plus 4, Scathing school audit - WHEC TV-10

Scathing school audit - WHEC TV-10
Auto show exhibitors reap benefits of upgrades to Cobo Center - Crain's Detroit Business
ALLEN PARK: - News-Herald
Insurance Auto Auctions, Inc. (IAA) Selects Audatex as Exclusive ... - Search-Autoparts.com
Stimulus building road to nowhere? - Columbia Daily Herald

Posted: 12 Jan 2010 02:31 PM PST

Posted at: 01/12/2010 5:32 PM
By: Ray Levato | WHEC.com

WHEC-TV A new state audit says some BOCES school employees were paid for days they didn't work and that was just one of many discrepancies. State Comptroller Thomas DiNapoli zeroed in on BOCES #1 number one in Perinton.

The audit also found serious financial problems that cost taxpayers more than $100,000.

One of the most glaring findings involved the BOCESs' head bus mechanic. He owned a nearby garage and leased space back to BOCES. The audit says the mechanic was using BOCES mechanics to do work for him at a private used car business he ran there.

One BOCES #1 parent was angry after hearing the news. He said, I have a son. I'm worried about him. Im worried abut his friends. I'm worried about everyone in that school.

His son is enrolled in automotive technology at BOCES. BOCES leases several repair bays in a private auto shop near the campus. The father said, What about the money that's already gone under the carpet? What about the people's bank accounts who are affected by these back door policies? I've got a shop. I've got kids here. Let's do something. Let's let them work over here. Let me pay you with BOCES Funds. I don't know what they're doing.

And the comptroller also criticized the BOCES board for quote -- setting a poor tone at the top.

Board members ignored their oversight duties year after year by failing to address fiscal weaknesses identified in ten different reports.
There was also a continued pattern of board members failing to disclose their conflicts of interest in BOCES contracts with a non-profit foundation.

BOCES paid its mechanics for time spent working on private business. BOCES #1 has had a succession of superintendents in recent years. The current superintendent says he and the board have made changes that address the comptroller's concerns.

BOCES #1 Superintendent Dan White said, This board, when they were made aware of an issue, put in place corrective actions and tried to take some steps to address that. I do believe that fundamentally. And we're putting in place the practices and procedures to make sure that we're running a good organization.

But another parent feels the school let the children down. If this is being handed down by administrators to workers to children, it's all on a scale that it keepings falling down and down. And who's going to lose? The kids.

The audit also found areas of concern to the suburban taxpayers in the ten eastside school districts that send kids to BOCES # 1. It says lax payroll policies allowed ten employees to be paid approximately $9,100 for 29 days they apparently did not work and more than $107,000 was paid out in incorrect separation payments to 53 BOCES employees.

The audit says BOCES resources are at risk because of not having a sound system of internal payroll controls. Again, the current superintendent says this is being addressed.

We spoke with Jodi Siegle of the Monroe County School Boards Association. She is a former Brighton School Board member -- one of the BOCES member districts. Siegle says the state education department hired the Rockefeller Foundation to do a report on BOCES #1 and that BOCES did institute some of the changes recommended in that report. She says a lot of this audit deals with the past.

For more Rochester, N.Y. news go to our website www.whec.com.

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Auto show exhibitors reap benefits of upgrades to Cobo Center - Crain's Detroit Business

Posted: 12 Jan 2010 12:22 PM PST

High above the floor at the North American International Auto Show, John Kull is explaining the new electrical system installed at Detroit's Cobo Center.

The electrical system is just one of the upgrades or repairs the Detroit Regional Convention Facility Authority has made to the aging convention venue since September.

The state Legislature allocated $3 million for short-term repairs before the 2010 auto show to the authority, which will oversee the long-term expansion and renovation of Cobo through the extension of a regional hotel and liquor tax.

The electrical work accounts for about half of the $3 million, said Kull, a project executive for Detroit-based Jenkins Construction Inc., which was a partner in the 1989 expansion and has done maintenance work on the convention center since 1999.

In past years, exhibitors have run cable up to the show floor through rented temporary transformers from the 26 electrical substations on Cobo's river level, Kull said.

Before this year's show, seven platforms with 39 permanent transformers were installed in the complex network of catwalks that's suspended between the convention center's show floor and its roof.

Visible from the catwalks are the giant struts that support the structure, the intricate drain system that keeps water out of the convention center in Michigan's soggy winters, and the platforms and transformers.

Power from the substations is routed up to the platforms, and exhibitors simply plug — what Kull calls a "plug and play" set up — into the transformers to direct power down to the convention center floor.

