July 29, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A group of volunteers has created an organization to oversee funds for New Castle’s youth football teams.
The action continues Red Hurricane head football coach Frank Bongivengo Jr.’s supervisory role while removing himself from the finances.
The program is the subject of an open records dispute, which will be heard in late August. In addition, Lawrence County District Attorney Joshua Lamancusa and Pennsylvania State Police are investigating approximately $3,200 in purchases related to the program.
“I don’t want to put my wife (Karen) and myself through that again,” Bongivengo said about initiating the change.
Pat Minenok will serve as head commissioner of the group New Castle Youth Football. Other commissioners are Patsy Cioppa, Jeff Morell and Craig Anderson. Minenok said he and Cioppa are the co-signers on a new bank account created for league operations.
The youth program is for district students in grades three through six. However, it is not operated by the school system, which funds teams starting in the seventh grade.
In March 2008, the school board supported Bongivengo’s request to supervise the city teams. The county’s youth football league said it would ban New Castle from play unless Bongivengo took over, the coach told the board.
In volunteering to run the program, Bongivengo asked for permission to operate the Taggart Stadium concession stands. He said the money would be used for youth football expenses and contribute to the district program.
The school district made an initial investment of $23,000 to purchase equipment and pay vendors owed money from the defunct youth teams.
Bongivengo addressed the controversy in a letter to parents.
“Although some have tried to bring it down, we can assure you that the main priority of this program is our children,” he wrote. “Our goals remains the same ... teaching our young children the fundamentals of the game as well as providing them with a structure(d), safe and fun environment.”
He added that the commissioners will provide open access to financial records upon request.
Approximately 110 have registered for the upcoming season, Minenok said.
Students in West Pittsburg, the city’s South Side and East Side play for New Castle Black and practice at Deshon Field. The New Castle Red squad, which practices at George Washington Intermediate Elementary, is made up of youth from the North Hill, Mahoningtown and the West Side.
Sign-ups will continue through tomorow from 5 to 8 p.m. at Taggart Stadium. Next week, registration will take place from 6 to 8 p.m. at George Washington and Deshon Field.
Minenok estimated that 155 students participated in the 2009 season. He expects to surpass that total for the 2010 campaign.
For additional information, call Minenok at (724) 714-1447.
Thursday, July 29, 2010
Tuesday, July 27, 2010
Fraud scandal trial date moved
July 27, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Attorneys in the Affordable Housing mortgage fraud scandal requested yesterday that the federal trial be rescheduled for October.
U.S. District Judge Gustave Diamond is expected to approve the motion, which involves Anthony J. Staph Jr. of Neshannock Township and Nicholas DeRosa, a New Castle resident.
The move also would affect the sentencing of Robert Ratkovich of 512 Norwood Ave. Ratkovich pleaded guilty in July 2009 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
He was to be sentenced tomorrow morning in Pittsburgh federal court.
The U.S. Attorney’s Office have accused Ratkovich, Staph and DeRosa of being part of a conspiracy involving Affordable Housing of Lawrence County, a defunct, nonprofit housing agency. First Commonwealth Bank reportedly was defrauded of $250,000 when it agreed to finance seven city properties at inflated prices, prosecutors charged.
A former city school administrator and councilman, DeRosa was charged with one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. A real estate appraiser, Staph was indicted on one count of bank fraud.
The jury selection and trial for Staph and DeRosa had been set to begin Aug. 9.
Attorney Efrem M. Grail asked to continue the trial to Oct. 4.
“Unfortunately, each of the three principal attorneys in this case had already scheduled family vacations out of the jurisdiction and had prepaid travel reservations which could not be changed without significant financial penalties,” Grail wrote.
Assistant U.S. Attorney Brendan T. Conway and Staph’s counsel, attorney Thomas J. Farrell, agreed to the motion.
In connection with the continuance, the U.S. Attorney’s Office asked Diamond to move Ratkovich’s sentencing date to late October. Conway said that as part of Ratkovich’s plea agreement, the former city councilman agreed to participate in the government’s case against Staph and DeRosa.
In a pretrial opinion released last week, Diamond ruled Staph and DeRosa would go on trial together. The judge refused to dismiss the one count against Staph and DeRosa’s conspiracy to commit money laundering charge.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Attorneys in the Affordable Housing mortgage fraud scandal requested yesterday that the federal trial be rescheduled for October.
