Sebago Elementary School Withdrawal Committee Informational Meeting Thurs Sept 29, 2016

Withdraw or Remain in MSAD61? Option1 - The Withdrawal Process Structured process under State law Sebago would withdraw from MSAD61 Negotiate terms of withdrawal from MSAD61 Negotiate future Sebago students’ schooling Sebago voters approve the terms Sebago would form a new Sebago SAU

Withdraw or Remain in MSAD61? Option 2 – Remain with MSAD61 Sebago submitted an alternative proposal to MSAD61 Sebago would stay in MSAD61 but with terms Guarantee SES K-6 would remain open for 20 years Add gymnasium to SES Equivalent education and co-curricular programs If closed SES building returned to Sebago at no cost If SES K-6 enrollment drops below 40, then 1-year notice for closure by MSAD61 Sebago wouldn’t oppose CRES expansion

Sebago Withdrawal Timeline DATE EVENT February 18, 2016 Initial meeting with SWC and Friends   February 23, 2016 SWC organizational meeting with SAD 61 February 24, 2016 SWC meeting (consultant hired) March 10, 2016 SWC meeting (attorney hired) March 24, 2016 SWC strategy meeting-develop first withdrawal proposal April 6, 2016 SWC meeting-review draft withdrawal proposal and consider alternative proposal April 13, 2016 SWC submits initial withdrawal proposal to SAD 61 May 12, 2016 SWC receives SAD 61 withdrawal counterproposal; SWC meeting-review counterproposal and revise alternative proposal May 18, 2016 SWC submits alternative proposal to SAD 61

Sebago Withdrawal Timeline DATE EVENT June 2, 2016 SWC meeting-finalize new withdrawal proposal   June 13, 2016 SWC submits new withdrawal proposal to SAD 61 June 27, 2016 SWC meeting followed by informal meeting with SAD 61 to discuss alternative proposal July 21, 2016 SWC meeting-review status of alternative proposal and withdrawal proposal August 30, 2016 SWC receives withdrawal counterproposal from SAD 61 September 1, 2016 SWC meeting-review SAD 61 withdrawal counterproposal and discuss response September 19, 2016 September 22, 2016 Informal meeting with Superintendent and Board Chair of SAD 61

Summary of Required Elements of Withdrawal Agreement Topic   Summary 1. Continuation of educational services for Sebago students (after year 1). ●Sebago would educate students in grades k to 5 at Sebago Elementary School, with option to operate additional grades if Sebago chose to in future. ●For students in grades that Sebago does not operate, Sebago has proposed that SAD 61 would be the school of guaranteed acceptance for 10 year period. ●SAD 61 has declined to be school of guaranteed acceptance, and has indicated it would guarantee acceptance for only those students enrolled in grades 6 to 12 on withdrawal date. ●Parties disagree on amount of tuition that Sebago would pay to SAD 61 for Sebago students. ●Sebago would be responsible for costs of special education for Sebago students that are not included in the tuition rate. 2. Establish a withdrawal date. Withdrawal date would be July 1, 2018, which is earliest withdrawal date that DOE would approve. 3. Establish that withdrawal will not cause a need within five years for state school construction funds. As required by state law, no state construction funds would be requested for Sebago for 5-year period.

Summary of Required Elements of Withdrawal Agreement Topic   Summary 4. Establish how transportation services would be provided. ●SWC has requested 3 buses and likely would use a private contractor for transportation. ●SAD 61 has proposed that Sebago would receive 2 buses. 5. Provide for administration of the new SAU. Sebago would be a separate municipal school unit with its own part time Superintendent, and would be responsible to employ or contract for necessary administrative services. 6. Make provision for the distribution of financial commitments arising from outstanding bonds, notes and other contractual obligations that extend beyond the proposed date of withdrawal. ●Sebago would pay a share of debt that SAD 61 has incurred to date, until the debt is retired. ●Sebago would not be required to pay for debt that SAD 61 has not yet incurred, including debt that it may incur for CRES or other projects between now and the effective date of withdrawal. ●SAD 61 has requested that Sebago pay for a legal opinion to authenticate to the Maine Municipal Bond Bank that withdrawal will not affect SAD 61’s ability to pay its debts. 7. Provide for the distribution of any financial commitments to the superintendent of the RSU. SAD 61 has requested that Sebago pay $144,895 toward employment contracts of a number of SAD 61 administrators, including the Superintendent, that extend beyond the withdrawal date.