The move brings down the cost for exhibitors, long a complaint about Cobo, Kull said.

It's also a safer arrangement, he said, noting that the temporary transformers weren't unsafe, but that any permanent electrical installation offers fewer chances for mishap.

Perhaps most apparent is the work done on Cobo's once-leaking roof.

Expansion joints in the convention center's roof — which is also home to a parking deck — allow for the expansion and contraction of the steel and concrete with which the center is built.

Those joints have experienced some natural degradation over time, but snow plowing the roof, which forces a salt-and-water mix into the joints and also harms the rubber seal, has also done damage.

Pipes for the gutter system, the back-up for the expansion joints, had completely failed in some parts of the structure, and some of the drains from the rooftop had become clogged with age and sediment. The expansion joints and gutter system were replaced, and portions of the drain pipe were removed, replaced, and reinsulated

That work cost roughly $400,000.

Exhibitors say the difference is noticeable.

Last year, said Darrell Bryja, global auto shows and events director in Ford Motor Co.'s global experiential marketing department, the automaker's display was leaked on.

"This year, we haven't had any problems with water leaks," he said.

Passing control to the authority and starting repair work quickly — work began in early September and was largely complete by the end of October — is a sign that the region can cooperate when it has to, said Wayne County Executive Robert Ficano, whose county is represented on the Cobo authority.

"It shows we can get stuff done when we set our minds to it," he said. "The roof isn't leaking this time."

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ALLEN PARK: - News-Herald

Posted: 12 Jan 2010 01:34 PM PST

By Katie Hetrick

ALLEN PARK — The AAA Michigan office in the Fairlane Green shopping area recently celebrated its one-year anniversary by reminding people about the services it provides.

AAA combined its Allen Park, Dearborn Heights and Dearborn branches into the new site at 3177 Fairlane Drive.

Combining the offices just made sense, said Renata Crooms, an insurance agent at the site.

"The buildings were in need of repair," she said.

Also, AAA was looking to combine the branches, and Fairlane Green — also known as "The Hill" — is a high-traffic area easily accessible to many people. It is between Oakwood Boulevard and Outer Drive, and near the Southfield Freeway and I-94.

"We thought it was a good idea to just have one great location," Crooms said.

Twenty-five people work at the office: 17 insurance agents, two travel agents, five clerical employees and one manager.

AAA Michigan provides more services than many people realize, Crooms said.

Members can get travel services, purchase travelers' checks and buy theme park tickets including those for Disney parks, Cedar Point and others.

AAA also will help members plan out-of-state trips by selecting routes, finding services to stop at along the way and even detailing where to avoid construction, Crooms said. It has offered maps and other travel information for many years.

AAA also offers a full-service travel agency.

"We're the No. 1 in Disney cruises," Crooms said.

And, of course, AAA offers insurance.

"Insurance is a benefit of being a member," she said.

Auto, home and life insurance are available.

"AAA has become a lot more competitive with auto and home insurance than we were even two or three years ago," Crooms said.

Membership is offered in three tiers. Basic membership is $49.95 a year and includes up to five miles of towing. Towing master members pay $61.95 annually and are eligible for up to 15 miles of towing, and AAA plus members can get towed up to 100 miles and pay $77.95 a year.

AAA members also can load money onto their cards and use them as debit cards when they travel, Crooms said.

Besides travel services and insurance, AAA members are eligible for discounts at thousands of businesses.

Crooms said the office has a book that lists businesses in metropolitan Detroit that offer AAA discounts, and it includes many places people might not have considered.

She said she shows her card at Payless ShoeSource and can get 10 percent off regular-price shoes, and she also uses it when she parks at Detroit Metropolitan Airport to get a discount.

"There's a whole plethora of stuff you can use this discount for," she said.

She even shows the card at dry cleaners and other businesses and often gets a discount, she said.

The office is open from 8:30 a.m. to 6 p.m. weekdays. The phone number is 1-313-436-7590.

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Insurance Auto Auctions, Inc. (IAA) Selects Audatex as Exclusive ... - Search-Autoparts.com

Posted: 12 Jan 2010 12:51 PM PST

SAN DIEGO, Jan. 12 /PRNewswire/ -- Audatex North America, Inc. today announced an agreement with Insurance Auto Auctions, Inc. (IAA), one of the leading North American salvage auto auction companies, to become its exclusive vendor for NMVTIS reporting. The Audatex solution will allow IAA to easily report required NMVTIS data on more than 1 million vehicles per year.

