Meeting Was Held in Hope Academy Board Meeting Room

Hope Academy Charter School 57725 Twentynine Palms Highway #403 Yucca Valley, CA 92284

Meeting was held in Hope Academy Board Meeting Room

Special Charter Board Meeting Minutes November 19, 2015 @ 5:00PM

1.0 Call to Order 5:03 1.1 Members Present: Dave Nelson, Ted Smith, Jean Lundin and Dianne Swella

2.0 Pledge of Allegiance

3.0 Comments from Attending Public 3.1 No Comments

4.0 Discussion/Action Item(s) [As required by law or requested by the Board of Directors.] 4.1 The Board of Directors will consider approving to terminate the Master Services Agreement executed on July 1, 2015 between SavantCo Education, Inc. and Hope Academy Charter School. Motion: Ted Smith Second: Dianne Swella Discussion: Draft letters presented to board members. Original separation letters will be sent to SavantCo from legal firm YM&C. No feedback from SavantCo, either written or verbal, regarding approval of CSMC at last board meeting. Mr. Hannah has not contacted SavantCo regarding termination on recommendation from legal counsel. Vote: 4-0-0

4.2 The Board of Directors will consider approving to terminate the 2014 Ford F-150 Equipment Lease Agreement dated April 1, 2015 between SavantCo Financial, Inc. and Hope Academy Charter School. Motion: Dianne Swella Second: Jean Lundin Discussion: At last meeting, board approved either purchasing or leasing five vehicles. Lease option was chosen for four Dodge Darts and Dodge Ram pickup. Upfront cost is little over $21,000. Lease agreement is 3 years, special lease designed for businesses, no mileage fees. Savings of approximately $5,000 month. Have Dodge Darts now, should get truck soon. Waiting for shell to be installed. Suggestion for magnetic graphic signs to be put on vehicles for advertising. Victorville Motors gave us 2016 vehicles instead of 2015 as originally agreed upon at no additional charge. Question regarding item 4.1: what is savings to terminate agreement and change to new company? SavantCo charges almost 6% of budget, CSMC will charge about 1.9%.

1Board of Directors Meeting November 19, 2015 Hope Academy Monthly for SavantCo is $58,000 and CSMC is $22,000. Thirty day notice – letters will be sent certified mail and should arrive to SavantCo prior to December 1st. Vote: 4-0-0

4.3 The Board of Directors will consider approving to terminate the 2015 Ford Fusion Equipment Lease Agreement dated April 1, 2015 between SavantCo Financial, Inc. and Hope Academy Charter School. Motion: Dianne Swella Second: Jean Lundin Discussion: Can the action items be combined? Mr. Hannah explained that these are separate leases and should be voted on separately. Vote: 4-0-0

4.4 The Board of Directors will consider approving to terminate the 2014 Kia Cadenza Equipment Lease Agreement dated April 1, 2015 between SavantCo Financial, Inc. and Hope Academy Charter School. Motion: Ted Smith Second: Dave Nelson Discussion: None Vote: 4-0-0

4.5 The Board of Directors will consider approving to terminate the 2014 Kia Optima Equipment Lease Agreement dated April 1, 2015 between SavantCo Financial, Inc. and Hope Academy Charter School. Motion: Jean Lundin Second: Ted Smith Discussion: None Vote: 4-0-0

4.6 The Board of Directors will consider approving the written notice to SavantCo Financial, Inc. that Hope Academy Charter School will no longer require the use of Suite 200 of the Joshua Knolls Professional Building, and will vacate those premises by December 31, 2015. Motion: Dave Nelson Second: Dianne Swella Discussion: This is the Apple Valley lease, with 18 students at the center. SavantCo subleased to Hope Academy, possible illegal lease, represented themselves as landlords. Space originally used by SavantCo as office space, but needed to sublease the space when SavantCo moved to the Los Angeles office. Mr. Hannah contacted landlord regarding original lease, which specifically states that space cannot be subleased without written permission by landlord. No additional response from landlord. Attorney recommends to send letter regarding vacating the premises. Vote: 4-0-0

2Board of Directors Meeting November 19, 2015 Hope Academy 4.7 The Board of Directors will consider approving the abolishment of various positions of employment per enclosed documents. Motion: Ted Smith Second: Dave Nelson Discussion: Letters were drafted by YM&C, but on HA letterhead. Names will not be stated in public meeting due to confidentiality. In prior meeting, these positions were approved by the board to be eliminated. Vote: 4-0-0

4.8 The Board of Directors will consider approving the Integrity Tech Total Support Contract for IT services. Motion: Dianne Swella Second: Jean Lundin Discussion: Received proposal from new company. Negotiated monthly cost from $26,000 to $18,000, but cost still too high. Exploring possibility of bringing IT person in-house, bringing costs down by approximately $150,000 a year. Direction from board is to hire an IT person now and ratify the position at either the December or January board meeting. Vote: 0-4-0

5.0 Future Business/Information Items 5.1 Future Business/Information Discussion Discussion: Site visits after holidays. Put on December 8th agenda for discussion. Mr. Hannah will put together a list of possible dates.

5.2 The next board meeting of the Hope Academy Board of Directors will be held on December 8, 2015 at 5:00PM at Hope Academy, 57725 Twentynine Palms Highway #403, Yucca Valley, CA 92284.

6.0 Board Member Comments

7.0 Adjournment of Open Session 7.1 Time: 5:31

8.0 Adjourn to Closed Session 8.1 Time: 5:32

9.0 Closed Session The Board of Directors will hold a closed session to discuss the following: 9.1 Public Employee Discipline/Dismissal/Release/Resignation/Transfer: Personnel issues.

There were no actions as a result of closed session.

Time Closed: 6:38

3Board of Directors Meeting November 19, 2015 Hope Academy 4Board of Directors Meeting November 19, 2015 Hope Academy