Mary Ann Cervantes: Response to Molly

From Molly Janczyk, January 13, 2008
Subject: Cervantes Response: Request Again: Ques. for STRS Board Members: 1/10/08

Mary Ann,

Thank you for your response. I greatly appreciate your time and effort. Please do not take it personally that I feel it did not respond to my request asking for some commonality regarding this issue.

The below letter offered no new ground to appease membership for whom you hold this position. You simply feel the Exec. Direc. should make the decision which confuses me since all of us know the Exec. Direc. has acted on his own in some of these issues. We have no knowledge of what the next Exec. Direc. feels on this topic based on his former experience base.

I was hoping for real consideration and suggestions for a collaborative effort on this issue which would satisfy membership as you work under the guidelines of ORC solely on their behalf and in their best interests with prudence.

I asked that these points be addressed and or used as some groundwork of a beginning of dialogue on this issue based on membership input.

1. The Exec. Direc. may decide if an STRS Assoc. needs outside legal counsel BASED on the advice of the STRS Legal Team and the AG as well as STRS policy and job description. ***TO BE DETERMINED LIMITS APPLY.

Agree or disagree and why_____

2. No STRS Assoc. may obtain outside counsel without approval as stated above and then submit counsel bills to STRS.

Agree or disagree and why_____

3. If a case is complex or in dispute, it may be submitted to the STRS Board for discussion and resolution.

Agree or disagree and why_____

4. There needs to be a policy such as above written into STRS policy so as to correct past behavior of submitting legal bills without previous approval AND to control costs. Limits needed for legal counsel.

Agree or disagree and why_____

5. Policy needs to be written as we cannot rely on an individual's subjective discretion as previously suggested: "The Exec. Direc. now knows what we want and will not do this again so we need no policy." (Seems poor business practive).

Agree or disagree and why_____

Mary Ann, I am opening this up for discussion as you did not state confidential and since this is a public issue for public debate. We all wish to move ahead and resolve this issue.

STRS BOARD MEMBERS: Please tell me your thoughts and please explain with specifics why it is good policy in sound business practice. I believe sound business practice plans for events as thoroughly as possible. Yes, rare events may ensue and possible need for outside counsel be in order but standards must be in place to control costs and circumstance within certain parameters.

Please display a willingness to discuss and find common points on which to agree so as to move forward towards resolution not just for staff and Board members but for your membership: Your number 1 priority!

I have no wish to argue but just to find a working start for a policy for all because other than that, it is not responsive to membership.

Thank you, Molly J.

From Mary Ann Cervantes, January 13, 2008
Subject: Re: Request Again: Ques. for STRS Board Members: 1/10/08

Molly:

Thank you for your letter. I have examined this issue from both sides of the argument. Hasty action without proper study during the retreat this month would be irresponsible and any important issue is worth its due study. Long ago, former board members considered these practices important enough to include in the STRS Board Policies. Also, as STRS is in the process of hiring a new executive director, the board needs to be careful and thorough about the definition of that role as we are scrutinized by talented candidates.

I assure you that there was no pressure put on me to vote as I did other than an act of conscience. However questions regarding this issue were posed to anyone with information in accordance with my responsibility to prepare for the session. No doubt, each board member needs to find out as much information as possible in advance to help with the process and discernment.

Of course, this issue relates back to the partial payment of legal fees for a few STRS employees. Throughout my 30+ years in education I watched a number of individuals perform ethically and correctly, and yet found themselves in litigation. We all know that even the most innocent people can find themselves in a lot of trouble due to the half-truths, private agendas, and underhandedness of others. Although we cannot cover every contingency, nor should we, it only makes sense that an executive person makes the decisions about whether or not an employee is entitled to legal representation or whether it would be appropriate to pay for legal expenses. Certainly the attention to this issue is germane to any future case where STRS could be the focus of legal action by an employee.

In the case of the STRS employees who received partial payment for legal fees, the employees were cooperating with an investigation by the Ohio Ethics Commission, but were also led to believe that they could be subject to legal action. Also, the legal counsel for STRS informed them of his limitations to represent them and the office of the Ohio Attorney General never offered services. In response to those circumstances one would be a fool to wait around and see what developed before hiring his or her own lawyer.

As I expect STRS employees to be ethical and fair so too I expect STRS to be a fair and just employer. Certainly STRS’s recent court case has cost the members of this pension fund millions of dollars due to unfair labor practices and I am definitely not proud of that stigma. There is no question that we must be accountable and prudent about all spending. However, we are a pension of teachers, people of integrity, and I would like to think that we operate fairly with our employees in the same manner that we expect to be treated by our administrators. I will approach the issue of legal fees with an open mind to serve the members of this pension with my best efforts. As Always Molly, thank you for your question, your frankness, and for your willingness to read my opinion. I look forward to seeing you at the meeting.

Mary Ann