School Board actions prompt questions about transparency, timeline

A state expert said it looks like the Wayne County Board of Education violated North Carolina Open Meetings Law multiple times this week, on its way to accepting the resignation of Superintendent Dr. Michael Dunsmore, hiring Interim Superintendent Dr. James Merrill and contracting with School Operations Specialists LLC to help the district get its financial house in order.

From not providing the media or the public with an accurate agenda and then, altering the agenda mid-meeting on several occasions to discussing bringing on Merrill and School Operations Specialists, board members likely violated requirements spelled out in N.C. General Statue 143-318.12, said Amanda Martin, general counsel for the North Carolina Press Association.

Here’s what happened, and why it’s a problem:

• When the school district announced the June 2 “Special Called Meeting” on May 31, the law required that “the public body shall cause written notice of the meeting stating its purpose.” But the agenda provided to the media only listed two items: “Closed session to consult with legal counsel and for personnel” and “2020-2021 Local Budget – (Open Session).”

The agenda made no mention that the district’s independent auditor had been asked to come and present the findings from WCPS’s 2019 audit.

Board chairman Chris West acknowledged the omission at the beginning of the June 2 session.

“We’re going to deviate from the agenda a little,” he said, turning to board attorney Richard Schwartz. “Mr. Schwartz, do you want to have (auditor Diana) Hardy first?”

The attorney responded that the audit should have been on the agenda.

“That’s what’s on this,” West said, holding up a piece of paper. “But it’s not in our BoardDocs.”

Here is a screenshot of the agenda that was and still is posted on BoardDocs:

“You need a motion to amend the agenda to add item 3b, ‘Presentation of Fiscal Year 2019 audit,” Schwartz said.

The board voted to amend the docket.

“I don’t think that’s good enough,” Martin said.

• After the audit presentation, the board held a nearly two-hour closed session. When they came out of the session, they, again, amended the agenda in violation of General Statute — adding three items.

“I think you need to change, under ‘Board Action,’ add, as 4b, ‘Personnel action,’ and, under 4c, ‘Response to Fiscal Year 19 audit,’” Schwartz said.

Board member Patricia Burden asked about additional changes.

“And you changed 2b to … ?” she asked.

“From ‘General personnel report’ to ‘Confidential personnel matters,’” Schwartz replied. “You now need a motion to amend the (agenda) by adding a new 4b as ‘Personnel action’ and a new 4c as ‘Response to Fiscal Year audit.’”

The board, again, voted to do so.

“I think that’s all you need,” Schwartz said.

But Martin argues that adding items to the agenda violates the public’s right to know what is being discussed at a special meeting — and the notice required by statute.

The idea is that the public might want to be present for the discussion.

“Special meetings have to take place after the public is given 48 hours notice of when, where and what,” Martin said. “So, it doesn’t use the language ‘agenda,’ but it essentially says they need to provide notice of what’s going to be under discussion.”

• The June 2 meeting would end up being recessed until the following day. Proper notice was given to the public, but an amended agenda was not, again a violation of the public’s right to know.

The board started the June 3 meeting two hours later than indicated on the public notice, which is also problematic.

But a much more serious issue surfaced when, after beginning their meeting with yet another closed session, board members emerged to announce Dunsmore’s resignation, the hiring of Merrill as interim superintendent and the approval of a deal to contract with School Operations Specialists LLC.

Discussing Dunsmore’s employment status in closed session is legally sound. But Martin said notice should have been given that discussing who might replace him would be happening.

“It may have been legal to discuss the interim superintendent hiring in a closed session, but the world needed to be on notice that that was a topic for discussion,” she said.

But more egregious than that was discussion of School Operations Specialists LLC’s possible role in helping WCPS get its financial house in order, she added, as employment of independent contractors is a subject not permitted in closed session.

“I don’t think any of that (regarding School Operations Specialists) is legal,” Martin said. “It sounds to me as if almost everything about the consulting contract was done in violation of Open Meetings Law.”

All the secrecy and closed session discussion prompt questions about just how long the board has known that Dunsmore would ultimately no longer be in charge of the district and that an interim superintendent and consulting team would be hired.

On May 28, WCPS officials and West denied knowledge of a change in the superintendent’s job status when questioned by the New Old North after several sources said information had come to light about the district’s financial health and that Dunsmore and Finance Officer Michael Hayes’ jobs were in jeopardy.

And if West’s statements were true, and it took the June 2 audit report to trigger final action on Dunsmore’s resignation, how did the board find, interview, meet and retain Merrill and School Operations Specialists — and negotiate compensation and draw up contracts — so quickly, all while dealing with Dunsmore’s “sudden” resignation?

So, we did some digging, and found a few things out. Here are some of them:

• School Operations Specialists doesn’t have a website, but the limited liability corporation is registered with the N.C. Secretary of State’s Office. The LLC has only been in existence since February 2020. The owner is listed as Aaron Beaulieu, a former chief financial officer and interim superintendent of Durham Public Schools.

• The contract states that Beaulieu would “manage” the $41,000 effort but would be “supported by various subcontractors with school finance experience and the DavenportLawrence (an advisory firm) team with high level experience in cost reduction and revenue enhancement … with governmental agencies.”

• Although $41,000 is listed as the maximum cost, the contract notes that “based on initial findings, additional services may be identified or required.”

Here’s the contract:

• Beaulieu’s stint as Durham’s interim superintendent overlaps with Merrill’s time as neighboring Wake County’s superintendent.

• Beaulieu and WCPS’ board attorney, Richard Schwartz, were both involved with Public School Forum of North Carolina, a “nonpartisan champion of better schools” a few years ago.

A call to board chairman Chris West for comment on this story has not been returned.