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School officials admit to improper closed session
By Derek Hodges
School officials this week owned up to an error made during their June 15 meeting.
During that session, school board members discussed the details of the board’s contract with attorney Paul Holt in closed session.
Since Holt’s services to the board are provided on an outside-contract basis, he is not considered a school system employee. Therefore, discussing his biennial contract renewal in closed session is a violation of the Open Meetings Law, according to N.C. Press Association attorney Amanda Martin.
“The law changed in 1994, making closed-session discussions of independent contractors against the law,” Martin wrote in an e-mail to The Herald. “The only discussions that can be held in closed session are about actual employees, not independent contractors.”
When first contacted about the issue last week, Superintendent Sue Nations told The Herald she would not comment on closed-session discussions. However, this week Nations said an N.C. School Board Association attorney had been contacted about the issue and advised school officials their actions were illegal. At the direction of school board Chairman Ken Henke, Nations released a portion of the draft minutes of the closed session.
“I did some research and that’s exactly right, that (contract) should not have been discussed in closed session,” Nations said.
“That was discussed in closed session, but it was in error,” Henke said. “We’re releasing those minutes and I’m going to make a statement at the next board meeting to apologize for that mistake. I want to honest and let people know that we were in error. If you make an error, you admit to it and there’s no cover-up.”
The minutes, which are unofficial until approved by the board, indicate Henke asked Holt “to leave the meeting while the board discussed the renewal of his contract.” Henke confirmed he made that request.
According to the minutes, the discussion that followed centered on Holt’s request that his hourly rate be increased from $135 to $175.
Board member Mark Brooks started the discussion, saying the board cannot pay the increased amount. Brooks also expressed several concerns about Holt’s continued service to the board, the minutes say.
Pointing out that Holt serves as attorney both for the school board and the county commissioners, Brooks questioned whether that could create a conflict of interest. Brooks also expressed concern that recent action on a board policy was delayed by Holt, even though the attorney had the proposed policy before the meeting and could have suggested the corrections then.
Board member Ali Laird-Large spoke to Holt’s qualifications, saying he knows the school board’s “history” and is one of only a few attorneys in the area specializing in education law.
Board members reached a consensus that raising Holt’s hourly rate from $135 to $150 would be more manageable. In addition, Holt bills school officials by the hour for all services rendered, including time spent at board meetings. He also receives a retainer of $400 per month.
At Henke’s direction, Laird-Large left the meeting to ask Holt if he would agree to the smaller increase. Holt agreed, the minutes say.
When contacted about the discussion Monday, Holt said he was not aware it had taken place.
“They asked me to leave, I don’t know what was said after that,” Holt said. “I was told to come back in later. It’s not unusual for a board to ask their attorney to leave the room for a discussion.”
Holt agreed Henke asked him to leave so they could discuss the contract and that Laird-Large came out of the meeting to ask him about contract specifics. He maintains that since he was not actually in the room, he did not know the actual subject of the discussion. When asked if he should have advised the board not to discuss the contract in closed session, Holt reiterated he did not know the nature of the discussion.
When Henke was asked if Holt should have told him not to hold the discussion in closed session, he refused to blame the attorney and repeated that the mistake was his.
School officials mistakenly thought Holt’s contract should be treated the same as those of school system employees, Henke said. Discussion was held concurrently with discussion of other personnel matters, he said.
“We just thought it was a personnel issue,” Henke said. “It was brought to our attention later that is not correct.”
Holt’s contract, which his office drafted, was renewed for two years with no termination clause included.
Board member Thurza McNair was not present for the June 15 session.
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