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District fights insurer on boiler claim; water damage claim likely covered
Summary
Superintendent Doctor Scott said the district is contesting an insurer's initial denial of a boiler claim while a separate middle‑school water damage claim appears likely to be covered; possible out‑of‑pocket costs and contingency reserves were discussed.
Doctor Scott told the board the district has two active insurance claims: one for water damage at the middle school (which the administration believes should be covered) and one for failed boilers, where the insurer’s first position is denial.
"It's not over till it's over," Doctor Scott said of the boiler claim, and he promised to continue appealing the insurer’s decision. He told the board that if the insurer ultimately covers the boilers the district’s out‑of‑pocket would be on the order of the deductible discussed (stated in the meeting as $5,005), but if coverage is denied replacement units could cost roughly $35,000 each leading to a worst‑case replacement exposure the superintendent characterized as about $140,000.
Scott said the district has until October to secure replacements and that the administration may request that the board use contingency reserves to cover deductibles or shortfalls if the claim is not paid. He also noted Mammoth has offered a five‑year maintenance certificate for the recently completed track project as part of capital‑project discussions.
Board members asked about the age and repair history of the boilers; minutes show units were installed in 2016 and heat exchangers were replaced on three units in 2021 and 2022.
