

Last week, housing authority board member Donald "Ducky" Conti claimed someone had tipped off HUD about Felasco's charges. Ciarrocchi questioned Conti's assertion.

"I'm surprised why Mr. Conti is surprised," he said. "He's surprised that HUD took an interest in the Lawrence County Housing Authority and Mr. Felasco?

"We read the newspapers, too. We were aware of the criminal charges because of the media."

Like Felasco, Conti is facing his own legal issues. In 2004, the state charged Conti on counts involving illegal gambling devices and liquor. He is awaiting trial.

"HUD is aware of the charges against him," Ciarrocchi said.

He declined to say if Conti would be removed from the housing authority board.

Unlike HUD, the county has a limited role involving the housing authority.

"Somewhere in the law, it states the county commissioners will appoint the five members of a housing authority," Vogler said. "And then there's a big period at that point."

The law, and not passion, will determine Felasco's fate, Vogler said.

"That's why we have a solicitor to tell us to research the law," he said. "That prevents us from basing our decisions strictly on emotion.

"If I could base my decision on emotion and not adhere to the law, he'd have been gone 18 months ago."


Copyright (c) 2005, New Castle News

Friday, December 16, 2005

Evanick says no to buyout

By PAT LITOWITZ
plitowitz@ncnewsonline.com

The Lawrence County Housing Authority's executive director rejected an early retirement package last week.

The announcement surprised two of the board's four members, who had not approved the proposal made to Robert Evanick.

"I don't know how they can offer him a buyout without consulting the board first," Ernestine Wise said last night.

"I don't know anything about it."

Chairman Robert Heath also expressed his frustration.

"I wasn't really told a dollar amount," he said. "They asked me if I was for a buyout and I said no.

"For one reason, we couldn't afford a buyout. And I don't think Mr. Evanick wanted to leave."

When contacted yesterday, Evanick downplayed the controversy.

"They wanted to give me an incentive to take an early retirement, and I decided that I just wanted to continue working."

The question of who authorized talks with Evanick is not clear. Board member Donald "Ducky" Conti said Evanick was "pondering on retiring." Other than denying Evanick was offered $200,000 to leave, Conti provided no additional information.

"That number is too large," he said.

Board member Jeffrey Scrim, who is on vacation, and suspended board member Gary F. Felasco could not be reached for comment.

Although Evanick is a civil service employee, the U.S. Department of Housing and Urban Development does not have a say on his buyout package. HUD provides the authority with its funding.

"They had offered me a cash incentive and paying for my sick time and vacation time," Evanick said. "I told them I just wasn't interested. I want to work for five more years until I'm 65."

The question of where Evanick will work during that time also is being raised. A source familiar with housing authority issues, who requested anonymity, said Evanick was relocating to Pittsburgh once mayor-elect Bob O'Connor takes office.

The source said Evanick was expected to be hired by Pittsburgh's housing authority.

Dick Skrinjar, O'Connor communications director, quickly rejected that as rumor.

"I know nothing about it," he said yesterday. "The chief of staff will sit in on all the hirings that we do here. It's premature to have announcements about other people's positions."

Evanick said he could not comment on that report.

The housing authority has been mired in controversy. Along with Felasco's notoriety, issues involving the cost of the agency's cars and the combining of contracts for painting and grass-cutting plagued the authority last year. HUD suspended Felasco - who is the county treasurer and facing criminal charges involving theft - from his board seat on Nov. 29.

Evanick has disassociated himself from another agency, Affordable Housing of Lawrence County. Formed in August 2003 by the housing authority, the objective of the nonprofit group was to build housing for low-income families.

"We originally decided we were going to build new housing for the disabled," said Evanick, who last week left the board he was serving as chairman. "Once (the organization) decided to go the route of buying individual houses and fixing them up, then I lost interest in it."

Addressing Evanick's departure from Affordable Housing, Conti speculated that events surrounding the housing authority had made Evanick "gun shy."


Copyright (c) 2005, New Castle News