06-30-2011 Special School Board Meeting
Agenda Item #12


Title
Notification of Intention to Terminate Palm Bay Community Charter – Patriot Campus Charter Contract

Discussion

The Superintendent recommends giving Palm Bay Community Charter - Patriot Campus charter school a ninety (90) day notice of the School Board's intention to terminate the charter contract for the reasons cited in the attached proposed notice.

Pursuant to s. 1002.33(8), F.S., a charter school contract may be terminated by the Sponsor for failure to meet generally accepted standards of fiscal management.

As reported by the external auditor, Berman Hopkins, Patriot has met one of the conditions for "financial emergency" for two (2) consecutive years as described in s. 218.503(1):

  • s. 218.503(1)(a), F.S. - Failure to make bond debt service payments when due, as a result of lack of funds.
  • s. 218.503(1)(3), F.S. - A total fund balance deficit and a government-wide ending net deficit.

Patriot entered into a capital lease for financing the acquisition of the school facility in 2006, in the amount of $21,000,000.  Patriot has been unable to make capital lease payments due to insufficient funds subsequent to December 31, 2008.  Non-payment of the capital lease resulted in a default of the financial agreement.



Recommendation
Recommend that the Board provide Palm Bay Community Charter School - Patriot Campus the attached notice of intention to terminate the charter contract.

Meeting Date(s)
Consent w/o Information - 6/30/2011

Authority for Action
1002.33, F.S.

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

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Contact

Vicki Mace, Director of School Choice

Ext. 395




Attachment:  Patriot Official Letter.pdf