SoCalHoops Recruiting News
Big Time In For Big Changes?
The Shape Of Summers To Come...--(Sept. 23, 2003)
Some very big news coming out of the State of Nevada may impact the shape of summers to come for high school basketball players looking to get recruited to the college ranks. The events taking place in Las Vegas will also likely have a large impact on one of the nation's most well-known and respected December tournaments, known as the "Holiday Prep Classic", and may threaten its continued viability.
For the past nine summers, the adidas Big Time Tournament has been one of the mainstays of summer recruiting, bringing coaches from almost every Division I college and university, as well as a large number of D-II, NAIA and even some of the higher profile JUCO programs to Las Vegas in the middle of July. This past summer, the Big Time swelled to more than 400 teams, more than 5,000 players, and countless scouts, fans, parents, and curious spectators, becoming the largest such college basketball recruiting event ever held anywhere.
The Big Time is, quite literally owned and operated by Sonny Vaccaro (or rather by a corporation formed by Sonny). Vaccaro has no connection at all with the Las Vegas Holiday Prep Classic, and event which has also been hosted by Las Vegas area high school for the past 26 years each December. But the one thing that both the Big Time and the Prep Classic have in common is that they have each been administered and managed on a day-to-day basis by Larry McKay, a longtime former Las Vegas District school district employee and athletics administrator, who has been one of the most well-respected and trusted tournament operators in the country.
Vaccaro has for more than 20 years been at the forefront of what has come to be known as "grassroots" basketball, first putting Nike on the map and brining Michael Jordan to the swoosh, and then, after a falling out with Nike chairman Phil Knight, working his magic on behalf of adidas by bringing Kobe, T-Mac, and others to the "three stripes." Recently, Sonny made it known that he was ending his contractual relationship with adidas, a fact which was confirmed with the departure of his trusted associate Chris Rivers who oversaw adidas' grassroots and college basketball operations from within the corporation in Oregon. Sonny and Rivers are both likely to be moving over to adidas and Nike competitor Reebok, where Sonny will try for a third time to work the same magic. And since Sonny also owns and operates the ABCD Camp, which for the past 10 years has been affiliated with and sponsored by adidas, but which got it's start as the "Nike ABCD Camp, " all indicators point toward Reebok also sponsoring that event, as well as the mammoth summer Las Vegas Big Time Tournament.
Setting aside questions of event sponsorship, recent revelations about potential financial irregularities in the administration of the Big Time and the Holiday Prep Classic, which broke with the publication of several stories last week and this week in the Las Vegas Review-Journal have had an unsettling effect on those who follow college recruiting. The stories, which provide a glimpse into the financial operations of the two biggest tournaments in the country, the Big Time and the Holiday Prep Classic, seem not to bode well for the tournament's chief administrator, Larry McKay, who was most recently in charge of the Las Vegas school district gymnasium facilities which the tournament has used over its existence.
It's still too soon to assess either the truth of the disclosures or what impact , if any, they will have on the Big Time. For his part, Sonny was quoted by paper on Monday as saying that the Big Time will go on, with or without Larry McKay at the helm, albeit sponsored by Reebok rather than adidas. For their part, the Las Vegas School District also indicates that the revelations will not prevent the Big Time from being held in Las Vegas. We hope so, for the sake of the kids who gain valuable exposure. But at the moment, no one really knows for sure the direction which any investigation might take, nor what it portends for recruiting events such as these.
The series of articles that has appeared in the Las Vegas Review-Journal beginning last Wednesday is linked below, where you can find the stories available online. We've also provided the full text of the stories below in case you have trouble finding them. Admittedly, none of this really has much to do with SoCal high school basketball, in and of itself, but it certainly has ramifications for how Southern California high school teams will be spending their winter tournament time, and how and where Southern California high school basketball players who play for travel teams in recruiting events might be spending their summers in coming years.
Tournament's future in doubt
Troubled event was expected to have only 16 teams take part
By LISA KIM BACH
Financial losses and questionable bookkeeping practices are contributing to an uncertain future for the Holiday Prep Classic basketball tournament.
Deputy Superintendent of Instruction Agustin Orci said a decision has not yet been made on whether to hold a 2003 tournament. The 26-year Clark County School District event draws national participation each December.
Earlier this year, the event lost Powerade as title sponsor and was expected to have only 16 teams take part, down dramatically from the 96 teams that played in 2002.
