The Montrose County School District Board of Education voted 4-3 Tuesday night to place Superintendent Carrie Stephenson on paid administrative leave pending the outcome of an ongoing third-party investigation involving employee complaints connected to Olathe Elementary School and the departure of its principal, Jennifer Hesse, who was put on paid leave and later resigned.
Board members Neisha Balleck, Scott Scarborough, Ted Valerio and Tiffany Vincent voted in favor of the leave. Jody Hovde, Tom West Shane Daly voted against it.
The board later voted to designate Assistant Superintendent Jessica Kalb to provide temporary acting superintendent coverage for district operations pending her acceptance.
The decision is a reversal from April 29, when the board considered but ultimately declined, in a 4-3 vote, to place Stephenson on leave while discussing employee complaints connected to Olathe Elementary School. Vincent and Daly in the April 29 meeting voted to take the paid leave decision off the table but Vincent flipped the majority.
Board members said Tuesday’s action was prompted by concerns that arose after a May 21 meeting Stephenson held with Olathe Elementary staff while a third-party investigation was already underway.
New concerns emerge
Board President Neisha Balleck said she began receiving reports after the May 21 meeting that led her to call Tuesday’s special meeting.
“After the investigation began, I was contacted by multiple people regarding a meeting at Olathe Elementary School on May 21,” Balleck said.
According to Balleck, those reports raised concerns about whether employees would feel comfortable participating in the ongoing investigation.
“Based on those reports of what happened at the staff meeting, I’m concerned that employees may not feel comfortable freely participating in the ongoing investigation,” she said.
Balleck said she later spoke with the independent investigator.
“I’ve spoken with the third-party investigator regarding this matter, and she has confirmed that multiple employees have shared with her the same factual account of what happened on May 21st,” Balleck said.
During discussion, board member Shane Daly asked whether the investigator had requested that Stephenson be removed from district operations.
Balleck indicated the decision to consider leave originated with the board rather than the investigator.
“For me, like the integrity of this process is really important, and that is the reason that this has been brought,” Balleck said.
Balleck said staff members contacted her with concerns following the May 21 meeting and that the investigator later interviewed employees as part of the ongoing investigation.
Valerio, Daly and Balleck repeatedly emphasized that the action was intended to protect the integrity of the investigation rather than punish the superintendent.
“This non-punitive administrative leave is not designed to punish or retaliate against the superintendent,” Valerio said.
Valerio said the board’s immediate responsibility was to ensure the investigation could continue without interference.
“What we’re doing now, and what’s on the table right now, is whether or not we allow that investigation to occur without interference,” he said.
Valerio also said the board’s concerns stemmed in part from what he viewed as a lack of documentation surrounding an earlier employee complaint.
“This basically started because another investigation wasn’t done,” Valerio said. “I don’t expect homicide level investigations, but I do expect documentation.”
Vincent said employees reported that “something along the lines of” they were being told they had “ruined the careers of two principals now” and that those alleged statements convinced her that Stephenson needed to go on paid administrative leave.
“It’s just a way to protect everybody involved,” Vincent said. “It’s just a way to keep everybody isolated so that there’s not more being piled on.”
No findings from the investigation have been released, and the third-party review remains ongoing. The investigation, which Balleck said is costing the district $275 an hour, could last another several weeks.
Stephenson disputes allegations
Stephenson strongly rejected the allegations and argued, in a lengthy prepared statement, that the board acted without first seeking her account of what occurred.
“I have nothing to hide, and I believe our community deserves to know exactly what is being alleged and how this process has unfolded,” she said.
Stephenson directly denied claims that she intimidated employees or attempted to influence the investigation.
“I did not intimidate employees. I did not threaten employees. I did not discuss the investigation. I did not discourage anyone from participating in an investigation.”
According to Stephenson, the May 21 meeting was held as part of the process of identifying the qualities staff wanted in a future principal following the departure of Olathe Elementary Principal Jennifer Hesse.
Stephenson said the meeting focused on staff concerns, school culture and plans for supporting the school moving forward.
“The conversation also included the reality that the climate and culture at Olathe Elementary is divided,” Stephenson said. “That is not a secret. It’s not an accusation, it is a fact.”
Stephenson said she also discussed plans to bring in outside support to help improve communication and trust within the school community.
“That was the purpose of the meeting. It was not about the investigation. It was not about pressuring staff. It was not about protecting anyone.”
Stephenson also criticized the process leading up to Tuesday’s vote.
“Before calling a special meeting to consider suspending me, President Balleck did not ask me what happened. She did not ask me what was said. She did not ask me for my account of the meeting.”
She later added, “This process does not sit right.”
Stephenson also argued that she had been largely excluded from the investigation process despite recommending that an outside investigator be hired.
“I was not involved in selecting the investigator. I was not given the name of the investigator. I was not provided the scope of the investigation. I was not provided the timeline,” Stephenson said.
Stephenson further claimed the district administration itself had not been contacted by the investigator and that she had not been provided information about the investigation’s cost.
