Regular Meeting of the Board of Trustees

September 4, 2008

Minutes

In attendance: 

Emil Ronchi, Cathy Vaucher, Dr. John Sullivan, Kay O’Dwyer, Cynthia Canavan, Christopher Fauci, Bob Sousa, Matt Cronin and Nina Cullen Hamzeh. Mr McEnaney arrived at 7:10  Not Present:  Ms Shorr

Also Present: Dr. Albert Argenziano, Interim Managing Director.

Location:  The Community Room at the Marblehead Community Charter Public School, 17 Lime St, Marblehead MA 01945

The Board of Trustee Chair, Mr. Emil Ronchi opened the meeting at 7:06 P.M and began by reading the School’s Mission Statement:

Recognizing that children learn best in the context of community, our mission is to create partnerships among community members that assist students in reaching their highest intellectual, social, emotional, and physical potential. 

In the absence of Mr. McEnaney, the Chair requested Ms O’Dwyer server as Clerk Pro Temp for the time being. 

Mr. Ronchi called for public comment, and noted that there were no individuals wanting to address the Board for public comment at this time.

Mr. Ronchi recognized Ms Cullen Hamzeh, Interim Academic Director for the State of the School Report. Ms Cullen Hamzeh noted that MCCPS has had a fabulous start to the school year.  She informed the Board of several repairs to the facility that were completed during the summer including fixing a leaking HVAC system in the Community Room.  She also noted that awnings will be installed over the Art and Music rooms to alleviate rain coming in.

Ms Cullen Hamzeh went on to note that in coming months, her report will be more focused on policy and performance toward achievement of the Accountability Plan and individual performance. 

Mr McEnaney arrived and resumed duties as Clerk at 7:10 PM.

Ms Cullen Hamzeh went also facilitated an initial discussion and exercise focused on refining the mission statement of the school.  Trustees continued by suggesting potential ideas for the mission statement.  There was significant discussion among Trustees about what was the appropriate to include.  The activity reached a natural intermission point, and we decided to continue the activity at a later meeting. 

Ms Cullen Hamzeh went on to remind Trustees that she would be facilitating a similar discussion among the faculty and the parents, and that the Trustees would need to work to align all three sets of input when she has completed those sessions. 

The Chair called a recess at 8:05. 

The Chair called the meeting back to order at 8:20 PM

Mr. Ronchi recognized Dr. Argenziano to provide the Interim Managing Director’s report which is attached. He also noted that the start of the school year has been overwhelmingly positive.  He shared his opinion with the Board that this start was dramatically different than last year’s, and this turnaround, which is not yet completed, has happened much quicker than typical in school systems.  He congratulated everyone involved the success.

Dr.Argenziano also shared with the Board that he, Ms Cullen Hamzeh and Ms Haley met with a local couple that have expressed interest in working with the Charter School in finding foundation and grant resources. Dr. Argenziano offered that in order to make such a partnership successful, the Board would need a full, and professional strategic plan that can be shared with potential doners.

Mr. Ronchi recognized Dr. Sullivan for the Treasurer’s report, a copy of which is attached.  Dr Sullivan went on report of the finance of the school, sharing the latest budget and asking Trustees to approve it as the official budget for the year, as well as sharing the current balance sheet for the School.

Finally, Dr Sullivan presented Mr. Ira Keller to the Board for membership on the Finance Committee.  A copy of Mr. Keller’s resume is attached. 

Decision: Dr. Sullivan moved and Mr. McEnaney seconded a motion to appoint Mr. Ira Keller to the Finance Committee, for a period of three years, effective immediately and through September 30, 2011.

Yeas:  7 Nays: 2 Abstain 1  Motion Passes

Mr. Ronchi recognized Mr Sousa for the Personnel Committee Report, a copy of which is attached.    Mr. Sousa noted that the Committee met August 18 to develop indicators for the Interim Academic Director, work which is ongoing. 

Mr. Ronchi distributed a draft operational calendar to provide an example of the type of information he would be looking for Committees to share with the Board, and to demonstrate the intent to complete a Strategic Plan by December. 

