Withdrawal Agreement - SAD #6 (3/27/01)

WITHDRAWAL AGREEMENT

THE TOWN OF FRYE ISLAND, MAINE

FROM

MAINE SCHOOL ADMINISTRATIVE DISTRICT NO. 6

WHEREAS, residents of the Town of Frye Island have petitioned to have the Town of Frye Island, Maine withdraw from MSAD #6 and a Withdrawal Agreement shall be developed in accordance with 20-A M.R.S.A. Section 1405

WHEREAS, the Frye Island Withdrawal Committee is responsible for preparing this Withdrawal Agreement pursuant to 20-A M.R.S.A. Section 1405 (2) (A).

NOW THEREFORE, for good and valuable consideration, the Frye Island Withdrawal Committee agrees as follows:

1. EDUCATIONAL SERVICES. The Town of Frye Island shall have a school board and shall contract for a part-time superintendent to administer the educational services for the residents of Frye Island. No grades will be offered in the Town of Frye Island as there are no schools within the Town. No students are anticipated for the first year of operation and no teachers are needed.

2. TUITION AND OTHER EDUCATIONAL PAYMENTS. During the first year of operation, any child attending K-12 grades whose parent is a resident of the Town of Frye Island shall be entitled to attend another public school system or entity in Maine to which the Town of Frye Island is contributing funds provided that the said grades are offered and there is space and availability for the child to attend. If the grade is not offered or if there is no space and availability for the child to attend, the Town of Frye Island shall pay the established Maine Department of Education tuition rate for the child to attend a school. The School Board of the Town of Frye Island in cooperation with the parents of the student being tuitioned shall determine which school each student will attend based on availability of appropriate programming and space.

During the first year following the withdrawal, students may attend the school they would have attended if the Town of Frye Island had not withdrawn. Frye Island shall pay tuition to MSAD No. 6 for the first year following the withdrawal for any students from Frye Island already attending a school within MSAD No. 6.

The Town of Frye Island shall pay the sum of at least TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000) (which is equivalent to 53 elementary students at the Town of Raymond 2000-2001 tuition rate) annually in twelve (12) monthly equal installments of TWENTY THOUSAND EIGHT HUNDRED THIRTY THREE DOLLARS AND THIRTY-THREE CENTS ($20,833.33) each to another public school system or entity in Maine with which the Town of Frye Island has a written agreement, commencing July 1, 2002 when the Town of Frye Island withdraws from MSAD No. 6 and each year thereafter. This payment shall be designated as the “base educational payment”.

The base educational payment by the Town of Frye Island shall be increased annually in accordance with the then current Federal Consumer Price Index or an index based on an annual increase in the Maine Department of Education Tuition Rates or any other index agreed upon by the Town of Frye Island and by the other public school system or entity. This increase shall be designated as the “index increase”.

The Town of Frye Island shall also pay to the other public school system or entity an annual increase to the base educational payment which shall be designated as the “debt service increase” and shall be equal to the annual decrease in the debt being paid by the Town of Frye Island to MSAD No. 6.

In accordance with this Schedule, the Town of Frye Island will be increasing its annual expenditure for public education from 2002 until 2013 to at least THREE HUNDRED AND FORTY THOUSAND DOLLARS ($340,000) annually which is the equivalent to 72 elementary students at the Town of Raymond 2000-2001 tuition rate established by the Maine Department of Education. After 2013, the annual expenditure for public education will continue to increase based on the above index increase.

3. TUITION RATES. When the Town of Frye Island tuitions students, the Town of Frye Island shall pay the mandatory tuition rates for students as established by the Maine Department of Education.

4. DATE OF WITHDRAWAL. The Town of Frye Island shall withdraw from School Administrative District No. 6 on June 30, 2002.

5. SCHOOL CONSTRUCTION. The withdrawal of the Town of Frye Island from School Administrative District No. 6 shall not create a need for school construction within five years of the date of withdrawal. There are no plans to construct a school in the Town of Frye Island.

6. TRANSPORTATION SERVICES. The Town of Frye Island shall only provide transportation to and from Frye Island by means of its ferry system and only while the ferry is operating. The parent of the student shall be solely responsible to make arrangements to transport the student from the mainland ferry landing to the school which the student is attending, unless the law requires otherwise or the other school system or entity with which Frye Island has an agreement provides transportation from the mainland ferry.

