001
Study to
rive debt
dd urpri e
700,000 co t
FLOD
Staff Reponer
S.RIGGS
DETRorr- School Board
Member Gloria Cobbin said,
she feels whoever committed to
paying the Coopers and
Lybrand Accounting Firm
more than $900,000 should find
a way to pay it themselves and
not make the school system flip
the bill for over $700,000.
Of the $978,452 owed,
. $250,000 has been paid by a
state grant and $312,530 was to
be paid by corporate and
private donations which have
not materialized leaving the
board with the balance plus
$403,572 in over run costs. . •
"There is no way in the world
I would approve this," Cobbin
said. " And as far as I'm con­
cerned the person who made
the committment should be out
looking for (the money)."
Coopers and Lybrand did a
serie of con ulting studies
recommending a possible
savings of $5.3 million by
priviatizing services. No known
contract was signed between
the board and the firm.
During a Feb. 7 meeting the
board committed to pay an
original proposed cost of
$562,350 including $489,000
professional fees and out-of­
pocket expenses estimated at15
percent.
The $250,000 given to the
district by the statewas paid to
Coopers and Lybrand before
finance committee members or
board had a chance to review it
and approve payment.
Board member Rose Mary
Osborne asked for a legal
opinion during the Oct. 10
board meeting. At the Oct. 24
meeting she announced that. in
fact the payment was legal,
ho ever, board procedure was
not folio ed.
So Osborne as ed, "Next
time when the state wishes to
pay one of our vendors that they
put it in their name (and not the
board)"
Osborne also scolded mem­
bers of the Detroit Chamber of
Commerce, New Detroit and
others who allegedly agreed to
pay the consulting bill.
"I was told (the system trying
Board
to raise money). wasn't neces­
sary because all of these
wonderful business people/ she
said. .
Board member and Finance
Committee Chair 0 vid
OF' 'ead said he plans to pur­
sue .erbal commitments made
by the state to pay at least half
of the Costs and by local entities
to provide supplement dona­
tions.
"I regret that we were not
able to raise those additional
dollars on the outside,"
Olmstead said. "As of Sept. 30,
time ran out on us."
Paul Hubbard, president of
New Detroit said his organiza­
tion never committed to pay the
Coopers and Lybrand bill.
"We didn't promise to help
pay for the study," Hubbard
said "There was no committ­
ment from New Detroit.
"I think it was a bad business
practice to contract a vendor
and know not where the money
is coming from," he added.
Josh Mack, also a school
board member said the board
was misled concerning the. con­
sulting contract.
"I think it's ridiculous to be
caught up in this predicament,"
Mack said. "I feel as a
boardmember, I was misled."
Dolores Smith, vice presi­
dent of a parent group, was out­
raged by the strong possibility
that the district would have to
pay the deficit.
"We were promised that it
wouldn't cost the district a
dime," Smith said. "I don't ap­
preciate you taking this money
out of the fund. This is one of the
things that's going to defeat
(Proposals A and B on the Nov.
7 ballot.) .
"Don't take this money out of
bill
our budget when we were told
we weren't going to pay."
Six board members voted to
accept the $250,000 from the
State for payment to Coopers .
and Lybrand and authorize an
additional payment of $312,530
to the firm for the financial con­
sulting services project.
Members Gloria Cobbin,
Rose Mary Osborne and
_ George Vaughn voted no.
According to a finance
report, board staff is reviewing
and validating the excess char­
ges of $403,572.
Hassles lengthen 'short agenda
By FWDE S. RIGGS
Staff Reporter
Board member George
Vaughn, who is facing a recall
election, called his recent con­
troversy a crucible fire, He also
said that though his reputation
has been damaged he is running
. again for his seat.
"I would be less than a per­
son if I've sat here and said that,
that didn't hurt," Vaughn said.
"Those who know me know that
what they wrote about me is not
true. I never took a vote that was
against the children. 1 never
flew first class and I always
drove my own car.
"Evil will always triumph
when good people stand by and
do nothing," he said, nding his
speech in a plea to not let the
reputations of Gloria Cobbin,
Rose Mary Osborne be
damaged like his.
A committee was scheduled
to meet Thursday Oct. 26 con­
cerning WDTR, the education-
al broadcasting station, which
is up for license renewal.
The committee was formed
to review the station's ctivities
and make reco�endationslt?
strengthen the station for con­
tinuation, said John Porter, in­
terim general superintendent.
The committee will also
determine whether all 250
schools will be able to broadcast
the station.
DETROIT - Tuesday Oct. 24
was a trying night for the school
board and its audience
members. .
Arguments came from all
angles starting with Rodeana
Murphy's, who is running for
the vacant board seat, accusing
board member and community
relations 'Chair, Frank Hayden
of being too involved with the
selection process for the board
semi-finalist.
T board will cast e final
vote, based on recommenda­
tions of a selection committee
made up of parents and com­
munity member.
The committee will conduct
interviews of candidate and
has set a deadline for selection
of semi-finalists for Friday Nov.
10.
During Hayden's committee
report, he stated that only eight
of the chosen 13 committee
members showed up for a meet-
ing Oct. 19. .
Hayden also stated t the
meeting was held at the Detroit
Public Schools Center Building I
sparking confrontation from
the audience. Audience mem­
bers said the meetings and the
interviewing should take place
in the area in which the board
member will represent.
Hayden would not withdraw
his decision.
Joseph Blanding told the
audience, Hayden did not have
to apologize for his involve­
ment.
"The responsibility i the
board's olbigation," Blanding
said. "It is by right, a total
decision of the board."
. Murphy responded saying
that the board involvement in
the committee's. selection
process indicates that the com­
munity is only valued when
needed, .
"We feel that we know you all .
have selected someone already.
. . you're playing games., she
said."(But) you can always call
on us when you need a millage
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