PNC Bank backs out of E. Allegheny electrical project
Someone else will provide the financing when Constellation New Energy takes on the upgrade of electrical systems in East Allegheny schools.
The Scott Township company's business development manager Joe Hudak told school directors on Monday that PNCBank decided not to finance the $2.8 million plan.
The school board approved Hudak's plan last month, as well as a tentative deal for PNC financing, both conditioned on a review by solicitor Daniel P. Beisler.
Next week, the board may consider the second-lowest bidder, All American Investment Group LLC of Denver.
“They are ready to get some documents over to you,” Hudak said. “They're very excited about the project.”
Financing may come with an interest rate of 3.4 to 3.6 percent, higher than what PNC could have offered.
“Is there any room to negotiate the interest rate?” school director Roxanne Sakoian Eichler asked.
“The problem is that the interest rates are going up again,” cautioned Denese Dileo, a financial analyst from Constellation's projects and services group.
Even with the delay in getting financing, Hudak still expects a June start to overhaul systems in the high school and Logan Middle and Green Valley Primary schools.
The overhaul is meant to provide guaranteed energy savings, as regulated by state Act 39 of 2010.
The board will consider proposals from ASCC Inc. of Cranberry Township for upgrading intercoms at the high school and Green Valley for $52,500, and video surveillance equipment at Logan for $41,139.53.
Financing for the two proposals has not been locked in. Previously, district business manager Toni Valicenti said an outright purchase would have to be budgeted for 2013-14, but the proposal includes ways to lease the equipment for up to five years and take ownership afterward.
The board will consider giving Valicenti and Superintendent Roger A. D'Emidio authority to use electronic signatures to sign off on e-Grants and similar agreements, contracts and/or licenses with the Pennsylvania Department of Education.
“I agree it is a good idea,” school director Frederick Miller said. “We just have to make sure we have strong PIN numbers.”
“One-two-three-four isn't going to cut it,” Beisler said.
The board found it has to rescind its offer to Mark Adams to join new high school head football coach Dominic Pecora as an assistant. Adams was named last week as Pecora's successor at Southmoreland High School, where he served for the past two years as defensive coordinator.
Patrick Cloonan is a staff writer for Trib Total Media. He can be reached at 412-664-9161, ext. 1967, or email@example.com.