Ahead of the meeting, Stephenson circulated a message to community members asking them to contact board members and express support for her leadership. In the message, she described the allegations against her as “unfounded” and “based on hearsay.”
Governance dispute now in the open
As the discussion continued, the discussion went beyond the events of May 21.
Stephenson submitted a formal grievance during the meeting alleging governance violations, retaliation and improper interference in district administration by board members.
At the center of the grievance were allegations that individual board members, particularly Balleck, had exceeded the authority granted to them under district policy and Colorado law.
“A school board acts only when it acts together in a properly noticed public meeting,” Stephenson said.
The grievance, which only a portion of was read into the public record, alleges that after Stephenson raised concerns about governance and board authority, she became the target of adverse actions, including public criticism, evaluation concerns, salary discussions and the current suspension effort.
“When I question individual board member authority, insist on proper process, or follow my understanding of my contractual role, the response has not simply been disagreement,” Stephenson said.
Stephenson requested an independent review of those concerns as well as mediation and governance training.
Stephenson’s grievance cited a March dispute involving an employee complaint as an example of what she described as improper involvement by an individual board member in district administration.
According to Stephenson, Balleck forwarded an employee complaint on a Sunday evening and directed Stephenson to provide an investigation report related to an earlier complaint, or confirm whether no investigation had been conducted, by the following day.
“Her requested timeline gave me less than 24 hours to review and respond,” Stephenson said.
Stephenson said she informed Balleck that she was participating in cabinet and budget meetings and would respond by the end of the business day. According to the grievance, Balleck continued emailing and texting her regarding the request.
Stephenson said Balleck later texted: “Just so I am clear, are you declining to give me the information I am requesting by the time I requested it?”
Stephenson argued that the interaction represented part of a pattern of individual board members attempting to direct district operations outside the authority granted to a single board member.
Stephenson further alleged that one day after raising governance concerns related to that request, she learned Balleck intended to place an item on the board agenda to discuss reducing her salary.
“This represents a clear example of retaliation,” Stephenson said.
Board divided over timing and process
While the board majority used language about protecting the investigation, Hovde questioned whether the board should act before the investigation is complete.
Hovde argued that the board had previously agreed to allow the investigator to finish her work before making decisions regarding Stephenson.
“We agreed that we were going to let the third-party investigation finish the investigation … and then make a decision about Dr. Stephenson,” Hovde said.
Hovde also raised concerns about transparency surrounding the investigation itself. Hovde said she did not know the investigator’s identity until Tuesday night’s discussion.
“Maybe I misunderstood this, but I missed the name of the investigator. I don’t know who this is,” Hovde said. Later, she added, “I didn’t know her name until tonight.”
Hovde questioned whether information related to the investigation was being shared equally among board members.
“When you’re sending emails and you (Valerio and Balleck) know and the rest of us don’t, I think that’s worrisome,” Hovde said. “I feel like you’re not being transparent with all board members or with me.”
Balleck responded that she had communicated with the investigator after employees contacted Balleck with concerns about the May 21 Olathe Elementary meeting and said the investigator had asked for assistance contacting potential witnesses.
Hovde also expressed concerns about public confidence in the board.
“We don’t have a lot of public trust right now as a board,” Hovde said.
Despite those concerns, the board majority concluded that the allegations surrounding the May 21 meeting warranted immediate action.
What happens next
During discussion of the leave, district legal counsel Bryce Carlson said administrative leave is commonly used when an employer seeks to avoid any perception of influence during an investigation.
“The purpose of that paid leave is to ensure that there is a separation such that there is no perception that there is any undue influence on employees,” Carlson said.
Following the vote, the board designated Assistant Superintendent Dr. Jessica Kalb to provide acting superintendent coverage during Stephenson’s leave. During the meeting, Kalb said she would accept the assignment contingent upon discussions with the board regarding several conditions. Those discussions were expected to occur following the meeting.
The board also amended its action to allow Stephenson to continue performing designated duties assigned by the board or its designee while on leave. Board members later designated Hovde as the point of contact for those duties, if necessary.
On Wednesday, Balleck released a letter to district students, families, staff and community members stating that Kalb would serve as acting superintendent during the leave period and describing Stephenson’s leave as “paid non-punitive, non-disciplinary leave pending the outcome of a third-party investigation.”
In the letter, Balleck emphasized that district operations would continue without interruption.
“The Board remains committed to maintaining stability across the district and ensuring that teaching, learning, and student services continue without interruption,” Balleck wrote.
Board members indicated the third-party investigation could take several more weeks to complete. Once the investigation is finished, the board is expected to review the findings and determine what further action, if any, should be taken.
At the conclusion of Tuesday’s meeting, District Finance Director Emily Imus told board members she would soon be presenting the district’s budget and asked when the district might have a better estimate of the total cost of the third-party investigation. Balleck said she would follow up with Imus regarding the matter.
Editor’s Note: This has been edited to show Shane Daly voted against the paid leave.
Justin Tubbs is the Montrose Business Times editor. He can be reached by email at justin@montrosebusinesstimes.com or by phone at 970-765-0915 or mobile at 254-246-2260.