However, a school district audit of the tournament has found the event was operating in the red long before that occurred. The findings contradict records kept by former district Athletic Director Larry McKay, which showed financial losses only for the 2002 event.
"The whole thing is still under consideration," Orci said. "We don't know what we're going to do."
The Review-Journal has been a co-sponsor of the tournament, which is supposed to be self-sustaining.
A financial review found McKay was using money from the district's athletic budget to pay for game officials and tournament security. Orci said that is not an acceptable practice. Tournament costs should have been paid by tournament funds.
Over the past three years, $131,052.56 was drawn from the district's athletic budget to pay personnel working the tournaments.
McKay, who retired in June, told auditors the expenditures for police and officials were proper because the district organizes the tournament. He pointed out that the district sponsors athletic tournaments in sports such as wrestling and volleyball. In the past, officials and security for those events were paid for by the district as well.
"The practice was consistent with any tournament run by the school district," McKay said. "It's a district event."
Irregular tournament operations also have drawn the notice of the National Federation of State High School Associations, which regulates interscholastic activities such as athletics. On June 9, the Indiana-based organization sent McKay a letter informing him that the Prep Classic was out of compliance with federation sanctioning rules and regulations, which require all teams to be treated equally.
"We have learned that local Las Vegas teams were charged an additional $100 for the entry fee, and the host schools had their entry fees returned to them, as well as profiting from the concession proceeds and donated athletic shoes from Adidas," Federation Sanctioning Officer B. Elliot Hopkins wrote in a letter sent to McKay on June 9. "This is NOT equal treatment for the schools that participated and has possibly jeopardized the athletic eligibility and amateur status of the involved student-athletes."
According the tournament records, 13 teams that took part in the Prep Classic in 2002 did not pay any entry fees and one out-of-town team paid $100 more than the stated entry fee of $600.
McKay responded in a letter dated June 12, explaining that he charged local teams an extra $100 because they weren't paying the travel and room costs that out-of-state teams were incurring.
He also said host schools did not have their entry fees waived. They were given a rental fee donation for the use of their gyms from the tournament that included the profit from their work selling concessions.
"My interpretation of the rule was not correct," McKay said.
When contacted last week, Hopkins said he considers the matter concluded. The district has been informed of the violation and because it has committed to not repeating it, no other measures need to be taken.
"We've given Clark County the opportunity to resolve the issue, and they have done that," Hopkins said. "The matter is closed."
FINANCIAL LOSSES OF THE HOLIDAY PREP CLASSIC TOURNAMENT
A Clark County School District audit of an annual basketball tournament that draws national participation found the event has lost money for three consecutive years. The tournament is supposed to be self-sustaining. The losses were made up by the athletic department, which is a part of the district's taxpayer-funded operating budget.
2002 2001 2000 Tournament receipts $179,601.20 $194,131.21 $181,869.77 Tournament disbursements 247,695.28 182,438.65 156,524.56 Tournament net proceeds -68,094.08 11,692.56 25,345.21 School district costs 56,899.56 39,631.00 34,522.00 Tournament net loss -124,993.64 -27,938.44 -9,176.79
SOURCE: Clark County School District
HOLIDAY BASKETBALL: Classic's finances probed
Audit finds irregularities in annual tournament's records
By LISA KIM BACH
LARRY MCKAY RESUME
Bachelor's degree in secondary education and mathematics and master's degree in educational administration from the University of Idaho.
1973 - Math teacher at Bridger Middle School
1975 - Dean of students at Rancho High School
1976 - Assistant principal at Rancho
1990 - Assistant principal at Valley High School
1993 - Assistant principal at Durango High School
1997 - Appointed district director of student activities and athletics
2003 - Retired on June 27
SOURCE: Clark County School District
A Clark County School District audit of the Holiday Prep Classic basketball tournament has uncovered tens of thousands of dollars in lost public money, incomplete and inaccurate bookkeeping, and multiple violations of district financial policies.
The central figure in the report is former district Athletic Director Larry McKay, who has organized the tournament since its inception 26 years ago. A Christmastime fixture in the valley, the Holiday Prep Classic draws high school basketball teams from across the country to compete against local teams.
Tournament finances were so muddled, auditors were unable to determine exactly how much money might be unaccounted for.
