Vallejo board votes to leave ASCIP for Northern California Relief, citing stronger excess coverage

The Vallejo City Unified School District board voted 5‑0 to adopt Resolution 51‑23 to withdraw from its current liability pool and join Northern California Relief (NCR), citing broader occurrence‑based coverage, higher per‑occurrence liability limits and expanded member services.

Assistant Superintendent Ruben Fernandez introduced staff's recommendation, saying the proposed structure increases liability limits to $75 million per occurrence, places coverage on an occurrence basis (rather than claims‑made), and provides expanded services including contract review, loss prevention support and training resources. Keenan and Associates (program administrator) representative Kyle McKibben presented details on program differences, the rationale for occurrence coverage (particularly for long‑tail child abuse claims) and projected cost and savings. McKibben estimated the 2026–27 annual premium for the proposed NCR program at roughly $1.64 million with an approximate $115,000 all‑in savings compared with the current program once a one‑time tail premium is considered.

Board members asked detailed underwriting questions. Trustee Fox pressed staff and the vendor about protections for recurring local losses such as copper theft and asked that the board seek contractual assurances that the deductible would not be raised above $25,000 because previous deductible increases had required the district to pay claims from the general fund. McKibben said he had not seen deductibles raised for that reason in his career and agreed to take the board’s request back to the underwriting team for consideration. Staff said the program’s annual estimated deductible would be $25,000 per occurrence and that several neighboring districts already participate in NCR.

The board approved Resolution 51‑23 by roll call vote. Staff said the transition would provide member governance opportunities, access to additional loss‑control resources and 24/7 consultant support. Implementation steps include final underwriting and contract review prior to an effective transition date of 07/01/2026.

What the board recorded on the record - Coverage: transition from claims‑made to occurrence basis; liability increased to $75 million per occurrence (presented as key advantage). - Cost estimate for 2026–27: roughly $1,640,000 annual premium; $115,000 approximate savings vs incumbent program after one‑time tail premium was included. - Deductible: staff and Keenan stated $25,000 per occurrence on record; Trustee Fox requested the deductible‑protection clause be added in writing and staff will pursue that with the vendor.

Next steps Staff will return with final underwriting documents and any contractual language addressing Trustees’ concerns before the effective date of July 1, 2026.