Updated: 7/9/2008 6:22:01 PM
Current school board, Heilmann left to clean up mess
The issue: Police reports indicate former Eau Claire school Superintendent Bill Klaus supervised changes to his own contract.
Our view: Policies to correct this blatant conflict of interest need to be implemented and publicized as the first step in trying to restore public trust in our school system.
In the murky matter of what the Eau Claire school board did or didn't do regarding former Superintendent Bill Klaus' contract, one thing has emerged crystal clear: The slipshod way the superintendent's contract is handled must - and apparently will - change.
The superintendent is the only district employee who reports directly to the school board, so the seven-member board negotiates, discusses and votes on the superintendent's contract, which obviously includes pay and benefits. It is now clear that somewhere that process broke down.
At issue is whether the school board last year approved a provision in Klaus' contract to allow him to begin receiving his nearly $270,000 stipend starting at age 53 rather than at the customary age of 55. It's also standard for an employee to actually be retired before getting the payments. Klaus last year stepped down as superintendent to become principal at Northstar Middle School.
New Superintendent Ron Heilmann said any changes to his contract will be typed up by the Personnel Department after board approval. That apparently isn't how it worked under Klaus, who directed changes in his contract by writing alterations in the contract's margins, which then were typed up by Patti Iverson, Klaus' former executive assistant.
Most incredible is that these changes were not seen by the entire school board, according to a statement Iverson gave police investigators looking into possible criminal activity. Eau Claire County District Attorney Rich White decided not to charge anyone in the matter because he found the school board members divided over whether they did or didn't allow Klaus to begin receiving the stipend at age 53.
According to the police report, Iverson said not all board members saw Klaus' contract before it was adopted, a practice she said has been the case "for as long as I can remember." Klaus' controversial 2007 contract bears the signatures of only two board members, Carol Olson and JoAnne Evans, both of whom have since left the board.
There are no minutes of any board meeting approving the early stipend payments for Klaus. Board President Carol Craig and fellow board members Trish Cummins and Brent Wogahn said that is because the issue never was discussed. Mike O'Brien, who was on the board at the time, joined Evans and Olson in contending that the early stipend was approved. Board member Mary Kneer said she can't remember either way.
A reasonable person would conclude that something this significant should have been recorded in the board's closed-session minutes. That same reasonable person would be aghast to know not all board members reviewed and voted on the final agreement. Finally, a reasonable person would wonder if some of the fuzzy memories in this case have more to do with covering butts than setting the record straight.
Iverson also told police she doesn't recall changing the stipend eligibility age from 55 to 53 but conceded, "I have a feeling that I did."
Olson, who was school board president in early 2007, recalled being asked by Iverson, most certainly at Klaus' request, to sign and backdate a memo authorizing the early stipend payments, even though Olson no longer was on the board when she signed the memo.
By now, many people are probably tired of reading about this, but even more people feel angry and betrayed that such a thing could occur in the first place. Heilmann and Craig, the current board president, certainly realize this, and their first step moving forward is to inform the public in loud and clear terms what changes will be made to prevent something so damaging to the district's image from ever happening again.
- Don Huebscher, editor
Friday, July 18, 2008
LT: more on 7-15-08
Updated: 7/15/2008 4:27:01 PM
Board to discuss possible Klaus discipline, resignation
The continuing investigation into former Eau Claire school district Superintendent Bill Klaus' attempt to receive his retirement stipend early could be nearing resolution.
On Thursday the school board is scheduled to discuss possible disciplinary action against Klaus as well as a potential resignation agreement.
The meeting notice also lists discussion of his compensation and possible litigation related to disciplinary measures.
The notice doesn't specifically list Klaus' name, but sources familiar with the investigation say Klaus - placed on administrative leave April 30 while the investigation continues - is the subject of the discussions.
The board began an investigation of the matter after an April 19 Leader-Telegram story detailing how former school board President Carol Olson, at Klaus' request, signed and backdated a document that would have started Klaus' $267,209 stipend payments on Aug. 1, when he was 53. The school board subsequently voted in October against granting Klaus that money until age 55.
Board to discuss possible Klaus discipline, resignation
The continuing investigation into former Eau Claire school district Superintendent Bill Klaus' attempt to receive his retirement stipend early could be nearing resolution.
On Thursday the school board is scheduled to discuss possible disciplinary action against Klaus as well as a potential resignation agreement.
The meeting notice also lists discussion of his compensation and possible litigation related to disciplinary measures.
The notice doesn't specifically list Klaus' name, but sources familiar with the investigation say Klaus - placed on administrative leave April 30 while the investigation continues - is the subject of the discussions.
The board began an investigation of the matter after an April 19 Leader-Telegram story detailing how former school board President Carol Olson, at Klaus' request, signed and backdated a document that would have started Klaus' $267,209 stipend payments on Aug. 1, when he was 53. The school board subsequently voted in October against granting Klaus that money until age 55.
LT: 7-15-08
Updated: 7/15/2008 11:32:01 PM
Former school leader's fate could be decided Thursday
By Julian Emerson
Leader-Telegram staff
Nearly three months after launching an investigation into former Eau Claire schools Superintendent Bill Klaus' attempt to access his retirement stipend early, the school board appears to be moving closer to a decision about Klaus' future with the district.
However, the issue could be far from resolved, depending on what disciplinary measures the board imposes on Klaus, the attorney representing the former superintendent said Tuesday.
