Reports received on investigations of misconduct by Lisa Shellum, former superintendent/principal
Sandwiched between the two halves of the December regular meeting of the Butterfield-Odin Public School (B-OPS) School Board’ on Monday, December 19 was the Truth In Taxation public meeting, along with a board decision on the Taxes Payable in 2017.
Dr. Kelly D. Smith, Vice-President of Springsted, Inc., gathered the information, and presented the report at the meeting.
School districts are required to record revenues and expenses in different funds, with each fund having a definite purpose:
+ The General Fund is for daily operating costs including salaries and benefits and utilities, the local operating referendum levy, transportation and capital expenditures.
+ The Food Service Fund contains revenue and expenditures for breakfast and lunch programs.
+ The Community Service Fund accounts for the lifelong learning programs in the District levy based on the adult population of the district, with an early childhood levy based on the number of children under five years of age. At B-OPS, the majority of funds are used for daycare, as well as student and adult classes, after-school activities, swimming lessons and summer activities.
Proposed property taxes payable in 2017 in the report include $226,579 for voter-approved levies and $270,913 for other local levies for a total of $497,493. This is an increase of $37,356 over payable 2016, or, an 8.12% percent increase.
A correction to an over-estimate of 30 resident pupil units (RPU) in 2014 caused adjustments in previous years, moving revenue from state aid to local levy, which is assessed to Referendum Market Value property. The corrections mean resident homestead, non-homestead resident, commercial/industrial, apartment property of four or more units and agricultural homestead properties will see increases, with decreases for seasonal recreation and agricultural non-homestead properties.
However, board members approved just a 3% increase for a levy of $473,941 on a 6-1 vote. B-OPS Board Director Kristy Hasemen was the lone dissenting vote, preferring the presented levy dollar amount and the 8.12% increase.
Reports of investigations of misconduct by Lisa Shellum
B-OPS Interim Half-Time Superintendent Allen Stoeckman announced that the investigations of misconduct by Lisa Shellum, former B-OPS superintendent and principal, approved last May 31, have been completed. He noted that because Shellum is considered a “public official” under Minnesota’s data privacy law, most of the information contained in the reports is considered public information, and must be provided to the public upon request. Some information in the reports needs to be redacted, but the majority of the information is public. The complete report is 300+ pages, but report summaries completed by the two firms that conducted the investigations – Sally J. Ferguson of Arthur Chapman Kettering Smetak & Pikala, P. A., Attorneys At Law, and James K. Martin of the Booth Law Group – total 11 pages.
Upon request, Interim Superintendent Allen Stoeckman provided Cross-Counties Connect with the report summaries, and abbreviated information from those synopses follow.
Ferguson and Arthur Chapman Kettering Smetak & Pikala, P. A., Attorneys At Law were asked to investigate the allegations regarding Shellum’s submission of false reimbursement requests, related primarily to submitting false mileage reimbursement requests. She reviewed mileage records for the years 2011-2015, and noted the following issues –
+ Shellum submitted requests for monthly mileage reimbursement at the same time she was paid a monthly allowance for use of her private automobile. Pursuant to her superintendent contract for the year 2011-2012, she was paid a monthly allowance of $1,000 for the use of her private automobile/cell phone. For the years 2012-2013 and 2013-2014, she was paid $1,050 per month. For 2014-2015, she was paid $525 a month.
Minnesota Statute 471.665 states that a school district may pay an officer or employee a monthly or periodic allowance for the employee’s personal automobile in lieu of mileage. The statute does not allow for payment of both a monthly or period allowance and mileage.
+ Shellum submitted a request for mileage reimbursement for round-trip travel to Minneapolis (250 miles) for an attorney meeting. Kevin Rupp, the School District’s attorney, confirmed that neither he nor any other attorney in his office met with Shellum on July 24, 2015.
+ Shellum reported mileage on holidays and weekends:
- From July 2012 to May 2014, 75 weekend days.
