BOARD ACTION: February 22, 2017

Board Meeting Agenda:

Board Meeting Audio:

BLUE CARD Dawn Urbanek

Orbach Huff Suarez & Henderson: Legal Counsel to CUSD for Conflict of Interest Trustee Hatton-Hodson - Amended Contract PSA No. 1617153 Amount from $100,000.00 to $350,000.00 (an increase of $250,000). Trustee Hatton- Hodson should be responsible for her own legal fees pertaining to Conflict of Interest.

The Flippen Group: This contract was approved as part of the consent calendar without discussion at the November 16, 2016 Board of Trustees Meeting. Conflict of Interest with Trustee Hatton- Hodsons company InnovateEd. CUSD enters into contracts with every company that has associations with InnovateED. CUSD's contract with the Flippin Group is on page 67 of the November 16, 2016. It was approved as part of the Consent Calendar without discussion.


Trustee Lynn Hatton - Hodson owns a company, InnovateEd that is in the education field and provides professional development services to the education community.  

InnovateEd is "Systems Leadership Collaborative".  

Systems Leadership Collaborative, is led by ACSA, Fullan, InnovateEd, The Flippen Group, and Fagen, Friedman and Fulfrost. 

A Fair Political Practices Complaint was filed against Trustee Hatton-Hodson in August 2016 for a $10,000 check written to ACSA/Foundation for Education for participation in Systems Leadership Collaborative.

Systems Leadership Collaborative is one part of InnovateEd (Trustee Hatton-Hodsons company).

InnovateEd is also partners in LCAPca.


Trustee Hatton-Hodson failed to disclose her business interests in InnovateED, LCAPca and Systems Leadership Collaborative on her form 700. A complaint was filed with the District Attorney for Conflict of Interest, and a complaint was filed with the Fair Political Practices Commission for failure to disclose her business interests.

CUSD enters into contracts with every company InnovateEd is associated with. 

Trustee Hatton-Hodson failed to disclose her business interest in InnovateEd, Systems Leadership Collaborative and LCAPca on her form 700's. At the same time her business has grown from under $1 million dollars as stated on previous form 700's to its present $2.4 million because of her relationship with these firms and the EdTech companies they promote through Conferences and Professional Development Opportunities..

The basis of the complaint filed against Trustee Hatton-Hodson was a check in the amount of $10,000.00 written to the ASCA/Foundation for Education which has political PACS that fund advocacy for things like Prop 51, 55 and 57 using tax payer dollars.

The investigation is still on-going.

Trustee Hatton-Hodson has been absent from most Board meetings since, has had to recuse her self from votes when she was present, and it was announced at the January 25, 2017 Board meeting that she was on a medical leave of absence, and would not be returning to the Board until April 2017.

The InnovateEd web site states that the company is opening a Northern California Office soon, and Trustee Hatton-Hodson has purchased a ranch in northern California.

Legal fees for this investigation have been increased from $100,000 to $350,000.00.

Why is CUSD paying to defend Conflict of Interest charges against Trustee Hatton-Hodson. Filling out a form 700 is her personal responsibility.

Why is CUSD continuing to write checks to ASCA/Foundation for Education when it was determined by legal counsel that such payments were to be returned to CUSD, and any further participation with ACSA would be at no charge to CUSD. This month alone CUSD is paying ACSA/Foundation for Education $1,675.00?

Letter to District Attorney:

Fair Political Practices Complaint: Complaint Number is: COM-10172016-10573 


CUSD spends more on Professional Development/Conferences than it does on Books and Supplies.
No general fund monies should ever be spent on professional development when CUSD students have limited programming and facilities that have not been fixed or maintained and need a stated $889 million in repairs. CUSD receives State Grant money that is mandated to be spent on Professional Development and EdTechnology. CUSD spent $9,205.00 of General Fund money on Conferences/Professional Development this month alone.
Part of the investigation into Trustee Hatton-Hodson's Conflict of Interest is how the State is allocating funding. The goal of the Local Control Funding Formula was to eliminate mandated District spending and to allow the local school Board to determine how to best spend it's money to reach the education goals of a local district. 
Rather than increase LCFF per pupil money what California has done is create new "categorical funding" one time money that is mandated to be spent on Professional Development and EdTechnology. Money for these conferences and EdTech presentations are paid for with checks written by the District to foundations that then use taxpayer money to fund certain political positions. This is in fact a Racketeering scheme that is under investigation as well.
Checks written to CASBO etc are part of this racketeering scheme and take much needed funding away from the classroom to enrich employees, for profit Ed technology companies and all the organizations listed on the chart below.
Naviance - Student Data Mining without any ability to opt out because Naviance is embedded into CCP, a course required for graduation. page 9 of 479 $8,716.00 CUSD is spending hundreds of thousands of dollars to data mine students without parental consent. Naviance use to be a tool to help high school kids track their college applications- now CUSD is trying to claim that college readiness begins in Pre-K. When you track and collect personally identifiable data on an individual from Pre K on you are in fact using the public education system to build a dossier on students. 
The New Naviance: PreK to Adult-
Leasdership Associates: Executive Search Firm $12,400 + $4,725 + $34,110 = $66,735 this month alone- what Services are they providing? 
Toll Roads: $2,000.00? (never seen this before) page 9 of 479 
Forensic Analytical Consulting: Asbestos Abatement San Clemente High School. page 10 of 479.
The Orange County Grand Jury sent recommendations to Districts to immediately remove asbestos from Orange County Schools. As a result of this report, as well as complaints filed with the Federal EPA CUSD is finally starting to abate asbestos issues discovered back in the 1990's. School Bonds were approved by taxpayers to fund these repairs and maintenance but the money was not spent to complete all asbestos abatement.
Asbestos Abatement San Clemente High School. CUSD is building a new 24 classroom modular building that will not add any new capacity to the school and will loose 37 parking spaces so that they can move all students down to the lower campus. The upper campus will be left empty despite the fact that CUSD is way over legal capacity. The building being built is designed to withstand 70 mph winds (not 100 mph) we had wind gusts of up to 75 mph on February 18, 2017.