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Board accepts voluntary bus contract terminations, declines to pursue $6,043.84 insurance stipend from estate
Summary
Following the death of a contractor, the board accepted voluntary termination of two bus contracts (routes 220 and 130) and voted not to pursue the prorated insurance stipend of $6,043.84 from the estate in this unique case.
The Rutherford County Board of Education accepted voluntary terminations for two transportation contracts (routes 220 and 130) Dec. 11 and chose not to pursue a prorated insurance stipend of $6,043.84 from the contractor’s estate.
Transportation staff reported receipt of written notice of voluntary termination from the contractor’s daughter. Legal counsel explained the board has the contractual right to recover a prorated insurance stipend under ordinary circumstances, but noted discretion exists and that amending contracts to add carve‑outs would be administratively complex.
Board member Vaught moved to accept the terminations and not pursue collection of the $6,043.84 stipend in this specific case; the motion was seconded and passed. "I don't feel good about putting that burden back on the Stem family," Vaught said, referring to the contractor’s family, and other members agreed the circumstance was unique.
Why it matters: The action resolved an immediate contract and payroll accounting matter and reflected a board determination to exercise discretion in a case involving death of a long‑serving contractor.
Next steps: Legal counsel will notify the county finance director and document the board's direction. Staff will close out route‑level accounting and reassign or fill route needs per existing procedures.