The board is scheduled to meet Thursday in closed session to discuss possible action against Klaus that could include his firing. It will be the first meeting at which the board has discussed Klaus' contract matter in more than a month.
The meeting notice also lists as discussion topics a potential resignation agreement, Klaus' compensation from the district and possible legal action against the district if Klaus is dismissed.
Board members said they won't necessarily reach a decision about the matter Thursday but will discuss various options related to his employment with the district, including his possible firing.
Board members have refused comment regarding details of the investigation, but sources close to the situation said the board is seeking the possible dismissal of Klaus and two other employees for their roles in Klaus' contract matter.
Tom Guelzow, the attorney representing Klaus, said he isn't aware of any resignation deal involving Klaus. A dismissal of Klaus that does not include compensation according to his contract that runs through 2012 - including his $267,209 stipend - would result in a lawsuit against the district, Guelzow said.
"Without hesitation, we would file litigation if that happens," he said.
Last month, Guelzow said Klaus had no intention of retiring and intends to remain working with the school district. Klaus has worked since last summer as Northstar Middle School principal after a nine-year stint as superintendent. He was placed on paid administrative leave April 30 pending the outcome of the school board investigation.
The board has met nine times in closed session to interview district employees with knowledge of alterations of Klaus' contract and determine whether to discipline Klaus and others.
Last month, Eau Claire County District Attorney Rich White decided against filing criminal charges in the matter, citing divided board opinion about whether the members discussed and approved the early stipend payments as part of Klaus' contract to move from superintendent to Northstar principal.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailing how former school board President Carol Olson, at Klaus' request, signed and backdated a document in 2007 that would have allowed Klaus to begin receiving his $267,209 stipend last August. Klaus did not receive that money after the board voted in October to deny early stipend payments.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Former school leader's fate could be decided Thursday
By Julian Emerson
Leader-Telegram staff
Nearly three months after launching an investigation into former Eau Claire schools Superintendent Bill Klaus' attempt to access his retirement stipend early, the school board appears to be moving closer to a decision about Klaus' future with the district.
However, the issue could be far from resolved, depending on what disciplinary measures the board imposes on Klaus, the attorney representing the former superintendent said Tuesday.
The board is scheduled to meet Thursday in closed session to discuss possible action against Klaus that could include his firing. It will be the first meeting at which the board has discussed Klaus' contract matter in more than a month.
The meeting notice also lists as discussion topics a potential resignation agreement, Klaus' compensation from the district and possible legal action against the district if Klaus is dismissed.
Board members said they won't necessarily reach a decision about the matter Thursday but will discuss various options related to his employment with the district, including his possible firing.
Board members have refused comment regarding details of the investigation, but sources close to the situation said the board is seeking the possible dismissal of Klaus and two other employees for their roles in Klaus' contract matter.
Tom Guelzow, the attorney representing Klaus, said he isn't aware of any resignation deal involving Klaus. A dismissal of Klaus that does not include compensation according to his contract that runs through 2012 - including his $267,209 stipend - would result in a lawsuit against the district, Guelzow said.
"Without hesitation, we would file litigation if that happens," he said.
Last month, Guelzow said Klaus had no intention of retiring and intends to remain working with the school district. Klaus has worked since last summer as Northstar Middle School principal after a nine-year stint as superintendent. He was placed on paid administrative leave April 30 pending the outcome of the school board investigation.
The board has met nine times in closed session to interview district employees with knowledge of alterations of Klaus' contract and determine whether to discipline Klaus and others.
Last month, Eau Claire County District Attorney Rich White decided against filing criminal charges in the matter, citing divided board opinion about whether the members discussed and approved the early stipend payments as part of Klaus' contract to move from superintendent to Northstar principal.
Klaus' stipend payments became an issue after an April 19 Leader-Telegram story detailing how former school board President Carol Olson, at Klaus' request, signed and backdated a document in 2007 that would have allowed Klaus to begin receiving his $267,209 stipend last August. Klaus did not receive that money after the board voted in October to deny early stipend payments.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Wednesday, July 2, 2008
LT: Klaus oversaw his own contract (7-2-08)
More stupidity and sloppiness while Carol Olson and Mike O'Brien were Pres. of the BOE. It appears that Klaus made his own contract changes and Iverson typed them up and Olson and Evans just signed the contract. Why other BOE members thought this was acceptable I simply don't know. We are long overdue for a decision and report about all of this from the BOE.
Maria
Updated: 7/1/2008 11:47:02 PM
Ron Heilmann, the new Eau Claire school district superintendent seen on his first day at work Tuesday, said any alterations to his contract would be handled by the Personnel Department. "I would think that's how it should be done," he said Tuesday.
Staff photo by Dan Reiland
Report: School chief oversaw changes to his contract
By Julian Emerson
Leader-Telegram staff
During his nine-year tenure as Eau Claire schools superintendent, Bill Klaus was the only district employee who personally oversaw changes to his contract.
According to Leader-Telegram interviews with district officials and a 400-page report detailing the Eau Claire Police Department's recently concluded investigation into Klaus' contract alterations, Klaus was alone among district workers whose contract alterations weren't made directly by the Personnel Department.
Instead, Klaus routinely supervised changes before his contract was filed with that department, prompting questions about when alterations were made in 2007 that would have allowed Klaus to receive his retirement stipend earlier than previously stated.
In her interview with police, Klaus' former executive assistant, Patti Iverson, said she doesn't recall changing the stipend eligibility age from 55 to 53 but conceded, "I have a feeling that I did."