According to the audit, McKay put school district funds in a nondistrict bank account that he controlled and used the money to reimburse himself for tournament expenses he put on personal credit cards. McKay reimbursed himself with amounts that exceeded the credit card charges, the audit says.
Because of the numerous irregularities uncovered by the audit, the Clark County School District is seeking help from the district attorney and the Nevada Division of Criminal Investigations to help unravel the financial disarray. The audit and the results of an unfinished school police inquiry will be turned over to those authorities.
"We don't like that this has happened," Clark County Superintendent Carlos Garcia said of the audit findings. "We think it's terrible that it happened. We're taking this very seriously. We're going to look into this as far as we can and clean it up."
District officials don't know whether McKay could face criminal charges in connection with his management of the tournament. Garcia said he has involved the law enforcement agencies to answer that question.
McKay retired in June while auditors were examining the tournament's financial records from the past three years. McKay said his retirement was not related to the audit of his department.
McKay said he has cooperated with the inquiry. He admitted making mistakes, but said he never willfully broke rules or procedures. Running the tournament was a personal passion, he said, that led him to invest a great deal of personal resources to benefit youth sports. He also said he has refunded money to the district for some of the discrepancies cited in the audit.
"I never profited personally from the tournament," McKay said. "My only intent was to provide good opportunities for high school basketball to flourish in Las Vegas."
The major problems outlined in the audit include:
Multiple conflicts of interest with McKay's employment outside the district. McKay managed a summer basketball tournament, The Big Time, a registered nonprofit organization that is not affiliated with the school district but played its games at district campuses. McKay also was treasurer of the Southern Nevada Officials Association, of which the district is a major customer.
District funds were deposited with monies from The Big Time in an account registered under The Big Time's tax identification number.
Lack of documentation to substantiate receipts and deposits, in violation of district policy, as well as athletic department ledgers that do not match the records of banks and outside vendors. Auditors cited this as their greatest obstacle in verifying financial reports.
The winter basketball event reported about $180,000 in net receipts, including entry and admission fees, and more than $247,000 in disbursements for 2002. Including district expenditures of about $57,000, last year's event ran almost $125,000 in the red. For the three years of the audit, from 2000 to 2002, the tournament lost more than $162,000. Those losses were made up by the district's athletic department budget.
Amid those losses, the district's middle school athletics program was canceled in May 2002 because of unexpected shortfalls in the district's general fund. The program, which costs about $350,000 per year, was saved by private fund-raising and a one-time donation of $250,000 from the Las Vegas City Council. Increased funding from the Legislature will allow middle school athletics to continue this year.
Deputy Superintendent of Instruction Agustin Orci said the Prep Classic was supposed to be a self-sustaining event, independent of the district's athletic budget.
"That should not have happened," Orci said.
But it was McKay's bookkeeping that confounded auditors.
"In all three years under audit, the Director (McKay) used multiple personal credit cards for Tournament transactions as well as multiple bank accounts (personal, personal business, Tournament and CCSD) for Tournament deposits and transactions," auditors reported.
Records kept by commercial banks, outside vendors and other entities conflict with reports and ledgers kept by McKay, leading auditors to conclude that "financial reports provided by the Director contained false and incomplete information."
In one instance, an adidas invoice for $2,664.44 appeared to be bogus, the audit said.
"Indications that the invoice was not authentic included: no company logo on the invoice, a remit address to the adidas representative rather than to an accounts payable department."
McKay explained to auditors that the check in question, recorded as a payment to adidas, a shoe and athletic apparel manufacturer, actually was a payment that should not have been paid with Prep Classic funds. McKay said that money has been reimbursed.
"He did not have an explanation for why he had an invoice for items he did not purchase from adidas," the audit reported.
Because the district lacks the authority to compel outside entities to turn over documentation of Prep Classic transactions or related financial records, Garcia said he has turned to law enforcement agencies that can subpoena such records.
Conflicts of interest
At the heart of many of the problems cited in the audit were the multiple hats worn by McKay in the local athletic community.
In addition to being the district's athletic director and organizer for the Holiday Prep Classic, McKay also was the treasurer for the Southern Nevada Officials Association. The group provides game officials for sporting events including district games, meets and matches. The district has between 6,000 and 8,000 sporting events each year.
