Keep The Doors Open for the Students

A. SB446 Notification Requirement NOT Met

1. The Charter School Division (CSD) failed to comply with the SB446 ACT notification regulation, in that the Health Sciences Academy (HSA) Governing Board NEVER received any notification from the Charter School Division of any concern(s). 

Excerpt from SB446 ACT that requires notifying the Governing Body:
“If, based on the performance review conducted by the chartering authority pursuant to Subsection D of this section, a charter school's fiscal, overall governance or student performance or legal compliance appears unsatisfactory, the chartering authority shall promptly notify the governing body of the charter school of the unsatisfactory review and provide reasonable opportunity for the governing body to remedy the problem...” (SB446, 22-8B-12, Section F, underlining supplied)


2. Mr. Matt Pahl, CSD interim director, by answering "yes" makes misrepresentations with regard to the SB446 notification requirement in the dialogue exchange (see below) with Chair Shearman, at the April 17, 2015 public meeting of the Public Education Commission (PEC).

Dialogue exchange:
THE CHAIR: All of the issues and concerns and complaints that have come to you and to members of this Commission, the school, the administrators, and the board members, are aware of those complaints and concern, are they not?

 MR. PAHL: Madam Chair, members of the Commission, yes.
(Transcript page 80 lines 17-24).

A similar dialogue exchange between Chair Shearman and Mr. Pahl occur later in the meeting:
THE CHAIR: I just wanted to be sure, in my own mind, that this is not the first time this school has heard that CSD, PED, and the Commission is aware of issues, concerns, and trouble at the school, that it's been an ongoing dialogue with the school, letting them know about these concerns.

MR. PAHL: Madam Chair, members of the Commission, that is correct.
(Transcript page 81 lines 13-23)

3. FACT. The truth is that the HSA Governing Board NEVER received any notification from the Charter School Division of any concerns, in accordance with the SB446 requirement. The last communication from Mr. Pahl to Mr. Nevins (GB president) was on July 16, 2014. No report was provided to the GB after the CSD site visit in March 2015, despite a request from Mr. Nevins.

 4. Important Memo from Mr. Pahl to Secretary of Education: No copy, or prior notification of this very serious recommendation to revoke HSA's charter, was provided to school administration or Governing Board. Mr. Nevins received a copy from Ms. Lewis on April 23, 2015. Incidentally, Mr. Pahl's memo is dated March 17, prior to the CSD site visit to the school which took place on March 18 and 19, 2015.
March 17, 2015 Memo to Secretary of Education from CSD. 

5. In each of the following transcript references, referred to as a matter of concern by Mr. Pahl, no prior notification or communication was provided to the Governing Board. In one instance, Mr. Pahl states that "we did notify the school". SB446 specifically states that "the chartering authority shall promptly notify the governing body," There is no indication in any of Mr. Pahl's statements to the Commission on April 17 that he brought these concerns to the board.
  • Transcript page 53 line 25 to page 54 line 9: CSD never notified the board after a phone call of concern made to to CSD; CSD states that they notified the HSA administrator, but they did not notify the Governing Board as obliged.
  • Transcript Pages 57 line 12 to page 63 line 19: Audit findings of concern discussed here were never reported or communicated to the Governing Board.
  • Transcript page 63 lines 11-16: CSD seems ready to notify the state auditor, but never ever notified the Governing Board about stated concerns.
  • Transcript page 72 lines 2-8 : Again, CSD seems ready to notify the state auditor, but never ever notified the Governing Board about stated concerns.
  • Transcript page 81 line 25 to page 82 line 21 Mr. Pahl says “we did notify the school”, but as noted earlier, CSD obligation is to notify the governing body.
6. On or about April 9, 2015, Mr. Nevins became aware that HSA was on the PEC agenda for April 17; Mr. Nevins tried repeatedly to contact Mr. Pahl and his staff, and was finally able to arrange a conference call with CSD on April 14, at which time he was first made aware of the enrollment concerns. Ms. Wiggins addresses these concerns in a letter to the PEC. 

 It should be noted here that Mr. Nevins, not Mr. Pahl, initiated the communication; again, no notification was provided to the Governing Board as required.
Wiggins to PEC 04.16.15 -Wiggins addresses concerns in a letter to PEC, which were also read into the record: Transcript page 107 lines 19 to page 110 line 18.