Klaus directed changes to his contract, Iverson said, by writing alterations in the contract's margins. He then asked her to make those changes via her computer, she noted.
The timing of Klaus' contract changes has sparked controversy. At issue is whether the board decided that Klaus could begin receiving his $267,209 retirement stipend payments at age 53 rather than the previously stated 55, and whether those changes occurred before the contract was approved on Feb. 5, 2007. Klaus turned 53 last July.
Klaus' contract became an issue after an April 19 Leader-Telegram story detailed how former school board President Carol Olson, at Klaus' request, signed and backdated a document last summer to allow Klaus to receive his stipend payments while he was still working as Northstar Middle School principal. The situation prompted police and school board investigations.
Board members surprised
Several board members said they were surprised by alterations to Klaus' contract and don't recall changes being approved. But Klaus contends changes to his contract - wording reducing his stipend eligibility age from 55 to 53 and a provision allowing him to retire as superintendent but continue working in the district - were made prior to board approval.
Disagreement about changes to Klaus' contract could be due to a simple matter of procedure. Iverson told investigators that not all board members saw Klaus' contract before it was adopted, a practice the longtime district employee said has been the case "as long as I can remember."
Olson and JoAnne Evans, board members at that time, apparently viewed the contract because it bears their signatures.
Personnel Director Jim Kling told police that giving Klaus direct oversight of his contract "might not have been a good idea." However, Klaus was allowed to maintain the power to revise his contract because the superintendent is the only district employee who negotiates his or her contract terms directly with the board, Kling said.
Incoming Superintendent Ron Heilmann, whose first day in that job was Tuesday, said he hasn't maintained direct oversight of his file in past superintendent jobs and doesn't plan to do so in Eau Claire.
While superintendents negotiate their own contracts with school boards, any contract alterations should be typed by the Personnel Department as is done with all other district employees, Heilmann said.
"I would think that's how it should be done," Heilmann said.
Contract disputed
Minutes of closed-session school board meetings on Jan. 8, Jan. 22 and Feb. 5, 2007, where Klaus' contract was discussed and ultimately approved, don't specifically denote discussion of Klaus' stipend payments. Current board President Carol Craig said that is because the board never approved that change.
"The board minutes are accurate," she said. "Providing for early payment of Dr. Klaus' stipend was not brought before the full board for consideration; thus, it is not in the minutes."
Police investigation notes also reveal the board's apparent failure to formally approve the early retirement stipend. In his interview with police, Klaus said there was no specific board motion to approve those payments. Instead, Klaus said, "It was me bringing the issue up."
Typically the board must make and approve motions for changes in board policy, including contract changes, to take effect.
Conflicting accounts
Board members gave police conflicting accounts of their interpretation of whether Klaus' contract allowed early stipend payments.
Craig, Brent Wogahn and Trish Cummins said Klaus' contract that the board approved on Feb. 5, 2007, included a provision allowing Klaus to switch from the superintendent job he'd held since 1998 to work as Northstar Middle School principal at age 53 instead of the previously listed 55.
However, the contract never allowed Klaus to receive his stipend early, especially given that he didn't retire, they said.
Three former board members who voted on Klaus' contract - Olson, Evans and Michael O'Brien - dispute that. They said it was the board's intent to grant Klaus his stipend early and claim the term "district retirement" that was inserted into Klaus' contract meant he was "retiring" from his superintendent job and moving to the Northstar position.
The other board member who voted on Klaus' contract, Mary Kneer, first told the Leader-Telegram she didn't remember whether the board approved the early stipend payment. She later said the board didn't vote for Klaus to receive his stipend early.
No criminal charges
Eau Claire County District Attorney Rich White said board members' confusion about what happened and a lack of complete records precluded his filing criminal charges related to the case.
Klaus ultimately didn't receive his retirement stipend payments after the school board decided Oct. 22 against paying them until Klaus turns 55 and retires. The board did agree that those payments would go to Klaus' family in the event he dies before his retirement.
Klaus wouldn't have been the first district administrator to receive stipend payments while working for the district. But others getting the payment, most notably Deputy Superintendent Gregg Butler, officially retired from the district for 30 days before restarting employment, as required by state law.
However, Klaus didn't leave the district and has told the Leader-Telegram he didn't plan to retire for a couple of years.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Maria
Updated: 7/1/2008 11:47:02 PM
Ron Heilmann, the new Eau Claire school district superintendent seen on his first day at work Tuesday, said any alterations to his contract would be handled by the Personnel Department. "I would think that's how it should be done," he said Tuesday.
Staff photo by Dan Reiland
Report: School chief oversaw changes to his contract
By Julian Emerson
Leader-Telegram staff
During his nine-year tenure as Eau Claire schools superintendent, Bill Klaus was the only district employee who personally oversaw changes to his contract.
According to Leader-Telegram interviews with district officials and a 400-page report detailing the Eau Claire Police Department's recently concluded investigation into Klaus' contract alterations, Klaus was alone among district workers whose contract alterations weren't made directly by the Personnel Department.
Instead, Klaus routinely supervised changes before his contract was filed with that department, prompting questions about when alterations were made in 2007 that would have allowed Klaus to receive his retirement stipend earlier than previously stated.
In her interview with police, Klaus' former executive assistant, Patti Iverson, said she doesn't recall changing the stipend eligibility age from 55 to 53 but conceded, "I have a feeling that I did."
Klaus directed changes to his contract, Iverson said, by writing alterations in the contract's margins. He then asked her to make those changes via her computer, she noted.