Federal U.S. National Motor Vehicle Title Information System (NMVTIS) rules, which became effective March 2009, require that reporting entities (insurers, salvage yards, salvage pools, and vehicle shredders) report salvage and total loss vehicles into the national NMVTIS database. As one of the three official data consolidators, Audatex validates vehicle data provided to it by reporting entities before submitting it to NMVTIS.

"We have worked with Audatex for over 5 years on projects related to the salvage industry. Selecting Audatex to be our NMVTIS reporting vendor was a natural extension of our excellent working relationship. Audatex brings with it proven expertise in software solutions for the salvage and insurance industries," said Tom O'Brien, President for IAA.

Mike Salfity, Managing Director of Audatex for North America, said: "Audatex has a leading presence in the insurance, collision repair and salvage industries. This gives us the unique ability to efficiently enable our customers to meet their NMVTIS reporting obligations and participate in the drive to help consumers avoid fraud. We are pleased to be selected as IAA's exclusive NMVTIS reporting vendor."

About Audatex North America, Inc.

Audatex is the leading global claims solutions provider serving the automotive industry. Active today across six continents, Audatex provides world-class claims solutions that help customers automate their processes; managing millions of claims each year efficiently and effectively, and resolving billions in claims settlements. Beyond a leading presence in automotive claims, our growing footprint also extends into the automotive related financial services and medical claims solutions markets. As part of the Solera group of companies, Audatex, Sidexa, Informex, ABZ, Hollander and IMS draw on unique global experience to develop and deliver the latest technologies, market intelligence and best practices on a local level. For more information, please refer to the Company's website at www.audatex.us.

About Insurance Auto Auctions, Inc.

Insurance Auto Auctions, Inc. provides the advantage in salvage auto auctions with their hybrid auction model combining live and live-online auctions, North America's broadest salvage auction facility footprint, a strong global buyer base and high vehicle returns. IAA's more than 150 corporate owned facilities across the United States and Canada provide vehicle suppliers and buyers with powerful solutions to process and acquire total-loss, recovered-theft, fleet lease, donation and rental vehicles. The IAA Hybrid Auction Model, including live, live-online, I-Buy Fast, and proxy bidding, united with their mature global buyer base and diverse inventory produce some of the industry's highest returns for vehicle providers. With over 26 years in the industry, IAA holds the most comprehensive warehouse of salvage auction data. For more information regarding IAA visit our website at www.iaai.com.

SOURCE Audatex North America, Inc.

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Stimulus building road to nowhere? - Columbia Daily Herald

Posted: 12 Jan 2010 01:12 PM PST

Stimulus building road to nowhere?

Transportation funds don't budge unemployment

By MATT APUZZO and BRETT J. BLACKLEDGE/Associated Press Writers

WASHINGTON — Ten months into President Barack Obama's first economic stimulus plan, a surge in spending on roads and bridges has had no effect on local unemployment and only barely helped the beleaguered construction industry, an Associated Press analysis has found.

Spend a lot or spend nothing at all, it didn't matter, the AP analysis showed: Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation, raising questions about Obama's argument that more road money would address an "urgent need to accelerate job growth."

Obama wants a second stimulus bill from Congress that relies in part on more road and bridge spending, projects the president said are "at the heart of our effort to accelerate job growth."

Construction spending would be a key part of the Jobs for Main Street Act, a $75 billion second stimulus to revive the nation's lethargic unemployment rate and improve the dismal job market for construction workers. The House approved the bill 217-212 last month after House Speaker Nancy Pelosi, D-Calif., worked the floor for an hour; the Senate is expected to consider it later in January.

AP's analysis, which was reviewed by independent economists at five universities, showed that strategy hasn't affected unemployment rates so far. And there's concern it won't work the second time. For its analysis, the AP examined the effects of road and bridge spending in communities on local unemployment; it did not try to measure results of the broader aid that also was in the first stimulus like tax cuts, unemployment benefits or money for states.

"My bottom line is, I'd be skeptical about putting too much more money into a second stimulus until we've seen broader effects from the first stimulus," said Aaron Jackson, a Bentley University economist who reviewed AP's analysis.

Even within the construction industry, which stood to benefit most from transportation money, the AP's analysis found there was nearly no connection between stimulus money and the number of construction workers hired or fired since Congress passed the recovery program. The effect was so small, one economist compared it to trying to move the Empire State Building by pushing against it.