U.S. District Judge Gustave Diamond is expected to approve the motion, which involves Anthony J. Staph Jr. of Neshannock Township and Nicholas DeRosa, a New Castle resident.
The move also would affect the sentencing of Robert Ratkovich of 512 Norwood Ave. Ratkovich pleaded guilty in July 2009 to one count of bank and mail fraud conspiracy and one count of money laundering conspiracy.
He was to be sentenced tomorrow morning in Pittsburgh federal court.
The U.S. Attorney’s Office have accused Ratkovich, Staph and DeRosa of being part of a conspiracy involving Affordable Housing of Lawrence County, a defunct, nonprofit housing agency. First Commonwealth Bank reportedly was defrauded of $250,000 when it agreed to finance seven city properties at inflated prices, prosecutors charged.
A former city school administrator and councilman, DeRosa was charged with one count of bank fraud, two counts of mail fraud and one count of money laundering conspiracy. A real estate appraiser, Staph was indicted on one count of bank fraud.
The jury selection and trial for Staph and DeRosa had been set to begin Aug. 9.
Attorney Efrem M. Grail asked to continue the trial to Oct. 4.
“Unfortunately, each of the three principal attorneys in this case had already scheduled family vacations out of the jurisdiction and had prepaid travel reservations which could not be changed without significant financial penalties,” Grail wrote.
Assistant U.S. Attorney Brendan T. Conway and Staph’s counsel, attorney Thomas J. Farrell, agreed to the motion.
In connection with the continuance, the U.S. Attorney’s Office asked Diamond to move Ratkovich’s sentencing date to late October. Conway said that as part of Ratkovich’s plea agreement, the former city councilman agreed to participate in the government’s case against Staph and DeRosa.
In a pretrial opinion released last week, Diamond ruled Staph and DeRosa would go on trial together. The judge refused to dismiss the one count against Staph and DeRosa’s conspiracy to commit money laundering charge.
Wednesday, July 21, 2010
Youth football expenses detailed
July 21, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Coach noticed the cones.
They weren’t part of the equipment given to New Castle youth football teams in 2008. Neither were the extra footballs, paper cups and oranges.
Frank Bongivengo Jr. learned volunteer coach Pat Minenok bought the supplies for his players.
The New Castle High head football coach appreciated the gesture but disapproved of it.
“If you or any of the other coaches start spending your own money on this program, what’s going to happen when you guys leave and the next guy can’t do that?” Minenok recalled the coach saying. “People are going to begin to expect the same things.”
“Frank said (the supplies) had to come from the program.”
Minenok, who is also an assistant varsity coach, didn’t ask to be repaid and didn’t keep the receipts.
“I didn’t think it was anything that was important,” he said.
The coach reimbursed Minenok $120.
FINANCES
Bongivengo ignored his own directive.
A review of Bongivengo’s financial statements and checks document that the coach and his wife, Karen, spent approximately $2,100 on the youth and district football programs. They also paid $1,270 in cash to stock the Taggart Stadium concession stand.
However, approximately $3,600 in ATM and bank withdrawals along with transfers from the youth football account took place in 2009. While no receipts are provided, Bongivengo detailed the expenses in a letter to the district.
Minenok’s $120 reimbursement is one example.
Through a Right to Know request, the New Castle News obtained Bongivengo’s financial information and correspondences with the city school district regarding the youth football program.
The Red Hurricane coach approached the school board March 12, 2008, with a request to oversee the city’s youth teams, featuring students in grades three through six.
“The first problem and concern we had was a lack of proper supervision and guidance — lack of quality coaches who have a kid-first mentality,” he said.
ULTIMATUM
Officials of the Tri-County Youth League reportedly told Bongivengo along with school board members Mark Kirkwood and Fred Mozzocio about their issues with the New Castle teams.
“(They) basically gave us an ultimatum saying that they would not allow us to play in the league any longer unless it was taken over by me.”
The board agreed to the move in a 9-0 vote. The district provided an initial investment of approximately $23,000 to purchase new equipment and to pay vendors owed money from the disbanded teams. Attorney Dallas Hartman helped to offset the district’s costs with a $10,000 contribution.
Bongivengo also requested that backers of the youth football program operate the Taggart Stadium concession stands. The district told Bongivengo he would have to split the use of the concession stand with the cheerleaders booster group.
The district budget funds the football program starting at the seventh-grade level. With game-day food sales, the youth football teams had their primary funding.
Bongivengo told the board he would also earmark a portion of the money for the upper grades.