The timing of Klaus' contract changes has sparked controversy. At issue is whether the board decided that Klaus could begin receiving his $267,209 retirement stipend payments at age 53 rather than the previously stated 55, and whether those changes occurred before the contract was approved on Feb. 5, 2007. Klaus turned 53 last July.
Klaus' contract became an issue after an April 19 Leader-Telegram story detailed how former school board President Carol Olson, at Klaus' request, signed and backdated a document last summer to allow Klaus to receive his stipend payments while he was still working as Northstar Middle School principal. The situation prompted police and school board investigations.
Board members surprised
Several board members said they were surprised by alterations to Klaus' contract and don't recall changes being approved. But Klaus contends changes to his contract - wording reducing his stipend eligibility age from 55 to 53 and a provision allowing him to retire as superintendent but continue working in the district - were made prior to board approval.
Disagreement about changes to Klaus' contract could be due to a simple matter of procedure. Iverson told investigators that not all board members saw Klaus' contract before it was adopted, a practice the longtime district employee said has been the case "as long as I can remember."
Olson and JoAnne Evans, board members at that time, apparently viewed the contract because it bears their signatures.
Personnel Director Jim Kling told police that giving Klaus direct oversight of his contract "might not have been a good idea." However, Klaus was allowed to maintain the power to revise his contract because the superintendent is the only district employee who negotiates his or her contract terms directly with the board, Kling said.
Incoming Superintendent Ron Heilmann, whose first day in that job was Tuesday, said he hasn't maintained direct oversight of his file in past superintendent jobs and doesn't plan to do so in Eau Claire.
While superintendents negotiate their own contracts with school boards, any contract alterations should be typed by the Personnel Department as is done with all other district employees, Heilmann said.
"I would think that's how it should be done," Heilmann said.
Contract disputed
Minutes of closed-session school board meetings on Jan. 8, Jan. 22 and Feb. 5, 2007, where Klaus' contract was discussed and ultimately approved, don't specifically denote discussion of Klaus' stipend payments. Current board President Carol Craig said that is because the board never approved that change.
"The board minutes are accurate," she said. "Providing for early payment of Dr. Klaus' stipend was not brought before the full board for consideration; thus, it is not in the minutes."
Police investigation notes also reveal the board's apparent failure to formally approve the early retirement stipend. In his interview with police, Klaus said there was no specific board motion to approve those payments. Instead, Klaus said, "It was me bringing the issue up."
Typically the board must make and approve motions for changes in board policy, including contract changes, to take effect.
Conflicting accounts
Board members gave police conflicting accounts of their interpretation of whether Klaus' contract allowed early stipend payments.
Craig, Brent Wogahn and Trish Cummins said Klaus' contract that the board approved on Feb. 5, 2007, included a provision allowing Klaus to switch from the superintendent job he'd held since 1998 to work as Northstar Middle School principal at age 53 instead of the previously listed 55.
However, the contract never allowed Klaus to receive his stipend early, especially given that he didn't retire, they said.
Three former board members who voted on Klaus' contract - Olson, Evans and Michael O'Brien - dispute that. They said it was the board's intent to grant Klaus his stipend early and claim the term "district retirement" that was inserted into Klaus' contract meant he was "retiring" from his superintendent job and moving to the Northstar position.
The other board member who voted on Klaus' contract, Mary Kneer, first told the Leader-Telegram she didn't remember whether the board approved the early stipend payment. She later said the board didn't vote for Klaus to receive his stipend early.
No criminal charges
Eau Claire County District Attorney Rich White said board members' confusion about what happened and a lack of complete records precluded his filing criminal charges related to the case.
Klaus ultimately didn't receive his retirement stipend payments after the school board decided Oct. 22 against paying them until Klaus turns 55 and retires. The board did agree that those payments would go to Klaus' family in the event he dies before his retirement.
Klaus wouldn't have been the first district administrator to receive stipend payments while working for the district. But others getting the payment, most notably Deputy Superintendent Gregg Butler, officially retired from the district for 30 days before restarting employment, as required by state law.
However, Klaus didn't leave the district and has told the Leader-Telegram he didn't plan to retire for a couple of years.
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Friday, June 27, 2008
LT June 06/27/08 Klaus Not Going to Quit
Updated: 6/26/2008 11:32:01 PM
Larger Stipend
The retirement stipend payment to former Eau Claire school Superintendent Bill Klaus that has prompted police and school board investigations has previously been reported as totaling $225,000. Klaus' retirement stipend actually totals $267,208. District officials say the $225,000 provided previously to the Leader-Telegram was an estimate.
Attorney: Klaus not going to quit
By Julian Emerson
Leader-Telegram staff
Forget the allegations of wrongdoing. Forget the harm to his reputation. Embattled Northstar Middle School Principal Bill Klaus wants to keep his job, his attorney said Thursday.
"There has been an incredible amount of harm to Bill's reputation, but he definitely wants to keep working in the district," attorney Thomas Guelzow said.
Klaus' desire to remain with the district could be easier said than done.
The Eau Claire school board continues to decide whether to take disciplinary action against Klaus in the wake of an April 19 Leader-Telegram story detailing how last July former board President Carol Olson, at Klaus' request, signed and backdated a document directing Klaus' $267,209 retirement stipend payments to begin Aug. 1, earlier than allowed in his contract. Retirement stipend payments are payments to certain school district employees after retirement in addition to other retirement benefits they have accrued.
