Solak Responds to Advertisement During Committee Meeting

by Nathan Lasher

ASD School Board Member Dr. James Solak responded to an advertisement that was recently published in local newspapers during a Buildings and Grounds Committee meeting held yesterday afternoon.

During a nearly five-hour long Armstrong School District Buildings and Grounds Committee meeting held yesterday afternoon, Committee Member Dr. James Solak responded to an advertisement that was recently placed in local newspapers regarding the district’s upcoming renovation projects.

“This ad is paid for by the People for Progress Consolidation Group which is on file as a PAC Committee in the courthouse, and their Treasurer is Gretchen Dosch,” said Solak. “I’ve vowed that when I see criticism about us I’m going to react immediately. That’s what I’m doing now and I’ll do it again. This organization of people, People for Progress, what they are chastising us for is for spending $78 million in an irresponsible and frantically contrived plan. This plan, including Elderton, was planned 10 years ago. We’ve already said this publicly, and they ignore what we’ve said publicly and what is documented. So, this plan that we’re carrying out started 10 years ago, and then we renewed it after 8 years in December of 2009 when we got elected by the people on a campaign platform to renovate schools. So, now we’re 10 months into continuing the plan and they’re saying we don’t have a plan. They say our projects are unnecessary. If they’re unnecessary, then what do they propose? They don’t have anything proposed here. We feel that our children deserve upgraded facilities. So, if they’re saying that our children don’t deserve upgraded facilities the way we are planning it, what is their plan? They don’t have it stated in the ad.”

According to Solak, members of People for Progress and their leaders are on record as showing support for a consolidated high school.

“Here is a resolution passed by Gretchen Dosch’s council as the Mayor of Applewold,” said Solak. “It calls for the feasibility of a new approach regarding four existing senior high schools and one middle school such as the construction of a centrally located campus. We also have petitions on file from People for Progress people calling for the same centrally located school. So, what I’m saying is how is this right for these people to complain that we’re spending $78 million and they say that we are not acting in the best interest of the District’s taxpayers or students in this matter? They’re asking the Secretary of Education to accept these letters from people. They’re saying, ‘With our depressed local economy, high percentage of fixed-income residents, declining enrollment, and great uncertainty about impending costs to fix the state employees’ pension fund, Armstrong County simply cannot afford such irresponsible spending.’ Yet, we’ve just heard today that we can meet this debt with existing documents that will pay the debt. Yet, these people are on record saying we’re too poor to afford $78 million yet they advocate a new school, which will cost anywhere from $120 million and up.”

Earlier in the meeting, members of H.T. Capital and Dinsmore & Shohl addressed the Committee regarding the financing for upcoming renovations for schools in Elderton, Ford City, and Kittanning.

Randall Frederick of H.T. Capital says the ASD will need to borrow approximately $80,420,000 in order to fund the upcoming projects.

Based on the report given by Mr. Randall Frederick of H.T. Capital, the ASD will need to borrow approximately $80,420,000 in order to fund the upcoming projects. Approximately $74,737,000 of that money will go towards the actual cost of the projects. The remainder of the funds that are being borrowed is to go towards paying capital interest, which will give the district money upfront to meet payment obligations until money from State reimbursement and savings from closing Kittanning Township Elementary and Kittanning Junior High School can be realized around the 2014-2015 school year.

“If we borrow $80 million to pay for $75 million worth of projects and we use capitalized interest there is no need to increase taxes for the first three years to this school district, and, in black and white on documents, the closing of the buildings will start to kick in plus reimbursements will pay the bill,” said Solak.

“We have worked together with the district pretty well to get these numbers to where they are today,” said Frederick. “That is our understanding, if everything goes as planned, that is correct. By 2014 – 2015 you should be in good position.” Frederick went further to say, “By using the capitalized interest we’re actually allowing you to get time, a year or two, to get to those positions where you can utilize the reimbursement and utilize the savings without making any budgetary adjustments.”

Also, during yesterday’s meeting, the Buildings and Grounds Committee interviewed three construction management firms.

“We are entertaining to hire one of these three firms as a construction manager for the projects that we have started in the school district, mainly the Elderton K-12 project, Ford City 7-12 project, and Kittanning 7-12 project,” said Solak.

The three firms that were interviewed were Massaro Corp. based out of Pittsburgh, P.J. Dick based out of Pittsburgh, and Reynolds Construction Management based out of Harrisburg.

Each of the three firms gave a 40 to 50 minute presentation and then answered questions from members of the committee.

