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<p>HANOVER TWP. &#8212; The Hanover Area School Board has terminated a contract with a transportation firm run by the parents of Board President Frank Ciavarella, a move prompted by an overpayment of about $250,000 the district made for van services in the 2017-18 school year.</p><p>The board also agreed to launch legal action to recoup the money paid to Frank J. and Dorothy Ciavarella.</p><p>District Solicitor Jack Dean said Tuesday the problem was discovered during an audit by the business manager and was reported to both the state auditor general and the Luzerne County District Attorney&#8217;s office.</p><p>The error appeared to be on the district&#8217;s end, he added, because the correct mileage was submitted by the company, but incorrect mileage was entered into the computer to use in calculating payments. The contract was terminated because Frank J. and Dorothy Ciavarella have not responded to requests for repayment of the $250,000.</p><p>The contract typically costs the district about $100,000 annually, Dean said, though it was likely higher that year because there were transportation runs to the Pennsylvania School for the Deaf in Pittsburgh. Generally, he said, the vans transported 15 students per day, including students attending non-public schools such as St. Jude&#8217;s in Wright Township. State law requires districts that provide transportation to their students also provide it to private schools within 10 miles of district boundaries.</p><p>Dean said control measures have been put in place and that additional personnel actions are in the works but declined to give specifics. He said both the person in charge of transportation and Superintendent William Jones retain those titles, refusing to say if there were any suspensions or other actions. Jones, who usually attends board meetings, was not present Tuesday night.</p><p><strong>State rate</strong></p><p>There were no similar problems with the two other van companies contracted by the district, or with the company that handles the bulk of student bus transportation. Dean noted the company in question submitted mileage in writing, not via computer, increasing the chances for error when entering data into the system.</p><p>The latest contract with Frank J. and Dorothy Ciavarella was approved at a meeting in June 2017, running from July 1, 2017, to June 30, 2022. According to meeting minutes, Board President Frank Ciavarella abstained, saying &#8220;They are my parents and they have been doing this for a while. This is just something new. They wanted to do a contract. But I abstain.&#8221;</p><p>Board Member Joyce Potsko also abstained in the vote for the van contract, saying: &#8220;They are my aunt and uncle.&#8221;</p><p>Frank Ciavarella recused himself from the votes regarding his father&#8217;s business Tuesday night. The rest of the board voted to terminate the contract effective March 1. Dean said new arrangements are being made to avoid disruption of service.</p><p>The contract with Frank J. and Dorothy Ciavarella required the district to pay the &#8220;state rate&#8221; for the service, referring to the state subsidy paid for transportation costs &#8212; a complex formula that hinges on various factors including age of vehicle, number of students and miles driven.</p><p>The state calculates a maximum rate, but the district typically gets about 70 percent of that. The district gives the bus company the maximum, covering the difference with local tax dollars.</p><p>Dean also pointed out the district gets the state subsidy the year after the service was provided, so the district had to cover the full cost in 2017-18 before getting the state subsidy in 2018-19. He said the district contacted the state and corrected the mileage reported, thus reducing the district&#8217;s subsidy and avoiding a potential problem in the future if the state discovered it had overpaid the district.</p><style>
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<div class="neCaption">Hanover Area School Board President Frank Ciavarella, right, presides over the board&#8217;s regular meeting Tuesday as district solicitor Jack Dean looks on. The board voted to terminate a transportation contract with a company owned by Ciavarella&#8217;s parents. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/02/web1_TTL020619Hanover-mg_2-1-.jpg</photo0><caption0>Hanover Area School Board President Frank Ciavarella, right, presides over the board&#8217;s regular meeting Tuesday as district solicitor Jack Dean looks on. The board voted to terminate a transportation contract with a company owned by Ciavarella&#8217;s parents. </caption0><photoCredit0>Bill Tarutis | For Times Leader </photoCredit0></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2019/02/web1_TTL020619Hanover-mg_1-1-.jpg">
<div class="neCaption">Hanover Area School District solicitor Jack Dean, left, announces the district has terminated a contract with a transportation company owned by Frank J. and Dorothy Ciavarella, parents of school board president Frank Ciavarella, right, during the board&#8217;s meeting Tuesday. The company was overpaid about $250,000 for van services in the 2017-18 school year after an apparent error by the district. </div></div><div class="metaInfo"><photo1>https://www.timesleader.com/wp-content/uploads/2019/02/web1_TTL020619Hanover-mg_1-1-.jpg</photo1><caption1>Hanover Area School District solicitor Jack Dean, left, announces the district has terminated a contract with a transportation company owned by Frank J. and Dorothy Ciavarella, parents of school board president Frank Ciavarella, right, during the board&#8217;s meeting Tuesday. The company was overpaid about $250,000 for van services in the 2017-18 school year after an apparent error by the district. </caption1><photoCredit1>Bill Tarutis | For Times Leader </photoCredit1></div></div>
<div class="metaInfo"><subheadMeta>$250K overpayment to firm owned by board president&#8217;s parents</subheadMeta></div><div class="metaInfo"><bylineMeta><p>By Mark Guydish</p><p>mguydish@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish</p></shirttailMeta></div>

Hanover Area ends contract with parents of board president after $250K overpayment