R-P School board selects new carrier for property/liability insurance in special meeting

By : 
Scott Bestul
Tri-County Record

The Rushford-Peterson school board met in special session Thursday, June 28. The agenda included two items: a clarification to the 2018-19 budget proposed at the regular meeting June 18, and the approval of a property/liability insurance proposal from Vaaler Insurance. Board member Jon Pettit was absent. 

The board reviewed and accepted a change to the 2018-19 budget that included $7,992,334.00 expenditures from the general fund. The original proposed budget listed expenditures of $7,936,142.00. 

The board then turned its attention to the primary purpose of the meeting; approving a property/liability insurance plan for the 2018-2021 coverage period. The district’s current plan was set to expire June 30. 

Supt. Ehler reported that the insurance committee (consisting of Director Mierau, Chairman Linder, and Ehler) had met Monday June 25 to examine quotes submitted from Vaaler Insurance, C.O. Brown, and Butch Johnson Insurance for the R-P District’s property and liability insurance.  The quote amounts were:

• Vaaler Insurance: $45,004.94.

• C.O. Brown: $47,363.00

• Butch Johnson: $46,971.31

The district also received quotes for workman’s compensation insurance from C.O. Brown ($31,315.00) and Butch Johnson ($38,589.00). 

Ehler informed the board that the insurance committee “did everything we should have to be in compliance...and we’re bringing the best price while still being sensitive to community needs. The committee felt it was in the [district’s] best interest to adopt the quote from Vaaler Insurance.” Director Iverson moved to accept the Vaaler quote for property/liability, as well as the quote from C.O. Brown for workman’s compensation. Director Prinsen seconded. 

In the brief discussion that followed, Director Mierau (participating via Skype) cautioned that the board might be violating a state statute by considering a quote from a company other than Butch Johnson Insurance, the R-P district’s “agent of record.” Supt. Ehler responded that he had contacted the Minnesota State School Boards Association regarding the matter. “They assured me were OK to proceed with this,” he said. 

No further discussion followed, and the motion passed with directors Howe, Iverson, Linder, and Prinsen voting yes. Director Mierau abstained. 


The next regular meeting of the Rushford-Peterson School Board will be July 16 at 5:30 p.m. in the R-P School Forum Room.