(Source; New Jersey Law Journal, 02-Apr-2004)
Has board learned a lesson?
I am pleased that the Phillipsburg Board of Education decided
to pay a reduced fine of $128,540 rather than pursue appeals of the orignal
$759,741 fine assessed against it as a result of the board's decision
to lease classroom trailers from GE rather than purchase them outright
(and for less money) from Coopersmith Bros. Inc.
In this way the board can spend its money on educating students rather than
on penalties for the board's misdeeds. I can even rationalize how The
Express Times would award the New Jersey Department of Education a Trophy
(“Turkeys and Trophies,” March 20) for allowing this result
so that money earmarked for education may be spent on education.
One must not forget, however, that it was the board's own actions that caused
this fine to be levied in the first place. Indeed, board President Rod
Pianelli's claim that he sought to do what was "morally right" in this
instance (“P'burg dispute comes to close, March 23) rings particularly
hollow given that the report upon which the fine was based found no basis
to support the board's rationalizations that Coopersmith could not provide
the school's trailers on time or that leasing would cost less than owning
in the long run.
Instead, that report explicitly faulted the board for failing to bid this project
sufficiently in advance of the school year.
The purpose of the state's fine was to ensure that the board not repeat its
mistakes. If the board believes that its only mistake was “to consider
Coopersmith's bid at all” as Mr. Pianelli contends, then the board
has learned nothing from this experience. The board's decision to reject
the Coopersmith bid cost the board $128,000 outright, caused them to
incur a fine of the same amount ($128,000), and will continue to be a
financial drain as these leases are extended as they recently were at
an additional cost (as valued by the state's report) of $254,000 per
year. I am hard-pressed to see how Mr. Pianelli thought that this was “the
right thing to do” under any circumstance, as he states.
MICHAEL A. OXMAN, Becker Meisel LLC Livingston, NJ
|
<< Back