Plan to Reorganize the Municipalities of Patten, Sherman ...pattenmaine.org/wp-content/uploads/2017/11/RSU-89... · Stuart Kelley Nicole Mitchell John Qualey Philip Knowles For Mount

Plan to Reorganize

the Municipalities of Patten, Sherman, Stacyville & Mount Chase

into a new Regional School Unit

Dated: June 29, 2017

Submitted to the Commissioner of Education for the State of Maine by the Reorganization Planning Committee, comprised of:

For Sherman:

Jeffery C. PackardSteve GouldStuart KelleyNicole MitchellJohn Qualey Philip Knowles

For Mount Chase:

Linda CraigRhoda HoutzTerry Thurston-HillAndrew Kaye Jon Ellis

For Patten:

Richard Schmidt IIILeslie Gardner Alicia McNally

For Stacyville:

Brian McQuarie Desiree E. Harrison Heidi L. LakeDavid Pratt

Reorganization Plan for the Towns of Final DraftPatten, Sherman, Stacyville & Mount Chase

This Reorganization Plan (the “Plan”) is submitted by the municipalities of Patten, Sherman, Stacyville and Mount Chase (the “Member Municipalities”) in accordance with 20-A M.R.S. §1461. For the purposes of this Plan, the term “Withdrawal Agreements” shall refer to the agreements entered into between Regional School Unit 50 (“RSU 50”) and the municipalities of Patten, Sherman, Stacyville and Mount Chase, which will be presented for approval by a referendum vote at the November 7, 2017 election. The term “New RSU” shall refer to a new regional school unit to be formed by the Member Municipalities in the event the Withdrawal Agreements and this Plan are approved at the November 7, 2017 election. Upon approval by the Member Municipalities, the “operational date” of the New RSU shall be July 1, 2018.

1. Units of school administration to be included:

The New RSU includes the following municipalities: the Towns of Patten, Sherman, Stacyville and Mount Chase.

The New RSU will provide comprehensive programming for all students from pre-kindergarten to grade 12 including one publicly supported secondary school.

2. Size, composition, and apportionment of the governing body:

A. The governing body (the “Board of Directors”) of the New RSU will be made up of eight (8) board members elected from the municipalities of the New RSU.

B. Composition:

C. Term: The term of office for Directors will be two (2) years after the completion of the initial term. In order to create staggered terms of office, the initial terms of office for the first Board of Directors for the New RSU will be as follows:

Member Municipality Board Members

Patten 2

Sherman 2

Stacyville 2

Mount Chase 2

Member Municipality Initial Terms of Office for First Board of Directors

Patten Elect one members for a two (2) year termElect one members for a one (1) year term

Sherman Elect one members for a two (2) year termElect one members for a one (1) year term

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D. Apportionment (Pursuant to 20-A M.R.S. §1472 — Weighted Voting):

The method to be used for voting by the New RSU Board of Directors shall be a weighted voting system (option 2, method D that is in compliance of the "one man - one vote principle") where by each member shall represent the total population of the municipality he or she represents. In the case where there is more than one director from a municipality, the weight of each director from that municipality will be the municipality’s total population divided by the number of directors from that municipality. As such, the votes shall be weighted as follows:

This apportionment is derived from the “Apportionment Plan for the New RSU” prepared by the Department of Education School Finance Operations Team, which is attached hereto as Exhibit 1.

3. The method of voting of the governing body.

A quorum requires 1,194 weighted votes.

Voting requires 1,194 weighted votes to pass a motion

4. The composition, powers and duties of any local school

There shall be no local school committees as part of this plan. This does not preclude the New RSU Board from authorizing local school committees at some future time, provided the local school committee members are elected in accordance with 20-A M.R.S. §§2301-2307.

Stacyville Elect one members for a two (2) year termElect one members for a one (1) year term

Mount Chase Elect one members for a two (2) year termElect one members for a one (1) year term

Member Municipality Initial Terms of Office for First Board of Directors

Member Municipality Population Board Members Votes Per Member

Patten 994 2 497

Sherman 805 2 403

Stacyville 389 2 195

Mount Chase 198 2 99

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5. The disposition of real and personal school property.