- Between July 1 and December 31, 2012, mileage reimbursement was requested for 103 days of travel (averaging 17 days a month).
- Between January 1 and December 31, 2013, mileage reimbursement was requested for 165 days (averaging 14 days a month).
- Between January 1 an December 31, 2014, mileage reimbursement was requested for 71 days of travel (averaging 14 days a month).
- Mileage was recorded on Labor Day 2012, Thanksgiving weekend 2012, Christmas vacation 2012, Memorial Day weekend 2013, Thanksgiving weekend 2013, President’s Day in February 2014, Easter Sunday in 2014 and Memorial Day weekend in 2014.
+ Shellum submitted contradicting information for mileage reported. Examples of this are reporting mileage when she had requested sick leave and reporting mileage on days when school had been closed.
+ Mileage was sometimes charged for the same day in two consecutive months
+ Shellum submitted incomplete mileage reports. Dates of travel were omitted on a March expense voucher. The voucher was returned with a note from the Business Manager requesting dates.
+ Shellum submitted expense vouchers for work done for which there were no Board Minutes approving the expenses.
Martin investigated allegations in two areas –
+ Whether or not, in late spring 2016, Shellum interferred with and/or attempted to sabotage the School District’s attempts to hire Jerry Reker as superintendent.
+ Whether or not Shellum acted intentionally in regard to the School District’s child care license, causing it to close for one day on January 22, 2016.
In conducting the investigation, Martin and the Booth Law Group reviewed documents provided by the School District and witnesses, and conducted investigative interviews of former Interim Superintendent Sandi Novak, superintendent applicant Jerry Reker, Watonwan County social worker Joan Stordalen, board member Leon Wenner and Sheri Steinbrink, the district’s administrator of daycare operations. All those interviewed were provided with a Tennessen warning notice (the government must give individuals notice when collecting private or confidential information from them).
Shellum was invited to be interviewed so that she could provide her position on the allegations, but, through her attorney, declined to be interviewed. Because Shellum declined to meet with an investigator, conclusions were reached without the benefit of information she could have provided.
+ Investigative conclusions concerning the superintendent hiring process:
- The investigators concluded that Shellum took action to sabotage or interfere with the School District’s superintendent hiring process in spring 2016. This is based on the testimony of Reker, as well as Shellum’s role in providing incomplete information about Reker to the local news media (Nicholas Cicale, former reporter at the St. James Plaindealer).
- As part of his testimony, Reker recalled a meeting with Shellum following the May 5, 2016 B-OPS School Board meeting at which he had accepted the superintendent position. According to Reker, Shellum spoke to him as he was entering his car to leave. Through the context of the conversation, Reker came to the opinion that Shellum was attempting to get him to withdraw from the superintendent application process.
- Shellum’s e-mail to the reporter at the Plaindealer described allegations made against Reker approximately 10 years ago when he was serving as a principal in Kasson/Mantorville. The e-mail and attachments did not note that the allegations had been investigated and disproved, and that Reker had been fully exonerated.
+ Investigative conclusions concerning intentional disruption of the district’s daycare:
- Evidence supporting the allegation was based on Shellum’s statements at the January 21, 2016 board meeting; a January 21, 2016 e-mail to the board; a January 25, 2016 e-mail to Minnesota State Representative Paul Torkelson and the testimony of Steinbrink and Stordalen.
- It was at the January 21, 2016 meeting that Shellum was placed on paid leave of absence from her position as the School District’s superintendent. At that time, Shellum made a statement to the board and to those in attendance that addressed a number of issues relating to her leave of absence. As a video of the meeting showed, Shellum admitted that she had been aware since earlier that week that she was going to be placed on leave of absence. She additionally informed the board that, because she was being relieved of her duties as superintendent, she was withdrawing her name as authorized agent and controlling individual for the district’s daycare license on file with Watonwn County. She also stated to the board that she had taken on personal liability by signing the licensure.
