Local school officials worry over building contract freeze

Wednesday, April 13, 2005 • BY STEVE CHAMBERS AND DUNSTAN McNICHOL • Star-Ledger Staff

A month after New Jersey's inspector general ordered a time-out while she investigated evidence of waste in the state's $8.6 billion school construction program, local officials are starting to complain that the freeze is jeopardizing critical school projects.

Irvington, for instance, faces the prospect of paying $400,000 to rent a Catholic school building for an additional year because of delays in starting an elementary school project there.

In Paterson and East Orange, hundreds of children have been moved out of elementary schools to make way for construction projects that have now been delayed.

"The construction contract was supposed to be awarded the day of the freeze," Paterson Superintendent Dennis Clancy said. "Now I'm crowded all over the district, and the building is sitting empty."

And in Gloucester, local officials are concerned about dangers posed by 70 houses sitting empty and boarded, awaiting demolition to make way for a new middle school.

Union City and Gloucester administrators, meanwhile, are concerned they will have no fields for the fall football season unless the Schools Construction Corp. is allowed to let work start on projects that were scheduled to begin earlier this year.

"The purpose of having the inspector general review the (SCC) is to be looking at ways of reducing costs, not increasing them as appears to be the case," said David Sciarra, the attorney for students in the 31 communities where the agency is building schools.

Inspector General Mary Jane Cooper's office declined to comment on the ongoing review.

Eric Shuffler, senior counselor to acting Gov. Richard Codey, who ordered the review, said it would not be prudent to start releasing new school contracts until the inspector general can ensure they are structured in a proper and cost-effective manner.

"We have two goals: One, to make sure the inspector general gets to do a professional job, and two, to make sure projects are not unnecessarily delayed," Shuffler said. "And we don't think that's exclusive."

Codey ordered the review in February, after a report in The Star-Ledger showed that schools built by the SCC since 2002 have cost on average 45 percent more than schools built by local school districts over the same time.

On March 10, Cooper directed the SCC to "refrain from completing and/or entering into any contracts, change orders or any other commitments for purchases or services" until her office can review the contracts.

Cooper's order effectively stopped pending SCC contracts in their tracks. At a hearing Monday, Jack Spencer, the SCC's chief executive officer, told the Legislature's Joint Committee on Public Schools that "a couple of hundred million dollars" in contracts are awaiting the green light.

In an interview yesterday, Spencer said he expects to meet with Cooper this week to work out a system for getting the contracts approved and under way.

Spencer dismissed suggestions from local officials that the delays might cause projects to be put off until after the upcoming school year.

"We're working on this as quickly as possible, and we really don't expect any delays," Spencer said.

Kelley Heck, Codey's spokeswoman, said the governor is confident that Cooper's oversight will not harm the construction program.

"It's our understanding that the inspector general is moving as fast as possible in her review," she said.

Passaic Superintendent Robert Holster said he is discouraged by the contract freeze and by what he considers to be SCC bungling.

He said a May 4 groundbreaking is scheduled for a $90 million, three-school complex on the site of Beth Israel Hospital, which is empty and waiting to be demolished. But he said the districtwide plan for eight new schools is a year behind schedule.

"I am highly concerned and suspicious over empty promises," he said. "We have identified all the sites where we want to build and are acquiring land, but we might wind up owning empty lots."


© 2005 The Star-Ledger. Used by NJ.com with permission.

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