Sean C. Morgan
Of The New Era
The District 55 School Board split evenly Monday night on whether to drop its requirement that People Involved in Education form a separate corporation to operate Sweet Home Charter School.
During its regular meeting the board followed up with a decision to extend the deadline for completing its contract with PIE to its meeting, July 10, a nine-day extension.
Jason Redick moved to drop the requirement, the only remaining sticking point over the charter school contract. Ken Roberts seconded the motion. They were joined by Leena Neuschwander and Mike Reynolds in voting to drop the requirement. Chairman Scott Proctor, Diane Gerson, Jeff Lynn and Dave VanDerlip voted no. Don Hopkins left the meeting early and was unable to break the tie.
The tie vote means the requirement remains in place. The board agreed unanimously to extend the contract deadline when PIE supporter Brandy James of Sweet Home requested it.
The board voted last month 8-1, with Redick voting against, to require PIE to form a separate nonprofit corporation before it would agree to sign a contract with PIE creating the proposed charter school.
The charter school is proposed to open in September at the Church of Christ at 18th and Long.
The district has operated on the advice of Oregon School Boards Association attorney Peter Dassow in requiring the formation of the separate corporation. He told the board and public that forming a separate corporation would limit potential liability to the district and the Sweet Home Charter School.
Jackson told the board that Dassow’s latest contract proposal shows that he is backing off of the requirement, with a note that said, “If the district agrees to one corporation, it proposes the following language.”
Dassow’s alternate language said that if a judgement against PIE over actions outside of the Sweet Home school exceeds available liability insurance and other assets and the recipient of the judgment takes action to secure any funds from the Sweet Home school’s bank account or other Sweet Home school assets, then PIE is required to notify the School District 55 superintendent immediately. The district may then withold payments of district funds or state funds slated to be paid to PIE, and the district may terminate the contract.
Jackson told the board that PIE was comfortable with that language, and if the board accepted it instead of the separate corporation requirement, PIE would sign the contract.
PIE has argued that its liability insurance would cover all but the rarest potential judgments. Jackson explained Monday night that forming a separate corporation would really bring more liability to the district. Under PIE’s proposal, PIE has $4 million per incident in coverage compared to $1 million per incident in coverage if the school were to operate under a separate corporation.
VanDerlip asked about the added cost a separate corporation might have with additional insurance. If it were too high, he said, he would understand PIE’s objection. He didn’t think forming and maintaining a nonprofit corporation was cost-probitive or difficult, VanDerlip said. “I’ve done it myself.”
Roberts said this issue had taken up too much time already.
“I’m not really in favor of charter schools, but I’m leaning in favor of ‘let’s get on with it,'” Roberts said.
Reynolds raised concerns about whether local representatives would be on the PIE board, and others argued they wanted to make sure the school had some local control.
“If we don’t think the system works, we won’t put our kids in the school,” no matter who runs it, said Brandy James, a parent who attended the meeting.
“We find ourselves outside the legal process,” Redick said. “What we’re doing right now is we’re creating more liability.”
The district is trying to make a contract with a non-existent entity, he said. “We’re becoming a pawn” in “statewide politics from an outside organization.”