During the first season, Bongivengo asked Kirkwood to assist with the finances. The school board member said he has been a youth football volunteer for approximately 30 years.
“He wanted me to help with the checkbook and that, since I had been around for so long,” Kirkwood said.
Working with Karen Bongivengo, he performed bookkeeping and made deposits from the concession stand sales. Kirkwood kept the funds in an account once used by the East Side Boosters.
Because the school district had purchased equipment for the youth teams, profits went into the bank.
“That’s why we had a surplus,” Kirkwood said.
In March 2009, he turned over approximately $9,600 to Bongivengo’s New Castle Football account.
ONE ACCOUNT
“He wanted one account instead of two,” Kirkwood said. “That was fine. He and his wife, Karen, were going to do the books anyway.”
He threw out the receipts when the 2008 season ended. Kirkwood said he was not questioned in the past about the practice. He said he has bank statements for the previous seasons.
A three-man committee of Minenok, Wayne Ryan and Pat Cioppa oversaw the league the next season. Minenok assisted Karen Bongivengo with the finances.
“Whenever we would get money from concessions, Karen wanted to get things verified,” Minenok said. “She would call me over and sit down and count the money. We would count it, initial it and deposit it.
“It wasn’t computerized or anything like that. It was handwritten.”
The youth program brought in approximately $14,000 in revenue during 2009. A majority of the group’s purchases involved supplies for the concession stand and football equipment. Other expenses were for ambulance service, trophies and pizza parties.
On two occasions, funeral floral arrangements were purchased. One for New Castle sports announcer Harry Dattilo and another for the family of a football coach, whose mother had died.
One question mark involved $3,146 spent on 12 airline tickets for Frank Bongivengo’s son and his friends. In an interview with The News earlier this month, Bongivengo said the tickets were paid on April 13, 2009, with the wrong debit card.
The mistake was realized the same day, he said. The money collected from the students for the trip, $2,470.70, was placed in the football account to cover the costs. The amount was paid in full on July 3, 2009, when the last of the students turned in their money.
TRANSFERS
That leaves the $3,600 in cash withdrawals and transfers that lack documentation. The 14 items range from $40 for party supplied for a youth football party to $2,250 in reimbursements through online transfers.
In a letter to the school district, Bongivengo said he made the transfer to reimburse himself for “expenses I incurred during the 2008 Pop Warner season as well as personal money spent in April and May 2009 for food, weightlifting, (college) recruiting expenses, printer for stadium, cables, ink.”
The coach said he withdrew $400 to provide change for the concession stand and took out $200 for the Pitt Football Passing Camp. Bongivengo also noted that he paid $62 for a graduating senior to take a college entrance exam.
The Bongivengos spent $2,100 of their own money at the beginning of 2010 on the youth football program. The money was used for “picture footballs,” programs and program design costs.
“We just want to run the program,” Minenok said. “We want to get the kids playing football.
“(Bongivengo) has all these different programs to worry about than just Pop Warner.”
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
Coach noticed the cones.
They weren’t part of the equipment given to New Castle youth football teams in 2008. Neither were the extra footballs, paper cups and oranges.
Frank Bongivengo Jr. learned volunteer coach Pat Minenok bought the supplies for his players.
The New Castle High head football coach appreciated the gesture but disapproved of it.
“If you or any of the other coaches start spending your own money on this program, what’s going to happen when you guys leave and the next guy can’t do that?” Minenok recalled the coach saying. “People are going to begin to expect the same things.”
“Frank said (the supplies) had to come from the program.”
Minenok, who is also an assistant varsity coach, didn’t ask to be repaid and didn’t keep the receipts.
“I didn’t think it was anything that was important,” he said.
The coach reimbursed Minenok $120.
FINANCES
Bongivengo ignored his own directive.
A review of Bongivengo’s financial statements and checks document that the coach and his wife, Karen, spent approximately $2,100 on the youth and district football programs. They also paid $1,270 in cash to stock the Taggart Stadium concession stand.
However, approximately $3,600 in ATM and bank withdrawals along with transfers from the youth football account took place in 2009. While no receipts are provided, Bongivengo detailed the expenses in a letter to the district.
Minenok’s $120 reimbursement is one example.
Through a Right to Know request, the New Castle News obtained Bongivengo’s financial information and correspondences with the city school district regarding the youth football program.
The Red Hurricane coach approached the school board March 12, 2008, with a request to oversee the city’s youth teams, featuring students in grades three through six.
