Hits: 0
WPCNR SCHOOL DAYS. By John F. Bailey. February 28, 2007 UPDATED 1:01 PM EST. UPDATED 1:44 PM EST WITH BOARD OF EDUCATION AGENDA: The City School District has just issued the agenda for Thursday evening’s meeting, confirming that they will approve settlement of the Travelers Casualty suit Thursday evening, making the $2.8 Million payment March 2.
The $2.8 Million settlement the
In that budget discussion, one member of the Board even referred to the possibility of paying the settlement as more reason to cut more costs. To date the cost of the settlement or the existence of the suit has not been acknowledged publicly by the school district in any meetings open to the public that this reporter has attended.
Superintendent of Schools Timothy Connors, speaking to WPCNR this afternoon said, “I believe this case is over,” indicating by inference, it would not be appealed.
Connors also said the Board of Education would meet Thursday night to authorize payment of the settlement. Connors said the cost of the settlement is included in the present projected tax levy of 7.97%. As far as other contractors being owed money that was denied in Judge Charles Brieant’s decision, Connors statement “I believe this case is over,” was how he answered that query.
The $2.8 Million is the maximum amount of money the district will have to pay to end finally the tortured 1999-2003 high school renovation project.
Two thirds of the settlement ($2 Million) will be paid with the surplus, resulting in an additional 1.5% increase in taxes said by the Superintendent to be included in the 7.97% increase currently projected by the district, (barring further cuts by the district).
The other $800,000 will come out of be paid out of available funds leftover from the high school project. The
(Mr. Connors said the district would not know until tomorrow what the final Assessment Roll total would be. )
According to Assistant Superintendent for Business of the
Seiler said the surplus was accumulated through savings the district was able to make during the year, and is usually dedicated to soften the impact of the next year’s budget. It will soon be gone. Seiler said the surplus would be used to pay the settlement.
Judge Brieant, in his decision, denied
Seiler reports that to his knowledge the other contractors had agreed to abide by the results of the suit and not to demand payment in the event the damages were not awarded.
F. A Burchetta, the electrical contractor was owed $2,015,966.31, and Richards Conditioning was owed $2,015,966.31, according to the court papers, which was included in the $7,295,564.31 in damages sought by
Asked if the district would owe any more as a result of losing the suit, in the decision handed down by Judge Charles Brieant of the United States District Court Southern Division January 25, Seiler said he believed Burchetta and Richards, and the architect on the high school project, Kaeyer, Garment & Davidson (currently the architects on the just begun $69.6 Million Capital Project, including new football stadia, a new Post Road School, a renovated Mamaroneck Avenue School, and infrastructure improvements) had agreed to eat the loss if White Plains lost the suit.
Judge Charles Brieant based his decision on the Kaeyer Garment & Davidson role in the high school project, writing in his decision of January 25: The existence of the Architect’s October 9, 2002 agreement to support Defendant in any legal action or claim including this case, and its contingent fee interest in the outcome of this litigation bears heavily on the credibility of the Architect, and is certainly relevant circumstantial evidence of an incentive or possible bias in favor Defendant as early as October 2002, and of a constructive fraud in declining to earlier issue a certificate of substantial completion.
WPCNR attempted to confirm that the district had finally put the project to bed ($2 Million over the $28 Million budget) and would not owe any more money yesterday with the Superintendent’s office, and await his call. The Superintendent indicates by his statement “I believe this case is over,” that there will be no more multi-million dollar surprises.
SPECIAL BOARD OF EDUCATION MEETING
March 1, 2007
Education House
7:30 P.M.
AGENDA
I. Opening of Meeting:
Pledge of Allegiance
Oral announcements by the Board President, Board Members
II. Communications:
III. Public Participation: (The Board will entertain comments from the public on any issue, with a time limit of three minutes per person, and a maximum total of 25 minutes.)
IV. Superintendent’s Report:
V. Summary Action Items:
VI. Other Action:
1. Recommended approval of budget amendment to provide sufficient funds to the Judgment and Claims Expense in the General Fund.
2. Recommended approval to pay on March 2, 2007 the judgment to Traveler’s Casualty and Surety Company as determined by the Court.