School board continues investigation of Clayton Valley Charter Highmanagement

Staff recommends referring some issues, including former leaders’ salaries, to DA

After a contentious discussion that lasted roughly two hours, the Contra Costa County Board of Education decided Wednesday night to continue investigating the possible misuse of funds at and alleged mismanagement of Clayton Valley CharterHigh School in Concord.

A recent audit by the county found that the married former top leaders of the school made almost $850,000 in less than two years before leaving in the spring, secretly hired people and created positions without the school board’s approval.

Among the staff recommendations at the county office of educationwas to refer some issues — including the salaries of former executive director David Linzey and his wife, Eileen Linzey, the former chief programofficer — to the district attorney’s office to potentially evaluate whether any use of funds violated the law.

“The individual and combined salary of the (executive director) andhiswifeappear to represent the potential for the substantially improper use of charter school funds for the personal benefit of any officer,” a staff memo to the board said.

David Linzey’s salary totaled $312,212 annually for managing the school — a salary that county education staff said exceeded the pay of most superintendents in Contra Costa County who oversee more students, schools and staff than Clayton Valley. Eileen Linzey, who was hired to fill the other top job at the school in early 2017, was paid ayearly salaryof $223,392— alsomore than whatmost of the county’s superintendents make.

The audit also found that Eileen Linzey was hired without the school posting the job internally and externally and noted that she reported to the executive director, her husband. However, Clayton Valley’s board members have disputed that, saying she reported directly to them.

An amendment to David Linzey’s contract added health benefit payments and a car allowance to his base salary, prompting county staff to recommend submitting a compensation summary to the California State Teachers’ Retirement System to determine if benefit “spiking” — using benefit payments to boost the overall salary base inan effort to raise the retirement payout — had occurred.

In an email, David Linzey issued a statement saying, “CVCHS fully compliedwith all laws regarding the contracting of its administrators. CVCHS complied with the Brown Act as well as The Political Reform Act, which charter schools are required to follow. CVCHS followed all conflict of interest policies. The staff and administration of CVCHS worked very hard to produce the outstanding results CVCHS posted throughout the years and the Board rewards hard work with good compensation.”

Also to be referred to the district attorney’s office was the hiring of Concord City Councilman Ron Leone for an “assistant superintendent” position at the school. The position was created and filled without board approval or job posting, the audit found. Leone took the job in December 2017 through the first half of 2018 for $681 a day while running for county superintendent of schools. After failing to win the seat in the June primary, Leone resigned from the position.

His hiring created “the possibility of expending charter funds for political purposes,” the staff memo said.

“I was offered a job by Clayton Valley High Charter School for the semester, I took it, and completed the assignment,” Leone said in an email Wednesday. “If anythingwas done by the school thatwas inappropriate, itwas not tomy knowledge.”

Jim Scheible, who was hired as Clayton Valley’s executive director over the summer afterDavid Linzey’s departure, said the school’s governing board had, as of this week, complied or planned to comply with the 22 recommendations in the county audit by the firm Christy White Associates. That has included a compensation study— Scheible’s salary totals $175,000 annually, which county staff says is within 1 percent of the average salary for comparable positions — and a plan for the board to evaluate the executive director annually.

The Clayton Valley board also is working with the newly formed board of the East Bay Tech Academy to get its legal fees for setting up the new school reimbursed. County staff had determined the feeswere not an appropriate use of Clayton Valley’s funds. Although the audit found $40,000was paid in legal fees, Scheible contends the actual amount was $19,000.

The Clayton Valley board has said that in May, the Linzeys were both put on paid administrative leave until their contracts end in the summer of 2019, which is not reflected in any board minutes. Neither Clayton Valley board chairwoman Kristy Downs nor Scheible would confirm Thursday whether the Linzeys are still being paid on administrative leave. According to the audit, the Linzeys both resigned in July.

At the county meeting Wednesday, Downs said the Clayton Valley board was involved in an “active investigation” into potential charges against David Linzey that include creating a hostile work environment, conflict of interest and fiscal mismanagement.

David Linzey said in an email that he was not contacted or interviewed by anyone about those complaints and that they are not true. “I have retired and moved on from Clayton Valley,” he said.

The recent audit is not the first county investigation into Clayton Valley’s management. In 2015, the county spent $230,000 auditing practices and management at the school. County staff pointed out in its memo that some problems identified then have continued, including lack of controls over credit card use. The recent audit found that itemized receipts were not being kept, among other issues.

Clayton Valley changed its bylaws in 2017— without approval from the county board — to require potential board candidates to be screened by a committee led by the former executive director. When three board trustee positions opened this summer before the terms ended, one ultimately went toMegan Kommer, who had been a boardmember previously through 2016.

“That would raise a red flag for me to invite someone fromthe previous board knowing that the scope (of the current investigation) might include a time they were on the board,” Alleyne said. “In my opinion, that is not the right step moving forward to show the public you are listening.”

In the motion to approve the audit’s findings and refer parts of it for further investigation, including to the district attorney’s office, only county board member Jeff Belle dissented. Belle insisted that David Linzey should be allowed “due process” since he had disputed the report’s findings in a letter to Belle.

David Linzey said in the letter that it was not inappropriate to use funds for the new charter school because the initial plan was for the two schools to be connected. He did not attend Wednesday’s county boardmeeting.

The district attorney’s office can review the referral from the board and decide whether to file any charges. Currently, ClaytonValley has hired a firm, Van Dermyden Maddux, to do an internal audit. The county education board asked Clayton Valley board and staff to return with their findings.