“The first problem and concern we had was a lack of proper supervision and guidance — lack of quality coaches who have a kid-first mentality,” he said.
ULTIMATUM
Officials of the Tri-County Youth League reportedly told Bongivengo along with school board members Mark Kirkwood and Fred Mozzocio about their issues with the New Castle teams.
“(They) basically gave us an ultimatum saying that they would not allow us to play in the league any longer unless it was taken over by me.”
The board agreed to the move in a 9-0 vote. The district provided an initial investment of approximately $23,000 to purchase new equipment and to pay vendors owed money from the disbanded teams. Attorney Dallas Hartman helped to offset the district’s costs with a $10,000 contribution.
Bongivengo also requested that backers of the youth football program operate the Taggart Stadium concession stands. The district told Bongivengo he would have to split the use of the concession stand with the cheerleaders booster group.
The district budget funds the football program starting at the seventh-grade level. With game-day food sales, the youth football teams had their primary funding.
Bongivengo told the board he would also earmark a portion of the money for the upper grades.
During the first season, Bongivengo asked Kirkwood to assist with the finances. The school board member said he has been a youth football volunteer for approximately 30 years.
“He wanted me to help with the checkbook and that, since I had been around for so long,” Kirkwood said.
Working with Karen Bongivengo, he performed bookkeeping and made deposits from the concession stand sales. Kirkwood kept the funds in an account once used by the East Side Boosters.
Because the school district had purchased equipment for the youth teams, profits went into the bank.
“That’s why we had a surplus,” Kirkwood said.
In March 2009, he turned over approximately $9,600 to Bongivengo’s New Castle Football account.
ONE ACCOUNT
“He wanted one account instead of two,” Kirkwood said. “That was fine. He and his wife, Karen, were going to do the books anyway.”
He threw out the receipts when the 2008 season ended. Kirkwood said he was not questioned in the past about the practice. He said he has bank statements for the previous seasons.
A three-man committee of Minenok, Wayne Ryan and Pat Cioppa oversaw the league the next season. Minenok assisted Karen Bongivengo with the finances.
“Whenever we would get money from concessions, Karen wanted to get things verified,” Minenok said. “She would call me over and sit down and count the money. We would count it, initial it and deposit it.
“It wasn’t computerized or anything like that. It was handwritten.”
The youth program brought in approximately $14,000 in revenue during 2009. A majority of the group’s purchases involved supplies for the concession stand and football equipment. Other expenses were for ambulance service, trophies and pizza parties.
On two occasions, funeral floral arrangements were purchased. One for New Castle sports announcer Harry Dattilo and another for the family of a football coach, whose mother had died.
One question mark involved $3,146 spent on 12 airline tickets for Frank Bongivengo’s son and his friends. In an interview with The News earlier this month, Bongivengo said the tickets were paid on April 13, 2009, with the wrong debit card.
The mistake was realized the same day, he said. The money collected from the students for the trip, $2,470.70, was placed in the football account to cover the costs. The amount was paid in full on July 3, 2009, when the last of the students turned in their money.
TRANSFERS
That leaves the $3,600 in cash withdrawals and transfers that lack documentation. The 14 items range from $40 for party supplied for a youth football party to $2,250 in reimbursements through online transfers.
In a letter to the school district, Bongivengo said he made the transfer to reimburse himself for “expenses I incurred during the 2008 Pop Warner season as well as personal money spent in April and May 2009 for food, weightlifting, (college) recruiting expenses, printer for stadium, cables, ink.”
The coach said he withdrew $400 to provide change for the concession stand and took out $200 for the Pitt Football Passing Camp. Bongivengo also noted that he paid $62 for a graduating senior to take a college entrance exam.
The Bongivengos spent $2,100 of their own money at the beginning of 2010 on the youth football program. The money was used for “picture footballs,” programs and program design costs.
“We just want to run the program,” Minenok said. “We want to get the kids playing football.
“(Bongivengo) has all these different programs to worry about than just Pop Warner.”
Thursday, July 8, 2010
Coach explains purchase mix-up
July 8, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A flight to Florida met with unexpected turbulence a year after departure.
Today, state police are investigating the purchase of 12 airline tickets made from a bank account that supports the New Castle school district’s football programs.
Red Hurricane head football coach Frank Bongivengo Jr. said yesterday that the questionable transaction “was a simple, honest mistake that was rectified.”