- Steinbrink testified that late on the afternoon of January 21, 2016, prior to the board meeting, Shellum had met with her and informed her that she would be removing her name the the daycare license. Steinbrink contacted Stordalen, and was informed that the removal of Shellum’s name would result in the district’s license being invalid until someone else from the district signed on as the authorized agent and controlling individual. Steinbrink reported that to Shellum, who then relayed that information to the school board at that evening’s meeting.
- When she reported Steinbrink’s research to the board, Shellum stated that she had just learned about the impact the removal of her name would have on the daycare license from Steinbrink. Investigators concluded that this statement is not consistent with the evidence. Contrary to her statement to the board at the meeting, there is evidence that Shellum knew about the consequences in advance of Steinbrink’s inquiries to Stordalen in advance of the board meeting.
- In an e-mail to the board early in the afternoon of January 21, 2016, before meeting with Steinbrink, Shellum stated that Human Services was preparing a letter for that evening that would explain the process of what would happen to the daycare. This e-mail seems to show, investigators note, that Shellum had had contact with Stordalen that led to some understanding that the daycare licensure was in jeopardy before Steinbrink contacted Watonwan County.
- After talking to Stordalen, Steinbrink took it upon herself to notify parents that the daycare might be closed on January 22. What is unknown is the extent to which Shellum was aware of Steinbrink’s action. Her statements to the board indicate that she was aware that the daycare would have to close due to licensure issues.
- On January 22, board member Leon Wenner met with Stordalen regarding the necessary steps to reopen the daycare. Wenner learned that it would not have been necessary for Shellum to remove her name from the daycare license as she could have remained on the licensure while serving as the half-time principal. Wenner learned that, as a board member, he could step in and serve as the authorized agent and controlling individual, which he did. Stordalen confirmed during her interview that these steps could have saved the daycare from the one-day closure.
- There is also evidence that Shellum intentionally attempted to close the daycare for an extended period of time. In a January 25, 2016 e-mail sent to Torkelson, Shellum states that Wenner, as the new authorized agent and controlling individual, does not know anything about the operation of the daycare.
- Board members had approached Steinbrink to serve as authorized agent and controlling individual, but Steinbrink testified that she had received calls from members of the community not to take on those roles because of the possibility of personal liability.
- In June 2016, Steinbrink was designated as the district’s authorized agent and controlling individual on the daycare license because it was clarified that she would not be personally liable for any claims arising in the daycare.
In other business
+ Recognized school board members leaving the board at the end of 2016. Honored were B-OPS School Board Director Diane Peterson, who served for 16 years (2000-2016) and B-OPS School Board Clerk Tammy Wolle, who was on the board for four years (2012-2016). Peterson was also named a “Friend of Butterfield-Odin Public School” for her dedication, support, devotion and passion for the school district. Her name will be added to a plaque hanging in the school office. Peterson joins Bob Harder and Tim Grefe as those named on the “Friend” plaque.
+ The Oath of Office was held for board members Pamela Xayaphonesongkham and Shannon Sykes, new to the group, and returning members Kristin Haseman and Renae Meyer.
+ Approved an audit presentation by Kyle Meyers of Abdo, Eick & Meyers of Mankato. Meyers gave board members his opinion that the school district is in an unmodified, or “clean,” position. The only area seeing a deficiency is Community Education, and Meyers interjected that those deficits might be “one thing to look to eliminate over time.” The board had budgeted deficits in funds (General Fund, Operating Fund), which worked to the district’s advantage, but Meyers cautioned that, “You might not want to see that year-after-year-after-year.” His conclusion was that the general condition of the district is healthy, with 2½ months of fund balance reserves.
+ Approved posting for a half-time superintendent.
+ Approved posting for a full-time ESL (English as a Second Language) teacher.
+ Approved revised headings for the mandatory policies of Hazing Prohibition and Use of Peace Officers and Crisis Teams.
