The Lansing school board voted to move the district's property and casualty insurance to the KICKS (CRMIP) pool, citing large exposure under the district's current carrier, EMC, and an inventory of aging roofs and electrical problems that would drive future costs.

District staff told the board that EMC's underwriting now applies a wind/veil roof deductible equal to 5% of a building's value, which would leave the district responsible for multimillion-dollar out-of-pocket costs if a major roof event occurred. The district's facilities assessment shows most roofs (except the high school) are older than 15 years and several are about 35 years old; staff said those conditions helped push EMC to restrict payments and increase rates.

"Insurance is what it is. It's a gamble," said Marty, a district staff member who presented the analysis. "You're gambling that they're gonna have to pay you something. They gamble that you won't." Marty outlined five-year loss-ratio history for the district: property about 17%, general liability about 255%, auto about 294%, and a line item labeled "linebacker" (legal defense) at 832%. The district's umbrella coverage showed a 0% loss ratio.

Under EMC's approach, staff said a wind-event deductible on the middle school roof would be roughly $2.3 million; by contrast, the KICKS pool option carries a $150,000 member deductible. The KICKS quote the board reviewed had a higher annual premium (about $812,000) than EMC's quoted renewal (just over $600,000). Staff recommended KICKS despite the higher premium because of the lower catastrophic exposure.

KICKS is described in the presentation as the Kansas Educational Risk Management Pool (CRMIP), a cooperative pool of school districts that requires a three-year membership commitment. The pool uses a loss fund and reinsurance: staff said the pool currently holds roughly $19 million and that Lloyd's of London would provide reinsurance after the pool's retention. The board was told roughly $286,000 of the district's premium would go to the pool's loss-fund/reinsurance costs.

Board members pressed staff for contingency plans if a bond to fund roof replacements fails. Staff said the district's cheapest full-coverage option to address all roofs would be about $6 million (a 15-year warranty overlay approach), with some discussion of a $6 million to $9 million range mentioned in the facilities analysis posted on the district website. Staff described an "escrow" option (an energy-savings contract allowed in Kansas) as a possible financing plan that could spread repayment over about 10 years but would draw on capital outlay or general fund dollars.

Marty explained the district could seek a short-term state advance (a "no fund warrant") only in emergencies and that such advances would require approval by the Kansas Department of Education and the state treasurer and typically would be repaid from future state revenue in that fiscal year. He warned the board that an inability to pay obligations could force state-directed actions including assessing mills to repay the advance.

The board voted to approve membership in KICKS. The motion was made and seconded on the record; the roll call vote recorded six yes votes and one no. Board member Missus Workman cast the lone no vote and asked the clerk to record her reason as: "I don't see a specific plan for what we're gonna cut in order to fund it." Staff said the district will identify line-item reductions across operating budgets to cover the premium increase; staff estimated the immediate budget gap to be about $341,423.

The presentation noted the district's five-year loss history will continue to affect premiums for several years and that membership in KICKS does not guarantee premiums cannot rise if the pool or member experience worsens. Staff also said EMC has indicated it could drop districts that do not show a credible plan to replace older roofs after the upcoming bond cycle.

Board materials and the district's facilities assessment (posted on the district website) were cited as sources for the roofing priorities and estimated costs; staff said they will resend the roofing assessment and cost estimates to the board.

Votes at a glance

- Motion: Approve KICKS (CRMIP) as the district's property and casualty insurer.
- Outcome: Approved.
- Vote (recorded): Yes — Mister Bollin; Miss Wood; Mister Ilkham; Mister M; Mister Boingart; Missus Cobby. No — Missus Workman. (Mover and seconder not specified on the record.)

What happens next

Board members asked staff to prepare options to present to the public if the board places a bond before voters or if a bond fails, including lease-purchase/escrow scenarios, estimated interest costs, and a clearer explanation of which maintenance projects would be deferred under different financing choices. Staff said they will continue finalizing line-item budgets and will email the roofing assessment and cost breakdown to the board members.

(Reporting note: quotations and attributions are taken from the meeting transcript.)