7.FINANCIAL COMMITMENTS. Upon withdrawal, the Town of Frye Island shall continue to pay its share in accordance with its local share percentage to be calculated as of June 30, 2002 to MSAD No.6 of the following long term debt:

A. Outstanding Bonds Payable:

Bonds totaling $4,790,000 were issued in November, 1986 to finance the Frank Jewett Hollis Elementary and H..B. Emery School additions. Annual principal payments are $240,000. The interest rate varies from 6.7% to 7.2%. The bonds are due November 1, 2006. The bonds are administered by the Maine Municipal Bond Bank.

Bonds totaling $3,595,000 were issued in November, 1988 to finance the Bonny Eagle High School addition. Annual principal payments are $180,000. The interest rate varies from 6.6% to 7.7%. The bonds are due November 1, 2008. The bonds are administered by the Maine Municipal Bond Bank.

Bonds totaling $8,745,000 were issued in May, 1993 to finance the Bonny Eagle Middle School addition. Annual principal payments are $437,250. The interest rate varies from 5.3% to 6.0%. The bonds are due November 1, 2013. The bonds are administered by the Maine Municipal Bond Bank.

Bonds totaling $63,706 were issued in February, 2000 to finance the payment of the non-forgivable portion of a $201,345 loan from the State Revolving Renovation Fund. Annual principal payments are $12,741. The interest rate is 0%. The bonds are due July 15, 2004. The bonds are administered by the Maine Municipal Bond Bank.

Bonds totaling $140,608 were issued in May, 2000 to finance the payment of the non-forgivable portion of a $444,400 loan from the State Revolving Renovation Fund. Annual principal payments are $28,122. The interest rate is 0%. The bonds are due October 1, 2004. The bonds are administered by the Maine Municipal Bond Bank.

Bonds totaling $175,792 were issued in June, 2000 to finance the payment of the non-forgivable portion of a $555,600 loan from the State Revolving Renovation Fund. Annual principal payments are $17,579. The interest rate is 0%. The bonds are due October 1, 2009. The bonds are administered by the Maine Municipal Bond Bank.

The following projections are based on the local share percentage of 4.13% of Frye Island to MSAD No. 6 as of June 30, 2000:

Principal Interest Total Frye Island Portion

2003 $986,154 $456,687 $1,442,841 $59,589.33

2004 $915,692 $420,061 $1,335,753 $55,166.60

2005 $915,692 $363,664 $1,279,356 $52,837.40

Thereafter $5,009,770 $1,264,725 $6,274,495 $259,136.64

TOTAL $426,729.97

Bonds totaling $2,300,000 are expected to be issued by July, 2001 to finance the renovations of school playgrounds and certain fields in SAD No. 6. Annual principal payments are anticipated to be $230,000. The interest rate is estimated to be 4.5%. The bonds are due July, 2011. The bonds are administered by the Maine Municipal Bond Bank

Principal Interest Total Frye Island Portion

2003 $198,597 $87,444 $286,041 $11,813.49

2004 $207,721 $78,320 $286,041 $11,813.49

2005 $217,263 $68,778 $286,041 $11,813.49

2006 $227,244 $58,797 $286,041 $11,813.49

2007 $237,684 $48,357 $286,041 $11,813.49

2008 $248,603 $37,438 $286,041 $11,813.49

2009 $260,024 $26,017 $286,041 $11,813.49

2010 $271,970 $14,071 $286,041 $11,813.49

2011 $164,383 $2,474 $166,857 $ 6,891.19

TOTAL $113,212.60

TOTAL FRYE ISLAND PORTION FOR ALL BONDED INDEBTEDNESS: $539,942.57

B. Outstanding Capital Leases Payable

Lease payable to bank for purchase of copiers used in MSAD No. 6. Lease incurred in February, 1998. Amount financed was $328,699 for 60 months. The interest rate is 5.5% fixed for the term of the lease. Annual payments are $73,392.