McKay also was director of The Big Time tournament, a major recruiting event for high school players and college coaches. Although the tournament is played at valley high school gymnasiums, it is not sponsored by the district.
The audit says McKay deposited Prep Classic revenues into an account for The Big Time, then reimbursed himself for Prep Classic expenses. In 2000 and 2001, McKay charged $176,768.39 in Prep Classic costs on personal credit cards, after which he transferred $198,089.19 from the tournament bank account to his credit cards, an overpayment of $21,320.80.
Prior to 2002, the audit shows, McKay used a Bank of America account under The Big Time's tax identification number to deposit and disburse funds for the Prep Classic. Commercial bank records show $38,930 in Prep Classic funds were deposited into The Big Time account and wrongly identified as Big Time deposits by McKay.
Of the $38,930, the audit said $15,000 had been reimbursed by McKay, $5,340 was used to offset unpaid Prep Classic expenses, and the remaining $18,590 was used to pay for a district football tournament.
But auditors found an additional $3,150 was paid to McKay for arranging the football tournament. Auditors said that was inappropriate, because McKay was in charge of organizing such activities as district athletic director. When McKay retired in June, his annual salary was $87,732, not including a $2,800 longevity stipend.
"We believe that this $3,150 should be returned to the district," auditors reported. "Additional funds could be due from the Director, if further information can be obtained."
McKay's multiple hats created situations where he was the only person dealing with financial transactions between different entities.
As treasurer of the officials association, the audit found, McKay was billing the district for game officials, then approving those bills as athletic director. He then received the district's payment and deposited them as the treasurer for the officials group.
Garcia said McKay was directed to resign as treasurer of the group in 2002, and McKay complied. That situation never should have happened, Garcia said.
"He was the responsible authority who overstepped his authority," Garcia said.
School district General Counsel Bill Hoffman said it is clear in district policy that employees are to avoid entering outside employment that presents a conflict of interest with their district positions. It is the responsibility of the employee to seek clarification if they are in doubt. Hoffman said the district legal department provides employees with opinions on those matters.
"People who operate outside district regulations do so at their own jeopardy," Hoffman said. "Conflict of interest is a very clear obligation for all employees to understand."
Lack of internal controls
Auditors said internal controls in the athletics department were not adequate and that the most difficult obstacle to overcome in tracking Prep Classic funds was McKay's failure to document deposits and expenditures, as required by law and district policy.
That forced auditors to turn to third parties for transaction information. Discrepancies were found in check records, with a random review of 73 checks showing 11 had different payees on the canceled bank copies than were stated in McKay's ledgers. In six of those cases, the checks were written out to McKay himself or to his credit card account, which was used for Prep Classic expenses. Ledgers wrongly identified most of those six checks as money market transfers.
Legal sources said the check discrepancies and McKay's commingling of district and private funds may create problems with the Internal Revenue Service, which sets strict guidelines on how the finances of tax-exempt organizations are to be reported and maintained. The district wants that issue and the other questionable practices uncovered by auditors resolved quickly, Garcia said.
The commingling of district funds with The Big Time money is clearly a problem, Hoffman said, and it's a theme that runs throughout the audit. The Holiday Prep Classic is a district event and should have conducted business under the district's tax identification number. Hoffman said the situation may have to be resolved with the IRS.
Tax attorney Jay R. Cohen, who has practiced law in Las Vegas since 1991, called several facets of the audit unsettling. Before becoming an attorney, Cohen was an IRS auditor.
"It's inappropriate and could lead to significant penalties," Cohen said when asked about the problem presented by using one group's tax identification number for an unrelated activity. "And, although it's unlikely, it could jeopardize the protected (tax-exempt) status of the school district."
Cohen said the failure to maintain accurate records and supporting documentation is a concern. He also said the problem in reconciling the checks was a problem.
"If I had those things before me as an auditor, I'd be very interested in pursuing a review," Cohen said.
McKay said that, although he opened a Prep Classic account under the umbrella of The Big Time, funds were not combined. Two accounts existed: one for the Prep Classic, which has since been closed, and another for The Big Time.
McKay said he opened the account to write checks to pay vendors. When he ran the Prep Classic as a high school administrator, he used the school account for that, he said. But when he became a district administrator, no similar account existed. He could have submitted an invoice for payment that would have been processed through the district's Division of Business and Finance, but that resulted in complaints from vendors who had to wait 60 to 90 days for payment.
