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Board reviews revised lease template with higher insurance and indemnification requirements
Summary
Administrators presented new lease templates that increase required general liability coverage and strengthen indemnification language; board members requested proof of updated insurance before signing leases and discussed attaching certificates to leases.
District attorneys and staff presented updated lease templates that increase the district's insurance and indemnification protections and asked the board to consider approving the leases at its next regular meeting.
Staff told the board the new templates raise the required general liability insurance amounts for lessees and include stronger indemnification clauses drafted by the district's attorney. The templates were described as updated by counsel who handles district contracts.
Board members asked for operational safeguards. One board member suggested requiring lessees' insurance certificates be attached as an exhibit to the lease because in practice such certificates are frequently omitted even when the lease references them. Another member proposed a motion be written so the board would not authorize the secretary to sign a lease until the district had obtained and reviewed the updated certificate of insurance.
Timing and condition: staff said the proposed effective date for the new coverage requirements is July 1. One board member recommended allowing lessees to sign the lease but withholding the district's signature until evidence of the higher insurance amounts is received.
Why it matters: presenters said rising liability costs and tighter market conditions motivated the changes. Board members said the change would give the district stronger protection should a lessee-related incident occur.
Ending: Staff indicated the leases would be presented for vote at the board's next regular meeting, with board members seeking language tying final district approval to receipt of the updated certificate of insurance.
