Alum Rock School District Board: Time To Put ‘Trust’ Back In Trustee

Conclusions 14

• CL1 Page 20
  Alum Rock Union Elementary School District Board Trustees Herrera, Marquez and Tran, by action and/or inaction, have subjected the District to financial peril, public scorn and distrust.
• CL2 Page 20
  District’s legal counsel concluded that Measure I and Measure J Construction Management contracts between the District and Del Terra likely violate Government Code Section 1090.
• CL3 Page 20
  The District does not consistently use best practices in awarding contracts.
• CL4 Page 21
  Using the same contractor for both Construction Management and Program Management is not an accepted best practice and, according to the District’s legal consultant, can put the District in financial and legal jeopardy.15
• CL5 Page 21
  The Board has repeatedly not followed the Brown Act requirements.
• CL6 Page 21
  The Board failed to follow their own Board By-Laws on numerous occasions.
• CL7 Page 22
  The Grand Jury commends District Superintendent Bauer for persevering during her four years while staying committed to improving student education and parental involvement.
• CL8 Page 21
  The Board did not adequately vet all applicants in the selection of the current General Counsel. 15 Legal memorandum, Nov. 8, 2017, from Rogelio Ruiz to District Superintendent; https://www.mercurynews.com/2017/11/16/del-terra-contracts-illegal-alum-rocks-own-attorney-tells-its- board/
• CL9 Page 22
  The Grand Jury commends Trustees Quintero and Martinez for their continuing efforts to steer the Board in a positive direction. REQUIRED RESPONSES Pursuant to Penal Code sections 933 and 933.05, the Grand Jury requests responses as follows: From the following governing bodies: Responding Agency Finding Recommendation Alum Rock Union Elementary School District 1, 2, 3, 4, 5, 6, 7 1a, 1b, 2, 3, 4, 5, 6, 7 From the following individuals: Responding Individual Finding Recommendation Alum Rock Union Elementary School District 1, 2, 3, 4, 5, 6, 7 1a, 1b, 2, 3, 4, 5, 6, 7 Trustee Esau Herrera Alum Rock Union Elementary School District 1, 2, 3, 4, 5, 6, 7 1a, 1b, 2, 3, 4, 5, 6, 7 Trustee Dolores Marquez Alum Rock Union Elementary School District 1, 2, 3, 4, 5, 6, 7 1a, 1b, 2, 3, 4, 5, 6, 7 Trustee Khanh Tran
• CL10 Page 18
  The Grand Jury through research and interviews concluded that the three-Trustee bloc of Herrera, Marquez and Tran has failed to adequately fulfill their fiduciary duties and governance responsibilities to the Alum Rock Union Elementary School District. The District’s many challenges have been made worse by the actions and inactions of these Trustees. Since the Grand Jury started attending Board meetings, more than 100 parents and residents appear at almost every meeting to demand improvements. Residents who attend the meetings seek the resignations of the bloc of three trustees, the termination of the Del Terra contracts and the retention of the current District Superintendent. The Board has been presented with credible evidence that its relationship with Del Terra is not serving the best interests of the District. Persons or agencies investigating or critical of the Board include:  District Chief Business Officer  Ryland School Business Consulting  Santa Clara County Office of Education  State Fiscal Crisis Management Assistance Team  District legal consultant  Securities and Exchange Commission 14 https://www.arusd.org/cms/lib/CA01001158/Centricity/Domain/23/SandP.ARUSD.841329.pdf
• CL11 Page 19
   S&P Global Ratings  Various elected officials All of the issues discussed in this report demonstrate the mismanagement by the Board, controlled by the three-Trustee bloc, and show that significant changes are needed to put trust back into the Trustees.
• CL12 Page 20
  FINDINGS AND RECOMMENDATIONS Finding 1 Alum Rock Union Elementary School District Board Trustees Herrera, Marquez and Tran, by action and/or inaction, have subjected the District to financial peril, public scorn and distrust. Recommendation 1 Trustees Herrera, Marquez and Tran should immediately resign their positions on the Board. Finding 2 District’s legal counsel concluded that Measure I and Measure J Construction Management contracts between the District and Del Terra likely violate Government Code Section 1090. Recommendation 2a The Board should terminate the Measure I and Measure J Construction Management contracts between the District and Del Terra by Oct. 1, 2018. Recommendation 2b The District should retain an outside legal consultant by Oct. 1, 2018, to consider options to evaluate remedies against Del Terra. Finding 3 The District does not consistently use best practices in awarding contracts. Recommendation 3 The District should immediately begin using competitive bidding (e.g., RFP/RFQ) for all construction projects and professional services.
• CL13 Page 21
  Finding 4 Using the same contractor for both Construction Management and Program Management is not an accepted best practice and, according to the District’s legal consultant, can put the District in financial and legal jeopardy.15 Recommendation 4a The District should enact a Board policy prohibiting the award of future Construction Management and Program Management contracts to the same company, by Dec. 1, 2018. Recommendation 4b The District should award all future Construction Management and Program Management contracts to unrelated contractors. Finding 5 The Board has repeatedly not followed the Brown Act requirements. Recommendation 5 The Board should obtain comprehensive Brown Act training from a qualified third party, by Dec. 31, 2018, and within 30 days of the swearing in of new Trustees. Finding 6 The Board failed to follow their own Board By-Laws on numerous occasions. Recommendation 6 All current Board members should sign a declaration saying they have read, understood and will comply with the Board’s By-Laws, and any subsequent revisions, by Sept. 30, 2018. Future Trustees should sign the same declaration within 30 days of their swearing in. Finding 7 The Board did not adequately vet all applicants in the selection of the current General Counsel. 15 Legal memorandum, Nov. 8, 2017, from Rogelio Ruiz to District Superintendent; https://www.mercurynews.com/2017/11/16/del-terra-contracts-illegal-alum-rocks-own-attorney-tells-its- board/
• CL14 Page 22
  Recommendation 7 The Board should terminate the contract with its General Counsel and use a competitive process (RFP/RFQ) that includes a proper vetting mechanism to hire new General Counsel, by Dec. 31, 2018. Finding 8 The Grand Jury commends District Superintendent Bauer for persevering during her four years while staying committed to improving student education and parental involvement. Finding 9 The Grand Jury commends Trustees Quintero and Martinez for their continuing efforts to steer the Board in a positive direction.

Agency Responses 1

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No Responses Found 1

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