A. Real Property and Fixtures. Except as listed below, all real property interests, including without limitation land, buildings, other improvements to realty, easements, option rights, first refusal rights, and purchase rights, and all fixtures, transferred to the New RSU in accordance with the Withdrawal Agreements shall become the property of the New RSU. The New RSU shall effectuate and obtain such deeds, assignments, or other instruments of transfer as in its judgement are necessary to establish the RSU’s right, title and interest in such real property and fixtures.

B. Personal Property. All other tangible school personal property, including movable equipment, furnishings, textbooks and other curriculum materials, supplies, inventories and software transferred to the New RSU in accordance with the Withdrawal Agreement shall become property of the New RSU, and the New RSU shall effectuate and obtain bills of sale or transfer, assignments or other instruments of transfer as in its judgement are necessary to establish its right, title and interest in such personal property.

C. Agreements to Share or to Jointly Own Property. Not Applicable.

6. The disposition of existing school indebtedness and lease purchase obligations if the parties elect not to use the provisions of Section 1506 regarding the disposition of debt obligations:

A. Bonds, Notes and Lease Purchase Agreements That the RSU Will Assume. In accordance with Paragraph I of the Withdrawal Agreements entered between the Member Municipalities and Regional School Unit 50, as of July 1, 2018, the New RSU shall assume liability to pay the lease purchase agreements associated with property transferred to the New RSU in accordance with the Withdrawal Agreement. Though at the time of writing there are no such obligations, as of July 1, 2018, the total of said obligations is expected to be approximately $94,800.

B. Bonds, Notes and Lease Purchase Agreements that the Region Will Not Assume. Not Applicable

C. New Capital Project Debt that the Region Will Issue and Assume. Not Applicable

D. New Capital Project Debt that the Region Will Issue but Will Not Assume. Not Applicable

E. Defaulted Debt is Excluded from Being Assumed. Not Applicable

F. Other Debt Not Assumed. Notwithstanding. Not Applicable

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7. The assignment of school personnel contracts and related contracts and agreements.

A. School Personnel Contracts. A list of all written individual employment contracts that will be transferred to the New RSU is attached to each respective Withdrawal Agreement as Exhibit 1, and is attached to this Reorganization Plan as Exhibit 2. The list will not be made final until June 30, 2018. Individuals on the list who are employed on the day before the operational date shall become employed by the New RSU as of the operational date. Any unexpired contracts for personnel included on the list shall be assumed by the New RSU as of the operational date, and the New RSU may enter new contracts with personnel whose contracts have expired as of the operational date.

The duties and assignments of all employees transferred to the New RSU shall be determined by the Superintendent of the New RSU or his/her designee.

B. School Collective Bargaining Agreements. In accordance with Paragraph M of the Withdrawal Agreements, the following collective bargaining agreements to which RSU 50 is a party, or any successor agreements entered prior to the operational date, shall be assumed by the New RSU if they are still in effect as of the operational date.

All of the employer’s rights and responsibilities with respect to collective bargaining shall be fully assumed by the New RSU as of the operational date. The New RSU Board will develop a plan to make labor contracts covering similar positions comparable over no more than a 6-year timeframe.

C. Other School Contractual Obligations. Other contracts will be transferred to and become the obligation of the New RSU as of the operational date in accordance with the Withdrawal Agreement.

8. The disposition of existing school funds and existing financial obligations, including undesignated fund balances, trust funds, reserve funds and other funds appropriated for school purposes.

A. Existing Financial Obligations. RSU 50 will remain responsible for its own existing financial obligations. Except as provided for in the Withdrawal Agreements, such

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Employee Unit Term Applies To

RSU 50 Education Association

9/1/16 - 8/31/19 Teachers, Librarian, School Nurse, Math & Literacy Coaches

RSU 50 Support Staff 7/1/16 - 6/30/18 Administrative, Custodial, Transportation, Ed Tech, Food Service and Library Personnel


obligations will not be transferred to or assumed by the New RSU. Existing financial obligations shall include the following:

(i) All accounts payable;

(ii) To the extent not included as accounts payable, any financial obligations which under generally accepted accounting principles would be considered expenses of RSU 50 for any year prior to the year the New RSU becomes operational, whether or not such expenses were budgeted by the New RSU; and

(iii) All other liabilities (excluding debt obligations covered in Section 7) arising under generally accepted accounting principles that can be reasonably estimated and are probable.