Klaus worked as superintendent for nine years before becoming the Northstar principal last summer. District officials say he didn't receive his stipend payments after the school board voted in October that he couldn'taccess them until age 55.
The board's investigation of the matter has included interviews with six district employees and could lead to discipline and possible firings of Klaus and other employees. Sources familiar with the investigation say board members are strongly considering firing Klaus. It remains uncertain whether that would entail a buyout of a portion of Klaus' contract, which extends through 2012.
Guelzow said he will advise Klaus to contest any attempts to fire him, especially given Eau Claire County District Attorney Rich White's decision Wednesday against filing criminal charges related to the contract alteration.
Division among board members regarding their recollections about whether contract changes they approved on Feb. 5, 2007, allowed Klaus to receive the stipend payments early gives his client's version of events more merit, said Guelzow, noting he blames the board for confusion surrounding Klaus' contract.
Former board members Carol Olson, Michael O'Brien and JoAnne Evans said they believe the contract intended the early stipend, while current board member Mary Kneer - who praised White's decision - said she can't remember whether early payments were discussed or not.
In contrast, statements by board members Carol Craig, Trish Cummins and Brent Wogahn directly contradict other board members' versions of contract discussions.
"No way did we say (Klaus) could retire at age 53. That's just not what happened," Cummins said.
While Olson said she believes Klaus' contract allowed the early payment, her statements to investigators on that topic were vague, as noted in the 400-page Eau Claire Police Department investigation report.
According to the report:
Olson said it was "not made clear" that Klaus could begin receiving his stipend in August but that she remembered the board agreeing that he should receive it at age 53. Klaus turned 53 in July. When asked whether the board intended Klaus' stipend payments to begin at age 53, Olson responded that "could very well be the intent."
The statements of Evans and O'Brien are more direct. They told investigators they recall discussion of allowing Klaus to lower his retirement age from 55 to 53.
However, both Evans and O'Brien had difficulty explaining details confirming that the board intended for Klaus to receive his stipend early.
Evans conceded that the stipend is not mentioned in board minutes of Jan. 8 and Jan. 22, when changes to Klaus' contract were discussed, but maintains the board intended the early stipend payments to Klaus. Likewise, when asked if the board discussed when Klaus' stipend payments were to begin, O'Brien "said he did not recall any specifics," the report states.
White said the lack of clarity regarding Klaus accessing his stipend payments "is troubling," as is the fact that Klaus sought out Olson when she was no longer a board member to sign and backdate a document instead of going before the full board. However, that wasn't enough to overcome board members' differences of opinion that he said precluded his filing criminal charges in the case.
"There was a definite lack of clarity regarding this contract and its intent," White said. "But I still needed more proof about the intent of that board."
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Larger Stipend
The retirement stipend payment to former Eau Claire school Superintendent Bill Klaus that has prompted police and school board investigations has previously been reported as totaling $225,000. Klaus' retirement stipend actually totals $267,208. District officials say the $225,000 provided previously to the Leader-Telegram was an estimate.
Attorney: Klaus not going to quit
By Julian Emerson
Leader-Telegram staff
Forget the allegations of wrongdoing. Forget the harm to his reputation. Embattled Northstar Middle School Principal Bill Klaus wants to keep his job, his attorney said Thursday.
"There has been an incredible amount of harm to Bill's reputation, but he definitely wants to keep working in the district," attorney Thomas Guelzow said.
Klaus' desire to remain with the district could be easier said than done.
The Eau Claire school board continues to decide whether to take disciplinary action against Klaus in the wake of an April 19 Leader-Telegram story detailing how last July former board President Carol Olson, at Klaus' request, signed and backdated a document directing Klaus' $267,209 retirement stipend payments to begin Aug. 1, earlier than allowed in his contract. Retirement stipend payments are payments to certain school district employees after retirement in addition to other retirement benefits they have accrued.
Klaus worked as superintendent for nine years before becoming the Northstar principal last summer. District officials say he didn't receive his stipend payments after the school board voted in October that he couldn'taccess them until age 55.
The board's investigation of the matter has included interviews with six district employees and could lead to discipline and possible firings of Klaus and other employees. Sources familiar with the investigation say board members are strongly considering firing Klaus. It remains uncertain whether that would entail a buyout of a portion of Klaus' contract, which extends through 2012.
Guelzow said he will advise Klaus to contest any attempts to fire him, especially given Eau Claire County District Attorney Rich White's decision Wednesday against filing criminal charges related to the contract alteration.
Division among board members regarding their recollections about whether contract changes they approved on Feb. 5, 2007, allowed Klaus to receive the stipend payments early gives his client's version of events more merit, said Guelzow, noting he blames the board for confusion surrounding Klaus' contract.
Former board members Carol Olson, Michael O'Brien and JoAnne Evans said they believe the contract intended the early stipend, while current board member Mary Kneer - who praised White's decision - said she can't remember whether early payments were discussed or not.
In contrast, statements by board members Carol Craig, Trish Cummins and Brent Wogahn directly contradict other board members' versions of contract discussions.
"No way did we say (Klaus) could retire at age 53. That's just not what happened," Cummins said.
While Olson said she believes Klaus' contract allowed the early payment, her statements to investigators on that topic were vague, as noted in the 400-page Eau Claire Police Department investigation report.
According to the report:
Olson said it was "not made clear" that Klaus could begin receiving his stipend in August but that she remembered the board agreeing that he should receive it at age 53. Klaus turned 53 in July. When asked whether the board intended Klaus' stipend payments to begin at age 53, Olson responded that "could very well be the intent."