The tickets were part of a graduation trip organized by Bongivengo’s son, Michael, and 11 of his friends. Last year, the 12 spent a week in Florida from July 5 and July 12. Each graduate paid for his own expenses.
The coach’s wife, Karen, collected money for the airline tickets. Another parent, whom Bongivengo did not identify, handled payments for the hotel rooms.
Working with a travel agent, Karen Bongivengo ordered the tickets April 13. She planned to deposit the money into their bank account that day.
“The price at that point was going to go up for the tickets,” Frank Bongivengo said. “We received the confirmation from the airlines on April 13. On the same day we realized, we had given them the wrong numbers.
“It was simply a matter of grabbing the wrong card.”
Bongivengo said the monies collected from the teens were deposited into the football account that same day when the mistake was discovered.
Financial statements and airline records obtained by The New Castle News confirmed Bongivengo’s timeline of events.
Bongivengo provided a notice from Southwest Airlines acknowledging the ticket order was approved at approximately 1:30 p.m. April 13. At Bongivengo’s request, the names of the students involved in the trip were blacked out.
An airline tracking service, www.flightstats.com, confirmed the flight from Pittsburgh to Orlando and the return trip had taken place.
The “New Castle Football” account statement for April 2009 showed 12 tickets were purchased for $3,146.40. The money was withdrawn from the account on April 16.
Two deposits totaling $2,470.70 were made on April 13. By July 3, the rest of the funds had been placed into the account.
“The remaining monies came in from the kids that hadn’t paid (prior to April 13),” Bongivengo said.
Bongivengo received school board permission on March 12, 2008, to oversee the city’s youth football program. The countywide youth football league had threatened to ban New Castle’s two squads unless better supervision occurred.
That board agreed to Bongivengo’s request in a 9-0 vote. Of those members, J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio and Barbara Razzano serve on the current board.
The school district did not create nor does it oversee the “New Castle Football” account, which Bongivengo opened. A portion of concession stand sales during games at Taggart Stadium fund the account.
The state police investigation is taking place as the school district prepares to appeal an open records ruling in Lawrence County common pleas court.
Razzano, acting at the request of a group of parents, initiated a right-to-know request in November regarding the youth program’s operations, dating back to March 12, 2008. Not satisfied with the district’s response, she appealed to the Pennsylvania Office of Open Records.
The district argued that it did not possess or control the records Razzano sought. The agency ruled in Razzano’s favor. The appeal is scheduled for Aug. 31.
Last week, county Distinct Attorney Joshua Lamancusa said the state’s investigation was in its early stages.
(Next week: A review of the youth football team’s finances.)
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
A flight to Florida met with unexpected turbulence a year after departure.
Today, state police are investigating the purchase of 12 airline tickets made from a bank account that supports the New Castle school district’s football programs.
Red Hurricane head football coach Frank Bongivengo Jr. said yesterday that the questionable transaction “was a simple, honest mistake that was rectified.”
The tickets were part of a graduation trip organized by Bongivengo’s son, Michael, and 11 of his friends. Last year, the 12 spent a week in Florida from July 5 and July 12. Each graduate paid for his own expenses.
The coach’s wife, Karen, collected money for the airline tickets. Another parent, whom Bongivengo did not identify, handled payments for the hotel rooms.
Working with a travel agent, Karen Bongivengo ordered the tickets April 13. She planned to deposit the money into their bank account that day.
“The price at that point was going to go up for the tickets,” Frank Bongivengo said. “We received the confirmation from the airlines on April 13. On the same day we realized, we had given them the wrong numbers.
“It was simply a matter of grabbing the wrong card.”
Bongivengo said the monies collected from the teens were deposited into the football account that same day when the mistake was discovered.
Financial statements and airline records obtained by The New Castle News confirmed Bongivengo’s timeline of events.
Bongivengo provided a notice from Southwest Airlines acknowledging the ticket order was approved at approximately 1:30 p.m. April 13. At Bongivengo’s request, the names of the students involved in the trip were blacked out.
An airline tracking service, www.flightstats.com, confirmed the flight from Pittsburgh to Orlando and the return trip had taken place.
The “New Castle Football” account statement for April 2009 showed 12 tickets were purchased for $3,146.40. The money was withdrawn from the account on April 16.
Two deposits totaling $2,470.70 were made on April 13. By July 3, the rest of the funds had been placed into the account.
“The remaining monies came in from the kids that hadn’t paid (prior to April 13),” Bongivengo said.