B. Balances Received from RSU 50. Any funds transferred by RSU 50 to the New RSU in accordance with Sections O and P of the Withdrawal Agreements shall be paid to the treasurer of the New RSU, verified by audit and deposited into the New RSU accounts as deemed appropriate under generally accepted accounting standards.

(i) Reserve Funds. Transferred reserve funds shall be subject to Title 20-A M.R.S.A. § 1491. Unless otherwise provided by applicable law, a transferred reserve fund shall be used in accordance with its original purpose to benefit a school or schools of the New RSU.

(ii) Scholarship Funds. Scholarships shall be limited to the original pool of potential recipients unless otherwise provided by the donor or applicable law.

(iii) Trust Funds. The New RSU shall be deemed the successor trustee for all trust funds received, except as provided by the trust or applicable law.

9. A transition plan that addresses the development of budget for the first school year of the reorganized unit and interim personnel policies.

A. Transition Plan for Budget Development.

(i) The Member Municipalities shall act as soon as practicable to elect a Board of Directors. The cost of this election shall be paid by each Member Municipality out of the funds appropriated by the municipality for the withdrawal process; voter approval of this agreement shall constitute an appropriation of said funds for said purpose.

(ii) The New RSU Board of Directors shall establish interim rules of procedure, which may be the same rules of procedure adopted by RSU 50, and shall elect interim officers who shall serve until officers are elected at a meeting following the operational date of the New RSU.

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(iii) The New RSU Board of Directors shall select a superintendent of schools in accordance with Title 20-A M.R.S.A. Section 1051. During the interim period, the salary, office and other expenses of the superintendent, as well as the cost of the regional school unit board, including insurance, shall be allocated to the Member Municipalities as provided below.

(iv) Following the issuance of a certificate of organization by the State Board of Education, the New RSU Board of Directors shall begin the process for developing a proposed budget for educational programs and services for the fiscal year beginning July 1, 2018.

(v) In developing the proposed budget, the New RSU Board of Directors shall consider potential cost savings and additional costs that may result from reorganization. The New RSU Board of Directors may also consider changes to operations that may be necessary in order to reduce costs without adversely affecting the educational programs.

(vi) During the months of February and March, the New RSU Board of Directors shall conduct meetings and budget workshops as necessary to develop a proposed budget for the first operational year of the New RSU. Specific duties may be assigned to existing personnel with the approval of the RSU 50 superintendent.

(vii) A proposed budget with supporting documentation shall be developed in time for its presentation to and consideration by the New RSU Board of Directors. The New RSU Board of Directors shall complete the budget development process and recommend a budget for consideration by the voters.

(viii)The New RSU Board of Directors shall propose and approve a recommended budget in accordance with 20-A M.R.S.A. §1482 for the first operational year for submission to the voters of the region. The budget format, approval procedures and assessments for the New RSU’s first operational year budget shall be in accordance with 20-A M.R.S.A. §1482-1489. The New RSU Board of Directors shall have all necessary authority for those purposes. This shall be considered the first year of use of the budget validation referendum process for purposes of determining the continued use of the budget validation referendum process every three years pursuant to Section 1486(1).

(ix) The New RSU Board of Directors shall be authorized to take all other actions and shall have all other authority provided under state law to prepare for the regional school unit to become operational on July 1, 2018, including the authority to open and maintain accounts, to incur expenses not to exceed $40,000 to be allocated among the regional school unit’s Member Municipalities in accordance with their Property Fiscal Capacity as defined in 20-A M.R.S.A. §15672(23)(C). The New RSU board shall further be authorized to file applications for school construction

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projects and revolving renovation fund loans, issue tax anticipation notes, and obtain other available financing.