The statements of Evans and O'Brien are more direct. They told investigators they recall discussion of allowing Klaus to lower his retirement age from 55 to 53.
However, both Evans and O'Brien had difficulty explaining details confirming that the board intended for Klaus to receive his stipend early.
Evans conceded that the stipend is not mentioned in board minutes of Jan. 8 and Jan. 22, when changes to Klaus' contract were discussed, but maintains the board intended the early stipend payments to Klaus. Likewise, when asked if the board discussed when Klaus' stipend payments were to begin, O'Brien "said he did not recall any specifics," the report states.
White said the lack of clarity regarding Klaus accessing his stipend payments "is troubling," as is the fact that Klaus sought out Olson when she was no longer a board member to sign and backdate a document instead of going before the full board. However, that wasn't enough to overcome board members' differences of opinion that he said precluded his filing criminal charges in the case.
"There was a definite lack of clarity regarding this contract and its intent," White said. "But I still needed more proof about the intent of that board."
Emerson can be reached at 830-5911, 800-236-7077 or julian.emerson@ecpc.com.
Thursday, June 26, 2008
LT article: No Charges by DA 6-26-08
Updated: 6/26/2008 9:02:02 AM
No charges filed in Klaus case
By Julian Emerson
Leader-Telegram staff
Current and former Eau Claire school district officials took part in "suspicious" alterations to former Superintendent Bill Klaus' contract, but questions about what roles those officials played precluded the filing of criminal charges against those officials, District Attorney Rich White said.
Conflicting accounts given by Klaus, former school board President Carol Olson and Klaus' then-executive assistant Patti Iverson to police investigators made filing charges against them "a very difficult proposition," White said Tuesday following his announcement Wednesday that he would not prosecute the case.
Without "clear-cut proof" of which of the three individuals is responsible for the contract alterations that would have allowed Klaus to receive his $225,000 retirement stipend earlier than allowed, filing criminal charges wasn't feasible, White said.
Charging all three also would be problematic, he said, because he lacked proof they were acting as co-conspirators with direct knowledge of what the others were doing.
White questioned the apparently improper behavior of district officials regarding Klaus' contract but said those actions weren't enough to merit charges.
"There was nothing there I felt I could prosecute criminally," White said. "There were a lot of proof problems with this."
At issue is exact circumstances regarding the backdating of the document signed by Olson, making it appear as if it was part of Klaus' contract changes the board had approved on Feb. 5.
"We don't know exactly who did what regarding the backdating, and that's a problem," White said. "They each said the others did it."
In July, without the knowledge of board members, Klaus directed Iverson to type a document allowing him to begin receiving payments Aug. 1. Olson signed and backdated the document despite the fact she had left the board three months earlier.
An April 19 Leader-Telegram story detailing the contract alteration prompted Eau Claire police and school board investigations. The school board investigation is ongoing.
Besides questions surrounding the backdating of the document, board members' disagreements about changes to Klaus' contract also made filing charges a difficult proposition, White said.
Three current board members - Carol Craig, Trish Cummins and Brent Wogahn - said the board changed the age at which Klaus could switch from superintendent to Northstar Middle School principal from 55 to 53 but never discussed beginning retirement stipend payments at age 53.
However, former board members Olson, Michael O'Brien and JoAnne Evans told investigators they believe Klaus was to begin receiving stipend payments early, although they stated discussion of the topic was vague and "not made clear."
Board member Mary Kneer told police she doesn't recall discussion of Klaus receiving his stipend early. She previously told the Leader-Telegram the board hadn't discussed granting early payments to Klaus.
On Wednesday Craig reiterated her stance that the board never discussed paying Klaus early retirement benefits.
"Providing for early payment of Dr. Klaus' stipend was not brought before the full board for consideration, thus, it is not in the (board) minutes," Craig said.
O'Brien conceded the document signed by Olson was a bad idea but denied purposeful wrongdoing on the part of Klaus or board members.
"Certainly, there was an error in judgment in creating and signing that document, but there was never any ill intent on the part of anyone involved," said O'Brien, who didn't seek re-election.
Board division regarding the intent of Klaus' contract muddled the case, and the lack of school board oversight of Klaus' contract "made it very difficult to prosecute this," White said,
White also was troubled by the school board's apparent lack of review of Klaus' contract. Besides the age change issue (55 to 53), the contract change also added the phrase "district retirement" to the contract in reference to when Klaus was eligible for his early retirement payments.
Craig, Cummins and Wogahn said those words mean Klaus would have to retire to receive his stipend, while Olson, Evans and O'Brien said the phrase signified that Klaus should have begun receiving the stipend last August.
"There was a lot of confusion about that term," White said "and that made filing charges difficult as well."
White's decision didn't sit well with some residents; Terry Schwartz of Eau Claire said the actions of Olson, Klaus and Iverson merited charges.
"I can't believe they're getting off after what they did," Schwartz said.
White acknowledged public frustration about the lack of charges filed. But that anger should be directed at school officials and not at his office, White said.
Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.
No charges filed in Klaus case
By Julian Emerson
Leader-Telegram staff
Current and former Eau Claire school district officials took part in "suspicious" alterations to former Superintendent Bill Klaus' contract, but questions about what roles those officials played precluded the filing of criminal charges against those officials, District Attorney Rich White said.
