Sean C. Morgan
Of The New Era
The District 55 School Board approved a resolution amendment Monday night extending the deadline for People Involved in Education to provide proof that it has secured a facility for its proposed charter school and to complete contract negotiations for operating the charter school.
Since the February board meeting, “there’s been a tremendous amount of time spent between the staffs (of District 55 and PIE) to figure out how to come up with something acceptable to the board and PIE,” Supt. Larry Horton said during the board’s regular meeting Monday night.
PIE wants to open a kindergarten through fourth-grade charter school in Sweet Home in September, adding more grades in subsequent years.
March 9, Horton met with Jay Jackson and Mary Northern of PIE, Horton said, and they talked about concerns the district board and PIE board had regarding the negotiation of the contract for the charter school, answering the question of “what are the main issues that have become stumbling blocks?”
The district presented a contract proposal to PIE on Jan. 3. PIE responded with a counterproposal on Feb. 13. The district proposal set deadlines of March 15 for securing a facility for the charter school and completion of the contract. It also set a Feb. 15 deadline for forming a separate corporation to run the charter school. PIE objected to the deadlines and forming a separate corporation.
Horton listed four issues between the two groups.
First was a waiting list the district wanted from PIE showing what students from Sweet Home were waiting to get into PIE’s Sand Ridge Charter School in Lebanon School District. That way, if the Sweet Home charter school results in a mass exodus from one of District 55’s schools, Horton can plan for it, he said. If 50 students leave schools across the district, the effect would be minimal; but if 50 students left from one school, it would force the district to reduce or shift staff.
PIE has not offered a list of students, with concerns about confidentiality, but the district would like to know the demographics of those students, at least. Jay Jackson, Sand Ridge administrator and president of the PIE board, said he could provide that information although he said it changes daily and would be out of date almost immediately.
The second issue was commingling of funds between the two schools in two different districts with one organization overseeing those schools, Horton said. Jackson told him the law prohibits commingling of funds, and PIE would have no problem echoing the law against it in the contract.
“That most likely can be done in the wording, so it will not be an issue,” Horton said.
Third, the district is concerned about liability issues that might arise in other PIE schools, Horton said. For example, if a lawsuit is filed over something that happens in Sand Ridge, “we want to insulate the Sweet Home site, so we would not be dragging the Sweet Home District into a lawsuit that should be in the Lebanon School District.
“Jay felt wording could be done in such a way in the contract that would address that, so our concerns would be met.”
Horton talked to the district’s attorney and the Oregon Department of Education, he said. Both agreed with Jackson, that language could be used to protect District 55.
The fourth issue was a facility, Horton said. District 55 has concerns about finding a facility in time for the district to plan and budget for next school year.
Jackson told Horton that PIE is close to securing a site, Horton said. Jackson did not reveal the site yet to avoid endangering negotiations.
Jackson suggested that a district representative look at the property at some point.
Jackson told the board that he thought it could be finalized by May 15, “particularly if the folks involved see some forward motion on the contract because that’s, frankly, been one of our stumbling blocks.
“I think that covers the primary concerns from my perspective at this point. The formation of a whole new corporation complicates all other issues.”
The concerns come down to provision of protection for the district against liability and a sufficient audit trail, Jackson said. “Your concerns are mutual concerns.”
PIE would like to maintain a separation in liability too, allowing PIE, for example, to get pulled into a lawsuit against the district, Jackson said, but still, anybody can sue anybody for anything at any time.
Forming a new corporation “would weaken the financial situation and stability of the organization that they’re dealing with,” Jackson said. PIE has assets and an established financial track record. It can borrow money successfully. A new corporation would not have the financial track record or assets.
“I don’t believe there’s anyone sitting here opposed to a charter school in this district,” Horton said. “I want to make sure all the students in this district are being taken care of.”
The district board had at least two options, Horton said. First, the board could say PIE did not meet deadlines, thank PIE and have PIE apply again in the future; or the district could exctend the deadline for a facility and conclusion of contract negotiations to May 15.
The district used a March 15 deadline based on its budgeting cycle and planning for next school year, Horton said, but the district could alter its budget if necessary based on a May 15 deadline.
Board member Mike Reynolds asked Jackson if a May 15 deadline were acceptable. Jackson said he was comfortable with a May 15 deadline.
“We want to make sure the date doesn’t get pushed back and pushed back and pushed back,” Board member Ken Roberts said. “At some point, we want to be ready to go, otherwise we’re spinning our wheels.”
Horton told the board that extending the deadline was a reasonable option with the collaboration between him and Jackson the last week. It gives the attorneys involved two months to finalize the contract.
If PIE can’t meet that deadline, “we need to thank them for the energy and time they put into this and start the process over again,” Horton said.
The board unanimously approved a deadline extension to May 15 with PIE providing proof that a facility has been secured, including a lease agreement.
Present were board members Roberts, Don Hopkins, Leena Neuschwander, Reynolds, Chairman Scott Proctor, Diane Gerson, Jason Redick, Jeff Lynn and Dave VanDerlip.