CASTLE ROCK — Some school districts in Colorado allow board members to receive lucrative contracts from the districts they represent — if they meet certain criteria.
Most recently, the Douglas County School Board approved a $3.6 million contract for a building renovation by a member of the board.
Board member Tim White, majority owner of White Construction Group in Castle Rock, did not vote on the project, and his company was the lowest bidder.
Those two exceptions allowed White, who is term limited and will be off the school board this year, to snag the contract.
While it may be legal, according to Colorado law, it does raise questions, some say.
“Technically, the school board followed protocol, although it’s reasonable that some people are raising eyebrows,” said Chantell Taylor, director of Colorado Ethics Watch. “At first glance it looks fishy, but they did follow procedures.”
The Colorado Association of School Boards has drafted policies, including those about conflict-of-interest issues, that school districts throughout the state use to create their own policies.
The policies are similar to what state law says.
By law, a school board cannot give a contract to a fellow board member unless it meets several criteria. Those include being the lowest bidder, that the board member in question did not try to influence others on the school board, whether a quorum was met for the vote, and that the board member abstained from the actual vote.
“You may have to look at the political ramifications of that, but from my viewpoint, they did everything right,” said Kathy Shannon, an attorney for the Colorado Association of School Boards.
Even so, Les Lilly, a Douglas County school bus driver, weighed in against the White Construction contract at a recent board meeting.
“I just think it was wrong,” Lilly said. “This guy stands to make millions of dollars for his company. It just doesn’t feel right.”
The request for proposals to redevelop the Foxworth Building into a school district support center went out in October. Several companies were prequalified, and those were allowed to enter sealed bids that were due at the end of January.
Of the seven sealed bids, White’s bid was $55,000 lower than the nearest one, according to records, and the school board (with White abstaining) awarded his company the contract on Feb. 17.
White said everything was handled aboveboard, and that he has shied away from bidding on projects in the past.
“For seven years I didn’t want to get involved with a contract with the district,” White said. “If there was an issue that popped up, it would be after I’m off the board. We followed all the rules to the Nth degree.”
Kristine Turner, president of the Douglas County School Board, said the law was examined by attorneys for both the school board and school district. Both found the law allowed the board to award the contract to White Construction.
She said that in awarding White the contract, the district is keeping money in the community by hiring a local company and saving on the cost of the project.
“The board was very thoughtful and mindful of the public perception,” Turner said. “We took time to really look at this and say, ‘OK, what does our policy say about this?’ and we sought legal opinions as well.”
Colorado Association of School Boards officials could not say how many districts in the state allow exemptions in their conflict-of-interest policies.
The Jefferson County Public Schools has similar policies in place, said spokeswoman Melissa Reeves, but she did not know if the board has ever awarded a contract to a board member.
The Cherry Creek School District does not allow awarding a contract to a board member under any circumstances, spokeswoman Tustin Amole said.
“School districts rely on the community’s perspective on how they do business,” Amole said. “Even if it is the lowest bid, perception is very important. If a community believes there is a conflict of interest, it’s problematic.”
Carlos Illescas: 303-954-1175 or cillescas@denverpost.com
