Nevada County Picayune and Gurdon Times Newspaper Archive

Prescott School Officals Meet With USF&G Concerning Claims

By RICKY RAGSDALE

Patrons of the Prescott School District should know this week whether the district has reached a settlement with USF&G following the April 1996 fire which destroyed a portion of the high school.

Board President Jim Franks and Superintendent Don Johnston was to have met with USF&G officials at the district's attorney's office in Arkadelphia on Tuesday, January 28.

This information was discussed during the regular board meeting on Tuesday, January 21.

The board has not heard from the insurance officials to see whether any more claims are going to be paid since the school last received a check in August.

USF&G has paid some claims, but has not issued any additional monies since classes began for the current school year or since approving rebuilding plans.

School officials have said USF&G has stated they have never approved any claims in the fire.

This is despite some monies having been received and some documents have been returned as approved, say local officials.

The board is assuming the insurance company is balking at paying any more claims until it determines the district had enough insurance to cover at least 90% of school property.

The district purchased the insurance for total replacement costs and has not had any problems with local insurance officials.

Maximum loans for a total of $500,000 have been utilized by the board from a revolving loan fund from the Arkansas Department of Education.

One loan is for about $108,000 to finish the addition at the Prescott Elementary School.

A second loan for $392,000 was just completed to pay for construction costs as a result of the high school fire.

The district may have to borrow other funds, if legal, to complete the rebuilding if USF&G does not pay what the district is owed.

The only other option would be a millage increase for the funds.

In other action, the school board extended Johnston's contract for one year. It now ends in 2000.

Board members discussed legislative action going on in Little Rock. Several bills will benefit Prescott if passed.

Prescott Elementary and Middle Schools have been accredited, according to officials and it is anticipated the high school will be in compliance by year's end or before school begins in August.

Property thought to be sold in December was resold at last week's meeting after the high bidder withdrew his bid.

The district awarded the property to Vince Harris for $1,501. He was the backup bidder at the time.

Amanda McKamie will be a student at Prescott next year after the board approved a legal transfer from the Nevada School District.

February's board meeting has been changed and moved forward one day to Monday, February 17. The Prescott City Council also meets that night.