DCG board approves equipment‑breakdown insurance to shift maintenance costs into a management fund

The Dallas Center‑Grimes Community School District board voted to purchase a three‑year equipment‑breakdown insurance policy from REMI that administrators said will shift repair costs out of the general fund and into a management fund that covers the premium.

Michelle (district administrator) and Sean (operations) described two parts of the proposed product: a “wall‑to‑wall” equipment package that would cover items such as copiers, kitchen equipment, motorized grounds equipment and computers, and an HVAC/environmental‑controls component tied to preventative maintenance performed by Baker Group. Under the plan, in‑house repairs would be reimbursed at a flat $70 per hour; if a piece of equipment was uneconomical to repair, the policy contains a buy‑out provision using actual cash value.

“This process allows us to save money in the general fund by getting reimbursement for those spending,” Michelle said, describing the online REMI portal that REMI uses to track claims in real time. Sean highlighted the scale of the district’s HVAC inventory as part of why the HVAC option might deliver larger benefits: “We have 23 water heaters, 11 boilers, 347 heat pumps, rooftop units 21, ERVs 28… everything is in here,” he said, and noted Baker Group would be the authorized contractor for scheduled preventative visits.

Administrators gave summary premium figures on the slides shown to the board: roughly $400,000 for the wall‑to‑wall coverage and about $1.7 million for the HVAC/preventative maintenance component; claims caps and program terms were also discussed. The policy includes a loss‑ratio provision: if claims are less than 80% of premium, there's no premium increase the next year; higher loss ratios trigger graduated increases. The policy excludes software and licensing and caps certain repair reimbursements (the transcript cites a $450,000 cap for corrective maintenance repairs in a given category).

Board members asked for details about how reimbursements flow when the district’s operations staff make in‑house repairs; Michelle and Sean said reimbursements for staff time would be returned to the general fund while vendor payments would be handled directly between REMI and the vendor. The district also proposed not filling an HVAC general‑fund position if the program is adopted, producing some immediate personnel savings.

Trustee Lundberg moved to approve adoption of REMI’s equipment‑breakdown program; Director McNays seconded. The board voted in favor; the transcript records unanimous voice approval. Administration will implement the REMI portal, set internal accounting and asset codes to track claims, and coordinate with Baker Group for the preventative schedule.

Provenance: Presentation begins at about 00:26:03 and the board’s approval motion occurs later in the agenda at about 01:37:49.