NEW CASTLE Police, other workers want to keep pension manager

Council approved storm sewer work on Court Street.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- City police and nonuniform workers urged council members to keep their pension money with its current manager.
Petitions signed by the workers were presented at Thursday's meeting.
"We'd like for the council to follow the recommendation of Randall Rhodes," said Elaine McEwan, city clerk. Rhodes is an attorney who handles pension funds and was hired by the city as a consultant.
Rhodes, along with the eight-member pension board, interviewed seven investment providers and gave the board a written report.
The report
The report recommended the city remain with its current manager, Morgan Stanley of Pittsburgh. The report also noted that Jazwinski Financial Services of Hermitage also offered a good management plan.
Others considered were A.G. Edwards and Sons of Hermitage, American Express Financial of New Castle, First National Trust Co. of Hermitage, Federated Securities Corp. of Pittsburgh and Sky Bank of Pittsburgh.
The pension board consists of the five council members, one firefighter, one police officer and one nonuniform worker. The board will vote on the matter at its next meeting is Nov. 10.
Councilman Mark Elisco said he's happy with Rhodes' recommendation.
"We paid Randall Rhodes $70,000. Not to go with his advice would be ludicrous," Elisco said.
Councilwoman Pat May agreed and pointed out that the city pension fund is in financial trouble. She said the city will likely have to increase its earned income tax to pay expenses as well as increase employee contributions. She said any money the fund makes cannot be used to pay fees, but must go back into the fund.
Unhappy with it
Councilwoman Christine Sands and Councilman John Russo said they are unhappy with the past performance of the pension fund.
"I feel the fund could have done better," Russo said after the meeting. He questioned why council members had to attend the meetings with the seven providers if they were going to just follow Rhodes' advice.
In other business, council opened bids and awarded a contract for work on storm sewers on Court Street to Graziani Construction of New Castle. The company will be paid $65,348.
Greg DelPrincipe of RAR Engineering said they wanted to get the bids quickly to start work before the weather turns too cold. The work was necessary because of damage during heavy rainstorms this summer, city officials said.
The city also approved an agreement with Universal-Rundle Corp. for its property off North Mill Street. The land will be used for parking, said Ted Saad, assistant city solicitor.
No money will be paid, but the city is giving Universal Rundle property it owns off North Mercer Street. The deal is part of the downtown redevelopment plan.
cioffi@vindy.com