B. Transition Plan for Personnel and Other Policies. All personnel policies existing in RSU 50 shall continue to apply to employment positions maintained by the New RSU prior to the operational date. Prior to the operational date, the New RSU Board of Directors and the superintendent shall develop and adopt region-wide policies in accordance with applicable law.

10. Documentation of the public meeting or public meetings held to prepare or review the reorganization plan.

The Reorganization Planning Committee held a public meeting on May 25, 2017. Public hearings will be held in each Member Municipality in conjunction with planned public hearings on the Withdrawal Agreements.

11. An explanation of how units that approve the reorganization plan will proceed if one or more of the proposed members of the regional school unit fail to approve the plan.

In accordance with Sections B and S of the respective Withdrawal Agreements, the Member Municipalities will not withdraw, and will not form the New RSU unless the voters of all Member Municipalities vote to approve withdrawal from RSU 50 and the formation of the New RSU.

12. An estimate of the cost savings to be achieved by the formation of a regional school unit and how these savings will be achieved.

The Reorganization Planning Committee representing the Member Municipalities strived to derive accurate but conservative financial projections and identify potential cost savings and incremental revenue opportunities as well as document incremental potential costs for the New RSU. Based upon the RSU 50 budget for 2017-18, it appears as though the New RSU could have operated in 2017-18 on a budget of approximately $4,730,000. A five-year financial projection has thus been derived and presented in Exhibit 3.

The financial projections include annual cost savings totaling $134,000. These cost savings are achieved through:

a. Combining the positions of Superintendent and Principal b. Reduced school committee expenses c. Reduced expenditures for School Administration travel, supplies, curriculum coordination

and other miscellaneous costs d. Savings (or cost offset) for transportation of students from Moro, Hersey and Crystal

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e. Reduction or adjustment in special education costs to compensate for costs of programs for tuition students which would be borne by the tuitioning town or district

f. Shared teachers and administrative staff as set out in Sections R of the Withdrawal Agreements

The financial projections also include incremental annual investments and expenses totaling $100,000 for Incremental Reinvestment in Curriculum & Materials and Facilities.

These financial projections exclude the transitional costs the New RSU will incur prior to the funds transferred by RSU 50 to the New RSU in accordance with Sections O and P of the Withdrawal Agreements on July 1, 2018. The pre-formation costs include:

a. Legal expenses associated with deed and property transfers, policies, referenda and elections, collective bargaining and personnel issues,

b. Accounting expenses associated with the reorganization, c. Software licenses, d. Recruiting expenses to recruit and hire new employees, and e. Various school board expenses.

The total pre-formation costs have been estimated between $40,000 and $50,000 and the Reorganization Planning Committee recommends the Board of Directions raise up to $80,000 by a short-term revolving line of credit through an appropriate financial institution to be repaid after the New RSU receives the balances due from RSU 50.

The Reorganization Planning Committee further recommends that the Board of Directors of the New RSU pursue agreements(s) with neighboring RSUs and organizations to identify additional potential cost savings or incremental revenues, such as:

• Shared central office services • Additional shared teacher opportunities • Grants from the National Park Service • Investments and/or grants for outdoor education programs • Identification of potential incremental tuition students

13-A. Plans to reorganize administration, transportation, building and maintenance and special education.

The New RSU will organize administration, transportation, building and maintenance and special education in a way that is substantially similar to the methods currently in place in RSU 50. The New RSU will acquire from RSU 50 the staff necessary to meet its needs in each of these categories, but will need to hire or share new staff of these departments where the related staff is not being transferred from or shared with RSU 50. The Reorganization

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Planning Committee intends and recommends that the New RSU Board of Directors reduce the system administration costs and staff from that in use within RSU 50 and pursue shared services as discussed in Section 12.

13-B. Cost Sharing in Regional School Units.

The RSU may raise money, in addition to the required local contribution pursuant to 20-A M.R.S.A.§ 15690(1) for educational purposes. The additional local costs of operating the RSU shall be shared among all the municipalities within the RSU on the basis of the following agreed upon fixed percentages:

This local cost-sharing percentage applies only to the amount, if any, of additional local funds and non-state funded debt service raised by the RSU. It does not apply to the required local contributions raised by each municipality pursuant to 20-A M.R.S.A. § 15688.

