KENNEBUNK — Arundel students will no longer be required to attend Thornton Academy Middle School after the 2010-11 school year, the Regional School Unit 21 board of directors decided  Monday night.

The contract between the Town of Arundel and the Thornton Academy Middle School will be terminated as of June 30, 2011, which will then allow Arundel students to have the choice of either TAMS or Middle School of the Kennebunks. The cost to pull out of the contract, which does not expire until 2016, is nearly $1.2 million.

Superintendent Andrew Dolloff said the district will have to work out funding for the buyout as part of its next budget.

The arrangement between Arundel and Thornton Academy predates the formation of RSU 21, and has been a source of friction between Arundel parents and the school board. The Thornton Academy Middle School was created in 2006 at a cost of about $2.9 million. The school enrolled 163 students in grades six through eight this past year, with 145 of those from Arundel.

“The survey we conducted indicated that there are a number of parents, and presumably children, who want the choice of middle school,” said board member Jack Reetz, who represents Arundel. “This is a means to provide that school choice to all Arundel parents.”

RSU 21 learned in February that, as part of the state’s school consolidation law, Arundel students must retain the option to attend TAMS even after the contract has ended. Students in Kennebunk and Kennebunkport, which are also part of RSU 21, will not have school choice.

In addition to terminating the contract, the board voted to allow up to 15 Arundel students per grade level to enroll at MSK for the upcoming school year, while the contract is still in effect.

Thornton Academy Headmaster Carl Stasio said Tuesday morning that allowing Arundel students to attend MSK is a “clear breach of contract” and said the school intends to go to arbitration with RSU 21 to resolve the matter before the school year begins.

“A contract is a contract and everybody went into this with open eyes,” said Stasio. “It seems to me that (the board) making a case for 15 kids to be allowed to exit TAMS and go to MSK is indicative of their awareness that the contract says ”˜all’ (Arundel students) and means ”˜all.’ They’re trying to circumvent that.”

Stasio said the process has been “frustrating” and said the district’s reorganization contract that was submitted to the state delineated school choice only for Arundel high school students. Stasio has said the middle school will remain open regardless of the board’s decision on the contract.

“If it goes to arbitration, then so be it,” said Reetz. “It’ll still get resolved.”

“We look forward to spirited negotiation between Superintendent (Andrew) Dolloff and (Stasio),” said board member John Sharood.

Termination of the contract does not require a public vote because TAMS is not located within the district, noted Dolloff. The board’s decision was made following an executive session during which the board met with legal counsel.

The vote was taken in an effort to “unify the district” and is “a sound financial decision,” said board member Norm Archer.

The buyout is estimated to save about $4 million if all Arundel students attend MSK, but the district could end up owing money in the short term if most students continue to attend TAMS, combined with the buyout cost.

The cost of terminating the contract decreases by about $240,000 each year and the buyout must be paid in a lump sum. Board member John Sharood said earlier this year he believes the district can borrow the money to pay Thornton Academy and then spread out the payments.

According to Dolloff, MSK has space for Arundel students, though additional staff would be needed at the grade six level. The population at the school would increase from about 527 to 675. Terminating the contract is also expected to encourage more Arundel students to attend MSK and follow through to Kennebunk High School.

— City Editor Kristen Schulze Muszynski can be contacted at 282-1535, Ext. 322 or kristenm@journaltribune.com.