James Nevels, chairman of the Philadelphia School Reform Commission, this week denied knowledge of a contract amendment he signed in 2005 essentially guaranteeing Edison Schools Inc. $1.6 million in extra compensation…. The amendment fixed the company's fee for managing 20 schools during last year and this year at $750 multiplied by 12,591 students. Because enrollment at Edison's schools has dipped to 10,395 students this year, the amendment guarantees the company $1.6 million more than it would have gotten without the change…. Thus, the company will earn $9.4 million this year instead of $7.8 million….

Nevels, founder and chairman of the Swarthmore Group, a Center City investment adviser with $1.51 billion under its management, said he signs so many documents as SRC chairman that he can't be expected to remember each one…. Nevels said he could not recall having being told of the arrangement with Edison, a New York-based for-profit company. And he said a May 25, 2005, resolution that authorized changes to the contract had not addressed fixing the company's fee, as the amendment did.

He is not alone…. SRC member Sandra Dungee Glenn said she also had not known that Edison's fee had been changed. And yesterday, SRC member Martin Bednarek criticized the move, and said he also had not known about it…. "I can't help that they have less students. That's not our fault. Maybe they need to do a better job of marketing themselves like the charter schools to get kids to go their schools," he added.

The SRC is deliberating whether to renew the contracts of Edison and five other school-management organizations. Their five-year contracts end June 30.

Mensah H. Dean, Philadelphia Daily News, March 16.