Board approves emergency declaration for Rapid City Alternative Academy roof replacement; district opts not to file an insurance claim

The Rapid City Area School District approved an emergency declaration to replace the roof at Rapid City Alternative Academy, and district staff told the board they would proceed without filing an insurance claim.

Board members voted to approve the emergency declaration after discussion of procurement authority and insurance implications. "South Dakota codified law allows for situations that are deemed emergencies for the board to bypass the official procurement process for school districts," district staff advised.

District facilities staff presented an estimate for the roof work of about $163,000. Under the district’s current property policy, wind- and hail-related claims carry a minimum deductible of $100,000 per occurrence; the district estimated it would recover roughly $63,000 from a claim — leaving a small net recovery relative to potential future premium increases. For that reason leadership recommended handling the repair without an insurance claim to avoid upward pressure on future premiums.

Facilities and finance staff described changes in the insurance market over recent years, including higher deductibles and less competition among carriers. Staff also said they are exploring longer-term alternatives such as a self-insurance approach (building a reserve pool to cover property claims), a change that would require several years of planning and funding.

Board members discussed that capital projects and emergency repairs can affect other planned facility work and noted the district’s responsibility to keep buildings safe. Board member comments referenced the wider statewide context in which some districts face rising insurance costs or difficulty obtaining coverage.

The motion to approve the emergency declaration for the RCAA roof replacement passed by voice vote. "Aye. Motion carries," the record shows.