The three construction management firms and the two financial firms are scheduled to make presentations, similar to those they gave yesterday afternoon, to the School Board and those in attendance during the ASD Open Caucus Meeting to be held in Lenape Elementary School this Monday at 7PM.

Print

categories Armstrong School District | nlasher October 15, 2010

19 Comments

  • By Jen16226, October 15, 2010 @ 7:18 AM

    “If we borrow $80 million to pay for $75 million worth of projects and we use capitalized interest there is no need to increase taxes for the first three years to this school district, and, in black and white on documents, the closing of the buildings will start to kick in plus reimbursements will pay the bill,” said Solak.”
    OK….not raising taxes due to the district projects, HOWEVER, don’t forget the pension fund increase, regular budget commitments, etc.
    Will the district raise taxes due to those issues?
    Stay tuned folks!!

    Also……What the district was able to afford in a plan from 10 years ago, does not mean it is the same today when the plan is not put into action. Economic factors have changed GREATLY in the past 10 years. Higher unemployment, higher cost of living, higher taxes.

  • By tdow, October 15, 2010 @ 7:21 AM

    So Mr. solak since you are now responding to crtiicism please explain to the good people of ASD how the “new” board attorney and his law firm with overt ties to the Zappala’s have gone into Moon Area School District, did some of their financial work on building/renovation bonds and took Moon’s debt that was 13 million and increases it to a whopping $129 million through some rather, shall we say, interesting dealings. I would post the series of articles from the Sunday, Sept. 14 Post Gazette here but out of respect for the KP admin. wishes that links to other newspapers not be placed here, I will refrain. Anybody interested in what is very well likely to happen should take a look at theses articles because I will bet my bottom dollar you will see these same people with distinct ties to the people who are destroying Moon be the first in line for the ASD bonds and being that they are also the former HERO law firm you KNOW no one else will be considered except perhaps in a transient, cover up sort of way. Kinda like the whole basketball coaching sham put through recently at FC.

  • By sweetleur, October 15, 2010 @ 7:21 AM

    I think the biggest question taxpayers have is why re-open a school for 30 or less graduates. I could see if it was a private school and funded that way but it is not fair to tax payers and not economically sound judgment.

  • By DANBOY, October 15, 2010 @ 7:21 AM

    It has been awhile but I have been thinking!
    Things I think I think:

    I am confused is it a Building and Grounds Committee or PERSON????

    How much $$$ is the good Dr. Director saving on campaign literature thanx to the KP? How much time was spent on reacting to an ad in the newspaper rather than the important business at hand?

    Mr Rizzo BIG MISTAKE!! However everybody stay focussed and not make this a FC vs KITT thing!

    Gretchen Dosch you made the list YOU DIRTY RAT!!

    Please remember you voters in Ford City,Ford Cliff and Cadogan areas THE PLAN for your community school is only going to cost 80 million $$.

    I am seeing articles and letters to the editor about how well ASD students do when they go on to college. What pecentage of students might that be and maybe the KP can do a piece on WHERE ARE THEY NOW??

  • By tdow, October 15, 2010 @ 7:27 AM

    Come on people WAKE UP! You are being led by the noses into some major financial hardships, and for what? Are any of these pathetic renovations helping our children to succeed academically in their future endeavors? ABSOLUTELY NOT!

    Response Mr. Solak? Ms. Stitt? Mr. Smeltzer? Monroe, Yassem even know anyting about this? Mr. Kozuch take a look because like it or not you have now been lumped in with this group of Fab Five. For the love of god DO YOUR HOMEWORK before you vote with these corrupt individuals. You OWE your constituents that much, and please be smart enough NOT to only here the twisted, manipulations of Solak!

  • By johnnymydear, October 15, 2010 @ 9:32 AM

    Are you telling me the new renovations are going to be updated with the latest technologies needed for 21st century learner? Are they going to be energy efficient; Structurely sound? I’m sure, 100+ year old buildings! Go see what real facilities look like and I think you may change your mind about the renovations.

  • By scott_starr, October 15, 2010 @ 10:57 AM

    Jimmy, explain why closing Elderton saves $0 ( according to you) but any other school closing saves millions.

    Second, you admit that the fund balance continues to increase, well since we don’t have a new source of taxes, we have to say this is savings from closing Elderton.

    I mean really.