7. Documentary Evidence: 
     a. The following partial email record demonstrates that Mr. Nevins always took the initiative to communicate with CSD for answers and guidance. 
Email 1  August 2014. Mr. Nevins requests board members and administrators to inquire of CSD the reason HSA is on the PEC agenda.
Email 2  October 2014. Mr. Nevins inquires CSD about scheduling a site visit at HSA. 
Email 3  November 2014. Mr. Nevins invites Mr. Pahl to meet new administrator 
Email 4  November 2014. Mr. Nevins invites CSD staff to meet new administrator
Email 5  December 2014. Requests conference call with CSD staff to dialogue with new administrator
Email 6  February 2015. Woodd replies to Nevins query that his primary contact is administrator
Email 7  March 2015. Nevins looks forward to receiving site visit report
Email 8  April 8-9, 2015. Request for clarification of concerns and conference call

     b. The Governing Board took the initiative to respond, via its attorney, to the PEC whenever they heard INDIRECTLY that HSA was a school of concern on the PEC agenda. CSD did not notify HSA Governing Board either before or after PEC meetings about concerns.
Wiggins to PEC 09.22.14
Wiggins to PEC 04.16.15

B. Conflicts of Interest 

1. Conflicts of interest, according, to Mr. Daniel Hill, appears not to be a concern anymore. However, concerns about conflicts of interest with HSA board members and Healthy Futures are addressed below:

Transcript page 74 lines 11-13.“The conflicts of interest, the student enrollment concerns, appear to be activities that have stopped, or are not ongoing.”

2. No conflicts of interest exist between HSA board members and Healthy Futures (HFI)
No HSA GB members have a financial interest in Healthy Futures, as defined by the NM procurement code tests.

3. The State Procurement Code defines "financial interest"
13-1-57. Definition; financial interest. "Financial interest" means: A. holding a position in a business as officer, director, trustee or partner or holding any position in management; or B. ownership of more than five percent interest in a business 

4. Former board member Ms. Carmen Burciaga disclosed her potential employment with Healthy Futures as director of HSA food services at a board meeting on September 2, 2015; based on such disclosure a resolution of the board was duly passed. Ms. Burciaga was not financially compensated for her work until after the board resolution had been approved. Subsequently, Ms. Burciaga resigned from the HSA board in October 2014. Ms. Burciaga was a consultant for Healthy Futures and not the school. After receiving legal counsel, a resolution of the board of HSA regarding board member participation in and ratification of procurement of services was approved at September 2, 2015 board meeting. The board action did in fact have a quorum, as Ms. Perla Castillo was approved at the September 2 meeting as a new board member.

 Statements made re Ms. Burciaga's conflict of interest:
Transcript page 60 lines 17-25
Transcript page 69 lines 2-5

Documentary Evidence:
5. The statement that board member Nancy Duhigg serves on both the Health Sciences Academy and Healthy Futures boards is incorrect. Ms. Duhigg resigned from the Healthy Futures board in April 2014.
          
            Transcript Page 59, line 18. states Ms. Duhigg served on both HSA and HFI boards

Documentary Evidence:
HFI minutes April 3, 2014. Duhigg resigns at Healthy Futures Board meeting
HFI President Eby letter to Natelson. Confirms Duhigg on on HFI board or officer
Natelson Fiemann letter May 8, 2014. No conflict of interest between HSA & HFI re property lease
Healthy Futures Corporate Registration with Secretary of State

6. Raphael Nevins and/or his spouse Lorna Samraj are not board members, officers or managers of Healthy Futures. Ms. Samraj resigned as President in April 2014. Ms. Samraj has never used her personal credit card to make purchases related to HSA. Ms. Samraj took minutes of meetings twice during the entire school year, when the secretary could not be present--an issue we don't believe is a concern.

Statements made re Ms. Samraj's conflict of interest:
Transcript page 60 lines 8-16 (signed contract as an agent, does not prepare minutes)
Transcript page 68 lines 13-24
Transcript page 94 lines 2-6

Documentary Evidence:
HFI minutes April 3, 2014. Samraj resigns at Healthy Futures Board meeting
HFI President Eby letter to Natelson. Confirms Samraj not on HFI board or officer.
Natelson Fiemann letter May 8, 2014. No conflict of interest between HSA & HFI re property lease
Healthy Futures Corporate Registration with Secretary of State
           
7. Property Lease and Loan Contracts
Negotiations of contracts with Health Sciences Academy, Healthy Futures, Charter Schools Development Corporation, and Worthington Property Investments LLC took place between February and June 2014 with due diligence done by all parties, until all concerns and questions were answered. Documents were reviewed by all boards and legal representatives of all parties, including HSA's business manager, and Ms. Abby Lewis, legal counsel to Public Education Commission, before the signing of contracts in June 2014.

Natelson Fiemann letter May 8, 2014. - Natelson confirms approval of loan documents: 
“I am advising you that Ms. Lewis has completed her review of the Conflicts of Interest Questionnaire inclusive of all exhibits that were provided to her.
On May 5th, she called me to advise me that the ten (10) day period within which she had to serve notice of any objections or request for more information expired as of May 5th and that as a consequence the application is deemed acceptable and thus approved without any further action on her part.
I am providing this letter to you with a copy to Ms. Lewis so if you have any questions regarding the representations made in this letter, you can contact her (or me) directly.”


Natelson PEC Chair letter March 3, 2014 - Natelson outlines purpose of HSA-HFI relationship to PEC Chair Shearman: NM law prohibits charter schools from functioning as non-profit entities, and further, the laws and regulations prohibit charter schools from borrowing any funds, or from renting from a for-profit agency. Natelson confirms transparency of Healthy Futures.