In further new business, Mr. Ronchi recognized Mr. McEnaney who asked that each committee appoint a clerk or individual to take and maintain minutes, as well as to post meetings.  He offered to show each committee how to post their meetings in compliance with the Open Meeting Law

Ms Canavan shared a copy of the Dedham Country Day School Strategic Plan as a potential model for us to look at. 

Ms Canavan moved and Mr Sousa seconded a motion to adjourn.

Yeas:  10 Nays: 0   Motion Passes

The Chair adjourned the meeting at 9:07 PM

Respectfully Submitted

John T. McEnaney

Clerk

 Report of the Interim Managing Director, August 7, 2008

To: Board of Trustees:

From: Dr. Albert F. Argenziano

Re: August Report 

The month of August has been extremely productive.  Staff hires, cosmetic changes to the building and improvements to our facility have taken up much of the time. 
 

The Personnel Committee met August 18, 2008 and scheduled its next meeting for Tuesday, September 23, 2008.  At the meeting, I have been requested to provide leadership models for the committee.  I have asked Dr. Peter Davies, Executive Director of Class Measures, to be with me at the meeting.  Peter is well known in his field as a person to seek advice and council on leadership models, Charter Schools, and accountability.  He will assist me in providing the committee with information relative to their request.  We have set aside from 7:00-8:00 p.m. for this presentation. 

August 21, 2008, we welcomed our new staff to MCCPS.  Today, August 25, 2008, all staff  were present.  I am excited about this school year.  This will be our turnaround plan year.  We have an excellent staff, 230 students, our budget should be more positive then a year ago, and in essence, we will become whole again. 

Thursday, August 28,2008 we open our doors to 230 students and their parents.  It is a new beginning, and it feels quite positive. 

Continuous dialogue with Dr. Paul Dulac, Superintendent of Schools takes place.  This coming Wednesday (8/27/08), Alan November, will speak to the Marblehead Staff at Marblehead High School at 8:00a.m. Dr. Dulac has allowed me to send some staff to this important meeting.  Also, he consistently worked with me on the filling of the position of Interim principal at the Village School. 

In closing, I cannot thank you enough for including me in your school. 

Thank you, 

Dr. Albert F. Argenziano

Interim Managing Director

BACK

Report of the Treasurer,  September 4, 2008

Marblehead Community Charter Public School

Finance Committee

John D. Sullivan, Ph.D., Chair

Report to the Board of Trustees

September 4, 2008

The new fiscal year brings with it one more step towards the school’s financial freedom.  The budget has changed slightly from the approved budget in July 2008.  I would like to review this budget with the board and ask it to be approved as the final budget for Fiscal 2009.  

There were two primary changes to the budget:  First, the rate per student was revised up to reflect a more accurate picture of what we expect to receive as reimbursement from the state.  Second, the expenses were also adjusted to include a slightly higher personnel expense for a one on one aid as mandated by law.  

Fin Com expects to see a surplus of 55,161 this year.  While nothing is etched in stone, if we can maintain our expenses through June 2009, we may see a bump in the surplus by as much as 70,000 as the state adjusts our revenue towards fiscal year end.  This would be a tremendous boost as it would leave the school with a surplus of 120,000.

As something to consider, the school has a note that comes due in 2010 for approximately 172,000 for the expansion of Charter Hall.  As a probable solution to this due date, the school could roll the note depending on the credit markets in a couple of years.  Another option, if the board wishes to pursue this, would be a purchase of the building.  Depending on the purchase price, the school may roll the note and any leasehold improvements into the new debt.  However, I would strongly suggest that if this strategy is pursued in 2010, we would seek out a principal and interest structure over the existing interest only loan.   

As a strategy, the pursuit of the building cannot take place until fiscal 2010.  We simply do not have the current cash position to seem attractive to a lender.  If we can increase our cash over the next year and a half, this will become an option going forward.

As Dr. Argenziano had mentioned to the board, the school is in a three year fix mode.  The toughest year is behind us and with every day moving forward we improve our financial position as well as mend our relationship with the community.  We will need to continue to monitor our expenditures, but will have much more flexibility as we go forward.

As a policy, Fin Com will continue to provide transparency to the financial reports.  We have also provided additional analysis to reflect where the money is spent per student and as a proportion to the total budget.  We will continue to welcome the community and the board to all of our finance meetings  in the future.

