Schools Chief Didn't Reveal Ties to Company
Jason Spencer, Houston Chronicle, July 27, 2004

Spring Branch Superintendent Yvonne Katz won't be reprimanded for not disclosing she is a paid consultant for an energy conservation company that stands to make millions from the school district, the school board's president said Monday.

"The company has a proven track record of saving school districts and taxpayers money," board President Wayne Schaper said. "Being a taxpayer, it's no big deal to me. But I would like to know in the future."

Katz recommended the school district sign a deal with Wichita Falls-based Energy Education shortly after Spring Branch hired her in 2002. Energy Education develops energy-saving plans specific to each school district, then trains the district's employees to make sure the plans work.

The school board may seek to amend Katz's $250,000 annual contract to require her to tell them when one of her employers wants to do business with Spring Branch, Schaper said. Or the board may simply adopt a disclosure policy, he said.

Schaper said he speaks for Spring Branch's six other school board members. Those who could be reached Monday - Mike Falick, Susan Mathews, Barbara Larson and Susan Kellner - declined to comment. Board members David Converse and Theresa Kosmoski did not return phone calls and e-mails seeking comment.

Katz said she earns $500 for every meeting she arranges between other school leaders and the company. She said she set up two such meetings with other districts in the past year, but couldn't guess how many she'd orchestrated since Energy Education hired her in 1998. She said she didn't take any fee for getting Spring Branch's business.

"There was no material benefit to me," she said. Katz also said she did not feel obligated to tell the school board about her work for the company before they voted on the contract.

Katz's contract with Spring Branch permits her to do paid consulting work for companies. She said she had the district's best interest in mind when she recommended the Energy Education deal.

"That's what boards want," Katz said. "They want superintendents to have ideas."

The district expects to save $700,000 on utility bills this year, she said. Spring Branch must pay Energy Education 25 to 35 percent of its savings, Katz said. That works out to between $175,000 and $245,000. If the district saves what Katz expects to be $28 million over the next 10 years, Energy Education would get $7 million to $9.8 million.

The company hires current and retired school superintendents as consultants because they have better access to other school leaders, said Bill Spears, Energy Education's founder and chief executive:

"The ... superintendent is basically an avenue to get our foot in the door and get an audience with the decision maker."

The company's Web site includes testimonials from school superintendents around the country boasting about their energy savings. Katz is one of them.

More than 600 schools nationally have contracted with Energy Education, saving nearly $1 billion, according to the company.

Spears said he couldn't discuss specifics of the company's program for competitive reasons, but said they are more complicated than simply reminding teachers to turn off their computers and the lights when they leave for the day.

"We are change agents," he said. "That involves not only the psychology of change, but also learning theory and the overall learning process, and it's easier said than done."

jason.spencer@chron.com


- Jason Spencer
Houston Chronicle
2004-07-27