Expect more money to be wasted by District 150

Clare Jellick has been doing some digging. She found out that District 150 and the Peoria Housing Authority (PHA) are represented by the same law firm (Kavanaugh, Scully, Sudow, White & Frederick) — and by lawyers whose offices are apparently right next to each other. The two bodies are negotiating a land deal so that District 150 can build a new, suburban-style grade school on the site of the existing Harrison Primary School plus land it wants to purchase from the PHA.

While the best course of action would be to retain separate counsel, the district is, of course, going to instead sign a conflict-of-interest waiver. That makes everything legal and ethical, but it doesn’t remove all risk. It appears that such conflict waivers are generally discouraged, and for good reason. According to one resource I found on the web, it may mean that the District won’t be able to get as good of a deal on the land as they could if they had separate law firms. Here’s a portion of a sample conflict-of-interest waiver (emphasis mine):

It may not be possible for a single law firm to represent both parties to the Transaction in the same aggressive manner as would two separate and independent law firms. By giving the consent requested in this letter, you are, in effect, waiving that kind of zealous representation of your individual and conflicting interests with respect to the Transaction. It is possible that each or both of you might be advised by independent counsel to demand or offer different or more favorable terms and conditions with respect to the Transaction than we can or will demand or offer.

Here’s why it makes such a big difference: According to the Journal Star, the 22-acre parcel of land the district wants to buy from PHA is appraised at $178,000. The PHA, however, is asking $800,000 for the land because they want to recoup the cost of demolishing the slums that sat there until just recently. That’s a huge difference. Remember, this is the school district that supposedly can’t afford $40,000 to keep their truancy center open or $63,000 to pay for their own marketing director (she’s paid by Caterpillar). This is also the school district that paid way over market value for eight homes on Prospect road that they can’t use, wasting $877,000 in taxpayer money.

The district doesn’t really even need this extra land (a total of 25+ acres for a K-5 school?), but if they’re going to buy it anyway, the least (and I do mean the least) they can do is try to get the best possible price for it. True to form, the school district is poised to waste more money by not getting separate representation.

15 thoughts on “Expect more money to be wasted by District 150”

  1. In the spirit of public confidence and trust, both parties should retain separate counsel.

  2. Yes. Also, from a PHA press release:

    According to the United States Housing and Urban Development (HUD) regulations, PHA may negotiate the sale of any project to an agency of the federal, state, or local government. HUD will consider approval of negotiated sales when the sale will result in a commensurate public benefit. Building the new school, a state-of-the-art learning center, will benefit the PHA residents, the surrounding community, and the City of Peoria.

  3. C.J.

    I have to think that besides covering their backsides by getting both the park board and school board to blindly sign the agreements Walvoord and his partner are merely participating in the practice of “getting, while the getting is good”! After all King Hinton bluffed his way into getting the BOE to extend his contract for another two years, thus lining his pockets with another $500,000 in salary and benefits. His court jester, Cahill already has a contract Walvoord helped to pen permitting him (Cahill) to receive a sizeable bonus for doing what other districts’ controllers do as part of their jobs.

    By Illinois law a BOE does not have to put their legal services out for bid, nor their auditing services. The only other exception involves certain emergency life/safety issues where quick action is essential. I have heard rumors that the BOE may very well invite bids for legal service after this year in light of the deadlines missed which will cause the district to lose another $900,000. So, what that tells me is Walvoord is in line for “getting while the getting is good”!

    Speaking of bidding, were you aware that Hinton/Cahill has proposed the elimination of the Purchasing Department at 150? As the public might expect the Illinois statues have concise clear rules covering purchasing of goods and services typically requiring a minimum of three independent bids. The intent is to secure the best (lowest) price for the taxpayers’ money. These rules are not just mere operating guidelines, but laws with teeth which permit vendors to take wrong doers to court – and they do! Now Hinton/Cahill has led the BOE to believe they can scatter the purchasing over several department heads and other pockets of management. They claim de-centralization will save a salary or two, but will the elimination of standardization of policy save money? What is to keep any of the multiple individuals from playing “wink wink’ with unscrupulous vendors for the sake of kickbacks, flavors or discounted personal purchases? The argument can be made that some of these specific individuals may be like letting the fox guard the henhouse! The assurance that Hinton has floated is that peer pressure will keep things in order and that the former cafeteria bookkeeper will review activity. Yup, folks I think this is just another case in the making of “getting, while the getting is good”!

    ^oo^~

  4. It’s not their money so why should they care how it is spent. They get paid no matter how bad they bend us over.

  5. Same S**t diffrent day. Hinton & Cahil will be the way #150 is run in the ground. The board is not running things the way they should. Our tax money spent so wastefully.

  6. I can sign a waiver that my hair is purple nevertheless in actuality my hair is auburn with increasing amounts of white.

    Confidence continues to erode in our community, heard of yet another family with six children — all school aged leaving Peoria D150 coupled with real estate for sale signs growing akin to this year’s dandelion crop — Trust is earned not given —- another black eye.

  7. How many black eyes can the BOE, Hinton, Cahill and company give themselves before people start to notice?

  8. PrairieCelt: In my opinion, the blackeyes are to the public and it would seem that the general public is more willing to ‘switch rather than fight’ vs. the old Tareyton ad — ‘fight than switch’. And so the exodus continues….

    Sorry do not know how to upload images.

    commercial “http://upload.wikimedia.org/wikipedia/en/thumb/6/6d/1965tareytonad.jpg/250px-1965tareytonad.jpg

  9. Karrie, unfortunately, you are probably right. Pretty soon Peoria’s schools will be “drop out factories” if this community doesn’t get up in arms soon and demand change. The cost of that to the taxpayers – in terms of social services, health care and incarceration expenses – will be very high.

  10. PrairieCelt: So, what are the contents of Manual’s Restructuring Plan on tonight’s BOE agenda?

  11. To the best of my knowledge, they will vote on the plan to develop the plan. Supposedly, Ken is appointing approximately 150 employees, students, and other stakeholders to work on various committees to develop different components of the MHS restructuring plan.

  12. This fight will take many years to fix D150’s problems. It will not be quick fix because (IMHO) the real problem is not in the school or with the teachers, but in the home.

    Anyway, many parents are not willing to wait that long while their children are at a disadvantage staying in D150. I wouldn’t. Neither are my coworkers. They are all in Dunlap, Metamora, Germantown, Washington, etc. Parents are making financial sacrifices to get out of D150 for their children’s future. That is why homes (& taxes & prices) are still going up in these places.

    Say you have a 4 year old child in Peoria and you want a good quality school environment. What do you do? Hope for a massive attitude change for many parents? Perhaps Edison takes over everything? Maybe a private school? Or could he/she get into Washington Gifted? Move to a better D150 school zone? Or just move to Dunlap where Wilder-Waite just ranked 10th among all Illinois elementary schools – http://www.suntimes.com/pcds/html/stng/hs/isat/rank_state_elementary.html

    The choice seems pretty easy.

  13. Pez: Are you saying not one child will get a quality education in District 150? Not one child will go on to make a future becuase of District 150?

  14. It is interesting to note that the BOE pulled the waiver of conflict of interest from the agenda last evening.

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