C. BOARD / GOVERNANCE ACTIVITY

1. Firing of a HSA Teacher
With respect to the teacher that Mr. Pahl says was fired, it is important to note that this teacher violated the sanctity of the 7th grade classroom by engaging in romantic discretions observed by students. This behavior is a disgrace to the teaching profession, and professional ethics. Further, these acts were a profound breach of the trusting relationships so critical to the development of positive relationships between child and teacher, that Mr. Nevins and other members of the GB had no other choice but to act swiftly, after consultation with legal consul. The teacher voluntarily left the building.


Transcript page 57 line 17 to line 22. CSD receives a phone call of concern, but does not notify the Governing Board
Transcript page 82 lines 17-19
“Mr. Nevins was involved in one personnel matter during a leadership transition, after he was informed of what appeared to be questionable conduct by HSA staff that occurred in front of HSA students. The matter was resolved in consultation with Mr. Montano, the new administrator, counsel, and the governing board.” 


2. HSA Board did not Fire Four (or any) Administrators
To set the record straight, Mr. Archuleta and Mr. Montano are the only TWO who served since HSA opened on August 4, 2014.

CSD misrepresents that HSA has had four administrators, and that the board fired all four of them. 

Transcript page 61 lines 12-13. Mr. Ron Haugen, HSA's first intended administrator resigned on May 31, 2014 due to health reasons and never served as administrator; Ms. Janet Goldsbury, served for two weeks prior to the opening of school and resigned on July 31, 2015; Mr. Tony Archuleta, hired temporarily through ACES, ended his contract on November 13, 2014; Mr. Jacob Montano began his administrative duties on December 1, 2014.

Transcript page 88 lines 10- 12. Incorrect representation
Transcript page 91 line 24. No HSA administrators were fired by the board.
Transcript page 99 lines 16-18. Incorrect representation
3. Alleged Financial Irregularities
The expectation by CSD that every invoice and PO must be approved by the GB is incorrect. As PEC is aware, all payments to GB and other persons must be reviewed and approved by the administrator and vetted and reviewed once again by HSA's business manager, the Vigil Group, under the supervision of veteran CPA Michael Vigil. GB members do not have access to HSA's bank account, the only way payments can be made is if it is approved by the administrator and business manager. 

Further, audit findings or any other alleged irregularities discussed in the transcript were never communicated to the Governing Board by CSD at any time.
Transcript Pages 57 line 12 to page 63 line 19. 
Transcript page 62 lines 2-7. 
Transcript page 58 lines 16-21 The GB approved the travel reimbursement policy and do not think it's a problem to reimburse it's members at a lower rate than employees.
Transcript page 59 lines 3-7. Travel reimbursements to Mr. Nevins were connected with travel to attend GB meetings.
Wiggins to Shearman Letter April 16, 2015. addresses financial concerns

4. Application of Grants
Transcript page 63 lines 1-10. CSD misrepresents that grant applications by Healthy Futures to benefit HSA were without HSA board approval.

Documentary Evidence:
HSA Minutes March 2, 2015 confirms board approval
HSA Minutes February 2, 2015 confirms board approval
Natelson PEC Chair letter March 3, 2014 confirms transparency of Healthy Futures and outlines relationship between HSA and Healthy Futures.

5. Open Meetings Act
Transcript page 59 lines 8-17. 
Re statement that HSA board did not meet the requirements for March 12 special meeting -- the March 12, 2015 meeting did NOT take place.

Meeting notices/agendas were always posted on HSA website and on the front door of HSA building prior to the meetings. Email exchanges between GB president and HSA administrative assistant confirm this. CSD did not request to clarify this information.

6. Board Constitution
Transcript page 95 lines 16-25 Incorrect statements implying lack of local representation on the HSA board.

HSA has a board of seven members. During the charter application process, a majority of members did not reside locally; however, it was always the intent of the founders to transition to a board that included local representation. By October and early November of 2014, the board added four members who are local parents and/or relatives of students attending HSA, as well as outstanding individuals in the community.

 Good attendance at GB meetings. From November 2014 to April 2015, the average attendance of members at GB meetings is 5.7 members. 

 Growing and thriving community interest in HSA. Individuals from the local community are interested and involved. During the school year, in excess of 50 persons signed the community sign-in sheet at GB meetings.

D. STUDENT ENROLLMENT

1. The Governing Board was never informed of CSD's concerns about student enrollment issues. Once the board was made aware of the issue, the GB acted immediately to correct this.

In any event, according, to Mr. Daniel Hill, this appears to not be a concern anymore.
“The conflicts of interest, the student enrollment concerns, appear to be activities that have stopped, or are not ongoing.”
Transcript page 74 lines 11-13.

Wiggins to Shearman Letter April 16, 2015. - Wiggins addresses concerns in a letter to PEC