SPEAKER: Debra M. Hendricks, Superintendent

In the past, Sylvan, Stan Union, and Modesto City Schools (MCS) have joined together in obtaining commercial property and liability insurance coverage from an insurance broker.  MCS has administered the program and we have been able to benefit and obtain value pricing with this partnership.  Stan Union has decided to no longer be a part of this partnership and is looking into joining a Joint Powers Authority (JPA) to obtain their coverage.  In light of this and also with an increase in premium renewals, MCS is also looking into joining a JPA and has reached out to three (3) of the largest public schools Property and Liability programs in the state, Norther California Relief (NCR), Alliance of Schools for Cooperative Insurance Programs (ASCIP), and Self-Insured Schools of California (SISC).  MCS has been quoted very substantial savings if they join NCR and is planning to make a decision at their board meeting on September 30th.

MCS staff shared these recent developments late last week and informed us that our policy renews on October 1, 2019, making this a very quick turnaround time to make a decision on how we want to proceed.  We can either stay with our current commercial coverage or join a JPA.  Staff is currently looking into potions for joining other JPAs in our area and also continuing to gather information from our current insurance broker.  If the district were to join a JPA, it would require the Board of Trustees to approve a JPA agreement and Bylaws prior to our October 1st renewal date.  

Attached are the proposal received from NCR and the current renewal pricing received from our broker that shows 2018-19 vs 2019-20.  As discussed, this pricing is contingent upon pooling with MCS and we are still awaiting pricing for Sylvan on its own.  Also attached is the presentation from NCR.

This is being brought forth as an Information and Discussion items, with the need to call a Special Board Meeting prior to September 30, 2019, to take action before the October 1, 2019, renewal date.