CHARTERSCHOOLACCOUNTABILITYCOMMITTEE

DELAWAREDEPARTMENTOFEDUCATION

FamilyFoundationsAcademy

MAJORMODIFICATIONAPPLICATIONINITIALREPORT

CSACInitialMeeting:July13,2015

CSACInitialReportPublished:July15,2015

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On June 29, 2015, Family Foundations Academy submitted an application for a majormodificationofitscharter.ThefollowingwereinattendanceattheInitialMeetingoftheCSAConJuly13,2015:VotingCommitteeMembersoftheCharterSchoolAccountabilityCommittee

David Blowman, Chairperson of the Charter School Accountability Committee andDeputySecretaryofEducation,DDOE

KarenFieldRogers,AssociateSecretary,AdultEducationandSchoolSupports,DDOE AprilMcCrae,EducationAssociate,ScienceAssessmentandSTEM,DDOE BarbaraMazza,EducationAssociate,ExceptionalChildrenResources,DDOE Deborah Wilson, President and CEO, Metropolitan Wilmington Urban League,

CommunityMember TashaCannon,DeputyOfficerTalentRecruitment,SelectionandStrategy,Teacherand

LeaderEffectivenessUnit(TLEU),DDOE(attendingandparticipatingviatelephone)

StafftotheCommittee(Nonvoting) CatherineHickey,DeputyAttorneyGeneral,CounseltotheCommittee Jennifer Nagourney, Executive Director, Charter School Office, DDOE (attending and

participatingviatelephone) JohnCarwell,EducationAssociate,CharterSchoolOffice,DDOE BrookHughes,EducationAssociate,FinancialReformandResourceManagement,DDOE

RepresentativesofFamilyFoundationsAcademy

CharlesS.McDowell,BoardPresident NicholasMedaglio,DirectorofFinanceandOperations

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DiscussionThefollowingwasdiscussed:

FamilyFoundationsAcademy(FFA)hasappliedforamodificationtooffereducationalservicesatasiteotherthanthesiteapprovedaspartoftheschoolscharter.

AsummaryoftherequestTheschoolexplainedthat itcurrentlyhastwocampuses.Theelementaryschoolhasapproximately500studentsandiscurrentlylocatedat1101DelawareStreetinNewCastle,Delaware.ThemiddleschooliscurrentlylocatedattheformerSt.MatthewsCatholicSchoolinNewport,Delaware,whichisrentedspace.Theapplicationisforapprovaltomovetheschoolintwostepsto160and170LukensDriveinNewCastle,Delaware,whichwasrecentlyvacatedbyReachAcademy.Thissummer,theelementaryschoolwillmoveinto170LukensDriveandthemiddleschoolwillmoveinto 1101Delaware Street. Next year, themiddle schoolwillmove into 160 LukensDrivesothattheelementaryandmiddleschoolswillbeinadjoiningbuildings.

Financial reasons for themoveTheschoolexplained that the leaseatSt.MatthewsexpiredonJune30,2015andtherearenocontinuingcostsassociatedwiththe lease.FFA owns the facility at 1101 Delaware Street and plans to sell the property. Thecurrentmortgage isapproximately$3.5millionand itwasappraisedacoupleofyearsagoat$4.4million.Theschoolishopefulthatitwillsellthepropertyforatleastenoughmoneytopayoffthemortgageand,hopefully,havesomeproceedsleftover.Fromanoperatingcostperspective,theschoolanticipatesthatitsoccupancycostswilldecreasebyapproximately$170,000oncethetwomovesarecompleted.Thisestimateassumesthat the school is successful in selling theproperty located at 1101Delaware Street,whichitisconfidentthatitwillbeabletodo.

CostsassociatedwiththemoveTheschoolstatedthatthecostsassociatedwiththemove, including moving and repair costs, are estimated at $100,000 this year and$120,000nextyear. Theschoolexpects topay thosecosts from itscarryoversurplusfunds,whichcurrentlyexceed$2million.

ReasonsforthemoveAsidefromthefinancialbenefitsassociatedwiththemove,theschoolcitedtwoadditionalreasonsforthemove.First,theNewportfacilityisrundownandresults instudents leavingtheschoolafterthe4thgrade. Additionally,theschoolanticipatesthathavingbothcampusesatonelocationwillbeextremelybeneficialwithrespect to management and staff, camaraderie among staff, and certain operatingefficiencies.

StatusoftheleaseTheschoolreportedthat,inthehourprecedingtheCSACmeeting,FFAobtainedasignedleasefromthelandlord.