Conflicting accounts given by Klaus, former school board President Carol Olson and Klaus' then-executive assistant Patti Iverson to police investigators made filing charges against them "a very difficult proposition," White said Tuesday following his announcement Wednesday that he would not prosecute the case.
Without "clear-cut proof" of which of the three individuals is responsible for the contract alterations that would have allowed Klaus to receive his $225,000 retirement stipend earlier than allowed, filing criminal charges wasn't feasible, White said.
Charging all three also would be problematic, he said, because he lacked proof they were acting as co-conspirators with direct knowledge of what the others were doing.
White questioned the apparently improper behavior of district officials regarding Klaus' contract but said those actions weren't enough to merit charges.
"There was nothing there I felt I could prosecute criminally," White said. "There were a lot of proof problems with this."
At issue is exact circumstances regarding the backdating of the document signed by Olson, making it appear as if it was part of Klaus' contract changes the board had approved on Feb. 5.
"We don't know exactly who did what regarding the backdating, and that's a problem," White said. "They each said the others did it."
In July, without the knowledge of board members, Klaus directed Iverson to type a document allowing him to begin receiving payments Aug. 1. Olson signed and backdated the document despite the fact she had left the board three months earlier.
An April 19 Leader-Telegram story detailing the contract alteration prompted Eau Claire police and school board investigations. The school board investigation is ongoing.
Besides questions surrounding the backdating of the document, board members' disagreements about changes to Klaus' contract also made filing charges a difficult proposition, White said.
Three current board members - Carol Craig, Trish Cummins and Brent Wogahn - said the board changed the age at which Klaus could switch from superintendent to Northstar Middle School principal from 55 to 53 but never discussed beginning retirement stipend payments at age 53.
However, former board members Olson, Michael O'Brien and JoAnne Evans told investigators they believe Klaus was to begin receiving stipend payments early, although they stated discussion of the topic was vague and "not made clear."
Board member Mary Kneer told police she doesn't recall discussion of Klaus receiving his stipend early. She previously told the Leader-Telegram the board hadn't discussed granting early payments to Klaus.
On Wednesday Craig reiterated her stance that the board never discussed paying Klaus early retirement benefits.
"Providing for early payment of Dr. Klaus' stipend was not brought before the full board for consideration, thus, it is not in the (board) minutes," Craig said.
O'Brien conceded the document signed by Olson was a bad idea but denied purposeful wrongdoing on the part of Klaus or board members.
"Certainly, there was an error in judgment in creating and signing that document, but there was never any ill intent on the part of anyone involved," said O'Brien, who didn't seek re-election.
Board division regarding the intent of Klaus' contract muddled the case, and the lack of school board oversight of Klaus' contract "made it very difficult to prosecute this," White said,
White also was troubled by the school board's apparent lack of review of Klaus' contract. Besides the age change issue (55 to 53), the contract change also added the phrase "district retirement" to the contract in reference to when Klaus was eligible for his early retirement payments.
Craig, Cummins and Wogahn said those words mean Klaus would have to retire to receive his stipend, while Olson, Evans and O'Brien said the phrase signified that Klaus should have begun receiving the stipend last August.
"There was a lot of confusion about that term," White said "and that made filing charges difficult as well."
White's decision didn't sit well with some residents; Terry Schwartz of Eau Claire said the actions of Olson, Klaus and Iverson merited charges.
"I can't believe they're getting off after what they did," Schwartz said.
White acknowledged public frustration about the lack of charges filed. But that anger should be directed at school officials and not at his office, White said.
Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.
LT Editorial 6/25/08 and Letter to the Editor
Updated: 6/25/2008 11:32:03 PM
Justice now in hands of school board
The issue: No criminal charges will be filed as a result of the controversy over former Eau Claire school district Superintendent Bill Klaus' contract.
Our view: Even if they weren't illegal, actions taken in this case were unethical. Now the school board must discipline those responsible.
Eau Claire County District Attorney Rich White's announcement Wednesday that he won't file criminal charges as a result of the dispute over former Eau Claire school district Superintendent Bill Klaus' contract undoubtedly disappointed many people in our community.
Count us among the disappointed. Considering they've already been convicted in the court of public opinion, it would have been gratifying to see those involved in "Backdategate" called before a criminal court too.
Nonetheless, it's hard to fault White for his decision. We agree with him that efforts last summer by Klaus, former school board President Carol Olson, and Patti Iverson, Klaus' secretary, to backdate a provision of Klaus' contract were "plainly suspicious." At Klaus' direction, Iverson prepared - and Olson signed - a document stating Klaus could begin collecting his retirement stipend at age 53 even though he hadn't retired (he became Northstar Middle School principal last summer). Here's the suspicious part: That provision wasn't in the contract approved by the board in February 2007, and Olson signed the memo after she left the board.
However, board members gave investigators conflicting accounts of whether they'd approved that contract provision: three said they had, three said they hadn't, and one said she didn't remember. Unfortunately, minutes of the board's closed sessions are laughably vague and don't clarify the matter, once again highlighting the need for the Legislature to mandate that local governments electronically record such meetings.
White concluded that the inadequacy of the records would make it difficult to prove beyond a reasonable doubt that the school board hadn't approved the early payments. To put it another way, even though it looks like a duck and quacks like a duck, it's hard to conclusively say it's a duck unless you've got feathers to run DNA tests on. Lacking such indisputable evidence, White was put in an unenviable position: filing charges that might not stand up in court or not filing charges and riling a community whose attitudes about the scandal range from disgusted to very disgusted.