Bongivengo received school board permission on March 12, 2008, to oversee the city’s youth football program. The countywide youth football league had threatened to ban New Castle’s two squads unless better supervision occurred.
That board agreed to Bongivengo’s request in a 9-0 vote. Of those members, J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio and Barbara Razzano serve on the current board.
The school district did not create nor does it oversee the “New Castle Football” account, which Bongivengo opened. A portion of concession stand sales during games at Taggart Stadium fund the account.
The state police investigation is taking place as the school district prepares to appeal an open records ruling in Lawrence County common pleas court.
Razzano, acting at the request of a group of parents, initiated a right-to-know request in November regarding the youth program’s operations, dating back to March 12, 2008. Not satisfied with the district’s response, she appealed to the Pennsylvania Office of Open Records.
The district argued that it did not possess or control the records Razzano sought. The agency ruled in Razzano’s favor. The appeal is scheduled for Aug. 31.
Last week, county Distinct Attorney Joshua Lamancusa said the state’s investigation was in its early stages.
(Next week: A review of the youth football team’s finances.)
Wednesday, June 30, 2010
New Castle board approves consolidation
June 30, 2010
Patrick E. Litowitz
New Castle News
NEW CASTLE — Financial incentives and a revamped plan persuaded New Castle school board members to consolidate the district’s kindergarten through second grades.
During yesterday’s special meeting, the board approved the creation of the Harry W. Lockley Early Learning Center. Construction is scheduled to begin in the fall of 2011.
The measure passed 7-2. Backing the project were J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio, Brad Olson Jr., Anna Pascarella and Mary Ann Tofel.
Dr. Marilyn K. Berkely and Barbara Razzano voted no. Razzano, who was not in town, participated in a teleconference.
“I commend this board for taking the courage during these difficult times to make such a good decision,” superintendent George Gabriel said. “Not only are we setting the foundation for the young children of this district, but we are being fiscally responsible.”
Gabriel declared the consolidation effort dead in May. At the time, Kirkwood, Mozzocio, Olson, Berkely and Razzano said they were not prepared to back the project. Their concerns included the original $29 million cost, the state’s fiscal condition, the effect on taxpayers and the overall economy.
Earlier this month, the district was selected to receive a $15-million, interest-free bond issue. Gabriel asked the board at its June 7 work session to reconsider its position. Four of the seven members present agreed to the superintendent’s request.
David Esposito of Eckles Architecture & Engineering reworked the original proposal, which involved renovations to Lockley and George Washington Intermediate Elementary School. Esposito focused on the early learning center.
Eckles estimated the Lockley renovations to run between $16.4 million to $19.3 million. The district will use money from its $9 million fund balance to cover costs over the $15 million benchmark.
In the interim, business manager Joseph Ambrosini discovered the funding offered additional benefits.
Under the program, the state issues the bonds. The federal government, through its stimulus program, will make interest payments on the district’s behalf to bond holders.
New Castle must repay the bond in 18 years. During that period, Ambrosini said, the state will place the district’s payments in an interest-bearing account. When the bond matures, New Castle will earn $3.5 million to $4.4 million.
The exact amount will be known when the financing is finalized.
Ambrosini added that the state will reimburse the district 28 percent of the project’s total cost.
“I’m happy with it,” he said. “I would rather do it now with zero percent financing and how it’s structured through the interest savings.”
As part of its vote, the board hired Eckles to oversee the project. Bids are not required for a professional service contract, Gabriel said.
“We have a good relationship with Eckles. They have worked well with us.”
Esposito said Eckles will have a building design prepared within two to three months.
The renovations will not require the district to purchase nearby homes. However, it will need to acquire adjacent land, which Solid Rock Ministries owns.
Last year, a local animal welfare organization agreed to buy the property for $125,000. Neighborhood opposition and zoning issues halted the sale.
There was a lack of public interest in yesterday’s session, which included a vote on the $39.9 million budget for the upcoming school year. One parent spoke to the board regarding vandalized playground equipment before discussing concerns with the consolidation project.
Patrick E. Litowitz
New Castle News
NEW CASTLE — Financial incentives and a revamped plan persuaded New Castle school board members to consolidate the district’s kindergarten through second grades.
During yesterday’s special meeting, the board approved the creation of the Harry W. Lockley Early Learning Center. Construction is scheduled to begin in the fall of 2011.
The measure passed 7-2. Backing the project were J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio, Brad Olson Jr., Anna Pascarella and Mary Ann Tofel.