Lease payable to supplier for purchase of an energy services retrofit at MSAD No. 6. Lease incurred in September, 1999.Amount financed was $2,614,749 for 120 months. The interest rate is 5.29% fixed for the term of the lease. Annual payments vary from $287,494 to $391,625.

Lease payable to supplier for purchase of buses used at MSAD No. 6. Lease incurred in June, 2000.Amount financed was $149,640 for 3 years. The interest rate is 6.7%. Annual payments are $53,205.

Year ending Capital Lease maturities and interest Frye Island portion

June 30

2003 $456,502 $18,853.53
2004 $341,453 $14,102.00

2005 $353,404 $14,595.58

Thereafter $1,135,973 $46,915.68

TOTAL $94,466.79

TOTAL FRYE ISLAND PORTION FOR ALL BONDED AND CAPITAL LEASE INDEBTEDNESS: $634,409.36

9. FINANCIAL COMMITMENTS TO SUPERINTENDENT. There are no outstanding financial commitments to the Superintendent of MSAD No. 6.

10. COLLECTIVE BARGAINING AGREEMENTS. All collective bargaining agreements in MSAD No. 6 shall continue in full force and effect.

11. CONTRACT RIGHTS. All contract rights of MSAD No. 6 shall be continued in full force and effect.

12. REAL AND PERSONAL PROPERTY. All buildings, land, buses, other vehicles, equipment supplies and fuel and any other real or personal property of any kind or nature whatsoever shall be the sole property of MSAD No. 6 and the Town of Frye Island shall release and relinquish forever any claim, right, credit or entitlement to the same.

13. OTHER MONETARY ASSETS. Upon the withdrawal of the Town of Frye Island from MSAD No. 6, any year-end balances, trusts, accounts receivable, prepaid expenses, investments, uncollected insurance proceeds shall be the sole property of MSAD No. 6 and the Town of Frye Island shall release and relinquish forever any claim, right, or credit to the same.

14. ADMINISTRATION AND GOVERNANCE. Upon the withdrawal of the Town of Frye Island from MSAD No. 6, the administration of MSAD No. 6 shall remain in full force and effect and the Board shall continue to govern MSAD No. 6. and the Town of Frye Island shall not be represented by a Director to the Board.

15. DELIVERY OF VOCATIONAL AND SPECIAL EDUCATION SERVICES. Upon the withdrawal of the Town of Frye Island from MSAD No. 6, the Town of Frye Island shall tuition

any student needing vocational services or special education services to another public school system or entity in Maine with which the Town of Frye Island has a tuition agreement. The Town of Frye Island anticipates that MSAD No. 6 would agree to accept students needing vocational services or special education services from the Town of Frye Island pursuant to a tuition agreement.

16. ADULT EDUCATION. Upon the withdrawal of the Town of Frye Island from MSAD No. 6, and upon voter approval, the school board of Frye Island may establish an adult education program in accordance with State law and Department rules for the adult residents of the Town of Frye Island.

17. NON-PUBLIC SCHOOL STUDENT SERVICES. The School Board of the Town of Frye Island may enter into Tuition Agreements for non-public school students from Frye Island.

18. SCHOOL LUNCH PROGRAM. The Town of Frye Island does not anticipate offering a school lunch program as there are no schools in the Town of Frye Island.

19. SHARED SERVICES AGREEMENTS. Upon the withdrawal of Town of Frye Island from MSAD No. 6, the Town of Frye Island may enter into shared services agreement, if necessary, with MSAD 6 or any other public school system or entity in Maine.

20. INSURANCE COVERAGE. All insurance coverage for MSAD No. 6 and the Town of Frye Island shall remain full force and effect.

21. GIFTS, ENDOWMENTS, SCHOLARSHIPS AND RETIREMENT PROGRAMS

No endowments, scholarships or retirement programs are planned presently by the Town of Frye Island. However, the residents and property owners of Frye Island strongly support and are committed to public education in Maine and the educational payments to be paid by the Town of Frye Island to another public school system or entity as noted in Section 2 are a testament to the dedication of the Town of Frye Island and all of its residents and property owners to the public funding of education.

22. DEED RESTRICTIONS. The Town of Frye Island has no deed restrictions relating to the delivery of educational services.