+ Approved revised mandatory polices of Internet Acceptable Use and Safety, Pledge of Allegiance and Wellness.
+ Heard the first reading of a mandatory policy, Student Surveys.
+ Heard an enrollment report for November 2016. Student numbers in pre-kindergarten-through-grade 12 had a drop of two from October, moving from a student population of 220 to 218. Numbers included a one-student loss in fourth grade, eighth grade and 10th grade, with a one-student increase in sixth grade.
+ Heard information concerning a Building and Grounds Committee meeting. Unesco, of St. Paul, a program management firm that assists school districts with the revitalization, renovation and new construction of educational facilities, had been in the school to canvass the steam pipes, scoped out the building rooftops and discussed security issues. Staff are concerning about piping issues, especially in January, as there is no back-up if the system fails. According to B-OPS School Board Vice-Chair Leon Wenner, the company presented the committee with three options to solve the issues – “good,” “better” or “best.” Wenner interjected that, in 2009, estimated costs to renovate the school’s heating system was $4.5 million.
+ Heard a report from the Meet and Confer Committee, presented by B-OPS School Board Treasurer Andy Pierson. The consensus between board members and faculty attending the meeting was that good things are happening in the classroom, and students and teachers are enjoying the changes. All want to maintain the positive momentum. Concern focused on the number of ESL students that need assistance, as well as planning a yearly budget for books in the classrooms. A tentative next Meet and Confer has been slated for March 2017.
+ Learned that the holiday break for B-OPS students is December 23-January 2. School resumes on January 3, 2017.
+ The B-OPS School Board will holds its reorganizational meeting on Monday, January 9, 2017, beginning at 6:30 p.m., in the Media Center.
+ Learned that the Minnesota School Boards Association (MSBA) conference will run from Wednesday, January 11 through Friday, January 13.
+ Cast their ballot for Katie Youngberg, a school board director from Waseca Public Schools, for the Minnesota Rural Education Board’s south zone.
+ Heard a report from B-OPS K-12 Principal Barry Schmidt. He noted that door locks had been changed, making it possible for the use of just one master key for all locks. Principal Schmidt also shared that he is checking on internet provider service.
+ Learned that a date is necessary to be set for negotiations with Principal Schmidt. His contract expired last July and is currently working under last year’s contract.
+ Both B-OPS School Board Chair Joel Penner and Wolle presented statements at the meeting.
+ Heard a report by Interim Superintendent Stoeckman. In this report, Stoeckman addressed the following:
- The trio of trees lining the south edge of the school along Hubbard Avenue. Superintendent Stoeckman has spoken to Corey Suess concerning the trees. Suess stated that, with the excessive rain this past fall, the trees have absorbed the moisture, making them more susceptible to splitting when it freezes. Stoeckman expressed his feeling that the three trees should all be removed because they have rotting trunks, especially the tree that also has electrical wires among the branches. His concern is for the safety of students/pedestrians, as well as the liability of branches falling on parked vehicles. By consensus, board members approved the removal of the tree with electrical wires at this time, and to revisit the removal of the two other trees in the spring. New trees will be planted on the boulevard.
- The future “traffic flow” of B-OPS. Stated Stoeckman, “I see us (B-OPS) traveling a four-lane highway and nearing a roundabout. There are two lanes of traffic moving in each direction. One one side is the school staff in the left lane, slightly ahead of the school board, traveling in the right lane, but heading in the same direction. At the roundabout, two board members will exit (Peterson and Wolle) and two board members will enter (Pamela Xayaphonesongkham and Shannon Sykes). Entering from the other side is a new superintendent. My hope is that the school board will join the school staff in traveling straight ahead.” Stoeckman went on to share that he was concerned the school board may get “trapped” in the roundabout, going in circles, or even reversing course and going back. His advice to the school board was, “Don’t look in the mirror. Look straight ahead. Get a bus and travel together with school staff in the same vehicle for the benefit of our (B-OPS) students.”
