A Placer County grand jury report slams Lincoln's Western Placer Unified School District for numerous errors and misjudgments in the design, funding and construction of new schools.
The grand jury blames district trustees and administrators for a decade of poor business practices that helped lead to a sudden reversal of fortunes for Lincoln-area schools.
The 2007-08 report released June 19 looks at why, in less than five years, Lincoln citizens went from "the euphoria of growth and the promise of new schools to the disillusionment of debt and portable classrooms."
The report criticizes former district Superintendent Roger Yohe as being too ambitious in his vision for building new schools. He led trustees down a "fiscally irresponsible path" and "initiated and approved design and construction of high-end, state-of-the-art facilities with no sound, achievable financing plan in place," according to the report.
But Yohe said the way schools would be built in Lincoln was set by more than 150 people in the community – including teachers, students, parents and civic leaders – who participated in a two-year study that began in 1994.
"The board was passionate that we would not have second-rate schools in Lincoln," said Yohe, who became superintendent after the district hired a consultant to conduct the study.
"It was a (shared) vision. … Yes, they're wonderful schools, but they're the kind of schools all kids should be able to enjoy."
Several reports, including one from February 2006, outline the district's projected enrollment, school costs and how they would be funded, according to Yohe. But the economy and housing market nose-dived faster than anyone predicted, he said.
"I suggested to the grand jury that they get these documents. I'm a little disappointed because I don't think the grand jury followed up and did their homework," Yohe said.
The grand jury report also criticizes the district for hiring what it said were unqualified people to lead school construction and says the board of education did not fulfill its fiduciary duties.
School board President Paul Carras could not be reached for comment.
Scott Leaman, the district's current superintendent, said in a June 27 interview that he hadn't had a chance to carefully review the grand jury report.
"It's probably somewhat premature to make specific comments about the report," Leaman said. "We want to do a thoughtful job in responding … because the grand jury took a year and did a very thoughtful job."
Leaman became superintendent in 2006 when Yohe was transferred to another district position. Yohe's contract was canceled by mutual agreement in June 2007.
The grand jury noted that the new administration, led by Leaman, has brought in outside experts as needed to help assess the district's situation and correct problems. District processes and dialogue have become more transparent, the grand jury report says.
Other findings include:
• The district and city of Lincoln did not negotiate aggressively enough with developers for upfront fees to build schools. Instead, they relied heavily on community facility district fees paid by homeowners and certificates of participation loans, or COPs, which have an adjustable rate and use schools themselves as collateral.
• COPs are a less secure form of school financing, and the district relied heavily on them, but COPs can be an appropriate way to finance new schools.
• The district's facilities building program was understaffed, and the people appointed to oversee school construction did not have the expertise needed to plan and manage such projects.
• The district performed little or no oversight of the architect and the contractor, and there was not appropriate administration of some contracts. The report also says the partnership between the architectural firm, NTD Stichler Architecture, and the building contractor, Edge Development, gave the appearance of a conflict of interest.
• The community had unrealistic expectations about the quality of new schools the district could afford. It also anticipated unrealistically low numbers of students in each school.
• District staff relationships were strained, and communication was inhibited, in part because the district had confusing organizational structures.
• The current district administration has taken appropriate steps to address the district's financial situation.
Leaman said June 27 that the district's new financial plans involve refinancing $75 million of $125 million in COP debt. So far, $37 million has been refinanced.
The grand jury has provided Western Placer administrators and trustees with 15 recommendations and conclusions to consider as they move forward.
The grand jury also has requested responses from Leaman, district trustees and Lincoln City Manager James Estep.
Call The Bee's Lakiesha McGhee at (916) 773-7630. The Bee's Sheila Kern also contributed to this report.