Dr. Marilyn K. Berkely and Barbara Razzano voted no. Razzano, who was not in town, participated in a teleconference.
“I commend this board for taking the courage during these difficult times to make such a good decision,” superintendent George Gabriel said. “Not only are we setting the foundation for the young children of this district, but we are being fiscally responsible.”
Gabriel declared the consolidation effort dead in May. At the time, Kirkwood, Mozzocio, Olson, Berkely and Razzano said they were not prepared to back the project. Their concerns included the original $29 million cost, the state’s fiscal condition, the effect on taxpayers and the overall economy.
Earlier this month, the district was selected to receive a $15-million, interest-free bond issue. Gabriel asked the board at its June 7 work session to reconsider its position. Four of the seven members present agreed to the superintendent’s request.
David Esposito of Eckles Architecture & Engineering reworked the original proposal, which involved renovations to Lockley and George Washington Intermediate Elementary School. Esposito focused on the early learning center.
Eckles estimated the Lockley renovations to run between $16.4 million to $19.3 million. The district will use money from its $9 million fund balance to cover costs over the $15 million benchmark.
In the interim, business manager Joseph Ambrosini discovered the funding offered additional benefits.
Under the program, the state issues the bonds. The federal government, through its stimulus program, will make interest payments on the district’s behalf to bond holders.
New Castle must repay the bond in 18 years. During that period, Ambrosini said, the state will place the district’s payments in an interest-bearing account. When the bond matures, New Castle will earn $3.5 million to $4.4 million.
The exact amount will be known when the financing is finalized.
Ambrosini added that the state will reimburse the district 28 percent of the project’s total cost.
“I’m happy with it,” he said. “I would rather do it now with zero percent financing and how it’s structured through the interest savings.”
As part of its vote, the board hired Eckles to oversee the project. Bids are not required for a professional service contract, Gabriel said.
“We have a good relationship with Eckles. They have worked well with us.”
Esposito said Eckles will have a building design prepared within two to three months.
The renovations will not require the district to purchase nearby homes. However, it will need to acquire adjacent land, which Solid Rock Ministries owns.
Last year, a local animal welfare organization agreed to buy the property for $125,000. Neighborhood opposition and zoning issues halted the sale.
There was a lack of public interest in yesterday’s session, which included a vote on the $39.9 million budget for the upcoming school year. One parent spoke to the board regarding vandalized playground equipment before discussing concerns with the consolidation project.
Wednesday, June 9, 2010
Board weighs project's dollars
June 9, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The pros and cons remain unchanged, but $15 million may sway the support required to consolidate New Castle schools.
Mark Kirkwood broke a prolonged silence before agreeing to the proposal. During Monday night’s work session, he provided the fourth vote of the seven school board members present.
Originally scheduled for tonight’s board meeting, the consolidation project vote will be part of a special meeting taking place at 5 p.m. June 29.
The Pennsylvania Department of Education alerted Superintendent George Gabriel last week that the district was awarded a no-interest, $15 million loan. The money comes from federal stimulus funding earmarked for school construction projects.
Gabriel then unveiled a pared-down version of a kindergarten-through-second-grade building. The price tag dropped from $29 million to $19.3 million.
Renovations to George Washington Intermediate Elementary School were scrapped.
“Hopefully, it will change the complexion of the project in addition to some other things that could be done,” Gabriel said.
The early learning center would be built on the Harry W. Lockley Kindergarten Center site.
Approximately 5,000 square feet were trimmed from the original plans. David Esposito of Eckles Architecture & Engineering said that was accomplished through reducing gym size and five special education classrooms.
“Unless you can change the area of the building, I’m not interested in participating in some sham that we can make this cheaper,” Esposito said. “The only way you can make it cheaper is to make the building smaller.”
Business manager Joseph Ambrosini said the district will apply $4.3 million from its fund balance to lower the cost to $15 million. The interest-free loan will produce savings, in addition to closing West Side and Thaddeus Stevens primary centers and making staff reductions.
District third-graders would be housed in the John F. Kennedy Primary Center.
The district pays $2.9 million annually on bond issues associated with the construction of its junior/senior high school. The early learning center would add $250,000 to its yearly debt, according to Ambrosini.
“There’s going to be a whole lot of operating savings that could almost fund this project in its entirety.”
However, board members Dr. Marilyn K. Berkely and Barbara Razzano remained opposed.
Gabriel asked Berkely what the district should do.