White chose the latter route. He acknowledged the public's frustration, and pointed out that just because no crime was committed doesn't mean that no one behaved unethically or contrary to the public good. However, as White added, "It is not my place, and it shouldn't be my place, to make those decisions."
Such disciplinary decisions should - and must - be made by the school board and the voters who elect them. And now that criminal charges are off the table, it's even more important for the board to take bold, swift action to discipline - or even fire - those responsible for this major ethical breach. Even if laws weren't broken, the public's trust was - and that might we even worse.
- Tom Giffey, editorial page editor
Updated: 6/25/2008 11:27:02 PM
Letter to the Editor
Fire, recall those involved
If the Eau Claire school board had been smart, it would have had language in employees' contracts spelling out matters of deportment that could lead to firing or discipline, included things such as: violating federal, state or local laws; lying to any school board member (either verbal or in writing); any attempt to deceive the school board; and any policy violation, for starters. Does the school board even have any written policy that is inclusive of all district employees? If not, we should insist on one.
Under his contract, Klaus' remaining salary and retirement stipend total $775,000, which is a lot of money in anyone's book. All I see Klaus doing is getting paid for doing nothing and laughing all the way to the bank. He violated the public trust by an attempted theft by fraud and it appears that the school board wants to just pay him off. He should be summarily fired. If our illustrious school board decides to hurry up and pay off Klaus to leave the district without firing him, we should have an immediate recall election of every school board member.
I strongly suspect that the reason there is not a comprehensive policy that governs deportment of school district employees is because many have skeletons in their own closets.
I think it's time to fire every employee who was involved in this fraud and cover-up and replace them with people who have guts enough to do their jobs. We are in a serious financial mess and we taxpayers must regain control of our school board and school administration now!
ROLAND LARSON
Eau Claire
Justice now in hands of school board
The issue: No criminal charges will be filed as a result of the controversy over former Eau Claire school district Superintendent Bill Klaus' contract.
Our view: Even if they weren't illegal, actions taken in this case were unethical. Now the school board must discipline those responsible.
Eau Claire County District Attorney Rich White's announcement Wednesday that he won't file criminal charges as a result of the dispute over former Eau Claire school district Superintendent Bill Klaus' contract undoubtedly disappointed many people in our community.
Count us among the disappointed. Considering they've already been convicted in the court of public opinion, it would have been gratifying to see those involved in "Backdategate" called before a criminal court too.
Nonetheless, it's hard to fault White for his decision. We agree with him that efforts last summer by Klaus, former school board President Carol Olson, and Patti Iverson, Klaus' secretary, to backdate a provision of Klaus' contract were "plainly suspicious." At Klaus' direction, Iverson prepared - and Olson signed - a document stating Klaus could begin collecting his retirement stipend at age 53 even though he hadn't retired (he became Northstar Middle School principal last summer). Here's the suspicious part: That provision wasn't in the contract approved by the board in February 2007, and Olson signed the memo after she left the board.
However, board members gave investigators conflicting accounts of whether they'd approved that contract provision: three said they had, three said they hadn't, and one said she didn't remember. Unfortunately, minutes of the board's closed sessions are laughably vague and don't clarify the matter, once again highlighting the need for the Legislature to mandate that local governments electronically record such meetings.
White concluded that the inadequacy of the records would make it difficult to prove beyond a reasonable doubt that the school board hadn't approved the early payments. To put it another way, even though it looks like a duck and quacks like a duck, it's hard to conclusively say it's a duck unless you've got feathers to run DNA tests on. Lacking such indisputable evidence, White was put in an unenviable position: filing charges that might not stand up in court or not filing charges and riling a community whose attitudes about the scandal range from disgusted to very disgusted.
White chose the latter route. He acknowledged the public's frustration, and pointed out that just because no crime was committed doesn't mean that no one behaved unethically or contrary to the public good. However, as White added, "It is not my place, and it shouldn't be my place, to make those decisions."
Such disciplinary decisions should - and must - be made by the school board and the voters who elect them. And now that criminal charges are off the table, it's even more important for the board to take bold, swift action to discipline - or even fire - those responsible for this major ethical breach. Even if laws weren't broken, the public's trust was - and that might we even worse.
- Tom Giffey, editorial page editor
Updated: 6/25/2008 11:27:02 PM
Letter to the Editor
Fire, recall those involved
If the Eau Claire school board had been smart, it would have had language in employees' contracts spelling out matters of deportment that could lead to firing or discipline, included things such as: violating federal, state or local laws; lying to any school board member (either verbal or in writing); any attempt to deceive the school board; and any policy violation, for starters. Does the school board even have any written policy that is inclusive of all district employees? If not, we should insist on one.
Under his contract, Klaus' remaining salary and retirement stipend total $775,000, which is a lot of money in anyone's book. All I see Klaus doing is getting paid for doing nothing and laughing all the way to the bank. He violated the public trust by an attempted theft by fraud and it appears that the school board wants to just pay him off. He should be summarily fired. If our illustrious school board decides to hurry up and pay off Klaus to leave the district without firing him, we should have an immediate recall election of every school board member.
I strongly suspect that the reason there is not a comprehensive policy that governs deportment of school district employees is because many have skeletons in their own closets.
I think it's time to fire every employee who was involved in this fraud and cover-up and replace them with people who have guts enough to do their jobs. We are in a serious financial mess and we taxpayers must regain control of our school board and school administration now!
ROLAND LARSON
Eau Claire
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