  • By KGeorge, October 15, 2010 @ 11:04 AM

    Dr. Solak, consolidation is the plan! First, close Elderton(again). Enrollment is too low and will continue to decrease as in all other schools in our district. We are not providing the students of Elderton all the EDUCATIONAL opportunities those students deserve in a financially responsible way. I know that is a hard pill to swallow in Elderton but the times demand it and the students deserve the best education the ASD can give them.

    Consolidate Kittanning and Ford City and form a new “community” school (that would still be considered a “small” school). The high school can even stay in Ford City. Then we can provide more academic choices as well as more extra-curricular activities in a more financially sound way. No new buildings needed until we can afford it. Then we can concentrate on providing quality education as we come together to build a new community. Let’s plan for the realistic future.

  • By scott_starr, October 15, 2010 @ 11:04 AM

    For those of you who do not know what is capitalized interest here is the definition:

    using loan proceeds to make interest payments on the loan during a specified period such as during project construction. Capitalizing interest increases the loan balance and thereby increases future loan payments necessary to repay the loan. ..

    ——-
    What this means is that we are paying interest on interest, note the last line “INCREASES FUTURE LOAN PAYMENTS”

    Yes, Jimmy that is fiscally irresponsible.

  • By squirrel, October 15, 2010 @ 11:56 AM

    I think the ASD board members need to spend at least a week at one of the large schools. I had the joy of doing that in the 70s’ and was amazed at how well the school was run. The students did get along and yes they knew there class mates. Speeding money to update old schools is not even a question. If they used common sense, and most don’t they would see this. The economy in our area is terrible. People don’t want to move here and one reason is our schools. Solak asks what do the people plan. It sure isn’t to spend money on updating equipment that should have been torn down 10 years ago. Wake up!

  • By DANBOY, October 15, 2010 @ 12:51 PM

    Still Thinking!!

    If we use the Dr. Director’s financial reasoning lets build not a SUPER SCHOOL but a STATE OF THE ART SCHOOL. Close Kittanning, Ford City and Elderton and then we can call it a wash and maybe even cut taxes!!!! I betcha if I look hard enuff I can come up with DOCUMENTS that prove this!!

  • By Elliot, October 15, 2010 @ 1:51 PM

    Good Lord, where do I begin? What people need to realize is that Dr. Solak is a pretty good talker. If you ignore all the other information, his justifications can almost sound reasonable. (Pay no attention to that man behind the curtain!) However, informed citizens should realize:
    1. According to the ad he references, it was paid for by People for Progress. Not People for Progress Consolidation Group. I know, he needs to create a villain who is going to come and eat your babies.
    2. Even the best plan 10 years ago may not be a good idea today. How many of you have the same financial outlook that you did in 2000?
    3. Where in the PFP ad does it say anything about wanting to build a new school? Maybe I once went on record saying I wanted to buy a new sports car and retire early, but now because of changes in my life those plans are not feasible at this time. Isn’t that possible?

    I believe most of those evil consolidationists favor incremental improvements that are fiscally sound. However, when being forced to take on $78 million in debt, they are suggesting that the money could be better spent. Would you spend $20,000 on a twenty year old car when you could get a new one for $24,000?

  • By Jan, October 15, 2010 @ 2:02 PM

    Jimmy boy- you keep living in the past! There was a time that consolidated schools WERE discussed, however, times, they are a-changin. We can’t afford to build any schools at this time- anymore than we can afford to renovate old buildings with dwindling student enrollment. Here is the plan for what you should do. Step away from the renovations- keep the glorified EHS open. (we can’t move kids around like cattle)- Sit on things until we see an improved economy, improved unemployment rates in the county (9.6% is not acceptable) and until we see student numbers increasing to warrant building. You want to rush this renovation through because you are AFRAID that if it doesn’t happen now- schools will be consolidated when a new board is voted on. Address your fears Jimmy- you’ll feel better if you deal with them head on.

  • By scott_starr, October 15, 2010 @ 3:18 PM

    Jimmy:
    Here is my proposal.

    First realign the District so there is adequate representation to those who pay taxes.

    Vote you and the other folks out.

    Get a new board, which will evaluate education options FIRST, then decide on what buildings are required.

    Better yet, Jimmy, you and the 5 folks who are voting for this needless expenditure have a debate agianst folks who don’t want this expenditure.

    You are borrowing so you can make payments, now check the news and that is exactly one of the issues with Alt-A and the housing crisis.

    I wonder if Matta &Cambest will charge us $13,000 for a 3 page letter? Na, we have enough money maybe we will get it for $20,000.

