DOE Not Satisfied With Insurance Offer

Jefferson County Department of Education presented School Board Members with a suggested offer from Travelers Insurance regarding a settlement for the roof collapse in Building 8 of Jefferson County High School. Following several months of negotiations, Travelers, who assumes risk above $100,000 for Tennessee Risk Management, offered a final, all inclusive cost of $781,244.66. Tennessee Risk Management has met their obligation to the Jefferson County School System in the form of a $99,500 payment, which covers their obligation minus a $500 deductible. The Negotiation for the balance of the full settlement is now between Travelers and Jefferson County Schools. Director of Jefferson County Schools, Dr. Charles Edmonds, presented the Board with a letter outlining the offer.

In response to previous negotiations, Travelers contracted with Belfor Property Restoration of Bristol, Tennessee to submit their estimate of the project. Edmonds informed the Board that there are continuing concerns regarding safety standards that may be required in the repair process, which could create additional costs, and that plans used in the estimation were from the original build date in the early 1970s. Increased stringency in the building code since the original building of the school will require that the new addition be brought up to code for Fire Marshal approval. Additionally, the remainder of the building attached to the collapse will also be required to meet engineering and architectural current standards. The Director recommended that the Board make no move to accept the offer until contractors, architects and engineers can assess the offer and compile final numbers of their own. The School Board took no action on the offer, other than to give consent to the Executive Committee to seek specialized contract law legal representation to aid in the final negotiation process.

According to information provided to the School Board, the completion of the repairs is estimated to take several months and it is likely that, should the negotiations be completed in an expedient manner, use of that portion of the building is still a year out.