Should any additional municipality elect to join the RSU, the new municipality’s share of the additional local costs shall be based on its percentage of the new municipality’s valuation as compared to the total valuation of all communities in the RSU. The existing Member Municipalities share of local additional shall be adjusted proportionally as per the Second Year (2019/20) and Subsequent Years Share of Local Additional above.

The method of sharing the local (non-EPS) costs of the New RSU shall be reviewed at least every five budget years by the Board of Directors and changes approved by a district referendum. Amendments to the cost sharing formula may also be achieved via a written petition following the procedures of 20-A M.R.S.A., §1301(3).

13-C. Election of initial Board of Directors.

Within 30 days of the issuance of a certificate of organization for the New RSU by the State Board of Education, the Reorganization Planning Committee shall meet for the purpose of electing an interim secretary of the New RSU and determining a date for the election of the initial Board of Directors of the unit. The interim secretary shall notify the municipal officers of the Member Municipalities of the regional school unit of the date of the election.

TownInitial Year (2018/19) Share

of Local Additional

Second Year (2019/20) and Subsequent Years Share of

Local Additional

Patten 31.5% 35.0%

Sherman 31.0% 30.0%

Stacyville 14.5% 15.0%

Mount Chase 23.0% 20.0%

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The election shall be conducted in accordance with Title 30-A Chapter 121 of the Maine Revised Statutes, as amended by Section 1473(2) of Chapter 103-A of Title 20-A of the Maine Revised Statutes, except that the election duties of the secretary and Board of Directors of the regional school unit shall be performed by the interim secretary. The duties of the interim secretary shall include:

1. Notification of the municipal officers of the date of the election; 2. Furnishing nomination papers at least 10 days before the deadline for filing

nomination papers; 3. Receipt of completed nomination papers in accordance with 20-A M.R.S.A. § 1473; 4. Preparation and distribution of election ballots in accordance with 20-A M.R.S.A. §

1473; 5. Receipt of town clerk’s certification of the results of the voting in each municipality; 6. Tabulation of the town clerk’s certification of the results of the voting in each

municipality; 7. Accepting any recount petitions that may be filed pursuant to 20-A M.R.S.A. § 1473;

and 8. Totaling the votes cast for each candidate and notifying the clerks in each

municipality, the candidates, and the Commissioner of Education of the final results of the voting and the names and addresses of the persons elected as directors.

In accordance with 20-A M.R.S.A. § 1473(1), the clerk of each Member Municipality shall forward the name(s) and address(es) of the director(s) elected to represent the municipality to the State Board of Education with such other data with regard to their election as the State Board of Education may require. On receipt of the names and addresses of all the directors, the State Board of Education shall set a time, place, and date for the first meeting of the directors and give notice to the directors in writing, send by registered or certified mail, return receipt requested, to the address provided by the municipalities.

13-D. Tuition Contracts and School Choice.

The Superintendent of the New RSU may enter superintendent’s agreements for the sending and receipt of students. The New RSU board may approve tuition contracts with other school administrative units.

13-E. Claims and Insurance.

None.

13-F. Vote to submit reorganization plan to Commissioner.

The Reorganization Planning Committee approved this plan by an affirmative vote of 14 out of 15 at the meeting held on June 22, 2017. The votes by town were as follows:

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The referendum vote to approve the Reorganization Plan will occur in the four Member Municipalities on November 7, 2017.