Whenafailuretosellthe1101DelawareStreetpropertywillraiseconcernTheschoolexplained that the carrying cost for theproperty is$400,000$500,000, such that theschools carryover funds of over $2million offer a couple of years of cushion. Theschoolalsohasabackupplanformakinguseofthepropertyifitdoesnotsell.

Outreach and communication with parents about the move to date The schoolrespondedthatitofficiallycommunicateditsplanstoparentsapproximatelytwoweeks

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ago,althoughthenewswasalreadyinthewindforawhile.Theschoolreportedthatalloftheresponseshavebeenverypositiveandtheschoolanticipatesthatitwillhaveapositiveimpactonenrollment.TheschoolanticipatesthatanumberofReachstudentswillenroll.Also,theschoolheardfromacoupleofparentsofrisingFFA5thgraderswhodidnotintendtosendtheirparentstotheNewportfacilitybutchangedtheirmindoncetheyheardabout the location change. Asof lastweek,enrollmentwas in the790s.FFAiswellonitswayto810andhopestohaveevenmorestudents.

Clarification regardingwhatmoves have taken place TheNewport lease has beenterminatedandFFAhasalreadymovedoutofthebuildingtotheelementary location.Theelementarymovehasnotyettakenplace.

MealsItwasnotedthatneitherPencadernorReachservedmealsfromthe location.Theschoolrespondedthatitintendstocontractoutthemealservices.Theschoolhasthecapabilityandequipmenttoprovidetheservice itself,butpreferstofindavendorwiththerightpriceandquality.Fromafinancialstandpoint,theexpenseandrevenuenumbersmightchange,butthebottomlinewillnotbeimpacted.

BusroutesavingsTheschool isattemptingtoadjust itsarrivalanddismissaltimestobeable touse the samebuses forboth schools inaneffort to savemoney thisyear.Theremaynotbemuchsavings,asitdependsonhowthisideapansout.

WhetherthesecondmovewouldtakeplacemidyeariftheNewCastlebuildingsellsThe school responded that the only thing that is preventing it from combining bothcampusesnow is the 1101Delaware Streetproperty. If the school can find abuyerbeforenextsummer,itwillmovethemiddleschoolintothesecondbuildingsooner.

The schoolsmotivation for its anticipated expansion to 1,100 students The schoolstated that themiddle school class sizeshavebeen smaller than thoseat themiddleschool because of the limited space at theNewport facility. If the school keeps itselementarystudentsastheymoveup,enrollmentwouldincreasesignificantly.

WhethertheschoolhasexploredtheoptionofofferingK5,ratherthanK4Theschoolresponded that thedecisionhasbeendrivenby space limitations. At1101DelawareStreet,theschoolsK4programwasalreadyatcapacity.170LukensDrive,whichisoneofthetwobuildings,cannotfitK5.

WhethertheschoolhasgivenanythoughttoamodificationbasedonenrollmentandwhenthatmightoccurTheschoolrespondedthat ithasnotyetthoughtaboutthis,butwouldinthefall.

ConclusionThefollowingspecificinformationwasrequestedbytheCSACtoinformitsdecisionmaking:

Acopyofthesignedlease(submittedseveralhoursaftertheconclusionofthemeeting)Mr.Blowmanaskedwhethertherewereanycomponentsoftheapplicationthatanymembersfeltdidnotmeetthestandardforapositivefinalrecommendation.Nonewerenoted.

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NextSteps:

The first of two public hearings will take place on July 20, 2015, in the 2nd FloorAuditoriumof theCarvel StateOfficeBuilding,which is located at820N. French St.,Wilmington,Delaware,beginningat5:00p.m.

The schools response to the Initial CSAC Report, if the school chooses to submit aresponse,isdueby5:00p.m.onJuly31,2015.

TheFinalCSACMeetingwillbeheldonAugust4,2015,inthe2ndFloorCabinetRoomoftheTownsendBuilding,whichislocatedat401FederalSt.,Dover,Delaware,beginningat1:00p.m.

AFinalCSACReportwillbe issuedno later thanAugust7,2015,andwill include theCSACsrecommendationontheapplication.

A secondand finalpublichearingwill takeplaceonAugust10,2015, in the2ndFloorAuditoriumof theCarvel StateOfficeBuilding,which is located at820N. French St.,Wilmington,Delaware,beginningat5:00p.m.

ThepubliccommentperiodwillcloseonAugust14,2015. The Secretary of Educationwill announce his decision at the regularmeeting of the

StateBoardofEducationonAugust20,2015.