McKay said he did not approach anyone at the district about creating an athletic department checking account.
"It probably wasn't a good decision at the time," McKay said of creating a Prep Classic account under The Big Time tax identification number. "But it made the money accessible for doing business."
"We've been running this tournament the same way for 26 years, and no one has ever asked anything before about the way it's been run."
Hoffman said several steps have been taken to ensure problems uncovered by the audit are never repeated. A new athletic director has been named: Bill Garis, who was principal of Sierra Vista High School. A full-time accountant has been assigned to the district athletics department. The accountant will work with Garis, but Hoffman said the position reports to the Business and Finance office. And the district is conducting training for employees on financial rules and regulations, as well as their ethical obligations regarding conflicts of interest.
"As the superintendent has said, we're sending a very clear message, and have always sent a clear message, that if you mismanage funds, you're in trouble," Hoffman said. "It's a unique situation. It's a disappointing situation. We don't anticipate that it will happen again."
SCHOOL ATHLETICS: Financial practices assessed
Whistle-blower, energy study led to audit showing six-figure losses
By LISA KIM BACH
Two unrelated factors led to the internal audit that uncovered six-figure losses of public money and questionable financial practices in the Clark County School District's athletic department.
The first was a district employee who acted as a whistle-blower. The individual, who spoke to the Review-Journal on condition of anonymity, said he approached both a School Board member and Superintendent Carlos Garcia about former district Athletic Director Larry McKay's management of funds related to the Holiday Prep Classic, a district-sponsored winter basketball tournament that draws national participation, and the unequal treatment of teams that sign up to participate.
"All high schools in the CCSD are supposed to be equal in athletics, but some are more equal than others," the whistle-blower said. "That was a concern. I'm very satisfied that Mr. Garcia said he would look into this and that he did. It wasn't swept under the carpet."
The second area of concern was a district study of energy use, which showed excessive utility costs at schools during the winter and summer breaks, when buildings were closed. A district inquiry showed that athletic tournaments, such as the Holiday Prep Classic winter basketball event and The Big Time, a summer basketball tournament staged for college recruiters, were not bearing the costs of building operations, contrary to district policy.
"I know when I heard about this, I was in a state of shock," School Board member Shirley Barber said. "Something is wrong here. It didn't just start this year."
Garcia said that he has shared the audit with the district attorney's office and the Nevada Division of Criminal Investigations. Both entities are assisting school police in an ongoing inquiry.
The audit covered the past three years and found:
Documentation to substantiate receipts and deposits was not maintained as required in district policy by former district Athletic Director Larry McKay. Auditors cited this as their greatest obstacle in verifying financial reports.
Tournament financial reports filed with the National Federation of State High School Associations, which regulates events such as the Prep Classic, were significantly different from the records provided to auditors by McKay. Those reports addressed sponsorship fees, salary expenses, the cost of team travel, and room and board. The federation records show nearly $60,000 more in sponsorships than district ledgers indicate. Tournament income reported to the federation in 2000 and 2001 is $40,000 more than is shown in district books.
Costs for game officials and security were paid for out of the district athletic department's budget, not tournament funds. The event is supposed to be self-supporting. The audit shows the event lost money in each of the past three years.
A random review of 73 checks written on behalf of the Prep Classic showed that 11 canceled check copies provided by the bank had different payees than the payees listed in tournament records. In several cases, checks entered on the ledger as "money market transfers" showed up as payable to McKay in bank records.
The deposit of $38,930 in district funds into a Bank of America account for the Big Time Tournament. The Big Time, the nation's largest high school basketball summer event, is not a district event. While athletic director, McKay worked for the private Big Time tournament as a director.
In 2000 and 2001, $176,768.39 was charged on McKay's personal credit cards for the Prep Classic. However, the audit found that $198,089.19 was transferred from the tournament bank account to McKay's personal credit cards. In the audit, McKay agreed that he was overpaid, but said he made personal contributions that offset the overpayments.
Bill Hoffman, attorney for the district, said that corrective measures have already been put in place to prevent a repeat of such an event. That's something that's vital in assuring the public the district is handling its money properly, said Carole Vilardo, president of the Nevada Taxpayers Association. Corrective measures should include regular audits of departments that handle large amounts of money, she said.
