ORANGE : Trustees OK $80,000 of $150,000 Legal Bill

Concerned about its financial standing, the Board of Trustees approved only $80,000 of a $150,000 legal bill to a Santa Barbara attorney representing the district in its ongoing disciplinary hearings against three top administrators accused of sexual harassment.

Attorney Mary Jo McGrath billed the district $150,000 for legal work performed in January, February and mid-March in connection with hearings involving Deputy Supt. Richard Donoghue, Chief Fiscal Officer Joyce Capelle and Transportation and Maintenance Director Howard Mason. The three were accused of sexual harassment last year after a monthlong district investigation, headed up by McGrath.

But the board, struggling to maintain a positive financial certification with county and state education authorities, balked at paying for the entire bill last week, fearing it could jeopardize its reserve fund.

If the troubled district loses its current positive financial ranking with authorities, officials said, the district’s credit ratings could be threatened, costing the district thousands of dollars annually. Also, the county might choose to step in and administer the financial affairs of the district.

A couple of speakers said the school district is spending too much money on the hearings at a time when the district faces pressing financial demands elsewhere. These critics suggested that board consider stopping the disciplinary actions.

But board member Bob Viviano said the district is legally obligated to pursue the disciplinary actions, and added the board had discussed only how the district was going to pay the fees.

The hearings are moving much slower than originally anticipated. Initially, the hearings for the three, which began in March, were supposed to be completed by early April. But after two months, the hearings for two of the administrators have yet to start.

The board also postponed a vote last week on approving $50,000 to compensate a hearing officer and court reporter connected with the disciplinary hearings. The board will reconsider the item when it determines how this payout will impact the district’s financial standing.