Summary of Required Elements of Withdrawal Agreement Topic   Summary 8. Provide for the continuation and assignment of collective bargaining and the continuation of representational rights. Consistent with state law, Sebago would assume SAD 61’s collective bargaining agreements as they pertain to employees at Sebago Elementary School, and would recognize SAD 61’s existing unions for purposes of negotiating terms and conditions of employment for Sebago Elementary School employees. 9. Provide the continuation of continuing contract rights for teachers. Consistent with state law, Sebago would recognize continuing contract rights of Sebago Elementary School teachers, and would credit probationary teachers for prior years of service at SAD 61. 10. Provide for the disposition of all real and personal property and other assets. ●Sebago would receive all real and personal property at Sebago Elementary School. ●SAD 61 has requested that Sebago pay for costs related to transfer and deeds, etc. ●SAD 61 has denied Sebago’s request for a percentage of all District assets.

Summary of Required Elements of Withdrawal Agreement Topic   Summary 11. Provide for the transition of administration and governance of the schools to the new SAU. ●If a withdrawal agreement is approved by at least 2/3 of Sebago voters, Sebago would then elect its own school committee which would hire a superintendent and oversee the new school unit. ●The voters of Sebago would be responsible for approving the annual school budget at a Sebago-only school budget meeting, and the annual budget would then be validated by Sebago voters at a referendum.

NEGOTIATIONS MAJOR ISSUES IN DISPUTE SAD 61 Proposal, August 2016   SWC Proposal, September 2016 Right of Sebago Students to Attend SAD 61 (Sections 3.C and 3.E) Only Sebago students already attending SAD 61 schools in grades 6-12 would be guaranteed acceptance by SAD 61. SAD 61 would serve as “school of guaranteed acceptance” for Sebago students in grades that Sebago does not maintain for 10-year period. Tuition Rate for Sebago Students (Section 3.C) Tuition for secondary students after first year following withdrawal would not be subject to “maximum allowable tuition rate”; would be increased up to 10% by a “debt service factor”; and Sebago would be committed to a ‘guaranteed floor tuition amount” based on prior year’s enrollment or enrollment commitment. Tuition for secondary students after first year following withdrawal would be determined based on “maximum allowable tuition rate” under 20-A M.R.S. §5805(2) (lesser of local rate or state average rate).

NEGOTIATIONS MAJOR ISSUES IN DISPUTE SAD 61 Proposal, August 2016   SWC Proposal, September 2016 Buses (Section 5) Two buses would be transferred to New Sebago SAU. Three buses would be transferred to New Sebago SAU. Individual Employment Contracts (Section 6.A) Sebago would pay a lump sum amount of $144,895 toward costs of employment contracts of SAD 61 central office/administrative employees that extend beyond the effective date of withdrawal. SAD 61 would be responsible for costs of the individual employment contracts of its own employees, which are included in calculation of the tuition rate Sebago will be paying.

NEGOTIATIONS MAJOR ISSUES IN DISPUTE SAD 61 Proposal, August 2016   SWC Proposal, September 2016 Cost of Bond Bank Opinion (Section 7.F) Sebago would be responsible for legal cost of Maine Municipal Bond Bank opinion. Sebago would not be responsible for legal cost of Bond Bank opinion. Undesignated Fund Balance (Section 9) Sebago would receive 14.33 % of undesignated fund balance for FY 2018. Sebago would receive 14.33% of average undesignated fund balance for FY 2016, FY 2017, and FY 2018. Allocation of SAD 61 Real and Personal Property (Section 12) SAD 61 would not reimburse Sebago for 14.33% of the value of all real and personal property owned by SAD 61 (calculated at $7.7 million, over and above the value of Sebago Elementary School). Sebago would forgo reimbursement by SAD 61 of $7.7 million if agreement can be reached on other disputed issues.

Where do we go from here? Alternative agreement has been rejected by MSAD61 Negotiations continue on the withdrawal agreement Sebago voters will make the ultimate decision