"The onus is on the school district to set up procedures that will now be followed," Vilardo said. "The fact is, this tournament went on for 26 years. Thank God it wasn't another 26 years before this all came to light."
Vilardo also said that one person should never have sole authority over public monies, something the whistle-blower agreed with. Although how Prep Classic money is handled has long been questioned by those in the athletic community, the whistle-blower said individuals were reluctant to report McKay for fear their teams would be excluded from play or their campuses would not be used for tournaments, which generated significant income for schools that profited from the sale of concessions.
Hoffman said that training on the proper way to handle funds generated by sports and other activities began in June for school athletic directors and principals. He also said that a new district athletic director has been named and that a full-time accountant is now assigned to that department. The district does have a staff of auditors who regularly review district departments and schools.
"My big question is how did this happen," School Board President Sheila Moulton said. "Because it shouldn't have."
Moulton said that the audit will cause the board to re-examine its policies regarding finances and the administrative follow-up in making sure policies are enforced. Barber agreed.
"I feel like we failed," Barber said. "We are responsible for everything going on in the district. If we had been evaluating people and holding people accountable, we should have picked up on this long before now."
McKay's trouble won't affect Big Time, Vaccaro says
Summer tourney to go on in LV without longtime director, if necessary
By STEVE CARP
The Big Time Tournament will remain in Las Vegas for its 10th anniversary in 2004, Sonny Vaccaro said, with or without Larry McKay.
"Hopefully, it will be in Las Vegas forever," said Vaccaro, owner of the Big Time, the nation's largest prep summer basketball tournament.
"But, yes, the plan is to have it in Vegas, and as long as everything is OK, I want Larry McKay to run it. If Larry can't run it, I'll find an appropriate person to run it."
McKay has been the Big Time's tournament director since its inception in 1995. But he is being investigated by the Clark County School District for alleged improprieties involving funds from the Holiday Prep Classic, another prep basketball event he oversaw.
McKay, who retired as the district's director of athletics in June, said he would like to stay with the Big Time.
"Obviously, I have these issues that have to be resolved," he said. "But if it can get worked out, sure, I'd like to stay with Sonny."
Agustin Orci, the district's deputy superintendent for instruction, said staging the event at district schools this year is not in question, but he didn't know if McKay could participate.
"It's speculative at this point," Orci said Sunday. "We're currently in the process of reviewing all the procedures for handling tournaments in the future. Beyond that, it would be premature to comment on Larry's or anyone's participation."
In the district's internal audit report, officials claim approximately $39,000 of funds earmarked for the Holiday Prep Classic were deposited in a separate account that McKay used for the Big Time.
In addition, the audit claims McKay used $18,000 in funds from the Big Time's account to make short-term loans to the Southern Nevada Officials Association to help cover its payroll.
McKay refused comment on the funds in the Big Time account, and Vaccaro said he hasn't seen the audit.
The Big Time, which attracted a record 400 teams last July, will have a new sponsor, Reebok, when it is held July 22 to 26, Vaccaro said. He recently left shoe manufacturer adidas after 12 years and will work for Reebok as its director of grass-roots basketball.
Whoever runs the Big Time will be a salaried employee, Vaccaro said. McKay's arrangement the past nine years called for him to keep the profits generated after costs had been covered.
Vaccaro didn't know this year's numbers, he said, but two years ago the Big Time generated profits between $75,000 and $100,000. He said McKay divided the money with Green Valley High School boys basketball coach Jim Allen, tournament co-director, and David Pump, who also assisted in running the event.
"Larry's always operated as an independent contractor," Vaccaro said. "Larry collected all the fees, Larry paid all the bills, and anything that was left over was his. I never saw a dime from the tournament."
McKay confirmed the arrangement but wouldn't disclose how much he profited from the tournament or how the profits were divided, saying only, "Let's just say I didn't get rich off the Big Time."
Vaccaro said he learned of McKay's situation Thursday and that the two have spoken.
"I hope and pray that what Larry is is nothing more than a sloppy bookkeeper," Vaccaro said.
Vaccaro said he will negotiate and sign all contracts with the district to secure the 15 sites for next summer's Big Time. He said he paid the district $121,000 in rental-usage fees for the 2003 event to cover the costs for utilities and janitorial services.
That arrangement is expected to continue, but district officials said that Vaccaro can expect to pay a 2 percent increase to cover additional labor costs.
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