“I just want to wait and see what happens when the new governor is in. That’s all,” she said.
Gabriel responded, “Wait for a new governor? You think that’s our answer?”
“No. I just think that’s a lot of money, and we can’t afford it right now,” she said. “Nothing’s changed in my mind.”
Esposito agreed that today’s economy is in poor shape.
“But if all of you believe in 15 years, it’s still going to be bad then we’re really in bad shape,” he said. “We’ll eventually get through this.”
“But you say that in an area that hasn’t recovered from the steel mills closing and that was 30 years ago,” board member Brad Olson Jr. said.
Olson passed on the consensus vote.
With Karen Humphrey, Anna Pascarella and Mary Ann Tofel backing the plan, Kirkwood represented the majority vote needed to move the proposal forward. He took several minutes before making a decision.
In the interim, Gabriel said it appeared the project was dead.
“I’ve been against (the project), but with $15 million, I’m going to say ‘Yes,’” Kirkwood said.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The pros and cons remain unchanged, but $15 million may sway the support required to consolidate New Castle schools.
Mark Kirkwood broke a prolonged silence before agreeing to the proposal. During Monday night’s work session, he provided the fourth vote of the seven school board members present.
Originally scheduled for tonight’s board meeting, the consolidation project vote will be part of a special meeting taking place at 5 p.m. June 29.
The Pennsylvania Department of Education alerted Superintendent George Gabriel last week that the district was awarded a no-interest, $15 million loan. The money comes from federal stimulus funding earmarked for school construction projects.
Gabriel then unveiled a pared-down version of a kindergarten-through-second-grade building. The price tag dropped from $29 million to $19.3 million.
Renovations to George Washington Intermediate Elementary School were scrapped.
“Hopefully, it will change the complexion of the project in addition to some other things that could be done,” Gabriel said.
The early learning center would be built on the Harry W. Lockley Kindergarten Center site.
Approximately 5,000 square feet were trimmed from the original plans. David Esposito of Eckles Architecture & Engineering said that was accomplished through reducing gym size and five special education classrooms.
“Unless you can change the area of the building, I’m not interested in participating in some sham that we can make this cheaper,” Esposito said. “The only way you can make it cheaper is to make the building smaller.”
Business manager Joseph Ambrosini said the district will apply $4.3 million from its fund balance to lower the cost to $15 million. The interest-free loan will produce savings, in addition to closing West Side and Thaddeus Stevens primary centers and making staff reductions.
District third-graders would be housed in the John F. Kennedy Primary Center.
The district pays $2.9 million annually on bond issues associated with the construction of its junior/senior high school. The early learning center would add $250,000 to its yearly debt, according to Ambrosini.
“There’s going to be a whole lot of operating savings that could almost fund this project in its entirety.”
However, board members Dr. Marilyn K. Berkely and Barbara Razzano remained opposed.
Gabriel asked Berkely what the district should do.
“I just want to wait and see what happens when the new governor is in. That’s all,” she said.
Gabriel responded, “Wait for a new governor? You think that’s our answer?”
“No. I just think that’s a lot of money, and we can’t afford it right now,” she said. “Nothing’s changed in my mind.”
Esposito agreed that today’s economy is in poor shape.
“But if all of you believe in 15 years, it’s still going to be bad then we’re really in bad shape,” he said. “We’ll eventually get through this.”
“But you say that in an area that hasn’t recovered from the steel mills closing and that was 30 years ago,” board member Brad Olson Jr. said.
Olson passed on the consensus vote.
With Karen Humphrey, Anna Pascarella and Mary Ann Tofel backing the plan, Kirkwood represented the majority vote needed to move the proposal forward. He took several minutes before making a decision.
In the interim, Gabriel said it appeared the project was dead.
“I’ve been against (the project), but with $15 million, I’m going to say ‘Yes,’” Kirkwood said.
Friday, June 4, 2010
Stimulus funds may jump-start consolidation
June 4, 2010
Patrick E. Litowitz
New Castle News
NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.
That’s “zero” as in no-interest loan or “zero” as in board members’ support.
Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.
The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.
New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.
The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.
“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.
However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.
Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.
A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.
“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”
He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.
Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.
“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.
Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).
If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.
Patrick E. Litowitz
New Castle News
NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.
That’s “zero” as in no-interest loan or “zero” as in board members’ support.
Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.
The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.
New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.
The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.
“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.
However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.
Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.
A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.
“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”
He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.
Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.
“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.
Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).
If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.
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