GRAY – The SAD 15 School Board and a central office employee reached a mediated resolution of a complaint against the district.

Debbie Reynolds, a central office employee, claimed that her supervisor, the former director of finance, Brian McDonnell, discriminated against and sexually harassed her, and that the former superintendent, Michael Wood, failed to take adequate action to correct the problem.

Wood resigned, leaving the district last July to take a similar position in Massachusetts. McDonnell was fired by the board in late fall after a weeklong, closed-door hearing initiated by interim Superintendent Victoria Burns with testimony from school department employees.

Though the board denied liability for the conduct of the former director of finance, it recognized that Reynolds was not treated well and that new management was needed in the central office. Moreover, the board said in a joint statement issued this week that it was concerned that the former administration failed to purchase insurance to cover discrimination claims. It said that the district could have been exposed to substantial financial liability if that complaint had gone to trial.

Spokesmen for the district are Chairman of the Board Dan Maguire and Burns.

Under the settlement, Reynolds will be paid $45,000 and her attorneys $20,000, and she will drop her complaint and grant the district a complete release of all claims.

The resolution allows Reynolds, a respected and well-liked employee, to continue her work for the district. Although reluctant to make the payments, the board determined that it was the prudent way to protect the district resources against a larger potential judgment.

Since the events that gave rise to the complaint occurred, the board has hired Burns as superintendent, dismissed the former director of finance after a contested hearing, purchased insurance to protect the district against employment discrimination claims and hired a new director of finance and operations.

In addition, the district paid roughly $70,000 in legal fees to fire McDonnell last December. Lawyers were retained to represent the board and the superintendent.