  • By realisticone, October 15, 2010 @ 3:29 PM

    what a bunch of hogwash…do you know that this rush to judgement and rebuilding old schools is a crock? His reference to the building renovation plan of 10 years can’t match the building renovation plans of 30 years that he has fought so hard to keep silent.

    In the quote directly from the advertised meeting about the Elderton renovation plan in the Leader Times appears this paragraph:

    “According to the booklet, four main factors were considered when determining which option to choose. The need to consolidate buildings as a cost-saving measure, a separate gymnasium and cafeteria in the elementary building, a separate gymnasium and auditorium in the high school, classroom renovations, a new nurse’s suite, new administrative offices and handicap accessibility were all used in the planning”

    CAN YOU BELEIVE THAT - WE’RE ALL AFRAID OF THE SUPERSCHOOL FROM 30 YEARS AGO AND WE DID CLOSE/CONSOLODATE ELDERTON TO F.CITY AND W. SHAMOKIN…SAVED 4MILLION…BUT NOW WE HAVE MONEY TO OPEN BUT ARE SAVING MONEY BY CONSOLODATION…WHICH WORDS COMING OUT OF THE BUILDING AND GROUNDS COMMITTEE AND THE BOARD ARE WE TO BELIEVE?
    The ASD consolodated Dayton and Shannock into W. Shamokin…where was the ‘I speak for everyone’ board member during that time?

    Remember - There were students who wanted to stay at F. City and W. Shamokin…but were not allowed….If the Kittanning Attendance area sits on it’s collective behind for this “Red Herring” they will forever have limited the children and grandchildren for the next 2 generations. Next year’s election is too late.
    Act Now! Protest Now! Make calls NOW! Voice your dissatisfaction.

  • By scott_starr, October 15, 2010 @ 5:00 PM

    @Admin:
    Why does Jim get a free article refuting a paid advertisement?
    Just curious.

    I will be available the last week of October for an interview for an article to refute Jim’s refutation.

  • By outofthebox, October 15, 2010 @ 11:43 PM

    Savings from closing KT and Kittanning Jr. High along with state reimbursement might cover the interest costs of the bond issue. I would have to see it in black and white to believe it will cover the current $3 million budget shortfall and increases in pension and health care that the district will see in future years. What happens when the fund balance runs out. It appears that one or more of the renovated schools will need to be closed to save money. No room for all students from KHS and closing Elderton appears to mean too long of a bus ride for some students. FC is only a few miles from KHS so bus ride doesn’t increase much and many FHS students live within a half hour ride of Elderton or West Shamokin. Perhaps these renovations are the event that will force the closing of FCHS. How ironic that would be.

  • By phoenix, October 16, 2010 @ 10:11 PM

    This county is laughable and its district is in shambles. Closing two schools to open up one and renovate three. Allow me to speak about this paragraph….

    “We have worked together with the district pretty well to get these numbers to where they are today,” said Frederick. “That is our understanding, if everything goes as planned, that is correct. By 2014 – 2015 you should be in good position.” Frederick went further to say, “By using the capitalized interest we’re actually allowing you to get time, a year or two, to get to those positions where you can utilize the reimbursement and utilize the savings without making any budgetary adjustments.”

    If everything goes as planned….I am sure things always go as planned. I am sure those miners in Chile expected to be underground that long. I am sure it was part of the plan for the housing market to collapse, jobs lost and businesses to fold.

    What this guy is not taking into account is the teachers will have a new contract around this time, healthcare is not going to go down, they certainly will not take a pay cut. You probably have other employees that have contracts that will be due, you have administrators making good money. What happens if the state changes their formula and does not give the reimbursement you think you are getting? I would wait to see who is the new governor. Corbett will not be a friend to your school districts.

    I would also like to say if you have a consolidated school, you will eliminate costs from the buildings you close. And a new building will not require all of the maintenence costs of the three aging buildings. And correct me if I am wrong, none of the people running for election said anything about renovating schools. All they campaigned on was community schools, not putting money into aging buildings. Some more misinformation from the good Doctor.

    If you didn’t laugh, you just might cry!

  • By DANBOY, October 17, 2010 @ 11:47 AM

    Hey phoenix:

    BRAVO!! BRAVO!! BRAVO!!

    I could not have thought it any better but did you have to go and make me cry?

Other Links to this Post

RSS feed for comments on this post. TrackBack URI

Leave a comment

You must be logged in to post a comment.