Fin Com would also like to present Mr. Ira Keller to the board as a member of the committee. The finance committee voted unanimously to approve his membership on the committee.  Mr. Keller has a long and well established career in the business community and would bring additional perspective and experience to the committee.   I would like to motion that the board of trustees vote to approve Mr. Keller’s membership to the Finance Committee

BACK

IRA L. KELLER

Objective: General management role in a technology company.  High-growth and turn-around environments that require creative thinking and problem solving are desirable.

Skills:        Software and Web-based services companies targeting the Fortune 1000 and financial services industry.  Strong sales (personal selling and sales management) and marketing skills (strategic and tactical) with a focus on product delivery and customer relationships management. 

Excellent leadership and hiring skills coupled with the ability to make the tough decisions.  Proven track record of establishing solid organizational infrastructures (including accountability, measurement and feedback systems) to support and sustain rapid growth and respond to changing market conditions.

Achievements include:

¨       Drove 20%+ annual, compounded revenue growth tripling Lewtan Technologies in five years, returning company to profitability and enabling sale of company for high revenue multiple.

¨       Built and led Thomson Financial software business to #1 in its market, from <$1M to $14M with major sales wins against every competitor in the field.

PROFESSIONAL HISTORY

Lewtan Technologies (a DMG Information Company), Waltham, MA                                 2001 – Present
CEO / President /Chief Operating Officer/ SVP Sales & Marketing

Recruited to lead sales, marketing (strategy and marketing communications) and business development for this $18M venture and strategic investment-funded ASP software and Web Portal provider to the global financial services (large buy-side firms and Asset-backed Securities issuers) industry.  Promoted to Chief Operating Officer in 12/02, President in 12/03 and CEO in 3/06. 

·         Drove compounded annual revenue growth of 23% after 4 years of < 3% annual growth more than tripling the size of the company after being stagnant at $7M for five consecutive years. 

·         Returned company to profitability in 2004 - after seven unprofitable years - posting record profits in from FY’04 to FY ’08 and more than doubling revenue per employee between FY ‘01 and FY ‘05. 

·         Restructured sales organization and implemented training, tracking programs and performance metrics (calls, demos, territory coverage, …) yielding increase in annual sales by 150% from FY ’01 to FY ’05 with fewer sales staff.  Posted back-to-back, record sales years in FY’04 and FY ’05 achieving above budget performance.

·         Increased subscription customer base of Web portal product by 225%.  Increased average sale price by 50% while decreasing attrition rate by 40% though targeting of higher-yield market segments and aggressive subscription renewals.  Successfully launched European product driving record new sales of the Web portal product line achieving local market dominance in two years.

·         Conducted primary market research and identified and delivered two new products to market representing 12% of overall revenues and over 25% of all new sales in FY’05 increasing to 20% of overall revenues and over 40% of all new sales in FY’06.

·         Resurrected declining client server-based product line, repositioning and re-pricing product and correcting delivery/installation issues.  Result was increasing annual sales from $1.75MM to over $5MM and increase in revenues from $3.7MM to over $7MM from FY ’01 to FY ‘05.

·         Personally managed relationship and failing project with key investor/customer.  Successfully re-negotiated contractual terms and completed project mitigating business and legal exposure. 

·         Migrated multiple departmental functions to offshore vendors increasing offshore utilization by 175%.  Held domestic staff growth to < 20% while increasing company revenues by 130%.

·         Designed & implemented new sales / revenue projection system for improved revenue forecasting.

·         Personally recruited or staffed one-half the company’s executive team.

TIS Worldwide/Starpoint Solutions, Boston, MA                                                           2000 – 2001
SVP & General Manager

Regional GM for this $120M+ eBusiness solutions company providing project-based IT services (UI design, Web development and back-office integration) and IT staffing services to the Fortune 1000.  Drove $18MM P&L across two offices building eCommerce and transaction processing solutions for B2B and B2C clients.

·         Restructured operations for profitability and high billing utilization rate (70%+).

·         Managed three out-of-control projects to successful completion adding/saving $5M+ of revenue.

