After much ado, TPS board approves underwriter

Larry Sykes THE BLADE Enlarge | Photo Reprints

What normally would be a routine financial transaction caused unexpected drama for a second straight Toledo Board of Education meeting Tuesday, when a board member temporarily walked out of the meeting and stalled a vote with major monetary implications.

Larry Sykes left the meeting for several minutes when a resolution came up to retain a co-managing underwriter for a series of upcoming bond refunds. The move was not a delay tactic, he said after the meeting, but an attempt by him to avoid a possible conflict of interest.

In the end, Mr. Sykes voted and the point was moot, leaving the district able to refund a series of facilities bonds and likely saving taxpayers at least $3 million.

The underwriter appointment has been contentious for months. With a favorable bond market, former Toledo Public Schools treasurer Dan Romano began the refund process this summer. But board members raised concerns about how Mr. Romano was handling the refund; after a request for a proposal was sent out to underwriters, a late request was sent to an additional firm. The firm sent the late request was dropped, but the contentions didn’t end.

Board members were set to approve during a special meeting Nov. 16 a New York City-based firm. Board president Bob Vasquez couldn’t get a vote, however, as no one would second the motion. Several board members, including Lisa Sobecki, said she didn’t feel she had enough information to approve the resolution.

“If I can’t do some background work myself to make sure I make wise choices for the taxpayers,” she said, “I think it’s hard for us to make decisions.”

The stalled voted sparked a heated exchange between Mr. Vasquez and Mr. Sykes. Board member Jack Ford had already removed himself of all related discussions because he had a connection with the firms that bid.

Mr. Vasquez openly questioned if any other board members had similar connections, seeming to direct his questions toward Mr. Sykes. After terse words about transparency and what Mr. Vasquez was implying, Mr. Sykes said that he had donated significant funds to the failed state treasurer’s campaign of Kevin Boyce, who was connected to one of the bidding companies.

The vote was then pushed back to Tuesday’s regular board meeting.

Mr. Sykes said he left during Tuesday’s vote because he thought those donations might constitute a conflict of interest. But with Brenda Hill sick and Mr. Ford already absent, the board was left without a quorum, which Mr. Sykes said later he did not know.

When he returned, another vote was taken. Mr. Sykes abstained, causing the resolution to fail. But after consulting with board attorney Keith Wilkowski, Mr. Sykes voted for of the resolution.

He said he was told that there would have been a conflict if the donations had been reversed, but since he had not received a financial benefit, there was no conflict.

Contact Nolan Rosenkrans at:

nrosenkrans@theblade.com

or 419-724-6086.