"As a policy tool for creating jobs, this doesn't seem to have much bite," said Emory University economist Thomas Smith, who supported the stimulus and reviewed AP's analysis. "In terms of creating jobs, it doesn't seem like it's created very many. It may well be employing lots of people but those two things are very different."

Transportation spending is too small of a pebble to quickly create waves in the nation's $14 trillion economy. And starting a road project, even one considered "shovel ready," can take many months, meaning any modest effects of a second burst of transportation spending are unlikely to be felt for some time.

"It would be unlikely that even $20 billion spent all at once would be enough to move the needle of the huge decline we've seen, even in construction, much less the economy. The job destruction is way too big," said Kenneth D. Simonson, chief economist for the Associated General Contractors of America.

Few counties, for example, received more road money per capita than Marshall County, Tenn., about 90 minutes south of Nashville.

Obama's stimulus is paying the salaries of dozens of workers, but local officials said the unemployment rate continues to rise and is expected to top 20 percent soon. The new money for road projects isn't enough to offset the thousands of local jobs lost from the closing of manufacturing plants and automotive parts suppliers.

"The stimulus has not benefited the working-class people of Marshall County at all," said Isaac Zimmerle, a local contractor who has seen his construction business slowly dry up since 2008. That year, he built 30 homes. But prospects this year look grim.

Construction contractors like Zimmerle would seem to be in line to benefit from the stimulus spending. But money for road construction offers little relief to most contractors who don't work on transportation projects, a niche that requires expensive, heavy equipment that most residential and commercial builders don't own. Residential and commercial building make up the bulk of the nation's construction industry.

"The problem we're seeing is, unfortunately, when they put those projects out to bid, there are only a handful of companies able to compete for it," Zimmerle said.

The Obama administration has argued that it's unfair to count construction jobs in any one county because workers travel between counties for jobs. So, the AP looked at a much larger universe: The more than 700 counties that got the most stimulus money per capita for road construction, and the more than 700 counties that received no money at all.

For its analysis, the AP reviewed Transportation Department data on more than $21 billion in stimulus projects in every state and Washington, D.C., and the Labor Department's monthly unemployment data. Working with economists and statisticians, the AP performed statistical tests to gauge the effect of transportation spending on employment activity.

There was no difference in unemployment trends between the group of counties that received the most stimulus money and the group that received none, the analysis found.

Despite the disconnect, Congress is moving quickly to give Obama the road money he requested. The Senate will soon consider a proposal that would direct nearly $28 billion more on roads and bridges, programs that are popular with politicians, lobbyists and voters. The overall price tag on the bill, which also would pay for water projects, school repairs and jobs for teachers, firefighters and police officers, would be $75 billion.

"We have a ton of need for repairing our national infrastructure and a ton of unemployed workers to do it. Marrying those two concepts strikes me as good stimulus and good policy," White House economic adviser Jared Bernstein said. "When you invest in this kind of infrastructure, you're creating good jobs for people who need them."

Highway projects have been the public face of the president's recovery efforts, providing the backdrop for news conferences with workers who owe their paychecks to the stimulus. But those anecdotes have not added up to a national trend and have not markedly improved the country's broad employment picture.

The stimulus has produced jobs. A growing body of economic evidence suggests that government programs, including a $700 billion bank bailout program and the $787 billion stimulus, have helped ease the recession. A Rutgers University study on Friday, for instance, found that all stimulus efforts have slowed the rise in unemployment in many states.

But the 400-page stimulus law contains so many provisions — tax cuts, unemployment benefits, food stamps, state aid, military spending — economists agree that it's nearly impossible to determine what worked best and replicate it. It's also impossible to quantify exactly what effect the stimulus has had on job creation, although Obama points to estimates that credit the recovery program for creating or saving 1.6 million jobs.

Politically, singling out transportation for another round of spending is an easier sell than many of the other programs in the stimulus.

The money can be spent quickly and provides a tangible payoff. Even some Republicans who have criticized the stimulus have said they want more transportation spending.

Spending money on roads also ripples through the economy better than other spending because it improves the nation's infrastructure, said Bernstein, the White House economist.

But that's a policy argument, not a stimulus argument, said Daniel Seiver, an economist at San Diego State University who reviewed AP's analysis.

"Infrastructure spending does have a long-term payoff, but in terms of an immediate impact on construction jobs it doesn't seem to be showing up," Seiver said. "A program like this may be justified but it's not going to have an immediate effect of putting people back to work."

Story created Jan 12, 2010 - 15:00:06 EST.

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