On Wednesday, the Antioch Unified School District will discuss a resolution for the issuance of a “Notice of Violation” to the “East Bay Tech Academies” Middle School and High School.
The move comes after a May 9, 2018 approval of the East Bay Tech Academies in a 3-2 vote with Walter Ruehlig, Debra Vinson and Crystal Sawyer-White in support and Diane Gibson-Gray and Gary Hack dissenting.
Several months later, AUSD staff says the East Bay Tech Academies violated the Education Code by:
- Committed a material violation of any condition, standards, or procedures set forth in the charter.
- Failed to meet generally accepted accounting principles, or engaged in fiscal mismanagement
- Violated any provision of the law.
According to the 121-page Staff Report, the District plans to serve a letter notifying the East Bay Tech Academy Antioch Middle School and East Bay Tech Academy High School (EBTA) to allow them to refute and/or remedy the violations.
The report focuses on the involved of David Linzey who EBTA legal representative John Lemmo and Co-Petitioner Bill Morones affirmed he would have or has “no affiliation” with EBTA
On October 17, the Contra Costa County Board of Education (County Board) reviewed a report of a forensic audit conducted by CVCHS which concluded that CVCHS had paid “in excess of $40,000” in legal fees for EBTA “identified on invoices for the time period from December 2017 to June 18th.” The report further recommended that “if the fees were for the formation of the EBTA charter or the MOU between EBTA and Antioch, the fees should be disputed.” The County Board reviewed a response from CVCHS to the audit report which confirms that:
The Board had been working with the newly formed EBTA Board to codify in writing an agreement for EBTA to pay back CVCHS for the fees associated with EBTA but paid for by CVCHS.
The staff report continued highlighting how Mr. Linzey’s October 1 letter to Trustee Jeff Belle acknowledges CVCHS involvement with EBTA and the payment of their legal fees. Meanwhile, the EBTA Middle School and High School petitions and budget documents presented to the Board did not include any reference to CVCHS payments of EBTA legal fees by direct payment, reimbursement, gift, loan or otherwise.
According to Section A, the District is challenging the CVCHS payment of EBTA legal fees saying it has potential civil liability effects and the fees violated the law because a charter school is considered public funds. The District stats that CVCHS undisclosed the payment and say the attorney fees were an improper gift of public funds—saying the gift of $40,000 far exceeds the current limit of $470.
According to Section B, the District says they were provided Material Misrepresentation to the Board where EBTA petitioners and/or their representatives made material representations and/or misleading statements at the May 9 Board meeting. The report points out AUSD was told Mr. Linzey had no affiliation with EBTA, however, a forensic and letters to Jeff Belle state otherwise. The District also said if the Board knew of Mr. Linzey involvement, it would be highly unlikely the AUSD Board would have approved the Charter Schools.
According to Section C, Lack of Financial Transparency in EBTA Petitions which highlight how both the Middle School and High School petitions violated education code regarding potential civil liability effects, and engaged in fiscal management, by concealing the start-up legal costs “in excess of $40,000” paid for by CVCHS. A forensic audit also connects Mr. Linzey to be involved in the payment of legal fees and no reference such as costs or funding in the documents submitted to the Board in support of EBTA petitions. The staff report also highlights how these material omissions are further contradicted by Mr. Lemmo’s verbal assurance to the Board on May 9 that EBTA would be “fully transparent” with regard to all of its finances.
If the Board approves the Notice of Violations, the Charter School will have 30-days to respond. Once the Charter School responds, the Board will evaluate the response and consider whether to proceed with revocation of the Charters.
If you go:
Antioch Unified School District Board of Trustee Meeting
Location: Lone Tree Elementary School
1931 Mokelumne Drive, Antioch, CA 94531
Recognition’s: 6:30 p.m.
Closed Session: 6:40 p.m.
Open Session: 7:00 p.m.
Staff Report
