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$60,000 cancellation fee for USD 489 unlikely after negotiations

USD 489By KARI BLURTON
Hays Post

It looks as if Hays USD 489 will not have to pay the nearly $60,000 cancellation fee insurance carrier United Heartland wanted to impose after claiming the district canceled a workers’ compensation contract.

At Monday’s school board meeting, board attorney Bill Jeter stepped away from his seat citing a conflict of interest and Hays attorney Don Hoffman stepped in to offer legal advice.

“Contracts must be approved by the board,” Hoffman said. “The board can delegate the signing of a contract of up to $20,000, but this clearly exceeds that.”

Hoffman said even if Superintendent Dean Katt had authorized the contract — “which he did not” — the move would still need to be approved by the board.

USD 489 moved to stay with the Kansas Association of School Board’s workers’ compensation plan, and Insurance Planning will represent the board in other insurance areas.

Hoffman joked his contract as legal adviser to USD 489 might be the “shortest I’ve ever had” as representatives from Insurance Planning had already been negotiating with United Heartland to cancel the fine, and KASB already has agreed to backdate coverage to July 1.

 

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