·         Re-built regional sales organization signing multiple, new million dollar plus engagements.

·         Implemented marketing & sales support programs providing local branding and lead generation.

ChoosingHealth.com, Boston, MA                                                                                 1999 – 2000
President and COO

Recruited to join this formation-stage, Web-based start-up company offering B2B, ASP services to the heath care industry as well as content and services to consumers and disease specific advocacy groups. Refined business model in conjunction with founders and presented company vision to investors to secure seed funding (portfolio company #45 of garage.com).  Also performed sales, marketing, research and business development activities pitching initial customers and prospective strategic partners and negotiated relationships. 

Thomson Financial Services, Boston, MA                                                                     1994 – 1998
SVP & Group Managing Director, Treasury Solutions Group / General Manager, Paragon Group

Recruited to build a software and on-line services start-up business (to banks and brokerage firms) funded with internal seed capital for this $1 Billion+ provider of financial information, software, and processing services. Promoted to Group Managing Director of a multi-product, global business of 130 persons and $15 Million. Directed all functions including sales, marketing, product management, development, QA, account management, implementation, and client services with full P&L responsibility. Personally managed the sales department (year one +), making sales calls, hiring reps, defining territories, and setting quotas and comp plans.

·         Lead sales team (year one +) winning numerous, key sales and unseating every major competitor and expanding customer-base over 700% to 80+ clients.  Established business as market leader in less than 3 years, achieving break-even one full year earlier than business plan projections.

·         Increased average sale price 300% and price ceiling to $1 Million+ per unit from < $100,000.

·         Grew internal seed capital funded start-up business revenues from less than $200,000 to almost $8 Million and operating income from $700,000 annual loss to $1.9 Million gain in four years.  Met or exceeded every business plan milestone for start-up, including revenue growth and OI.

·         Led due diligence, created business plan, and drove Thomson's acquisition of a $6 Million international treasury & risk management vendor with worldwide offices.  Partnered with former founder to define worldwide integration plan and new organizational structure.

·         One of 17 managers, worldwide selected for executive training at INSEAD University, France.

Oxford & Associates, Peabody, MA                                                                              1992 - 1994
Director of Corporate Marketing

Established and led the marketing function for this 18-office, $70 Million supplier of domestic and international technical contract labor.  Performed market research (domestic and European) and created B2B and B2C direct marketing programs to support the sales and recruiter staffs and developed a suite of collateral materials.

·         Increased annual revenues by $27 Million and sales and recruiter productivity in 2-year period.

·         Defined and launched SFA/CRM DBMS project integrating sales and recruiting functions.

SunGard Financial Systems / Warrington Financial Systems / George K. Darling & Associates
Vice President of Marketing / Director of Sales & Marketing, Waltham, MA             1986 – 1991

Directed all sales (’86 -‘88), product marketing, marcom, and third-party relationships for this $75 Million software, on-line service processing, and consulting services vendor to the banking, brokerage and insurance industries.  Promoted through two mergers of six industry players to lead marketing for the combined company.

·         Achieved 20%+ annual revenue growth and above-budget profitability for four consecutive years.

·         Lead executive strategy meeting and drove development of 15-month action plan, setting successful company direction and priorities for product investment strategies.

·         Post-merger, defined new product strategy, restructured pricing of all products, and repositioned formerly competing products protecting $30 Million and adding $5 Million of recurring revenue.

General Electric Software International, Andover, MA                                                 1984 - 1986
Product Marketing Manager

Managed two accounting software systems for this $40 Million subsidiary of G.E.  Performed domestic and international market research and sales support. Defined product enhancement and rollout strategies and launched new products (including Europe-specific Accounts Receivable system) generating 20%+ above plan revenues.

Digital Equipment Corporation – Technical OEM Group, Maynard, MA                     1981 - 1984
Financial Analysis, Business Systems Analysis and Market Research & Planning – CIF and Accounts Receivable Systems.

EDUCATION

Professional Management Certificate – Marketing: Product Management, Boston University       - 1985

MBA – Finance/Accounting, Boston University Graduate School of Management, Boston, MA        - 1981

BA - Economics (Physics minor) w/Honors, University of Massachusetts, Amherst/Boston, MA     - 1979