13-G. Section for RSUs with fewer than 2,500 students

As approved by Letter of Intent, the proposed RSU will serve fewer than 2,500 students and qualifies for an exemption to that requirement for the following reasons:

a. Geography, including physical proximity and the size of the current school administrative units: The size of the proposed New RSU, including the Unorganized territories it would serve is already the largest RSU in the state.

b. Demographics - including student enrollment trends and the composition and nature of communities in the regional school unit; The population of the towns in the proposed RSU range in size from about two hundred to one thousand. The total attending student population was 347 as of April 1, 2017.

c. Economics - including existing collaborations to be preserved or enhanced and opportunities to deliver commodities and services to be maximized; The New RSU intends to share resources for special education, technology, food service, facilities maintenance and library services with RSU 50 through an Inter-local Agreement.

d. Transportation; The New RSU intends to share resources and a bus garage for maintenance with RSU 50 through an Inter-local Agreement.

e. Population density; The communities served by the New RSU are rural communities with a population density far less than 100 per square mile.

f. Other unique circumstances including the need to preserve existing or developing relationships, meet the needs of students, maximize educational opportunities for students and ensure equitable access to rigorous programs for all students.

Town Yes No Absent/Abstain

Patten 3 0 0

Sherman 4 1 1

Stacyville 3 0 1

Mount Chase 4 0 1

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The Reorganization Planning Committee believes there are several problems related to school consolidation — particularly in low population density rural communities such as ours — that demand the formation of the New RSU:

1. Overlooked in the debate over school size and consolidation are the many ways in which schools nourish their local communities. Schools contribute significantly to the vitality of local economies and are essential to a community’s long-term development potential. Schools foster community cohesion and may increase civic participation. These considerations are especially relevant to small towns weighing the costs and benefits of consolidation.

2. One aspect of school consolidation rarely discussed, and even more rarely studied, is the impact school consolidation has on civic participation. As schools have consolidated and grown larger, decision-making authority has been transferred from local communities into the hands of state officials and school administrators. Local citizens have increasingly less say over such matters as curriculum, educational standards, budgets, and teacher qualifications, and are less involved in the day-to-day school operations.

3. Local schools anchor and unify communities by bringing residents of all ages and backgrounds together for a variety of activities and services. Schools often double as community and cultural centers.

4. While good schools enhance property values, bad schools and the lack of a neighborhood school cause property values to decline. Without a local school, both small towns and urban neighborhoods will be unable to attract young families. Conversely, good schools can drive economic development. A community’s overall quality of life and the quality of its public services are increasingly important factors in attracting skilled workers and new investment.

5. High quality small schools are one of a community’s most important economic assets.

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EXHIBIT 1

Apportionment Plan

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EXHIBIT 2

Personnel with Individual Employment Contracts

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EXHIBIT 3

Financial Projections

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2018-19 2019-20 2020-21 2021-22 2022-23Income State Allocation $ 2,513,000 $ 2,584,000 $ 2,589,000 $ 2,595,000 $ 2,601,000

Local Required Match 1,093,000 1,124,000 1,139,000 1,155,000 1,170,000

Local Additional 634,000 645,000 744,000 688,000 752,000

Tuition 317,000 335,000 276,000 353,000 312,000

Other Income 52,000 53,000 54,000 55,000 56,000

Carry Forward 284,000 284,000 284,000 284,000 284,000

Total Income $ 4,893,000 $ 5,025,000 $ 5,086,000 $ 5,130,000 $ 5,175,000

Expenses Regular Instruction $ 1,769,000 $ 1,867,000 $ 1,876,000 $ 1,885,000 $ 1,894,000

Special Education 846,000 840,000 834,000 838,000 842,000

Career & Technical 196,000 201,000 206,000 211,000 216,000

Other Instruction 149,000 150,000 151,000 152,000 153,000

Student & Staff Support 361,000 366,000 371,000 377,000 383,000

System Administration 170,000 171,000 172,000 173,000 174,000

School Administration 311,000 323,000 325,000 327,000 329,000

Transportation 370,000 376,000 410,000 416,000 422,000

Facilities Maintenance 674,000 684,000 694,000 704,000 715,000

Other Expenses 17,000 17,000 17,000 17,000 17,000

Adult Education 30,000 30,000 30,000 30,000 30,000

Total Expense $ 4,893,000 $ 5,025,000 $ 5,086,000 $ 5,130,000 $ 5,175,000

Documents

Plan to Reorganize the Municipalities of Patten, Sherman ...pattenmaine.org/wp-content/uploads/2017/11/RSU-89... · Stuart Kelley Nicole Mitchell John Qualey Philip Knowles For Mount